President Donald Trump announced Monday that 25% tariffs on imports from Canada and Mexico will take effect Tuesday, despite efforts by both nations to avoid them. “No room left for Mexico or Canada,” Trump said, emphasizing that the tariffs are set to proceed. He argued that tariffs protect U.S. jobs and prevent companies from relocating abroad.
Canada and Mexico are preparing for the economic impact. Canadian Foreign Minister Melanie Joly stated, “We’re ready,” while Mexico’s President Claudia Sheinbaum confirmed her country has contingency plans. Mexico has also increased anti-drug efforts and border security to meet U.S. demands.
The announcement caused U.S. stock markets to tumble, with the Dow, S&P 500, and Nasdaq all dropping over 1.5%. Industries like spirits face significant risks, with potential job losses and retaliatory tariffs. The Distilled Spirits Council warned that U.S. spirits exports could suffer.
Trump also signed an order imposing additional 10% tariffs on Chinese imports, citing concerns over trade deficits and currency devaluation. He criticized past U.S. trade policies, including those under Ronald Reagan, for failing to protect American industries. Trump urged manufacturers to build plants in the U.S. to avoid tariffs
