The US president threatens to increase 25% tariffs on Canada if it goes ahead with planned retaliatory action on American goods.

President Donald Trump’s long-threatened tariffs on Canada and Mexico went into effect Tuesday, heightening trade tensions and prompting immediate retaliation. The new tariffs impose a 25% tax on imports from both countries,

China and Canada are hitting back against US tariffs on their imports that came into force today (4 March). In a statement yesterday (3 March), China's Ministry of Finance said it would bring in "additional tariffs" on a selection of US imports,

Prime Minister Justin Trudeau of Canada warned that the Trump administration’s tariffs were leading to a trade war. Mexico’s leader vowed to impose countermeasures on Sunday.

Canada and China swiftly announced retaliatory tariffs against the U.S. on Tuesday, shortly after long-threatened levies by the Trump administration on those countries and Mexico took effect.