Trump's 25% Tariffs on Canada and Mexico Set to Begin Tuesday

The tariffs aim to address drug trafficking, trade imbalances, and manufacturing relocation but have sparked inflation fears and market declines.

President Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect on Tuesday, with additional tariffs on Chinese imports increasing to 20%.
The tariffs are intended to pressure Canada and Mexico to combat fentanyl trafficking, illegal immigration, and trade imbalances, while encouraging U.S. manufacturing.
Economic analysts warn the tariffs could raise consumer prices significantly, with costs for some vehicles projected to increase by up to $12,200 due to supply chain disruptions.
Stock markets reacted negatively to the announcement, with the Dow Jones Industrial Average dropping over 700 points and the S&P 500 declining by 2%.
Canada and Mexico have prepared retaliatory measures, with Canada readying $155 billion in tariffs and Mexico mobilizing National Guard troops to address U.S. concerns.