(NEW YORK) — U.S. stocks tumbled on Tuesday after the Trump administration’s long-promised tariffs took effect.
The Dow Jones Industrial Average dropped 670 points, or 1.5%; while the S&P 500 fell 1.2%. The tech-heavy Nasdaq ticked down 0.3%.
The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.
Shares of retail giant Target fell 3% on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business. Walmart’s stock price dipped about 2.5% on Tuesday, while Amazon shares inched down 0.6%.
Shares of Best Buy plummeted more than 13%. The sharp drop came after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.
Higher costs for car production could also pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.
Shares of Ford tumbled nearly 3% on Tuesday, while General Motors dropped about 4.5%. Stellantis — the parent company of Jeep and Chrysler — saw shares decline more than 4%.
Tesla, the electric carmaker led by Elon Musk, saw its stock price drop about 4.5%.
The far-reaching losses extend a market slide that began on Monday afternoon when Trump affirmed plans to impose a fresh round of tariffs.
Trump stuck to a March 4 start date for 25% tariffs on imports from Mexico and Canada, as well as 10% tariff on Chinese goods — which, as of Tuesday, rises to 20%, per an amended executive order.
Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The duties also raise input costs for manufacturers that import raw materials.
In addition to Tesla and Amazon, the tariffs appeared to impact some of the other so-called “Magnificent Seven,” a group of large tech firms that helped drive stock market gains in recent years.
Meta, the parent company of Facebook and Instagram, suffered a 2% drop in its stock price. Apple, which makes some of its products in China, fell nearly 1%.
Shares of Microsoft defied the trend, however, remaining essentially unchanged on Tuesday.
Chipmaker Nvidia, which relies on semiconductors from Taiwan but also imports some materials from Mexico, saw shares increase about 1.5%. Alphabet’s stock price climbed about 2%.
This is a developing story. Please check back for updates.
(WASHINGTON) — Education Secretary Linda McMahon has released what she calls the “final mission” for the Department of Education, as the Trump administration appears to be laying the groundwork for the agency’s dismantling.
The newly confirmed secretary’s plans for the coming months will result in what she calls a “historic overhaul” of the education department that “will profoundly impact staff, budgets, and agency operations here at the Department.”
In a brief list of goals guiding the department’s path forward that was posted to the Education Department’s website on Monday, McMahon, the former head of the Small Business Administration and Trump donor, stated, “Parents are the primary decision makers in their children’s education.”
She adds, “Taxpayer-funded education should refocus on meaningful learning in math, reading, science, and history—not divisive DEI programs and gender ideology.”
Diversity, equity and inclusion (DEI) initiatives, according to DEI experts, are intended to address and correct discriminatory policies or practices that may be found within an organization.
“Postsecondary education should be a path to a well-paying career aligned with workforce need,” McMahon adds in the list of goals.
Parental rights and “divisive” topics have been hot button issues on the state-level for years, quickly making their way to the national stage – with heated debate taking place in recent years over school voucher programs, content restrictions, book bans, and more.
McMahon’s plans follow President Donald Trump’s campaign proposals for education reform. One of these proposals — an expansion of school voucher programs — has been a key education talking point for the Trump administration, touted as an opportunity for parents to have more of a say in where their child goes to school.
School voucher programs allow families to use public school funds to pay for private school tuition, homeschooling, and similar education opportunities.
McMahon also echoed the Trump administration’s efforts to restrict the discussion of certain topics – like race, sex, gender and diversity, equity and inclusion (DEI) – in the K-12 classrooms as well as in higher education.
Trump signed an executive order in January that aims to find ways to cut federal funding to schools that teach certain topics related to race, sex, gender or politics.
Restricting DEI topics in schools has also been a cause championed by “parental rights” advocates who have been behind a wave of book banning attempts as well as pressures on certain curriculum requirements at the local and state level.
The department memo comes as sources tell ABC News the president is expected to sign an executive order as soon as this week calling for McMahon to diminish the education department and work with Congress to pass legislation that would eliminate it.
