A new paper from the Boston Fed's Omar Barbiero and Hillary Stein estimates President Trump's tariffs on Canada, Mexico, and China could raise core inflation by 0.5 to 0.8 percentage points.

The analysis factored in price changes for direct imports as well as imported components. From the authors:

Yahoo Finance's Ben Werschkul provides an update on US Trade Representative (USTR) nominee Jamieson Greer's confirmation hearing, where tariffs and trade remained a key line of questioning:

Read more here.

Ford (F) CEO Jim Farley warned that if tariffs on Canada and Mexico go into effect — and stay that way for some time — auto profits would take a major hit.

Yahoo Finance's Brian Sozzi reports.

Read more here.

Central banks and investors are piling into gold as concerns about geopolitics, inflation, and diversification remain in focus.

Yahoo Finance's Ines Ferré reports:

Read more here.

Chipotle (CMG), which sources some of its avocados, tomatoes, limes, and peppers from Mexico, is monitoring US trade talks with Mexico ahead of the March 4 tariff deadline, when a 25% duty is expected to go into effect for Canadian and Mexican imports.

Chipotle CFO Adam Rymer told Yahoo Finance in an interview that the fast-casual chain will be "very patient" with tariffs and won't raise prices in the near term, Yahoo Finance's Brooke DiPalma reported.

"As the tariffs come in, we're able to absorb these costs for a very long period of time," Rymer said. He noted that if the tariffs are enacted and become "permanent," Chipotle would pass that increase along to consumers.

Watch the full interview below or read more here.

On Sunday, President Trump warned that Americans could feel "some pain" from his tariff policies but that it would be "worth the price paid." However, as Yahoo Finance Senior Columnist Rick Newman points out, consumers may be less tolerant of price hikes than they were during Trump's first administration after enduring the recent bout of inflation.

Newman writes:

Read more here.

More Wall Street firms are pointing to tariffs as they revise their outlooks for Fed rate cuts this year. In a note to clients Tuesday, Morgan Stanley (MS) reduced its outlook to one 25 basis point rate cut this year from two previously.

"Imposing tariffs more quickly than we assumed would likely mean disinflation halts at a higher pace of inflation, blocking any near-term path to cuts," Morgan Stanley analysts wrote in a note on Tuesday, as reported by Reuters.

In a separate note obtained by Yahoo Finance, Goldman Sachs (GS) chief economist Jan Hatzius wrote that the firm now sees US tariffs on Chinese goods rising another 10 percentage points and potentially even higher. From Hatzius:

Goldman still sees two Fed rate cuts this year, as does its peer, Wells Fargo (WFC).

Yahoo Finance's Josh Schafer reports:

President Donald Trump's tariffs plans have been front and center for investors over the past week, causing investor angst and, at times, jumpy market action.

But looking past the noisy headlines, the stock market has shown several signs of strength, providing equity strategists with ample reason to believe the path higher for stocks remains intact.

Since last Monday's DeepSeek-driven AI sell-off in markets, the S&P 500 (^GSPC) is actually up about 0.3%. And despite some sharp downturns, particularly in premarket trading, the benchmark index saw less than a 1% decline on Friday and Monday when tariff speculation was running rampant.

Read more here.

Fast fashion is set to take a hit with Donald Trump's tariffs closing a loophole that has given e-commerce retailers Temu and Shein a competitive edge.

As Yahoo Finance's Jordan Weissman reports:

Read more here.

Stocks closed higher on Tuesday after the US imposed an additional 10% tariff on goods from China and the world's second-largest economy countered with tit-for-tat measures of its own.

The Dow Jones Industrial Average (^DJI) gained around 0.3%, while the benchmark S&P 500 (^GSPC) rose roughly 0.7%. The tech-heavy Nasdaq Composite (^IXIC) jumped nearly 1.4% to recoup some of Monday's losses. The US dollar index (DX-Y.NYB) fell 0.9% as worries eased.

President Trump did not speak with Chinese leader Xi Jinping today but is expected to have a call with Xi this week.

In addition to retaliatory tariffs, China opened an antitrust investigation into Alphabet's (GOOG, GOOGL) Google and added Calvin Klein owner PVH (PVH) and biotech company Illumina (ILMN) to its "unreliable entities list."

