Canadian PM Justin Trudeau describes Donald Trump's tariffs on his country, as well as China and Mexico, as "very dumb"
"We will not back down from a fight," Trudeau says, after announcing 25% retaliatory tariffs against billions of dollars' worth of American products - here's what Trudeau said in full
The US president warns that his administration would, in turn, raise its tariff on Canada "by a like amount"
Earlier, US and European stock markets fell after Trump's 25% tariffs on imports from Canada and Mexico began, as well as a new 10% levy against China
Beijing vowed to fight the US "to the bitter end", announcing up to 15% tariffs on a range of American products, and Mexico said it would outline retaliatory action on Sunday
Analysts warn the tariffs could push up prices for American households and have a knock-on effect on consumers around the world, writes our business reporter
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Watch: Key moments from Trudeau's speech slamming US tariffs
Edited by Andrew Humphrey
When Donald Trump confirmed 25% tariffs would come in effect on Tuesday for Canada and Mexico, the feelings were felt almost immediately on Wall Street.
The three major indexes in the US sank after Trump's comments.
The Dow Jones Industrial Average ended the day down 1.48%, the S&P 500 sank 1.76% and the Nasdaq fell 2.64%.
We'll now be keeping an eye on the Asian markets to see how the news is received.
Tariffs are a central part of Trump's economic plans. He promised to introduce import duties against some of America's main trade partners during his election campaign.
He says tariffs will boost US manufacturing and protect jobs, as well as raising tax revenue and growing the economy.
The White House said, external said the president was also "taking bold action to hold Mexico, Canada, and China 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.
The Trump administration says the chemicals come from China, while Mexican gangs supply it illegally and run fentanyl labs in Canada. Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US.
'No room left' for Canada and Mexico to negotiate tariffs, says Trump
President Trump has threatened to impose the tariffs - which are a tax on imports - on Canada and Mexico on 4 March, in response to what he says is the unacceptable flow of illegal drugs and undocumented migrants into the US.
"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."
"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.
Welcome to our live coverage.
Donald Trump has said "all is set" for 25% tariffs on goods from Mexico and Canada starting Tuesday, as time runs out for the two US neighbours to reach a deal with Washington.
Trump's statement raised fears of a trade war in North America as Canada and Mexico have both vowed to retaliate. US stocks, the Mexican peso and the Canadian dollar have all fallen.
An additional 10% tariff on Chinese imports is also expected to come into force, leaving all three of America's top three trade partners facing significantly higher trade barriers than just a few weeks ago.
Join us as we bring you the latest from our teams in North America and Asia.