Prime Minister Justin Trudeau slammed Donald Trump's sweeping tariffs on Canada, calling it a "very dumb thing to do" and vowed to conduct a "relentless fight" to protect its economy. Trump has imposed 25% tariffs on products entering the US from Canada and Mexico, and has increased a levy on goods coming from China. The Canadian prime minister announced retaliatory tariffs on US exports and warned that a trade war would be costly for both countries. But Trump pushed even further in a post on Truth Social, saying: "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!" Trudeau accused the US president of planning "a total collapse of the Canadian economy because that will make it easier to annex us". "That is never going to happen. We will never be the 51st state," he told reporters on Tuesday. "This is a time to hit back hard and to demonstrate that a fight with Canada will have no winners." He said that Canada's main goal remains to get the tariffs lifted so that they "don't last a second longer than necessary". Trump said he is protecting US jobs and manufacturing, and trying to prevent illegal migration and drug trafficking. The US president said his goal is to clamp down on the powerful opioid fentanyl; he has variously blamed the other countries for the drug's arrival in the US. Responding to the accusations, Trudeau said on Tuesday there was "no justification" for the new tariffs, because less than 1% of the fentanyl intercepted at the US border comes from Canada. Trudeau's words were echoed by Mexican President Claudia Sheinbaum, who said there was "no motive, no reason, no justification" for Trump's move. Speaking on Tuesday, she too vowed to issue her own "tariff and non-tariff measures" - but said further details would be given on Sunday. Trump's tariffs are likely to push up prices for consumers in the US and abroad, said John Rogers, an economics professor at American International University. The items most likely to be affected the soonest are food - the fruits, vegetables and other produce the US imports from Mexico - followed by the large amounts of oil and gas imported from Canada, Prof Rogers said. "Prices could go up pretty soon", Prof Rogers warned, though he was reluctant to say by exactly how much or how quickly. "We are in pretty uncharted territory," he told the BBC. The bigger concern for prof Rogers was the potential damage he said was being done to America's longstanding trade partners. "This is kind of sticking your finger in the eye of your neighbour," he said, adding that, in a potential US-Canada-Mexico trade war, "everybody is a loser". The three countries targeted are America's top trading partners, and the tit-for-tat measures also prompted fears of that very trade war. "There's no way you can win a trade war. Everybody suffers, because everybody's just going to wind up paying higher prices and sacrificing quality," Prof Rogers said. Tariffs are a tax on imports from other countries, designed to protect against cheaper competition from elsewhere, and boost businesses and jobs at home. Canada's Immigration Minister Marc Miller warned that as many as a million jobs in Canada were at risk if the tariffs were implemented, given how intertwined trade was between the two countries. "We can't replace an economy that is responsible for 80% of our trade overnight and it's going to hurt," he said on Monday. Speaking to the AFP news agency, a car manufacturing employee in the Canadian province of Ontario said people were indeed "pretty scared" of being laid off. "I just bought my first house," Joel Soleski said. "I might have to look for work elsewhere." The sector is one that could be badly affected by the new tariffs regime in North America. Car parts may cross US-Canada border several times during the manufacturing process, and so might be taxed on multiple occasions. Ontario Premier Doug Ford, whose province is home to Canada's auto manufacturing industry, told reporters on Tuesday that he anticipates assembly plants will "shut down on both sides of the border" as a result of the tariffs. The tariffs were called "reckless" by the Canadian Chamber of Commerce, whose president Candace Laing cautioned that the move would force both Canada and the US towards "recession, job losses and economic disaster". Ms Laing warned they would also increase prices for Americans, and force US businesses to find alternate suppliers that she said "are less reliable than Canadian ones". Canadian provincial leaders have vowed their own responses. Ford of Ontario mooted the possibility of cutting off Canadian electricity supplies and exports of high-grade nickel to the US, as well as putting an export levy of 25% on electricity sent to power homes in Michigan, New York and Minnesota. Canada exports enough electricity to power some six million American homes. Ontario and other provinces have also moved to remove US-made liquor off their shelves. In Nova Scotia, Premier Tim Houston said his province will ban American companies from bidding on provincial contracts, as will Ontario. Ford also announced that a C$100m ($68m; £55.1) contract with Elon Musk's satellite internet company Starlink will be cancelled. Meanwhile China - which now faces tariffs of 20% after Trump doubled an earlier levy - has vowed to fight any trade war to the "bitter end". It has announced its own counter-measures - including tariffs on a range of US agricultural and food products.

