Mexican President Claudia Sheinbaum on Tuesday warned U.S. President-elect Donald Trump of dire economic consequences for both countries from tariffs, while urging dialogue following his threat of across-the-board tariffs of 25% on Mexico and Canada.

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

Officials from Mexico, Canada and China warned U.S. President-elect Donald Trump's threat of imposing hefty tariffs on goods from the three largest U.S. trading partners would harm the economies of all involved and would risk aggravating inflation and damaging job markets.

Donald Trump's plans could spark trade wars, fuel volatility, reignite inflation, and spur a flight to safety in markets, analysts said.

Stocks wavered Tuesday as investors digested Trump's latest tariff plans, which he said would include a 25% tariff on imports from Canada and Mexico.

Global shares retreated on Tuesday as worries spread over President-elect Donald Trump’s comment that he plans to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office.

On Truth Social, Trump alleged that Chinese inaction on illegal fentanyl was the reason behind the new 10% tariff.