After a month-long pause, President Trump imposed 25% tariffs on imports from Canada and Mexico yesterday and raised last month’s tariff on Chinese goods from 10% to 20%.
Canada and China retaliated swiftly. China imposed a 10-15% tariff on U.S. agricultural imports, and Canada levied a 25% tax on tens of billions of dollars’ worth of American goods. Mexico promised to respond with both “tariff and non-tariff measures” on Sunday.
The stock market didn’t take the news lightly; all three major indexes dropped as investors braced for rising prices and falling consumer demand. Automakers could be hit hardest as car parts currently cross borders multiple times during the manufacturing process. Meanwhile, Target’s CEO warned shoppers to brace for higher prices—specifically on produce and alcohol—as soon as this week.
