The previously paused tariffs on imports from Canada, China and Mexico were enacted early Tuesday morning, drawing swift rebuke from America’s closest allies.

The White House announced on Monday that, effective March 4, it would leverage 25% tariffs on goods imported from Canada and Mexico. The administration also raised the tariff on imports from China from 10% to 20%. Data from the United States Census Bureau shows that in 2024, the United States imported almost $280 million worth of plate and sheet glass from Canada, almost $310 million from Mexico and about $888 million from China.

Canada and China declared retaliatory tariffs shortly after the tariffs were reintroduced, with Canadian Prime Minister Justin Trudeau calling the tariffs “dumb” policy. He says Canada will immediately apply a 25% tariff to $30 billion worth of U.S. goods, adding $125 billion after 21 days if the U.S. tariffs aren’t withdrawn. China implemented 10-15% tariffs on certain U.S. agricultural products, such as chicken, wheat, soybeans and beef.

Mexican President Claudia Sheinbaum told the press that her country will leverage “tariff and non-tariff measures,” which she plans to announce in a public speech on March 9.

“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” says Sheinbaum. “We have said it in different ways: cooperation and coordination, yes; subordination and interventionism, no.”

Economists predict the tariffs will increase inflation, raising prices for Americans on various goods. The financial fallout was felt early Tuesday, especially in the stock market, which plummeted before regaining some ground. Rising house prices are also a concern.

USA Today reports that John Burns Research and Consulting estimates the cost of a newly constructed home will increase by nearly 5% if the White House’s proposed tariffs are implemented. Most hardware and nearly three-quarters of imported sawmill wood products come from Mexico, China and Canada. Knock-on effects are expected, reports USA Today, writing that domestic materials suppliers will more than likely raise prices in line with those from tariff-affected countries because they can.

In February, the White House announced and then paused tariffs on Mexico and Canada after negotiations with the countries’ respective leaders. The tariffs are designed to promote American jobs and encourage the countries to curb illegal immigrants and alleged fentanyl traffic, he says.