Retail therapy

President Trump said he will impose a 25% tariff on Mexico and Canada on Feb. 1, per CNN, potentially increasing costs for consumer-facing U.S. companies and raise prices.

• More of the focus has been on China, but any tariff hike could potentially complicate M&A and tip already distressed companies into bankruptcy.
• If Trump proceeds with the tariffs, it will mark a huge shift in North American trade policy with two of the U.S.'s three largest trading partners.

The caveat: The good news for retail and CPG is that Trump held off on imposing broad tariffs on Day 1, Axios' Ben Berkowitz writes.