Washington March 3 2025: U.S. President Donald Trump said on Monday that there was no chance for Mexico or Canada to prevent 25% tariffs from taking effect on Tuesday, sending financial markets reeling on the prospect of new economic barriers in North America.
“They’re going to have to have a tariff. So what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said at the White House. He said there was “no room left” for a deal that would avert the tariffs by curbing fentanyl flows into the United States.
U.S. stock indexes extended their losses after Trump’s comments. The Dow Jones Industrial Average (.DJI), opens new tab was down 1.58% for the day, the S&P 500 (.SPX) was down 1.78% and the Nasdaq Composite (.IXIC) was down 2.47%.
Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products.
CEOs and economists say the action, covering more than $900 billion worth of annual U.S. imports from its southern and northern neighbors would deal a serious setback to the highly integrated North American economy
