Category: Business

(NEW YORK) — Since Elon Musk went to Washington, D.C., to slash the government alongside President Donald Trump, the stock of his electric car company Tesla has taken a significant hit, tumbling nearly 48% this year. During an interview this week, Musk addressed the difficulties.

“You’re giving up your other stuff,” Fox Business’ Larry Kudlow asked Musk during an interview. “How are you running your other businesses?”

“With great difficulty,” Musk replied with a sigh.

On Monday, Tesla stock closed down 15% after its worst trading day in five years. Stock in the company has dropped every week since Musk went to Washington, wiping out more than $700 billion in market value. And Musk’s personal net worth has dropped $148 billion since Inauguration Day, according to the Bloomberg Billionaire Index.

But it’s not just Musk who is taking a hit. The stock plunge has caused outrage among some shareholders, who have publicly questioned Musk’s commitment to his electric vehicle company or called on the Tesla board to replace him.

Another group that’s now sounding the alarm: pension fund managers.

“This is a real cost to real people,” Illinois State Treasurer Michael Frerichs told ABC News. “We’re talking about firefighters, police officers, nurses who work in public. Their retirement dollars are at stake.”

Frerichs, a Democrat, said he believes the drop in stock is due to Musk’s work leading the governmental cost-cutting efforts at the Department of Government Efficiency, or DOGE. It’s deeply political work, Frerichs says, that’s driving half the country away from buying his cars.

“Michael Jordan was famous here for not being involved in Democrat politics, because, as he said, even Republicans buy sneakers, and he knew he didn’t want to lose those customers,” Frerichs said.

New York City Comptroller Brad Lander, who oversees approximately $1.2 billion in Tesla stock through the city’s pension funds, echoed that sentiment.

“There’s no real leadership. It is at the bottom of his list. And so we have not had at Tesla a CEO focused on selling EVs, on growing the company, on making money and returns for shareholders,” Lander told ABC News.

Lander, a Democrat who is running for mayor in New York City, said he still has faith in the Tesla stock — but that it won’t be endless.

“But look, if they can’t count on this stock, you know, and we have to look elsewhere in the marketplace, that’s how this works,” Lander said.

Tesla representatives did not reply to a request for comment from ABC News

Its not just Democrats who have called for answers from Musk. Barstool Sports founder Dave Portnoy — who supported Trump in the 2024 election — said he had to “raise his eyebrows” as a stockholder himself.

“I like DOGE, I like what they’re doing,” Portnoy said in an interview on Fox Business last month. “But let me tell you this. If you are going to send out — and you got to call it both ways — if you are going to send emails to federal workers and say, ‘What have you done for the last five days,’ I think Tesla shareholders are entitled to ask their CEO, Elon Musk, ‘What have you done for Tesla the last five days?'”

“Seemingly all he cares about right now is DOGE,” Portnoy said. “Now, could it be coincidence the stock is down 25% since he really started this? I guess. But I think it’s fair as a shareholder of Tesla to say, ‘What are you doing for shareholders?'”

Some who are critical of Musk’s role in cutting the federal workforce have targeted Tesla, vandalizing vehicles and protesting at dealerships around the country.

“We’re here today rallying against Elon and what he’s done,” one Florida protester, Jeff Finkelstein, told a local news outlet. “Ever since Trump’s been in, it’s been more about Musk than Trump and we’re just showing our frustration.”

In Massachusetts, police asked the public for help after a suspect allegedly vandalized Teslas with images of Musk. The suspect, when confronted, said he had a right to do so because it’s his “free speech,” according to a social media post.

Musk himself replied to the post, writing, “Damaging the property of others, aka vandalism, is not free speech!”

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(NEW YORK) — U.S. stocks dropped in early trading on Monday, suffering widespread losses a day after President Donald Trump declined to rule out the possibility of a recession.

The Dow Jones Industrial Average fell 515 points, or 1.2%; while the S&P 500 declined 1.4%. The tech-heavy Nasdaq plummeted nearly 2%.

Tesla, the electric carmaker led by Elon Musk, sank nearly 6%. United Airlines and Delta each fell more than 5.5%.

The selloff extended a drop-off from the previous week amid uncertainty stoked by Trump levying tariffs against Canada, Mexico and China, some of which were withdrawn or delayed. The S&P 500 recorded its worst week since September.

