The president-elect’s threat to hit Canada, Mexico and China with new tariffs is already rocking business and diplomatic relationships and could topple the trade pacts he signed in his first term.

Donald Trump says he will impose a 25% tariff on goods coming from Mexico and Canada, plus an extra 10% on Chinese goods.

Mexico has supplanted China as the main source of goods, but imports keep climbing.

The president-elect said that he would impose the across-the-board tariffs on Day 1 and that they would stay in place until Canada, Mexico and China halted the flow of drugs and migrants.

Officials from Mexico, Canada and China warned U.S. President-elect Donald Trump's threat of imposing hefty tariffs on goods from the three largest U.S. trading partners would harm the economies of all involved and would risk aggravating inflation and damaging job markets.

After President-elect Donald Trump said he would enact steep tariffs on Mexico, Canada and China, those nations urged talks instead of damaging trade relationships. Meanwhile, economists fear tariffs could stoke inflation for U.

Stocks wavered Tuesday as investors digested Trump's latest tariff plans, which he said would include a 25% tariff on imports from Canada and Mexico.

Trump vowed to hit neighbors Mexico and Canada with a 25 percent tariff on “all products." (BLOOMBERG) Author. By: Bloomberg News