President Donald Trump enacted sweeping tariffs on imports from Canada and Mexico, as well as increasing duties on Chinese goods.
Starting Tuesday, a 25% tariff was applied to products coming from the U.S.’s neighboring countries, marking a significant escalation in trade tensions.
Trump announced a new 10% tariff on Chinese imports, effectively doubling the previous 10% duty that was imposed in early February.
In reaction to these new tariffs, Mexico’s president stated that retaliatory tariffs would commence on Sunday, indicating a potential trade conflict ahead between the two countries.
Economists have expressed concerns that Trump’s aggressive trade policies could have negative repercussions on a global scale, including the possibility of triggering inflation that would ultimately hurt consumers in the U.S. and abroad.
Following the announcement of the tariffs, the stock market experienced a dramatic sell-off, with the S&P 500 index plunging 1.8%. This decline represented the worst trading day since December and pushed the index into negative territory for the year.
As markets reopened and futures continued trending downward on Tuesday, investors remained apprehensive about the potential economic fallout stemming from these tariff measures.
Source (CNBC)
