Trump's Tariff Turmoil: Markets Reeling Amidst Trade Tensions

U.S. President Donald Trump announced a 25% tariff on goods from Mexico and Canada, intensifying fears of a North American trade war. This move has caused significant market turmoil and concerns over economic impacts. The tariffs, affecting over $900 billion of imports, are set to begin Tuesday.

U.S. President Donald Trump's declaration of a 25% tariff on imports from Mexico and Canada has stirred fears of a trade conflict, shaking financial markets. On Monday, Trump's announcement resulted in a sharp downturn in U.S. stock markets. The Mexican peso and Canadian dollar also saw declines.

Trump stated that the tariffs are intended to push for domestic production within the U.S. and mentioned the inability to reach a deal that could prevent these tariffs. The tariffs are scheduled to be enforced starting 12:01 a.m. EST Tuesday, which will cover over $900 billion worth of goods.

Canada and Mexico have pledged to respond to these tariffs with their own measures. Economic analysts express concern about the negative consequences on the North American economy, especially the automotive sector. The move is perceived as part of a broader economic strategy by Trump, which includes increasing tariffs on Chinese imports to combat drug trafficking issues.

(With inputs from agencies.)