Trump says 25% tariffs on Mexican and Canadian imports will start Tuesday

President Trump said Monday that he has chosen to impose 25% tariffs on practically all items imported from Mexico and Canada, following a month of negotiations with advisers over a potential respite.

The duties take effect at 12:01 a.m. on Tuesday, hours before President Trump's first joint speech to Congress in the evening. On Monday, a reporter questioned the president about if there is still time for Canada and Mexico to reach an agreement before the deadline.

"No room left for Mexico or for Canada, no," Mr. Trump responded.  "The tariffs, they're all set, they go into effect tomorrow."

Trump has stated that the tariffs are intended to push the two U.S. neighbors to step up their efforts to combat fentanyl trafficking and illegal immigration. However, Trump has stated that he wants to remove trade imbalances in the Americas and encourage more manufacturers to migrate to the United States.

In addition to the existing tariffs, the president intends to put an extra 10% duty on Chinese goods. Steel and aluminum imports will be subject to 25% tariffs beginning March 12. On Monday, Trump also praised upcoming duties on imported agricultural items, which White House press secretary Karoline Leavitt said are part of the wide reciprocal tariffs he has pledged to nations who impose tariffs on U.S. goods.

Economists fear that tariffs might raise prices for American consumers.  Investors responded strongly to Monday's announcement that tariffs will be implemented as planned, with key US indexes falling approximately 2% on the day.

Nonetheless, the Trump administration remains convinced that tariffs are the best way to grow US manufacturing and attract foreign investment. Commerce Secretary Howard Lutnick said Monday that the computer chipmaker TSMC has increased its investment in the United States due to the threat of further 25% tariffs.

Trump also intends to implement "reciprocal" tariffs in April that will equal the rates paid by other nations, including any subsidies and value-added taxes imposed by other countries.

The United States president has already announced the elimination of exemptions from his 2018 tariffs on steel and aluminum, as well as duties on automobiles, computer chips, copper, and prescription pharmaceuticals.

President Trump has also imposed a 25% tariff on all steel and aluminum imports, which is scheduled to go into effect on March 12.

He has also threatened to slap "reciprocal" tariffs on particular nations, as well as 25% taxes on the European Union.