Trump’s tariffs against Canada and Mexico now in effect, igniting trade war

US President Donald Trump’s long-threatened tariffs against Canada and Mexico finally went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies.

Starting just past midnight (1pm Hong Kong time), imports from Canada and Mexico were to be taxed at 25 per cent, with Canadian energy products getting tariffed at 10 per cent. In addition, the 10 per cent tariff that Trump placed on Chinese imports in February was doubling to 20 per cent.

In response, Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than US$100 billion of American goods over the course of 21 days.

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