Mon Mar 03 21:00:04 UTC 2025: **Trump Imposes 25% Tariffs on Mexican and Canadian Imports**

**Washington D.C., March 4, 2025** – President Donald Trump announced Monday that 25% tariffs on imports from Mexico and Canada will take effect Tuesday, escalating fears of a North American trade war. The tariffs, which will also affect Canadian energy products at a 10% rate, are justified by the President as necessary to combat fentanyl trafficking and illegal immigration, and to address trade imbalances.

Mr. Trump’s announcement sent shockwaves through the US stock market, with the S&P 500 index falling 2% on Monday. Despite concerns about increased inflation and the potential collapse of long-standing trade partnerships, the Trump administration remains confident in the tariffs as a means to boost domestic manufacturing and attract foreign investment. Commerce Secretary Howard Lutnick cited TSMC’s expanded US investment as evidence of this strategy’s success.

Although a one-month delay was granted in February following promises of concessions from both Mexico and Canada, President Trump stated that no further room for negotiation exists. Canadian Foreign Minister Melanie Joly responded that Canada is prepared to retaliate with $155 billion in tariffs, with an initial $30 billion tranche ready to be implemented. Diplomatic efforts are ongoing. The move marks a significant escalation in trade tensions between the US and its northern neighbors.

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