Canada vowed strong pushback while Mexico urged calm on Tuesday in the face of US President Donald Trump's trade threats that risk throwing their economies into disarray.

While much about the threatened tariffs is still unclear, experts predict they would be bad news for all three economies, with few winners.

Trump underscored his intention to use tariffs as a tool of international economic policy and an increasingly vital source of government revenue.

President Trump said Monday that he expects to put 25% tariffs on Canada and Mexico starting Feb. 1, while declining to flesh out his plans for taxing Chinese imports.

President Donald Trump said in an Oval Office signing ceremony Monday evening that his administration will impose 25% tariffs on Mexico and Canada on February 1, an extraordinary change in North American trade policy that could raise prices for American consumers.

Trump was quoted saying his team was thinking of tariffs around 25% which could be announced on Feb. 1 but offered no other specifics.

The dollar pared some overnight losses on Tuesday after U.S. President Donald Trump suggested the United States could impose tariffs on Canada and Mexico in the near future, challenging suggestions his policies would be more gradual.

The dollar advanced against most major currencies after President Donald Trump said he may enact 25% tariffs on Mexico and Canada next month.