Markets sink as Trump confirms tariffs on Canada, Mexico and China

[Social Media]

 

President Donald Trump is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, saying that time had run out to reach a deal. US stock markets sank in response to the measures, which have been threatened since earlier this year and are due to go into effect on Tuesday.

 

An additional 10% tariff on Chinese imports is also expected to come into force, leaving all three of America's top three trade partners facing significantly higher trade barriers than just a few weeks ago. "No room left for Mexico or for Canada," Trump said at the White House on Monday. "The tariffs, you know, they're all set. They go into effect tomorrow."

 

Trump threatened to impose the tariffs - which is a tax that is added to a product when it enters a country - on Canada, Mexico and China in response to what he says is the unacceptable flow of illegal drugs and undocumented migrants into the US.

 

He had already imposed a 10% tariff on Chinese exports to the US last month, meaning goods from the country now face a levy of at least 20%.

All three countries have said they will retaliate against the US in response to the tariffs, raising the prospect of a widening trade war.

 

Based on a report by MSM  2025-03-04

 

 

[flyingtlger]

The Republicans that voted for Trump, especially the ones working in the US government that have gotten resignation notices are regretting they voted for him.....

 

[Harrisfan]

8 minutes ago, flyingtlger said:

The Republicans that voted for Trump, especially the ones working in the US government that have gotten resignation notices are regretting they voted for him.....

 

Trump said he would do this 9 months ago 

[Tug]

Well here comes recession (if we are lucky) tired of winning yet?hey and as a bonus trump is going to make the world hate us cause his stupidity will harm everyone!

[CallumWK]

[bamnutsak]

"You've got 'til Midnight."

 

Meanwhile he's all about Pete Rose.

 

 

 

 

[Harrisfan]

10 minutes ago, Tug said:

Well here comes recession (if we are lucky) tired of winning yet?hey and as a bonus trump is going to make the world hate us cause his stupidity will harm everyone!

Really? Wow a recession. With debt at 130% you guys want to fund a war making it worse.

[Harrisfan]

https://wits.worldbank.org/tariff/trains/en/country/CAN/partner/USA/product/all

[JimHuaHin]

Markets are going to sink as long as Trump is in power, with probably the US market hardest hit.  Massive inflation and unemployment are about to his the USA, and will only stop once Trump-Vance-Musk are removed from power, and preferably imprisoned.

[Walker88]

5 minutes ago, Harrisfan said:

Really? Wow a recession. With debt at 130% you guys want to fund a war making it worse.

Perhaps if you'd done anything in your life other than post 200 times a day under a series of monikers, you would have a better understanding of what's coming. Or maybe you secretly hope all people will tumble down to your financial level of abject failure and suffer through 50 baht street food nutrition.

 

First, you got US debt wrong. It ain't good, but it's not too much worse---or is even better---than most major nations, especially if all debt (Fed, State and Municipal) is added in.

 

Also going for the US has been the fact it is both the world's premier capital market and the owner of the world's reserve currency, boosted by the fact it has a powerful military and many strong allies around the world.

 

All of that is changing. The debt is going to soar at rates even worse than before, as the coming tax cut will add $900 billion per year to the budget deficit. As the economy tumbles into Recession---or now more likely Depression---the debt to GDP ration will jump. Even the Atlanta Fed changed its 1st Q GDP forecast from +2.3% when Biden was still in office to -1.3% since Smoot and Hawley seem to have taken over.

 

Other things that have changed since November are new BRIC members and talk of using the yuan as a reserve currency, and perhaps even more significant is alienating allies. The US needs foreign capital to fund upwards of 30% of its Treasury issuance, and alienating allies does not help. Folks might also remember that back during Campaign #1, the candidate said he would consider defaulting on foreign owned US Treasuries. I suspect nations are thinking about that right now.

 

The guy is also both bizarre and capricious when it comes to policy. The tariffs are moronic and will harm the US (unless you think producing factories to replace tariffed goods can be built in an afternoon). Also, the rule of law has been a mainstay of the attractiveness of US capital markets. $billions can easily move in and out of the US faster and easier than any other market in the world. Now nobody can rule out the possibility POTUS will EO some rule that prevents capital from leaving. He's certainly stupid enough, and this time he lacks the guardrails he had in 1.0 in the form of rational staff and Cabinet members.

