Donald Trump says he will impose a 25% tariff on goods coming from Mexico and Canada, plus an extra 10% on Chinese goods.

While the announcement is almost certainly bluster to bring attention to illegal immigration and fentanyl smuggling, there are several reasons why it is so risky.

With the possibility of a multi-front trade war looming over the January inauguration of President-elect Donald Trump, tariffs are the name of the game for economic forecasts.