Live: Trump tariffs on Canada, Mexico paused for a month, China duties set to take effect Tuesday
Updated Mon, February 3, 2025 at 4:30 PM CST 1 min read
US President Donald Trump is aiming to reshape the country’s trade policy using one of his preferred economic tools: tariffs.
Over the weekend, Trump announced tariffs to take effect beginning on Tuesday — 25% on imports from Canada and Mexico, and 10% on imports from China.
But conversations with the leaders of both Mexico and Canada yielded apparent progress. : Trump delayed tariffs on both countries by one month. Trump is also set to speak with Chinese President Xi Jinping this week, though those tariffs are still set to take effect on Tuesday.
The trade posturing will have ramifications for the US’s relationships with some of its closest allies, as the targeted countries have already formulated retaliatory measures. They could also have ramifications for inflation, with the potential to push prices higher. That, in turn, could influence where the Federal Reserve takes interest rates in the coming months — and years.
Read more: What are tariffs, and how do they affect you?
Yahoo Finance will chronicle the latest news and updates from the threats to the eventual policy.LIVE 32 updates
- Today at 4:30 PM CSTGrace O’DonnellHow much tariffs would cost US householdsYahoo Finance’s Jordan Weissman reports that while Donald Trump might already be scaling back his trade war, it could still put a small dent in US consumers’ wallets.Ahead of the announcement that the US would pause tariffs on Canada for 30 days, the Yale Budget Lab estimated 25% tariffs on Canadian imports and a 10% additional tariff on Chinese goods would cost American households about $690 each.https://flo.uri.sh/visualisation/21452041/embed?auto=1That figure assumes Canada retaliates with tariffs of its own, according to analysis first shared with Yahoo Finance. If it doesn’t, the cost would be $648 per household. Tariffs on Canada would also shrink the US economy by $875 billion, or 0.2% of gross domestic product.And when including tariffs on Mexican goods, import taxes on all three countries would cost about $1,245 per household while reducing GDP by $1.4 billion.
- Today at 3:34 PM CSTGrace O’DonnellStocks sink as tariffs remained in focus for investorsStocks slipped on Monday but pared early losses as investors digested a spate of tariff headlines, including news that President Trump will delay tariffs on goods from Mexico by one month.Here’s a recap of a volatile day in markets:
- The tech-heavy Nasdaq Composite (^IXIC) closed down 1.2%, recouping a chunk of its earlier losses. Meanwhile, the S&P 500 (^GSPC) fell roughly 0.7% and the Dow Jones Industrial Average (^DJI) fell 0.3%.
- Today at 2:24 PM CSTGrace O’DonnellTyson plans for short-term disruptions but doesn’t expect ‘significant impact’ on supply chainsYahoo Finance’s Brooke DiPalma reports:Tyson Foods (TSN) CEO Donnie King told Yahoo Finance the company does not expect to «see significant impact» and planned for tariffs within its annual adjusted operating income forecast.The meat supplier raised its forecast by $100 million to a range of $1.9 billion to $2.3 billion, up from a prior $1.8 billion to $2.2 billion.NYSE – Nasdaq Real Time Price•USDTyson Foods, Inc.(TSN)Follow57.74+1.25+(2.21%)At close: 4:00:01 PM EST57.00-0.74(-1.28%)After hours: 7:46:12 PM EST«We’ve planned for tariffs, for immigration and any market dynamics, and have baked that into our guidance for the balance of the year,» King told Yahoo Finance over the phone.He added, «Our teams have engaged in contingency planning to minimize disruptions or impacts to the supply chain for some time … There’ll be short-term disruptions, but it will equilibrate.»Read more here.
