Oil prices fell to multi-month lows on Tuesday after reports of OPEC+ plans to proceed with output increases in April while further price pressure was applied by U.S. tariffs on Canada, Mexico and China as well as Beijing's retaliatory tariffs.

China and Canada immediately imposed retaliatory tariffs, and Mexico said it would announce its own measures on Sunday. The responses escalated a trade war that has rattled the globe. Keith Bradsher Ana Swanson and Matthew Mpoke Bigg Stock markets opened lower on Tuesday, reflecting mounting investor concerns about the global economy, after President Trump imposed tariffs on Canada, Mexico and China, and Beijing and Ottawa announced swift retaliation. The escalating trade war added to global uncertainty that was compounded by the Trump administration’s decision to suspend military aid to Ukraine. The S&P 500 fell 0.7 percent at the start of trading, adding to a 1.8 percent loss on Monday that was its sharpest decline this year. European stock markets also fell in trading on Tuesday. The Trump administration’s new tariffs — an additional 10 percent on imports from China and 25 percent on most imports from Canada and Mexico — may encourage some companies to set up factories in the United States, but they could also strain supply chains, add costs for American consumers and manufacturers, and test diplomatic ties. China and Canada imposed tariffs on U.S. goods, while President Claudia Sheinbaum of Mexico said Tuesday that her country would announce its countermeasures, including retaliatory tariffs, on Sunday, if the U.S. tariffs were still in place. China’s finance ministry announced 15 percent tariffs on imports of chicken, wheat, corn and cotton from the United States, as well as 10 percent tariffs on imports of U.S. sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products. Canada imposed 25 percent tariffs on $30 billion worth of goods at 12:01 a.m. Eastern but did not specify which products would be affected. Prime Minister Justin Trudeau of Canada said in a statement that the tariffs would extend to $125 billion of American goods in 21 days. Trump defended the tariffs in a post on Truth Social on Tuesday, arguing that companies could avoid them if they set up shop in the United States. It was his third tariff-related post in an hour. China’s reaction: China’s retaliation includes levies on U.S. food imports and halting the sale of Chinese goods to 15 American companies. China is the top overseas market for American farmers, wielding considerable influence over prices and demand in the commodities markets of the Midwest. Canadian damage: Tariffs are likely to damage Canada’s economy, which is dependent on exports and tightly integrated with the American market. Canada’s prime minister, Justin Trudeau, is expected to address his country’s response in a news conference on Tuesday morning. Tariff basics: Trade wars were a feature of Mr. Trump’s first term. But his latest tariffs could broaden the scale of disruption. Canada, Mexico and China account for more than a third of the products brought into the United States. On bridges in Ciudad Juárez, Mexico that are often full of tractor trailers carrying goods into El Paso, lanes are empty and traffic has been light on Tuesday morning. At the Zaragoza bridge, which was open, there was no line. The operators of electric grids in New York and New England say they are still unsure whether the tariffs apply to electricity imports from Canada, but they have filed plans with federal regulators to collect duties if they are ordered to do so. The two regions receive large amounts of power from hydroelectric dams in Ontario and Quebec, and any tariffs would likely cause electricity bills to go up for households and bsuinesses. In effect Feb. 4 China 10% on all imports › In effect March 4 Mexico 25% on all imports › In effect March 4 Canada 25% on most imports, lower rate for energy › President Claudia Sheinbaum at the National Palace in Mexico City on Tuesday. “We don’t want to enter into a trade war,” she said. “That only affects the people.” Credit...Alfredo Estrella/Agence France-Presse — Getty Images President Claudia Sheinbaum of Mexico kept her silence overnight. But on Tuesday morning, she kicked off her daily news conference with a sharply-worded statement in which she said her government rejected President Donald Trump’s characterization of Mexico, and she roundly criticized the 25 percent tariffs that he imposed on it hours earlier. Ms. Sheinbaum said Mexican officials had a call with Mr. Trump scheduled for Thursday, and that if the tariffs remained in effect, Mexico would announce countermeasures, including retaliatory tariffs, on Sunday. “We don’t want to enter into a trade war,” she said. “That only affects the people.” After ticking off a list of Mexico’s recent successes in cracking down on drug trafficking and more — as Mr. Trump asked Mexico’s government to do to avert tariffs — Ms. Sheinbaum rejected what she called the “fentanyl argument” invoked by Mr. Trump to justify the imposition of the tariffs. “For humanitarian reasons," her statement said, “we cooperate to prevent the illegal trafficking of drugs into the United States. However, as we have stated on many occasions, the government of that country must also take responsibility for the opioid crisis that has caused so many deaths in the United States.” Her statement addressed what she said were her government’s actions in the areas that Mr. Trump said he wanted to see changes in, specifically the seizure of drugs and arms and the extradition to the United States of close to three dozen cartel leaders, which she said had been “recently transferred to the United States for the benefit of both countries’ security.” “We are emphatic,” Ms. Sheinbaum said. “There is no reason, justification, or excuse that supports this decision that will affect our people and nations. We have said it in various ways: cooperation and coordination, yes; subordination and interventionism, no. Mexico deserves respect.” She ended by urging her country to