The Globe and Mail reports in its Monday edition that global markets are set for a fresh jolt on Monday after U.S. President Donald Trump launched a trade war with sweeping tariffs on Canada, Mexico and China that threaten to undermine economic growth and reignite inflation. A Reuters dispatch to The Globe says that with Mexico and Canada -- the top two U.S. trading partners -- are vowing immediate retaliation and China says it would take "countermeasures," the scene was set for a round of turbulence. The risk of a global trade war could hurt U.S. corporate profits and pressure inflation, potentially upending U.S. interest-rate cut expectations and further weaken the Canadian dollar and China's yuan. "I do think the markets are going to react to this," said Mark Malek at Siebert Financial in New York. "Until now the market has really been on Trump's side, but that could change and the market could challenge him for the first time." Mexico's peso would suffer a near-12-per-cent fall if the U.S. hits the country with 25-per-cent trade tariffs, JPMorgan estimated in a note published on Friday. Analysts also expect some kind of sell-off in stocks and other higher-risk assets when markets reopen today.