Trump says tariffs on Mexico and Canada will go into effect overnight as planned

President Trump said Monday that he has decided to move forward with 25% tariffs on nearly all goods imported from Mexico and Canada, after taking a month for aides to negotiate a potential reprieve. 

The tariffs go into effect at 12:01 a.m. on Tuesday, hours before Mr. Trump's first joint address to Congress in the evening. On Monday, a reporter asked the president if there is room left for Canada and Mexico to arrive at a deal 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."

Hours earlier, Commerce Secretary Howard Lutnick said Trump advisers were "going to talk about" the tariff deadline and the president would make his decision Monday afternoon. 

Mr. Trump has wielded tariffs as an instrument to extract concessions from foreign governments and encourage manufacturing in the U.S. "It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid, or paid off in some other form," he said at the White House, after announcing a $100 billion investment by a Taiwanese semiconductor company. "And now we're using them."

The tariffs came in response to what Mr. Trump views as Mexico and Canada's irresponsible handling of the southern and northern border, including fentanyl entering the United States. Both countries won last-minute delays on the tariffs in February after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau vowed to do more to crack down on fentanyl and illegal border crossings.

The president also plans to impose an additional 10% tariff on imports from China, on top of those already in place. And 25% tariffs on steel and aluminum imports kick in March 12. On Monday, Mr. Trump also celebrated anticipated tariffs on imported agricultural products, which White House press secretary Karoline Leavitt said are a part of the sweeping reciprocal tariffs he's promised for nations that impose tariffs on U.S. goods. 

Economists warn that tariffs may lead to higher prices for American consumers. Investors reacted negatively to Monday's news that the tariffs will take effect as planned, with major U.S. indices down at least 2% in midday trading.