Further afield, European economies are also at risk from Trump's tariff regime. The U.S. president told reporters on Sunday that tariffs on the EU "will definitely happen" — but said a deal "could be worked out" with the U.

Donald Trump has said import taxes will "definitely happen" with the EU. He said the UK "is out of line" on trade with the US and told reporters "we'll see what happens".

Citing a senior Canadian official who shared details of Trump's plan with CBC, the news organisation says it includes 25% tariffs on most goods coming from Canada into the US, along with 10% tariffs on Canadian energy products.

With the US President threatening import tariffs, the Crown Dependencies' strong financial services may make a trade war with the UK less likely. | ITV News Channel

U.S. President Donald Trump said trade tariffs would be imposed on the European Union and U.K., but he signaled that a deal could be worked out with Britain.

U.S. President Donald Trump said on Sunday that although Britain was "out of line" when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: "I think that one can be worked out".

Some Canadian politicians previously suggested tossing Mexico from a three-nation trade agreement with the United States.