Today the US imposes 25% tax on Canada and Mexico, the market is confused

(CLO) US President Donald Trump announced on Monday that a 25% tariff on goods from Mexico and Canada will take effect today (March 4), raising concerns about a trade war in North America.

Trump's comments sent U.S. stocks sharply lower in late afternoon trading. The Mexican peso and Canadian dollar both fell after his remarks.

"They're going to have to pay the tariffs. So frankly, what they have to do is build their auto plants and other things in the United States, in which case they won't have to pay any tariffs," Trump said at the White House.

The tariffs are scheduled to take effect at 12:01 a.m. EST Tuesday, the U.S. government has confirmed. At that time, Canada and Mexico will face a 25% tariff, with a 10% tariff on Canadian energy.

Today the US imposed a 25% tariff on Canada and Mexico, the market was in turmoil, picture 1 — US President Donald Trump. Photo: WH

Trump also said “reciprocal” tariffs would take effect on April 2 against countries that impose tariffs on US products. He also reiterated that he would increase tariffs on all Chinese imports to 20% from the previous 10%. He said China “has not taken adequate steps to alleviate the illegal drug crisis.”

According to the US Centers for Disease Control and Prevention, 72,776 people will die from synthetic opioids in 2023 in the United States, mostly from fentanyl.

CEOs and economists say Mr Trump's tariffs on Canada and Mexico, which cover more than $900 billion worth of annual US imports, would pose a serious setback to the highly integrated North American economy.

Canadian Foreign Minister Melanie Joly told reporters that Ottawa was ready to respond. "There is a level of uncertainty and chaos coming out of the Oval Office, and we will deal with that," she said.

Mexican President Claudia Sheinbaum, at a news conference on Monday, said her government was calmly awaiting Mr Trump's decision, but that Mexico would respond if tariffs were imposed.

The Dow Jones Industrial Average fell 649.67 points, or 1.48%, the S&P 500 lost 104.78 points, or 1.76%, and the Nasdaq Composite dropped 497.09 points, or 2.64%.

Shares of automakers fell sharply, with General Motors, which has significant truck production in Mexico, down 4% and Ford down 1.7%.

Hoang Huy (according to WH, Yahoo, Reuters)

Source: https://www.congluan.vn/hom-nay-my-ap-thue-25-voi-canada-va-mexico-thi-truong-hoang-mang-post336957.html