Faisal Islam: The tariff wars have begun - buckle up

Donald Trump has threatened to impose border taxes on Canada , Mexico and China .

The White House is claiming Canada 's pledge to spend $ 1.3bn ( 1bn ) on a border protection plan has given it diplomatic victory in its battle over fentanyl traffic.

But there was very little conceded that was not already planned by America 's northern neighbour.

Both Mexico and Canada were undeterred by a clear threat in Trump 's executive orders.

Former White House economic advisor suggests a 15% universal tariff on all imports from everywhere in order to fund a cut in income tax rates down to 15% .

He suggests that punitive tariffs could be used as leverage to make reluctant trading partners like Europe and China "become more receptive" to the idea.

Mark Carney , who is frontrunner to replace Justin Trudeau as Canadian Prime Minister, has a rather unique approach.

There is no such thing as a Canadian auto industry, an American auto industry and a Mexican auto industry.

The integration among the three countries is "absolutely foundational" to how the industry works.

Others diversify by responding to direction of US trade policy by diversifying with one another.