When asked about a potential recession in an interview broadcast on Sunday, Trump said tariffs imposed in recent days could bring about a “period of transition.”

“I hate to predict things like that,” Trump told Fox News in an interview taped on Thursday. “It takes a little time, but I think it should be great for us.”

In response to a question later on Sunday about his reluctance to rule out a recession, Trump said: “I tell you what, of course you hesitate. Who knows?”

Since Inauguration Day, the Dow Jones Industrial Average has fallen 2.5%. The S&P 500 has dropped 5% over that period, while the Nasdaq has plummeted 9%.

The market slowdown has coincided with some worse-than-expected overall economic performance.

A jobs report on Friday showed U.S. employers hired 151,000 workers last month, falling short of the expected 170,000 jobs added.

In February, a key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said last month. The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed.

Still, some measures of consumer sentiment improved. Consumers’ assessment of current business conditions moved higher, while an uptick in purchasing plans for a home extended a monthslong recovery.

Mortgage rates also have dropped for seven consecutive weeks, FreddieMac data showed. The average rate for a 30-year fixed mortgage stands at 6.63%, its lowest level since December.

This is a developing story. Please check back for updates.

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(NEW YORK) — For the last 130 years, four generations of Ernest Lepore’s family have baked the pastries – cream puffs, cannoli, sfogliatelle – that have come to define Manhattan’s Little Italy neighborhood, withstanding wars, economic downturns and drastic changes to the neighborhood that his family calls home.

But with the soaring cost of eggs – a staple ingredient in nearly half their products – it’s becoming increasingly difficult for Ferrara Bakery to avoid raising their prices.

“We can’t keep passing on costs to our guests,” Ferrara’s president, Ernest Lepore, told ABC News. “As you move closer to Easter, eggs are just growing exponentially in price. I can’t do anything about it.”

Egg prices have skyrocketed over the last year, reaching historic highs, and wholesale shoppers like small businesses were paying over $8 for a dozen eggs last week. According to the latest USDA report, released Friday, the national average wholesale price has dropped slightly to $6.85 per dozen.

However, many grocery stores sell their eggs at a loss to get customers in the door, bringing the average retail price of a dozen eggs to just under $5. According to the Bureau of Labor Statistics, the average price of a dozen eggs at the grocery store reached a record high of $4.95 in January 2025. More, the USDA predicted that prices might increase 40 percent this year, and experts are warning that those prices might stay high even if the supply of eggs in the U.S. rebounds.

But small businesses, unlike grocery shoppers, are tied to the market wholesale price, making these surging costs particularly devastating.

Theodore Karounos, owner of Square Diner in New York’s downtown neighborhood of Tribeca, said that translates into tens of thousands of dollars in additional yearly costs for him.

“If things hold up at this price, and we stay as busy as we were last year, I’ll pay $70,000 more for eggs than I did last year,” he told ABC News. “I can’t just absorb that hit for the next nine months.”

The exorbitant costs are a result of a nationwide shock to supply, brought about by a ravaging outbreak of the avian flu. The Centers for Disease Control and Prevention reports that over 166 million commercial poultry birds have been affected since 2022, when the outbreak began. But the last few months have been especially devastating.

“In just four months, we’ve lost 52 million layers and pullets within our nation’s egg supply, which is vastly different than any other outbreak that we’ve seen in the past.” Karyn Rispoli, managing editor of Expana, a firm that surveys and tracks the price of eggs, told ABC News. “The biggest difference of late is just that it has been more lethal and really devastated our nation’s egg supply.”

The avian flu has wreaked havoc on poultry flocks across the country. As a result, Rispoli says that the nation’s supply of egg-laying hens is at nearly a ten-year low. Once one chicken is infected, farmers are forced to cull the remainder, after which comes the challenge of repopulating their flocks.

But even as the U.S. faces an egg shortage, demand for the commodity remains relatively constant, creating a perfect storm for egg prices to soar. Consequently, those small businesses that rely on eggs, like Ferrara Bakery and Square Diner, are forced to make difficult decisions.

