Trump’s long-threatened tariffs against Canada and Mexico come into effect

The US President’s moves raised fears of higher inflation and the prospect of a devastating trade war

President Donald Trump listens during a Cabinet meeting at the White House in Washington (Pool via AP)

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

Starting just past midnight local time, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products getting tariffed at 10%. In addition, the 10% tariff that Mr Trump placed on Chinese imports in February is doubling to 20%.