Global markets reacted swiftly today to President Donald Trump’s decision over the weekend to move forward with his threat to impose tariffs of 25% on imports from Canada and Mexico and a 10% levy on Chinese goods entering the United States.

Today, Mexican President Claudia Sheinbaum reached a deal to delay implementation of the Tariffs for one month as the two countries negotiate further agreements on border security, according to the New York Times.

Oil prices rose and U.S. stock indexes fell this morning, with the S&P 500 down about 1.5% and the Nasdaq down roughly 1.8%, according to the New York Times. Exchanges in Europe and Asia also showed steep drops.

The tariffs on Canada and China are still scheduled to go into effect Tuesday. In response, government officials in Mexico and Canada announced retaliatory tariffs against the U.S.

Canadian Prime Minister Justin Trudeau said Saturday that Canada has ordered targeted 25% tariffs on U.S. goods including beverages, cosmetics and paper products worth $20 billion, the Associated Press reported on Sunday. Canada, the United States’ top trading partner, soon announced a second list of goods that will be tariffed including passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products, aerospace products and more valued at an estimated $85 million, according to the AP.

The new levies by the Trump administration have sparked fears of a prolonged trade war with key U.S. allies and neighbors. In his speech, Trudeau spoke directly to U.S. citizens and warned the tariffs would rise costs of food in grocery stores and gasoline at the pump.

“They will impede your access to an affordable supply of vital goods crucial for U.S. security such as nickel, potash, uranium, steel and aluminum,” he said. “They will violate the free trade agreement that the president and I, along with our Mexican partner, negotiated and signed a few years ago.”

Potash is a key fertilizer ingredient, and over 80% of the U.S. supply comes from Canada, according to the American Farm Bureau Federation. U.S. agricultural industry experts have acknowledged that the tariffs will be a blow to the sector, which is already in the third year of an economic slowdown in Iowa and nationwide.

In a statement released Sunday, Farm Bureau President Zippy Duvall “expressed alarm” about the potential harm Trump’s tariff order could have on U.S. farmers and agricultural markets.

“Farm Bureau members support the goals of security and ensuring fair trade with our North American neighbors and China, but, unfortunately, we know from experience that farmers and rural communities will bear the brunt of retaliation,” he said. “Harmful effects of retaliation to farmers ripple through the rest of the rural economy.”

Here is a wrap-up of what you need to know today on Trump’s pending tariff order and its potential affects:

• Wall Street falls following Trump’s tariffs but pares its losses after Mexico announces a delay (Associated Press)
• How the US-Canada-Mexico tariffs will work — and what products are targeted (Wall Street Journal)
• Trump’s ‘tariff thrashing’ spurs crisis response from Canada (Bloomberg)
• One response to Trump’s tariffs: trade that excludes the US (New York Times)
• US manufacturers were the most optimistic in 2 years — but that was before Trump tariffs (MarketWatch)