Unlike larger restaurant chains like Denny’s and Waffle House, which have adjusted to the surging costs by adding an egg surcharge to their menu item prices, smaller businesses are less inclined to follow suit, according to Dartmouth College economics professor Bruce Sacerdote.

“In the case of a restaurant, they aren’t necessarily able to pass on the full price increase. We’re not talking about a simple commodity where the markets clear immediately and you just have to pass on the full price increase,” he told ABC News. “Restaurants may be taking a hit to their margins in order to not pass on the full price increase.”

At Tom’s Restaurant on New York City’s Upper West Side – famous as the setting for the fictional Monk’s Café in the TV series “Seinfeld” – the soaring cost of eggs means that co-owner John Ieromonahos is spending an additional $2,000 a week to pay for eggs to continue supplying the restaurant, where approximately 70 percent of their business is breakfast.

“Of course, we don’t want to charge extra to customers,” Ieromonahos said. “This is not our customer’s fault, but I don’t know how long we’re going to last without charging extra.”

At The Hungarian Pastry Shop in Manhattan, owner Philip Binioris told ABC News that he’s trying his best not to pass the higher cost of eggs on to consumers, though he, too, isn’t sure how long he can absorb the increasingly prohibitive cost.

“It’s frustrating. I would like to not raise our prices. I think that we have fair prices, and I like to be able to keep them stable,” he said. “I’m just kind of waiting to see how bad this gets before I make a decision on how I’m going to change prices. It’s tight.”

While consumers, small businesses and their customers continue to shell out more for eggs amid the avian flu outbreak, the nation’s largest producer and distributor of eggs has reported soaring profits.

Cal-Maine Foods, according to SEC filings, saw an over three-fold increase in their gross profits in their fiscal year 2023, at the dawn of the bird flu outbreak. And according to their most recent filing, their gross profits are up 342% through the second quarter of their fiscal year 2025 versus the previous fiscal year.

Rispoli also told ABC News that grocery shoppers could see increased prices even when the egg supply does begin to recover, as grocery stores may seek to recoup lost earnings. She said that happened when egg prices soared at the beginning of the current avian flu outbreak.

“In the aftermath of that, as the market corrected and came down substantially, retailers were then holding shelf prices higher to try and recapture some of the margin that they had previously forfeited,” she said.

Back at Ferrara in Little Italy, Lepore is searching everywhere to find other ways to save money so he doesn’t have to increase their prices. He recently upgraded his building’s cooling system and improved his refrigerators, saving money on electricity in the long term. He also is taking a lesson from his grandparents, who kept the business going through the Great Depression, by baking smaller batches of goods in order to more easily keep product fresh and avoid waste.

“Eggs are determining production,” he said. “As we are going into Easter, I am going to be baking at the last minute not to waste an egg, because there can’t be any left over.”

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(WASHINGTON) — The U.S. added fewer jobs than economists expected in February, the first full month under President Donald Trump, according to government data released on Friday.

Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.

Stock market futures appeared to shrug off the disappointing report. Each of the three major stock indexes ticked up in the minutes following the data release.

Hiring picked up from January but fell slightly below the average number of jobs added each month last year.

Employment increased in a range of sectors, including health care, social assistance and finance, data showed.

However, the federal government shed 10,000 workers in February, indicating potential impact from employee cuts initiated by the Trump administration.

The fresh jobs report arrives during a turbulent period for U.S. stocks and trade relations in the aftermath of tariffs issued by the Trump administration earlier this week.

Despite the temporary withdrawal of some tariffs on Thursday, stocks dropped as fallout from the policy continued to roil markets.

The Dow Jones Industrial Average on Thursday tumbled about 425 points, or 1%, while the S&P 500 fell 1.7%. The tech-heavy Nasdaq sank 2.6%.

The tariffs stand among a flurry of economy-related directives issued since Trump took office, including spending cuts and the targeting of diversity, equity and inclusion initiatives.

The Trump administration has also terminated tens of thousands of federal employees, though such cuts are not expected to appear fully in the February report, in part due to the timing of surveys conducted by officials who collect the data.

Meanwhile, the economy is weathering a bout of resurgent inflation that stretches back to the final months of the Biden administration.

Consumer prices rose 3% in January compared to a year ago, registering a percentage point higher than the Federal Reserve’s target of 2%.

