The president’s trade assault, which makes no distinction between ally and adversary, is an assertion of U.S. dominance with significant risks.

Amid warnings of price increases, Canada moved quickly to retaliate, China said it had planned countermeasures and Mexico said it would soon unveil its response.

President Donald Trump said Sunday that Americans could feel “some pain” from the emerging trade war triggered by his tariffs against Canada, Mexico and China, and claimed that Canada would “cease to exist” without its trade surplus with the United States.

President Trump says Americans could feel 'some pain' from the emerging trade war he triggered with tariffs against Canada, Mexico and China.

Prime Minister Justin Trudeau set out "far-reaching" tariffs of 25%, affecting 155bn Canadian dollars' worth ($106.6bn; £86bn) of American goods ranging from beer and wine, to household appliances and sporting goods.

The move likely will trigger retaliation and risk igniting a trade war that could cause broad economic disruption for all countries involved.

The markets are likely to show some reactions to Donald Trump’s trade war, sparked by the US imposing sweeping tariffs on imports from Canada, Mexico and China