"A trade war is not in the interest [of either party] neither for the U.S., neither for the European Union," Pedro Sanchez said.

President Donald Trump said a 25% tariff on Canada and Mexico could come on February 1 and that a universal tariff isn't off the table.

President Trump is using the threat of stiff tariffs on goods from Canada and Mexico to pressure the two nations to start renegotiating a continental trade deal.

The likelihood of an all-out trade war may have receded but not the trade-related volatility as stocks climbed.

Trade battles being threatened by President Trump would spike food prices, help China and risk key U.S. economic relationships, Mexico’s former trade chief said Monday “I say bring it on,” Kenneth Smith Ramos said in a thread on the social platform X in response to a clip of Trump discussing tariffs in the Oval Office.

Donald Trump sparked a bout of tumult in financial markets hours after his inauguration as he threatened to hit Mexico and Canada with big tariffs. Speaking in the Oval Office late on Monday, Trump said he could enact tariffs of 25 per cent against both countries as soon as February 1,