Trump tariffs live updates: White House threatens even more tariffs on Canada as trade war escalates

Trump threatened to raise Canada tariffs again after Canadian Prime Minister Justin Trudeau retaliated against new U.S. levies.

“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” Trump said on a social media post Tuesday.

— Yun Li

Drivers in the Northeast will see higher gasoline prices due to Trump’s tariffs faster than the rest of the U.S., energy expert Patrick de Haan said.

Gas prices will rise 20 to 40 cents per gallon by mid-march in Maine, Rhode Island, Connecticut, Vermont, New Hampshire, Massachusetts and Upstate New York, according to de Haan, head of petroleum analysis at GasBuddy.

This is because a significant portion of the region’s fuel comes directly from the Irving Oil refinery in Saint John, New Brunswick, the analyst said. Motorists should expect to pay an additional $3 to $6 to fill a typical 15-gallon tank, he said.

Many refineries in the U.S. are dependent on heavy crude imports from Canada, and they cannot simply switch to the light crude produced domestically. The pipelines that serve the Rockies, Midwest and Great Lakes run north to south so Canadian imports aren’t easily displaced by crude from Texas, de Haan said.

Refiners have invested billions in specialized equipment to process Canadian crude, the analyst said. Shifting the U.S. system to rely on domestic supply would be an expensive, multiyear infrastructure investment, de Haan said.

— Spencer Kimball

Canadian Prime Minister Justin Trudeau accused President Trump of appeasing Russian President Vladimir Putin while launching a trade war against the closest ally of the U.S.

“The United States launched a trade war against Canada. Their closest partner and ally, the closest friend,” Trudeau said. “At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”

Trudeau said Trump’s claim that the tariffs are designed to force a crackdown on fentanyl trafficking is “completely bogus.” The prime minister said Trump wants to see a total collapse of the Canadian economy, in order to make it easier to annex Canada.

“We will never be the 51st state, but he can do damage to the Canadian economy, and he’s started this morning, but he is rapidly going to find out as American families are going to find out, that that’s going to hurt people on both sides of the border.

— Spencer Kimball

Canadian Prime Minister Justin Trudeau dismissed President Trump’s justification for imposing tariffs as “totally false.”

Trump has repeatedly accused Canada of not doing enough to help stop fentanyl trafficking across the northern border. Commerce Secretary Howard Lutnick said Tuesday that Trump’s tariffs are part of a “drug war,” not a trade war.

Trudeau, in a direct appeal to the American people, said “the legal pretext your government is using to bring in these tariffs is that Canada is apparently unwilling to help in the fight against illegal fentanyl. Well, that is totally false.”

The prime minister said the U.S.-Canadian border is “already safe and secure.” Less than one percent of fentanyl flow and less than one percent of illegal crossings into the U.S. come from Canada, Trudeau said.

“Your government has chosen to put American jobs at risk,” Trudeau said. The prime minister also directly addressed Trump in his remarks.

“It’s not in my habit to agree with The Wall Street Journal. Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau said.

— Spencer Kimball

On top of retaliatory tariffs on some U.S. goods, China also introduced other countermeasures, including halting sales to 15 American companies, according to the Ministry of Commerce.

Beijing said Tuesday that it is restricting 15 U.S. companies’ ability to buy products from China except with special permission. China also raised duties on certain U.S. energy imports.

— Yun Li

Ontario will impose a 25% tax on electricity it exports to 1.5 million homes in Minnesota, Michigan and New York in retaliation to Trump’s tariffs, the province’s leader Doug Ford told The Wall Street Journal.

Ford warned that Ontario’s energy producers would cut off exports to the U.S. altogether if Trump imposes more tariffs on April 2.

“President Trump underestimates the Canadian people,” Ford told the Journal in an interview. He also threatened to stockpile the nickel that Ontario’s miners export to the U.S. and sell it to other markets.

“He’s going to wake up real quickly about our critical minerals,” Ford told the Journal.

— Spencer Kimball

Canadian Prime Minister Justin Trudeau announced Tuesday retaliatory tariffs on U.S. imports to Canada after the U.S. imposed levies of its own. He said a 25% duty on CA$30 billion worth of U.S. goods would take effect immediately, adding that another CA$125 billion in products would be hit with the same tariff in three weeks.

“Our tariffs will remain in place until the U.S. tariffs are withdrawn and not a moment sooner. And should these tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue non-tariff measures, which will demonstrate that there are no winners in a trade war,” Trudeau said.

— Fred Imbert

Automotive stocks are in store for more downside as President Donald Trump’s tariffs on Mexico, China and Canada went into effect on Tuesday, according to Bernstein.

In fact, the firm labels Trump’s blanket duties as “the return of the tariff man” which could equate to a roughly $110 million per day headwind for the auto sector.