The Department of Education, which administers and coordinates federal education assistance including Title I and Pell grants, was established under President Jimmy Carter in 1979 and officially began operations in 1980. The department has long stated that education curriculum, as well as graduation and enrollment requirements, have been decided by states and local communities.
Trump’s “Agenda47” campaign proposed eliminating the department. “We are going to close the Department of Education in Washington, D.C. and send it back to the States, where it belongs, and let the States run our educational system as it should be run,” the proposal said.
The agency can only be dismantled by an act of Congress, but how the department is funded and its policy goals are much more within Trump’s immediate scope of executive powers.
In the memo, McMahon stated that under her oversight, “the Department of Education’s role in this new era of accountability is to restore the rightful role of state oversight in education and to end the overreach from Washington.”
ABC News has reached out to the Department of Education for further comment.
ABC News’ Arthur Jones II has contributed to this report.
(WASHINGTON) — The theme of President Donald Trump’s high-profile address to Congress and the nation on Tuesday night is “Renewal of the American Dream,” but he’s also expected to remark on what his second-term agenda may mean for the rest of the world.
According to a White House official, the president will lay out his vision for “peace around the globe.”
“He’s going to dive into foreign policy, talk about his intention to end the war in Ukraine, talk about his plan to bring all of the hostages out of Gaza home,” White House press secretary Karoline Leavitt said in an interview on Tuesday.
But the president’s speech comes at a particularly contentious time. The aftermath of his heated Oval Office meeting with Ukrainian President Volodymyr Zelenskyy still hangs over Washington, and there are signs that both Israel and Hamas may be preparing to resume fighting as the future of the Gaza ceasefire deal appears to be in jeopardy.
And as the Trump administration levies new tariffs against adversaries and allies alike after turning U.S. foreign policy on its head during his first six weeks back in office, the international community will be listening closely as fellow work leaders try to divine what the next four years may have in store.
Here are some things to watch for:
Will Trump mend his rocky relationship with Ukraine?
After Trump expelled Zelenskyy from the White House and declared the Ukrainian leader was “not ready for peace,” his administration paused the pipeline of U.S. military assistance to the country — further ramping up pressure on Kyiv.
Zelenskyy initially declined to apologize to Trump, but in an address on Tuesday, he called the meeting “regrettable,” adding, “It is time to make things right.”
As part of that, he proposed a partial ceasefire with Russia that he said Ukraine would be willing to implement immediately.
“Then we want to move very fast through all next stages and to work with the U.S. to agree a strong final deal,” he declared.
But whether this is enough to get back in the president’s good graces remains to be seen.
State Department spokeswoman Tammy Bruce said later on Tuesday there is still “an open door” for Zelenskyy, while applauding Trump.
“This is the end result of what happens when you make it clear to someone that there is one way to move forward,” she said.
A positive sign for Zelenskyy emerged Tuesday afternoon, when two sources briefed on discussions inside the White House told ABC News that the U.S. and Ukraine could sign the mineral deal that was supposed to be inked on Friday as soon as Tuesday.
One source said Trump indicated he would like to sign the deal before the speech but cautioned nothing is final.
But if Zelenskyy’s comments aren’t ultimately enough for the president, it’s possible he could go even further — potentially by attempting to cut off Ukraine from shipments of new weapons from American arm suppliers that were already paid for with money given to Kyiv by the Biden administration or by halting intelligence-sharing with the country.
Others have said they feel like no matter what, the damage has already been done.
“By canceling military aid to Ukraine, Trump doesn’t make peace any closer. It’s not even a blackmailing but rather conscious pressure on Ukraine to capitulate to Russia’s demands, after which Trump can “declare peace,” said Mariia Zolkina, the head of regional security and conflict studies at Ukraine’s Democratic Initiatives Foundation think tank.
“[Trump] can’t make a good deal now and defines Ukraine as ‘guilty’ for this,” she added.
Can the fragile peace in the Middle East last?
After members of his incoming administration worked with members of the Biden administration to secure a ceasefire deal in Gaza, Trump was able to reenter the White House with a major diplomatic win already under his belt.