US stock markets have tumbled over concerns that President Donald Trump's tariffs on Canada, Mexico and China will lead to a wider trade war and hurt the economy. The S&P 500 index, which tracks 500 of the biggest companies in the US, fell for a second day, ending at its lowest level since November when Trump won the election. The president has followed through on a threat to impose 25% tariffs on imports from Canada and Mexico, and a 20% levy on China. The move drew swift retaliation, including from Canada, where Prime Minister Justin Trudeau warned Trump his decision to target the US neighbour and close trade partner was a "very dumb thing to do". Trump fired back, writing on social media: "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!" US Commerce Secretary Howard Lutnick suggested that Trump could be ready to do a deal with Canada and Mexico. "I think he's going to work something out with them," he told Fox News. Saying it would not be a "pause", he added: "I think he's going to figure out, 'You do more and I'll meet you in the middle some way', and we're going to probably be announcing that tomorrow." It is not clear if Trump will announce a new deal but markets will be closely watching the president's address to Congress on Tuesday. Goods worth several billions of dollars cross the borders of the US, Canada and Mexico each day and their economies are deeply integrated. Stock markets in the US and globally have fallen since Trump announced on Monday that the tariffs would go ahead. Canada and China have already announced retaliatory import taxes on US goods. Mexico's President Claudia Sheinbaum said the country would announce a response on Sunday that would include "tariff and non-tariff measures". The Dow Jones Industrial Average dropped 1.5%, while the Nasdaq, where many technology companies' shares are listed, fell 0.35%. The S&P 500 closed 1.2% lower. American retailers and carmakers were among the hardest hit, with electronics chain Best Buy's share price closing more than 13% lower. The company had warned earlier on Tuesday that the tariffs would lead to higher prices for its shoppers. "The giant wildcard obviously is how the consumers are going to react to the price increases in light of a lot of price increases potentially throughout the year," said Best Buy's chief financial officer Matt Bilunas. Trump said he was imposing the tariffs on Canada, Mexico and China in response to what he said was the unacceptable flow of illegal drugs and illegal immigrants into the US. Trudeau called that justification "completely bogus" and warned that Canada's retaliatory measures would hurt. He said Canada would first hit $30bn worth of products, and target the remaining $125bn over 21 days. Any fresh duties Canada imposes will be in place "until the US trade action is withdrawn", he said. "Canadians are reasonable and we are polite, but we will not back down from a fight, not when our country and the wellbeing of every one in it is at stake," he said. Addressing Trump directly, he added: "Donald, you're a very smart guy. But this is a very dumb thing to do." China also swiftly announced its own counter-measures, which include 10-15% tariffs on some US agricultural goods including wheat, corn, beef and soybeans. China is the US's biggest buyer of these goods. "If the United States... persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end," foreign ministry spokesman Lin Jian said. Trump said he would respond to retaliation with a plan, due in April, for "reciprocal" tariffs. These would be tailor-made to each country and take into account areas such as the trade balance with the US and other taxes, such as VAT. Trump has also threatened to impose 25% tariffs on the EU, recently claiming that the bloc had been "formed to screw the United States". Europe has pledged to hit back, but no tariffs have been implemented yet.

