Mexico’s annual inflation accelerated roughly in line with economists’ forecasts in early February, holding near the central bank’s estimates and keeping chances of a sixth straight interest rate cut in play.

MEMPHIS, Tenn. — As of 12:01 a.m. Tuesday, a new reality has set in for businesses and consumers as 25% tariffs on products imported from both Mexico and Canada went into effect.

Donald Trump has imposed tariffs on China, Canada and Mexico and this move will hit the US economy. The US President has said that 25 percent American tariffs on imports from Canada and Mexico will take effect from Tuesday after the 30-day pause on duties,

The Realpolitik of U.S. trade policies and tariffs are driven by the fact that China is the top priority for U.S. national security and economic security in Cold War Two.

Commerce Secretary Howard Lutnick said later on Tuesday that the U.S. would likely meet Canada and Mexico “in the middle,” with an announcement coming as soon as Wednesday. Lutnick told Fox Business News the tariffs would not be paused, but that Trump would reach a compromise.

Further U.S. tariffs on imports would cause prices to rise and consumers to buy fewer products, Adidas chief executive officer Bjorn Gulden said on Wednesday as the business navigates higher levies implemented by President Donald Trump's administration on China,

"Tariffs are about making America rich again and making America great again," Trump said in his address to Congress.

Commerce Secretary Howard Lutnick said there might be carve-outs coming to the 25% tariffs placed on Canada and Mexico by President Trump.