President Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies.

President Donald Trump’s 25% tariffs on goods from Mexico and Canada, plus an additional 10% tariff on Chinese imports, started just after midnight Tuesday—potentially leading to price hikes on a range of imported goods, from food and alcohol to cars and prompting Canada and China to announce retaliatory tariffs.

Canadian and Mexican imports to the United States will now by taxed at 25%, while duties on Chinese imports will be doubled to 20%.