Tue, 04 Mar 2025

Tue, 04 Mar 2025 Markets sink as Trump confirms tariffs on Canada, Mexico and China

The US president has repeatedly threatened to tax imports from two of the country's closest neighbours.

* US President Donald Trump announced that 25% tariffs on goods imported from Canada and Mexico will go into effect on Tuesday, claiming "no room left" for negotiations.
* The move sparked a significant decline in US stock markets, with the Dow Jones Industrial Average falling 1.4%, S&P 500 down 1.75%, and Nasdaq dropping 2.6%.
* Canadian Prime Minister Justin Trudeau vowed that Canada will not let this decision go unanswered, with Foreign Minister Melanie Joly announcing retaliatory tariffs on $107 billion worth of US imports.
* China's commerce ministry also pledged to retaliate against the new US tariffs, accusing the Trump administration of trying to bully Beijing and shift blame for fentanyl flows.
* Mexico has announced plans to retaliate against the US tariffs, raising concerns about a widening trade war.
* The US had previously agreed to delay imposing tariffs on Canada and Mexico until last month, but Trump's decision to go ahead with the 25% tariffs marks a significant escalation in the trade tensions.
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