The Trump Administration will be laid on rates for products from Mexico, Canada and China, which make up the three largest trading partners in the United States. This move can affect prices for everything from gasoline to avocado to iPhone.
President Donald Trump appointed on March 4 as a start date for 25% imports for imports from Mexico and Canada, as well as an additional 10% tariff for Chinese goods.
As he spoke to the White House on Monday afternoon, Trump confirmed that the tariffs would come into force the next day.
The message sent major shares indices that decrease. The industrial average of Dow Jones dropped 700 points, or about 1.5%; until s& P 500 collapsed by nearly 2%. The technologically heavy NASDAQ fell by 2.5%.
The deadline arrives approximately one month after Trump provided Mexico and Canada to withdraw from such tariffs, reaching agreements with both sides on border security and drug trafficking.
Here’s what you know about the tariffs that need to come into force on Tuesday.
Tariffs could entice trade with the US – unless they happen
In recent days, Trump has reaffirmed his commitment to set tariffs for Canada and Mexico.
In numerous statements, Trump said he intended to move forward with politics. On Thursday, Trump claims that drugs continue to enter the United States through Mexico and Canada, despite the agreements reached last month to solve the problem.
“We cannot allow this scourge to continue to harm the United States, and therefore, until it is stopped or is seriously restricted, the proposed tariffs intended to come into force on March Fourth, will indeed come into force as planned,” Trump said in a publication on social truth.
Trump expressed similar concerns about Mexico and Canada before the previous tariff deadline before overcoming the measures.
Trade Secretary Howard Luni on Monday praised Mexico and Canada for their recent efforts to deal with border security, suggesting that the rates of tariffs remains uncertain.
“[Trump] We will decide today – tomorrow we will expose it, “Luni told CNN, describing the creation of a policy as a” liquid situation “.
On Monday afternoon, Trump confirmed that the fresh circle of tariffs would come into force the next day.
“It will start,” Trump said. “They will have to have tariffs.”
New tariffs can raise prices for some basic things
The rates for Mexico, Canada and China can raise prices for a huge range of goods, experts told ABC News earlier.
Tariffs of this scale are likely to increase prices paid by US buyers, as importers usually go into a share of the cost of these higher taxes for consumers, experts said. Policy can increase the prices of products ranging from tomatoes to tequila to auto parts.
President Donald Trump listens while he meets with Ukraine President Volodimir Zelenski in the White House Oval Cabinet in Washington, Colombia County, February 28, 2025.
Saul Loeb/AFP through Getty Images
Higher car production costs can be a challenge for US car manufacturers, many of whom depend on the supply chain closely intertwined with Mexico and Canada.
“The automotive sector, in particular, is likely to see significant negative consequences, not only because of the interruption of supply chains that cross the three countries in the production process, but also because of the expected increase in the price of vehicles, which can control the demand,” said Gustavo Flores, Professor at Government and Public Policy Cornell University at Cornell University at Cornell University at Cornell University, ABC News told a statement.
Mexico and Canada represent 70% of the imports of crude oil in the United States, which make a key contribution to gasoline supply to the country, according to the US Energy Information Administration, a government agency.
Trump said earlier that Canadian energy resources such as oil and gas would be subject to 10% tariffs, with the exception of 25% tariff products facing all other imports from the country.
The United States is importing $ 38.5 billion to agricultural goods from Mexico in 2023, making it a major recipient of such products, according to data from the US Department of Agriculture. These imports include fresh fruits and vegetables worth over $ 3 billion.
Approximately 90% of avocado eaten in the United States last year came from Mexico, USDA data show. Other products with a high concentration of Mexican imports include tomatoes, cucumbers, peppers, jalapeneos, linden and mango.
Directed states can avenge
Fresh tariffs can cause revenge from Mexico, Canada and China.
In anticipation of the tariffs last month, Canadian Prime Minister Justin Trudeau threatens the vengeful tariffs for goods worth $ 155 billion and urged Canadians to choose products produced in Canada over their American colleagues.
Mexican President Claudia Shainbaum said she had instructed employees in her government to apply plan B, “which includes tariffs and non -tariff measures to protect Mexico’s interests.”
Speaking to reporters on Monday, Shainbaum said the latest US conversations have gone “very well”, but that Mexico retains options if necessary.
“We’ll wait and see what happens,” said Shainbaum. “In this, you have to have Mettle, Serenity and Tustisence and we have plan A, plan B, Plan C, Plan D, so we’ll wait today.”
ABC News Ann Flashi has contributed to this report.
