U.S. President Donald Trump on Saturday imposed tariffs of 25% on imports from Canada and Mexico and 10% on imports from China.
The White House confirmed that the tariffs take effect immediately.
Trump had set the February 1 deadline for the tariffs, linking them to efforts to curb the flow of fentanyl and illegal immigration into the United States. He stated that no action from Canada, Mexico, or China could prevent the decision.
He indicated that oil imports from Canada would be subject to a 10% tariff instead of 25%, while additional tariffs on oil, natural gas, and other sectors were expected by mid-February.
The tariffs affect a large volume of trade between the United States and its top trading partners. U.S. businesses that import goods from Canada, Mexico, and China will now pay higher duties.
The increased costs may impact industries that rely on imported components and materials.
Financial markets responded to the tariff announcement with declines. The Dow Jones Industrial Average closed at 44,544.66, falling 337.47 points. The S&P 500 dropped 30.64 points to 6,040.53, while the Nasdaq Composite lost 54.31 points to 19,627.44.
The Canadian dollar and Mexican peso weakened, and U.S. Treasury yields rose.
Canada and Mexico have stated that they will introduce retaliatory measures. Canada plans to impose duties on U.S. imports, while Mexico is reviewing its response.
China has also stated that it will respond to the tariffs but has not announced specific measures.
The White House confirmed that the details of the tariffs would be released later on Saturday. The administration is also considering imposing duties on European goods, as well as additional tariffs on steel, aluminum, and semiconductors.
Trump traveled to his Mar-a-Lago estate in Florida on Friday evening and is expected to work on trade policy over the weekend.
