Markets brace for new tariffs that are set to be in effect in hours and could surpass Trump's entire first term

Published On Mar 3, 2025, 4:17 PM

Markets are reacting to the announcement of new tariffs set to take effect imminently, affecting major trading partners including Canada, Mexico, and China. President Trump is imposing a 25% duty on imports from Canada and Mexico and increasing existing tariffs on Chinese goods. Analysts warn that this escalation could lead to significant economic costs, revisiting the impacts of previous tariffs during Trump's initial term, which reportedly shrank US GDP and affected employment. The potential retaliations from targeted nations further complicate the economic landscape, leading to increased uncertainty in investment and consumer markets. Overall, there is a growing concern that these tariffs could push the economy toward recession, especially if retaliatory measures are enacted.