President-elect Donald Trump has long touted tariffs as a tool to help the U.S. get better deals from trading partners. Consumers and corporate purchasers pay these taxes on imported goods and the higher prices make companies (and countries) exporting to the U.

The threat to put tariffs on all imports from Mexico and Canada sent GM shares lower and stoked fears such a move could impact profit margins.

While the reaction in US stocks was muted, global equities were rattled. Markets are wondering if Trump's threats are mainly a negotiating tactic.

General Motors, Ford and Stellantis shares slid Tuesday after President-elect Trump threatened 25% tariffs on all imports from Canada and Mexico. The move by the new administration would likely stop American car demand in its tracks,

The dollar rallied sharply on Tuesday after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico, and additional tariffs on China. Asian stocks declined, giving back some of the robust gains of the previous session,

Europe’s worst-case scenario for the future of transatlantic economic relations rose to the surface this week when President-elect Donald Trump gave a clear signal that he’ll use American trade might as a means to exert foreign policy leverage.

By Joao Manuel Vicente Mauricio, Ankika Biswas and Pranav Kashyap (Reuters) -European stocks fell across the board, led by automakers, as Donald Trump's tariff threat on the United States' largest trading partners prompted worries about another global trade war.