Samsung to launch its Apple Vision Pro rival headset this year
President Donald Trump went forward with sweeping tariffs at midnight on goods imported from Canada and Mexico, while doubling down on punitive duties on China.The latest: Mexico’s president said retaliatory tariffs are coming Sunday. At midnight, 25% tariffs on two U.S. neighbors — Canada and Mexico — went into effect. The president also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty he had slapped on Beijing in early February. Economists have warned that the president’s aggressive moves could cause negative consequences globally, including triggering inflation that could hurt consumers. The stock market suffered a dramatic sell-off after Trump’s announcement Monday. The S&P 500 dropped 1.8%, its worst day since December, falling into negative territory for the year. Stocks were under pressure yet again Tuesday, with the tech-heavy Nasdaq Composite flirting with correction territory.‘The return of the tariff man’ means auto stocks have more downside ahead, says BernsteinAutomotive 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 EvansNew England governors warn tariffs will increase gasoline, home heating costsNew 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.Win Mcnamee | Getty Images News | Getty ImagesGov. Janet Mills (D-ME) challenges U.S. President Donald Trump over trans women in sports as Trump addresses a meeting of governors at the White House on February 21, 2025 in Washington, DC. 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 KimballTrump falsely claims that U.S. banks cannot do business in CanadaGary Hershorn | Corbis News | Getty ImagesA Citibank corporate logo hangs on the side of a building in front of the CN Tower on July 31, 2023, in Toronto, Canada.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 HanTrump says companies with US manufacturing won’t have tariffsTrump 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 LiBest Buy CEO warns prices for consumers are ‘highly likely’ to riseKamil Krzaczynski | Getty ImagesShoppers wait in line outside a Best Buy store on Black Friday on November 29, 2024 in Burbank, Illinois. 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‘It’s time to defend Mexico and its sovereignty,’ Sheinbaum saysRaquel Cunha | ReutersMexican President Claudia Sheinbaum holds a press conference to announce response to U.S. tariffs, at National Palace in Mexico City, Mexico March 4, 2025 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 ImbertLutnick says tariffs for now are targeted toward stopping drugs Elizabeth Frantz | ReutersHoward Lutnick stands near U.S President Donald Trump (not pictured), at the White House, in Washington, U.S. February 3, 2025. 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 CoxOil falls as Trump tariffs coincide with higher OPEC+ supplyEli Hartman | ReutersA pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, U.S. February 18, 2025. 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 KimballTariffs on Mexico could hike produce prices ‘over the next couple of days,’ Target CEO saysScott Mlyn | CNBCTarget CEO Brian Cornell.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 FonrougeMexico will announce retaliatory tariffs on Sunday, Sheinbaum saysLuis Cortes | ReutersMexico’s President Claudia Sheinbaum holds a press conference a day before the imposition of tariffs by U.S. President Donald Trump, at the National Palace in Mexico City, Mexico March 3, 2025. 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 ImbertWarren Buffett calls Trump’s tariffs a tax on goodsDavid A. Grogen | CNBCWarren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2024.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 LiCanada’s retaliatory tariffs to start TuesdayBlair Gable | ReutersCanada’s Prime Minister Justin Trudeau takes part in a Lunar New Year event in Ottawa, Ontario, Canada Feb. 4, 2025. 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 MinMexico’s next move is unclearLuis Cortes | ReutersMexico’s President Claudia Sheinbaum holds a press conference a day before the imposition of tariffs by U.S. President Donald Trump, at the National Palace in Mexico City, Mexico March 3, 2025. 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 PoundTrump to impose reciprocal tariffs next month with Europe in the crosshairsAnnabelle Gordon | The Washington Post | Getty ImagesPresident Donald Trump holds a press conference with TSMC CEO C.C. Wei to announce that Taiwan Semiconductor Manufacturing Company (TSMC) plans to invest $100 billion in new manufacturing facilities in the United States in the Roosevelt Room of the White House on March 3, 2025 in Washington, DC. President Donald 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.The goal of Trump’s policy is 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 trade 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 strikes back at U.S. with tariffs of its ownKia Johnson | ReutersCorn and soybean farmer Don Swanson prepares to harvest his corn crop as he and other Iowa farmers struggle with the effects of weather and ongoing tariffs resulting from the trade war between the United States and China that continue to effect agricultural business in Eldon, Iowa U.S. October 4, 2019. China has moved quickly to strike back against 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 good 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 ChengStocks take a hit amid concerns over tariffsBrendan Mcdermid | ReutersA trader reacts while working on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., February 25, 2025.REUTERS/Brendan McDermidThe stock market has struggled as investors contend with the expected impacts of President Donald 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 HarringTrump delivers tariffs, escalating a global trade fightTrump 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
