U.S. 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.

The tariff actions, which look set to upend nearly $2.2 trillion in annual U.S. trade with its top three trading partners, went live at 12:01 a.m. 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 U.S.

The tariffs on Mexican and Canadian products could have deep repercussions for a highly integrated North American economy that depends on cross-border shipments to build cars and machinery, refine energy and process agricultural goods.

Even before Trump's tariffs announcement, U.S. data on Monday showed factory gate prices jumped to a nearly three-year high, suggesting that a new wave of tariffs could soon undercut production.

Canadian Prime Minister Justin Trudeau hit back with 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances and motorcycles. Mexican President Claudia Sheinbaum vowed retaliation and said she would announce Mexico's response on Sunday in Mexico City's iconic Zocalo square.

China responded immediately, announcing additional tariffs of 10%-15% on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities. Later it said it had raised complaints about the new measures with the World Trade Organization.

Trump's action sparked a global stock selloff, with all major U.S. indexes lower and the Nasdaq .IXIC falling into correction territory after European shares logged their biggest one-day loss in six months. Automakers, homebuilders, retailers and other tariff-sensitive stocks all took hits.

The tariffs were already sparking some U.S. price increases, running counter to Trump's election vow to bring down living costs for Americans.

(Production: Thomas Holdstock)