Trump Trade Tariff: Mexico President Warns of Bad Consequences

U.S. President-elect Donald Trump’s suggestion to impose heavy tariff on all foreign imports, has left nations across the globe jittery; and his stand of 25% tariff on imports from Mexico and Canada, has started attracting reactions.

Mexican President Claudia Sheinbaum on Tuesday warned U.S. President-elect Trump of dire economic consequences for both countries.  According to media reports, she shot a letter to Trump saying: "One tariff will follow another in response and so on, until we put our common businesses at risk". She has warned job loss and inflation for both the countries.

Mexico is an important trade partner of the United States' with 15.8% of its total trade with the U.S., followed by Canada at 13.9%.

China too is worried over Trump’s stand to impose heavy tariff on its goods. Yesterday, as a reaction to Trump’s tariff suggestions, shares of automobile making companies in U.S. and Europe fell.