Markets sink as Trump confirms tariffs on Canada, Mexico and China
President Donald Trump has said he is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, adding that time had run out to reach a deal.
President Donald Trump has said he is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, adding that time had run out to reach a deal.US stock markets sank in response to the measures, which he has threatened since earlier this year and said would now go into effect on Tuesday.An additional 10% tariff on Chinese imports also is expected to come into force, leaving all three of America's top three trade partners facing significantly higher barriers than just a few weeks ago.
"No room left for Mexico or for Canada," Trump said at the White House on Monday. "The tariffs, you know, they're all set. They go into effect tomorrow."The three major indices in the US sank after Trump's comments. The Dow Jones Industrial Average ended the day down 1.4%, the S&P 500 sank 1.75% and the Nasdaq fell 2.6%.Prime Minister Justin Trudeau responded: "Canada will not let this unjustified decision go unanswered."Canadian Foreign Minister Melanie Joly told reporters that Ottawa planned to impose retaliatory tariffs against US imports of C$155bn ($107bn; £ 84bn), with the first tranche of $30bn ready immediately to be levied on everyday goods like pasta, clothing and perfume.
The foreign minister added that the tariffs were "an existential threat to us", with "thousands of jobs in Canada at stake".Trump threatened to impose the tariffs, which are a tax added to a product when it enters a country - on Canada, Mexico and China in response to what he said was the unacceptable flow of illegal drugs and illegal immigrants into the US.
