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Steep US tariffs on Canadian and Mexican goods came into effect on Tuesday as a deadline to avert President Donald Trump’s levies passed without the nations striking a deal, in a move set to impact supply chains.
Trump had unveiled — and then paused — blanket tariffs on imports from major trading partners Canada and Mexico in February, accusing them of failing to stop illegal immigration and drug trafficking.
In pushing ahead with the duties, Trump cited a lack of progress in tackling the flow of drugs like fentanyl into the United States.
US stock markets tumbled on Monday after Trump told reporters there was “no room left” for the North American neighbours to avoid the levies.
The duties stand to impact over $1.4 trillion worth of US imports from both countries.
Trump also inked an order on Monday to increase a previously imposed 10 per cent tariff on China to 20 per cent — on top of existing levies on various Chinese goods.
Beijing warned it would take countermeasures against the new tariffs to safeguard its interests.
Economists caution that tariffs could raise consumer prices while weighing on growth and employment.
This is a developing story and this article will be updated.
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