 

A Recession and a stock market decline are guaranteed for 2025, and that only if the US is lucky. A Depression and a stock market crash are now on the table. The clown who bankrupted even businesses where fools line up to give you their money (casinos) has been a business failure his entire life, save for two things: a massive inheritance and co-signed loans from daddy, and the fantasy creation of Mark Burnett, who handed his creation his first positive tax returns of his life. POTUS will do for the US what he did in his private life before his Game Show hosting duties, and now there's no daddy to bail him out.

[Jeff the Chef]

NEW YORK (AP) — U.S. stocks tumbled Monday and wiped out even more of their gains since President Donald Trump ’s election in November, after he said that tariffs announced earlier on Canada and Mexico would take effect within hours.

The S&P 500 dropped 1.8% after Trump said there was “no room left” for negotiations that could lower the tariffs set to begin Tuesday for imports from Canada and Mexico. Trump had already delayed the tariffs once before to allow more time for talks.

Trump’s announcement dashed hopes on Wall Street that he would choose a less painful path for global trade, and it followed the latest warning signal on the U.S. economy’s strength. Monday’s loss shaved the S&P 500’s gain since Election Day down to just over 1% from a peak of more than 6%. That rally had been built largely on hopes for policies from Trump that would strengthen the U.S. economy and businesses.

 

https://apnews.com/article/stocks-markets-china-rates-inflation-72339ddf1ecb65d7815f4bb5272197d7

[Harrisfan]

1 hour ago, JimHuaHin said:

Markets are going to sink as long as Trump is in power, with probably the US market hardest hit.  Massive inflation and unemployment are about to his the USA, and will only stop once Trump-Vance-Musk are removed from power, and preferably imprisoned.

Markets were always going to sink. NASDAQ rose 100% in 2 years after covid. US debt is too high. Something had to be done. Democrats just put their heads into the sand.

[Patong2021]

The trade war with Canada makes no sense. TD Bank spells it out in this summary 

https://economics.td.com/ca-canada-us-trade-balance

 

If Trump thinks he can bully his northern neighbors, he should think again. They are like those hockey players who brawled in the first minute of the game with the USA. They won't give up and are going to draw blood to make their point.

 

[BKKKevin]

Good riddiance to all those woke Biden stock market gains!... 

[Emdog]

Just to remind Trump backers, the trade deal Trump complains about that is robbing and destroying US is the one his administration put in effect during DJT Part 1. The deal that was the "envy of the world, that would make all 3 economies grow at an unprecedented rate." as he said boasting of the deal back then

Trump tends to blame all on Biden.... why not this time? oh,  this was 100% his deal, his baby to replace NAFTA... and I suppose it fitting that this moron shoots himself & US with his stupidity regarding tariffs

[Harrisfan]

4 minutes ago, Emdog said:

Just to remind Trump backers, the trade deal Trump complains about that is robbing and destroying US is the one his administration put in effect during DJT Part 1. The deal that was the "envy of the world, that would make all 3 economies grow at an unprecedented rate." as he said boasting of the deal back then

Trump tends to blame all on Biden.... why not this time? oh,  this was 100% his deal, his baby to replace NAFTA... and I suppose it fitting that this moron shoots himself & US with his stupidity regarding tariffs

Can't understand any of that.

[Harrisfan]

11 minutes ago, BKKKevin said:

Good riddiance to all those woke Biden stock market gains!... 

High spending does that 

[Harrisfan]

14 minutes ago, Patong2021 said:

The trade war with Canada makes no sense. TD Bank spells it out in this summary 

https://economics.td.com/ca-canada-us-trade-balance

 

If Trump thinks he can bully his northern neighbors, he should think again. They are like those hockey players who brawled in the first minute of the game with the USA. They won't give up and are going to draw blood to make their point.

 

Canada has loads of tariffs on the US. No word from the left.

[Patong2021]

6 minutes ago, Harrisfan said:

Canada has loads of tariffs on the US. No word from the left.

