US President Donald Trump said he would move forward with imposing 25% tariffs on goods imported into the US from Canada and Mexico, saying time was running out to reach a deal.

US stocks fell in response to the measures, which have been threatened since earlier this year and are set to take effect on Tuesday.

An additional 10% tariff on Chinese imports is also expected to take effect, putting significantly higher trade barriers on America’s three top trading partners than they had just weeks ago.

All three countries have said they will retaliate against the US in response to the tariffs, raising the prospect of a wider trade war.