Now, 44 days after that agreement went into effect, it seems to be at greater risk of falling apart than ever.
Israel revealed on Sunday that the U.S. had offered up another proposal to extend the first phase of the ceasefire deal, which would significantly speed up the release of hostages.
After Hamas rejected the plan, Israel cut off the flow of humanitarian aid to Gaza, a move the Trump administration has backed but other key mediators, such as Egypt and Qatar, have decried as a violation of humanitarian law.
The State Department said on Monday that Steve Witkoff, Trump’s special envoy for the Middle East, is planning to travel to the Middle East this week and that he would seek either to “work out a way to extend phase I or advance to phase II” of the Gaza ceasefire deal.
Trump’s address on Tuesday may offer clarity on what the president would actually like to see happen next in the peace process — beyond his outlandish plan to build what has called the “Riviera of the Middle East” in Gaza.
If the Israel-Hamas war doesn’t get airtime during Trump’s speech, that, too, could be telling about the president’s focus. But on Tuesday, Trump’s top diplomat, Secretary of State Marco Rubio, spoke to Israeli Prime Minister Benjamin Netanyahu in order to “underscore that the United States’ steadfast support for Israel is a top priority for President Trump,” according to the State Department.
How will Trump handle the tariffs trouble?
On the day of Trump’s address, the president’s long-threatened 25% tariff on goods from Canada and Mexico went into effect, prompting both countries to vow to take retaliatory economic measures — and subsequently leading to the president promising to raise tariffs further.
At the same time, the U.S. introduced another 10% tariff on Chinese imports, and Beijing hit back with its own tariffs on U.S. agricultural products and other measures targeting American business interests.
The immediate impact of the multifront trade wars has been a blow to the U.S. stock market, which Trump often uses as a barometer of his own success.
Economists say U.S. consumers may feel the crunch from tariffs more acutely as time goes on, as retailers are expected to offset costs by raising prices.
Beyond inflating prices, Joshua P. Meltzer, a senior fellow in the Global Economy and Development program at the Brookings Institution, argued the tariffs will also run counter to the Trump administration’s other economic aims.
“These tariffs will also harm the Trump administration’s goal of developing more secure supply chains and competing with China,” he said. “The tariffs are directly at odds with deeper economic integration across North America. In fact, China will benefit from a trade war across North America as it undercuts efforts to reshore supply chains away from China.”
Meltzer also said the move will hurt American credibility.
“They signal to the world that any international agreement with the U.S. is not worth all that much, raising difficult questions for all U.S. allies and trading partners about the value of trade agreements with the U.S.,” he said.
Trump’s address will provide a high-stakes opportunity for the president either to alleviate or exacerbate those concerns among U.S. trading partners.
ABC News’ Katherine Faulders and Rachel Scott as contributors.
Hyoung Chang/MediaNews Group/The Denver Post via Getty Images
(WASHINGTON) — The Justice Department on Monday filed a highly unusual motion stating its intent to review a state-level conviction of a Trump ally who was sentenced to nine years in prison for leading a security breach of her county’s elections computer system following the 2020 presidential election.
Former Mesa County, Colorado, clerk Tina Peters was sentenced last October for giving an individual affiliated with MyPillow CEO Mike Lindell, an ally of President Donald Trump who amplified false election claims, access to election software she used for her county. Screenshots of the software later appeared on right-wing websites that in turn used it to further promote baseless claims of voter fraud.
Early last month, Peters filed a motion with the federal district court in Colorado seeking to challenge her guilty verdict.
On Monday, the senior acting head of the Justice Department’s Civil Division, Yaakov Roth, filed a statement of interest with the court, urging a judge to give “prompt and careful consideration” to concerns Peters’ counsel has raised about her case.
“Reasonable concerns have been raised about various aspects of Ms. Peters’ case,” Roth said in the filing. “Accordingly, the United States respectfully submits that the concerns raised in the Application warrant – at the very least – prompt and careful consideration by this Court (and, at the appropriate time, the Colorado appellate courts).”
