US President Donald Trump has followed through on his threat to impose sweeping tariffs on Canada, Mexico, and China, marking one of the most significant trade escalations in modern US history.
The new measures include a 25% tariff on most imports from Canada and Mexico, as well as a doubling of tariffs on Chinese goods from 10% to 20%.
Trump justifies tariffs
Trump has defended the tariffs as necessary for national security and economic growth. “These tariffs will bring back American jobs, protect our industries, and force our trading partners to treat us fairly,” he said in a press conference.
He accused Canada and Mexico of failing to curb illegal immigration and drug trafficking, particularly fentanyl. “We can’t allow these countries to take advantage of us while doing nothing to stop the flow of illegal migrants and deadly drugs into the U.S.,” Trump wrote on Truth Social.
Canada, Mexico, and China retaliate
In response, Canada, Mexico, and China have all announced retaliatory measures.
Canada’s response
Trudeau said Canada will impose its own tariffs on more than $100 billion of US goods over the next 21 days. “The United States launched a trade war today,” said Canadian Prime Minister Justin Trudeau, criticising the move as “unjustified.”
“Canada will not let this unjustified decision go unanswered,” he declared. The initial round of Canadian tariffs will apply 25% duties on C$30 billion ($20.6 billion) worth of US exports, with a second round set to target an additional C$125 billion.
Trudeau also criticised Trump’s claim that Canada was failing to stop fentanyl and immigration issues. “At the same time they are talking about working positively with Russia, they are punishing their closest ally. Make that make sense,” he said.
Mexico and China’s response
Mexican President Claudia Sheinbaum announced retaliatory tariffs in response to US measures, with details to be revealed on Sunday, while emphasizing openness to negotiations. Meanwhile, China imposed up to 15% tariffs on US goods like chicken, cotton, and soybeans, and expanded export controls on American companies, intensifying trade tensions.
Trump tariff news LIVE updates: Fed’s John Williams says Trump’s tariffs will push inflation higher
“Based on what we know today, given all the uncertainties around that, I do factor in some effects of tariffs now on inflation, on prices, because I think we will see some of those effects later this year,” Williams said Tuesday during the Bloomberg Invest conference in New York.
You also “have to factor in how does that affect economic activity — decisions by businesses to invest, consumers to spend?” Williams said. “And that’s where I think another big uncertainty is.”
Trump tariff news LIVE updates: Nasdaq nears correction as markets react to new US tariffs
Wall Street declines as trade tensions escalate following Trump’s new tariffs on Canada, Mexico, and China.
The tech-heavy Nasdaq was on track to enter correction territory due to market volatility.
Financial and industrial stocks were the biggest losers among the S&P 500’s 11 main sectors.
Citigroup (-5.4%) and JPMorgan Chase (-3.1%) dragged the banking sector down 3.6%.
As of 2:07 p.m. ET:
Dow Jones fell 304.66 points (-0.70%) to 42,886.58.
S&P 500 dropped 19.02 points (-0.33%) to 5,830.70.
Nasdaq Composite rose 87.51 points (+0.48%) to 18,437.70.
Trump tariff news LIVE updates: Gold prices climb as trade war escalates
Gold prices surged on Tuesday due to a rising safe-haven demand amid trade tensions.
The increase follows US President Donald Trump’s new tariffs, which escalated global trade conflicts.
Spot gold rose 0.6% to $2,911.88 per ounce as of 02:16 a.m. ET.
Trump tariff news LIVE updates: China claims no Fentanyl smuggling since crackdown
In a white paper released Tuesday, China’s National Narcotics Control Commission highlighted measures taken to combat the trafficking of fentanyl-related substances, according to state media reports.
“Since implementing full control of fentanyl-related substances, China has not detected any further cases of smuggling or selling fentanyl-related substances abroad,” Xinhua reported, attributing the matter to a senior commission official. (AFP)
Trump tariff news LIVE updates: China files complaint with WTO against US over Trump’s tariffs
Beijing announced on Tuesday that it has lodged a complaint with the World Trade Organization against the United States over President Donald Trump’s tariff hikes on Chinese goods.
