President-elect Trump is wasting no time when it comes to making good on his promise

to impose tariffs on foreign nations to get them to alter their behavior.

Last night, Trump announced that he would slap major new tariffs on Mexico, Canada, and China

on his very first day in office, 25% on goods made in Canada and Mexico, 10% on products made in

China. Trump said he'd do this in response to migrants crossing into the U.S., as well as the failure

to stop the flow of drugs like fentanyl into America. Mexico's president, Claudia Scheinbaum,

reacted today that she would have no choice

but to retaliate if Trump imposed the tariffs.

For every tariff, there will be a response in kind until we put at risk our shared enterprises.

Yes, shared. For instance, among Mexico's main

exporters to the United States are General Motors, Stalantis, and Ford Motor Company,

which arrived in Mexico 80 years ago. Why impose a tariff that would jeopardize them?

Such a measure would be unacceptable and would lead to inflation and job losses in both the

United States and Mexico. The Chinese embassy in the U.S. also responded saying, quote,

no one will win a trade war. Canadian Prime Minister Justin Trudeau said he spoke with Trump on

the phone later and said he'll hold an emergency meeting with Canada's provincial

and territorial leaders. The economic consequences of these tariffs could be enormous,

involving multiple industries, consumer goods, and groceries. Put together, last year, China,

Mexico and Canada bought more than $1 trillion worth of U.S. exports,

and they sold nearly $1.5 trillion worth of goods and services to the U.S.

So to help us understand more about what's happening, we are joined by economist Mary Lovely.

She's a senior fellow at the Peterson Institute

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