PRESIDENT Donald Trump's punishing tariffs have gone into effect as American consumers could soon see increases in products imported from Mexico, Canada, and China.

The steep tariffs on the United States' three largest trading partners went into effect at 12:01 am on Tuesday - igniting a trade war that has seen swift retaliation measures from Canada and China.

Trump's sweeping tariffs will have wide-ranging implications on American businesses and consumers.

US customers may soon encounter price increases on several goods, including, cars, trucks, auto parts, electronics, metal products, toys, footwear, alcohol, meats, household appliances, fruits and vegetables, among other products.

The United States gets 75% of its imported toys and sports equipment from China.

Meanwhile, cars sold in the United States are either built in plants in Canada or Mexico.

Trump defended his stance, writing in a Truth Social post, "If companies move to the United States, there are no tariffs!!!"

Companies have two options for dealing with the tariffs: either pass the added cost of imports to consumers in the form of higher prices, or absorb the fees and either cut costs elsewhere or take a profit loss.

Brian Cornell, the chief executive of Target, said his business relies heavily on Mexican produce during the winter months.

Cornell said that Target customers could see rising prices on fruits and vegetables in the coming days due to the 25% tariff on Mexico.

In 2024, the United States imported $46 billion of agricultural products from Mexico, according to the US Department of Agriculture.

"Those are categories where we'll try to protect pricing, but the consumer will likely see price increases over the next couple of days," Cornell warned in an interview with CNBC.

"If there's a 25% tariff, those prices will go up."

Cornell teased that strawberries, avocados, and bananas are some of the items that could see a price hike.

The Target executive downplayed the levies on Chinese goods, saying his business has reduced its reliance on China to about 30% of imports from more than 60%.

In a conference call on Tuesday, Corie Barry, Best Buy's chief executive, warned that price increases are now "highly likely."

"Trade is critically important to our business and industry," Barry said.

"The consumer electronic supply chain is highly global. We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely."

Matt Bilunas, Best Buy's CFO, added, "The giant wildcard obviously is how the consumers are going to react to the price increases in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment."

Canada's Prime Minister Justin Trudeau countered the Trump administration's levies, imposing 25 percent tariffs on American goods.

China announced 15 percent tariffs on imports of chicken, wheat, corn, and cotton from the United States, as well as 10 percent tariffs on imports of sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.

Meanwhile, Mexican President Claudia Sheinbaum called Trump's tariffs "offensive, defamatory, and unsubstantiated," and vowed to respond to the United States' new measures on March 9.

Sheinbaum said her goal is not to start an "economic confrontation" but said her administration will respond with its own "tariff and other measures."

"No one wins with this decision, on the contrary it affects the people," the Mexican president said of the United States' tariffs on Tuesday.

Sheinbaum said members of her administration have a call with President Trump scheduled for Thursday.