The Trump administration will exempt U.S. automakers from new tariffs on Canadian and Mexican imports for one month, the White House said Wednesday—as the 25% levies imposed Tuesday could potentially lead to price hikes on a range of imported goods, from food and alcohol to lumber.

Robert Fry, an economist based in Delaware, said the United States could go into a recession if President Trump's tariffs on Mexico and Canada continue.

Major US tariffs against Canada and Mexico are now in effect, igniting fears of a recession and broader trade war, though some have already been rolled back temporarily.