Egg prices, a closely watched symbol of rising costs, soared 53% in January compared to a year ago. BIrd flu has decimated the egg supply, lifting prices higher.

In February, a key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said last month.

The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.

Still, some measures of consumer sentiment improved. Consumers’ assessment of current business conditions moved higher, while an uptick in purchasing plans for a home extended a monthslong recovery.

Mortgage rates have dropped for seven consecutive weeks, FreddieMac data showed. The average rate for a 30-year fixed mortgage stands at 6.63%, its lowest level since December.
 

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(WASHINGTON) — A fresh jobs report to be released on Friday will offer a snapshot of U.S. economic performance over the first full month under President Donald Trump.

Economists expect employers to have hired 170,000 workers in February. That figure would mark a slight uptick from 143,000 jobs added in January, and it would nearly match the average number of jobs added each month last year.

The unemployment rate is expected to hold steady at 4%, a historically low reading.

The data release is set to coincide with a turbulent period for U.S. stocks and trade relations in the aftermath of tariffs issued by the Trump administration earlier this week.

Despite the temporary withdrawal of some tariffs on Thursday, stocks dropped as fallout from the policy continued to roil markets.

The Dow Jones Industrial Average tumbled about 425 points, or 1%, while the S&P 500 fell 1.7%. The tech-heavy Nasdaq sank 2.6%.

The tariffs stand among a flurry of economy-related directives issued since Trump took office, including spending cuts and an assault on diversity, equity and inclusion initiatives.

The Trump administration has also terminated tens of thousands of federal employees, though such cuts are not expected to appear in the February report, in part due to the timing of surveys conducted by officials who collect the data.

Meanwhile, the economy is weathering a bout of resurgent inflation that stretches back to the final months of the Biden administration.

Consumer prices rose 3% in January compared to a year ago, registering a percentage point higher than the Federal Reserve’s target of 2%.

Egg prices, a closely watched symbol of rising costs, soared 53% in January compared to a year ago. BIrd flu has decimated the egg supply, lifting prices higher.

In February, a key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said last month.

The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.

Still, some measures of consumer sentiment improved. Consumers’ assessment of current business conditions moved higher, while an uptick in purchasing plans for a home extended a monthslong recovery.

Mortgage rates have dropped for seven consecutive weeks, FreddieMac data showed. The average rate for a 30-year fixed mortgage stands at 6.63%, its lowest level since December.

Copyright © 2025, ABC Audio. All rights reserved.

(NEW YORK) — President Donald Trump on Thursday announced a one-month delay of tariffs on some products from Mexico.

The temporary exemption will lift tariffs for all Mexican goods compliant with United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

The announcement came after a conversation between Trump and Mexican President Claudia Sheinbaum, Trump said.

“Our relationship has been a very good one, and we are working hard, together, on the Border, both in terms of stopping Illegal Aliens from entering the United States and, likewise, stopping Fentanyl. Thank you to President Sheinbaum for your hard work and cooperation!” Trump said in a post on Truth Social.

Minutes later, Sheinbaum reciprocated in similar fashion.

“We had an excellent and respectful call in which we agreed that our work and collaboration have yielded unprecedented results, within the framework of respect for our sovereignties,” Sheinbaum said in a post on X.

Trump made the announcement soon after Commerce Secretary Howard Lutnick said a one-month delay of tariffs on Mexico and Canada would likely apply to all products compliant with the USMCA.

Trump negotiated the USMCA during his first term, signing the agreement with Canada and Mexico in 2018.

“That which is part of President Trump’s deal with Canada and Mexico [is] likely to get an exemption from these tariffs,” Lutnick told CNBC on Thursday morning.

Despite the effort to ease some tariffs, stocks dropped on Thursday as fallout from the policy continued to roil markets.

The Dow Jones Industrial Average fell about 400 points, or 0.9%, while the S&P 500 fell 1.5%. The tech-heavy Nasdaq sunk 2%.

The selloff erased some of the market gains delivered a day earlier after President Donald Trump gave U.S. automakers a one-month reprieve from the tariffs. Duties on a host of other goods remained in place, however.

The U.S. earlier this week slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

The one-month delay in auto tariffs triggered a rally for shares of U.S. carmakers on Wednesday, but the largest companies in the sector turned down in early trading on Thursday.

