President Donald Trump has followed through on a campaign pledge to impose significant tariffs on Canada, Mexico and China.

The new tariffs, going into effect Tuesday, impose a 25% levy on imported products from both Canada and Mexico and a 20% tariff on goods imported from China, according to the administration.

Trump has repeatedly argued that open trade policies cost the United States millions of jobs, and that tariffs will help to restore national prosperity by emphasizing the importance of American manufacturing.

Most mainstream economists disagree with that assessment, arguing that tariffs will lead to dramatic price increases and will hurt the U.S. economy. A study from the Yale University Budget Lab indicated that the tariffs will represent a tax hike of roughly $1.4 trillion over 10 years, which would disproportionately impact lower-income households.

Stock markets have experienced significant losses as the tariffs went into effect this week, according to officials.

Here’s what to know.

What countries are impacted by the tariffs?

Products from China had already been subject to a 10% tariff, but that amount will now rise to 20% thanks to the administration’s order.

Products from Canada and Mexico will also be subject to a 25% tariff, according to the Trump administration.

How have those countries responded?

China has already announced that it will impose tariffs of up to 15% on U.S. farm exports, and has warned that additional tariffs could be implemented.

Canada is also hitting back with retaliatory tariffs, with Prime Minister Justin Trudeau announcing the country will apply tariffs to more than $100 billion in American exports in coming weeks.

Mexico will also implement retaliatory tariffs later this week.

In a press briefing on Tuesday, Mexican president Claudia Sheinbaum condemned President Donald Trump’s decision to impose 25% tariffs on imports from her country. 

Which products could be impacted by the tariffs?

One sector of the economy that could be especially hard hit by the tariffs is the home construction industry. CNBC cites Rob Dietz, the chief economist at the National Association of Home Builders, warning that tariffs could increase the cost of a new home by as much as $10,000, with gypsum, lumber and drywall all potentially surging in terms of cost.

The increasing cost of lumber could cost homeowners as much as $5,000. Roughly one-third of the lumber used in the home building industry comes from Canada, according to researchers.

The automobile industry will also be heavily impacted, as tariffs on Mexico and Canada could reduce production by as much as 33%, or 20,000 vehicles per day, according to experts.

A prolonged tariff could also cause layoffs within that industry, experts warn.

Other products that will be impacted include food items and electronics, according to researchers.

Canadian Prime Minister Justin Trudeau delivered a message to Americans, Canadians and one specific message to Donald Trump about U.S. tariffs placed on Canadian goods.

How will the tariffs impact Illinois?

According to Illinois government data, the state exports more than $1 billion in agricultural products to China, meaning that the 15% tariff could have a significant impact on the state’s agricultural industry.

Illinois also exports more than $2 billion in agricultural products to Mexico.

The state imports more than $27 billion in computers and other electronic equipment from China, according to state data, meaning that consumer prices on electronics could go up.

The CEO of Best Buy has previously warned of such price increases, which could hit Illinois especially hard.

Canada is one of Illinois’ biggest sources of oil and gas products, with more than $47 billion worth of those products imported each year, according to state data.

The imposition of tariffs could cause gas prices to rise, and could also impact heating bills.

Illinois’ primary import from Mexico are alcohol and tobacco products, with the state bringing in nearly $6 billion worth of those products each year.

Homeowners could also be hit hard with increased costs for electrical equipment and appliances, with the state importing nearly $2 billion worth of those products form Mexico each year.