Donald Trump says he won’t rule out tariffs on UK

We've closed this live page, but we are continuing our live coverage here

Donald Trump says US tariffs on imports from the EU "will definitely happen" following similar moves targeting Canada, Mexico and China

He does not rule out imposing tariffs on UK goods and says the country is "out of line", but the situation "can be worked out" with PM Sir Keir Starmer who has "been very nice"

Trump says he will speak to Mexico and Canada's leaders on Monday. US tariffs of 25% on the two countries' goods, and a 10% tariff on Chinese goods, are due to kick in from Tuesday

Canada and Mexico are set to impose retaliatory tariffs, while China will implement "corresponding countermeasures" and plans to file a lawsuit with the World Trade Organization

Asian markets, the first ones to open since Trump's tariff announcements on the weekend, have tumbled significantly in an indication of investor uncertainty

The United States runs a trade deficit with the European Union, which means it imports more from European countries than it sells to them.

Last year, the US ran a deficit of $213bn (£173bn) - which President Trump has just described as "an atrocity". To redress the balance, he says that tariffs on EU goods will "definitely happen". The president argues that the border taxes will help protect American jobs and products domestically.

Among the top European exports to America are pharmaceuticals, cars and other types of advanced machinery. The United States, meanwhile, sells oil, gas and financial services to Europe.

Different countries will be affected in different ways by US tariffs. Ireland, for example, is by far the most reliant on the American market - nearly half of its exports outside the EU are destined for the US.

Countries that buy a lot from the US include the Netherlands and Germany - although the latter exports a huge volume of cars in return.

Even so, the EU says it will act as a collective and "respond firmly", if and when tariffs come in. That probably means retaliatory taxes.

When it comes to the UK, things are slightly different. The US doesn't run as high a trade deficit with Britain - in fact at one point last year it ran a surplus - and government ministers hope that this will persuade the president to spare the UK from tariffs.

As President Trump put it, the UK is "out of line" but the EU is "really out of line".
Good morning to our readers in the UK and Europe. On Sunday night in the US, President Donald Trump had warned that he may widen the scope of his tariffs to include the European Union and the UK.

Here's more on that:

Tariffs on EU exports to the US will happen "pretty soon", Trump had said, repeating his earlier complaints of US trade deficits with "virtually every country in the world"
The UK has been "out of line" but the situation "can be worked out", Trump said, adding that he has been "getting along very well" with UK Prime Minister Sir Keir Starmer. This comes as Starmer heads to Brussels to join an EU leaders' meeting
Earlier, a spokesman for the European Commission had said the EU will "respond firmly" to any unfair or arbitrary tariffs on its exports. The EU "regrets" the tariffs imposed on Canada, Mexico and China, he said in a statement, adding that tariffs "create unnecessary economic disruption" and are "hurtful to all sides"
Asian markets, the first ones to open since Trump's tariff announcements on the weekend, have tumbled significantly in an indication of investor uncertainty
Trump has acknowledged that Americans will feel "a little pain" in the short term, but he believes that it will be worthwhile. Analysts have told the BBC that US consumers should expect higher petrol prices, among other hikes.
Meanwhile, Canada has announced it would impose retaliatory sanctions on $155bn Canadian dollars ($106.6bn; £86bn) worth of US goods; Mexico has also announced retaliatory tariffs of 25% on US goods. Trump said he will speak to the leaders of both countries on Monday
China is considering "countermeasures" and plans to file a lawsuit with the World Health Organization. The country is still celebrating the Lunar New Year holiday and mainland Chinese markets remain closed.
Stay with us as we bring you the latest.