U.S. President Donald Trump says his administration is discussing new tariffs on Chinese goods by February 1, raising the specter of a retaliatory trade war with the second-largest economy in the world.

Mexico and Canada are putting aside their differences and forming a more united front as they try to head off US President Donald Trump’s threat to impose steep tariffs on them as soon as next week. Since winning the election in November Trump has repeatedly threatened his country’s two largest trading partners with tariffs of 25 per cent on all exports to the US in retaliation for what he says are rising levels of illegal immigration and the trafficking of the opioid fentanyl into the country.