Kathmandu. US stock markets have fallen sharply after US President Donald Trump announced that he would impose a 25 percent tariff on goods imported from Canada and Mexico.Trump has decided to move forward as per his previous announcement, saying that time is running out for an agreement.

According to the BBC, US stock markets have fallen in response to this decision. Trump had threatened to take such a step since the beginning of this year. Trump said that the decision, which had not been implemented for various reasons before, will be implemented from Tuesday.It is expected that an additional 10 percent tariff will be imposed on Chinese imports. With Trump’s announcement, trade tensions between the US, Canada, Mexico and China are expected to escalate further.

‘There is no room left for Mexico and Canada now,’ Trump said at the White House on Monday, ‘The tariffs are ready. They will go into effect tomorrow.In response, Canadian Foreign Minister Melanie Joly told reporters, “To be clear, if Trump imposes tariffs, we are ready.”

According to Joly, Ottawa plans to impose retaliatory tariffs on $155 billion worth of U.S. imports. The first phase will include tariffs on $30 billion worth of everyday goods—such as pasta and clothing.

She made it clear that Canada does not want a trade war, but that it will retaliate if the U.S. moves forward. “It would put our very existence at risk,” she added, adding that “thousands of Canadian jobs are at risk.”

Mexico and China have also said they will retaliate against the U.S. tariffs, raising the prospect of a global trade war.

Trump had threatened to impose tariffs on Canada, Mexico and China, saying it was necessary to stem the flow of illegal drugs and illegal immigrants.

The tariffs were supposed to go into effect last month, but the US gave Canada and Mexico a month to try to avert a potential trade war.

However, Trump had already imposed a 10 percent tariff on Chinese exports in February, which means Chinese goods now face tariffs of at least 20 percent.