US Stock Market Crashes After Imposing Tariffs On China, Canada & Mexico

U.S. President Donald Trump has officially enforced a 25.25% tariff on imports from Canada and Mexico. Additionally, a 10% surcharge on goods from China has taken effect starting today from 4 March 2025.

Following this announcement, U.S. stock markets faced a downturn, with the S&P 500 Index experiencing a sharp drop. The Asian stock markets also declined, and the Mexican Peso and Canadian Dollar weakened as a result.

In response, Canada’s Foreign Minister stated that the country will impose a 25% tariff on $155 billion worth of U.S. imports. Meanwhile, China’s Ministry of Commerce rejected the tariff measures, warning that if the U.S. does not reverse its decision, China will take countermeasures.

In a separate development, Trump has suspended all military aid to Ukraine. China, in retaliation, has announced tariffs of 10–15% on U.S. agricultural products and is considering further actions against American companies. Additionally, Trump has doubled tariffs on Chinese imports to 20%, citing concerns over China’s insufficient efforts to curb fentanyl exports to the U.S.

Trump defended the import tariffs, stating that they would pressure Canada and Mexico to strengthen their actions against illegal drug trafficking and unauthorized immigration into the U.S. However, concerns about a potential trade war have led to further market instability in the U.S. and Asia. Economic analysts caution that American consumers may face price hikes on several goods due to these new trade policies.