Image source, EPA

More reaction now, from Germany’s Vice-Chancellor Robert Habeck, who says the European Union must "respond united, and not tear itself apart into two or three blocs of countries but speak as a united Europe".

“We must make clear that ultimately, everyone loses: the United States, the United States’ economic area and Europe,” he adds, according to the Reuters news agency.

Habeck says any counter-measures should only be thought about "once we have thoroughly discussed things", adding that the "first step is to seek talks".

Vanessa Buschschlüter
Latin America editor, News Online

Mexico may be the US’s top trading partner but that has not shielded it from Trump’s tariff threat.

The Mexican government has long been Trump’s whipping boy when it comes to the flow of undocumented migrants and in his post the US president-elect stressed that the tariff would remain in effect "until such time as drugs, in particular fentanyl, and all illegal aliens stop this invasion of our country".

The head of Mexico’s Senate quickly hit back, asking on X, external what tariffs Mexico should impose on the US to get it to stop consuming drugs and illegally exporting weapons to its southern neighbour.

And while President Claudia Sheinbaum has yet to respond to the tariff threat, her finance minister has in the past warned that any taxes imposed on Mexican goods could trigger retaliatory tariffs.

"If you put a 25% tariff on me, I’ll have to react with tariffs and I’m your main importer," the Mexican minister previously warned.

Laura Bicker
China correspondent

China has warned Washington that no-one will win a trade war as Donald Trump threatens to impose an additional 10% tariff on goods heading to the United States.

This is not the 60% tariffs Trump had pledged to slap on Chinese goods during his campaign, so some businesses who export phones, handbags and furniture who've already been hit hard by the first trade war might be breathing a sigh of relief.

Others will fear this is just Trump’s opening shot and worry more tariffs are on the way.

Chinese state media described the threat as "irresponsible", while the foreign ministry in Beijing claimed China had taken significant steps to stop the illegal flow of drugs, including fentanyl, into the US.

"China is one of the countries with the strictest and most thorough drug policies in the world," says a foreign ministry spokesperson. "Fentanyl is primarily a problem for the United States."

But Beijing was expecting this. It had time to prepare for a second Trump presidency and China has learned lessons from his first stint in the White House.

Much of the country’s agricultural imports now come from Brazil, Argentina and Russia and it has started exporting more products to non-US allied countries.

The last thing Beijing needs is another trade war as it battles slowing economic growth, a property crisis and high youth unemployment.

For now, these tariffs are just a threat. As well as tougher action on fentanyl, Trump may hope to convince President Xi to stop heavily subsidising China’s manufacturing industries which he sees as unfair competition.

But this tactic hasn’t work in the past, and Beijing is likely preparing its own robust counter-measures.

Image source, Getty Images

Doug Ford - who is premier of Ontario, Canada's most populous province - says America imposing a 25% tariff on all goods imported from Canada would be "devastating to workers and jobs in both Canada and the US".

“We need a Team Canada approach and response - and we need it now,” the Canadian politician says on X, external, adding that Prime Minister Justin Trudeau, "must call an urgent meeting with all premiers".

Another politician Bonnie Crombie, leader of Ontario Liberal Party, says in a post on X, external that US President-elect Donald Trump’s threat of tariffs "is serious and would have an enormous impact on just about everyone in Ontario".

We haven't heard from Trudeau himself yet on what he makes of Trump's announcement.

As you've read, President-elect Donald Trump is planning a 25% tariff on goods from Canada and Mexico entering the US, and an extra 10% tariff on goods from China on top of the current rate.

Tariffs are a form of domestic tax which is placed on goods as they enter the country. It's not a fixed rate, so the amount paid depends on how much the product costs.

For instance, a car that is imported to the United States with a value of $50,000 which is subject to a 10% tariff would face a $5,000 charge.

The fee is physically paid by the domestic company that imports the goods and not by the foreign company that exports them.

The question of where the final “economic” burden of tariffs falls, as opposed to the upfront bill, is more complicated - we've explored it here.

Image source, Reuters

Trump says as soon as he gets into office, he’ll sign an executive order imposing a 25% tariff on "all products" entering the US from neighbours Mexico and Canada.

In his Monday night post on Truth Social, he also says, external these tariffs - which are a type of a tax - will be in place until the two countries clamp down on drugs and illegal migrants crossing the border.

"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing crime and drugs at levels never seen before," he writes.

He also says, external an extra 10% tariff will be charged on goods coming from China, on top of any other tariffs. This is lower than he threatened before - back in the campaign he promised 60%.

Trump says that will last until the Chinese government cracks down on fentanyl being smuggled out the country.

"Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our country, mostly through Mexico, at levels never seen before," he says.

Francesca Gillett
Live editor

President-elect Donald Trump says he will introduce 25% tariffs on goods entering the US from Canada and Mexico, as well as increasing existing tariffs on China by 10%, as soon as he gets into office in January.

Tariffs are a type of tax and a core part of Trump’s economic vision - it’s something he promised before he got elected, but now we’ve got more detail on what he is planning.

We’ll bring you that detail shortly, and how other countries are reacting. We’ve also got explanation and analysis coming – this piece also explains how tariffs work.