The Big Story 

The president told reporters Monday that his 25 percent tariffs on Canadian and Mexican goods will be implemented Tuesday, no matter what either nation does to avoid them.

© AP

“The tariffs, they’re all set. They go into effect tomorrow,” he said, adding there’s “no room left for Mexico or Canada” to make a deal before midnight.

Trump had warned last week that the tariffs will go forward after he delayed them for a month following conversations with the Canadian and Mexican leaders, during which they agreed to action to address the flow of drugs at the border.

The president also announced that reciprocal tariffs will start April 2, which will cover imports from all nations that levy import taxes on U.S. goods.

“So, what they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said Monday.

The stock market took a hit after Trump’s announcements on tariffs. The Dow Jones Industrial Average was down more than 700 points after Trump’s announcement.

Read the full report at TheHill.com.

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Essential Reads 

Key business and economic news with implications this week and beyond:

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Tax Watch 

Welcome to Tax Watch, a new feature in The Hill’s Business & Economy newsletter focused on the fight over tax reform and the push to extend the 2017 Trump tax cuts this year.

Tariffs could partially offset cost of tax cuts

Trump’s decision to go forward with new tariffs comes after the House passed a budget resolution in February for a tax cut and spending bill that could add trillions to the deficit — as much as $5.1 trillion over the next decade, according to a projection by the University of Pennsylvania.

Tariffs on Canada and Mexico could effectively contribute to offsetting some of those costs — which center on an extension of the 2017 Tax Cuts and Jobs Act (TCJA) — though they probably won’t factor into official estimates if they’re levied through administrative rather than congressional actions.

“An earlier implementation of tariffs could meaningfully lower the projected costs of the TCJA, potentially allowing for larger tax cuts than were included in our baseline, which would, in turn, offset some of the drag from the trade war,” Brett Ryan and other Deutsche Bank analysts wrote in a Sunday to investors.

— Tobias Burns

The Ticker 

Upcoming news themes and events we’re watching:

In Other News 

Branch out with more stories from the day:

Dow drops nearly 650 points on worries that Trump’s latest tariffs will slow the economy more

NEW YORK (AP) — U.S. stocks tumbled Monday and wiped out even more of their gains since President …

Good to Know 

Business and economic news we’ve flagged from other outlets:

What Others are Reading 

Top stories on The Hill right now:

Canadian premier says he will cut off electricity exports to US ‘with a smile on my face’

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Attorney General Pam Bondi was duped into thinking she had all the files related to investigations into disgraced financier and convicted sex offender Jeffrey Epstein, she told Fox News host Mark Levin over the weekend while defending Thursday’s widely mocked document dump. Read more

What People Think 

Opinions related to business and economic issues submitted to The Hill: