CNBC Daily Open: U.S. takes aim at neighbors with tariffs again

It’s quiet… too quiet.

After a few quiet weeks on the tariff front, U.S. President Donald Trump has again set his sights on Canada and Mexico, promising that tariffs paused earlier this month will “go forward” next week. 

Trump signed executive orders on Feb. 1 imposing 25% tariffs on products from Mexico and Canada, as well as 10% duties on Canadian energy.

Separately, the row between U.S. federal workers and Elon Musk’s Department of Government Efficiency continued after the Office of Personnel Management seemed to undermine Musk’s threat to federal workers. 

Musk’s DOGE had sent out an email to all federal workers last week, saying those who fail to submit a list of their recent accomplishments will face a forced “resignation.” OPM later notified top government human resources officers that responses to the email “is voluntary.”

But Musk then doubled down on his threat, saying in a post on X on Monday night “Failure to respond a second time will result in termination.”

— Lim Hui Jie

Trump says tariffs on Canada and Mexico ‘will go forward’
President Donald Trump said Monday that sweeping U.S. tariffs on imports from Canada and Mexico “will go forward” when a monthlong implementation delay expires next week. Trump signed executive orders on Feb. 1 imposing 25% tariffs on products from Mexico and Canada, as well as 10% duties on Canadian energy.

OPM undercuts Musk ‘resignation’ threat, Musk doubles down
The federal Office of Personnel Management on Monday undercut a threat by Elon Musk that government workers who fail to submit a list of their recent accomplishments will face a forced “resignation.” “OPM also clarified that a non-response to the email does not equate to a resignation,” according to an internal email sent by the Department of Justice’s human resource chief. Musk, in a post on X on Monday night, doubled down on his threat to fire federal employees who fail to submit the list.

South Korea cuts rates to lowest since August 2022
South Korea’s central bank cut rates rates to 2.75% from 3% on Tuesday, its lowest since August 2022. The central bank said the decision was taken to mitigate downward pressure on the economy, forecasting growth to “decline significantly.” The BOK cut its 2025 growth outlook to 1.5% from its 1.9% forecast in November, saying domestic demand recovery and export growth are likely to be lower than expected in light of deteriorating economic sentiment and U.S. tariff policies.

U.S. markets largely fall 
U.S. markets mostly slid on Monday, as Trump’s tariff threats continued to weigh on investor sentiment. The S&P 500 lost 0.5%, while the Nasdaq Composite fell 1.21%, as shares of major tech companies came under pressure. The Dow Jones Industrial Average eked out a narrow gain of 0.08%. Over in Asia, markets also fell on Tuesday, with Japan’s Nikkei 225 leading losses in the region and dropping more than 1%.

[PRO] JPMorgan says U.S. investors may be wrong to shrug off Trump’s tariff push
JPMorgan says U.S. investors may be wrong to brush off tariff concerns, as well as the stock market’s high valuations. Mislav Matejka, equity strategist at JPMorgan said investors shouldn’t mistake that surprising strength for a bullish signal, especially as the stream of tariff announcements from the White House continues.