Trade partners and industry groups warn Trump tariffs could harm economies of all involved

Officials from Mexico, Canada, and China have warned that U.S. President-elect Donald Trump's proposed tariffs could harm all economies involved. The tariffs, including a 25% levy on imports from Canada and Mexico, could lead to inflation and job losses. The announcement caused market volatility, particularly affecting currencies and shares of automakers reliant on cross-border trade. Analysts predict significant negative impacts on the U.S. auto industry and energy sectors, as Canada is a major supplier of crude oil to the U.S. Trump's tariffs are seen as a violation of the U.S.-Mexico-Canada Agreement, which promotes duty-free trade. The tariffs are linked to concerns over drug trafficking and immigration, with Trump suggesting they could be a starting point for negotiations.