Donald Trump loved to use tariffs on foreign goods during his first presidency. But their impact was barely noticeable in the overall economy, even if their aftershocks were clear in specific industries.

The two spoke after Trump on Monday threatened to impose a 25% tax on all products entering the country from Canada and Mexico as

The tariffs would be a significant escalation of Trump’s previous proposal, which was already a major increase on more targeted tariffs enacted by Trump during his first administration, and kept in place by President Joe Biden.

If they are imposed, the tariffs will hurt American consumers most of all. The North American supply chain is integrated; nearly $1trn-worth of goods crossed the northern and southern borders of the United States last year.

The chief executive of the company behind Ikea furniture stores says Donald Trump’s planned tariffs will make it more difficult to keep its prices low, joining a growing chorus of business leaders in warning of a potential hit to people’s wallets from the levies.