The Justice Department does not have the legal authority to unilaterally overturn state-level convictions. However, some critics have expressed concerns that such intervention highlights a troubling willingness by Trump-appointed officials at the Department of Justice to aid allies of the president, while also raising the prospect of retribution against his political opponents.
Roth’s filing further states that Peters’ case fits into a broader review underway at the Justice Department of “cases across the nation” that the filing argues may be “abuses of the criminal justice process.”
“This review will include an evaluation of the State of Colorado’s prosecution of Ms. Peters and, in particular, whether the case was ‘oriented more toward inflicting political pain than toward pursuing actual justice or legitimate governmental objectives,’” the filing stated.
“Nothing about the prosecution of Ms. Peters was politically motivated,” Mesa County District Attorney Daniel Rubinstein said in response to an ABC News request for comment. “In one of the most conservative jurisdictions in Colorado, the same voters who elected Ms. Peters, also elected the Republican District Attorney who handled the prosecution, and the all-Republican Board of County Commissioners who unanimously requested the prosecution of Ms. Peters on behalf of the citizens she victimized.”
“Ms. Peters was indicted by a grand jury of her peers, and convicted at trial by the jury of her peers that she selected,” Rubenstein said.
(WASHINGTON) — President Donald Trump unlawfully removed a member of a federal office that protects government employees from partisan interference, a federal judge ruled Tuesday.
U.S. District Judge Rudolph Contreras granted a permanent injunction reinstating Cathy Harris to the Merit Systems Protection Board, delivering the Trump administration another legal defeat as they attempt to reshape the federal workforce.
Contreras found that Harris’ removal broke the law because Trump failed to provide cause for her removal when the White House communicated last month that her role had been terminated in a one-sentence, late-night email. Contreras noted that Harris had actually been “efficient and effective” in her role, clearing the board’s massive 3,800-case backlog.
“Because the President did not indicate that he sought to remove Harris for inefficiency, neglect of duty, or malfeasance in office, his attempt to terminate her was unlawful and exceeded the scope of his authority,” Contreras wrote.
Harris, the board’s chairman, was nominated by then-President Joe Biden in January 2022 for a term not set to expire until March 2028. She was confirmed by the Senate in May 2022. Contreras’ ruling says Harris must now remain in the role through the end of her term, unless she is removed for cause.
The board only consists of three members, with the law stating no more than two can be from the same political party. In removing Harris, Trump had announced the Republican member, Henry Kerner, would take over the role as chair. Raymond Limon, also a Democrat like Harris, served as vice chair until he resigned last week on the final day of his term.
Trump’s attempt to remove Harris comes as the Merit System Protection Board — a little-known office that protects federal employees from abuses by management and prohibited practices — grows in significance as the Trump administration slashes thousands of federal employees. Some judges have turned down lawsuits by noting that the correct avenue for the employees’ claims would be the Merit System Protection Board, rather than a federal court.
On Saturday, another federal judge issued a permanent injunction reinstating special counsel Hampton Dellinger, who was similarly removed without cause by the Trump administration.
(WASHINGTON) — Rep. Richard Hudson, the chairman of the National Republican Congressional Committee, encouraged House Republicans to do more virtual events over in-person town halls, according to multiple sources familiar with the meeting.
The plea comes as multiple House Republicans have faced fiery constituents at recent in-person town halls concerning cuts to the federal workforce and the impact Elon Musk’s Department of Government Efficiency has had on communities.
Hudson told members that communicating with constituents via Facebook Live, tele-town halls and other virtual avenues would be more effective, allowing them to screen questions and have better control over the events.
“Chairman Hudson supports members reaching and helping as many of our constituents as possible, using technology makes this a heck of lot easier. Chairman Hudson opposes attention-seeking MoveOn and Indivisible activists hijacking these events,” Will Kiley, NRCC’s spokesman, told ABC News.
House Speaker Mike Johnson, R-La., claimed tele-town halls are “more productive than if you just go to an open forum right now,” accusing Democratic activists, without evidence, of showing up to in-person town halls to portray Republicans in a negative light.