Canada's Foreign Minister Mélanie Joly has told the BBC she takes US President Donald Trump's remarks on making Canada the 51st state of his country "very seriously". "This is not a joke anymore," Joly told Newsnight. "There's a reason why Canadians, when they go out on a hockey game, are booing the American national anthem... We're insulted. We're mad. We're angry." Her comments come after Trump imposed 25% tariffs on products entering the US from Canada on Tuesday. Canada's Prime Minister Justin Trudeau called that a "very dumb thing to do" and announced retaliatory tariffs. However, US Commerce Secretary Howard Lutnick said Trump would "probably" announce a deal to reduce tariffs on Wednesday. She said no Trump administration secretaries had contacted their Canadian counterparts on Monday or Tuesday about tariffs. Trump announced 25% tariffs on Canada and Mexico on 4 February, but delayed implementation until 4 March. Canadian energy imports face a 10% tariff. Ontario Premier Doug Ford implemented a 25% surcharge on electricity exports to three US states, and if tariffs escalated, said he would consider cutting Michigan, New York and Minnesota off from Canadian power. Trump also imposed a 10% tariff on goods worth more than $800 (£645) from China in February, which doubled in March. China responded with its own tariffs. The White House said when it introduced the tariffs that it was "taking bold action to hold [the three countries] accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country". Fentanyl is linked to tens of thousands of overdose deaths in the US each year. Trudeau said his country was responsible for less than 1% of fentanyl entering the US. Canada had introduced new border security measures in December, in response to Trump's tariff threats before he took office. "We didn't want this trade war. We did everything that was required under the executive order to make sure our border was safe and secure," Joly told the BBC, but said "this is a bogus excuse on the part of the Trump administration against us". Joly said Canada was the "canary in the coal mine", with the Europeans next, and the UK after that. Trump has threatened 25% tariffs on the European Union as well. She said Canada and the UK should work together: "That's also why I went to London to make sure that if there are tariffs imposed, we should work on counter-tariffs well." Joly said Canada's public displays of displeasure against the US are not "against the American people. We're the best friends of the American people". She called the tariffs on the US's biggest trading partner an "existential threat". "We cannot let our guard down," she said. "We need to make sure that we fight back."

US Commerce Secretary Howard Lutnick has said President Donald Trump is considering a deal that would offer exemptions from tariffs on Canada and Mexico, including potentially for carmakers. The possibility of a rollback, which he said could be announced on Wednesday, came as many US businesses raised concerns about Trump's decision to hit US imports from its two closest trade partners with a 25% import tax. After two days of declines, the main US stock indexes were trading slightly higher early on Wednesday. Canada's Minister of Foreign Affairs Mélanie Joly told the BBC's Newsnight on Tuesday that her office had not been contacted about any plans around reducing tariffs. US officials "can say many things" but "the only one that really takes a decision is President Trump," Joly said. The US president used a large part of his speech to Congress on Tuesday to outline his trade policies, but he did not say whether he planned to cut the tariffs that came into effect this week. Canada and Mexico announced retaliatory import levies on the US after Washington's 25% tariffs on its two neighbours came into effect on Tuesday. Goods worth billions cross the borders of the US, Canada and Mexico each day and their economies are deeply integrated. Trump says he wants to protect American industry and boost manufacturing, but many economists warn such tariffs could lead to prices rising for consumers in the US. On Wednesday, Lutnick said tariffs would be in place, but suggested some goods could be "left out". "There are going to be tariffs - let's be clear - but what he's thinking about is which sections of the market that maybe he'll consider giving them relief until we get to, of course, April 2," Lutnick told Bloomberg on Wednesday. "It will be 25% but there will be some categories left out - it could well be autos. It could be others as well," he added. A day earlier on Fox News, Lutnick had raised the possibility of a compromise and reduction of tariffs for Mexico and Canada, saying Trump was weighing offers to meet his allies "in the middle". Trump has said he would move ahead on 2 April with plans for reciprocal tariffs on other countries around the world that he sees as treating the US unfairly. Canadian Prime Minister Justin Trudeau has slammed Trump's sweeping tariffs on his country, calling it a "very dumb thing to do" and vowed to conduct a "relentless fight" to protect its economy. Trudeau announced retaliatory tariffs on US exports and warned that a trade war would be costly for both countries. But Trump pushed even further in a post on his Truth Social platform, saying: "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!" Trudeau accused the US president of planning "a total collapse of the Canadian economy because that will make it easier to annex us". "That is never going to happen. We will never be the 51st state," he told reporters. Washington also ramped up its trade war with Beijing on Tuesday as a new 10% levy on Chinese imports that came into effect - which adds to existing levies from Trump's first term and those announced last month. "China will fight to the bitter end of any trade war," a Chinese foreign ministry spokesperson said after their country announced tit-for-tat tariffs on agricultural imports from the US.

