President Trump’s 25% tariffs on goods from Mexico and Canada took effect Tuesday at 12:01 a.m. Eastern time. U.S. stocks fell Monday after Trump confirmed that the tariffs would go ahead. In response, Canada said it intends to immediately impose 25% tariffs on nearly $100 billion of imported U.S. goods in two waves.
The U.S. also imposed an additional 10% tariff on Chinese imports at 12:01 a.m. Tuesday, adding to the 10% tariffs Trump imposed on China in early February, as well as other duties already in place. China swiftly announced retaliatory tariffs on U.S. food and agricultural products, and other measures against American companies. Beijing also filed a lawsuit with the World Trade Organization challenging the new tariffs.
Economists say American importers and businesses will likely pass along the cost of tariffs to consumers, meaning individuals are likely to see higher prices at the grocery store and car dealerships.