Shares of Ford dropped 1.5%, while General Motors fell nearly 3%. Stellantis — the parent company of Chrysler and Jeep — saw its stock price fall 2%.

Tesla, the electric carmaker led by Elon Musk, tumbled 4.5% on Thursday.

The tariffs are expected to pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.

The American Automotive Policy Council, or AAPC, a trade group that represents Ford, General Motors and Stellantis, praised the one-month tariff exemption.

“American Automakers Ford, GM and Stellantis applaud President Trump for recognizing that vehicles and parts that meet the high US and regional USMCA content requirements should be exempt from these tariffs,” AAPC President Matt Blunt told ABC News in a statement.

This is a developing story. Please check back for updates.

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(NEW YORK) — U.S. stocks tumbled in early trading on Thursday as fallout from the Trump administration’s tariffs continued to roil markets.

Stocks recovered some of the losses within hours, however, after Commerce Secretary Howard Lutnick said a one-month delay of tariffs on Mexico and Canada would likely apply to all products compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

Trump negotiated the USMCA during his first term, signing the agreement with Canada and Mexico in 2018.

“That which is part of President Trump’s deal with Canada and Mexico [is] likely to get an exemption from these tariffs,” Lutnick told CNBC on Thursday morning.

The Dow Jones Industrial Average fell about 150 points, or 0.35%, while the S&P 500 fell 0.7%. The tech-heavy Nasdaq dipped 0.9%.

The selloff erased some of the market gains delivered a day earlier after President Donald Trump gave U.S. automakers a one-month reprieve from the tariffs. Duties on a host of other goods remained in place, however.

The U.S. earlier this week slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

The one-month delay in auto tariffs triggered a rally for shares of U.S. carmakers on Wednesday, but the largest companies in the sector turned down in early trading on Thursday.

Shares of Ford dropped 1.5%, while General Motors fell nearly 3%. Stellantis — the parent company of Chrysler and Jeep — saw its stock price fall 2%.

Tesla, the electric carmaker led by Elon Musk, tumbled 4.5% on Thursday.

The tariffs are expected to pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.

The American Automotive Policy Council, or AAPC, a trade group that represents Ford, General Motors and Stellantis, praised the one-month tariff exemption.

“American Automakers Ford, GM and Stellantis applaud President Trump for recognizing that vehicles and parts that meet the high US and regional USMCA content requirements should be exempt from these tariffs,” AAPC President Matt Blunt told ABC News in a statement.

This is a developing story. Please check back for updates.
 

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(NEW YORK) — The stock market surged on Wednesday afternoon after the Trump administration granted automakers a one-month exemption from tariffs imposed a day earlier.

The Dow Jones Industrial Average climbed about 550 points, or 1.3%; while the S&P 500 jumped 1.25%. The tech-heavy Nasdaq increased 1.5% on Wednesday.

Press Secretary Karoline Leavitt said President Donald Trump had ordered the delay of auto tariffs after a request from the Big 3 U.S. automakers: Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler.

“The president is giving them an exemption for one month so they’re not at an economic disadvantage,” Leavitt said during a press conference at the White House.

The tariffs are expected to pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.

While easing some tariffs, Trump criticized Canada on Wednesday for what he described as failure to take the steps necessary for the United States to withdraw all of the tariffs imposed a day earlier.

Trump said he held a call with Canadian Prime Minister Justin Trudeau on Wednesday during which the two leaders discussed a path to U.S. withdrawal of the tariffs, Trump said, noting such an outcome would require sufficient action by Canada to address drug trafficking.

A week ago, Trump alleged that illicit drugs such as fentanyl had continued to enter the U.S. through Mexico and Canada despite agreements reached last month to address the issue.

In a post on Truth Social on Wednesday, Trump said, “nothing has convinced me” that the flow of fentanyl into the U.S. had stopped.

“[Trudeau] said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner!” Trump said.

Since September, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol, or CBP, a federal agency. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.

Canadian Prime Minister Justin Trudeau sharply criticized the tariffs on Tuesday, calling them a “dumb” policy that does not “make sense.”

The reason for the tariffs is based on a false allegation about Canada as a major source of drugs entering the U.S., Trudeau added.

