If tariffs evolve from a negotiating tactic to a new normal, economic and diplomatic costs to all of North America will grow.

U.S. Treasury Secretary Scott Bessent says he is not worried about inflation stemming from a trade war with Canada and Mexico. Speaking at the Economic Club of New York on Thursday, Bessent appeared to double down on Trump’s warning that the enactment of new tariffs may cause disruptions.

President Donald Trump suspended on Thursday the 25% tariffs he imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed financial markets and fanned worries over inflation and a growth slowdown.