Trade partners warn Trump tariffs could spark economic turmoil

U.S. President-elect Donald Trump announced plans to impose a 25% tariff on imports from Mexico and Canada, starting on his first day in office. This decision has raised concerns among officials from these countries and China. Trade officials warn that the tariffs could lead to a trade war, harming economies and job markets. They also fear inflation may rise as a result of these measures. The announcement has already affected financial markets, causing volatility in currency, bond, and equity markets. Mexico and Canada are crucial to U.S. auto production and energy, making the potential impact significant.