The latest forecast from the Organisation for Economic Co-operation and Development announced a particularly stark warning for North American economies. The institution's latest report warns that escalating tariffs combined with persistent inflation and policy uncertainty could drag Mexico into a recession while sharply slowing Canada's economy.

President Trump is locked in a tit-for-tat tariff war with Canada, Mexico, the European Union and China in a bid to remake the US economy for the long term – and some early winners and losers have already emerged.

President Trump suspended tariffs for both countries after Mexico’s leader presented her security successes, and after U.S. markets fell and business leaders urged the White House to change course.