Trump Strikes Deals with Canada and Mexico on Tariffs: A Calculated Move?
US President Donald Trump is showcasing his negotiation skills by leveraging tariff threats to extract concessions from key trading partners. In a swift maneuver, Canada and Mexico have agreed to enhance border security in exchange for a temporary 30-day reprieve on a new 25% tariff on their goods. As Rajiv Biswas of Asia-Pacific Economics notes, this tactic has yielded results for Trump early in his second term. However, while the deals may seem beneficial in the short-term, analysts express concern over the long-term repercussions on international trade norms and relationships. In a related development, China remains firmly in the crosshairs as a 10% tariff on its goods was implemented, prompting immediate retaliatory tariffs on American exports. The geopolitical landscape continues to shift as Trump’s approach raises questions about the future of trade agreements in a volatile global market.