Trump warns Americans could feel 'pain' in trade war with key partners

President Donald Trump said that Americans may feel economic "pain" from his tariffs on Mexico, Canada and China but argued it would be "worth the price" to secure US interests.

"Will there be some pain? Yes, maybe (and maybe not!)" Trump wrote on Sunday morning in all-caps on his Truth Social media platform.

"But we will Make America Great Again, and it will all be worth the price that must be paid."

Analysts expect the trade war to slow US growth and increase prices, at least in the short term, something the president had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.

Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10 percent.

The president, in his order, cited irregular immigration and the trafficking of the deadly opioid fentanyl as reasons for the "emergency" measures.

But on Sunday he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the United States.

"The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we're not going to be the 'Stupid Country' any longer," he wrote.

He later in the evening told reporters that he will speak with both Canada and Mexico regarding the tariffs on Monday.

Both Canada and Mexico already announced retaliatory measures. China vowed to do the same.

Bracing for fallout

North American companies were braced for the move, which could upend industries from autos to consumer goods to energy.

The Trump tariffs, outlined in three executive orders, are due to take effect at 12:01 am ET on Tuesday.

Markets were awaiting developments with anxiety, but some analysts said there was some hope for negotiations, especially with Canada and China.

"With only two days before implementation, the tariffs look likely to take effect, though a last-minute compromise cannot be completely ruled out," Goldman Sachs economists said in a note on Sunday.

They added that since the White House set very general conditions for their removal, the levies are likely to be temporary, "but the outlook is unclear."

Hopes for agreement

China left the door open for talks with the United States. Its sharpest pushback was over fentanyl.

"Fentanyl is America's problem," China's Foreign Ministry said, adding that China has taken extensive measures to combat the problem.

Canada's ambassador to the United States, Kirsten Hillman, on Sunday, signalled hope for an agreement.

"We're hopeful that they don't come into effect on Tuesday," Hillman said in an ABC interview.

Hillman said Canadian officials are ready to keep talking to the United States but that Canadians expect that their government "stands up for itself."

Mexico's Claudia Sheinbaum also proposed dialogue with the US but is awaiting a response from Trump.