Persistent tensions between the U.S. and Canada emerged after China issued a warning on Tuesday night that it stands ready for any “type of war” with the United States in the aftermath of tariffs imposed by the Trump administration.

The U.S. slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

A spokesperson for the Chinese foreign ministry said the tariffs would not lead to a resolution of U.S. concerns about fentanyl originating in China.

“If the U.S. truly wants to solve the fentanyl issue, then the right thing to do is to consult with China on the basis of equality, mutual respect and mutual benefit to address each other’s concerns,” Chinese spokesperson Lin Jian said at a press conference late Tuesday.

“If the U.S. has other agenda in mind and if war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” the spokesperson added.

The comments came soon after the Trump administration imposed 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.

“The retaliatory tariffs that China is imposing is very specific and directly targeted at American farmers, who are mostly in red states and mostly voted for Trump,” Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis, told ABC News.

“So China is trying to create pain where it matters for Trump, and it’s hoping to get Trump to the negotiating table and offer relief for this group of Trump supporters,” Thomas added.

The recent duties will be placed on top of similar tariffs imposed by China during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.

The new Chinese tariffs are set to come into effect for goods shipped out March 10.

In a series of social media posts last month, Trump said he would place tariffs on Canada, Mexico and China for hosting the manufacture and transport of illicit drugs that end up in the U.S.

During an address to a joint session of Congress on Tuesday night, Trump also sharply criticized tariffs imposed by the Chinese government on U.S. goods.

“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement on Tuesday.

Commerce Secretary Howard Lutnick said on Tuesday afternoon that Trump may soon offer Canada and Mexico a pathway to relief from tariffs placed on some goods covered by North America’s free trade agreement.

Lutnick did not mention a potential compromise with China.

ABC News’ Selina Wang, Kevin Shalvey, Karson Yiu and Ellie Kaufman contributed to this report.

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(NEW YORK) — President Donald Trump criticized Canada on Wednesday for what he described as failure to take the steps necessary for the United States to withdraw tariffs imposed a day earlier.

Trump said he held a call with Canadian Prime Minister Justin Trudeau on Wednesday during which the two leaders discussed a path to U.S. withdrawal of the tariffs, Trump said, noting such an outcome would require sufficient action by Canada to address drug trafficking.

A week ago, Trump alleged that illicit drugs such as fentanyl had continued to enter the U.S. through Mexico and Canada despite agreements reached last month to address the issue.

In a post on Truth Social on Wednesday, Trump said, “nothing has convinced me” that the flow of fentanyl into the U.S. had stopped.

“[Trudeau] said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner!” Trump said.

Since September, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol, or CBP, a federal agency. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.

Canadian Prime Minister Justin Trudeau sharply criticized the tariffs on Tuesday, calling them a “dumb” policy that does not “make sense.”

The reason for the tariffs is based on a false allegation about Canada as a major source of drugs entering the U.S., Trudeau added.

Persistent tensions between the U.S. and Canada emerged after China issued a warning on Tuesday night that it stands ready for any “type of war” with the United States in the aftermath of tariffs imposed by the Trump administration.

The U.S. slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

A spokesperson for the Chinese foreign ministry said the tariffs would not lead to a resolution of U.S. concerns about fentanyl originating in China.

“If the U.S. truly wants to solve the fentanyl issue, then the right thing to do is to consult with China on the basis of equality, mutual respect and mutual benefit to address each other’s concerns,” Chinese spokesperson Lin Jian said at a press conference late Tuesday.

“If the U.S. has other agenda in mind and if war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” the spokesperson added.

The comments came soon after the Trump administration imposed 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.

“The retaliatory tariffs that China is imposing is very specific and directly targeted at American farmers, who are mostly in red states and mostly voted for Trump,” Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis, told ABC News.

“So China is trying to create pain where it matters for Trump, and it’s hoping to get Trump to the negotiating table and offer relief for this group of Trump supporters,” Thomas added.

The recent duties will be placed on top of similar tariffs imposed by China during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.

The new Chinese tariffs are set to come into effect for goods shipped out March 10.

In a series of social media posts last month, Trump said he would place tariffs on Canada, Mexico and China for hosting the manufacture and transport of illicit drugs that end up in the U.S.