show unity in the face of the crisis. “I call upon the people of Mexico, all of you, to face this challenge together, to stay united,” Ms. Sheinbaum said. “I reiterate: it is time to defend Mexico and its sovereignty. We must stay alert and calm. Cool heads.” The economic impact of tariffs depends in large part on how global trade shifts around to account for the increased costs and how consumers adapt. Citing the diversion of trade to Vietnam and Mexico during Trump’s trade war in his first administration, economists at Pantheon Macroeconomics predict these tariffs will lead to a 2 percentage point decline in the share of U.S. imports from Mexico, down to 13 percent. Canada’s exports to the U.S. are forecast to fall to 10 percent. The economists also expect consumers to substitute certain products with those made by domestic manufacturers, which they say “will become more competitive.” They also expect retailers to absorb about 10 percent of tariff-related cost increases. Since taking office, President Trump has picked fights with other nations that he believes are taking advantage of the United States.Credit...Eric Lee/The New York Times On the campaign trail, President Trump made no secret about how he would approach a second term: He would get tough with nations around the world, even friends and allies, that he believed were taking advantage of the United States’ economic and military might. The result — which has seemingly caught many international leaders off guard — has been a fraying of military alliances and aggressive tariffs against America’s closest neighbors. Gone is the alliance-first foreign policy of past administrations. The first weeks of the second Trump term have taken on the feel of America vs. the world. “The free world needs a new leader,” Kaja Kallas, the European Union’s foreign policy chief wrote on social media after Mr. Trump clashed with President Volodymyr Zelensky of Ukraine in the Oval Office last week. “It’s up to us, Europeans, to take this challenge.” Now Mr. Trump has imposed tariffs — 25 percent on most imports from Canada and Mexico and two rounds of 10 percent levies on imports from China — which he has said are punishment for their failure to stem the flow of drugs into the United States. The moves have quickly sparked a trade war: China and Canada retaliated immediately, imposing their own tariffs on U.S. goods on Tuesday. Mexico said it would announce its countermeasures, including retaliatory tariffs, on Sunday. The list of countries targeted by Mr. Trump has continued to grow. He has mocked Canada as the 51st state and called its prime minister, Justin Trudeau, a “governor.” (As a result, Mr. Trudeau’s low approval risings got a noticeable rise after Mr. Trump targeted the country.) He has threatened to seize the Panama Canal and annex Greenland from Denmark. He has frozen military aid for Ukraine as the country attempts to fight off a Russian invasion. He has cut off foreign aid that benefits countries throughout Africa, South America and Asia. Now he has imposed tariffs on China, Canada and Mexico. Some of his many threats may just be that — threats or negotiating tactics — but Mr. Trump has shown a willingness to follow through particularly when it comes to tariffs and withholding foreign aid. “It means uncertainty, because right now, it isn’t always clear what is a tactic and what is actually meant,” said Nicholas J. Cull, professor of public diplomacy at the University of Southern California. “So it’s very confusing for people, and I suspect that a lot of foreign policy is being played for domestic audiences to get cheers from the base and to keep people uncertain.” Slightly more Americans approve of Mr. Trump than disapprove after the first weeks in office of his second term, according to averages of polls. He will give a joint address to Congress this evening. Vice President JD Vance defended the use of tariffs against Canada saying that the Trump administration needs to see “real engagement” from Canadian officials committed to stopping the flow of fentanyl into the United States. “That is fundamentally the underlying element of these tariffs is we think the Canadians have not been serious about stopping the drug trade,” he said on Capitol Hill. Last year, less than 1 percent of the fentanyl arriving in the United States came from Canada, yet Vance says that any amount of the deadly drug crossing the borders is too much and tariffs are an effective tool to curb the flow. President Trump in a Truth Social post re-raised his peeve that U.S. banks are prevented from doing business in Canada. He has some footing for that view, inasmuch as major lenders like JP Morgan Chase must operate through subsidiaries in the Canadian market, and are blocked from normal activities like mortgages, meaning they have de minimus operations there. Trump added that Canadian banks “flood the American market,” a considerable overstatement to anyone familiar with the largest banks in the U.S. The chief executives of Target and Best Buy both said on Tuesday morning that tariffs would result in price increases. Corie Barry, the chief executive of Best Buy, said on a conference call that price increases are “highly likely,” but that it was very difficult to say exactly how big they would be. The chief executive of Target, Brian Cornell, said on CNBC that some grocery costs could go up as early as this week, as prices on fruit and vegetables imported from Mexico rise. One exception was the chief executive of Chipotle, who said yesterday that the company planned to absorb any additional costs itself rather than raising prices, at least for now. Chet Thompson, chief executive of a trade association that represents U.S. refiners, urged a quick resolution to the tariffs that took effect today on energy imported from Canada and Mexico. “Imposing tariffs on energy, refined products and petrochemical imports will not make us more energy secure or lower costs for consumers,” Thompson said in a statement. Most U.S. refineries are designed to run on a mix of lighter domestic