Stocks wavered Tuesday as investors digested Trump's latest tariff plans, which he said would include a 25% tariff on imports from Canada and Mexico.

Donald Trump's plans could spark trade wars, fuel volatility, reignite inflation, and spur a flight to safety in markets, analysts said.

The US heavily taxed imports for much of its history before largely abandoning the policy, beginning in the 1930s, as government leaders embraced the idea of free trade. Tariffs made a comeback during the 2017-2021 presidency of Donald Trump,

U.S. President-elect Donald Trump said on Monday that on his first day in office he will impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China. The announcement sparked a dollar rally.