US tariffs on Canada and Mexico will happen Tuesday, says commerce chief
Published On Mar 3, 2025, 8:07 AM
US tariffs on imports from Canada and Mexico are set to take effect on Tuesday, with President Trump expected to impose a 25% tariff on these goods to combat what is described as an influx of illegal drugs and migrants. The tariffs' specifics are still under negotiation, but Canada has warned of potential retaliatory tariffs on American products, amounting to roughly $30 billion in value. Additionally, a 10% tariff on Chinese goods is expected, leading to a potential increase in overall tariffs on Chinese imports by 20%. China has indicated plans for countermeasures targeting US agricultural products, raising fears of a trade war. US Commerce Secretary Howard Lutnick confirmed the tariffs are proceeding, with ongoing discussions about their nature.
Stock Forecasts
MOO
Negative
Due to the potential increase in tariffs and resulting trade tensions, affected sectors such as agriculture and consumer goods may face increased costs and reduced demand. Companies reliant on exports to Canada and Mexico may see declines in revenue, while US agricultural firms might suffer from retaliatory measures from these countries. Investors should be cautious in sectors impacted by tariffs, particularly in agriculture and manufacturing.
XLI
Positive
Strong materials and industrials sectors may benefit as domestic demand for products rises in response to tariffs on imports, potentially boosting US manufacturing subsidiaries. Stocks in these sectors might see upward price adjustments based on increased domestic production needs.
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