- Today at 2:04 PM CSTGrace O’DonnellTrump’s tariffs add risk to chips and consumer stocksAs stocks bounced back from session lows Monday following Trump’s delay of tariffs on Mexico, Yahoo Finance’s Seana Smithreports on what Wall Street is saying this means for the administration’s broader trade strategy.In a note to clients, Goldman Sachs’ David Kostin wrote that rising policy uncertainty will likely weigh on equity valuation multiples. He suggested that the recent uncertainty increase should reduce the forward 12-month price-earnings multiple by about 3%.The Tech sector (XLK) is among the most at risk of a geopolitical escalation between the US and China, as analysts warn of a «pretty significant impact» on demand for products like PCs, smartphones, and consumer electronics.SNP – Delayed Quote•USDS&P 500 (^GSPC)Follow5,994.57-45.96(-0.76%)At close: 4:53:31 PM EST^GSPCXLKXLYThat signals greater downside risk for names like Qualcomm (QCOM), Qorvo (QRVO), Skyworks (SWKS), Intel (INTC), and Nvidia (NVDA), KeyBanc’s John Vinh warned.Goldman Sachs’ analysis of S&P 500 companies with explicit revenue exposure to Greater China of 25% or more includes many of those tech names, along with other consumer-facing firms, including Las Vegas Sands (LVS), Wynn Resorts (WYNN), and Lam Research (LRCX).Read more here.
- Today at 1:38 PM CSTGrace O’DonnellAuto stocks slip on fears Trump tariffs will harm industryYahoo Finance’s Pras Subramanian reports:Automaker stocks slipped on Monday following President Trump’s move to impose tariffs on goods coming from Canada and Mexico.Shares of the Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), as well as rivals Toyota (TM) and Honda (HMC), slipped on Monday but pared losses following the Mexico tariff delay. Even Tesla (TSLA), despite not making any cars in Canada or Mexico, saw its stock fall, likely due to the fact it uses parts from those regions for its cars.NYSE – Nasdaq Real Time Price•USDGeneral Motors Company (GM)Follow47.90-1.56(-3.15%)At close: 4:00:02 PM EST49.08+1.18+(2.46%)After hours: 7:52:16 PM ESTGMFSTLACurrently, Canada produces around 10% of cars sold in the US (approximately 1.5 million units), with Mexico supplying close to 20%, according to a report from TD Economics.GM, which reported earnings last week, said it was working to minimize the impact.“From a Mexico perspective, we do build trucks in Mexico and in Canada and in the United States, and so we have the capacity in the United States to shift some of that,” GM CEO Mary Barra said on the company’s earnings call. “We also sell trucks globally, and so we can look at where the international markets are being sourced from. So there’s plays that we can do on that perspective to minimize the impact.”Read more here.
- Today at 12:30 PM CSTGrace O’DonnellHow tariffs on Canada, Mexico, and China could affect US grocery billsPresident Trump’s expected tariffs on Mexico, Canada, and China could soon affect Americans’ grocery bills.Yahoo Finance’s Brooke DiPalma reports that under Trump’s proposed 25% tariffs on goods from Mexico and Canada and 10% tariffs on Chinese imports, US consumers can expect to pay an average tax increase of more than $800 this year, according to estimates from TaxFoundation.org.Some items that could see quick price increases include tomatoes, avocados, beer, and liquor from Mexico as well as grains and potatoes from Canada. Tariffs on Canada and China are expected to go into effect on Tuesday, while tariffs on goods from Mexico have been delayed until March.»A lot of the fruit that comes up [from Mexico] very quickly could change price,» Telsey Advisory Group’s Joe Feldman told Yahoo Finance. «All the commodity items … fruits, vegetables, eggs, proteins, and milk tend to see quick pass-through of price increases or decreases, given the supply-demand dynamics and rapid turnover in those items.»This could spell challenges for food stocks such as Mission Produce (AVO) and Constellation Brands (STZ), which source a significant amount of their products from Mexico.Read more here.
- Today at 12:10 PM CSTGrace O’DonnellNew Englanders warned of higher heating bills if Trump enacts tariffs on CanadaYahoo Finance’s Janna Heron reports:Irving Oil warned New England customers over the weekend that President Trump’s tariffs on Canada.