Donald Trump has been threatening major tariffs on America's two largest trading partners, Canada and Mexico, for more than a month. It now appears that the day of reckoning is at hand. The risk for the president is that his sweeping tariffs, which also target China, may drive up prices for businesses and consumers in the months ahead, damaging the health of the US economy - the issue that Americans say they care about most. The economy and inflation was at the top of voter concerns last November – concerns Trump promised to address as he stormed back to the White House, partly on the back of lingering discontent about soaring prices early in the Biden presidency. Trump can comfortably boast that he has delivered many of his most striking campaign promises – including slashing federal jobs, stepping up immigration enforcement and recognising two sexes only. But on inflation, the new Trump administration has made little tangible progress. Sky-high egg prices have been a daily reminder. And while the mass culling of chickens in response to bird flu has played a major role, the cost of the daily staple for many Americans has kept inflation front and centre in voters' minds. As Trump confirmed on Monday that 25% tariffs on Canadian and Mexican-made goods would indeed be coming into effect, US stock markets took their biggest hit of the year, providing an early indication of the economic turbulence his policies could create. And Trump's tariffs on Mexican food imports, in particular, could hit Americans where they feel it the most – in higher prices at the grocery store. According to a CBS survey conducted last week, 82% of Americans say they think the economy should be a "high" priority for the president. Only 30% said that about tariffs. Only 36% of respondents think Trump is prioritising the economy "a lot" – compared to 68% for tariffs. Just 29% believe Trump is prioritising inflation. Views on the state of the economy remain generally dour, as 60% said it is "bad", compared to 58% who had the same view last year. Public opinion of Trump's handling of the economy as a whole is within the margin of error on the survey, with 51% approving. That exactly matches his overall job rating, suggesting that the fate of this president, like those of his predecessors, will hinge on the strength of the economy. According to Clifford Young, president of public affairs at polling company Ipsos, Trump is still in the honeymoon period of his presidency, when Americans will give him room to manoeuvre. Typically, he said, this benefit of the doubt for a new president lasts about six months – but that can be cut short if the economy suffers some kind of dramatic shift. Trump argues that his tariffs will boost US manufacturing, raise tax revenue and spur investment – but most economists say that prices for Americans are likely to rise, potentially in a similar timeframe. On Tuesday night, in a primetime speech to a joint session of Congress, Trump will have a chance to make the case that the short-term pain of his tariff plan will lead to long-term benefits. It's his chance to convince the American public to keep his honeymoon going. "I'd be interested to see how he links government efficiency to the economy, global tariffs to the economy, even immigration to the economy," said Young. "Ideally, he would make an argument that all these different things he's doing are ultimately done with the view of improving the economy." The challenge for the president is there are some indications that doubts about the economy are growing, along with warning signs of other challenges to come. A survey of public and private businesses released last week by the Conference Board, a non-partisan economic research group, found a precipitous drop in consumer confidence – the largest decline since August 2021. The souring mood among US consumers was largely attributed to concerns over inflation and economic disruptions caused by rising tariffs. Inflation, as measured by the Consumer Price Index, rose 3% in January, marking a six-month high. The public appears to agree, as the CBS poll found 62% of Americans reporting that prices have been "going up" in the past few weeks. White House officials privately insist that administration efforts to cut government costs, reduce regulation and boost energy production will ultimately lead to lower prices even in the face of higher tariffs – but that such efforts take time to produce results. In a television interview on Sunday, Treasury Secretary Scott Bessent said Trump plans to appoint an "affordability tsar" to address the concerns of "working-class Americans". "President Trump said that he'll own the economy in six or 12 months," Bessent said, suggesting that former President Joe Biden was to blame for the current conditions. "But I can tell you that we are working to get these prices down every day." While Tuesday's speech is not a formal State of the Union address, Trump can talk about what he is doing – and will do – to address these voter concerns. Any missteps could give Democrats, who have been struggling to find an effective line of attack against the new president, an opening. Their choice of rebuttal speaker, newly elected Senator Elissa Slotkin from the trade-dependent industrial Midwestern state of Michigan, suggest they are keen to focus on economic issues. At the moment, Trump is at the height of his political power. Now, he appears willing to use that power to change the way the US conducts trade policy – an issue that has animated him for more than four decades. But American history books are lined with the names of presidents felled by souring public perceptions of the economy. Some financial disruptions are entirely out of a White House's control. With his tariff decision, however, Trump is making a high-stakes bet that the American public will ultimately approve of his decisions. If he's right, the payoff could be a generational political realignment on this issue. If he's wrong, it could undercut the second term of his presidency before it