US President Donald Trump announced 25% tariffs on goods from Mexico and Canada will take effect from Tuesday, reigniting fears of a North American trade war and sending financial markets into turmoil. Trump said there was “no room left” for a deal to avoid the tariffs, which he linked to efforts to curb fentanyl flows into the US. He also reaffirmed plans to raise tariffs on all Chinese imports to 20% from 10%, citing Beijing’s failure to halt fentanyl shipments. The new tariffs, covering over $900 billion in annual US imports, are expected to deal a significant blow to the tightly integrated North American economy, rattling companies with cross-border supply chains.DataThe Institute of Supply Management’s US manufacturing PMI slipped to 50.3 in February from 50.9 in January, hovering just above the 50-mark that indicates sector growth, as factories likely front-loaded imports to avoid tariffs. While US manufacturing remained steady, a measure of factory gate prices surged to a near three-year high, and delivery times for materials lengthened, signalling potential production challenges ahead.
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