(This article has been updated with additional information)

On Saturday, President Donald Trump enacted tariffs on Canada, Mexico, and China, marking the U.S. entry into a trade conflict with these nations.

Mexico and Canada, being the U.S.’s two largest trading partners, quickly announced plans for retaliatory tariffs, while China signaled it would challenge Trump’s actions at the World Trade Organization and implement its own “necessary countermeasures.”

Trump established 25% tariffs on Mexican and most Canadian imports, alongside a 10% tariff on goods from China, with these changes set to begin on Tuesday. Notably, Canada’s energy imports, including natural gas and oil, will be subject to a reduced tariff rate of 10%.

Identifying himself as “Tariff Man,” Trump stated that these tariffs are intended to compel these countries to reduce the influx of migrants and fentanyl into the U.S.

Mexican President Claudia Sheinbaum expressed a preference for dialogue instead of conflict in her public statement but felt compelled to take action in response.

In a post on X, formerly known as Twitter, she said, “I’ve instructed my economy minister to activate our ‘plan B,’ which entails various tariff and non-tariff responses to protect Mexico’s interests,” without detailing specific products that would face tariffs.

Sheinbaum also rejected the White House’s claims of an alliance between her government and drug cartels, labeling such allegations “slander” after they were used by Trump’s administration to defend the tariffs.

Canadian Prime Minister Justin Trudeau announced that Canada would impose 25% tariffs on $155 billion worth of U.S. goods, according to Reuters, targeting items like alcohol, lumber, and appliances. This action will begin with $30 billion worth of tariffs starting Tuesday and an additional $125 billion set to follow in about three weeks.

Trudeau warned that Trump’s tariffs would not only adversely affect Canadians but could also have “real consequences” for American citizens. He stated, “(It) will jeopardize your jobs, potentially closing American auto assembly plants and other manufacturing sites,” adding that it could lead to increased prices for consumers, including higher costs for groceries and gasoline.

Moreover, Trump noted that he may expand or increase tariffs if the affected countries retaliate, as detailed in his executive orders.

Jake Colvin, President of the National Foreign Trade Council, emphasized that Trump’s tariffs could lead to higher prices for a wide range of products, from avocados to automobiles, advocating for a prompt resolution among the U.S., Canada, and Mexico to prevent further escalation.

Reuters contributed to the reporting of this article.

Swapna Venugopal Ramaswamy is a White House Correspondent. Follow her on X @SwapnaVenugopal