Will new tariffs on imports from Canada and China ease trade deficits or start a trade war? The U.S. could find out if the tariffs take effect around midnight as planned.

The president's new tariffs could impact the cost of groceries, energy and a variety of every-day goods.

America's top trade partners say they're planning retaliatory tariffs while trying to stop the ones President Donald Trump is set to impose. The president plans to force U.S.-based companies to pay 25% extra on imports from Canada and Mexico.

President Trump and Mexican President Claudia Sheinbaum said Monday that their planned tariffs were on hold for a month to give time for further negotiations, and Mexico said it planned to deploy 10,000 members of its national guard to address drug trafficking.

The two leaders announced the move after what Trump described on social media as a “very friendly conversation,” and he said he looked forward to the upcoming talks.

The number is 10% for Canadian energy products and Chinese goods.

Some economists say U.S. households would spend about $2,600 more annually under the plan. "Any good we're bringing in from Canada or Mexico again, whether it's a business or a consumer, is going to be the one ultimately paying that 25% additional fee," said senior U.S. economist Matthew Martin.

The president says there may be potential pain but will be worth it for the end result. He says he wants to reduce trade deficits and secure U.S. borders.

AP Wire Services contributed to this report.