Trump launched a new trade war Tuesday by imposing tariffs against Washington’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin. Trump put 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy.

Canada is delaying its plan for a second phase of retaliatory tariffs against the US after President Donald Trump exempted Canadian and Mexican goods covered by the North American trade agreement.

Trump said he was granting exemptions to tariffs on goods that come under a previous trade pact until 2 April.