President Trump’s 25% tariffs on goods from Mexico and Canada took effect first thing Tuesday. Canada responded with plans to impose 25% tariffs on nearly $100 billion of U.S. imports, and Mexico's president said it would also retaliate, with a range of moves to be announced Sunday.

Investors were rattled: the Dow industrials and other indexes fell in morning trading Tuesday, while gold surged, Wall Street's "fear gauge" picked up, and global equities largely retreated. Stocks had slid Monday, after Trump confirmed tariffs would go ahead.

Tuesday's moves in the Canadian dollar and Mexican peso were relatively modest, however, with some traders betting hefty tariffs will be short-lived.

Economists say American importers and businesses will likely pass along the cost of tariffs to consumers, meaning individuals are likely to see higher prices at grocery stores and car dealerships.