Donald Trump has threatened Britain with potential trade tariffs - just days after suggesting the UK would be spared such measures during his meeting with Sir Keir Starmer.
The US President made the comments on Monday as he discussed potential trade agreements following the imposition of 25 per cent tariffs on Canada and Mexico.
Trump's latest comments mark a significant shift from his more optimistic tone following last week's meeting with the Prime Minister.
Speaking about potential trade arrangements as he slapped heavy duties on his neighbours to the north and south, Trump turned his attention to the UK, saying: "We're looking at the UK with things.
Donald Trump has threatened Britain with potential trade tariffs - just days after suggesting the UK would be spared such measures
REUTERS
"It doesn't have to be tariffs, but tariffs are easy. They're fast, they're efficient. And they bring fairness."
The threat came while the President gave remarks in the White House announcing new chip investments in the US.
Trump has previously criticised European taxes, including VAT, which he considers equivalent to tariffs.
His comments sent markets tumbling, with the S&P 500 index falling 1.8 per cent on Monday.
MORE ON TRUMP'S TARIFFS:
Trump has also announced an additional 10 per cent tariff on China
REUTERS"Tomorrow, tariffs - 25 per cent on Canada and 25 per cent on Mexico," Trump declared. "And that'll start."
"What they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs."
Trump has also announced an additional 10 per cent tariff on China, citing concerns about fentanyl entering the US.
Last week, following his meeting with Starmer, Trump indicated that US-Britain trade talks were back on track as he lashed out at the EU.
"The EU was very tough on us from the standpoint of trade," Trump said, and added that UK-US relations are in a "warm spot".
After his meeting with Starmer, Trump had indicated that US-Britain trade talks were back on track
PAAfter slapping down the Brussels bloc and hailing Brexit as the "right thing at the right time", the tariff-happy President said a deal was in line to come "very quickly".
"We're going to have a great trade agreement," Trump said. "We're going to end up with a very good trade agreement for both countries, and we're working on that as we speak."
Starmer, a few minutes later, promised that he and Trump "will work on a new economic deal with advanced technology at its core".
"I think we could very well end up with a real trade deal where tariffs won't be necessary," Trump said after the meeting.
Trump is also planning worldwide "reciprocal tariffs" starting on April 2.
He deliberately chose not to begin on April 1, saying: "I didn't want to go April Fool's Day, because that costs a lot of money."
