Mexico Has Already Buckled To Trump’s Tariffs. Are Canada And China Next?

After threatening tariffs on China, Mexico and Canada, it looks like negotiations for the three countries to take action that President Trump wants is beginning. Mexico was the first to do this.

Mexico’s President Claudia Sheinbaum announced that the US has agreed to put tariffs on Mexico on hold for one month in exchange for Mexico taking measures to fight the flow of fentanyl, and for Mexico putting an extra 10k troops on their border, to stem the flow of illegal immigration.

Canada’s Prime Minister Justin Trudeau is set to speak to Trump this afternoon, with tariffs set to be implemented at midnight. “We’ve had good relationships, but we have to stop fentanyl from coming in, whether I like somebody or not, we have to stop illegal aliens from coming in,” Trump told reporters at the Oval Office.

Trump said that he still like the idea of making Canada the US’ 51st state. While Trump’s tariff threats, and now actions, have been a negotiating tool with Canada, it is still not yet apparent what his quips about Canada becoming our 51st state are intended to accomplish.

America’s greatest geopolitical adversary China is also preparing an opening bid to prevent tariff increases and technology restriction from Trump. If negotiations will yield results that Trump deems acceptable is still up in the air though.

The prospect, and then implementation of, tariffs on China, Mexico and Canada, has spooked markets, and led to stocks falling. News of a potential deal being made, and a protracted trade war possibly being avoided, should give the markets some confidence, at least for now.