even gets fully underway. White House officials privately insist that administration efforts to cut government costs, reduce regulation and boost energy production will ultimately lead to lower prices even in the face of higher tariffs – but that such efforts take time to produce results. In a television interview on Sunday, Treasury Secretary Scott Bessent said Trump plans to appoint an "affordability tsar" to address the concerns of "working-class Americans". "President Trump said that he'll own the economy in six or 12 months," Bessent said, suggesting that former President Joe Biden was to blame for the current conditions. "But I can tell you that we are working to get these prices down every day." While Tuesday's speech is not a formal State of the Union address, Trump can talk about what he is doing – and will do – to address these voter concerns. Any missteps could give Democrats, who have been struggling to find an effective line of attack against the new president, an opening. Their choice of rebuttal speaker, newly elected Senator Elissa Slotkin from the trade-dependent industrial Midwestern state of Michigan, suggest they are keen to focus on economic issues. At the moment, Trump is at the height of his political power. Now, he appears willing to use that power to change the way the US conducts trade policy – an issue that has animated him for more than four decades. But American history books are lined with the names of presidents felled by souring public perceptions of the economy. Some financial disruptions are entirely out of a White House's control. With his tariff decision, however, Trump is making a high-stakes bet that the American public will ultimately approve of his decisions. If he's right, the payoff could be a generational political realignment on this issue. If he's wrong, it could undercut the second term of his presidency before it even gets fully underway.

President Donald Trump has said he is moving forward with 25% tariffs on goods imported from Canada and Mexico into the US, adding that time had run out to reach a deal. US stock markets sank in response to the measures, which he has threatened since earlier this year and said would now go into effect on Tuesday. An additional 10% tariff on Chinese imports is also expected to come into force, leaving all of America's top three trade partners facing significantly higher barriers than just a few weeks ago. "No room left for Mexico or for Canada," Trump said at the White House on Monday. "The tariffs, you know, they're all set. They go into effect tomorrow." The three major indices in the US sank after Trump's comments. The Dow Jones Industrial Average ended the day down 1.4%, the S&P 500 sank 1.75% and the Nasdaq fell 2.6%. Prime Minister Justin Trudeau responded: "Canada will not let this unjustified decision go unanswered." Canadian Foreign Minister Melanie Joly told reporters that Ottawa planned to impose retaliatory tariffs against US imports of C$155bn ($107bn; £ 84bn), with the first tranche of $30bn ready immediately to be levied on everyday goods like pasta, clothing and perfume. The foreign minister added that the tariffs were "an existential threat to us", with "thousands of jobs in Canada at stake". China's commerce ministry on Tuesday also vowed to retaliate against the fresh US tariffs, accusing the Trump administration of trying to "shift the blame" and "bully" Beijing over fentanyl flows. In a statement, the ministry urged the US to "immediately withdraw" its tariffs that it described as "unreasonable and groundless, harmful to others". State media outlet The Global Times reported on Monday that China may target US agricultural and food products with both tariff and non-tariff measures. Mexico also said it will retaliate against the US tariffs, raising the prospect of a widening trade war. Trump threatened to impose the tariffs, which are a tax added to a product when it enters a country - on Canada, Mexico and China in response to what he said was the unacceptable flow of illegal drugs and illegal immigrants into the US. All the tariffs were supposed to take effect last month, until the US agreed to a one-month delay for Canada and Mexico, pulling its North American neighbours back from the brink of a potentially damaging trade war. But Trump went ahead with imposing a 10% tariff on Chinese exports to the US in February, meaning goods from the country now face a levy of at least 20%. Trump has long maintained that tariffs are a useful tool to correct trade imbalances and protect US manufacturing. He has largely dismissed concerns that the measures risk economic damage in the US, despite the close ties, especially in North America, where businesses have enjoyed decades of free trade. "What they'll have to do is build their car plants, frankly, and other things, in the United States, in which case they have no tariffs," he added. Officials from Canada and Mexico had been in Washington in recent days, trying to stave off the tariffs. Mexican President Claudia Sheinbaum appeared to send a message to Trump earlier on Monday when she said at a public event in the city of Colima that "Mexico has to be respected". "Co-operation [and] co-ordination, yes, subordination, never." Trudeau met King Charles on Monday in the UK, saying beforehand that he would discuss issues of importance to Canadians, including "standing up for our sovereignty and our independence as a nation". A day earlier Canada's PM said from a summit in London that Canada was "not an issue" as a source of illegal fentanyl in the US. Only 1% of fentanyl seized in the US is thought to come from Canada, according to US data. The Canada Border Services Agency (CBSA) says it has been "surging" its efforts to tackle fentanyl crossing into the US. President Trump has also announced a 25% charge on all steel and aluminium imports, which is meant to come into effect on 12 March. In addition, he has threatened to impose custom "reciprocal" tariffs on individual countries, as well as 25% tariffs on the European Union.

