Trump says 25% Canada, Mexico tariffs to take effect on Tuesday

U.S. stock prices fall sharply after president's remarks

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U.S. President Donald Trump spoke Monday at an announcement about an investment from Taiwan Semiconductor Manufacturing Company. © Reuters

WASHINGTON (Reuters) -- U.S. President Donald Trump said on Monday that 25% tariffs on goods from Mexico and Canada will definitely take effect on Tuesday, raising fears of a trade war in North America and sending financial markets reeling.

"They're going to have to have a tariff. 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 at the White House. He said there was "no room left" for a deal that would avert the tariffs by curbing fentanyl flows into the United States.

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