US President Donald Trump announced a broad new tariff on Canada, Mexico, and China Tuesday, broadening the widening trade fight and unwinding Wall Street rally. A 25 percent tariff will take effect on merchandise from Mexico and Canada on March 4, and tariffs on Chinese imported goods will double from 10 percent to 20 percent.
Trump rationalized the move in relation to the addictive and deadly fentanyl epidemic, arguing that trade sanctions would force foreign governments to crack down harder on drugs trafficking. We can’t let this plague keep doing damage to the #USA,” he said on Truth Social, confirming that the tariffs will proceed on schedule.
The news sent shock waves through financial markets with the S&P 500 falling 1.6% as investors prepared for a possible economic impact. Opponents say the tariffs will increase consumer costs, worsen inflation and harm supply chain stability, especially in the auto and manufacturing industries. 
The huge containment zone started on Monday and will likely last for days; however officials express hopes that a diplomatic resolution can be reached by that time. Trudeau threatened to counterstrike, suggérant des tarifs canadiens sur les biens américains si besoin.
China’s Commerce Minister Wang Wentao told negotiations, noting dialogue over confrontation. The international reaction highlights worries across the world that Trump’s trade belligerence could unbalance the world trading system and result in long conflict over trade.