Bloomberg reports:

A last-minute deal to head off a trade war between the US and Canada has given investors a temporary reprieve, but Canadian leaders are warning about the high-stakes negotiations ahead.

The agreement merely kicked the tariff threat 30 days down the road. Trump said the next month will be used “to see whether or not a final economic deal with Canada can be structured.”

As long as potential tariffs hang over the Canadian economy, economists, businesspeople, and government leaders see the risk that investment will be pulled south.

“Mr. Trump’s strategy around this is deliberate: It’s an intention to destroy Canada’s economy and to drive us into becoming the 51st state,” David Eby, premier of British Columbia, told reporters Monday. He called it “reprehensible, inexplicable, and profoundly disappointing, and it makes me and British Columbians and Canadians very angry, because we see what the plan is here.”

Read more here.

Tue, February 4, 2025 at 8:51 PM UTC

Donald Trump offered another update on this week’s trade back-and-forth Tuesday afternoon, saying “that’s fine” when asked about China’s retaliatory tariffs and adding that talks with Chinese President Xi Jinping to resolve the standoff might be a ways off yet.

“We’ll speak to him at the appropriate time. I’m in no rush,” Trump told reporters just one day after saying he expected to talk with Xi in about 24 hours.

Trump also declined to speculate on whether he thought the talks could lead to a lifting of the tariffs when they do happen.

The comments came in the Oval Office Tuesday afternoon after the president signed new executive orders and after the 10% duties on China went into effect. The world's second-largest economy hit back with a range of moves in response.

China also threatened Tuesday to use probes into Google (GOOG, GOOGL) and Nvidia (NVDA) as leverage in the ongoing face-off.

Other Trump plans for 25% duties on Canada and Mexico are on hold for a month as talks continue. Trump said those talks led to a closing of the border and continued to tout tariffs as a tool across a range of conflicts saying, “We’re doing well with countries that nobody expected.”

Tariffs could soon put pressure on apparel and footwear companies — and their customers.

As Yahoo Finance's Brooke DiPalma writes, Wrangler jeans maker Kontoor Brands (KTB) and glasses maker Warby Parker (WRBY) are among the companies most exposed to tariffs.

While tariffs on Canada and Mexico have not yet gone into effect, Kontoor sources 30% of its materials from those two countries, while Warby Parker sources 20% of its products from China.

Shoe brands Skechers (SKX) and Crocs (CROX) source 40% and 28% of their products from China, respectively.

Unlike in 2018, companies have less room to raise prices.

"We think it's a more difficult environment in which to pass along pricing, therefore more likely to be impactful to the margins of the apparel industry," Stifel analyst Jim Duffy told Yahoo Finance.

Read more here.

Minutes after President Trump's 10% tariffs on Chinese goods went into effect, Chinese leader Xi Jinping countered by announcing retaliatory tariffs on 80 products and an antitrust investigation into Google (GOOG), among other measures.

Bloomberg reports:

Trump and Xi are expected to speak over the phone this week to discuss the tit-for-tat tariffs.

Read more here.

CNN reports:

Lower-income Americans are likely to feel the brunt of the unprecedented tariffs President Donald Trump has set in motion.

The cost to lower-income families is magnified because economists say essentials like food, energy, and auto parts are most exposed to the import tariffs Trump has threatened to impose over the next month.

Trump tariffs on Mexico, Canada, and China would cost the typical household about $1,200 per year, Kimberly Clausing, a senior fellow at the Peterson Institute for International Economics, and her colleague Mary Lovely found in a new analysis.

That burden falls disproportionately on those who can least afford it: The tariffs on America’s biggest three trading partners will wipe out 2.7% of the income of the bottom 20% of earners, the Peterson Institute found.

Read more here.

Tue, February 4, 2025 at 4:34 PM UTC

The Wall Street Journal reports:

Steel prices in the US were already climbing before President Trump announced his latest round of tariffs on Canada and Mexico. If the 25% tariffs go into effect, US manufacturers are preparing for even higher costs.

While the move aims to strengthen the US steel industry, it could impact several sectors, driving up the cost of everything from car prices to soda cans.

“You’re going to see those bad actors that are distorting how they price goods penalized,” said Leon Topalian, CEO of US steel industry leader Nucor (NUE).

Read more here.

Yahoo Finance's Ben Werschkul reports:

The hectic kick off to Donald Trump's tariffs in recent days is making one thing abundantly clear: This is very different from Trump 1.0.

