U.S. tariffs on Mexico and Canada go into effect and levies on China raised
Washington — The United States imposed 25% tariffs on nearly all goods imported from Mexico and Canada Tuesday, after taking a month for aides to negotiate a potential reprieve. Duties of 10% were put in place on Canadian energy products.

The tariffs went into effect at 12:01 a.m., hours before President Trump’s first address to a joint session of Congress of his second term.

The U.S. also imposed 10% tariffs on imports from China on top of those already in place, bringing them to 20%.

China and Canada react; Mexico expected to
China responded immediately, announcing it would put additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef. They’re slated to take effect March 10. China also imposed export controls and other curbs on about two dozen more U.S. companies.

What’s more, foreign ministry spokesman Lin Jian said, “If the United States … persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end,” according to Agence France-Presse.

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Canadian Prime Minister Justin Trudeau said his nation would respond with 25% tariffs on some $107 billion worth of U.S. goods over the course of three weeks — with $20.7 billion immediately — if the U.S. levies remained in effect. He had said previously that Canada would target American beer, wine, bourbon and home appliances and Florida orange juice.
“Tariffs will disrupt an incredibly successful trading relationship,” the Reuters news agency quoted Trudeau as saying.

Ontario Premier Doug Ford told NBC News he was prepared to retaliate by ending shipments of nickel and the transmission of electricity to the U.S. from his province.

Mexican President Claudia Sheinbaum was expected to announce her response during a news conference in Mexico City Tuesday morning, that nation’s economy ministry said.

Impact on markets, consumers
Economists warn that the new tariffs could lead to higher prices for American consumers and a trade war among major U.S. trading partners.

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Investors reacted negatively to Monday’s news that the tariffs on Mexico and Canada would take effect as planned. Major U.S. indices fell roughly 2% on the day. Trade war fears sent markets falling in Asia and Europe, as well on Tuesday.

On Monday, a reporter asked Mr. Trump if there was room left for Canada and Mexico to arrive at a deal before the deadline.

“No room left for Mexico or for Canada, no,” Mr. Trump responded. “The tariffs, they’re all set, they go into effect tomorrow.”

He has wielded tariffs as an instrument to extract concessions from foreign governments and encourage manufacturing in the U.S.

“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid, or paid off in some other form,” he said at the White House Monday after announcing a $100 billion investment by a Taiwanese semiconductor company. “And now we’re using them.”

The tariffs are in response to what Mr. Trump views as Mexico and Canada’s irresponsible handling of the southern and northern borders, including fentanyl entering the United States. Both countries won last-minute delays on the tariffs in February after Sheinbaum and Trudeau vowed to do more to crack down on fentanyl and illegal border crossings.