As we mentioned earlier, Canadians at basketball and ice hockey games over the weekend made their feelings about Trump's tariffs clear by booing the US national anthem.

Now, with imports from the US set to be charged at 25% in Canada tomorrow, we are also seeing some Canadian stores beginning to remove American products.

Image source, Reuters

Image source, Reuters

Image source, Reuters

Jagdip Cheema
Business reporter, BBC News

Image source, Reut

It’s not just global equity markets seeing falls after Donald Trump introduced new tariffs over the weekend; the crypto market is also experiencing a sell-off.

According to data from website CoinMarketCap, some $600bn has been wiped off major cryptocurrencies since Saturday’s tariffs were announced, as investors decided to pull their money out of "riskier" assets.

Donald Trump has pledged to turn the US into the "crypto capital of the planet" during his campaign.

When Trump took office on 21 January, Bitcoin was priced at just over $107,000. Earlier this morning, it dropped below $96,000 as the crypto rally appears to be cooling off.

Michael Race
Business reporter, BBC News

Image source, EPA-EFE/REX/Shutterstock

Some 20 EU member states exported more to the US than they imported in 2023. According to Eurostat, the EU's statistics agency, the country with the largest surplus was Germany, followed by Italy and Ireland.

This suggests, if tariffs were to be imposed on the EU, Germany – the EU’s largest economy – could be hit hardest. More than 30% of all the EU’s transatlantic goods exports were from Germany in 2023.

Most of Germany’s exports were cars and machinery. Trump has repeatedly complained about the EU’s car exports to the US, with few vehicles being shipped the other way.

Trump believes by imposing tariffs he can boost the US economy, protect jobs and raise tax revenue. It’s all part of his America First pledge.

But a lot of economists have warned tariffs just hit businesses and consumers on both sides, especially given the likelihood of an EU response, as things just become more expensive.

The president also wants the EU to buy more of its oil and gas from the US. Since the EU has shifted away from Russian fossil fuels, the US became its largest supplier of liquefied natural gas (LNG).

Michael Race
Business reporter, BBC News

Image source, PA Media

According to Donald Trump, the UK has been “out of line”, but he thinks it can be “worked out”.

The UK’s Business Secretary, Jonathan Reynolds, has said that he thinks the UK should be excluded from any tariffs because the US has not got a goods trade deficit with the UK, meaning it currently exports more products to the UK than it imports.

“I think we’ve got an argument to engage with,” Reynolds told the BBC.

The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because it will make it more difficult and expensive for companies to sell goods in the world’s largest economy.

But Trump sees the tariffs as a way for goods to be produced in the US rather than abroad. If companies want to import goods, he argues they should pay a fee.

Shares in car makers are seeing the biggest falls in Europe, with the motor industry set to be one of the sectors most affected by the planned tariffs.

Stellantis – whose brands include Chrysler, Citroen, Fiat, Jeep and Peugeot – saw its shares drop by nearly 6%.

Among the other European car giants, VW dropped 5.7%, Mercedes was 4.4% lower and BMW was down 4%.

Elsewhere, shares in drinks maker Diageo fell 3%. The company is seen as being exposed to the tariffs as it exports tequila from Mexico to the US.

Jessica Parker
BBC News Berlin correspondent

A big question for the EU is whether Donald Trump intends to slap on a broad, universal tax on goods or a more targeted set of tariffs.

The latter may sound preferable, given it would affect fewer exports, but that option brings its own problems.

Last month, I spoke to Wolfgang Niedermark – who’s on the board of Germany’s Federation of German Industries (BDI). He warned that targeted tariffs could complicate EU’s response: "It might start a game of running for exemptions. That would be a threat for our unity."

He urged the EU to seek co-operation with the US "such as buying more products from the states like liquid natural gas (LNG)".

Germany’s car market is seen as particularly vulnerable in terms of potential tariffs, even if its big players already have production sites set up in the US.

This all comes at a bad time for the EU’s largest economy. Last week, Germany cut its growth forecast with Economy Minister, Robert Habeck, saying the country was "stuck in stagnation".

Nick Edser
Business reporter

Trading on European stock markets has just got under way and, as expected, they have fallen in reaction to Donald Trump’s tariff plans.

The main share indexes in both France and Germany are down by about 2%, while in London the FTSE 100 share index fell 1.2%.

Shares in German carmaker VW have dropped 5%. The company has operations in Mexico which leaves it exposed to the impact of the tariffs.

Image source, USA Today sports

Canada:

Canadians at ice hockey and basketball games booed the US national anthem over the weekend as the 25% tariff loomed.

Away from sports venues, Prime Minister Justin Trudeau set out retaliatory tariffs of 25% on American goods from beer to household appliances.

As for suggestions that Canada might become the 51st US state, Trudeau said simply: "It’s not going to happen."

Mexico:

Mexico also vowed to retaliate, with President Claudia Sheinbaum saying on social media: "I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defense of Mexico's interests."

China:

China says the threatened 10% tariffs are a "serious violation" of World Trade Organization rules - the country is filing a lawsuit with the WTO against the US for its "wrongful practice".

Beijing also says it will take "necessary countermeasures to defend its legitimate rights and interests" - it has not yet stated whether this might be in the form of tariffs.

The EU:

So far, Trump has not suggested what tariffs on EU goods might look like.

But a European Commission spokesperson says the EU will "respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods".

Image source, Reuters

From Tuesday, tariffs of 25% will hit Canadian and Mexican goods entering the US, with 10% on Chinese goods. But why?

Canada:

The White House said on Saturday that tariffs were "necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States".

Trump has also repeatedly needled Canada about becoming the 51st US state.

