Donald Trump says the UK is "out of line" but believes a deal is possible after warning the EU about impending tariffs.
The US president said the European Union could expect levies "pretty soon", adding that imposing tariffs on the UK "might happen".
It comes after China, Canada and Mexico vowed retaliatory measures against the US over sweeping tariffs on goods.
"The UK is way out of line, and we’ll see," Trump said as he returned to Washington.
"But (the) European Union is really out of line. The UK is out of line but I’m sure that one, I think that one can be worked out. But the European Union, it’s an atrocity what they’ve done."
The president went on to say: "The United States has been ripped off by virtually every country in the world.
"We have deficits with almost every country - not every country - but almost, and we’re going to change it. It’s been unfair."
He said: "It might happen [with Britain]... but it will definitely happen with the European Union. I can tell you that, because they’ve really taken advantage of us – you know, we have (an) over $300 billion deficit."
The action against China, Canada and Mexico fulfilled one of Trump’s commitments to voters, but threw the global economy and the new president’s political mandate to lower prices into turmoil.
Both Canada and Mexico responded to the measures saying they were also preparing similar tariffs on US goods, while China confirmed it would take "necessary countermeasures to defend its legitimate rights and interests".
Canadian Prime Minister Justin Trudeau on Saturday said Canadian duties on 30 billion dollars (£24 billion) worth of trade in American alcohol and fruit will take effect on Tuesday when the US tariffs go into effect.
President Donald Trump boards Air Force One at Palm Beach International Airport in West Palm Beach, Fla., Sunday, Feb. 2, 2025. Picture: Alamy
He opened his address to Canadians with a message aimed at American consumers.
"It will have real consequences for you, the American people," he said, saying it would result in higher prices on groceries and other goods.
Canada’s Prime Minister Justin Trudeau addresses media following the imposition of a raft of tariffs. Picture: Alamy
Mr Trudeau channelled the views of many Canadians who were feeling betrayed by their neighbour and long-time ally, reminding Americans that Canadian troops fought alongside them in Afghanistan.
"The actions taken today by the White House split us apart instead of bringing us together," Mr Trudeau said, warning in French that it could bring about "dark times" for many people.
Mexican President Claudia Sheinbaum said she had instructed her economy secretary to respond. Picture: Getty
Mexican President Claudia Sheinbaum said she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defence of Mexico’s interests.
"We categorically reject the White House’s slander that the Mexican government has alliances with criminal organisations, as well as any intention of meddling in our territory," Ms Sheinbaum wrote in a post on X.
"If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population."
Trump’s order includes a mechanism to escalate the rates if the countries retaliate against the US.
The tariffs risk an economic standoff with America’s two largest trading partners Mexico and Canada, upending a decades-old trade relationship with the possibility of harsh reprisals by those two nations.
The tariffs could cause inflation to significantly worsen, possibly eroding voters’ trust that Trump could deliver his promise to lower the prices of groceries, gas, housing, vehicles and other goods.
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada.
Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate.
The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth.
A new analysis by the Budget Lab at Yale laid out the possible damage to the US economy, saying the average US household would lose the equivalent of 1170 dollars (£943) in income from the taxes.
The premier of the Canadian province of British Columbia, David Eby, called on people to stop buying liquor from US "red" states and remove American alcohol brands from government store shelves as a response to the tariffs.
In a televised message, Mr Eby deemed the Trump administration’s decision as "a declaration of economic war against a trusted ally and friend" and that he will stand up for his citizens and all Canadians in general.
"Effective today, I have directed BC liquor sales to immediately stop buying American liquor from red states," he said.
"Liquor store employees will be removing the most popular of these brands from government store shelves."
A senior US administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimise any disruptive increases in the price of gas or utilities.
That is a sign White House officials understand the gamble they are taking on inflation. Price spikes under former president Joe Biden led to voter frustration that helped to return Trump to the White House.
The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
The order would also allow for tariffs on Canadian imports of less than 800 dollars (£645).
Imports below that sum are currently able to cross into the United States without customs and duties.
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