On an array of issues — from the speed of the duties and the wider array of consumer staples caught in the middle to Trump's plan to use tariffs for "getting everything else you want" — the president is offering a new and unpredictable approach.

"It is fundamentally different," former US trade representative general counsel Greta Peisch said in an interview, noting that Trump is now "breaking new ground in what is a trade authority, what are they used for, and how expensive the transactions will be."

Trump is approaching the tariff issue this time around at a different speed and promising duties at higher levels. The current "blanket tariffs first" approach in evidence this week was absent from 2017-2020.

There is another key difference between Trump's 2.0 and 1.0 trade wars: The rest of the world has had time to prepare.

Read more here.

Yahoo Finance's Brian Sozzi reports:

PepsiCo (PEP) is taking a cautious view on the next 12 months as it deals with dueling headwinds in the form of tariffs and fierce competition.

"We're not immune to this [tariffs] — we are less impacted than most of the businesses," PepsiCo chair and CEO Ramon Laguarta told me Tuesday morning.

Shares fell 2.5% in premarket trading as PepsiCo unveiled a muted growth outlook for 2025 following better-than-expected fourth quarter earnings.

Laguarta added, "Obviously, we bring a lot of aluminum from Canada. We bring some oats from Canada as well, but [the] majority of our food — potatoes, corn — most of our inputs are localized. You know, we will be impacted. But we have enough flexibility — that's why we're giving conservative guidance now because we need some flexibility to deal with all this."

Read more here.

Yahoo Finance's Josh Schafer writes in today's Morning Brief:

Wall Street is back in a familiar position. No one knows what will actually happen with President Donald Trump's tariff policy.

On Sunday night, a clear market narrative emerged. Donald Trump was actually going to implement the tariffs he's been talking about for weeks and investors were caught off guard. Stock futures sold off swiftly.

Less than two hours into the trading day Monday, Trump's announcement that tariffs on Mexico would be delayed for a month put a large dent in that narrative.

Stocks rallied significantly off their lows of the day following the news. And then 36 minutes after the markets closed, Canadian Prime Minister Justin Trudeau posted that after a "good call" with Trump, the tariffs would be paused for "at least 30 days" while the countries hash out various border agreements.

What a ride. But a few clear trends emerge following a volatile 24 hours.

For starters, the market is clearly "underpricing" tariff risk, showing a hopeful bias that these tariffs will end up being bargaining chips in service of the Art of the Deal as new agreements are hashed out.

President Donald Trump’s 10% tariffs on goods made in China, which affect electronics ranging from PCs to smartphones, put pressure on US tech giants, and chipmakers could be next, Yahoo Finance's Dan Howley reports.

Apple (AAPL) is perhaps the tech company most at risk from Trump’s initial round of tariffs on China. The company has a massive manufacturing base in the country, which means everything from the iPhone and iPad to the MacBook Pro is facing 10% tariffs.

While Trump’s latest tariffs don’t hit the most advanced chips on the market, he has already signaled that he plans to levy separate duties on them in the future. That would force chipmakers to either raise prices on their goods or deal with the increase on their own.

For companies like Amazon (AMZN), Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT), which are pouring money into AI chips, any price increase would mean having to pay far more to build out their data centers.

Read more here.

China retaliated on Tuesday by imposing tariffs on US imports in response to new American duties on Chinese goods, firing back in a trade conflict between the two largest global economies.

China's Finance Ministry said it would impose levies of 15% for coal and liquified natural gas imported from the US, and 10% for crude oil, farm equipment, and some autos. The new tariffs will start on Feb. 10.

This move came as President Donald Trump attempted to pressure China into a deal over tariffs on major industries based in China. Trump’s decision to impose an additional 10% tariff on all Chinese imports took effect at 12:01 a.m. ET on Tuesday.

The day before, Trump had backed down from his threat to impose a 25% tariff on Mexico and Canada, opting instead for a 30-day delay in exchange for commitments to strengthen border security and address crime enforcement with the neighboring nations.

Read more from Reuters.

President Donald Trump said he has plans to speak to China ahead of the 10% tariffs he has aimed at the country are due to take effect. This comes just hours after a 30-day delay on similar measures against Canada and Mexico.

Moving the conversation up from "later in the week," Trump told reporters in Washington that talks with China will occur “probably over the next 24 hours.”

