Donald Trump is set to speak to the leaders of Canada and Mexico later but warned them against retaliating to his tariffs, saying: “We can play the game all they want.”

The US leader has announced that he is imposing 25% tariffs on imports from Canada and Mexico.

The two countries then hit back with retaliatory tariffs.

However, the US president returned to Washington from Mar-a-Lago on Sunday night and brushed aside the reprisals.

“I love the people of Canada. I disagree with the leadership of Canada. And something’s gonna happen there.

“If they want to play the game, I don’t mind. We can play the game all they want.”

Mr Trump also threatened to impose steeper tariffs elsewhere, telling reporters import taxes will “definitely happen” with the European Union.

When asked about potential tariffs on the UK, Mr Trump told reporters “we’ll see what happens”.

He said the UK “is out of line” on trade with US, but was confident the situation “can be worked out” without tariffs.

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Later on he posted on his Truth Social platform: “Anybody that’s against Tariffs, including the Fake News Wall Street Journal, and Hedge Funds, is only against them because these people or entities are controlled by China, or other foreign or domestic companies.

“Anybody that loves and believes in the United States of America is in favor of Tariffs. They should have never ended, in favor of the Income Tax System, in 1913. The response to Tariffs has been FANTASTIC!”

The Trump administration had said the tariffs are aimed at stopping the spread and manufacturing of the opioid fentanyl, as well as pressuring America’s neighbours to limit illegal immigration to the US.

But it risks a trade war and higher prices for American consumers.

Shares on Asian markets tumbled in early trade on Monday and US equity futures pointed sharply lower in the wake of Mr Trump’s imposition of tariffs.

Japan’s Nikkei opened down 2% this morning, with large falls also reported on Taiwan and South Korea’s indices.

“Trump’s trade war has started,” said Alvin Tan, head of Asia currency strategy at RBC Capital Markets in Singapore.

Read more:
Trump threatens Canada, saying it should become ‘cherished 51st state’
Why has Trump targeted Mexico and Canada?
How Donald Trump’s tariffs could impact consumers

Earlier on Sunday, Mr Trump said any potential pain caused by the trade war would be worth it.

“Will there be some pain? Yes, maybe (and maybe not!). It will all be worth the price that must be paid.”

Meanwhile, Canada’s high commissioner to the UK Ralph Goodale, speaking to Sky News’ Kamali Melbourne, had a warning for allies.

He said: “I would just say to our allies around the world watch this closely, you could be next, and in the meantime, stand by your friends.”

He added Mr Trump’s words were a “salesman’s pitch” and despite the historically close relationship between the countries “we don’t want to be each other”.

Donald Trump claims this tariff gut-punch at his three largest trading partners is just a matter of common sense.

They in turn are imploring him to see reason, with Mexico and China calling for dialogue and cooperation.

Follow live updates: Trump ignites trade war

Canada’s prime minister Justin Trudeau said on Saturday night – as he announced a reciprocal 25% tariff on $106bn worth of American goods – that the last time he had spoken directly with the US president was at Mar-a-Lago before the inauguration.

Much good that visit did him.

President Trump is defying the wisdom of decades that free trade encourages growth and prosperity in an interconnected global economy.

He is intent on rebalancing trade deficits, bringing manufacturing home and encouraging foreign investors to set up shop in the US.

His justification for tariffs is that they will force Mexico, China and Canada to halt the influx of fentanyl, its precursor chemicals and illegal migrants into the US.

Mexico is already working hard on both measures.

One of the few areas of diplomatic engagement with China over recent years has been the resumption of cooperation on counter-narcotics.

And as the Canadian prime minister said yesterday, only 1% of illegal fentanyl or illegal immigration crosses into the US via that northern border, and Canada is taking additional measures to reduce that further.

It is surely just a pretext.

Perhaps most alarming to any believer in the sovereignty of nations is the thought that President Trump really means it when he says “Canada should become our cherished 51st state“.

He does not seem to be relenting on his threats against Greenland, after a testy conversation with Denmark’s prime minister where he refused to back down on his demands on the territory.

Read more:
Why has Trump targeted Mexico and Canada?
How Donald Trump’s tariffs could impact consumers

His secretary of state, Marco Rubio, is currently in Panama – where Trump has threatened to take the Panama Canal by force.

Break Canada’s economy and this expansionist US president may believe he can bend their will.

Canada has more than just a trade war on its hands.

President Donald Trump has again threatened Canada in the trade war, repeating that the neighbouring country should become “our cherished 51st state”.

The US leader said this weekend that he is imposing 25% tariffs on imports from Canada and Mexico.

The two countries then hit back with retaliatory tariffs, with their respective leaders announcing the move on Saturday night.

Speaking on his Truth Social platform on Sunday afternoon, Mr Trump said: “We pay hundreds of Billions of Dollars to SUBSIDIZE Canada. Why? There is no reason.

“We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.”

He claimed that without the “massive subsidy” Canada “ceases to exist as a viable country”.

He added: “Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada – AND NO TARIFFS!”

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The Trump administration had said that the tariffs aimed to stop the spread and manufacturing of the opioid fentanyl, as well as pressuring America’s neighbours to limit illegal immigration to the US.

But it risks a trade war and higher prices for American consumers. Economists argue supply chains will be disrupted and businesses will suffer increased costs – leading to an overall rise in prices.

Both Mexico and Canada rely heavily on their imports and exports, which make up around 70% of their Gross Domestic Products (GDPs), putting them at even greater risk from the new tariffs.

In his Sunday posts on Truth Social, Mr Trump also took aim at the Wall Street Journal which he said was leading a “Tariff lobby”, after the newspaper ran an opinion piece titled “The Dumbest Trade War in History”.

Read more:
Why has Trump targeted Mexico and Canada?
How Donald Trump’s tariffs could impact consumers

Announcing the retaliatory tariffs on Saturday night, Canadian Prime Minister Justin Trudeau delivered a passionate message to American consumers.

“It will have real consequences for you, the American people,” he said, saying it would result in higher prices on groceries and other goods.

Mr Trudeau reminded Americans that Canadian troops fought alongside them in Afghanistan and helped them respond to domestic crises including the wildfires in California and Hurricane Katrina.

Canada’s ambassador said she hoped the tariffs would not come into effect on Tuesday, but said their government expects to stand firm.

“We’re not at all interested in escalating, but I think that there will be a very strong demand on our government to make sure that we stand up for the deal that we have struck with the United States,” Ambassador Kirsten Hillman told ABC News on Sunday.

Meanwhile in Mexico, President Claudia Sheinbaum said: “We categorically reject the White House’s slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory.”

“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population.”