Kraman Countdown panelists Kenny Polcali and Simeon Heyman will analyze how the market responds to tariffs in Canada and Mexico.
President Donald Trump’s new tariffs on China, Canada and Mexico came into effect in the middle of the night Tuesday morning, raising the taxes US importers pay on certain goods once they enter the country.
By Tuesday, US imports from China, the US’s third largest US trading partner, will be subject to a new 10% tariff, in addition to the first 10% tariffs it imposed on Chinese goods last month.
Tariffs on imports from Canada and Mexico (the two largest bilateral trading partners in the United States) are also expected to rise, with a 25% tariff on all imports from both countries, according to Census Bureau data. The tariffs include a 10% tariff engraving on Canadian oil imports.
President Trump was asked on Monday if there were any rooms left to Canada or Mexico to make a deal to avoid tariffs, and he said, “There are no rooms left in Mexico or Canada. No, tariffs, they’re all set.
Warren Buffett says tariffs are economic “acts of war”: “Tooth Fairy doesn’t pay “em””
President Donald Trump’s 25% tariffs on Canadian and Mexican imports came into effect Tuesday, adding a 10% tariff on Chinese goods. (Andrew Harnik / Getty Images / Getty Images)
Shortly after taking office in January, Trump announced he would impose tariffs on the three countries, citing illegal fentanyl cargo flows across the Mexican-Canada border and fentanyl precursor chemicals shipped from China. He cited the authority under the International Emergency Economic Force Act (IEEPA).
China’s tariffs were implemented on schedule, but the president delayed tariffs in Canada and Mexico for a month after the two countries announced border security measures.
“You know, you understand, from Mexico, and as you know, a huge amount of fentanyl is poured into our country from China, who goes to Mexico and Canada.
Who is stuck on a tariff bill on imported Canadian oil?
US agricultural products face retaliatory tariffs imposed by American trading partners. (Getty Images/Benbrewer via Getty Images/Bloomberg)
US trading partners have already shown to retaliate through their own tariffs on US exports and potential non-tariff trade barriers targeting US companies.
Canada has announced that it will impose a 25% tariff on various American exports, including machinery, auto parts, apparel products, alcohol and cigarettes, sports goods, plastic products, construction materials, wood, agricultural products, home appliances, furniture and chemicals.
It also plans additional tariffs on other US-made products that are expected to include cars, trucks, buses, electric vehicles (EVs), recreational vehicles, steel and aluminum products, fruits and vegetables, beef, pork and dairy products, and more.
Consumer trust fell in February, the biggest monthly decline in almost four years
The US automotive industry is expected to face retaliatory tariffs on auto parts and potentially completed vehicles. (Photographer: Getty Images/Emily Elconin via Getty Images/Bloomberg)
The Mexican government signaled in February that it was planning retaliatory tariffs to be implemented if Trump imposes tariffs on Mexico, but at the time it did not specify these measures. A Reuters report citing sources familiar with the issue suggests that potential tariffs range from 5% to 20% of US pork, cheese, agricultural products, and manufactured steel and aluminum.
China retaliated against early tariffs by imposing a 15% tariff on US energy exports, including coal, natural gas and oil. According to an analysis of the Brookings facility, there is a 10% tariff, as well as a 10% tariff on manufactured goods such as trucks and farm machinery.
The newly imposed tariffs are expected to elicit more retaliation from China as the AP reported that the Chinese government is focusing on US agricultural exports and food tariffs as targets.
Click here to get your Fox business on the go
An analysis by the Tax Foundation found that tariffs imposed on imports from China reduce long-term GDP by 0.1%, while tariffs on goods in Canada and Mexico have hit economic production hard and reduce GDP by 0.3%. These figures are before accounting for retaliation by these countries for American products.
The Tax Foundation analysis noted that the US imported $29.2 billion of non-energy and $120 billion of energy products from Canada in 2024. Imports from Mexico were $540 billion last year, while imports from China totaled $430 billion in additional imports shipped using the “de minimis” loophole.