Maintaining his threat of economic action, the president continued, “If we can’t make a deal with China, then the tariffs will be very, very substantial.” Should tariffs come in, Big Tech is likely to see a significant hit in the markets, as explained by Yahoo Finance's Daniel Howley.

Trump's last-minute agreements with Mexico and Canada are lending support to the idea that a deal will be broached between the worlds two largest economies.

Showing where his focus may lie in the call, Trump posted “GREAT INTEREST IN TIKTOK!” on Truth Social Tuesday morning.

Yahoo Finance's Jordan Weissman reports that while Donald Trump might already be scaling back his trade war, it could still put a small dent in US consumers' wallets.

Ahead of the announcement that the US would pause tariffs on Canada for 30 days, the Yale Budget Lab estimated 25% tariffs on Canadian imports and a 10% additional tariff on Chinese goods would cost American households about $690 each.

That figure assumes Canada retaliates with tariffs of its own, according to analysis first shared with Yahoo Finance. If it doesn’t, the cost would be $648 per household. Tariffs on Canada would also shrink the US economy by $875 billion, or 0.2% of gross domestic product.

And when including tariffs on Mexican goods, import taxes on all three countries would cost about $1,245 per household while reducing GDP by $1.4 billion.

Read more here.

Mon, February 3, 2025 at 10:10 PM UTC

A whirlwind day of tariff diplomacy continued late Monday afternoon as the US and Canada announced a 30-day reprieve on 25% tariffs that had been scheduled to affect Canada at 12:01 a.m. ET.

“Proposed tariffs will be paused for at least 30 days while we work together,” Canadian Prime Minister Justin Trudeau posted of an afternoon phone call with US President Donald Trump, saying Canada's implementation of a $1.3 billion border plan and the announcement of a “fentanyl czar" helped seal the deal.

Trump then confirmed the deal and its major components, adding the pause will be "to see whether or not a final Economic deal with Canada can be structured."

The announcement of a reprieve between the US and its top trading partner came after days of caustic back-and-forth between the two countries.

The announcement followed a similar reprieve that Trump and Mexican President Claudia Sheinbaum announced earlier in the day on planned 25% duties to America’s southern neighbor.

That means, for now, Trump is only scheduled to go forward with duties on China and the 10% tariffs he had planned there. But the president even threw some doubt on how long those would be in place, telling reporters Monday afternoon that "we will probably be speaking with China over the next 24 hours."

Stocks slipped on Monday but pared early losses as investors digested a spate of tariff headlines, including news that President Trump will delay tariffs on goods from Mexico by one month.

Here's a recap of a volatile day in markets:

Read the full account of the market's action today here.

Yahoo Finance's Brooke DiPalma reports:

Tyson Foods (TSN) CEO Donnie King told Yahoo Finance the company does not expect to "see significant impact" and planned for tariffs within its annual adjusted operating income forecast.

The meat supplier raised its forecast by $100 million to a range of $1.9 billion to $2.3 billion, up from a prior $1.8 billion to $2.2 billion.

"We've planned for tariffs, for immigration and any market dynamics, and have baked that into our guidance for the balance of the year," King told Yahoo Finance over the phone.

He added, "Our teams have engaged in contingency planning to minimize disruptions or impacts to the supply chain for some time ... There'll be short-term disruptions, but it will equilibrate."

Read more here.

As stocks bounced back from session lows Monday following Trump's delay of tariffs on Mexico, Yahoo Finance's Seana Smith reports on what Wall Street is saying this means for the administration's broader trade strategy.

In a note to clients, Goldman Sachs' David Kostin wrote that rising policy uncertainty will likely weigh on equity valuation multiples. He suggested that the recent uncertainty increase should reduce the forward 12-month price-earnings multiple by about 3%.

The Tech sector (XLK) is among the most at risk of a geopolitical escalation between the US and China, as analysts warn of a "pretty significant impact" on demand for products like PCs, smartphones, and consumer electronics.

That signals greater downside risk for names like Qualcomm (QCOM), Qorvo (QRVO), Skyworks (SWKS), Intel (INTC), and Nvidia (NVDA), KeyBanc's John Vinh warned.

Goldman Sachs' analysis of S&P 500 companies with explicit revenue exposure to Greater China of 25% or more includes many of those tech names, along with other consumer-facing firms, including Las Vegas Sands (LVS), Wynn Resorts (WYNN), and Lam Research (LRCX).

