China said it would impose additional tariffs ranging from 10% to 15% on a wide range of U.S. agricultural imports, including chicken, pork, soybeans, and beef. The tariffs are set to take effect next week.

Canadian Prime Minister Justin Trudeau also said Canada would impose immediate 25% tariffs on over $20 billion worth of U.S. imports. He said on Tuesday that additional tariffs affecting $86 billion worth of products will be implemented in 21 days.

The administration of U.S. President Donald Trump has imposed 10 percent tariffs on imports from China and 25 percent on most imports from Canada and Mexico. They took effect on March 4.

Mexico is also expected to respond later on Tuesday.

The swift countermeasures by China and Canada sent shockwaves through global markets.

Asian markets experienced significant declines, with Japan’s Nikkei index plummeting over 2% and Hong Kong’s Hang Seng index down by 1.5%. In the U.S., stocks closed sharply lower on Monday, with the S&P 500 falling 1.8%, the Nasdaq dropping 2.6%, and the Dow decreasing by 1.5%.

President Trump defended the tariffs. He argued that the tariffs would incentivize car manufacturers and other businesses to relocate their production to the United States.

“I would just say this to people in Canada or Mexico: If they’re going to build car plants, they are much better off building here, because we have the market where they sell the most,” Trump said during a press briefing at the White House.