Shares on Asian markets tumbled in early trade on Monday as Donald Trump’s tariffs on goods from Canada, Mexico and China sparked fears of a global trade war.

Japan’s Nikkei opened down 2.9% this morning while Australia’s benchmark – often a proxy trade for Chinese markets – fell 1.8%. Stocks in Hong Kong, which include listings of Chinese companies, fell 1.1%.

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

The US president has also threatened to impose steeper tariffs elsewhere, telling reporters import taxes will “definitely happen” with the European Union.

He said the UK “is out of line” on trade with the US and told reporters “we’ll see what happens”. But he said he was confident the situation “can be worked out” without tariffs.

Mr 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.”

Over the weekend. he announced he is imposing 25% tariffs on imports from Canada and Mexico, and hit China with a 10% levy. Both Canada and Mexico 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,” he said.

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

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Mr Trump said Americans could feel “some pain” from the developing trade war – and claimed Canada would “cease to exist” without its trade surplus with the US.

In a post on his Truth Social platform: “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”

The Trump administration has 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.

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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”.

The UK economy is forecast to improve more slowly than previously predicted after stagnant growth late last year.

The EY ITEM Club expects UK gross domestic product (GDP) to grow by 1% in 2025, down from a previous estimate of 1.5%.

The economic forecaster is the latest influential group to cut its predictions amid continued pressure on businesses, which face further tax and wage rises in April.

It represents another blow to Chancellor Rachel Reeves’ hopes of rapidly growing the economy.

The forecasts also point to 0.8% growth across the economy last year, suggesting only a slight acceleration in economic growth.

It comes after a weaker second half of 2024, with a worse-than-expected 0.1% rise in GDP in November and a 0.1% monthly decline in October.

The economy had flatlined over the third quarter of the year.

But the UK is expected to see stronger growth next year, with the forecasts indicating it could see a 1.6% rise in 2026.

Anna Anthony, EY UK regional managing partner, said: “Despite the subdued finish to 2024, there are signs that the UK economy could turn a corner and achieve stronger levels of growth this year.

“Following a prolonged period of financial uncertainty, we should start to see an improvement in consumer confidence as real wages continue to increase, with many households feeling less of a financial squeeze by the end of 2025.”

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She added: “The outlook for UK business is more of a mixed picture.

“While business investment is set to increase, tightening financial conditions and global trade uncertainty are expected to weigh on private sector confidence in the first half of this year.”

Barclays says an IT glitch that left some customers locked out of their accounts has been resolved after the disruption entered a third day.

The bank said the “technical issue” has been fixed and delayed payments processed.

In a statement on Sunday, Barclays said: “We are working on bringing balances up to date for some of our customers and addressing any outstanding issues.

“We are very sorry for any disruption and will ensure that no impacted customer is left out of pocket.”

The IT glitch is not believed to be related to a cyber attack or malicious activity.

The disruption started on Friday – on what was payday for many British workers and the deadline for self-assessment tax returns.

Barclays apologised to people who had been affected and promised no one would be left out of pocket.

It added that call centres would be open for longer this weekend and the bank will be proactively contacting customers who may be vulnerable.

However, the company’s handling of complaints provoked an angry reaction online.

Customers have posted on X that they were unable to buy shopping for themselves and their young children or pay their bills.

In response to one user who said her household “has no access to money”, the Barclays UK Help account asked: “Are there any friends or family who can offer support?”

When she said she didn’t and criticised the reply as “so triggering”, the bank’s X account posted links to the Trussell Trust, a charity that runs food banks, and Citizens Advice, which offers help for a range of problems.

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The beginning of the year is also a key time for people who file self-assessment tax returns.

In a statement, HMRC said it is “working closely” with Barclays to minimise any impact on those submitting their self-assessments.

An HMRC spokesperson said: “Our services are working as normal, so customers will still have been able to file their returns on time.

“Also, the issues will not result in late payment penalties as they don’t apply until 1 March.”