Read more here.

Yahoo Finance's Pras Subramanian reports:

Automaker stocks slipped on Monday following President Trump’s move to impose tariffs on goods coming from Canada and Mexico.

Shares of the Big Three automakers GM (GM), Ford (F), and Stellantis (STLA), as well as rivals Toyota (TM) and Honda (HMC), slipped on Monday but pared losses following the Mexico tariff delay. Even Tesla (TSLA), despite not making any cars in Canada or Mexico, saw its stock fall, likely due to the fact it uses parts from those regions for its cars.

Currently, Canada produces around 10% of cars sold in the US (approximately 1.5 million units), with Mexico supplying close to 20%, according to a report from TD Economics.

GM, which reported earnings last week, said it was working to minimize the impact.

“From a Mexico perspective, we do build trucks in Mexico and in Canada and in the United States, and so we have the capacity in the United States to shift some of that,” GM CEO Mary Barra said on the company's earnings call. “We also sell trucks globally, and so we can look at where the international markets are being sourced from. So there's plays that we can do on that perspective to minimize the impact.”

Read more here.

President Trump's expected tariffs on Mexico, Canada, and China could soon affect Americans' grocery bills.

Yahoo Finance's Brooke DiPalma reports that under Trump's proposed 25% tariffs on goods from Mexico and Canada and 10% tariffs on Chinese imports, US consumers can expect to pay an average tax increase of more than $800 this year, according to estimates from TaxFoundation.org.

Some items that could see quick price increases include tomatoes, avocados, beer, and liquor from Mexico as well as grains and potatoes from Canada. Tariffs on Canada and China are expected to go into effect on Tuesday, while tariffs on goods from Mexico have been delayed until March.

"A lot of the fruit that comes up [from Mexico] very quickly could change price," Telsey Advisory Group's Joe Feldman told Yahoo Finance. "All the commodity items ... fruits, vegetables, eggs, proteins, and milk tend to see quick pass-through of price increases or decreases, given the supply-demand dynamics and rapid turnover in those items."

This could spell challenges for food stocks such as Mission Produce (AVO) and Constellation Brands (STZ), which source a significant amount of their products from Mexico.

Read more here.

Yahoo Finance's Janna Heron reports:

Irving Oil warned New England customers over the weekend that President Trump's tariffs on Canada, if enacted, would immediately be passed on to their heating bill, flying in the face of the commander in chief's vow to bring down consumer prices.

The tariff cost, or tax as the Canadian company rightly called the duty, would be added to the remainder of their customers' contracts, Irving Energy said in a letter dated Sunday and posted by Dartmouth College professor Douglas Irwin on X. The company serves households and businesses in Maine, New Hampshire, and Vermont.

"This tariff will result in price increases for our US customers and have impacts on energy security and the broader economy," the company posted on its website.

Read more here.

Mon, February 3, 2025 at 4:11 PM UTC

President Donald Trump and Mexican President Claudia Sheinbaum announced a breakthrough in their talks Monday and said they were successful in delaying a new wave of 25% duties on America's southern neighbor by a month.

"It was a very friendly conversation," Trump wrote on Truth Social, confirming the Mexican president's announcement moments earlier. Both also confirmed that Mexico would send 10,000 additional troops to the US-Mexico border.

Trump added that Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Commerce secretary nominee Howard Lutnick will lead the talks in the coming weeks around the issues of drugs and migration that led Trump to impose these duties.

But the fate of promised 25% duties against Canada and 10% duties on China remain uncertain Monday morning.

In another post on Monday, Trump said he spoke with Canadian Prime Minister Justin Trudeau and would talk again at 3 p.m. ET. But he offered a much more aggressive tone and also raised new issues such as Canada’s limits on the US banking system, writing, "What's that all about?"

Mon, February 3, 2025 at 2:42 PM UTC

US President Donald Trump on Monday said he has spoken with Canadian Prime Minister Justin Trudeau — and he said the two leaders would speak again at 3 p.m. ET on Monday.

Trump revealed this in a post on his Truth Social platform in which he also took general shots at the US's neighbor to the north.

US duties of 25% on Canadian imports — with the exception of a 10% levy on oil imports — are set to take effect Tuesday. Trudeau has announced his country will, in turn, place a 25% tariff on US imports, which could affect around $107 billion of a variety of American goods.

