Canada to impose retaliatory tariffs as US tariffs come into effect

Steep U.S. tariffs on Canadian and Mexican goods came into effect Tuesday as a deadline to avert President Donald Trump's levies passed without the North American neighbors striking a deal.

Canadian goods will face a 25 percent tariff -- with energy resources hit by a lower 10 percent rate -- while Mexican products face a 25 percent blanket levy, according to orders Trump previously signed. He cited a lack of progress in tackling drug trafficking as he pushed ahead with the duties.

Canada will slap tariffs on U.S. imports beginning Tuesday in response to levies pledged by Trump, Prime Minister Justin Trudeau said Monday, adding "there is no justification" for Washington's actions.

"Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 percent tariffs against $155 billion of American goods," the Canadian prime minister said in a statement.