The big stick has fallen! The White House announces a 25% tariff on Canada and Mexico
The White House announced a 25% tariff on Canada and Mexico, and the market reacted quickly, with the Dow Jones Industrial Average falling over 330 points. The White House has not yet released a specific tariff list and emphasized that there will be no large-scale exemptions. Economists are concerned that this policy may drive up prices, especially as inflation has just begun to ease. Federal Reserve officials are closely monitoring the policy's impact and assessing the economic response
According to Zhitong Finance APP, after several weeks of intense speculation, the White House officially confirmed on Friday that U.S. President Donald Trump will implement large-scale tariffs on major trading partners this weekend.
White House Press Secretary Karoline Leavitt stated that the Trump administration will impose a 25% tariff on Canada and Mexico.
The White House has not yet released a specific tariff list, only indicating that the complete document will be made public on Saturday.
Following the announcement, the market reacted swiftly. The Dow Jones Industrial Average fell more than 330 points, and both the S&P 500 Index and the Nasdaq Composite Index also turned negative, despite all three major indices showing good gains earlier in the day. In response, Leavitt stated, "The President has delivered on his promise."
Earlier reports suggested that some products might be exempted and that the tariffs could be delayed until March 1, but the White House has denied this, emphasizing that there will be no large-scale exemptions.
Economists are concerned that this tariff policy may push prices up again just as inflation was beginning to ease.
Data released by the U.S. Department of Commerce on Friday showed that the core personal consumption expenditures price index, which the Federal Reserve closely monitors, rose 2.6% year-on-year in December. This figure was slightly better than market expectations but still reflects the presence of price pressures.
Federal Reserve officials are closely monitoring the impact of fiscal policy. Federal Reserve Governor Michelle Bowman stated, "Understanding the specifics of the policy and how it is implemented, and assessing how the economy responds to these changes, will be crucial."
Chicago Federal Reserve President Charles Evans pointed out in an interview that the key question is whether these tariffs are a one-time event or will provoke retaliatory measures from other countries