President-elect Donald Trump threatened to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs. He said he would impose a 25% tax on all products entering the country from Canada and Mexico,

Canadian Prime Minister Justin Trudeau says he had an “excellent conversation” with Donald Trump in Florida after the president-elect’s threat to impose significant tariffs on two of America’s leading trade partners raised alarms in Ottawa and Mexico City.

President Biden on Thursday said he hoped Trump would rethink his plan to impose tariffs, saying it could "screw up" relationships with close allies.

Mexican President Claudia Sheinbaum expressed confidence that a tariff war with the U.S. can be avoided following recent tensions.

The Mexican president and Trump have given dramatically different versions of the call Wednesday. Trump said on his Truth Social platform that she had agreed to “stop Migration through Mexico.”

But her statement — the day after she held a phone call with U.S. President-elect Donald Trump — did not make clear who had offered what.

The tariffs, if implemented, could dramatically raise prices for American consumers on everything from gas to automobiles to agricultural products.

Mexican President Claudia Sheinbaum said Thursday she is confident that a tariff war with the United States can be averted. But her statement — the day after she held a phone call with U.S. President-elect Donald Trump — did not make clear who had offered what.