US President Donald Trump announced that tariffs on goods from Mexico and Canada will take effect from Tuesday, sparking a global trade war that is pushing North America closer to the brink. The move affects more than $900 billion worth of annual US imports, with Canadian energy facing a 10% duty.
The tariffs are set to kick in at 0501 GMT on Tuesday, when the US Customs and Border Protection agency will begin collecting 25% on Canadian and Mexican goods. China’s imports face an additional 20% tariff due to increased fentanyl shipments.
Canada has vowed to retaliate with 25% tariffs on C$155 billion ($107 billion) worth of US goods, while Mexico is expected to respond in kind. Ontario Premier Doug Ford warned that the tariffs would be “an absolute disaster” for both countries.
Market analysts predict a sharp decline in global stocks, with the Dow Jones Industrial Average falling 649.67 points or 1.48%, and other major indices also plummeting. The move is seen as a setback to the highly integrated North American economy and may lead to higher prices for consumers.
As the situation unfolds, traders are bracing themselves for potential price hikes at the grocery store, gas station, and pharmacy counter. The decision has sparked concerns about inflation and the impact on global trade.
Source: https://www.reuters.com/business/autos-transportation/trump-decide-us-tariff-levels-mexico-canada-tuesday-deadline-approaches-2025-03-03