President Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies.
Also, Trump will stand before a joint session of Congress on Tuesday to give an accounting of his turbulent first weeks in office as a divided nation struggles to keep pace, with some Americans fearing for the country’s future while others are cheering him on.
Here's the latest:
Wall Street’s losing streak deepens as Trump’s tariffs kick in
Stocks are falling again on Wall Street as companies and investors react to President Trump’s decision to impose tariffs on the U.S.’s biggest trading partners.
The S&P 500 dropped 0.7% Tuesday morning, the Nasdaq fell 0.6% and the Dow slid 423 points, or 1%.
The burgeoning trade war between the U.S., China, Canada and Mexico is helping to extend a recent slump for U.S. stocks that was prompted by signs of weakness in the economy. Shares of Target and Best Buy fell after the retailers warned of higher prices for consumers due to tariffs.
Markets in Europe fell sharply while stocks in Asia saw more modest declines.
▶ Read more about the tariffs’ effects on financial markets
Teacher held by Russia, family of man killed in assassination attempt among first lady’s speech guests
Also sitting with Melania Trump will be Stephanie Diller. She’s the widow of New York police officer Jonathan Diller, who was killed in the line of duty during a Queens traffic stop in March 2024. Donald Trump attended Diller’s wake.
Marc Fogel is the American history teacher who returned home last month after years of wrongful detention in Russia. His 95-year-old mother, Malphine, will join him.
The family of Corey Comperatore, the former fire chief who was killed during the assassination attempt on Donald Trump at a Pennsylvania campaign rally, are also guests.
In response to US tariffs, Mexico will impose retaliatory tariffs on US goods
Mexico President Claudia Sheinbaum said Tuesday she’ll announce the products Mexico will target Sunday in a public event in Mexico City’s central plaza, perhaps indicating Mexico still hopes to de-escalate the trade war set off by President Trump.
“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum said.
▶ Read more about Mexico’s retaliatory tariffs
Prices rise as trade disruption looms along US-Mexican border
President Trump has said “it’s a myth” that U.S. consumers will be paying for the tariffs through higher prices. But businesses dealing with cross-border trade with Mexico swiftly raised prices Tuesday.
One Arizona business that distributes 5 million boxes of Mexican produce a year says that if U.S. consumers won’t pay, the tomatoes and other perishable vegetables will be left in the fields or stuck in warehouses. Industry-wide, Jaime Chamberlain predicts shorter supplies, and that means price-hikes.
▶ Read more about trade disruption and price hikes
Vance: US-Ukraine rare earths deal better deterrent against Russia than international peacekeepers
In an interview with Fox News’ Sean Hannity, Vice President JD Vance said the pact that would give the U.S. access to Ukraine’s critical minerals “is a way better security guarantee than 20,000 troops from some random country that hasn’t fought a war in 30 or 40 years.”
“The president knows that, look, if you want real security guarantees, if you want to actually ensure that Vladimir Putin does not invade Ukraine again, the very best security guarantee is to give Americans economic upside in the future of Ukraine,” Vance added.
The interview was recorded hours before a White House official confirmed Monday evening that Trump directed a “pause” of U.S. assistance to Ukraine as he seeks to pressure Ukrainian President Volodymyr Zelenskyy to engage in negotiations to end the war with Russia.
China defended its efforts to control the flow of fentanyl to the US
That came as new American tariffs took effect Tuesday on Chinese imports.
The Trump administration’s stated reason for the tariffs, which hit Canada and Mexico as well as China, is to address drug trafficking and illegal immigration.
A Chinese government report said it had exercised strict supervision over fentanyl-related medications and cracked down on the smuggling, manufacturing, and trafficking of fentanyl-related substances and related precursor chemicals.
“China has achieved notable successes in in-depth cooperation with countries concerned, including the United States,” the report said.
It said China is willing to cooperate “but firmly opposes illegal sanctions and unreasonable suppression on the grounds of the so-called fentanyl issue.”
Following Trump’s lead, his allies criticize Ukraine’s Zelenskyy and suggest he may need to resign
Trump’s senior aides and allies criticized Ukrainian leader Volodymyr Zelenskyy from Washington as he attended a European summit Sunday in London to rally international support for his military’s fight against the Russian invasion.
Following Trump’s lead, White House officials and Republicans in Congress used news show appearances to demand that Zelenskyy display more gratitude for U.S. support and an openness to potential war-ending concessions to Russian President Vladimir Putin. Some suggested Zelenskyy should consider resigning even as Ukrainians rally around him.
But they offered little clarity as to what Zelenskyy and Ukraine could do after Friday’s Oval Office meeting in which Trump and Vice President JD Vance berated him before canceling the signature of an economic agreement between Washington and Kyiv.
▶ Read more about the criticism of Zelenskyy from Washington
Trump’s tariff tactics carry higher economic risks than during his first term
When Trump started the biggest trade war since the 1930s in his first term, his impulsive combination of threats and import taxes on U.S. trading partners created chaos, generated drama -- and drew criticism from mainstream economists who favor free trade.
But it didn’t do much damage to the U.S. economy. Or much good. Inflation stayed under control. The economy kept growing as it had before. And America’s massive trade deficits, the main target of Trump’s ire, proved resistant to his rhetoric and his tariffs: Already big, they got bigger.
The trade war sequel that Trump has introduced in his second term is likely to be a different matter altogether. Trump appears to have grander ambitions and is operating in a far more treacherous economic environment this time.
▶ Read more about the impacts of Trump’s tariffs
India’s steel industry contemplates potential fallout from Trump administration tariffs
Many industry workers and experts expect that the result of tariffs will be that cheap steel gets dumped in places like India. That’s because the announced tariff will make it too expensive for many companies in countries like China and South Korea to keep exporting to the U.S.
For B. Praveen of Sun Techpro Engineering, which makes products from steel metal sheets, it means his “wafer-thin” profit margins will probably grow as the steel he buys gets cheaper.
“For thousands of companies like mine, this can be a good thing,” he said. Businesses such as Praveen’s employ over 200 million Indians and are key drivers of India’s economy.
But cheaper steel in India isn’t good for everyone. In February Naveen Jindal, the president of the Indian Steel Association, which represents all India’s steelmakers, said that he was “deeply concerned,” especially since “India is one of the few major markets without any trade restrictions,” making it a target for potential steel dumping. And the increased competition could impact efforts by India to produce its own steel more cleanly. The current production of most Indian steel releases high levels of greenhouse gas emissions, which cause climate change. Reduction efforts could be cut in the interest of keeping profits up.
▶ Read more about how tariffs are impacting India’s steel industry
Here are some goods in the crosshairs of Trump’s tariffs on Mexico, Canada and China
The United States last year did nearly $2.2 trillion in the trade of goods — exports plus imports — with the countries the president is targeting: $840 billion with Mexico, $762 billion with Canada and $582 billion with China.
Energy imported from Canada, including oil, natural gas and electricity, will be taxed at a lower 10% rate — a concession to households in the U.S. Northeast and Midwest that depend on Canadian energy.
The following are just a few imported goods whose prices may be hit first:
▶ Read more about some of the goods that will be hit hardest by the tariffs
US tariffs on Canada and Mexico take effect as China takes aim at US farm exports
Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties.
The 10% tariff that Trump placed on Chinese imports in February was doubled to 20%, and Beijing retaliated Tuesday with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.
Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. Mexico didn’t immediately detail any retaliatory measures.
The U.S. president’s moves raised fears of higher inflation and the prospect of a devastating trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity. He has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country.
▶ Read more about Trump’s tariffs