“Look, these are their people who do this as a profession,” Johnson said at the GOP press conference. “They’re professional protesters. So why would we give them a forum to do that right now? The best thing that our members can do is communicate directly, frequently, consistently, with their constituents, and there are other avenues to do it than just going in to try to give the other side sound bites.”
This comes after President Donald Trump made accusations, without evidence, that “paid troublemakers” were interrupting GOP town halls, not constituents.
Outside Tuesday’s GOP conference meeting, Rep. Lauren Boebert, R-Colo., claimed she experienced safety concerns in her district, saying that virtual events were safer and more effective.
“I’ve done many tele-town halls, and I think those are very productive and we can reach 1,000s more people than we ever could in person,” she said. “And so, I think that that is a great strategy, but for me personally, it’s just not safe to do an in person town hall because I don’t know what to expect.”
Meanwhile, some Democrats said that if Republicans won’t host town halls, they will.
Rep. Ro Khanna, D-Calif., said on Tuesday that he’d soon go out to red districts in his state to speak out against DOGE layoffs.
“Starting March 24th, I will be going to three red districts in California to speak out against DOGE’s mass firings and the Republicans’ Medicaid cuts,” Khanna wrote in an op-ed in The Prospect published on Tuesday.
Minnesota Gov. Tim Walz, the 2024 Democratic vice presidential nominee, posted on X Tuesday morning that he’d host events in districts where Republican representatives won’t meet constituents.
“If your Republican representative won’t meet with you because their agenda is so unpopular, maybe a Democrat will,” he said. “Hell, maybe I will. If your congressman refuses to meet, I’ll come host an event in their district to help local Democrats beat ’em.”
(WASHINGTON) — America’s closest neighbors, Canada and Mexico, excoriated President Donald Trump for slapping historic tariffs on goods from their countries.
Trump’s broad tariffs went into effect on Tuesday, along with increased duties on goods from China, a move that prompted a swift retaliation from Beijing.
“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement.
Goods entering the U.S. from Mexico and Canada will carry a 25% tariff, while those from China will be subject to a 10% increase on existing tariffs, according to the White House.
U.S. tariffs are at their highest level since 1943, Yale’s Budget Lab said.
On Feb. 27, Trump alleged that illicit drugs such as fentanyl had continued to enter the U.S. through Mexico and Canada despite agreements reached last month to address the issue.
Since September, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol, or CBP, a federal agency. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.
Canadian Prime Minister Justin Trudeau sharply criticized the tariffs, calling them a “dumb” policy that does not “make sense.”
The reason for the tariffs is based on a false allegation about Canada as a major source of drugs entering the U.S., Trudeau added.
“It’s an example of [Trump] not really being able to see what it is that he wants, because even the excuse that he’s giving for these tariffs today of fentanyl is completely bogus, completely unjustified [and] completely false,” Trudeau said.
In response, Canada slapped a 25% retaliatory tariff on $30 billion worth of goods. Tariffs on an additional $125 billion worth of products will take effect in 21 says, Trudeau said.
“We will not back down from a fight,” Trudeau added.
Meanwhile, Mexican President Claudia Sheinbaum announced plans to impose retaliatory tariffs on U.S. goods.
“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum said. “We have said it in different ways: cooperation and coordination, yes; subordination and interventionism, no.”
Sheinbaum said she will speak over the phone with Trump on Thursday, and if no deal can be reached, she’ll announce the tariff and non-tariff measures at a rally on Sunday.
China’s response
Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.
Those duties will be on top of similar tariffs imposed back during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.
The new Chinese tariffs are set to come into effect for goods shipped out next Monday, March 10.
Stock prices plummet
Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.
Stock prices plummet
Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.
Asian markets were mixed on Tuesday. The Shanghai Stock Exchange climbed less than a percentage point, while the Nikkei in Japan slipped about 1.2% and the Hang Seng in Hong Kong closed down about 0.3%.
European markets mostly traded off on Tuesday, with the DAX in Germany down about 1.6% and the FTSE 100 slipping about 0.3% midday.
The U.S. tariffs arrived about a month after Trump granted Mexico and Canada a reprieve, having reached agreements with the two countries regarding border security and drug trafficking.
