What to know:

• Trump’s tariffs go into effect: Trump announced new import taxes on April 2, which he dubbed “Liberation Day,” as part of his “reciprocal” trade plan that goes into effect today. Trump declared that the U.S. would now tax nearly all of America’s trading partners at a minimum of 10% — and impose steeper rates for countries that he says run trade surpluses with the U.S.
• EU becomes the latest to retaliate: European Union member states have voted to approve retaliatory tariffs on $23 billion in goods in response to Trump’s 25% tariffs on imported steel and aluminum. The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1.
• China and Canada also announce new tariffs: China announced it would raise tariffs on American goods to 84% starting Thursday. Meanwhile, Canada enacted a 25% levy on auto imports from the U.S. that do not comply with the 2020 US-Mexico Canada Agreement.
• Global markets react: In Asia, Hong Kong’s Hang Seng rose 0.7%, while the Shanghai Composite index closed 1.3% higher. Thailand’s benchmark also rose, apparently due to speculation that Beijing might be preparing to hold talks with the Trump administration. In early Europe trading, Germany’s DAX slipped 2.5% to 19,762.13; the CAC in Paris 40 declined 2.6% to 6,917.13; and Britain’s FTSE 100 gave up 2.6% to 7,704.82.