Yahoo Finance's Josh Schafer reports:

Investors didn't take President Donald Trump at his word, and now markets are selling off in reaction to his move to impose hefty tariffs on Canada, Mexico, and China.

Nasdaq 100 futures (NQ=F) dove more than 1.7% Monday, leading the declines among the three major indexes but paring losses notched earlier in the morning. S&P 500 futures (ES=F) spiraled roughly 1.5%, and futures attached to the Dow Jones Industrial Average (YM=F) tumbled about 1.3%, or around 580 points.

"While we have not had tariffs baked into our own US equity market outlook, we have been concerned that many financial market participants have been underpricing the risk that they were more than a negotiation tool," RBC Capital Markets head of US equity strategy Lori Calvasina wrote in a note to clients on Sunday.

Read more here.

From Yahoo Finance's Ben Werschkul:

For all the norm-shattering of Donald Trump's Saturday move to levy tariffs on America's top three trading partners, few signs have emerged in the hours since that any force outside of the president himself will be able to reverse his decision if he is determined to stay the course.

While rhetorical opposition to the move is evident from Wall Street to Capitol Hill, any challenges in political or legal arenas are expected to be an uphill climb after decades of tariff authority migrating to the executive branch.

Perhaps the key open question is whether market volatility, which was clearly evident Monday morning, could be the thing that can change Trump's mind now or if a sell-off becomes extended.

Capitol Economics wrote in a Monday note that "if the tariffs stick around, let alone escalate, this morning's market moves may be just the start of greater volatility."

Trump has long used the markets as a barometer of success, but it's a metric he says he is willing to discount, at least for now.

Read more here.

US President Donald Trump engaged in fresh rhetoric regarding tariffs against the European Union following the start of a trade war with Canada, Mexico, and China that saw futures plummet.

Bloomberg reported that Trump has stated that tariffs on the European Union “will definitely happen,” citing a large trade deficit with the bloc.

“They don’t take our cars, they don’t take our farm products,” Trump said of the perceived imbalance.

On the tariff train, Trump is preparing to make calls to Canadian Prime Minister Justin Trudeau and the Mexican leadership Monday morning after announcing 25% levies on the US’s northern and southern neighbors.

Trump has said he expects the calls to be simple enough. “We put tariffs on. They owe us a lot of money, and I’m sure they’re going to pay.” Currently, there is an indication of financial retaliation from Canada ahead of the call between the world leaders.

Trump’s hard-line stance has led to a reduction of trust in the idea of an economic ceasefire. With fears of a North American trade war spreading across the world, US stock futures tanked, the peso fell to its lowest level against the dollar in almost three years, and the Canadian dollar sank to its weakest point since 2003. The euro dropped on Trump’s renewed threats while the dollar rose.

Mon, February 3, 2025 at 12:58 AM UTC

As our stock market live blog details:

Nasdaq futures (NQ=F) lost 2.2%, leading the way down. S&P 500 futures (ES=F) spiraled 1.6%, and futures attached to the Dow (YM=F) stumbled 1.1%, or around 500 points.

The US dollar (DX=F) index jumped, along with the price of crude oil (CL=F).

The early reaction to Trump's sweeping tariffs is just taking shape. Follow along here.

Yahoo Finance Executive Editor Brian Sozzi has some early reactions to President Trump's tariff plans from Wall Street movers and shakers.

He pointed to Trump's Truth Social post suggesting there may or may not be "some pain" as a result of the tariffs — economists and strategists, it appears, are in agreement.

"Our economists expect that fully implemented tariffs would have meaningful consequences," wrote the Morgan Stanley Public Policy Research Team.

Evercore ISI China Strategist Neo Wang noted that unveiling the tariffs on China during the Lunar New Year was also less than ideal, and suggested another factor may be in play: TikTok's status in the US.

Read more here.

The morning after signing tariffs on Canada, Mexico, and China, President Trump said in a social media post that Americans might feel "some pain" but that it would be worth the price.

"THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID," Trump wrote on his Truth Social platform.

In a separate post to Truth Social, Trump claimed that without subsidies from the US, Canada "ceases to exist." He also reiterated his desire that the country become the 51st US state, which would mean "much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”

Canadian Prime Minister Justin Trudeau said Saturday that Canada will place 25% counter-tariffs of CAD $155 billion (USD $107 billion) worth of American-made products, starting Tuesday.

