Trump and Trudeau speak and plan to do so again before tariffs start on Tuesday

Donald Trump says he has spoken with Canadian Prime Minister Justin Trudeau and will “be speaking to him again”, the day before the US president’s new tariffs come into force on Tuesday.

The Republican president said he will also talk with Mexican leader Claudia Sheinbaum. Both Canada and Mexico are about to levy their own tariffs in response to US actions.

Mr Trump also used his social media post to repeat his complaints that Canada has been uncooperative, despite decades of friendship and partnerships that range from the Second World War to the response to the 9/11 terrorist attacks on the US.

“Canada doesn’t even allow U.S. Banks to open or do business there,” Trump posted.

Financial markets, businesses and consumers are bracing for the impact of the new tariffs that also include an import tax against China.

Stock markets are set for a modest sell-off, suggesting some hope that the import taxes that could push up inflation and disrupt global trade and growth would be short-lived.

But the outlook reflected a deep uncertainty about a president who is very keen tariffs, even saying the US government made a mistake in 1913 by switching to income taxes as its primary revenue source.

Mr Trump said on Sunday that the tariffs would be lifted if Canada and Mexico did more to crack down on illegal immigration and fentanyl smuggling, though there are no clear benchmarks.

He also said the US can no longer run a trade imbalance with its two largest trade partners.

Mexico is facing a 25% tariff, while Canada would be charged 25% on imports to the US and 10% on its energy products.

Beijing is facing a 10% additional tariff due to its role in the making and selling of fentanyl, the White House said.