Trump confirms plans for 25% tariffs on Mexico and Canada   

Canadian foreign minister says that country is ready to reply 'with $155bn worth of tariffs'

US President Donald Trump has that taxes on imports from Mexico and Canada start on Tuesday. Picture: Carl Court/PA Wire

US president Donald Trump says that 25% taxes on imports from Mexico and Canada would start on Tuesday, sparking renewed fears of a North American trade war that already showed signs of pushing up inflation and hindering growth.

"Tomorrow - tariffs 25% on Canada and 25% on Mexico. And that'll start," Mr Trump told reporters in the Roosevelt Room. "They're going to have to have a tariff."