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The Daily Money: Prepare for rising prices


Good morning! It’s Daniel de Visé with your Daily Money, trade war edition.

President Donald Trump's newest import tariffs took effect Tuesday, and some of the targeted countries swiftly responded with tariffs of their own.

Canada and China have announced retaliatory tariffs against the U.S., answering the long-threatened levies by the Trump administration on those countries and Mexico.

How will dueling tariffs affect prices, stocks and the global economy?

Tariffs sink stocks

Here's part of your answer: U.S. stocks closed sharply lower Monday, after Trump dashed early hopes of a tariff-war reprieve, Medora Lee reports.

The broad S&P 500 slumped 1.76%, or 104.78 points, to 5,849.72, for the largest one-day loss since December, pushing the index to a loss of nearly 1% on the year. Other indexes saw losses across the board.

Now, buckle up for rising prices

The new import taxes are expected to increase the prices of many everyday goods, from gas to alcohol to meat and more, economists predict.

Here is what you need to know.

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from Paste BN, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.