*

Deadline passes for tariffs on Canadian, Mexican, Chinese

goods

*

China announces tariffs on US agricultural goods, export

curbs

*

Canada plans immediate retaliatory tariffs

*

Mexico to announce response on Tuesday

*

Tariffs could lead to economic downturn, businesses warn

By David Lawder and Andrea Shalal

WASHINGTON, March 4 (Reuters) - 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%, launching new trade conflicts with the top three

U.S. trading partners.

The tariff actions, which could upend nearly $2.2 trillion

in two-way annual U.S. trade went live at 12:01 a.m. (0501 GMT),

hours after 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.

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.

Canada and Mexico, which have enjoyed a virtually

tariff-free trading relationship with the U.S. for three

decades, were poised to immediately retaliate.

Canadian Prime Minister Justin Trudeau said Ottawa would

respond with 25% tariffs on C$30 billion ($20.7 billion) worth

of U.S. imports, and another C$125 billion if Trump's tariffs

were still in place in 21 days. He said previously that Canada

would target American beer, wine, bourbon, home appliances and

Florida orange juice.

"Tariffs will disrupt an incredibly successful trading

relationship," Trudeau said, adding that they would violate the

U.S.-Mexico-Canada free trade agreement signed by Trump during

his first term.

Ontario Premier Doug Ford told NBC that he was ready to cut

off shipments of nickel and transmission of electricity from his

province to the U.S.

Mexican President Claudia Sheinbaum was expected to announce

her response on Tuesday, the country's economy ministry said.

The European Union's executive Commission said it "deeply

regrets" the decision, which risked disrupting global trade.

Trump has also floated "reciprocal" tariffs on EU goods.

STACKING CHINA TARIFFS

The extra 10% duty on Chinese goods adds to a 10% tariff

imposed by Trump on February 4 to punish Beijing over the U.S.

fentanyl overdose crisis. The cumulative 20% duty comes on top

of tariffs of up to 25% imposed by Trump during his first term

on some $370 billion worth of U.S. imports.

Some of these products saw U.S. tariffs increase sharply

under former president Joe Biden last year, including a doubling

of duties on Chinese semiconductors to 50% and a quadrupling of

tariffs on Chinese electric vehicles to over 100%.

The 20% tariff will apply to several major U.S. consumer

electronics imports from China previously untouched, including

smartphones, laptops, video game consoles, smartwatches and

speakers and Bluetooth devices.

China's new tariffs announced on Tuesday targeted a wide

range of U.S. agricultural products including certain meats,

grains, cotton, fruit, vegetables and dairy products.

Beijing also placed 25 U.S. firms under export and

investment restrictions on national security grounds. Ten of

these firms were targeted for selling arms to Taiwan.

China's commerce ministry said the U.S. tariffs violated

World Trade Organization rules and "undermine the basis for

economic and trade cooperation between China and the U.S."

U.S. farmers were hard hit by Trump's first-term trade wars,

which cost them about $27 billion in lost export sales and

conceded share of the Chinese market to Brazil.

RECESSION FEARS

The tariffs on Mexican and Canadian products could have much

deeper 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.

"Today's reckless decision by the U.S. administration is

forcing Canada and the U.S. toward recessions, job losses and

economic disaster," Canadian Chamber of Commerce CEO Candace

Laing said in a statement.

She said the U.S. tariffs will raise costs for consumers and

producers and disrupt supply chains. "Tariffs are a tax on the

American people."

Matt Blunt, president of the American Automotive Policy

Council representing Detroit automakers, called for vehicles

that meet the U.S.-Mexico-Canada Agreement's regional content

requirements to be exempted from the tariffs.

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.

Trump's confirmation that the tariffs would proceed sent

financial markets reeling with global stocks tumbling and

safe-haven bonds rallying. Both the Canadian dollar and Mexican

peso fell against the U.S. dollar.

PILING ON

Trump has maintained a blistering pace of tariff actions

since taking office in January, including fully restored 25%

tariffs on steel and aluminum imports that take effect March 12,

rescinding prior exemptions.

Trump on Saturday opened a national security investigation

into imports of lumber and wood products that could result in

steep tariffs. Canada, already facing 14.5% U.S. tariffs on

softwood lumber, would be hit particularly hard.

A week earlier, Trump revived a probe into countries that

levy digital services taxes, proposed fees of up to $1.5 million

on every Chinese-built ship entering a U.S. port and launched a

tariff investigation into copper imports.

These add to his plans for higher "reciprocal tariffs" to

match the levies of other countries and offset their other trade

barriers, a move that could hit the European Union hard.