Donald Trump has admitted his tariffs on major trading partners will cause “a little disturbance” – as China said it was “ready” for “any type of war” with the US.

The US president made his comments in an address to Congress, hours after the levies on imports came into effect.

Producers in Mexico and Canada have been hit with a 25% tax on items they export to the US, while a 20% tariff has been applied to Chinese imports.

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Stock markets, which Mr Trump is said to pay close attention to, slid on the tariffs news.

Exporters in the affected countries as well as businesses in the US and economists have raised concerns about the potential price-raising impact of the tariffs.

Making imports more expensive will likely make goods more expensive and could push prices up across the board.

Concern over threat to interest rates

A cycle of high inflation could lead to interest rates being higher for longer in the US, the world’s largest economy, which could dampen economic activity.

A slowed US economy would have global consequences but even without a hit to the States, there are fears of a global trade war – in which countries add their own trade barriers in the form of tariffs.

The Chinese embassy in the US posted on X: “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”

China imposes retaliatory tariffs

The president, however, said he was “just getting started” after 43 days into his second term.

China and Canada have retaliated with their own tariffs against the US.

From next week China will add its own 15% levy on a range of agricultural products such as chicken, wheat, corn and cotton.

An extra 10% will be added to soya beans, pork, beef, fruit, vegetables and dairy products imports.

The country has also raised additional complaints against the US with the World Trade Organisation (WTO).

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Compromise ‘as early as Wednesday’?

Canada’s prime minister Justin Trudeau said his country was launching its own WTO challenge and described the US tariffs as a “dumb thing to do”.

He also warned the move by the Trump administration would impact American workplaces and add to inflation in the US.

Addressing the American public, he said: “We don’t want this… but your government has chosen to do this to you.”

Canada has announced the imposition of 25% tariffs on US imports worth C$30bn (£16.3bn).

But US commerce secretary Howard Lutnick struck a different note on tariffs and on Monday said the president will “probably” announce a compromise with Canada and Mexico as early as Wednesday.

Donald Trump has said he “appreciates” President Zelenskyy’s renewed pledge to work with him on a peace deal – and that Russia has sent “strong signals” it’s also ready for a truce.

The US president made the comments during a marathon address to Congress in which he talked up his actions so far and set out priorities for the future.

“We have accomplished more in 43 days than most administrations accomplished in 4 years, 8 years – and we are just getting started,” the president said.

But it in a highly divided Congress, Democrats registered their dissent with stone faces, placards calling out “lies” and one member’s ejection.

Mr Trump said he’d received an “important letter” from the Ukrainian leader saying he would work under his leadership to reach a peace deal.

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Quotes he read matched a post by Mr Zelenskyy earlier on Tuesday in which he expressed regret for last week’s row and said he was ready to sign a minerals pact.

“The letter reads Ukraine is ready to come to the negotiating table as soon as possible to bring lasting peace closer,” Mr Trump said.

“I appreciate that he sent this letter. Just got it a little while ago,” he added.

The president told a packed House chamber that Moscow had also indicated that they were ready for peace.

He said: “Simultaneously, we’ve had serious discussions with Russia and have received strong signals that they are ready for peace. Wouldn’t that be beautiful?”

Longest speech

However, the majority of Mr Trump’s speech in the Capitol in Washington DC focussed on domestic issues.

At one hour and 39 minute, it was the longest annual address a president has delivered to Congress, breaking Bill Clinton’s record of one hour and 28 minutes.

Mr Trump lauded his nascent second stint in the White House and said he’d taken “unrelenting action” that had already achieved more than some administrations manage in years.

The president began his speech by proclaiming “America is back!” – prompting enthusiastic chants of “USA”.

Mr Trump said “the American Dream is surging – bigger and better than ever before”.

However, his remarks were met with jeers from Democrats and the House speaker called on the serjeant-at-arms to eject representative Al Green for refusing to stay quiet. Mr Green had stood up and shouted at Mr Trump, gesturing toward the president with his cane.

Other Democrats waved paddles with statements including “false” and “Musk steals”. Some wore blue and yellow in solidarity with Ukraine.

With vice president JD Vance sat behind him, Mr Trump reeled off a list of his actions since he started his second term in January.

Among others, he mentioned rolling back the Paris climate accords, removing the “tyranny” of diversity policies, leaving the World Health Organization and the naming of the ‘Gulf of America’.

“Our country will be woke no longer,” he declared.

There was also a special mention for Elon Musk’s government efficiency department, DOGE, which has controversially cut thousands of jobs already.

President Trump claimed the billionaire’s efforts were saving the country billions by cutting waste and fraud.

Mr Musk was there in person, unusually in a suit, and stood to acknowledge the applause from the mass of Republicans in the chamber.

