As the tariffs take effect on Tuesday, global markets brace for potential economic disruptions, while Canada, Mexico, and China prepare for a protracted trade battle with the United States.

China's government on Sunday denounced the Trump administration's imposition of a long-threatened 10% tariff on Chinese imports while leaving the door open for talks with the U.S. that could avoid a deepening conflict.

China chose swift retaliation for trade measures in the first Trump administration, but that led to an upward spiral of trade measures and much broader tariffs.