Trump's tariff plans shake global markets as Canada and Mexico respond

President-elect Donald Trump announced plans to impose new tariffs on imports from Canada, Mexico, and China, totaling 25% on goods from Canada and Mexico and 10% on Chinese imports. This follows a year where US imports from these countries reached $1.32 trillion. While US stock markets showed a muted response, global markets reacted strongly. The Canadian dollar and Mexican peso fell against the US dollar, and stock markets in Mexico and Canada declined significantly. The US Dollar Index rose slightly amid expectations of higher interest rates. Market analysts suggest Trump's tariff threats may be a negotiating tactic rather than a definitive policy. Canadian Prime Minister Justin Trudeau indicated a willingness to engage with Trump to address the issues raised by the tariffs.