Trump tariffs on Canada, Mexico, China rattle markets

Trump has ordered 25% tariffs on most imports from Canada and Mexico and an additional 10% import tax on Chinese goods

(Image credit: Artur Widak / NurPhoto via Getty Images)

published 3 February 2025

What happened

U.S. stock futures were down sharply, oil prices were higher and Asian markets were lower Monday morning, the first trading day since President Donald Trump's Saturday orders for 25% tariffs on most imports from Canada and Mexico and an additional 10% import tax on Chinese goods. Oil imports from Canada will be taxed at 10%. Canada quickly announced targeted retaliatory tariffs and Mexico and China said they will unveil their responses soon.

"Will there be some pain? Yes, maybe," Trump said in all-caps on Truth Social Sunday. But "it will all be worth the price that must be paid." The tariffs on America's top three trading partners are expected to raise the prices of everything from gas, cars, consumer electronics and homebuilding to avocados, tomatoes and Mexican beer and tequila. Trump has "framed his latest actions as leverage on immigration and drugs," The Associated Press said, though tiny amounts of fentanyl and migrants enter the U.S. from Canada.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.