Donald Trump’s vow to impose heavy tariffs on products from Canada, Mexico and China led to promises of retaliation and raised the prospect of trade fights that could surpass those of his first term.
Beijing could respond by starting a currency war, which would carry formidable risks for both sides.
Trump cited the movement of people and drugs into the U.S. when promising to impose tariffs of as much as 25 percent on goods from all three countries.
President Claudia Sheinbaum of Mexico signaled that her country was prepared to respond with tariffs of its own, and she noted that illegal border crossings into the U.S. have plunged since last year.
The U.S. auto industry depends heavily on manufacturing and parts from both Mexico and Canada, and any tariffs would quickly affect consumers.
