Day Trading Reports
  • Business
  • World News
  • Politics
  • Investing
  • Business
  • World News
  • Politics
  • Investing

Day Trading Reports

Investing

Stock Markets Plunge as Trump’s New Tariffs Shake Global Trade; Canada and Mexico Retaliate

by admin March 6, 2025
March 6, 2025
Stock Markets Plunge as Trump’s New Tariffs Shake Global Trade; Canada and Mexico Retaliate

In a bold move that has already sent shockwaves through international markets, US President Donald Trump formalized his prior threats by imposing sweeping tariffs on Canadian and Mexican imports.

The White House has framed the tariffs as a necessary measure to combat the influx of fentanyl and other deadly drugs into the US, citing national security concerns to utilize the International Emergency Economic Powers Act.

According to Trump, both Canada and Mexico have failed to adequately curb cartel activity and drug trafficking networks that pose an “extraordinary threat” to American public health and security.

The administration shared statistics showing that 97 percent of fentanyl seizures occur at the US-Mexico border.

While Mexico remains the dominant source of illicit fentanyl production, there has been a growing concern about Canada-based trafficking networks. Studies indicate that Canada’s domestic fentanyl production is increasing, with so-called ‘super labs’ capable of producing up to 66 pounds of the drug per week.

Trump officials argue that both nations have failed to take aggressive steps to dismantle these networks, citing weak enforcement and corruption as the primary obstacles.

Canada retaliates, Mexico vows to join the fight

The tariffs impose a 25 percent levy on all imports to the US from Canada and Mexico, a move that immediately drew harsh criticism from the governments of both affected countries.

Canadian Prime Minister Justin Trudeau called the tariffs a ‘very dumb thing to do,’ vowing to retaliate with countermeasures. ‘This is an unacceptable attack on our economy,’ he said in a speech that slammed the tariffs. ‘We will not be bullied into submission. Canada will respond swiftly and decisively.’

Canada’s response includes a reciprocal 25 percent tariff on US goods totaling C$155 billion (US$107 billion).

The first round of tariffs, affecting C$30 billion worth of goods, is set to take effect immediately, with additional measures rolling out in the coming weeks. Trudeau warned that a prolonged trade war could put up to a million Canadian jobs at risk, given the deeply intertwined nature of North American trade.

Mexican President Claudia Sheinbaum also criticized the tariffs, calling them ‘unjustified and baseless.’

She said Mexico will respond with its own set of trade restrictions, but refrained from providing specific details, stating that an official response will be outlined in the coming days.

Sheinbaum further emphasized that Mexico has made significant efforts to combat drug cartels, noting that blaming Mexico for the US fentanyl crisis ignores the role of American demand and distribution networks.

Markets slump following Trump’s tariffs

The financial impact of Trump’s announcement was immediate.

The Canadian stock market tumbled on Tuesday (March 4), with the S&P/TSX Composite Index (INDEXTSI:OSPTX) falling 1.54 percent (391.88 points) to close at 25,001.57.

The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 1.47 percent (649.67 points) to 43,191.24.

Economists have warned the tariffs could have significant consequences for both US consumers and businesses.

John Rogers, an economics professor at American International University, told the BBC that the first sector to feel the pinch will be food imports, particularly fruits and vegetables from Mexico.

He also warned that tariffs on the Canadian oil and gas could lead to higher energy costs in the US.

‘Prices could go up pretty soon,’ Rogers said, though he admitted that the exact impact of the measures put in place by Trump remains difficult to predict. ‘We are in uncharted territory.’

Ontario Premier Doug Ford has emerged as one of Canada’s most vocal critics of Trump’s tariffs, warning that they will devastate key industries, including auto manufacturing and mining. Speaking at the Prospectors & Developers Association of Canada convention, Ford pledged to fight Trump’s tariffs ‘to the death.’

‘We’re not going to roll over and get annihilated,’ Ford said during a press conference at the event. ‘If Trump wants a trade war, he’s going to get one. We will fight this dollar for dollar.’

Ford also used the opportunity to push for faster approvals for mining projects in Ontario, particularly in the Ring of Fire region, which is rich in critical minerals. He announced a new US$500 million fund to accelerate mineral processing, arguing that Ontario must become less reliant on the US market.

A trade war with no winners

While Trump insists the tariffs will protect US jobs and combat drug trafficking, experts warn they could backfire.

‘There’s no way you can win a trade war,’ Rogers maintained. ‘Everybody suffers, because everybody’s just going to wind up paying higher prices and sacrificing quality.’

Trump, however, remains undeterred. In a post on Truth Social, his social media network, he warned that if Canada retaliates, the US will respond with even higher tariffs.

‘Please explain to Governor Trudeau, of Canada, that when he puts on a retaliatory tariff on the US, our reciprocal tariff will immediately increase by a like amount!’ Trump wrote.

Trudeau and Trump are expected to a have phone meeting on Wednesday (March 5) to discuss the tariff situation.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Crypto Market Recap: Bitcoin to Hold “Special Status” in US Reserve, Pectra Test Launch Hits Snag
next post
Trump guest shares special message to president after address to Congress

Related Posts

Virka Project Sampling Returns High-Grade Mineralisation

February 25, 2025

Funding of up to C$1.3 million through Canada’s...

February 7, 2025

Crypto Market Recap: TradFi Deepens Crypto Collaboration, BlackRock...

March 16, 2025

HMW Phase 1 Funding & Offtake Secured with...

April 16, 2025

Skyharbour’s Partner Company Mustang Energy Commences Field Program...

May 27, 2025

Crypto Market Recap: FTX Starts Debt Repayment, Coinbase...

February 21, 2025

Top 5 Manganese Reserves by Country

May 2, 2025

Copper and Consequences: US Tariffs Stir Uncertainty in...

April 15, 2025

Falco Announces Extension of Certain Deadlines and Other...

February 1, 2025

Danielle DiMartino Booth: US Economy at Precipice —...

March 28, 2025

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Editors’ Picks

    • 1

      Forum Energy Metals and Global Uranium Announce Exploration Update on Drill Targeting, Northwest Athabasca Project, Saskatchewan

      January 31, 2025
    • 2

      Mega M&A: Rio Tinto-Glencore Merger Sparks Chatter

      January 28, 2025
    • 3

      Excellent 90% recoveries at Cork Tree Well & Board Update

      February 17, 2025
    • 4

      Financial Agreement signed releasing $2M grant

      January 23, 2025
    • 5

      Netflix shares soar as company reports surging revenue, tops 300 million subscribers

      January 23, 2025
    • 6

      Cyclopharm Signs US Agreement with HCA Healthcare for Technegas®

      January 23, 2025
    • 7

      FDA officially authorizes Zyn nicotine pouches for sale following health review

      January 23, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: daytradingreports.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 daytradingreports.com | All Rights Reserved