ABC News’ Alexis Christoforous discusses the potential impact of U.S. tariffs on Canada and Mexico set to go into effect next week.

The nominee to become President Donald Trump’s chief White House economist defended his boss’s decision to charge ahead with duties on some of the US’s biggest trading partners, telling senators Thursday the country can have a “fabulous economy” even with high tariffs.

China has American agricultural exports in its cross hairs as it prepares countermeasures against fresh U.S. import tariffs, China's state-backed Global Times reported, raising the stakes in an escalating trade war between the world's top two economies.