Today at 10:11 AM CSTBen WerschkulTrump says tariffs on Mexico paused for a monthPresident Donald Trump and Mexican President Claudia Sheinbaum announced a breakthrough in their talks Monday and said they were successful in delaying a new wave of 25% duties on America’s southern neighbor by a month.»It was a very friendly conversation,» Trump wrote on Truth Social, confirming the Mexican president’s announcement moments earlier. Both also confirmed that Mexico would send 10,000 additional troops to the US-Mexico border.Trump added that Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Commerce secretary nominee Howard Lutnick will lead the talks in the coming weeks around the issues of drugs and migration that led Trump to impose these duties.But the fate of promised 25% duties against Canada and 10% duties on China remain uncertain Monday morning.In another post on Monday, Trump said he spoke with Canadian Prime Minister Justin Trudeau and would talk again at 3 p.m. ET. But he offered a much more aggressive tone and also raised new issues such as Canada’s limits on the US banking system, writing, «What’s that all about?»
Mexico’s President Claudia Sheinbaum confirms that the US has agreed to pause the start of tariffs on Mexican goods for one month after talks with her counterpart, Donald Trump, during her daily press conference in Mexico City on Feb. 3, 2025. (YURI CORTEZ/AFP via Getty Images) · YURI CORTEZ via Getty Images
Today at 8:42 AM CSTBrett LoGiuratoTrump says he has talked to Trudeau and will speak with him again on MondayUS President Donald Trump on Monday said he has spoken with Canadian Prime Minister Justin Trudeau — and he said the two leaders would speak again at 3 p.m. ET on Monday.Trump revealed this in a post on his Truth Social platform in which he also took general shots at the US’s neighbor to the north.US duties of 25% on Canadian imports — with the exception of a 10% levy on oil imports — are set to take effect Tuesday. Trudeau has announced his country will, in turn, place a 25% tariff on US imports, which could affect around $107 billion of a variety of American goods.
- Today at 8:39 AM CSTGrace O’DonnellMarket sell-off shows investors ‘underpricing’ Trump’s promised tariffsYahoo Finance’s Josh Schafer reports:Investors didn’t take President Donald Trump at his word, and now markets are selling off in reaction to his move to impose hefty tariffs on Canada, Mexico, and China.Nasdaq 100 futures (NQ=F) dove more than 1.7% Monday, leading the declines among the three major indexes but paring losses notched earlier in the morning. S&P 500 futures (ES=F) spiraled roughly 1.5%, and futures attached to the Dow Jones Industrial Average (YM=F) tumbled about 1.3%, or around 580 points.CME – Delayed Quote•USDNasdaq 100 Mar 25(NQ=F)Follow21,560.75+155.75+(0.73%)As of 7:43:48 PM EST. Market Open.NQ=FES=FYM=F«While we have not had tariffs baked into our own US equity market outlook, we have been concerned that many financial market participants have been underpricing the risk that they were more than a negotiation tool,» RBC Capital Markets head of US equity strategy Lori Calvasina wrote in a note to clients on Sunday.Read more here.
- Today at 8:35 AM CSTGrace O’DonnellThere are few levers with the power to push back on Trump’s tariff plansFrom Yahoo Finance’s Ben Werschkul:For all the norm-shattering of Donald Trump’s Saturday move to levy tariffs on America’s top three trading partners, few signs have emerged in the hours since that any force outside of the president himself will be able to reverse his decision if he is determined to stay the course.While rhetorical opposition to the move is evident from Wall Street to Capitol Hill, any challenges in political or legal arenas are expected to be an uphill climb after decades of tariff authority migrating to the executive branch.Perhaps the key open question is whether market volatility, which was clearly evident Monday morning, could be the thing that can change Trump’s mind now or if a sell-off becomes extended.Cboe Indices•USDCBOE Volatility Index(^VIX)Follow18.62+2.19+(13.33%)At close: 3:15:01 PM CSTCapitol Economics wrote in a Monday note that «if the tariffs stick around, let alone escalate, this morning’s market moves may be just the start of greater volatility.»Trump has long used the markets as a barometer of success, but it’s a metric he says he is willing to discount, at least for now.Read more here.
