President Donald Trump’s tariffs on imports from Mexico, China, and Canada officially took effect, escalating trade tensions and raising concerns about economic fallout.

China has already retaliated, following Trump’s decision to double tariffs on Chinese goods to 20%. The move is expected to have a direct impact on American consumers, particularly in the cost of produce and vehicles, as higher import costs are passed down.

Financial markets reacted sharply, tumbling on Monday in anticipation of the tariffs and the possibility of an escalating trade war.

Trump has long threatened these tariffs as part of his strategy to pressure trade partners, and now Canada has responded with its own measures, imposing a 25% tariff on American goods.

Originally, the tariffs on Canada and Mexico were set to begin last month, but Trump agreed to a 30-day suspension to allow for negotiations. With talks failing to yield an agreement, the tariffs are now in force.

Economists warn that while these tariffs are meant to target foreign competitors, it is American businesses that will bear the immediate costs—expenses that will likely be transferred to consumers.

In response to concerns over the impact on the agricultural sector, New York Governor Kathy Hochul is set to host a roundtable discussion with farmers and agricultural leaders to assess the repercussions of the new trade policies.

As tensions rise, both businesses and consumers brace for the effects of a deepening trade dispute that could have lasting consequences for the U.S. economy.