A full-blown trade war between the U.S. and Canada could lead to a recession in both countries, economist says.

President Joe Biden criticized President-elect Donald Trump's announcement that he will implement 25% tariffs on Canada and Mexico, saying that the comments were "counterproductive."

The leaders of Mexico and Canada responded quickly, and in different ways. Justin Trudeau, Canada’s prime minister, jumped on the phone to Mr Trump to chat about the “intense and effective connections” between their countries. His deputy, Chrystia Freeland, released a statement about the importance of border security.