Fears grow for global trade, with major indices likely to plunge as US trading partners quickly retaliate, raising chance China and EU will follow suit

• Canada and Mexico hit back after Trump signs order for tariffs
• Economic news updates – US politics live

Investors are bracing for stock market falls after Canada and Mexico hit back against trade tariffs imposed by Donald Trump this weekend.

Trading on the brokerage IG’s weekend markets indicated shares were likely to fall on Monday after the US president signed an order on Saturday to bring in sweeping tariffs this week, a move that could prompt a trade war with some of the country’s largest trading partners.