Further afield, European economies are also at risk from Trump's tariff regime. The U.S. president told reporters on Sunday that tariffs on the EU "will definitely happen" — but said a deal "could be worked out" with the U.

Donald Trump has said import taxes will "definitely happen" with the EU. He said the UK "is out of line" on trade with the US and told reporters "we'll see what happens".

Citing a senior Canadian official who shared details of Trump's plan with CBC, the news organisation says it includes 25% tariffs on most goods coming from Canada into the US, along with 10% tariffs on Canadian energy products.

"There are no winners in trade wars. If … the U.S. starts a trade war, then the one laughing on the side is China," said the EU's foreign policy chief.

Canada and Mexico have surrendered to Donald Trump, but these victories for the US president in his phoney trade war are not what they seem.

U.S. President Donald Trump has hinted that the European Union could be the next target in his ongoing tariff battle. After imposing steep tariffs on China, Mexico, and Canada, Trump now claims the EU has been unfairly benefiting at the expense of the U.

The United Kingdom is in a more vulnerable position as a result of Donald Trump’s renewed pledge to impose tariffs on important trading partners. As itstwo biggest trading partners, the US, and the EU,