“If trade flows remain unchanged, we project an annual impact of up to $40b on the U.S. automotive sector,’ analyst Daniel Roeska wrote on Monday. “However, proactive strategies—such as building up inventory, reallocating production, and reducing imports from Mexico—could mitigate the overall burden. In the initial weeks, the industry may manage to keep additional costs minimal, but prolonged tariffs will increase risks significantly.”

“In the long term, tariffs could reduce automotive free cash flow by up to 60%,” he added.

— Brian Evans

New England governors warned this week that President Donald Trump’s 10% tariff on energy imports for Canada will lead to higher gasoline and home heating prices in the region.

Massachusetts Gov. Maura Healey said Monday that the tariff would cause gasoline and home heating oil costs to “skyrocket” for residents and businesses in the state. The levy would cost Massachusetts $370 million per year and $1 billion for New England, according to the governor.

Maine Gov. Janet Mills said the state’s economy is “deeply intertwined” with Canada. Maine is more dependent than any other state on home heating oil with more than 80% of its gasoline and heating oil imported from Canada, Mills said.

Trump’s energy tariffs target imports of crude oil, natural gas, refined products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals. The levy also appears to apply to hydroelectric power, described as “kinetic movement of flowing water” in the implementation documents.

— Spencer Kimball

President Donald Trump on Tuesday falsely claimed that U.S. banks are not able do business in the Canada after the U.S. issued a 25% on imports from that country.

“Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?” the President wrote on Truth Social.

To be sure, while Canada’s banking sector is tightly regulated, American banks are allowed to operate there.

— Lisa Kailai Han

Trump reiterated that if corporations shift manufacturing back to the U.S., they will avoid getting hit with import tariffs.

“IF COMPANIES MOVE TO THE UNITED STATES, THERE ARE NO TARIFFS!!!” he said in a social media post Tuesday.

— Yun Li

Best Buy CEO Corie Barry warned that prices are “highly likely” to rise after tariffs.

“Trade is critically important to our business and industry; the consumer electronic supply chain is highly global, technical and complex,” Barry said. “We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely.”

Barry said 60% of the company’s cost of goods comes from China and noted that Mexico is its second-largest importer.

— Michele Luhn

Mexico President Claudia Sheinbaum will announced details of how her country will push back against the U.S. on Sunday, but she did have extended comments about the situation on Tuesday. Here are some of Sheinbaum’s remarks, as translated by CNBC.

• “No one wins with this decision. On the contrary, it affects the people we represent.”
• The U.S. and Mexico should be “integrating our economies to strengthen the region amid the economic and commercial growth of other regions.”
• “We will keep the dialog going to find solutions with arguments and rationality.”
• “I reiterate: It’s time to defend Mexico and its sovereignty.”

— Jesse Pound, Fred Imbert

U.S. tariffs against Canada and Mexico taking effect Tuesday are not part of a trade war but rather an effort to stop the flow of fentanyl across the respective borders, Commerce Secretary Howard Lutnick said.

“The current tariff policy is a drug related policy. There’s opioids pouring into this country. They’re killing about 75,000 autopsied Americans a year,” Lutnick said during an interview on CNBC’s “Squawk Box.” “China makes the opioid products, and then Mexico and Canada feed them into America, and that’s got to end. They’ve done a nice job on the border, but they haven’t stopped the flow of fentanyl.”

Though President Donald Trump has taken a stern hand when it comes to the duties, Lutnick offered some hope that they can be lifted if more progress is shown.

“If they can stop the flow of fentanyl, and they can prove to the president they can stop the flow of fentanyl, then of course the president can remove these tariffs,” he said.

Lutnick differentiated the 25% tariffs on Canada and Mexico from those that will take effect on April 2, which he said would mark a “reset” of trade policy specifically relating to the flow of goods and services. Also, he noted that “there may well be short-term price movements” that will hit consumers “but in the long term it’s going to be completely different.”

—Jeff Cox

Oil prices fell Tuesday morning as President Donald Trump’s tariffs on Canada and Mexico coincide with higher supplies from OPEC+, souring the outlook for crude.

U.S. crude oil was down 70 cents, or 1.02%, at $67.67 per barrel by 9:20 a.m. ET, while global benchmark Brent traded $1.02, or 1.42%, lower at $70.60 per barrel.

Trump’s tariffs include 10% duties on energy imports from Canada. Many U.S. refiners, particularly in the Midwest, are dependent on heavy crude imports from Canada.

While the levies on energy imports will likely disrupt crude flows in North America, broader 25% tariffs on the two largest trading partners of the U.S. could slow economic growth and depress oil demand.

Shares of refiners Marathon Petroleum, Phillips 66 and Valero all fell in premarket trading.

Meanwhile, OPEC+ affirmed on Monday that it will gradually return 2.2 million barrels per day to the market starting in April, casting a further shadow over the supply-and-demand balance.

— Spencer Kimball

U.S. President Donald Trump’s 25% tariffs on goods from Mexico could lead to higher produce prices as early as this week, according to Target’s Brian Cornell.

