Trump tariffs on Canada, Mexico, China rattle markets
The tariffs on America's top three trading partners are expected to raise the prices of everything from gas and cars to tomatoes and tequila


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.
Who said what
"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.
"Tariffs are simply taxes," Sen. Rand Paul (R-Ky.) said on X, and "taxing trade will mean less trade and higher taxes." If other congressional Republicans agreed, The New York Times said, "they kept it to themselves." This is "the dumbest trade war in history," The Wall Street Journal said in an editorial, and that may be "an understatement."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
The U.S. and Canadian tariffs are scheduled to go into effect Tuesday. "What comes next is highly uncertain because Trump's motives are difficult to discern," the Journal said.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
Trump wants to exert control over federal architecture
The Explainer Beyond his ballroom, Trump has several other architectural plans in mind
-
NY attorney general asks public for ICE raid footage
Speed Read Rep. Dan Goldman claims ICE wrongly detained four US citizens in the Canal Street raid and held them for a whole day without charges
-
Trump’s huge ballroom to replace razed East Wing
Speed Read The White House’s east wing is being torn down amid ballroom construction
-
Trump expands boat strikes to Pacific, killing 5 more
Speed Read The US military destroyed two more alleged drug smuggling boats in international waters
-
Whistles emerge as Chicago’s tool to fight ICE
IN THE SPOTLIGHT As federal agents continue raiding the city, communities have turned to noisemakers to create a warning system
-
Will California’s Proposition 50 kill gerrymandering reform?
Talking Points Or is opposing Trump the greater priority for voters?
-
‘The trickle of shutdowns could soon become a flood’
Instant Opinion Opinion, comment and editorials of the day
-
Trump demands millions from his administration
Speed Read The president has requested $230 million in compensation from the Justice Department for previous federal investigations