China is benefiting as the U.S. hits Canada and Mexico with tariffs, sparking retaliatory measures, according to one Brookings expert.

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.

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.