Ammon News - Investors are bracing for a looming hit to U.S. corporate profits and pressure on inflation after President Donald Trump on Saturday signed an executive order imposing tariffs on its largest trading partners, with markets seen as not having fully factored in risks from higher levies on foreign imports.

The president's executive order imposes a 25% tariff on goods entering the country from Mexico and Canada and 10% on imports from China, with what the White House described as "tentative plans" for these to come into effect on Tuesday at 12:01 a.m. ET.

On Friday, Trump said nothing could be done by the three countries to forestall the tariffs, although he did raise the prospect of exempting oil from Canada. The tariffs include a 10% levy on all Canadian energy supplies imported by the United States.

Tariffs again have been dominating the headlines all signs point to the fact that they are likely to go into effect tomorrow or this weekend.

Following his inauguration, Trump set a Saturday deadline for imposing tariffs unless Mexico and Canada moved to halt flows of illegal immigrants and the deadly opioid fentanyl into the United States.

The potential to drive up consumer prices is a particularly sensitive area for investors, who are worried about a revival in inflation causing the Federal Reserve to stop cutting interest rates.

The U.S. central bank last week paused its rate-cutting cycle, while Fed Chair Jerome Powell said officials were "waiting to see what policies are enacted" with the new president. Reuters