Trump’s tariff threat
President-elect Donald Trump’s threat of 25 percent, across-the-board tariffs on Mexico and Canada has already shocked the system. The US dollar rose against its neighbors’ currencies, as stocks dropped and rose.Floating an additional tariff on China is one thing, but adding America’s two neighbors makes the move especially ambitious. If implemented, the US would effectively levy tariffs against its top three trading partners, which together make up around 40 to 50 percent of total trade between America and the world. That’s revolutionary.One thing that’s for certain is that tariffs would hurt the countries they target more than they hurt the US. More than 75 percent of Mexican and Canadian exports are to the Land of the Free.