US President Donald Trump's latest move has left investors in a spin - for good reason. With the stroke of a pen, the tariffs he has imposed on Canada, Mexico and China have turned back the clock 70 years, erasing decades of globalisation. Tariffs, he says is a beautiful word, signalling jobs and riches for America. However, history tells us that those firing the opening shots in a trade war also suffer heavy casualties. Despite the president's rhetoric, American consumers are on the front line. These extra taxes mean that Americans are facing the highest level of tariffs on goods being imported to their country since the 1930s. Vegetables from Mexico, wheat from Canada, toys and T-shirts from China are all in the firing line. Retailers of such items can have very narrow profit margins and will raise prices quickly to cover the tariffs. Consumers will notice the price rises. Groceries may be one of Trump's favourite words, but his own electorate may not appreciate the increase in bills they could face. Assuming no further tariffs, economists suggest US inflation, already higher than expected, could rise further in the second half of this year. A price worth paying "to make America great again"? Look no further than the laundry room for a cautionary tale. During his first-term of office in 2018, Trump imposed tariffs of up to 50% on imported washing machines after American producer Whirlpool complained about cheap South Korean competition. Those rivals - Samsung and LG - then set up in America, creating close to 2,000 jobs. But at what price? An imported washing machine cost an American shopper almost a third more at the start of 2023, just before tariffs were abolished, than five years previously. Add up the costs of tariffs and one study claims each of those jobs cost Americans the equivalent of more than $800,000 (£627,000). Those tariffs of course meant revenue for American governments and that source has increased dramatically in recent years, following the raft of tariffs Trump also imposed in his first term on China - most of which were retained under President Joe Biden. However, the amount netted is equivalent to a tax rise on American households of up to $300. Ultimately it is they who are footing the bill - and will continue to do so. Then consider the impact on American manufacturers who have businesses spanning Canada, Mexico and perhaps even China. Overall, economists think we could be looking at a hit to US growth of up to 1% - not enough to prompt a recession, but unwelcome nonetheless. In sheer numbers terms, the hit to the Canadian economy could be greater, economists say. It sells more than $400bn worth of goods to America every year, accounting for a fifth of its income. But it has the capacity to lower interest rates, and healthy public finances, providing policy makers with scope to cushion the blow for Canadians. The damage to Mexico's national income could be less severe, but its central bank has less capacity to cut interest rates making it harder to deflect the pain. All of this will be anxiously watched by the European Union, likely next in line for those Trump tariffs. Germany, already in a fragile state, accounts for about a third of the goods sold by the EU to the US. China, despite being the target of Trump's repeated trade blows could actually be less vulnerable. Its exports to the US account for less than 3% of national income - easily made up elsewhere. Ironically, some of this resilience is down to the tariffs imposed by President Trump last time round. China simply looked for new markets. Countries like the UK could also benefit from a furthering of such trade diversion, more access to cheaper goods - something that could keep our own inflation down. A key point about trade wars is that there are winners as well as losers - particularly for those countries outside President Trump's firing line. Vietnam and Malaysia for example saw their exports grow rapidly during President Trump's last term as they scrambled to replace China in selling to America. If the UK continues to escape the wrath of President Trump, we could actually benefit from closer trading links with his country and indeed from greater foreign investment, if we looked to be a more certain environment than some of our competitors. But of course, our fate remains unclear. As it stands, the prospects for global growth in 2025 have dulled, but a recession appears very unlikely. However, in Trump world we have learnt very quickly to expect the unexpected - so much still depends on what happens from here. And that uncertainty itself is harming business confidence both in the US and around the world, putting off key decisions about where to invest and create jobs. Weaponising uncertainty too comes at a price - even on home soil.

