Trump says ‘no room left’ for deal that avoids tariffs on Mexico and Canada

Announcement leads to sharp sell-off on Wall Street as Trump also vows tariffs on farm products starting in April

The US will press ahead with steep tariffs on Canada and Mexico from Tuesday, Donald Trump has said, setting the stage for a trade war with his country's two largest economic partners.

Hours before his administration was due to hit America's closest neighbors with sweeping import duties, the US president claimed there was no room left" for a deal to avoid their imposition. The announcement led to a sharp sell-off on Wall Street.