Mar 3, 2025 - Business

Markets slide as Trump confirms tariffs for Canada, Mexico and China on Tuesday

Ben Berkowitz

President Trump at a Cabinet meeting. — President Trump at a February 2025 Cabinet meeting at the White House. Photo: Jim Watson/AFP via Getty Image

Long-threatened tariffs on Canada and Mexico will go into effect Tuesday, as will increased levies on China, President Trump confirmed.

Why it matters: The tariffs are expected to trigger a trade war with the three largest U.S. trading partners, one that could raise prices for American consumers on a broad range of products.

Catch up quick: Canada and Mexico will each face 25% tariffs on their exports to the U.S., while Chinese exports will receive an additional 10% tariff on top of the 10% Trump already imposed earlier this year.

The Canada and Mexico tariffs were imposed in early February but postponed for a month, pending negotiations. Trump said Monday that time was up.
"No room left for Mexico or for Canada," Trump said in remarks at the White House.

By the numbers: Financial markets, which were already weaker on gloomy economic news tied to tariff fears, took a leg down after Trump confirmed the levies were coming.

The S&P 500 was 2% lower in the last hour of trading, and at the lows of the day.
The U.S. dollar surged, particularly against the Canadian dollar and Mexican peso.

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Markets slide as Trump confirms tariffs for Canada, Mexico and China on Tuesday

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