Global trade fight starts as China, Canada, Mexico retaliate

Oil prices fell Tuesday morning as President Donald Trump’s tariffs on Canada and Mexico coincide with higher supplies from OPEC+, souring the outlook for crude.

U.S. crude oil was down 70 cents, or 1.02%, at $67.67 per barrel by 9:20 a.m. ET, while global benchmark Brent traded $1.02, or 1.42%, lower at $70.60 per barrel.

Trump’s tariffs include 10% duties on energy imports from Canada. Many U.S. refiners, particularly in the Midwest, are dependent on heavy crude imports from Canada.

While the levies on energy imports will likely disrupt crude flows in North America, broader 25% tariffs on the two largest trading partners of the U.S. could slow economic growth and depress oil demand.

Shares of refiners Marathon Petroleum, Phillips 66 and Valero all fell in premarket trading.

Meanwhile, OPEC+ affirmed on Monday that it will gradually return 2.2 million barrels per day to the market starting in April, casting a further shadow over the supply-and-demand balance.

— Spencer Kimball

U.S. President Donald Trump’s 25% tariffs on goods from Mexico could lead to higher produce prices as early as this week, according to Target’s Brian Cornell.

The company’s CEO said on Tuesday that Target relies on Mexico during the winter season for a “significant” amount of supply for some categories like fruits and vegetables, meaning that the levies could prompt the company to soon raise prices on those goods.

“Those are categories where we’ll try to protect pricing, but the consumer will likely see price increases over the next couple of days,” he said on CNBC’s “Squawk Box” on the heels of Target’s latest quarterly results.

Cornell added that strawberries, avocados and bananas were some of the key produce that could see price increases.

“We’re going to try and make sure we can do everything we can to protect pricing, but if there’s a 25% tariff, those prices will go up,” he also said.

— Sean Conlon, Jacob Pramuk, Gabrielle Fonrouge

Mexican President Claudia Sheinbaum is now speaking about the U.S. tariffs, saying that there is no justification for the new levies on imports from her country.

Sheinbaum said she will announce retaliatory tariffs this weekend.

“We have decided to respond with tariff and non-tariff measures that I will announce on Sunday,” Sheinbaum said.

— Jesse Pound, Fred Imbert

Legendary investor Warren Buffett made a rare comment over the weekend on Trump’s tariffs, warning their negative effects on the consumer.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” said Buffett, whose conglomerate Berkshire Hathaway has large businesses in insurance, railroads, manufacturing, energy and retail.

“Over time, they are a tax on goods. I mean, the tooth fairy doesn’t pay ’em!” the 94-year-old Buffett said with a laugh. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”

— Yun Li

Canadian Prime Minister Justin Trudeau on Monday said retaliatory tariffs on U.S. goods will start Tuesday, if U.S. President Donald Trump follows through with his proposed levies.

Canada will impose tariffs of 25% on C$155 billion ($107 billion) on U.S. goods, with C$30 billion ($20.8 billion) worth of U.S. goods to go into effect on Tuesday, according to a statement. Levies on the remaining C$125 billion ($86.7 billion) will start in 21 days.

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said.

— Sarah Min

While Canada and China have already announced retaliatory tariffs, Mexico has not made a similar proclamation as of Tuesday morning.

Trump and Mexican President Claudia Sheinbaum had previously worked together on border security, but the U.S. president said Monday there was no room left for negotiations.

Target CEO Brian Cornell said Tuesday that the tariffs on Mexico could lead to an increase in produce prices in the coming days.

— Jesse Pound

President Donald Trump confirmed Monday that the U.S. will impose reciprocal tariffs on April 2 against countries that his administration deems are using unfair trade practices.

“Reciprocal tariffs start on April 2,” Trump told reporters at a press conference that was held to announce a $100 billion investment from Taiwan Semiconductor.

The goal of Trump’s policy is reduce the U.S. trade deficit, which he has described as a national security threat in a presidential memorandum signed on Feb. 13.

The European Union is likely to be in the crosshairs when Trump’s reciprocal tariffs take effect. The president has repeatedly criticized the value-added tax on goods and services used in European countries, claiming it puts U.S. companies at a disadvantage.

Trump’s presidential memorandum on reciprocal tariffs specifically calls out the VAT.

Trump threatened during a cabinet meeting last Wednesday to impose 25% tariffs on the EU, claiming the bloc was formed to “screw the United States.”

Total U.S. goods trade with the EU was $975 billion 2024, according to the Office of the U.S. Trade Representative. The U.S. had a goods trade deficit of $235.6 billion with the EU.

— Spencer Kimball

China has moved quickly to strike back against Trump’s latest tariff plans.

The Chinese governments on Tuesday announced retaliatory tariffs on some U.S. goods of up to 15%, starting on March 10, as well as new export controls.

The new tariffs from China are targeted at the U.S. agricultural sector. U.S. corn will face a 15% levy, while soybeans will be hit with a 10% tariff, according to the finance ministry’s website.

The moves come as an additional 10% tariff from the U.S. on Chinese good is set to take effect Tuesday.

China’s relationship with the U.S. is bound to see disagreements, but China will not accept pressuring or threatening, Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, told reporters Tuesday morning.

— Jesse Pound, Evelyn Cheng

The stock market has struggled as investors contend with the expected impacts of President Donald Trump’s tariffs on the economy.

The S&P 500 notched its worst day of 2025 on Monday, with losses steepening in the session after Trump made clear that his planned levies would go into effect. With that decline, the broad index is now in the red on the year.

Stocks with notable connections to countries slapped with tariffs have felt the heat. Ford and General Motors are both down in Tuesday’s premarket, extending losses seen this year. Chipotle, which sources about half of its avocados from Mexico, also pulled back before the bell and is down nearly 10% in 2025.

— Alex Harring

Trump dashed hopes for a last-minute deal that could avoid a trade war with 25% tariffs on goods imported from Canada and Mexico going into place at midnight.

Trump told reporters Monday afternoon there was “no room left for Mexico or for Canada” to negotiate an alternative to the tariffs, which he has threatened to impose for weeks.

Trump on Monday also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty he had slapped on Beijing in early February.

— Yun Li, Kevin Breuninger