Trump and Mexico’s President agree to postpone tariffs for one month following discussions

The U.S. and Mexico have agreed to delay a 25% tariff on Mexican imports for one month after Mexico agreed to increase security at its border to address drug trafficking. This move has averted a potential increase in prices for U.S. consumers and potential economic repercussions for both countries. President Trump also signed an executive order to impose similar tariffs on goods coming into the U.S. from Canada. The resulting retaliatory tariffs threatened to trigger an economic slowdown and raised concerns among economists and business executives. Despite the initial rationale being fentanyl and immigration, Trump later cited a trade deficit with the three countries and encouraged companies to manufacture products in America. Trump also shared on social media that the U.S. is subsidizing Canada and suggested that Canada should become the 51st state. Officials reiterated that the tariffs are about drugs and immigration and accused Canada of misunderstanding the intention behind them. The White House cited the International Emergency Economic Powers Act as justification for the move. The situation remains fluid, and negotiations are ongoing between the U.S., Mexico, and Canada.

Photo credit
www.nbcnews.com