Economists fear full-on, tit-for-tat trade war as US also imposes tariffs on Mexico and China

Mark Carney, the favourite to replace Justin Trudeau as the Canadian prime minister, has vowed that his country is “going to stand up to a bully” after Donald Trump imposed 25% tariffs on goods coming in from Canada.

There are now 25% tariffs on goods coming into the US from Canada and Mexico, while China is being hit with tariffs of 10% on imported goods, leading some economists to fear the outbreak of a full-on, tit-for-tat trade war.