The company’s CEO said on Tuesday that Target relies on Mexico during the winter season for a “significant” amount of supply for some categories like fruits and vegetables, meaning that the levies could prompt the company to soon raise prices on those goods.

“Those are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” he said on CNBC’s “Squawk Box” on the heels of Target’s latest quarterly results.

Cornell added that strawberries, avocados and bananas were some of the key produce that could see price increases.

“We’re going to try and make sure we can do everything we can to protect pricing, but if there’s a 25% tariff, those prices will go up,” he also said.

— Sean Conlon, Jacob Pramuk, Gabrielle Fonrouge

Mexican President Claudia Sheinbaum is now speaking about the U.S. tariffs, saying that there is no justification for the new levies on imports from her country.

Sheinbaum said she will announce retaliatory tariffs this weekend.

“We have decided to respond with tariff and non-tariff measures that I will announce on Sunday,” Sheinbaum said.

— Jesse Pound, Fred Imbert

Legendary investor Warren Buffett made a rare comment over the weekend on Trump’s tariffs, warning their negative effects on the consumer.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, whose conglomerate Berkshire Hathaway has large businesses in insurance, railroads, manufacturing, energy and retail.

“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” the 94-year-old Buffett said with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”

— Yun Li

Canadian Prime Minister Justin Trudeau on Monday said retaliatory tariffs on U.S. goods will start Tuesday, if U.S. President Donald Trump follows through with his proposed levies.

Canada will impose tariffs of 25% on C$155 billion ($107 billion) on U.S. goods, with C$30 billion ($20.8 billion) worth of U.S. goods to go into effect on Tuesday, according to a statement. Levies on the remaining C$125 billion ($86.7 billion) will start in 21 days.

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said.

— Sarah Min

While Canada and China have already announced retaliatory tariffs, Mexico has not made a similar proclamation as of Tuesday morning.

Trump and Mexican President Claudia Sheinbaum had previously worked together on border security, but the U.S. president said Monday there was no room left for negotiations.

Target CEO Brian Cornell said Tuesday that the tariffs on Mexico could lead to an increase in produce prices in the coming days.

— Jesse Pound

President Trump confirmed Monday that the U.S. will impose reciprocal tariffs on April 2 against countries that his administration deems are using unfair trade practices.

“Reciprocal tariffs start on April 2,” Trump told reporters at a press conference that was held to announce a $100 billion investment from Taiwan Semiconductor Manufacturing Company.

The goal of Trump’s policy is to reduce the U.S. trade deficit, which he has described as a national security threat in a presidential memorandum signed on Feb. 13.

The European Union is likely to be in the crosshairs when Trump’s reciprocal tariffs take effect. The president has repeatedly criticized the value-added tax on goods and services used in European countries, claiming it puts U.S. companies at a disadvantage.

Trump’s presidential memorandum on reciprocal tariffs specifically calls out the VAT.

Trump threatened during a cabinet meeting last Wednesday to impose 25% tariffs on the EU, claiming the bloc was formed to “screw the United States.”

Total U.S. goods traded with the EU was $975 billion 2024, according to the Office of the U.S. Trade Representative. The U.S. had a goods trade deficit of $235.6 billion with the EU.

— Spencer Kimball

China has moved quickly to strike back against President Trump’s latest tariff plans.

The Chinese governments on Tuesday announced retaliatory tariffs on some U.S. goods of up to 15%, starting on March 10, as well as new export controls.

The new tariffs from China are targeted at the U.S. agricultural sector. U.S. corn will face a 15% levy, while soybeans will be hit with a 10% tariff, according to the finance ministry’s website.

The moves come as an additional 10% tariff from the U.S. on Chinese goods is set to take effect Tuesday.

China’s relationship with the U.S. is bound to see disagreements, but China will not accept pressuring or threatening, Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, told reporters Tuesday morning.

— Jesse Pound, Evelyn Cheng

The stock market has struggled as investors contend with the expected effects of President Trump’s tariffs on the economy.

The S&P 500 notched its worst day of 2025 on Monday, with losses steepening in the session after Trump made clear that his planned levies would go into effect. With that decline, the broad index is now in the red on the year.

Stocks with notable connections to countries slapped with tariffs have felt the heat. Ford and General Motors are both down in Tuesday’s premarket, extending losses seen this year. Chipotle, which sources about half of its avocados from Mexico, also pulled back before the bell and is down nearly 10% in 2025.

— Alex Harring

President Donald Trump dashed hopes for a last-minute deal that could avoid a trade war with 25% tariffs on goods imported from Canada and Mexico going into place at midnight.

Trump told reporters Monday afternoon there was “no room left for Mexico or for Canada” to negotiate an alternative to the tariffs, which he has threatened to impose for weeks.

Trump on Monday also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty he had slapped on Beijing in early February.

— Yun Li, Kevin Breuninger