European markets on edge as Trump tariffs on Canada and Mexico come into effect

Imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties

US president Donald Trump speaks as C.C. Wei, chairman and CEO of Taiwan Semiconductor Manufacturing Company, and US Commerce Secretary Howard Lutnic kat the White House on Monday. (Pool via AP)

US president Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect on Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies. London market dropped sharply after heavy overnight falls on Wall Street after Mr Trump moved forward with planned tariffs against Canada and Mexico and doubled the levy on Chinese imports.

The FTSE 100 Index retreated from record highs notched up on Monday to drop more than 60 points at one stage after opening, later standing around 0.5% down at 8823.