This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/cn48q3150dxo

The article has changed 11 times. There is an RSS feed of changes available.

Version 5 Version 6
US tariffs on Canada and Mexico will go ahead on Tuesday, Trump says Stock markets sink as Trump confirms tariffs on Canada, Mexico and China
(about 1 hour later)
Watch: ‘I’d be pissed if I was Canadian’ - Trump supporters on 51st state jibe President Donald Trump is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, saying that time had run out to reach a deal.
President Donald Trump has said 25% US tariffs against Canada and Mexico will go ahead on Tuesday. US stock markets sank in response to the measures, which have been threatened since earlier this year and are due to go into effect on Tuesday.
The US president threatened to impose the tariffs - which are a tax on imports - on his two neighbours on 4 March, in response to what he says is the unacceptable flow of illegal drugs and undocumented migrants into the US. An additional 10% tariff on Chinese imports is also expected to come into force, leaving all three of America's top three trade partners facing significantly higher trade barriers than just a few weeks ago.
"No room left for Mexico or for Canada," Trump said at the White House on Monday. "The tariffs, you know, they're all set. They go into effect tomorrow.""No room left for Mexico or for Canada," Trump said at the White House on Monday. "The tariffs, you know, they're all set. They go into effect tomorrow."
"What they'll have to do is build their car plants, frankly, and other things, in the United States, in which case they have no tariffs," he added. Trump threatened to impose the tariffs - which is a tax that is added to a product when it enters a country - on Canada, Mexico and China in response to what he says is the unacceptable flow of illegal drugs and undocumented migrants into the US.
Markets dropped after Trump confirmed the tariffs on America's two biggest trading partners would be moving forward. He had already imposed a 10% tariff on Chinese exports to the US last month, meaning goods from the country now face a levy of at least 20%.
A 10% tariff on Chinese imports is also expected to be implemented after the US accused Beijing of not doing enough to stop the flow of fentanyl into the US. All three countries have said they will retaliate against the US in response to the tariffs, raising the prospect of a widening trade war.
This means that if brought into effect, Chinese exports to the US will face a levy of at least 20%, following a 10% tariff that took effect a month ago. Canada's Foreign Minister Melanie Joly said the tariffs are "an existential threat to us" with "thousands of jobs in Canada at stake".
All three major indexes were headed to close down more than 2%. The Dow Jones Industrial Average dropped 2%, the S&P 500 sank more than 2% and the Nasdaq fell more than 3%. She said Canadian officials have had "constructive conversations" with the Trump administration to try to avert the 25% levies but warned "we are ready with counter tariffs".
Chinese state media claims leaders in Beijing have prepared a series of countermeasures to happen on the same day, raising the prospect of an all-out trade war between the world's top two economies.
China's state-run Global Times newspaper said the countermeasures would probably target US agricultural and food products.
Analysts believe Beijing still hopes to avoid an all-out trade war and negotiate a truce with the Trump administration, but so far there has been no sign of a deal between the two economic giants.
Trump has long maintained that tariffs are a useful tool to correct trade imbalances and protect US manufacturing.Trump has long maintained that tariffs are a useful tool to correct trade imbalances and protect US manufacturing.
How does fentanyl get into the US? He has largely dismissed concerns that the measures risk economic damage in the US, despite the close ties, especially in North America, where businesses have enjoyed decades of free trade.
What are tariffs and why is Trump using them? "What they'll have to do is build their car plants, frankly, and other things, in the United States, in which case they have no tariffs," he added.
How Japan sparked Trump's 40-year love affair with tariffs The three major indexes in the US sank after Trump's comments. The Dow Jones Industrial Average ended the day down 1.4%, the S&P 500 sank 1.75% and the Nasdaq fell 2.6%.
Speaking on Sunday Morning Futures on Fox News, Commerce Secretary Howard Lutnick said: "There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate." Watch: Trump supporters on president's 51st state jibe
Officials from Canada and Mexico had been in Washington in recent days, trying to avoid the tariffs.
Mexico's president, Claudia Sheinbaum, appeared to send a message to Trump earlier on Monday when she said at a public event in the city of Colima that "Mexico has to be respected".
"Co-operation [and] co-ordination, yes, subordination, never."
Canadian Prime Minister Justin Trudeau said on Sunday, from a summit on Ukraine in London, that Canada was "not an issue" as a source of illegal fentanyl in the US.
Only 1% of fentanyl seized in the US is thought to come from Canada, according to US data.
The Canada Border Services Agency (CBSA) says it has been "surging" its efforts to tackle fentanyl crossing into the US.
Canada has repeatedly said tariffs will harm both economies but added that it will defend itself if they happen.Canada has repeatedly said tariffs will harm both economies but added that it will defend itself if they happen.
Last month, it prepared a list of $30bn (£23.6bn) worth of American goods it said it would levy in response to US tariffs. Items on that list included everyday goods like pasta, clothing and perfume.
Canadian Internal Trade Minister Anita Anand met officials in Washington in recent days and said over the weekend there will be a response.Canadian Internal Trade Minister Anita Anand met officials in Washington in recent days and said over the weekend there will be a response.
"We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country's economy," she told CBC News."We are steady at the wheel. We are prepared for any eventuality, but we will at every turn defend our country's economy," she told CBC News.
Last month, Canada had prepared a list of $30bn (£23.6bn) worth of American goods it said it would levy in response to US tariffs. Items on that list included everyday goods like pasta, clothing and perfume. How does fentanyl get into the US?
What are tariffs and why is Trump using them?
The Canada Border Services Agency (CBSA) says it has been "surging" its efforts to tackle fentanyl crossing into the US. How Japan sparked Trump's 40-year love affair with tariffs
Only 1% of fentanyl seized in the US is thought to come from Canada, according to US data.
Canadian Prime Minister Justin Trudeau said on Sunday, from a summit on Ukraine in London, that Canada was "not an issue" as a source of illegal fentanyl in the US.
Watch: Canada plans 'strong' response if Trump imposes tariffs, says TrudeauWatch: Canada plans 'strong' response if Trump imposes tariffs, says Trudeau
Mexico's president, Claudia Sheinbaum, appeared to send a message to Trump after the Lutnick interview when she said at a public event in the city of Colima that "Mexico has to be respected". China's state-run Global Times newspaper said that Beijing had prepared countermeasures, which would probably target US agricultural and food products.
"Co-operation [and] co-ordination, yes, subordination, never."
President Trump has also announced a 25% charge on all steel and aluminium imports, which is meant to come into effect on 12 March.President Trump has also announced a 25% charge on all steel and aluminium imports, which is meant to come into effect on 12 March.
In addition, he has threatened to impose custom "reciprocal" tariffs on individual countries, as well as 25% tariffs on the European Union.In addition, he has threatened to impose custom "reciprocal" tariffs on individual countries, as well as 25% tariffs on the European Union.