In promising 25% tariffs on all goods from Mexico and Canada, Donald Trump has signaled his intention to upend the USMCA and wring concessions on immigration and fentanyl.

Financial analysts on Tuesday reacted to a threat from U.S. President-elect Donald Trump to impose 25% tariffs on top trade partners Mexico and Canada when he takes office for a second term in January in a move that could trigger a trade war.

Canada and Mexico are two of America’s largest trading partners, and the tariff could have significant economic consequences for all three nations.

U.S. President-elect Donald Trump's pledge to impose tariffs on Canada would drive up fuel prices for Americans as it would upend decades-old oil trade from its top crude supplier, analysts said on Wednesday.

President Claudia Sheinbaum Pardo said tariffs could cause more inflation and result in job losses for the U.S. and Mexico.

If they are imposed, the tariffs will hurt American consumers most of all. The North American supply chain is integrated; nearly $1trn-worth of goods crossed the northern and southern borders of the United States last year.

By Sarah Morland, Raul Cortes and Brendan O'BoyleMEXICO CITY (Reuters) -Mexican President Claudia Sheinbaum said on Wednesday Mexico would retaliate if U.S. President-elect Donald Trump followed through with his proposed 25% across-the-board tariff,