WASHINGTON — Canada will begin imposing 25% tariffs on select U.S. car imports Wednesday, ratcheting tensions between Washington and Ottawa as the rest of the world grapples with President Donald Trump’s ongoing assault on the global economic order.

Canada’s move came hours after Beijing vowed that China would “fight to the end” over the Trump administration’s tariff policy, which it characterized as an attempt to “blackmail” the world. As of Wednesday, all products imported from China to the United States would face a duty of 104%.

The steps from two of America’s largest trading partners — one friend, one foe — exemplified the challenges ahead for the Trump administration, which said that its sweeping global tariffs policy on nearly every country on Earth would remain in place. Only direct negotiations with trading partners, on an individual basis, could potentially result in new trade agreements that would lift or ease some restrictions, officials said.

The news led to yet another day of market turmoil, with the Dow Jones industrial average, Standard & Poor’s 500 and Nasdaq all beginning the day with promising rallies that disappeared by the closing bell.

Prime Minister Mark Carney said Tuesday that Canada’s new tariffs will go into effect at 12:01a.m. EDT on non-compliant vehicles from the United States, and on contents of CUSMA-compliant vehicles not from Canada or Mexico. CUSMA, called USMCA in the United States, refers to a trade agreement negotiated between Canada, the United States and Mexico during the first Trump administration.

The trade war is already reverberating through the auto industry, with Jaguar, Land Rover and Audi halting exports to the United States, and U.S.-based Stellantis — which produces brands such as Chrysler, Dodge and Jeep — announcing an initial round of 900 temporary layoffs at five U.S. plants.

“President Trump caused this trade crisis,” Carney said in a statement posted on the social media site X. “Canada is responding with purpose and with force.”

Trump told reporters Tuesday that he was “doing very well in making tailored deals” with countries around the world, and said that over 70 nations had reached out to the White House to start negotiations. He added that the U.S. is “taking in almost $2 billion a day in tariffs.”

But Trump has said he is waiting, in particular, for talks to begin with China, the third-largest U.S. trading partner after Canada and Mexico. On Wednesday, the administration will push forward with Trump’s threat to pile on additional 50% tariffs if China does not remove its 34% tariffs against the United States.

Trump first announced 20% tariffs against China soon after taking office, complaining that the Asian nation had forced fentanyl to flood into the country. Last Wednesday, as part of his sweeping tariffs measure he dubbed “Liberation Day,” Trump enacted an additional 34% tariff against the country.

White House officials continued to champion tariffs as the ultimate leverage, forcing other countries to line up to negotiate with the president. White House press secretary Karoline Leavitt repeated Tuesday that “the phones are ringing off the hook” from global leaders, hoping to negotiate an end to the crippling taxes.

“It’s because the world knows that they need the United States of America. They need our markets. They need our consumers,” Leavitt said. “The president has a lot of leverage on his side.”

Not only is China the world’s largest trading partner, it is the provider of many goods Americans rely on — from iPhone components to cheap clothing. Already, members of Trump’s inner circle — and the broader Republican Party — are questioning the president’s tactics.

Elon Musk, the president’s close adviser and the world’s richest man, who has several businesses with interests in China, complained in recent days on X, which he owns, about tariffs. He called Trump’s trade advisor, Peter Navarro, “dumber than a sack of bricks” over his guidance to the president.

“Navarro is truly a moron,” Musk posted. “What he says here is demonstrably false.”

Several Republican lawmakers, including prominent GOP senators, initially responded to the policy change with draft legislation that would reassert congressional control over tariff policy. But Senate Majority Leader John Thune of South Dakota threw cold water on the bill’s prospects Monday.

“I don’t think that has a future,” Thune said. “The president’s indicated he would veto it. I don’t see how they get it on the floor in the House, so I think at this point we’re kind of waiting to see what’s going to happen next.”

The lack of congressional action leaves countries around the world with little choice but to directly negotiate with the Trump administration. Yet it is unclear what Trump will consider adequate for success in any bilateral agreement, much less whether a common standard will emerge for countries entering talks going forward.

Sitting in the Oval Office on Monday, Israel’s Prime Minister Benjamin Netanyahu said to the president, “we will eliminate the trade deficit with the United States.” Israel has been hit with a 17% tariff rate by the Trump administration, ostensibly over the country’s trade deficit with Washington.

“We intend to do it very quickly — we think it’s the right thing to do — and we’re going to also eliminate trade barriers,” Netanyahu said. “I think Israel could serve as a model for many countries who ought to do the same.”

And yet, in response to a reporter’s question moments later, Trump would not commit to lifting the new tariff rate on Israel even if Netanyahu were to fulfill his promise. “Maybe not,” Trump said.

“Don’t forget, we help Israel a lot,” Trump added. “We give Israel $4 billion a year, that’s a lot.”

The remarks suggested that case-by-case talks with trading partners would involve topics well beyond tariffs, and even beyond trade deficits, to possibly include foreign aid, military assistance and other matters unrelated to economic policy — a series of negotiations that could take months, if not years, to complete.

Kevin Hassett, director of the National Economic Council under Trump, said in an interview with Fox News on Tuesday that the administration is “managing a massive amount of requests for negotiations.”

“It’s actually, logistically, quite challenging,” he added.

Trump announced a baseline tariff rate of 10% for nearly all countries last week. For those countries with higher, customized tariff rates — assigned based on the president’s belief that they have treated the United States unfairly – the new import duties are scheduled to go into effect on Wednesday morning. Russia was not included on the list.

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