Trump says Americans may feel ‘pain’ in trade war with Mexico, Canada, China; vows to slap tariffs on EU [Video]

US President Donald Trump said the sweeping tariffs that he has imposed on Mexico, Canada and China may cause “short term” pain for Americans as global markets reflected concerns the levies could undermine growth and reignite inflation.

Trump said he would speak with the leaders of Canada and Mexico, which have announced retaliatory tariffs of their own, but downplayed expectations that they would change his mind.

“I don’t expect anything dramatic,” Trump told reporters as he returned to Washington from his Mar-a-Lago estate in Florida. “They owe us a lot of money, and I’m sure they’re going to pay.”

He also said tariffs would “definitely happen” with the European Union, but did not say when.

Economists said the Republican president’s plan to impose 25 per cent tariffs on Canada and Mexico and 10 per cent tariffs on China – the US’ three largest trading partners – will slow global growth and drive …