Trump Plans 25% Tariff on Canada, Mexico Imports

President Trump announced plans to impose a 25% tariff on imports from Canada and Mexico, with the duties set to take effect Tuesday at 12:01 am ET, despite significant opposition from Wall Street and congressional leaders. Canadian officials acknowledged the president's authority to implement these tariffs, while Senate Democrats, led by Chuck Schumer, pledged to introduce legislation to reclaim some of Congress's tariff powers. Goldman Sachs anticipates that the tariffs may be short-lived, suggesting that the administration is using them as a negotiating tool rather than a permanent measure. Market volatility has already been observed in response to the tariff announcement, with economic analysts warning of potential greater instability if the tariffs remain. The Canadian government has criticized the rationale behind the tariffs, arguing that the official justification related to fentanyl is misleading. As negotiations are set to begin, uncertainty looms over the actual impact of these tariffs on the economy and trade relationships.