Mexico and Canada are the United States’ top two trading partners, accounting for nearly 30% of trade volumes.

President-elect Donald Trump has already begun to captivate financial markets with his unorthodox negotiating style, as evidenced by the reaction to his Tuesday night threat to impose 25% tariffs on Mexico and Canada and a surcharge tariff of 10% on China.

The president-elect said that he would impose the across-the-board tariffs on Day 1 and that they would stay in place until Canada, Mexico and China halted the flow of drugs and migrants.