Japanese carmakers’ shares fell after US President Donald Trump imposed tariffs against Canada and Mexico, threatening to upend their operations in North America.

The Trump administration claims it’s levying the new tariffs on Canada, Mexico, and China to stop the flow of illegal drugs into the US. Often, presidents use tariffs as a threat during trade negotiations or to protect domestic industries from cheaper foreign products (as the Biden administration did with electric vehicles from China).

Mexico, Canada, China, and Democratic lawmakers in the U.S. have all responded to the new tariffs ordered by President Trump set to go into effect later this week. NBC News' Yamiche Alcindor reports on the new trade war taking shape.

Japan intends to closely monitor the impact on its currency of US President Donald Trump’s new tariffs and is worried about the international fallout from the trade imposts, Finance Minister Katsunobu Kato said.

Global markets buckled up for a turbulent session on Monday after U.S. President Donald Trump launched a trade war with sweeping tariffs on Canada, Mexico and China that threaten to undermine economic growth and reignite inflation.

The invoking of national security to unravel trade agreements could scramble the international trading system in China’s favor.