President Trump has announced that tariffs imposed on three of the U.S.’s biggest trading partners will go into effect by the end of the day, Thursday, May 31st. Earlier this year, Trump announced a 25% tariff on steel and 10% on aluminum imports for the European Union, Canada, and Mexico, but agreed to give an exemption until tomorrow, June 1st, while the countries negotiated.

This announcement today from Trump could complicate the North America Trade deal and place the United States under scrutiny from some of their closest allies. It also has the potential to cause a spike in prices on everyday products for Americans.

Canada and the European Union have both announced that they will retaliate if the tariffs go into effect. According to the EU, a 25% tariff will be placed on U.S. products, affecting peanut butter, denim, cigarettes, and motorcycles. Canada has also confirmed they will respond to the tariffs by taking measures to ensure their workers and trade interests are defended. Imposing tariffs on Canada and Mexico will most likely set back negotiations for NAFTA, the North American Free Trade Agreement.

The United States announced earlier this week that they are going forward with the $50 billion worth of tariffs on Chinese products.

Shapiro will continue to monitor the situation and provide updates as they become available.