“It’s a big setback,” one analyst said, noting that other countries unhappy with the president’s trade deals are probably watching closely.

The levies, set to take effect at 12:01 a.m. Wednesday, are the latest exchange in a dispute that has disrupted the once harmonious relationship over the past year.

A new White House report says that China sends billions of dollars worth of goods to the U.S. via third countries in order to skirt Trump's high tariffs.

The president said the levies will take effect in 30 days unless Canada drops what the administration called “discriminatory” trade barriers against U.S. products.