What to know as Trump's long-promised tariffs go into effect on Mexico, Canada, China

WASHINGTON -- Tariffs long-promised by President Donald Trump's medication went into effect astatine 12:01 a.m. Tuesday.

The determination impacts products from Mexico, Canada and China -- the 3 largest trading partners of the United States -- meaning that it could interaction prices for everything from gasoline to avocados to iPhones.

At the opening of his 2nd term, Trump acceptable March 4 arsenic the commencement day for 25% tariffs connected imports from Mexico and Canada, arsenic good arsenic 10% tariff connected Chinese goods -- which, arsenic of Tuesday, rises to 20%, per an amended enforcement bid connected Monday afternoon.

Speaking astatine the White House connected Monday, Trump confirmed that the tariffs would instrumentality effect the pursuing day.

The announcement sent large banal indexes plummeting. The S&P suffered its biggest nonaccomplishment since December, closing astatine 5,849.72 -- down 104.78 points oregon 1.76%. The Dow Jones Industrial Average closed astatine 43,191.24 down 649.67 points oregon 1.48%, portion the tech-heavy Nasdaq fell 2.64%.

The deadline arrives astir 1 period aft Trump granted Mexico and Canada a reprieve from specified tariffs, having reached agreements with the 2 countries regarding borderline information and cause trafficking.

Here's what to cognize astir the tariffs that person gone into effect.

Tariffs could upend U.S. trade

In caller days, Trump reaffirmed his committedness to placing tariffs connected Canada and Mexico.

On Feb. 27, Trump alleged that drugs had continued to participate the U.S. done Mexico and Canada contempt agreements reached past period to code the issue.

"We cannot let this scourge to proceed to harm the USA, and therefore, until it stops, oregon is earnestly limited, the projected TARIFFS scheduled to spell into effect connected MARCH FOURTH will, indeed, spell into effect, arsenic scheduled," Trump said successful a station connected Truth Social.

Trump voiced akin concerns astir Mexico and Canada up of the erstwhile tariff deadline -- earlier yet pausing the measures.

Commerce Secretary Howard Lutnick connected Monday praised Mexico and Canada for their caller efforts to code borderline security, suggesting that the level of the tariffs remained uncertain.

"[Trump] is going to determine contiguous - we're going to enactment it retired tomorrow," Lutnick told CNN, describing the policymaking arsenic a "fluid situation."

Trump past confirmed that the the caller circular of tariffs would instrumentality effect the pursuing day.

"That volition start," Trump said. "They'll person to person tariffs."

If the tariffs enactment successful place, terms increases volition beryllium evident by Memorial Day, according to economist Mark Zandi, who besides said that prices connected nutrient could commencement rising much rapidly -- wrong weeks.

New tariffs could rise prices for immoderate essentials

Tariffs connected Mexico, Canada and China could rise prices for a immense array of goods, experts antecedently told ABC News.

Tariffs of this magnitude would apt summation prices paid by U.S. shoppers, since importers typically walk on a stock of the outgo of those higher taxes to consumers, experts said. The argumentation could hike prices for products ranging from tomatoes to tequila to car parts.

The Yale Budget Lab estimated successful February that the tariffs could outgo the mean household up to $2,000 annually.

Higher costs for car accumulation could airs a situation for U.S. automakers, galore of which beryllium connected a proviso concatenation intimately intertwined with Mexico and Canada.

"The automobile sector, successful particular, is apt to spot sizeable antagonistic consequences, not lone due to the fact that of the disruption of the proviso chains that crisscross the 3 countries successful the manufacturing process, but besides due to the fact that of the expected summation successful the terms of vehicles, which tin dampen demand," Gustavo Flores-Macias, a prof of authorities and nationalist argumentation astatine Cornell University, told ABC News successful a statement.

In a connection connected Monday from the American Automotive Policy Council, which represents members similar Ford and General Motors, AAPC President Matt Blunt said, "Our American automakers, who invested billions successful the U.S. to conscionable these requirements, should not person their competitiveness undermined by tariffs that volition rise the outgo of gathering vehicles successful the United States and stymie concern successful the American workforce, portion our competitors from extracurricular of North America payment from casual entree to our location market." He called for an exemption from the tariffs for American automakers.

Mexico and Canada relationship for 70% of U.S. crude lipid imports, which marque up a cardinal input for the nation's gasoline supply, according to the U.S. Energy Information Administration, a authorities agency.

Trump antecedently said Canadian vigor resources specified arsenic lipid and state would beryllium taxable to 10% tariffs, excluding the products from 25% tariffs faced by each different imports from the country.

The U.S. imported $38.5 cardinal successful cultivation goods from Mexico successful 2023, making it the apical recipient of specified products, U.S Department of Agriculture information showed. Those imports see much than $3 cardinal worthy of caller fruits and vegetables.

Roughly 90% of avocados eaten successful the U.S. past twelvemonth originated successful Mexico, USDA information showed. Other products with a precocious attraction of Mexican imports see tomatoes, cucumbers, doorbell peppers, jalapenos, limes and mangos.

Targeted countries whitethorn retaliate

The caller tariffs whitethorn trigger retaliation from Mexico, Canada and China.

In anticipation of tariffs past month, Canadian Prime Minister Justin Trudeau threatened retaliatory tariffs connected $155 cardinal worthy of goods and urged Canadians to take Canada-made products implicit their American counterparts. On Monday night, helium reaffirmed that commitment, saying that Canada would commencement with "tariffs connected $30 cardinal worthy of goods instantly and tariffs connected the remaining $125 cardinal connected American products successful 21 days' time."

"Our tariffs volition stay successful spot until the U.S. commercialized enactment is withdrawn, and should U.S. tariffs not cease, we are successful progressive and ongoing discussions with provinces and territories to prosecute respective non-tariff measures," Trudeau said successful a statement.

Ontario Premier Doug Ford said Monday that imposing the tariffs would beryllium an "absolute disaster" for some the U.S. and Canada. He added, successful part, "I don't privation to respond but we volition respond similar they've ne'er seen before."

Ford warned if tariffs from the U.S. determination forward, Canada volition respond.

"We support the lights connected successful 1.5 cardinal homes and manufacturing successful New York, successful Michigan and Minnesota. If helium wants to destruct our system and our families, I volition unopen down the energy going down to the U.S. and I'm telling you we volition bash it," Ford said.

Mexican President Claudia Sheinbaum said she had instructed officials successful her authorities to instrumentality Plan B, "which includes tariff and non-tariff measures successful defence of Mexico's interests."

Speaking to reporters connected Monday, Sheinbaum said caller talks betwixt the U.S. had gone "very well" but that Mexico retains options if necessary.

"We are going to hold and spot what happens," Sheinbaum said. "In that, you request to person mettle, serenity and patience, and we person Plan A, Plan B, Plan C, Plan D, truthful we are going to hold for today."

After Trump amended his enforcement bid connected Monday day -- conscionable hours earlier tariffs were meant to instrumentality effect -- efficaciously expanding China's tariffs by 10% for a full of 20%, a Chinese Ministry of Commerce spokesperson responded with a connection calling the determination a "typical unilateral and bullying behavior" that volition origin "damage to China-US economical and commercialized practice and the mean planetary commercialized order."

"China hopes that the US volition presumption and grip issues objectively and rationally and instrumentality to the close way of decently resolving differences done adjacent dialog arsenic soon arsenic possible," the connection added.

ABC News' Anne Flaherty, Zunaira Zaki and Elizabeth Schulze contributed to this report.