Loads? Ok  show me the loads. The import taxes that apply to poultry, dairy and eggs are insignificant and don't matter now since Canadians can  purchase affordable eggs in Canada and don't want the expensive  US eggs. Nor is there a market for the hormone and antibiotic infused US poultry. Canadians don't want US dairy because the US relies on growth hormones, whereas Canada does not.

 

What are the loads of tariffs and how does it harm the US exports, if Canadian consumers  don't want them?

[Harrisfan]

https://worldpopulationreview.com/country-rankings/list-of-tariffs-by-country

 

https://wits.worldbank.org/tariff/trains/en/country/CAN/partner/USA/product/all

 

US ranks behind Canada and Thailand 

[Eric Loh]

Stock market is the barometer of the country economic health. Reflect the market sentiment and expectation. The country economic trajectory is heading towards a downturn and perhaps a recession. Trade wars never a winning formula for economic growth. Unfortunately, Trump is not listening and  his cabinet has no courage to give him proper advise 

[bamnutsak]

Last time trump did tariffs...

 

92 Percent of Trump’s China Tariff Proceeds Has Gone to Bail Out Angry Farmers

 

https://www.cfr.org/blog/92-percent-trumps-china-tariff-proceeds-has-gone-bail-out-angry-farmers

 

 

Fool me twice.

 

[Harrisfan]

4 minutes ago, Eric Loh said:

Stock market is the barometer of the country economic health. Reflect the market sentiment and expectation. The country economic trajectory is heading towards a downturn and perhaps a recession. Trade wars never a winning formula for economic growth. Unfortunately, Trump is not listening and  his cabinet has no courage to give him proper advise 

Stocks always go up and down. High spending makes them go up more but results in a bigger crash. 

[Harrisfan]

2 minutes ago, bamnutsak said:

Last time trump did tariffs...

 

92 Percent of Trump’s China Tariff Proceeds Has Gone to Bail Out Angry Farmers

 

https://www.cfr.org/blog/92-percent-trumps-china-tariff-proceeds-has-gone-bail-out-angry-farmers

 

 

Fool me twice.

 

So less than revenue. 

[Jim Blue]

I think I know what the K in 401 k means !

[bamnutsak]

Trump Tariffs 2018 Apprentice Episode

 

The Total Cost of U.S. Tariffs

 

Former President Trump unilaterally imposed numerous tariffs on a variety of goods including, but not limited to, imports from China and steel and aluminum imports from across the world, creating upward pressure on prices in the United States.

To date, President Biden has replaced only the tariffs on European steel and aluminum and Japanese steel with a tariff-rate quota system, but has kept in place the tariffs for most other countries, including China, and in March of 2023 raised tariffs on Russian aluminum and various other goods in response to the country’s invasion of Ukraine.

 

Based on 2022 import levels, these tariffs currently impact over $350 billion of imports and exports and increase consumer costs by roughly $51 billion annually.

 

https://www.americanactionforum.org/research/the-total-cost-of-tariffs/

[cjinchiangrai]

34 minutes ago, Harrisfan said:

Can't understand any of that.

It shows in every post you make too.

[Harrisfan]

6 minutes ago, bamnutsak said:

Trump Tariffs 2018 Apprentice Episode

 

The Total Cost of U.S. Tariffs

 

Former President Trump unilaterally imposed numerous tariffs on a variety of goods including, but not limited to, imports from China and steel and aluminum imports from across the world, creating upward pressure on prices in the United States.

To date, President Biden has replaced only the tariffs on European steel and aluminum and Japanese steel with a tariff-rate quota system, but has kept in place the tariffs for most other countries, including China, and in March of 2023 raised tariffs on Russian aluminum and various other goods in response to the country’s invasion of Ukraine.

 

Based on 2022 import levels, these tariffs currently impact over $350 billion of imports and exports and increase consumer costs by roughly $51 billion annually.

 

https://www.americanactionforum.org/research/the-total-cost-of-tariffs/

Yet the US is a lower tariff nation than Thailand

[Harrisfan]

Just now, cjinchiangrai said:

It shows in every post you make too.

Sorry Trump is Hitler. Only words you know.

[Chomper Higgot]

35 minutes ago, Harrisfan said:

High spending does that 

The evidence is clearly otherwise.