“The United States’ unilateral tax measures seriously violate WTO rules and undermine the foundation of China-US economic and trade cooperation,” Beijing’s commerce ministry said in a statement, adding that it was “strongly dissatisfied and firmly opposed” to the tariffs.
Trump tariff news LIVE updates: Trade war fears grip Canadian border city Windsor
The Canadian city of Windsor, heavily reliant on the cross-border auto industry, is facing uncertainty and fear as US President Donald Trump imposed a 25% tariff on Canadian goods, triggering a trade war.
Windsor, located just across the river from Detroit, Michigan, has long depended on American automakers for employment and economic stability.
“The value of what we have around us is based on the automotive industry. So if it were to collapse, that will collapse with it,” said Robert Pikata, a Windsor municipal worker.
For Windsor residents, the trade war has sparked concerns about job security and economic stability.
“I’m disappointed and scared at the same time because of the unknown,” Pikata admitted. “How is it going to affect me personally and how is it going to affect my family?” (AFP)
Trump tariff news LIVE updates: Donald Trump mocks Canadian PM as ‘Governor Trudeau’
US President Donald Trump took a swipe at Canadian Prime Minister Justin Trudeau, calling him “Governor Trudeau” after Canada imposed a 25% tariff on $30 billion worth of US goods in retaliation for Washington’s trade measures.
“Please explain to Governor Trudeau, of Canada, that when he puts on a retaliatory tariff on the U.S., our reciprocal tariff will immediately increase by a like amount!” Trump wrote on his Truth Social platform.
Trump tariff news LIVE updates: Ford & GM stocks drop
Ford shares fell 1.9%, while GM dropped 1.6% on Tuesday.
Auto sector hit hard due to reliance on integrated North American supply chains.
S&P Global estimates tariffs could cost U.S. automakers 10%-25% of annual EBITDA.
Trump tariff news LIVE updates: Airlines, Banks lead Wall Street decline as tariffs shake markets
Airlines and banks, experienced notable declines on Wall Street’s main indexes on Tuesday.
New tariffs on Canada and Mexico are expected to negatively impact US companies’ earnings in key sectors like automobiles, aerospace, retail, and housing.
Trump tariff news LIVE updates: Ontario Premier threatens to cut off electricity exports to US
“If they want to try to annihilate Ontario, I will do everything — including cut off their energy with a smile on my face,” Ontario Premier Doug Ford said.
“They rely on our energy, they need to feel the pain. They want to come at us hard, we’re going to come back twice as hard.”
Trump tariff news LIVE updates: Trudeau warns of Trump’s intentions
Canadian Prime Minister Justin Trudeau claimed that US President Donald Trump’s goal is to ruin Canada’s economy to make annexation easier.
“He said a number of times that his goal is to ruin the Canadian economy, so that he can move on to annex the country. That’s what he wants,” Trudeau stated.
Trump tariff news LIVE updates: Trudeau slams Trump, says, “US appeasing Putin”
Canadian Prime Minister Justin Trudeau slammed Trump’s decision to impose tariffs on Canada.
He called the move “very dumb”.
Trudeau criticized the US for targeting Canada while engaging with Russia.
“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Does that make sense,” Trudeau said.
“I want to speak directly to one specific American, Donald,” Trudeau said. “It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.”
Trump tariff news LIVE updates: US President Donald Trump’s tariffs on Canada, Mexio and China take effect
US President Donald Trump imposed 25% tariffs on imports from Mexico and Canada starting Tuesday (March 4).
Canadian energy imports were taxed at a lower rate of 10%.
Chinese tariffs were doubled from 10% to 20%, escalating tensions with Beijing.
Source:https://www.livemint.com/news/us-news/trump-tariff-news-live-updates-us-tariffs-on-canada-mexico-take-effect-amid-growing-tensions-11741114430882.html