Read more: New Trump tariffs on Mexico, Canada and China set to start Tuesday

After President Trump finally signed his long-anticipated tariffs on Saturday, the reaction was swift.

Canadian Prime Minister Justin Trudeau spoke directly to Americans in a speech Saturday night, Bloomberg reported:

China did not immediately put its own tariffs into effect, but its Commerce Ministry said Sunday it would file a “lawsuit” against the US at the World Trade Organization. Bloomberg reported:

Read more: New Trump tariffs on Mexico, Canada and China set to start Tuesday

Sat, February 1, 2025 at 10:25 PM UTC

Yahoo Finance's Ben Werschkul reports:

President Donald Trump moved forward Saturday with his plans for tariffs on Canada, Mexico and China, ending a guessing game about how aggressively he would move to penalize America's three largest trading partners.

"Tariffs on imports from Canada, Mexico, and China are SIGNED!," a Trump official posted to social media.

The tariffs — as Trump has promised since after his election win — will be 25% duties on Canada and Mexico and 10% on China over issues of fentanyl and illegal migration, according to a White House summary of the actions.

Read more here.

Canada is bracing for President Trump's promised tariffs. As of mid-afternoon on Feb. 1, the White House had still not announced any official details, but as Bloomberg reports, Canadian officials aren't waiting around:

Read more here

For charts that tell the story of Trump, tariffs, and markets, download YF Chartbook Vol. 4.

Yahoo Finance executive editor Brian Sozzi spoke to top business leaders about how they're preparing for the expected tariffs from President Trump.

"We've done a lot of scenario planning and we know the levers that we can pull to minimize any impact," said General Motors Chair and CEO Mary Barra.

IBM CFO Jim Kavanaugh says "stabilization right now is prudent." And HP Inc. CEO Enrique Lores says "we don't know exactly what tariffs are going to be put in place. But we have been working on this for several quarters."

Read more here.

For charts that tell the story of Trump, tariffs, and markets, download YF Chartbook Vol. 4.

Traders are moving volumes of gold and silver into the US via plane as President Trump prepares to impose tariffs on Mexico, Canada, and China on Saturday.

Bloomberg reports that planes commonly carry gold between hubs in London, New York, Zurich, Hong Kong, and Shanghai, while "bulkier silver is typically sent by ship."

But as traders rush to obtain the precious metals ahead of looming trade escalations and futures surge, shipping silver by air has become worth the cost for some traders.

According to the report, nearly 14 million ounces of gold and 45 million ounces of silver "have flowed into the depositories of New York’s Comex futures exchange since election day" and "the rush for bullion led to weeks-long queues to withdraw the metal from the Bank of England’s vault into the custody of private banks."

Gold futures (GC=F) touched a record high above $2,860 per ounce on Friday as traders looked to hedge against tariff risks. Silver futures (SI=F) also advanced Friday.

Tariffs have emerged as a key theme in earnings calls so far, as corporate executives weigh the potential effects of President Trump’s tariff promises and seek to mitigate the impact of increased duties.

"AI-identified mentions of tariffs on S&P 500 earnings calls have surged under the incoming Trump administration’s threat of significant US import tariffs, with the industrial sector seeing the largest spike,” Michael McDonough, chief economist for financial products at Bloomberg, told Yahoo Finance’s Josh Schafer.

While Industrials has led S&P sectors in tariff mentions, as the chart above indicates, companies across all sectors of the economy have chimed in, including Tesla (TSLA), JPMorgan (JPM), Delta (DAL), and Whirlpool (WHR).

For more charts that tell the story of Trump, tariffs, and markets, click here to download YF Chartbook Vol. 4.

Reuters reports that Colgate-Palmolive is working on "potential mitigation plans" to blunt the effects of possible tariffs on the company's toothpastes made in Mexico.

Colgate-Palmolive CFO Stan Sutula said Friday on a call with Wall Street analysts that its plans to reduce the impact of tariffs could have an impact on its import of raw materials like vitamins and amino acids. He added that the company is also planning for retaliatory tariffs.

Sutula's comments came as the White House reiterated its plans to impose 25% tariffs on goods imported from Mexico, Canada, and China beginning Saturday, denying an earlier Reuters report that President Trump planned to delay implementing his long-promised tariffs until March 1.

