WASHINGTON, March 4 -- US President Donald Trump declared on Monday that a 25% tariff on imports from Mexico and Canada will take effect on Tuesday, raising fresh concerns about a potential North American trade war, which is already contributing to inflation and slowing economic growth.

"Tomorrow - tariffs of 25% on Canada and 25% on Mexico. And that will commence," Trump stated to reporters in the Roosevelt Room. "They will have to pay a tariff," reports AP.

Trump justified the tariffs as a means to pressure both neighbouring countries into intensifying efforts to combat fentanyl trafficking and curb illegal immigration. However, he has also expressed a broader goal of addressing trade imbalances within the Americas and encouraging mor...