Mexico’s president responded Tuesday to President-elect Donald Trump’s threat to impose tariffs on goods produced in her country with a warning that his plan would cause more inflation and hurt storied American automakers like General Motors and Ford.

Trump’s threatened tariffs on Canada and Mexico may boost inflation in the U.S., but there’s still “huge uncertainty” around macroeconomic forecasts, according to Deutsche Bank Research.

Members of Trump’s transition team have pushed back against the idea that tariffs would spark widespread inflation. Even if some prices rise, those increases would be offset by lower demand elsewhere, Treasury Secretary pick Scott Bessent said in a recent radio interview.