Mexico and Canada are putting aside their differences and forming a more united front as they try to head off US President Donald Trump’s threat to impose steep tariffs on them as soon as next week. Since winning the election in November Trump has repeatedly threatened his country’s two largest trading partners with tariffs of 25 per cent on all exports to the US in retaliation for what he says are rising levels of illegal immigration and the trafficking of the opioid fentanyl into the country.

President Trump virtually addressed the audience at the World Economic Forum in Davos, Switzerland. He said countries would have to pay a tariff if they don’t make their product in the U.S.

President Donald Trump offered economic world leaders a choice; manufacture your products in America, or face tariffs. Follow Newsweek's live blog for updates.