The Trump administration is scheduled to slapped tariffs on products from Mexico, Canada and China, which constitute the three largest commercial partners in the United States. The measure could affect everything from gasoline to avocados and iPhones.
President Donald Trump established on March 4 as the start date for 25% tariffs in imports of Mexico and Canada, as well as an additional 10% rate on Chinese products.
Speaking at the White House on Monday afternoon, Trump confirmed that the tariffs would take effect the next day.
The announcement sent the main clad shares. The s& P suffered its greatest loss since December, closing at 5,849.72 – 104.78 points or 1.76%. The Dow Jones industrial average closed to 43,191.24 less than 649.67 points or 1.48%, while the technological heavy nasdaq fell 2.64%.
The deadline comes approximately one month after Trump granted Mexico and Canada a postponement of such tariffs, after having reached agreements with the two countries with respect to border security and drug trafficking.
This is what you should know about the rates that will take effect on Tuesday.
Tariffs could change the United States trade, unless they don’t happen
In recent days, Trump reaffirmed his commitment to place tariffs in Canada and Mexico.
In multiple statements, Trump said he intends to move forward with politics. On Thursday, Trump claimed that drugs had continued to enter the US through Mexico and Canada despite the agreements reached last month to address the problem.
“We cannot allow this scourge to continue damaging the United States and, therefore, until it stops, that is, seriously limited, the proposed tariff mail About social truth.
Trump expressed similar concerns about Mexico and Canada before the deadline of previous rates before stopping the measures.
The Secretary of Commerce, Howard Lutnick, praised Mexico and Canada on Monday for their recent efforts to address border security, suggesting that the level of tariffs remained uncertain.
“[Trump] You will decide today, we are going to publish it tomorrow, ”said Lutnick CNNdescribing the formulation of policies as a “fluid situation.”
On Monday afternoon, Trump confirmed that the new Round of Rates would take effect the next day.
“That will begin,” Trump said. “They will have to have rates.”
New tariffs could increase the prices of some essential elements
Tariffs on Mexico, Canada and China could increase the prices of a wide range of goods, experts previously said to ABC News.
Tariffs of this magnitude would probably increase prices paid by American buyers, since importers generally transmit a part of the cost of those higher taxes to consumers, experts said. Politics could increase the prices of products from tomatoes to tequila and auto parts.
President Donald Trump listens to while he meets with the president of Ukraine, Volodymyr Zelenskyy, at the Oval Office of the White House in Washington, DC, on February 28, 2025.
Saul Loeb/AFP through Getty Images
The highest costs for car production could raise a challenge for American car manufacturers, many of which depend on a closely intertwined supply chain with Mexico and Canada.
“It is likely that the automobile sector, in particular, see considerable negative consequences, not only for the interruption of supply chains that cross the three countries in the manufacturing process, but also by the expected increase in the price of vehicles, which can cushion the demand,” said Gustavo Flores-Macias, professor of government and public policies at the University of Cornell of the ABC University in a statement.
Mexico and Canada represent 70% of the imports of the US crude oil. Energy Information Administration of the United StatesA government agency.
Trump said previously that Canadian energy resources, such as oil and gas, would be subject to tariffs of 10%, excluding the products of the 25% rates that all the other imports of the country face.
The United States imported $ 38.5 billion in agricultural goods in Mexico in 2023, which makes it the main receiver of these products, Data from the United States Agriculture Department presented. These imports include more than $ 3 billion in fresh fruits and vegetables.
Approximately 90% of the avocados that are eaten in the United States last year originated in Mexico, showed USDA data. Other products with a high concentration of Mexican imports include tomatoes, cucumbers, peppers, jalapeños, files and mangoes.
Directed countries can take reprisals
Fresh tariffs can trigger reprisals from Mexico, Canada and China.
In advance of tariffs last month, Canadian Prime Minister Justin Trudeau threatened with retaliation tariffs in products worth $ 155 billion and urged Canadians to choose products made by Canada on their US counterparts.
The Mexican president, Claudia Sheinbaum, said she had ordered her government officials to implement Plan B, “which includes tariff and non -tariff measures in defense of Mexico’s interests.”
Speaking to journalists on Monday, Sheinbaum said the recent conversations between the United States had gone “very well”, but that Mexico retains the options if necessary.
“We are going to wait and see what happens,” said Sheinbaum. “In that, you need to have Mettle, Serenity and Patience, and we have Plan A, Plan B, Plan C, Plan D, for what we are going to wait for today.”
Anne Flaherty of ABC News contributed to this report.