On his Truth Social platform, he claimed that the US pays "hundreds of billions of dollars" to subsidise Canada, and suggested that "without this massive subsidy, Canada ceases to exist as a viable country".

"Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!"

Mexico:

Like with Canada, Trump has said drugs and border security are behind the 25% tariff on Mexican goods, citing the "major threat of illegal aliens and deadly drugs killing our citizens, including fentanyl".

China:

During his election campaign, Trump warned of tariffs as high as 60% on Chinese goods. He’s settled on 10% for now, but tariffs of as much as 25% were imposed during his first term.

"We’re going to tell China that if you continue to send fentanyl to Mexico or any place else and it comes into our country, we’re going to charge you a 25% tariff on everything you sell into the United States of America," he said during a campaign rally.

The EU:

The EU threats seem more related to trade deficits - that is when a country imports more from a country than it exports.

"They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them," Trump said overnight. "Millions of cars, tremendous amounts of food and farm products."

Joao Da Silva
Business reporter

We earlier looked at the impact on the share prices of Japanese car makers - more broadly, Asian shares slid on Monday after US President Donald Trump's tariffs plans.

Hong Kong's Hang Seng Index was down 0.4%, Japan's Nikkei 225 was 2.6% lower, South Korea's Kospi tumbled 2.5% and Australia's ASX 200 fell 1.8%.

Markets in mainland China remained closed for the Lunar New Year holiday.

Meanwhile, the US dollar was showing strength, rising to a record high against China's yuan, while the Canadian dollar plunged to its lowest level since 2003.

"If tariffs become a long-term strategy rather than a short-term tool, the risks increase," said Charu Chanana, Chief investment strategist at investment bank Saxo.

"Companies will be forced to absorb higher costs, cutting into operating margins."

Read more here.

Chris Mason
Political editor, in Brussels

Cryptic, threatening and yet tantalising – Donald Trump’s gift for delivering an overnight missive for us to wake up to is deployed again.

Its timing coincides with European Union leaders gathering in Brussels, acknowledging the continent needs to take greater responsibility for its own defence – a key and recurring demand of President Trump.

Keir Starmer will join EU leaders for dinner later; a symbolically significant moment and an important staging post towards what the government calls its "reset" with the European Union. An EU-UK Summit to sort it is expected in the spring.

But Trump's timing neatly illustrates a dilemma Whitehall has been conscious of ever since Donald Trump’s re-election: a shimmy towards Brussels will likely tread on Washington’s toes; overdo the overtures in the Oval Office and the EU will be miffed.

After his visit to Brussels today, the prime minister is expected in America in the next few weeks.

Joao Da Silva
Business reporter

With European markets set to open soon, it is worth keeping an eye on the stocks of major European car makers.

Companies like Volkswagen and Stellantis have operations in Mexico which leaves them exposed to the impact of Donald Trump's tariffs.

The stocks of Japanese car companies fell sharply during Asia trading hours. Nissan shares were down 5.5%, Toyota's fell 5% and Honda's plunged 7%.

Several Japanese car manufacturers rely on factories in Mexico to supply the US and other markets.

The new tariffs are hitting car manufacturers at a time when many of them face slowing sales in key markets and growing competition from China's car industry.

The US buys more from the EU than it sells to thempublished at 06:58 Greenwich Mean Time

06:58 GMT

Nick Marsh
Asia Business Reporter

The United States runs a trade deficit with the European Union, which means it imports more from European countries than it sells to them.

Last year, the US ran a deficit of $213bn - which President Trump has just described as "an atrocity".

The president argues that the border taxes will help protect American jobs and products domestically.

Among the top European exports to America are pharmaceuticals, cars and other types of advanced machinery. The US, meanwhile, sells oil, gas and financial services to Europe.

Different countries will be affected in different ways by US tariffs. Ireland, for example, is by far the most reliant on the American market - nearly half of its exports outside the EU are destined for the US.

Countries that buy a lot from the US include the Netherlands and Germany - although the latter exports a huge volume of cars in return.

Even so, the EU says it will act as a collective "respond firmly" if and when tariffs come in - that probably means retaliatory taxes.

When it comes to the UK, things are slightly different. The US doesn't run as high a trade deficit with Britain -- in fact at one point last year it ran a surplus - and government ministers hope that this will persuade the president to spare the UK from tariffs.

As President Trump put it, the UK is "out of line" but the EU is "really out of line".

Here is the key section from Donald Trump's overnight comments, when the BBC asked if the US could hit the UK with tariffs...

"It might happen with that, but it will definitely happen with the European Union. I can tell you that, because they've really taken advantage of I said, you know, we have over $300 billion deficit.

"They don't take our cars, they don't take our farm products. They take almost nothing, and we take everything from the millions of cars, tremendous amounts of food and farm products. So the UK is way out of line, and we'll see the UK, but European Union is really out of line.

"UK is out of line. But I'm sure that one, I think that one, can be worked out, Prime Minister Starmer has been very nice. We've had a couple of meetings, we've had numerous phone calls, we're getting along very well, and we'll see whether or not we can balance out our budget with the European Union.

"It's $350 billion deficit, so obviously, something's going to take place there."

On a timeline for EU tariffs, Trump said: "I wouldn't say there's a timeline, but it's going to be pretty soon."

Good morning from London.

The UK and European Union are waking up to the prospect of tariffs - extra taxes - on goods that are sold to the United States.

Asked by the BBC overnight, President Trump said tariffs on the EU will "definitely happen". He struck a softer tone with the UK - saying that, while it is "out of line", a deal could be worked out.

We'll have Trump's full comments, plus analysis from our experts around the world, in this page. Stay with us.

Image source, Reuters