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.

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

Trump has pledged to punish Canada and Mexico for “bringing Crime and Drugs at levels never seen before” by imposing a 25 percent tariff on all imported goods from U.S. neighbors — with no exceptions made for oil and natural gas.