Investors shouldn’t take much comfort from how the markets performed during the first Trump administration’s trade war.

President Donald Trump is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, saying that time had run out to reach a deal. US stock markets sank in response to the measures, which have been threatened since earlier this year and are due to go into effect on Tuesday.

The stock market is plunging as President Trump's tariffs on China, Canada and Mexico escalate the trade war. China and Canada have hit back with retaliatory tariffs and Mexico is expected to also hit back.