Colgate has said its toothpaste brands account for about a third of the US market. The company did not factor the costs of potential tariffs in its 2025 fiscal year financial guidance, Sutula said.

Colgate stock was down 5% Friday.

Read more here.

As a crucial moment for President Trump’s agenda approaches, markets are bracing for the potential fallout from tariffs.

But the Trump administration may also be bracing for the potential fallout from the stock market — a favorite scoreboard of Trump's — as it weighs its options.

On a new episode of Capitol Gains, Yahoo Finance’s Rick Newman, Ben Werschkul, and Seana Smith discuss how tough Trump will get on tariffs and how that dynamic is affecting markets.

“I think the shock at this point would be if Trump really did impose significant tariffs — at least, I don’t think Wall Street is pricing that in,” Newman said.

However, Werschkul noted that markets may be underestimating how much Trump wants to push through heavy tariffs.

"There’s a lot of issues that [Trump] talks about that you kind of get the sense that he’s not personally invested in," Werschkul said. "That’s not true with tariffs. It’s a sort of throughline of his career."

Capital Economics Group chief economist Neil Shearing also weighed in.

"My sense is tariffs are coming, but I don’t think they’ll be quite on the same scale that the president has talked about," Shearing said, adding, "for obvious reasons, and that is that it would tank the market."

See the full episode of Capitol Gains here.

Yahoo Finance's Ben Werschkul reports:

Market anxiety ahead of Donald Trump's self-imposed Feb. 1 deadline for a first round of tariffs focused on oil and gas after the president appeared to acknowledge Thursday there could be issues with the energy staples in his overall plans.

On Friday, Reuters reported that Trump is weighing a delay on the actual implementation of tariffs by a month, to March 1, and that exceptions would be possible but "few and far between."

But even that left questions surrounding how Trump will approach oil, with petroleum representing Canada’s biggest export to the US.

Oil markets reacted to the news Friday, injecting yet another question mark in the runup to tariffs, which has seen an array of mixed signals.

Read more here.

Fri, January 31, 2025 at 5:53 PM UTC

President Donald Trump, facing a self-imposed Feb. 1 deadline to impose promised new tariffs on Canada and Mexico, is set to announce they will take effect March 1, according to Reuters. The White House called the report "false," reiterating that Trump plans to impose the tariffs starting Saturday.

From Reuters:

Yahoo Finance's Ben Werschkul has more on the fluid situation here.

Yahoo Finance's Josh Schafer highlighted two charts that show how markets are thinking about President Trump's tariff threats in the days leading up to his self-imposed deadline of Feb. 1.

In the latest Yahoo Finance Chartbook, Yale Budget Lab director of economics Ernie Tedeschi pointed out that, when taken literally, Trump's campaign proposals could increase the average effective tariff rate by anywhere from 7 to 27 percentage points. The high end of the estimate would bring the average effective tariff rate to a level not seen since 1900.

"That would represent the most dramatic shift in both trade and tax policy in the US in generations," Tedeschi said.

Specifically, markets are focused on what tariffs could mean for inflation and, therefore, the Fed's interest rate plans.

Deutsche Bank chief US economist Matthew Luzzetti told Yahoo Finance that without tariffs, his team expects core PCE inflation, the Fed's preferred gauge, to fall to 2.5% by the end of 2025. This would be in line with the Fed's target. The metric clocked in at 2.8% on an annual basis in December.

"But if you factor in 25% tariffs on Mexico and Canada, it is very easy to get to 3% plus core PCE inflation forecast this year and acceleration in inflation, not a deceleration," Luzzetti said.

This leads Luzzetti to believe the chart below is "exactly why the Fed has uncertainty right now and is in a wait-and-see mode."

Read more here.

Yahoo Finance's Pras Subramanian reports:

Ford CEO Jim Farley believes Trump’s tariff gambit will be a policy issue that extends beyond February and said that Ford has had a game plan in place.

"We think this will play out over the next couple of months,” Farley said to Yahoo Finance at a Ford Performance event in Charlotte (see video below).

Farley believes Ford is set up the best among its competitors if tariffs come to pass because of its large presence in the US.

“Ford has the largest US manufacturing footprint," he said. And so we're really encouraged about the administration's positive outlook on the auto industry and the impact on our overall economy."

Read more here.