Trump Begins Trade War With Steep Hikes in Tariffs

US President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, sparking trade wars that could slam economic growth and lift prices for Americans still smarting from years of high inflation.

- Agencies

WASHINGTON:

The tariff actions, which could upend nearly $2.2 trillion in annual US trade with its top three trading partners, went live at 12:00 a.m. (local time). Trump declared that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US.

Trump's new tariffs helped push Wall Street's main stock indexes lower for the second day in a row in early trade, with the tech-heavy Nasdaq Composite index dropping more than 10% from its all-time high on December 16. "It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form," Trump said on Monday at the White House. "And now we're using them."