Trump’s tariff threat soon escalated beyond a simple tax dispute. The Trump administration issued a series of harsh retaliatory sanctions and penalties, including visa sanctions

Mr Trump has made clear that he sees tariffs as a way to incentivise foreign investment in America and boost production at home. “It’s going to mean a lot of businesses are going to be opening in the United States,

Trump introduced tariffs of 25 per cent on steel and 10 per cent on aluminium against most countries, using national security as justification, before extending them to the EU, Canada and Mexico in June.

The levies, which take effect March 4, are just the latest in a litany of tariff threats and impositions from the president in the first weeks of his second term.

Donald Trump will press ahead with a 25 per cent tariff on steel and aluminium exports from all countries, including Australia.

The US president's tariff strategy has so far forced Mexico, Canada, Colombia and Panama to toe the line. But with America's economy and reputation at stake, how long can such a coercive approach work?