China and Mexico lashed out Tuesday after Donald Trump threatened to begin his presidency with an immediate trade war against the top three US economic partners.Trump made his threat in social media posts, announcing huge import tariffs against neighbors Canada and Mexico and also rival China if they don’t stop illegal immigration and drug smuggling into the United States.China responded that “no one will win a trade war,” while Mexican President Claudia Sheinbaum warned that “for every tariff, there will be a response in kind.”A Canadian government source said Prime Minister Justin Trudeau called Trump and had a “productive” discussion, without giving further detail.Such tariffs threaten to disrupt the global economy, deepen already fierce tensions with China and upend relations with the United States’ two huge neighbors.Nervous stock markets saw “volatile trading conditions” as they digested the news, said Fawad Razaqzada, analyst at City Index.On his Truth Social platform, Trump said late Monday that he would enact the tariffs the moment he takes office on January 20 if his — vaguely worded — demands were not met.The posts signal Trump’s intention to return to the governing style of his first presidency, when he regularly shocked Washington and US partners with abrupt, major policy shifts which he announced on social media.They also confirmed that Trump is serious about his major campaign promise to use US economic muscle as leverage on issues having little to do with trade — namely his claim that the United States is under siege by foreign crime and dangerous migrants.On Tuesday, Trump named two important figures to his economic team: Jamieson Greer as his trade representative and Kevin Hassett as his top economic advisor, heading the White House National Economic Council.Both had roles in his first administration, with Greer serving as chief of staff to former US Trade Representative Robert Lighthizer.”I will sign all necessary documents to charge Mexico and Canada a 25 percent tariff on ALL products coming into the United States,” Trump earlier posted.”This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” he said.In another post, Trump said he would be slapping China with a 10 percent tariff, “above any additional Tariffs,” because the world’s second biggest economy was failing to execute fentanyl smugglers.Liu Pengyu, spokesman for China’s embassy in the United States, told AFP that “China believes that China-US economic and trade cooperation is mutually beneficial in nature.”Mexico’s Sheinbaum fired back at Trump, saying his tariffs diplomacy was “not acceptable” and based on erroneous claims.”It is not with threats or tariffs that the migration phenomenon will be stopped, nor the consumption of drugs in the United States,” she said.Sheinbaum pointed out that the Mexican narcotics industry largely exists to serve demand in the United States.”Seventy percent of the illegal weapons seized from criminals in Mexico come from your country,” she said. “Tragically, it is in our country that lives are lost to the violence resulting from meeting the drug demand in yours.”- Bluster or serious? -William Reinsch, senior adviser at the Center for Strategic and International Studies, said Trump’s online threats may be bluster — a strategy of “threaten, and then negotiate.”However, Trump’s first White House term was marked by an aggressive and protectionist trade agenda that also targeted China, Mexico and Canada, alongside Europe.While in office, Trump launched an all-out trade war with China, imposing significant tariffs on hundreds of billions of dollars of Chinese goods. China responded with retaliatory tariffs on American products, particularly affecting US farmers.Economists say tariffs can hurt US growth and fuel inflation, since they are paid by importers bringing the goods into the United States, who often pass those costs on to consumers.Trump has said he will put his commerce secretary designate Howard Lutnick, a China hawk, in charge of trade policy.

Bolivia said Tuesday it had signed a $1 billion deal with China’s CBC, a subsidiary of the world’s largest lithium battery producer CATL, to build two lithium carbonate production plants in the country’s southwest.Bolivia’s state-owned Bolivia Lithium Deposits (YLB) said the plants — one with an annual capacity of 10,000 tons of lithium carbonate and the other of 25,000 – would be situated in the vast Uyuni salt flats.Lithium, nicknamed “white gold,” is a key component in the production of batteries for electric vehicles and mobile phones.Bolivia claims to have the world’s largest lithium deposits.President Luis Arce, who presided over Tuesday’s signing ceremony, said it paved the way for Bolivia to become “a very important player in determining the international price of lithium.”The deal follows an earlier agreement reached last year between Russia’s Uranium One Group and YLB to build a $970 million lithium extraction facility, also in Uyuni.Both deals have yet to be approved by Bolivia’s parliament.Arce announced that negotiations were underway with China’s Citic Guoan Group for a third contract. “We hope to close that deal as soon as possible,” he said.

US stock indices pushed to fresh records Tuesday, shrugging off tariff threats from President-elect Donald Trump while European equities retreated.Trump, who doesn’t take office until January 20, made his threat in social media posts Monday night, announcing huge import tariffs against neighbors Canada and Mexico and also rival China if they do not stop illegal immigration and drug smuggling.Both the Dow and S&P 500 notched all-time highs, with investors regarding the incoming president’s words as a bargaining chip.”In theory, higher tariffs should not be good news for stocks. But, you know, I think the market’s chosen to think of (it) as a negotiating tactic,” said Steve Sosnick of Interactive Brokers.”You have bullish sentiment,” said LBBW’s Karl Haeling. “People are tending to look at things as positively as possible.”But General Motors, which imports autos from Mexico to the United States, slumped 9.0 percent, while rival Ford dropped 2.6 percent.Overseas bourses were also buffeted by the news. European stocks followed losses in Asia, despite Trump excluding Europe as an immediate target for tariffs.”These are his first direct comments on tariffs and tariff levels since becoming president-elect, and they have roiled markets,” said Kathleen Brooks, research director at XTB trading group, ahead of the Wall Street open.”It is early days, and there are plenty of opportunities for Trump to direct his attention to Europe down the line,” Brooks added.The US dollar rallied against its Canadian equivalent, China’s yuan and Mexico’s peso, which hit its lowest level since August 2022.In other economic news, the Conference Board’s consumer confidence index rose to 111.7 this month, up from 109.6 in October, boosted by greater optimism surrounding the labor market.”November’s increase was mainly driven by more positive consumer assessments of the present situation, particularly regarding the labor market,” said Dana Peterson, chief economist at The Conference Board.Pantheon Macroeconomics chief US economist Samuel Tombs added in a note that the increase in consumer confidence overall “likely was driven by euphoria among Republicans.””The index also jumped in late 2016, when Mr. Trump was elected for the first time,” he said.Federal Reserve meeting minutes showed policy makers expect inflation to keep cooling, signaling a gradual approach to interest rate cuts if price increases ease further and the job market remains strong.- Key figures around 2150 GMT -New York – Dow: UP 0.3 percent at 44,860.31 (close)New York – S&P 500: UP 0.6 percent at 6,021.63 (close)New York – Nasdaq: UP 0.6 percent at 19,174.30 (close)London – FTSE 100: DOWN 0.4 percent at 8,258.61 (close)Paris – CAC 40: DOWN 0.9 percent at 7,194.51 (close)Frankfurt – DAX: DOWN 0.6 percent at 19,295.98 (close)Tokyo – Nikkei 225: DOWN 0.9 percent at 38,442.00 (close)Hong Kong – Hang Seng Index: FLAT at 19,159.20 (close)Shanghai – Composite: DOWN 0.1 percent at 3,259.76 (close)Euro/dollar: DOWN at $1.0482 from $1.0495 on MondayPound/dollar: DOWN at $1.2567 from $1.2568Dollar/yen: DOWN at 153.06 yen from 154.23 yenEuro/pound: DOWN at 83.41 pence from 83.51 penceBrent North Sea Crude: DOWN 0.3 percent at $72.81 per barrelWest Texas Intermediate: DOWN 0.3 percent at $68.77 per barrel