Could a tariff war erupt between the United States and Mexico? A top Mexican official said his country might retaliate if the Trump administration placed steep tariffs on Mexico.

The US president-elect Donald Trump vowed to impose tariffs of as much as 25% on Mexican imports during the final days of his campaign.

Mexico's Economy Minister Marcelo Ebrard suggested on Monday that the Mexican government could retaliate with its own tariffs on U.S. imports if the incoming Trump administration slaps tariffs on Mexican exports.

A range of experts, from Nobel Prize-winning economists to an internet-famous menswear writer, have a message for Americans who voted for Donald Trump based on his promises to bring down prices: This likely won’t go how you want.

The slump in the peso, which reached 20.8 to the dollar after the race was called for Mr Trump, its lowest rate in two years, illustrates the scale of the economic damage that investors believe Mexico could suffer.