The UK government has said it will not send further payments to Rwanda following the cancellation of the migrant deal between the two countries. On Monday, Rwanda's government spokesperson Yolande Makolo said the UK had asked Rwanda to "quietly forgo" the remaining payment - reportedly amounting to £50m ($64m) - based on "trust and good faith". However, Rwanda has now asked the UK to pay the remainder of the money it says it is owed, accusing the UK of breaching trust by suspending some aid to the country. In a statement, a UK government spokesperson said that "no further payments in relation to this policy will be made and Rwanda has waived any additional payments". The row over payments linked to the Rwanda scheme comes after the UK government announced it would halt bilateral aid to the east African country last month, except for "support to the poorest and most vulnerable". The UK took the decision to cut aid after accusing the country of supporting M23, a rebel group that has captured swathes of eastern Democratic Republic of Congo in a deadly uprising. The aid cuts have amounted to "unjustified punitive measures to coerce Rwanda into compromising our national security", Makolo said on Monday. Rwanda has often denied backing the M23 rebel group, but has recently been more defensive, saying it has had to take measures to deal with the "existential threat" posed by genocidal militia near its borders. UN experts have previously estimated that between 3,000 and 4,000 Rwandan troops are in eastern DR Congo. Makolo said Rwanda would now be "following up" on outstanding payments relating to the migrant deal to which the UK was "legally bound". The plan to deport some asylum seekers to Rwanda, devised by the previous Conservative government in 2022, cost the UK £240m ($310m) before being scrapped by Prime Minister Sir Keir Starmer. Speaking in July last year, shortly after being elected, Starmer said the plan was "dead and buried", arguing that the scheme had "never been a deterrent" and would only deport "less than 1%" of small boat arrivals. In a statement, a UK government spokesperson said: "The Home Secretary has been clear that the costly Migration and Economic Development Partnership with Rwanda wasted tax-payer money and should not continue."

King Charles has met Canadian Prime Minister Justin Trudeau, under the shadow of inflammatory statements made about Canada by US President Donald Trump. Trump has repeatedly spoken of making the neighbouring country the 51st state of America. He has also vowed to impose new import taxes on Canada, which is one of the US's top trading partners. Ahead of his meeting with the King at Sandringham, outgoing PM Trudeau said he would discuss issues of importance to Canadians, including "standing up for our sovereignty and our independence as a nation". The King has also extended an invitation to Trump to visit him in what will be an unprecedented second state visit. As head of state of the Commonwealth nation, the King has faced calls to give Canada his vocal backing in the face of Trump's statements. Jason Kenney, the former leader of the Canadian province of Alberta, suggested Charles faces a difficult tightrope. Jason Kenney, a conservative who served as Alberta's premier, wrote on X that the King could only act on the advice of the Canadian PM, who "should ask [Charles] to underscore Canadian sovereignty". But the conservative politician then took aim at British Prime Minister Sir Keir Starmer, whom he said had "cravenly thrown Canada under the bus" when he refused to comment on Trump's annexation threats during his visit to the White House last week. "It was a shameful betrayal of a fellow realm which has made enormous sacrifices for the defence of Britain," Kenney wrote. New import taxes announced by Trump are also set to come into effect on Tuesday, targeting goods arriving from China and Mexico as well as Canada. The president is eager to protect American manufacturing and jobs, and to address the US trade deficit. He suggested in a post on his Truth Social platform on Sunday that his country was effectively subsidising Canada by paying to import its products. Without this flow of capital, Canada "ceases to exist as a viable country", he wrote. Trump has previously spoken of using "economic force" to make Canada the 51st state of America. But he said he was not considering using military force - an assurance he has not given while stating his ambitions of taking the Panama Canal and Greenland. The question of how to respond to Trump's tariff threats and other statements about Canadian sovereignty has dominated the debate in Trudeau's Liberal Party, with candidates vying to replace the PM after he announced his resignation in January. On the other side of the Canadian political divide, Conservative leader Pierre Poilievre has also attacked Trump's statements. The King has found himself at the centre of a recent whirlwind of diplomatic meetings following Trump's return to the presidency - some of which relate to the war in Ukraine. On Sunday, he also met Ukrainian President Volodymyr Zelensky - who ended up in a row of his own with Trump at the White House on Friday. Zelensky was in the UK to meet European leaders, who reiterated their support for Ukraine in its conflict with Russia - with American support apparently on the wane under Trump.