ABC News’ Zunaira Zaki and Anne Laurent contributed to this report.
(NEW YORK) — The stock market fell in early trading on Tuesday, just hours after the Trump administration’s long-promised tariffs took effect.
The Dow Jones Industrial Average dropped nearly 800 points, or 1.8%; while the S&P 500 also fell 1.8%. The tech-heavy Nasdaq tumbled 1.6%.
The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.
Shares of retail giant Target fell 4.5% in early trading on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business. Walmart’s stock price dipped 1% on Tuesday, while Amazon shares fell 2%.
Shares of Best Buy plummeted more than 13% on Tuesday morning. The sharp drop came hours after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.
Higher costs for car production could also pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.
Shares of Ford tumbled 3% on Tuesday, while General Motors dropped more than 4%. Stellantis — the parent company of Jeep and Chrysler — saw shares plummet more than 7%.
Tesla, the electric carmaker led by Elon Musk, saw its stock price drop nearly 7%.
The far-reaching losses extend a market slide that began on Monday afternoon when Trump affirmed plans to impose a fresh round of tariffs.
Trump stuck to a March 4 start date for 25% tariffs on imports from Mexico and Canada, as well as 10% tariff on Chinese goods — which, as of Tuesday, rises to 20%, per an amended executive order.
Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The duties also raise input costs for manufacturers that import raw materials.
In addition to Tesla and Amazon, the tariffs appeared to impact some of the other so-called “Magnificent Seven,” a group of large tech firms that helped drive stock market gains in recent years.
Chipmaker Nvidia, which relies on semiconductors from Taiwan but also imports some materials from Mexico, saw shares drop more than 2%.
Meta, the parent company of Facebook and Instagram, suffered a 4% drop in its stock price. Microsoft’s stock fell 1%.
Shares of Alphabet and Google defied the trend, however, remaining essentially unchanged in early trading on Tuesday.
This is a developing story. Please check back for updates.
(ORLANDO, Fla.) — The woman was paddling at Tiger Creek Preserve in Polk County at the time of the incident on Monday, the Florida Fish and Wildlife Conservation Commission said.
She was taken to a hospital in unknown condition to be treated for her injuries, the agency said.
A trapper was sent to the scene to remove the alligator, the commission said. The preserve is about 65 miles south of Orlando.
The commission said serious injuries from alligators are rare in Florida.
To stay safe from alligators, the agency recommends swimming only in designated areas during the day and keeping pets on a leash and away from the edge of water.
(NEW YORK) — A major cross-country storm is moving east, bringing severe thunderstorms to the South on Mardi Gras Day before heading to the East Coast on Wednesday.
More than 400,000 customers lost power in Texas on Tuesday morning.
Damage was reported in Irving, Texas, near Dallas, and winds gusted to 62 mph near Abilene, Texas, as the storm blew through in the morning.
In Oklahoma, residents woke up to a tornado, wind gusts over 80 mph and flash flooding.
Now, the storm moves east, with a severe thunderstorm watch in effect for Missouri, Arkansas and Oklahoma until 11 a.m. local time. A tornado watch extends south through Arkansas, northern Louisiana and eastern Texas though 3 p.m. local time.
On Tuesday afternoon, the severe thunderstorms will reach Jackson, Mississippi, and New Orleans as Mardi Gras celebrations culminate in a final day of festivities on Fat Tuesday. Parades in the area have been canceled or moved earlier due to the weather.
Tornadoes and damaging winds will be the biggest threat, but flash flooding is also possible.
The thunderstorms will hit Alabama after 8 p.m. and then Atlanta overnight.
By Wednesday, the storm system will move to the East Coast, bringing heavy rain and damaging winds from Georgia to New York.
Tornadoes are possible in the Carolinas and southern Virginia.
Meanwhile, a blizzard warning is in effect for six states from Colorado to Minnesota, where a combination of snow and gusty winds could create dangerous whiteout conditions on the roads.
A winter storm warning was issued for Wisconsin and Michigan, where some areas could see up to 1 to 2 feet of snow from Tuesday through Wednesday evening.