“Thank you very much, we appreciate it,” Mr Trump told him.

The president also reaffirmed his commitment to tariffs after measures targeting Canada, China and Mexico took effect yesterday.

He said the US had been “ripped off for decades by every country on earth” and that tariffs were also about “protecting the soul of our country”.

The president has claimed previously they are in response to the three countries not doing enough to halt the flow of powerful drugs such as fentanyl.

In response, China’s US embassy tweeted ominously: “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”

The president also said he would “make America affordable again” and that President Biden hadn’t done enough to control inflation.

“Joe Biden especially let the price of eggs get out of control – and we are working hard to get it back down. A major focus of our fight to defeat inflation is rapidly reducing the cost of energy,” he added.

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Illegal immigration also took up a chunk of his record-breaking speech.

The president repeated his well-worn pledge to clamp down on people entering through the southern border and reverse what he called “insane open-border policies”.

To another burst of applause, he said he had designated some South America gangs as “terrorist” organisations.

Greenland and the Panama Canal also got a mention.

The president said America intended to reclaim the famous shipping passage – which it relinquished control over in 1999 – and repeated his ambition to own the vast Danish territory.

Addressing Greenlanders, he said: “We strongly support your right to determine your own future, and if you choose, we welcome you into the United States of America.”

“We need Greenland for national security and even international security,” he said. “And we’re working with everybody involved to try and get it… and I think we’re going to get it, one way or the other.”

First lady Melania Trump watched the speech from on high in the gallery, with guests also including the family of the firefighter killed during the assassination attempt last summer, and a man recently freed from a Russian jail.

There was also a heart-warming moment where a child recovering from brain cancer was summoned to stand up.

Wearing a police uniform, 13-year-old DJ Daniel was lifted into the air in disbelief by his dad as President Trump told him: “I am asking our new Secret Service director, Sean Curran, to officially make you an agent of the United States Secret Service. Thank you, DJ.”

He made us wait for a punchline but he got there.

For an address that was trailed as “fireworks” by Team Trump, finding a fresh news line was more hard work than firework. From Donald Trump, we’d heard it before.

Until, that is, he got to Ukraine, Zelenskyy, the mineral deal and the “peace” beyond.

He said the Ukrainian president had been in touch saying he was ready to sign an agreement on minerals with the US “at any time that is convenient for you”.

It’s what he wanted to hear and his reaction sounded like a breakthrough, following the breakdown at the Oval Office between the pair.

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Trump said: “I appreciate that he sent this letter. Just got it a little while ago. Simultaneously, we’ve had serious discussions with Russia and have received strong signals that they are ready for peace. Wouldn’t that be beautiful.”

It was the big headline from a nearly two-hour speech that was disrupted and defined by Democratic protest. It’s what America’s political division looks like – like it’s never looked before.

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In a Capitol chamber thick with acrimony, he was led in down an aisle where they cheered him on one side and on the other they remained silent, sullen and seated. One Democrat held a sign that read: “This is not normal.” It was grabbed by a Representative across the aisle and thrown into the air.

This annual address to Congress is, typically, an occasion when a sitting president sits his people down, tells them where they are and where they’re going. This was an opportunity to draw breath and reflect after 43 days of a presidency in perpetual motion.

In the event, the sales pitch quickly descended into a sporting event. Democrats held signs that read “Musk Steals” and “That’s a lie”. Female representatives dressed in pink to protest at Trump policies they said were negatively impacting women and families, and other Democrats took off jackets to reveal shirts with the slogans “Resist” and “No more kings”.

Then there was the ejection of Representative Al Green. He heckled Trump and later said that hearing the president talking about his mandate “triggered something” in him.

It all reflected where the Democrats are 43 days into this presidency – furious, yet fragmented. Earlier in the day, party members had been urged by their House leader Hakeem Jeffries to show opposition as a check and balance against the “excesses of the administration”.

The party hasn’t come to a unified view on how to play this president – they share the personal animosity, if not the political instinct.

On the podium, Donald Trump had a more comfortable night than his last joint address in 2020.

Then, he had Democratic Speaker Nancy Pelosi rip up a copy of his speech. Last night, he was flanked by Vice-President JD Vance and Republican Speaker Mike Johnson bearing expressions of true love.

They laughed in all the right places to a speech that will have felt familiar. “America is back,” proclaimed Trump in kicking off an extended recap, a brag and not a humble one, of a presidency he said was “just getting started”.

A big story in the build-up had been tariffs, stock markets tumbling and worries that smouldering trade wars could destabilise the US economy.

The concerns are shared by economists and Republican lawmakers and Trump’s commerce Secretary had suggested he might be preparing to announce a compromise.

Not last night, he didn’t.