Mexico’s president responded Tuesday to President-elect Donald Trump’s threat to impose tariffs on goods produced in her country with a warning that his plan would cause more inflation and hurt storied American automakers like General Motors and Ford.

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.

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

Trump's plan for tariffs against Canada and Mexico could dramatically raise prices for Americans and threaten a trade agreement negotiated by his own administration.

In their initial round of responses to Trump's surprise announcement on Monday for a 25% tariff on imports from Canada and Mexico and an additional 10% levy on Chinese goods until they clamped down on illicit drugs and migrants crossing the border,

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.