President Donald Trump announced on Thursday that tariffs of 25% on Mexican and Canadian goods are scheduled to take effect on March 4. Additionally, he threatened to impose an extra 10% tariff on Chinese imports on the same date. The decision comes as part of Trump's efforts to address the issues of illegal migration and the flow of fentanyl into the United States.
In a post on Truth Social, Trump expressed his concerns about the high levels of drugs entering the country from Mexico and Canada, labeling it as unacceptable. He emphasized the need to combat this problem and linked it to the proposed tariffs on goods from America's neighboring countries.
Trump stated, 'We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs scheduled to go into effect on March fourth will, indeed, go into effect as scheduled.'
While the 25% tariffs on Mexico and Canada were already in place, the additional 10% tariffs on Chinese imports were a new development. This move follows the initial 10% tariff imposed on Chinese goods earlier this month.
Following Trump's comments, futures on the Dow turned negative on Thursday morning, dropping 90 points after initially trading higher. However, futures linked to the S&P 500 and Nasdaq 100 remained in positive territory, buoyed by the strong earnings reported by Nvidia on Wednesday.
