The Globe and Mail reports in its Tuesday edition that U.S. and Canadian stocks fell sharply Monday after Donald Trump said tariffs on Canada and Mexico will take effect at the end of the night. A Reuters dispatch to The Globe says it was the biggest daily percentage drop this year for both the S&P/TSX composite and S&P 500 benchmarks. "Markets were looking for another 11th hour deal to further delay tariffs, but aren't going to get one this time," said Jamie Cox at Harris Financial Group. "The threat of tariffs has run its course for now, so the next phase is to endure them. Markets have to price that reality, and those numbers are painted red." The Canadian dollar also fell sharply, losing about half a U.S. cent to go below 69 U.S. cents. U.S. bond yields in both countries fell, with traders significantly raising their bets that the Bank of Canada will cut rates at its next policy meeting. U.S. megacaps took hits. The S&P/TSX Composite Index ended down 391.88 points at 25,001.57. Manufacturing activity contracted for the first time in six months in February. The Toronto energy sector tumbled 5.1 per cent, with Cenovus down 7.7 per cent; crude oil ended 2 per cent lower at $68.37 (U.S.) a barrel.