Even as Mexico President Claudia Sheinbaum attempts to quell concerns over Donald Trump’s threat of 25% tariffs, economists are looking glumly at the trouble ahead should the US president-elect actually follow through.

President-elect Donald Trump said Wednesday that he had a “productive conversation” with Mexican President Claudia Sheinbaum, their first talks since Trump announced tariffs against the US’ southern neighbor.

Mexican President Claudia Sheinbaum said on Wednesday Mexico would retaliate if U.S. president-elect Donald Trump followed through with his proposed 25 per cent across-the-board tariff, a move her government warned could kill 400,