Officials from Mexico, Canada and China and major industry groups warned that U.S. President-elect Donald Trump's threat of hefty tariffs on goods would harm the economies of all involved, cause inflation to spike and damage job markets.

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,

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

If 25 percent tariffs are slapped on imports from Mexico and Canada, vehicles made there by GM, Ford, and Stellantis would get more expensive.

Nearly every major automaker operating in the U.S. has factories in Mexico, however GM and Stellantis produce highly profitable full-size pickup trucks there.