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U.S. forecast to enter recession after Trump crashes markets with tariffs on Canada, China and Mexico: Live - INDEPENDENT UK
BY Oliver O'Connell,Joe Sommerlad and Ariana Baio
Donald Trump’s introduction of his long-threatened 25 percent trade tariffs on Mexico and Canada has caused global stock markets to drop sharply, with the Dow Jones, S&P 500 and Nasdaq all falling.
Investors, fearful of a trade war erupting, had hoped the president might relent in his promise to penalize imports from the nation’s two biggest trading partners.
Instead, Trump told reporters at the White House on Monday that there was "no room left for Mexico or for Canada,” adding: “The tariffs, they’re all set. They go into effect tomorrow.”
The president also said that he would impose an extra 10 percent tariff on China, on top of the previous 10 percent tariff he introduced last month, with Beijing already retaliating.
The unease has already led to warnings that the U.S. could be heading for recession, with the Atlanta Fed’s GDPNow model estimating real GDP growth for the first quarter of 2025 at -2.8 percent, down from +3.9 percent just four weeks ago.
Trump has meanwhile moved to suspend aid to Ukraine after his feud with Volodymyr Zelensky escalated.
He will deliver the first joint congressional address of his second presidency on Tuesday evening.
Key Points
Stocks tumble after Donald Trump kills hope for last-minute tariff deal with Mexico and Canada
Trump halts aid to Ukraine after White House clash with Zelensky
JD Vance says U.S. working on Ukraine peace plan ‘with the Russians’