- Sun, February 2, 2025 at 10:17 PM CSTRian HowlettTrump steps up tariff threats against European Union after tanking US stock futures.US President Donald Trump engaged in fresh rhetoric regarding tariffs against the European Union following the start of a trade war with Canada, Mexico, and China that saw futures plummet.Bloomberg reported that Trump has stated that tariffs on the European Union “will definitely happen,” citing a large trade deficit with the bloc.“They don’t take our cars, they don’t take our farm products,” Trump said of the perceived imbalance.On the tariff train, Trump is preparing to make calls to Canadian Prime Minister Justin Trudeau and the Mexican leadership Monday morning after announcing 25% levies on the US’s northern and southern neighbors.Trump has said he expects the calls to be simple enough. “We put tariffs on. They owe us a lot of money, and I’m sure they’re going to pay.” Currently, there is an indication of financial retaliation from Canada ahead of the call between the world leaders.Trump’s hard-line stance has led to a reduction of trust in the idea of an economic ceasefire. With fears of a North American trade war spreading across the world, US stock futures tanked, the peso fell to its lowest level against the dollar in almost three years, and the Canadian dollar sank to its weakest point since 2003. The euro dropped on Trump’s renewed threats while the dollar rose.ICE Futures – Delayed Quote•USDUS Dollar Mar 25(DX=F)Follow108.30-0.58(-0.53%)As of 4:59:52 PM EST. Market Open.DX=F6M=FEURUSD=X
Sun, February 2, 2025 at 6:58 PM CSTBrett LoGiuratoStock futures plummet as Trump’s tariffs rattle marketsAs our stock market live blog details:Nasdaq futures (NQ=F) lost 2.2%, leading the way down. S&P 500 futures (ES=F) spiraled 1.6%, and futures attached to the Dow (YM=F) stumbled 1.1%, or around 500 points.The US dollar (DX=F) index jumped, along with the price of crude oil (CL=F).CME – Delayed Quote•USDE-Mini S&P 500 Mar 25 (ES=F)Follow6,052.50+30.25+(0.50%)As of 7:43:57 PM EST. Market Open.ES=FNQ=FYM=FThe early reaction to Trump’s sweeping tariffs is just taking shape. Follow along here.
- Sun, February 2, 2025 at 1:39 PM CSTWall Street not loving Trump’s tariffs so farYahoo Finance Executive Editor Brian Sozzi has some early reactions to President Trump’s tariff plans from Wall Street movers and shakers.He pointed to Trump’s Truth Social post suggesting there may or may not be «some pain» as a result of the tariffs — economists and strategists, it appears, are in agreement.»Our economists expect that fully implemented tariffs would have meaningful consequences,» wrote the Morgan Stanley Public Policy Research Team.Evercore ISI China Strategist Neo Wang noted that unveiling the tariffs on China during the Lunar New Year was also less than ideal, and suggested another factor may be in play: TikTok’s status in the US.»Timing of Trump’s tariff announcement likely offended both Chinese government and people because the country is still on Chinese New Year holiday. Moreover, news of the tariff slap arrived in China in the morning of February 2, coinciding with this lunar year’s 5th day, which is the day for most Chinese to worship their God of Wealth with offerings and wishes. Unfortunately, Trump stole the attention with his wealth-destructing tariffs, an inauspicious development indeed. This first 10% tariff seems at least aimed to gain an upper hand in the negotiation on TikTok, or force Beijing to the table if negotiation hasn’t started.»Read more here.
