Breaking News: Trump tariffs: Commerce’s Lutnick hints at possible tariffs pact with Canada, Mexico….See More

President Donald Trump went forward with sweeping tariffs at midnight on goods imported from Canada and Mexico, while doubling down on punitive duties on China.

Canadian Prime Minister Justin Trudeau announced a 25% retaliatory levy on CA$30 billion worth of U.S. imports, effective immediately. Tariffs on another CA$125 billion in U.S. goods will take effect in 21 days, he added. The action prompted Trump to threaten even more tariffs on Canada.
Mexico’s president said retaliatory tariffs are coming Sunday.
At midnight, 25% tariffs on two U.S. neighbors — Canada and Mexico — went into effect. The president also imposed an additional 10% tariff on Chinese imports, doubling the 10% duty he had slapped on Beijing in early February.
Economists have warned that the president’s aggressive moves could cause negative consequences globally, including triggering inflation that could hurt consumers.

The stock market suffered a dramatic sell-off after Trump’s announcement Monday. The S&P 500 dropped 1.8%, its worst day since December, falling into negative territory for the year. Stocks sold off yet again Tuesday, with the Dow Jones Industrial Average tumbling more than 1,300 points in two days.
On Tuesday afternoon, Commerce Secretary Howard Lutnick took to “Fox Business” and suggested that Trump could reach a compromise with Mexico and Canada on tariffs

Stock futures climb Tuesday night after Commerce’s Lutnick suggests a potential pact on tariffs
Stock futures rose on Tuesday after Commerce Secretary Howard Lutnick suggested that a tariffs compromise could be in the cards.

Futures linked to the Dow Jones Industrial Average popped 266 points, or 0.6%. S&P 500 futures added 0.7%, and Nasdaq-100 futures gained 0.8%.

It marked an about-face from the markets action of the past two days, in which the major averages have sold off sharply on worries over tariffs and their impact on the economy.

Lutnick, speaking on “Fox Business,” said that President Donald Trump could reach a deal with Mexico and Canada on tariffs.

Commerce Secretary Howard Lutnick said on Tuesday that President Trump will “probably” announce a tariffs pact with Canada and Mexico.

He said on “Fox Business” that a compromise with the two countries, which have just become subject to 25% duties, could be unveiled as early as Wednesday.

The levies, which took effect on Tuesday, have weighed on the U.S. stock market. The Dow Jones Industrial Average has lost more than 1,300 points over the past two trading sessions as investors grew concerned on how the tariffs could affect the economy.

Read more from CNBC’s Kevin Breuninger about Lutnick’s comments on the possible compromise here.

S&P 500 wipes out Trump election bump
After the back-to-back losses, the S&P 500 has now lost all of its postelection gains as Trump has ignited a full-blown trade war.

The index fell to a low of 5,732.59 in Tuesday’s broad market sell-off, well below the 5,782.76 close on Election Day, Nov. 5. The S&P 500 did briefly reclaim that level during an afternoon rebound for stocks before settling below it at 5,778.15.