No Last-Minute Reprieve as 25% Levies Take Effect

Updated at 9:50 a.m., 03.06.25

Even though previous threats to impose tariffs on almost all imports from the United States’ two largest trading partners — Mexico and Canada—were called off at the last minute, President Donald Trump did not offer any such reprieve on Monday as the March 4 deadline approached.

“The tariffs, you know, they’re all set,” Mr. Trump told the New York Times Monday evening. “They go into effect tomorrow.”

That means Americans awoke to a more expensive world this morning, and the ripple effects have just begun.

The levies, a 25 percent surcharge on Mexican and Canadian exports and an additional 10 percent for Chinese goods entering the U.S., began just after midnight Tuesday. 

On Wednesday, Trump did announce a 30-day reprieve for the auto industry, given the integration of parts between the U.S. and the U.S., Canada and Mexico. 

The measures were imposed under the auspice that none of the countries had not done enough to stem the flow of illicit drugs and undocumented migrants into the United States.

Economists generally agree that the tariffs will increase the United States' levies on foreign goods to levels not seen since the 1940s. 

This will likely shatter regional supply chains and raise the cost of products ranging from automobiles to vegetables and, most critically for our readers, construction materials.

Trump’s announcement sent all major indices tumbling sharply lower on Monday: The S&P 500 fell 1.8 percent, its worst one-day drop this year; the Nasdaq Composite slid 2.64%; while the Dow Jones Industrial Average fell approximately 650 points, or 1.48%.

For the year, the S&P 500 is down nearly 32 points, and the Nasdaq is down more than 960 points or 5%; the Dow has remained up overall since Jan. 2, up 647.02 points, or 1.5%.

Yet, at the time of this writing, U.S. stock futures have crept upward, with the S&P up 11 points, Dow Futures up 49 points and Nasdaq futures up 56 points.

Sara Belcher wrote on Yahoo Finance that market moves are more a reflexive act by spooked investors rather than a reflection of actual market conditions.

Kenny Polcari, a senior market strategist at Slatestone Wealth and CEO of Kace Capital Advisors, cited investor panic as a larger problem than tariffs.

“Every time tariffs hit the headlines, the market throws a fit, stocks dive, the media screams trade war, and investors act like it's 2008 all over again," Polcari argued on Yahoo Finance’s Trader Talk podcast "But let's just take a step back. Are tariffs really the disaster that they're made out to be?”

Markets are just an echo

Of course, the stock market is not the economy, and the effect of tariffs remains unknown in the aggregate. Still, when asked whether price increases are coming, one residential roofing contractor in South Florida said they have already prepared to raise prices beginning April 1.

“We already adjusted; just shingles,” the contractor said, noting that SRS Distribution had raised its prices by 8% last month. Roofing Contractor has not independently confirmed that increase.

Comments on LinkedIn following last week’s RC news analysis on the potential effect of tariffs on supply chains and metals garnered a range of views. 

Roger Balser, principal at Balser Wealth Management in Avon, Ohio, an investment advisor specializing in managing global investment portfolios, wrote:

“Tariffs – Prices go up, supply chains get messy. Smart businesses adapt—whiners lose. Regulatory Freeze – Less red tape, fewer headaches. Enjoy it while it lasts—rules always come back. Federal Funding – No free lunch. If you rely on Uncle Sam, better have a Plan B. Labor – Fewer workers, higher costs. Adapt or get buried. Tax Incentives – Congress drags its feet. Stay ahead or pay the price. Bottom line? Winners pivot. Losers panic.”

John Müsster, founder and managing director of HERM, a material life manufacturer, wrote:

“Giving our Pricing include "Door-2-Door (Tax & Delivery included)" .... any policy change and/or tariff increase will have a ZERO impact on our Customers! As a matter of "fact" — HERM will beat any Competitors Quote for "Like Material Lift System by up to 10% (10 present).”

5 takeaways from the new tariffs

• Tariffs Implemented – The U.S. imposed tariffs of 25% on Mexican and Canadian imports and 10% on Chinese goods, increasing costs across industries.
• Market Reaction – Stocks plunged after the announcement, with the S&P 500 dropping 1.8%, Nasdaq 2.64%, and the Dow losing 650 points, though futures later ticked up.
• Supply Chain Disruptions – The tariffs are expected to disrupt regional supply chains, significantly raising costs for construction, automotive, and agriculture industries.
• Investor Sentiment – Some analysts argue that market volatility is driven more by investor panic than by the actual economic impact of tariffs.
• Industry Adaptation – With some roofing contractors raising prices, businesses are adjusting while some manufacturers claim tariff-proof pricing strategies.

And investment banking firm League Park Advisors, an M&A outfit in Cleveland, said that while there may be big shifts in cost and labor, roofing remains a strong M&A space.

Roofing Contractor will remain alert to the shifting sands and keep readers apprised of market movements and related effects on domestic and global supply chains.