The US President Donald Trump has sparked a bitter trade war with Mexico and Canada, who have hit back with retaliatory tariffs after the US president slapped both countries with huge levies

Canadian Prime Minister Justin Trudeau told a business gathering on Friday that US President Donald Trump’s threat to annex Canada “is a real thing,” two Canadian business leaders who were at the meeting confirmed to CNN.

Prime Minister Justin Trudeau on Friday said U.S. President Donald Trump's talk about absorbing Canada "is a real thing" and is linked to the country's rich natural resources, a government source said.