- Sun, February 2, 2025 at 10:32 AM CSTTrump says Americans may feel ‘some pain’ from tariffs but that it would be ‘worth the price’The morning after signing tariffs on Canada, Mexico, and China, President Trump said in a social media post that Americans might feel «some pain» but that it would be worth the price.»THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID,» Trump wrote on his Truth Social platform.A post from President Trump on his Truth Social platform Feb. 2, 2025In a separate post to Truth Social, Trump claimed that without subsidies from the US, Canada «ceases to exist.» He also reiterated his desire that the country become the 51st US state, which would mean «much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”Canadian Prime Minister Justin Trudeau said Saturday that Canada will place 25% counter-tariffs of CAD $155 billion (USD $107 billion) worth of American-made products, starting Tuesday.Read more: New Trump tariffs on Mexico, Canada and China set to start Tuesday
- Sun, February 2, 2025 at 7:51 AM CSTCanada, China condemn Trump tariffsAfter President Trump finally signed his long-anticipated tariffs on Saturday, the reaction was swift.Canadian Prime Minister Justin Trudeau spoke directly to Americans in a speech Saturday night, Bloomberg reported:“From the beaches of Normandy to the mountains of the Korean peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” Trudeau said.“Yes, we’ve had our differences in the past, but we’ve always found a way to get past them. As I’ve said before, if President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us.”Canada will place 25% counter-tariffs on CAD $155 billion (USD $107 billion) worth of American-made products, starting Tuesday.
Canada’s Prime Minister Justin Trudeau speaks during a news conference February 1, 2025 on Parliament Hill in Ottawa, Canada. (Photo by DAVE CHAN/AFP via Getty Images) · DAVE CHAN via Getty ImagesChina did not immediately put its own tariffs into effect, but its Commerce Ministry said Sunday it would file a “lawsuit” against the US at the World Trade Organization. Bloomberg reported:Beijing will “take corresponding countermeasures to firmly safeguard its own rights and interests,” it added, without elaborating.“The practice of imposing tariffs is not constructive and will inevitably affect and undermine the future cooperation between the two sides on drug control,” China’s Foreign Ministry said in a separate statement.Read more: New Trump tariffs on Mexico, Canada and China set to start Tuesday
Sat, February 1, 2025 at 4:25 PM CSTMichael B. KelleyNew Trump tariffs on Mexico, Canada and China are signedYahoo Finance’s Ben Werschkul reports:President Donald Trump moved forward Saturday with his plans for tariffs on Canada, Mexico and China, ending a guessing game about how aggressively he would move to penalize America’s three largest trading partners.»Tariffs on imports from Canada, Mexico, and China are SIGNED!,» a Trump official posted to social media.The tariffs — as Trump has promised since after his election win — will be 25% duties on Canada and Mexico and 10% on China over issues of fentanyl and illegal migration, according to a White House summary of the actions.Read more here.
- Sat, February 1, 2025 at 1:11 PM CSTCanada ready to impose retaliatory tariffs and rethink its relationship with the USCanada is bracing for President Trump’s promised tariffs. As of mid-afternoon on Feb. 1, the White House had still not announced any official details, but as Bloomberg reports, Canadian officials aren’t waiting around:Canada is the biggest foreign energy supplier to the US, and the two countries have developed a tightly integrated network of pipelines and processing facilities in recent decades. Oil refineries in the US Midwest are especially dependent, having been built to process the heavy crude that’s most readily available from Alberta, with little ability to access alternative supplies.The spat is prompting Canadian officials to talk with greater urgency about diversifying away from the US, and [Natural Resources Minister Jonathan] Wilkinson has an eye on a future in which Canada has ready export alternatives to its wealthy neighbor.“People say ‘Well, this could be just a short-term thing,’ and maybe it is, but it also could be a long-term, structural thing,” he said.Read more hereFor charts that tell the story of Trump, tariffs, and markets, download YF Chartbook Vol. 4.
- Sat, February 1, 2025 at 8:18 AM CSTTop business leaders are bracing for the worstYahoo Finance executive editor Brian Sozzi spoke to top business leaders about how they’re preparing for the expected tariffs from President Trump.»We’ve done a lot of scenario planning and we know the levers that we can pull to minimize any impact,» said General Motors Chair and CEO Mary Barra.IBM CFO Jim Kavanaugh says «stabilization right now is prudent.» And HP Inc. CEO Enrique Lores says «we don’t know exactly what tariffs are going to be put in place. But we have been working on this for several quarters.»Read more here.For charts that tell the story of Trump, tariffs, and markets, download YF Chartbook Vol. 4.
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