President Donald Trump is set to impose sweeping 25% tariffs on goods coming from Canada and 10% on goods from China starting Tuesday, in what he has said is a bid to clamp down on the flow of fentanyl and migrants into the U.S.

The world’s two largest economies did not cut a deal to avert sweeping U.S. tariffs, which came into effect after midnight. Beijing immediately retaliated.

China imposed targeted tariffs on American imports on Tuesday and put several U.S. companies, including Google, on notice for possible sanctions, in a measured response to the sweeping duties on Chinese imports imposed by President Donald Trump.