00:00Brace yourselves. Trump's new tariffs just went into effect, and the backlash is coming
00:04fast. Higher prices, trade war threats, and economic uncertainty. Let's break down exactly
00:09what's happening. But first, follow Benzinga so you never miss a major market update.
00:14As of March 4th, President Donald Trump's new tariffs officially took effect, slapping
00:18a 25% duty on imports from Canada and Mexico and raising tariffs on Chinese goods from
00:2410% to 20%. According to CNBC, Trump is justifying these moves by claiming Canada, Mexico, and
00:30China have failed to stop fentanyl from flowing into the U.S. But these new trade barriers
00:34are already causing major retaliation and economic concerns across the industries.
00:39These countries aren't holding back, though, specifically Canada. Prime Minister Justin
00:43Trudeau announced 25% tariffs on $20.7 billion worth of U.S. goods, including orange juice,
00:49peanut butter, and machinery, and warned that even tougher tariffs could follow in three
00:53weeks if the U.S. doesn't back down.
00:55Mexico's government is also fighting back. Mexican President Claudio Sheinbaum called
00:59the tariffs completely unjustified and is expected to announce Mexico's retaliation
01:03this Sunday.
01:04Also, China is hitting U.S. agriculture hard. Beijing just imposed new 10% to 15% tariffs
01:09on key American exports like meat, grains, and dairy, while also restricting 25 U.S.
01:15companies from doing business in China.
01:17But what does this mean for you? Well, higher prices are on the way. According to the Wall
01:21Street Journal, Target's CEO says shoppers will likely see grocery prices rise within
01:25days, especially on fruits and avocados from Mexico. Best Buy's CEO also warned that electronics
01:31like smartphones and laptops, which are heavily imported from China and Mexico, could get
01:36more expensive fast.
01:38Wall Street is not happy. The Nasdaq just slipped into correction territory, falling
01:42over 10% from its recent high, while the S&P 500 and Dow Jones both dipped in early trading.
01:47Automakers, homebuilders, and retailers, or basically any industry dependent on global
01:52supply chains, are already seeing stock losses. Even treasury bond yields dropped as investors
01:57rush towards safer assets.
01:59Well, what's next? Economists at Goldman Sachs estimate the U.S. inflation could jump
02:040.7% from these tariffs alone, with the S&P 500's corporate earnings taking a 2.8% hit
02:10if the trade war escalates. And if this drags on, Barclays strategists are warning that
02:15the recession could be on the table.
02:17So will Trump back down? Not likely. But will these tariffs last? Goldman Sachs says
02:23that they might be temporary, depending on how Canada, Mexico, and China respond to U.S.
02:28demands.
02:29How do you think this will play out? Will these tariffs get reversed, or is this just
02:33the start of a bigger economic slowdown? Let us know in the comments and follow us for
02:37real-time updates on the markets and more.
