U.S. tariffs are at their highest level since 1943, Yale's Budget Lab said.

 President Donald Trump's sweeping tariffs on Mexican and Canadian imported goods took effect on Tuesday, in addition to higher duties on Chinese goods, a step that triggered a quick retaliation from Beijing.

"President Trump continues to show his dedication to making sure U.S. trade policy advances the national interest," the White House said in a statement.

Imports into the U.S. from Canada and Mexico will have a 25% tariff, while those from China will face a 10% rise on current tariffs, the White House said.

American tariffs are at their peak since 1943, Yale's Budget Lab report

This combination of file photos shows, from left, U.S. President Donald Trump in Palm Beach, Fla., Feb. 7, 2025, Canadian Prime Minister Justin Trudeau in Kyiv, Ukraine, June 10, 2023, China's President Xi Jinping in Brasilia, Brazil, Nov. 20, 2024, and Mexico's President Claudia Sheinbaum in Mexico City, June 27, 2024.

APWithin minutes of the imposition of the new U.S. tariffs, China on Tuesday rolled out its first countermeasures by imposing extra 10% to 15% tariffs on U.S. imports such as chicken, wheat, soybeans and beef.

Those obligations will be on top of analogous tariffs charged back in the original Trump administration trade war in 2018. Some of them are already 25%, though Beijing made some waivers because of the 2020 "phase one" trade agreement.

A Home Depot worker walks past stacks of U.S. lumber available for sale at Home Depot on March 3, 2025 in Pasadena, California.

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The new Chinese tariffs are to take effect on goods exported next Monday, March 10.

Canadian Prime Minister Justin Trudeau also vowed to retaliate with tariffs on American products if Trump's tariffs on Canadian products were implemented.

He stated in a statement on Monday that Ottawa would begin with "tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion on American products in 21 days' time."

A commercial truck drives towards the Ambassador Bridge to Windsor, Ontario, Canada from Detroit, Michigan. U.S., March 3, 2025.

Rebecca Cook/Reuters

Our tariffs will be maintained until the U.S. trade measure is reversed, and if U.S. tariffs do not end, we're engaged and working actively with provinces and territories on pursuing a number of non-tariff measures," Trudeau indicated in the statement.

Traders work on the New York Stock Exchange floor on March 3, 2025 in New York City.

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Stock futures for the three major U.S. indexes were near even early Tuesday after Monday's selloff when Trump said his proposed tariffs would take effect at 12:01 a.m.

The news pushed major stock indexes down, with the S&P experienced its largest decline since December, closing at 5,849.72 -- down 104.78 points or 1.76%. The Dow Jones Industrial Average closed at 43,191.24 down 649.67 points -- or 1.48% -- and the tech-heavy Nasdaq declined 2.64%.

German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, March 4, 2025.

Staff/ReutersAsian markets were inconclusive on Tuesday. The Shanghai Stock Exchange rose less than a percentage point, with the Nikkei in Japan falling roughly 1.2% and the Hang Seng in Hong Kong finishing down roughly 0.3%.

European markets traded broadly lower on Tuesday, with the DAX in Germany falling roughly 1.6% and the FTSE 100 dropping roughly 0.3% at midday.

The U.S. tariffs came roughly a month after Trump gave Mexico and Canada a temporary reprieve, having finalized agreements with the two nations on border security and drug smuggling.