Tariffs Are In Effect. Expect Everything To Become More Expensive.

 President Donald Trump imposed steep duties on America's three largest trading partners on Tuesday. Imports from Mexico and Canada will be subject to a 25 percent tariff (10 percent for Canadian energy), while levies on Chinese products will jump from 10 percent to 20 percent. Combined, these tariffs will affect roughly $1.5 trillion in annual imports.

The Trump administration also plans a global 25 percent tariff on aluminum on March 12, plus a tariff of an unspecified rate on foreign cars and agricultural products in April, according to The New York Times.

The three nations targeted today have all retaliated in kind. Mexico announced a 25 percent tariff on American goods, and Canada has imposed levies on $107 billion worth of U.S. goods. Ontario Premier Doug Ford has said the province will also impose a 25 percent tax on electricity exports to the U.S., which will primarily impact New England, New York, and Minnesota. Ontario will halt all energy exports—which powers over 1 million American homes—if Trump implements more tariffs in April, The Wall Street Journal reports. China, meanwhile, will introduce levies of 10 to 15 percent on American agricultural products, including soybeans, pork, poultry, cotton, and beef. Nearly 50 percent of American soybean and 30 percent of cotton exports go to China.

Tariffs are in effect. Expect everything to become more expensive.