By Jarrett Renshaw, Daphne Psaledakis and David Lawder WASHINGTON (Reuters) - President Donald Trump said on Sunday the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "short term" pain for Americans as global markets reflected concerns the levies could undermine growth and reignite inflation.

Trump’s move to impose new tariffs has bewildered the United States’ closest allies and trading partners, who have vowed to respond with levies of their own.

Mexico will refrain from a tariff on corn, fearing that livestock would starve on its farms. And while it could seek to retaliate through its financial system, for example by taxing or restricting payments to America, it will be wary of triggering damaging penalties on Mexican banks.