oil and heavier foreign varieties imported from places like Canada and Mexico. Companies now face the prospect of paying more to bring that heavy oil across the border or cutting production, both of which could lead to higher prices at the pump. Trump defended the tariffs in a post on Truth Social on Tuesday, arguing that companies could avoid them if they set up shop in the U.S: “IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NOT TARIFFS!!!” It was his third tariff-related post in the last hour. Senate Majority Leader John Thune, speaking on Fox News, defended the tariffs as a “means to an end” to combat fentanyl deaths in the U.S. The Republican from South Dakota said that he hoped that they would be temporary. With markets falling this morning, one big question for me is whether this experience will cool Trump’s enthusiasm for tariffs and convince him to back off this or other measures. The president has always paid close attention to the stock markets, and I’m sure he will privately be getting pushback from executives and Republican lawmakers about the potential harm to American businesses. But the president has also spoken favorably of tariffs for decades, and clearly thinks they will help the American economy. Mexico’s currency, the peso, fell as much as 1.10 against the dollar after markets opened on Tuesday morning, and the country’s main stock index declined 1.26 percent. Financial markets in Mexico, which relies overwhelmingly on trade with the United States, are rattled by the prospect that the Trump administration’s new tariffs could push the country’s already weak economy into a recession. Krishna Guha, vice chairman at Evercore ISI, warned that tariffs of this nature would not only increase prices but also dent growth. He said that if these tariffs were maintained, it would increase the Federal Reserve’s preferred inflation gauge by roughly half a percentage point by the final quarter of the year. The core personal consumption expenditures price index, which strips out volatile food and energy prices, stood at 2.6 percent as of January. The impact would persist into next year, Guha warned, forecasting an additional 0.2 percentage point bump up in core PCE inflation in 2026. Gov. Kathy Hochul of New York is hosting a roundtable with farmers and agricultural industry leaders about the impact of these tariffs. She notes that New York exports $22 billion in goods to Canada and worries about the impact of retaliatory tariffs that are likely to come. “You have an enough to worry about,” she told these farmers. “This is the last thing our agricultural industry and state needs.” There’s been little reaction to the tariffs from Congressional Republicans. It’ll be interesting to see how lawmakers who support free trade and whose states depend on exports will respond. Senator Ron Wyden, a Democrat of Oregon, said in a statement this morning that he had no confidence that Republicans would “put their constituents ahead of Trump.” Howard Lutnick, the commerce secretary, said in an interview on CNBC Tuesday morning that the tariffs were “not a trade war,” calling the conflict a “drug war” instead. If Canada and Mexico can prove to the president that they can stop the flow of fentanyl, “then of course the president can remove these tariffs,” Lutnick said. But he said the United States had not seen a “statistically relevant reduction” of deaths. “They’ve done a nice job on the border, but they haven’t stopped the flow of fentanyl,” he said. “Canada is not known to be a major source of fentanyl,” coming into the United States, according to a 2022 report by a Congressional commission that looked into ways to reduce the flow of the drugs into the country. Mexico has taken steps to crack down on drug cartels after the Trump administration threatened it with tariffs, but President Claudia Sheinbaum of Mexico has also argued that the fentanyl crisis stems from domestic American demand for drugs, and the illegal sale of U.S. guns to organized crime gangs in Mexico. Lutnick said that the president’s trade-related tariffs would be coming later, on April 2. He criticized the fact that cars sold in the United States are manufactured in Canada and Mexico, and that Canada puts high protections on agricultural products. “Canada and Mexico had an invitation to trade with the amazing economy the United States of America, and they have abused that invitation, and the president is going to reset that, but that’s April 2. That’s not today,” Lutnick said. The tariffs enacted today target three countries that for decades have been the United States’ largest trading partners. Combined, Mexico, China and Canada account for more than a third of the products brought into the United States, accounting for more than $1 trillion in goods a year. A chart showing which countries have the largest share of U.S. imports. Mexico, China and Canada are the three biggest.

Tariffs of 25% on Canada and Mexico were due to take effect early Tuesday. An extra 10% tariff is being imposed on China. On Monday, Beijing hinted via state media reports that it was planning retaliation that might at least partly focus on U.

Global auto stocks sold off and Mexico's currency weakened after President Trump imposed tariffs on goods from Mexico, Canada and China, prompting retaliation from Beijing and Ottawa. In recent tradin

The White House has also accused Canada and Mexico of failing to prevent criminal gangs from smuggling fentanyl into the US. Beijing has hit back with a 15% tariff of its own, and Canada has announced 25% tariffs against $30bn worth of US goods,

President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, effective Tuesday. Trump also doubled duties on Chinese imports to 20% to punish Beijing over the U.S. fentanyl overdose crisis.

After a monthlong delay, President Donald Trump announced new tariffs on Mexico, Canada, and China.

President Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliation by

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, launching new trade conflicts with the top three U.