Trump's Tariffs Trigger Economic Tensions

President Donald Trump announced 25% tariffs on imports from Mexico and Canada, sparking fears of a trade war in North America and causing financial markets to tumble. Both Mexican peso and Canadian dollar fell, while Trump also plans to increase tariffs on Chinese imports to 20% amid fentanyl concerns.

In a move shaking global markets, U.S. President Donald Trump declared new tariffs on Mexican and Canadian goods, escalating fears of a North American trade war. The announcement made on Monday sent U.S. stock markets into a frenzy, causing substantial losses by late trading.

Slated to take effect from Tuesday, these 25% tariffs on more than $900 billion worth of goods threaten the interconnected North American economy. In response, Mexico and Canada have promised decisive countermeasures, although details remain unclear. Economists warn of severe economic repercussions, particularly within the automotive sector.

Simultaneously, Trump vowed to elevate existing tariffs on all Chinese imports to 20%, attributing the decision to China's insufficient action against fentanyl shipments. Amidst this controversy, market indices took a significant hit, with the Dow Jones, S&P 500, and Nasdaq Composite plunging dramatically.

(With inputs from agencies.)