The leader of Ontario, Doug Ford, has vowed to push back at US President Donald Trump after securing a third term in office as premier of Canada's most populous province. "Donald Trump thinks he can break us," he told the cheering crowds in Toronto, but the US president was mistaken, he added. "Canada is not for sale." Ford, who has led Ontario since 2018, called the snap election to get a clear mandate to fight US President Donald Trump over tariffs he threatens to impose on Canadian goods. The indications on Friday morning were that his Progressive Conservatives had won more than 80 seats out of 124 in the legislature. The left-wing New Democratic Party came second, forming the official opposition, while the Liberals were in third place. Ford pushed back in his election campaign against Trump's persistent references to Canada as the 51st US state, sporting a cap saying "Canada is not for sale." In his victory speech at a convention centre in Toronto, he said: "Donald Trump thinks he can break us. He thinks he can divide and conquer, pit region against region. "Donald Trump doesn't know what we know. He is underestimating us. He is underestimating the resilience of the Canadian people, the Canadian spirit." The election was called by the Canadian Broadcasting Corporation (CBC) 10 minutes after polls closed on Thursday evening. Voter turnout appears to be near historic lows. As of 23:00 local time (04:00 GMT) with 97% of polls reporting, just over 44% of Ontarians had cast ballots in the election. That is essentially tied with the lowest ever turnout of 44% in 2022. Ford ran his campaign under the slogan "Protect Canada", reflecting his view that Canada needs to stand firm against US tariff threats. Ford has appeared regularly on US television news networks in recent months as a de-facto spokesman for Canada's position in its fight against the tariffs. President Trump said on Thursday that the tariffs he planned to impose on Canada and Mexico would go ahead next week, after he delayed them a month in exchange for security assurances at the shared borders. Around 75% of Canadian exports go to the US, and economists have warned that the tariffs would be devastating for Canada's economy while raising costs for Americans. Ontario is home to a large automotive sector that is deeply intertwined with the US - car parts often make several trips back and forth across the US-Canada border before a vehicle is fully assembled and sold. Ford has suggested that 500,000 of Ontario's 16 million people could lose their jobs if the US follows through on the blanket 25% tariffs. He has called for strong retaliation, suggesting Canada cut its energy supply to the US and calling for provincial liquor stores to pull American booze from their shelves. He has also proposed the idea of "Fortress Am-Can" - a slogan to sell Trump on a stronger energy alliance between the two countries in a bid to avoid tariffs altogether. Opposition parties have criticised Ford for calling the snap election, accusing him of taking advantage of the rift in US-Canada relations to boost his own popularity. They also questioned the decision to push for a costly election amid economic uncertainty. Ford has also been the subject of numerous controversies, including an ongoing criminal investigation into a deal to sell a piece of environmentally protected land for real estate development. At a speech to supporters on Thursday, Bonnie Crombie, leader of the Ontario Liberals, said that while the party fell short of forming a government it should be "very proud" of the seats it gained. "People counted us out. Tonight, you proved them wrong," said Crombie, who failed to win her own seat. She vowed to continue on as leader. The last time a government in Ontario formed three consecutive majorities was under Leslie Frost, a Progressive Conservative leader who won his third and final term in 1959.