Justin Trudeau says Canadians could be “facing difficult times in the coming days and weeks” after Donald Trump insisted that he would impose hefty new tariffs of 25 per cent on goods coming across the northern border. 

The US President has been threatening the tariffs for weeks, saying they would be imposed on February 1 and remain in place until the countries did more to stem the flow of both migrants and fentanyl over the US border.

Last night, he said there was nothing that Mexico, Canada or China could do as he imposed a 25 per cent tariff on goods coming into the US from its neighbours and 10 per cent on China, prompting fears of a global trade war and inflation crisis.

Imports from China, Mexico and Canada account for almost half of US goods trade, and analysts have warned that tariffs will be passed on to consumers in the form of higher prices.

Mr Trudeau said Canada would respond with forceful countermeasures, including duties on Florida orange juice, a source familiar with the plan said. Canada has a broader list of targets that could reach $105 billion worth of US imports, but would hold public consultations before acting, the source said.

Economists and business executives have warned the tariffs would spark increases in the prices of imports such as aluminum and lumber from Canada, as well as fruits, vegetables, beer and electronics from Mexico and motor vehicles from both countries.