Trump Talks Tough and then Takes a Breather

Things heated up in the early week. Trump and Mexico’s President Claudia Sheinbaum already agreed to step back from imposing tariffs on the other’s goods. This happened in a month after a quick phone chat. Sheinbaum will send 10, 000 troops to the region to halt drugs and illegal immigrants from crossing north. Just a few days prior, the United States threw a punch at its largest trading partners. In one swoop, Trump slapped a hefty 25% tariff on Mexico and Canada, 10% on China. Canada and China, didn’t wait to react, they made plans to fight back with their own taxes. Trump might be setting up more tariffs on top of that. Trump’s tariff celebration needs to be stopped. It will probably cost Americans more. Hardly is it remotely an isolated scenario! Earlier in the week, the economy took a dive. The traders didn’t mind this, they expected it. Later that day, the numbers started looking better.

Most politicians and economists view the tariffs with disapproval. They estimate that Canada and Mexico, plus the US, will all take an economic hit. Banks in Mexico and our neighbor to the north will probably shut down or experience some severely bad economic times. Mexico and Trump are meeting to work things out. Trump himself will join in and will be meeting with Mexico's President and top officials to find a solution. Washington and Mexico are working to find a solution to reduce movement of drugs and illegal immigrants to the US Maine Sen. Susan Collins is a constant bulwark of opposition to Trump. He suggested a phone session with Canadian Prime Minister Justin Trudeau on this issue. Trudeau pushed back against Trump’s tariff blitz on Mexico and Canada. He was supposed to meet with Trump earlier that day. The President of Canada is fully aware of the economic damage Trump's tariffs could bring. The price of goods will definitely take a hit. The recent talk on tariffs has been a rough transition for our economy. The uncertainty is palpable.

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