The president-elect’s market-friendly appointments to Treasury and other agencies brought relief to investors. The trade threat suggests that might be premature.

On Monday, Trump promised a new tariff on all products entering the U.S. from Mexico and Canada until the countries crack down on the flow of drugs and “illegal aliens,” he said in a Truth Social post.

Leaders in Mexico and Canada responded to the president-elect’s proposed new tariffs. Observers said the plan might just be the first step in negotiations.

The president-elect’s threat to hit Canada, Mexico and China with new tariffs is already rocking business and diplomatic relationships and could topple the trade pacts he signed in his first term.

With a Monday evening promise on Truth Social that his incoming administration will slap 25 percent tariffs on all goods from Canada and Mexico — as well as increasing already existing tariffs on China — Trump sent reporters (and investors,

Trump threatened to impose tariffs on Mexico, Canada and China through executive order on Inauguration Day. It’s unclear exactly what that will mean.

President-elect Donald Trump announced Nov. 25 he would impose sweeping new tariffs on countries he says have allowed illegal immigrants and drugs to enter the United States. If the import tax were implemented,