China vowed on Tuesday to impose additional tariffs on certain U.S. goods starting March 10 in response to Trump's latest tariff threats. Canada has also pledged to retaliate, while Mexico is still evaluating its course of action.

The world's second-largest economy announced it will impose an additional 15% tariff on U.S. chicken, wheat, corn, and cotton, along with an extra 10% levy on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits, vegetables, and dairy imports, according to a statement on the finance ministry's website.

This move follows the Trump administration's decision to double tariffs on Chinese goods to 20% starting Tuesday, while 25% tariffs on imports from Mexico and Canada remain pending for the same date.

Although Trump previously postponed tariffs on Mexico and Canada by a month, many had expected another delay. However, the president made it clear that this time, "there is no room for negotiation," stating that the tariffs are intended to address fentanyl trafficking, illegal immigration, and trade imbalances.

Canadian Prime Minister Justin Trudeau announced that Ottawa would impose an immediate 25% tariff on C$30 billion ($20.7 billion) worth of U.S. imports, with an additional C$125 billion ($86.2 billion) in tariffs if Trump's measures remain in place after 21 days. He previously indicated 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 violate the U.S.-Mexico-Canada free trade agreement signed by Trump during his first term.

Ontario Premier Doug ford also warned that Canada is prepared to halt shipments of nickel and electricity exports from his province to the U.S. in retaliation.

Mexican President Claudia Sheinbaum is expected to announce her country's response during a morning news conference in Mexico City on Tuesday, according to the country's economy ministry.

Beyond tariffs on agricultural products, China has also placed 25 U.S. firms under export and investment restrictions on national security grounds.

China's commerce ministry condemned the U.S. tariffs, stating that they violate World Trade Organization rules and undermine the basis for economic and trade cooperation between China and the U.S.

The escalating Trade War 2.0 continues to rattle financial markets, with the S&P 500 tumbling and nearing a two-month low. The ongoing trade tensions are expected to keep pressure on risk assets.