Investors are bracing for a looming hit to US corporate profits and pressure on inflation after President Donald Trump on Saturday signed an executive order imposing tariffs on its largest trading partners, with markets seen as not having fully factored in risks from higher levies on foreign imports.
The president's executive order imposes a 25% tariff on goods entering the country from Mexico and Canada and 10% on imports from China, with what the White House described as "tentative plans" for these to come into effect on Tuesday at 12:01 a.m. ET.
On Friday, Trump said nothing could be done by the three countries to forestall the tariffs, although he did raise the prospect of exempting oil from Canada. The tariffs include a 10% levy on all Canadian energy supplies imported by the United States.