The New York Stock Exchange during morning trading on Feb. 19, 2025.
The 10-year Treasury yield edged higher on Tuesday as U.S. President Donald Trump's tariffs on Canada, Mexico and China went into effect, escalating fears of a global trade war.
The benchmark 10-year Treasury yield rose more than 3 basis points to 4.216%, reversing course after dropping earlier in the day. The 2-year Treasury yield slid around 3 basis points to 3.949%.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
Trump's 25% tariffs on goods from Mexico and Canada took effect Tuesday. The president imposed an additional 10% duty on Chinese goods, bringing the total amount of new tariffs on China to 20%.
We've got the news you need to know to start your day. Sign up for the First & 4Most morning newsletter — delivered to your inbox daily. Sign up here.
In retaliation, China announced it will impose additional tariffs of up to 15% on some U.S. goods starting March 10. The new Chinese tariffs primarily affect U.S. agricultural products, such as corn and soybeans, which will face additional duties of 15% and 10%, respectively.
Canadian Prime Minister Justin Trudeau said Canada will be implementing 25% tariffs on 155 billion Canadian dollars' ($107 billion) worth of American goods. Trump said in response he would match any retaliatory tariffs from the country.
Mexican President Claudia Sheinbaum said the U.S.' Southern neighbor would respond with tariffs and other tools that would be announced this weekend.
Money Report
Investors are also looking ahead to February's all-important jobs data due Friday.
