On March 3, 2025, President Trump announced a 25% tariff on imports from Canada and Mexico, effective the following day. This decision aims primarily to address issues of illegal immigration and fentanyl trafficking while attempting to correct trade imbalances and stimulate U.S. manufacturing. The immediate market reaction saw the S&P 500 index decrease by 2%, reflecting investor concerns over inflation and the potential for escalating tensions with U.S. trade partners. Although officials like Commerce Secretary Lutnick point to foreign investments as positive responses to such tariffs, Canadian officials are preparing their own countermeasures involving significant tariffs.
"Tomorrow tariffs 25% on Canada and 25% on Mexico. And that'll start," Trump told reporters in the Roosevelt Room. "They're going to have to have a tariff."
"If Trump is imposing tariffs, we are ready," said Canadian Foreign Minister Melanie Joly. "We are ready with $155 billion worth of tariffs and we're ready with the first tranche of tariffs, which is $30 billion."
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