Featured image: Claudia Sheinbaum and Donald Trump
I’m sure you are all aware of the Tariff war taking place in North America as President Trump works to secure the borders of our country. He ordered that tariffs of 25% be implemented on imports from both of our neighbors, Canada and Mexico, to get them to secure their sides of the border.
Well, the day before the levy was to go into Force, leftist Mexican President Claudia Sheinbaum has blinked. She agreed to move some 10,000 troops to the border area to help with security there.
The agreement between Sheinbaum and Trump pauses the implementation of the tariffs. This short term agreement allows for more structured and detailed negotiations to occur. Hopefully this will lead to a permanent solution to the porous southern Border.
The tariffs would have wreaked havoc with the Mexican economy. The US is Mexico’s largest trade partner with some $798 billion in bilateral trade. Last year, Mexico exported some $500.7 billion worth of goods to the US. That total is around 80% of all of Mexico’s exports. It’s also around a quarter of the total Mexican GDP of $1.8 trillion.
I hope that Canadian Premier Justin Trudeau has as effective of advisors around him as Sheinbaum does. We all know he isn’t smart enough to figure this kind of thing out on his own. The Canadian dollar has already started to plummet in value vs the US dollar. The exchange rate has declined by 1.432% compared to its value 7 days ago.