During an address to a joint session of Congress on Tuesday night, Trump also sharply criticized tariffs imposed by the Chinese government on U.S. goods.

“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement on Tuesday.

Commerce Secretary Howard Lutnick said on Tuesday afternoon that Trump may soon offer Canada and Mexico a pathway to relief from tariffs placed on some goods covered by North America’s free trade agreement.

Lutnick did not mention a potential compromise with China.

ABC News’ Selina Wang, Kevin Shalvey, Karson Yiu and Ellie Kaufman contributed to this report.

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(NEW YORK) — Price hikes for gasoline and groceries could reach shoppers within days in the aftermath of tariffs imposed by the Trump administration, experts told ABC News.

Some products such as auto fuel and fresh produce will be hit with near-instant price increases, while others like cars, laptops and children’s toys will show hikes in the coming weeks and months, they said.

The Trump administration imposed 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

Mexico, Canada and China make up the three largest U.S. trading partners, accounting for a vast array of products ranging from everyday essentials to big-ticket purchases.

Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said.

“Higher tariffs will translate into higher prices for some products very quickly,” Mark Zandi, chief economist at Moody’s Analytics, told ABC News. “It will take longer for everything from vehicles to appliances to consumer electronics.”

In a series of social media posts last month, Trump said he would place tariffs on Canada, Mexico and China for hosting the manufacture and transport of illicit drugs that end up in the U.S.

During an address to a joint session of Congress on Tuesday night, Trump also sharply criticized tariffs imposed on U.S. goods by Canada, Mexico and China.

“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement on Tuesday.

The U.S. imported $38.5 billion in agricultural goods from Mexico in 2023, making it the top recipient of such products, U.S Department of Agriculture data showed. Those imports include more than $3 billion worth of fresh fruits and vegetables.

Roughly 90% of avocados eaten in the U.S. last year originated in Mexico, USDA data showed. Other products with a high concentration of Mexican imports include tomatoes, cucumbers, bell peppers, jalapeños, limes and mangos.

These products will show price increases within days because fresh produce cannot be held on shelves for an extended period, meaning imports slapped with tariffs will soon reach shoppers, Jason Miller, a professor of supply chain management at Michigan State University, told ABC News.

“That’s what you’d expect to be hit the fastest,” Miller said.

A similar dynamic will play out for gasoline prices for some U.S. drivers living in regions that rely on crude oil from Mexico and Canada, said Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry.

Mexico and Canada account for 70% of U.S. crude oil imports, which make up a key input for the nation’s gasoline supply, according to the U.S. Energy Information Administration, a government agency.

Those imports come primarily from Canada, which sends crude oil to U.S. refineries built specifically to process the crude and redistribute it as gasoline for cars and trucks. Gasoline that originates as Canadian crude reaches customers in the upper Midwest as well as some along the East and West coasts, Fitzgerald said.

Gas refiners and retailers retain the ability to alter prices multiple times per day, meaning price hikes may have hit some drivers as early as Tuesday, he added.

“Think about a digital board at a gas station – a couple taps to a button and the price goes up,” Fitzgerald said.

A second wave of price increases will hit a wide-ranging set of products over the coming weeks and months, some experts said.

A large share of consumer electronics – such as laptops, video game systems and smartphones – enter the U.S. from China, meaning the new tariffs will filter through into higher prices for those goods, they said.

Price hikes will ultimately hit children’s toys, since many of those products also originate in China, Miller said.

Some U.S. retailers appear to have been stockpiling children’s toys in anticipation of the tariffs, but the stored items will run out soon, he added.

“You probably don’t get much of a reprieve beyond April,” Miller said.

Prices for Mexico-made beer and tequila will also rise over the coming months, as will the cost of Canada-made maple syrup, Miller added.

Canada is the top source of imported U.S. eggs, adding stress to a supply chain already decimated by an avian flu outbreak.

Egg prices skyrocketed 53% over the past year, U.S. Bureau of Labor Statistics data showed last month.

Since the U.S. relies overwhelmingly on domestic egg production, however, a potential price increase for Canadian eggs is not expected to meaningfully drive up egg prices at U.S. stores, Miller said.

“But it certainly doesn’t make things better,” Miller added.

ABC News’ Jacob Eufemia contributed to this report.

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