Trump's Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market

President Donald Trump's plan to place tariffs on Mexico and Canada and a higher tariff on China will take place on March 4, a move that could impact multiple sectors and cause worry for American consumers.

What Happened: Trump's proposed tariffs on Canada and Mexico were paused on Feb. 3 for one month after agreements were reached with both nations over border security controls and efforts to improve trade relations.

Those pauses are now set to be lifted with Trump saying the 25% tariffs on Mexico and Canada will go into effect on March 4, with China to get an additional 10% tariff on March 4 as well.

Trump had said earlier this week that the tariffs were still planned to go into effect, an item he confirmed in a Truth Social post Thursday morning.

"Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China," Trump said in his post.

The president alleges that more than 100,000 people died last year due to these drugs, with millions dying in the last two decades.

"We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled. China will likewise be charged and additional 10% Tariff on that date," he wrote.

Trump also said the April Second Reciprocal Tariff date will remain in "full force and effect," which follows a study being done on trade balances with countries worldwide.

Read Also: Warren Buffett Unfazed By Trump’s Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer

Why It's Important: Tariffs on Mexico, Canada and China are expected to impact numerous sectors in the U.S., including automotive, food and beverage, beer and spirits, oil and consumer goods.

Benzinga recently asked if the tariffs could impact stock market indexes like the S&P 500, which is tracked by the SPDR S&P 500 ETF Trust SPY.

“How will Trump’s tariffs affect the stock market?” Benzinga asked.

The results were:

• Weigh down: 59%
• Push higher: 23%
• No real impact: 19%

The majority of respondents said Trump’s tariffs will send the stock market lower. The remaining voters were split nearly even between the stock market going higher as the result of tariffs or the tariffs not having a real impact on stock market returns.

Price Action: After initially trading down in premarket, stock indexes have turned positive Thursday. A strong earnings report from NVIDIA Corporation Wednesday and the stock trading higher Thursday could be offsetting tariff concerns.

The SPDR Dow Jones Industrial Average ETF DIA is up 0.2% to $435.03 on Thursday versus a 52-week trading range of $376.15 to $451.54.

The SPDR S&P 500 ETF Trust SPY is up 0.4% to $591.11 on Thursday versus a 52-week trading range of $493.86 to $613.23.

Country themed ETFs of the three nations to be hit with tariffs were down on Thursday.

iShares MSCI Mexico ETF EWW is down 0.3% to $51.33 Thursday versus a 52-week trading range of $46.43 to $71.11.

iShares MSCI Canada ETF EWC is down 0.5% to $41.22 Thursday versus a 52-week trading range of $35.74 to $43.33.

iShares MSCI China ETF MCHI is down 0.3% to $55.22 Thursday versus a 52-week trading range of $38.40 to $59.78.

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