After a tumultuous day, stock prices dipped but recovered as the dollar lost strength amidst changing tariff announcements. The article discusses the suspension of US tariffs on both Mexico and Canada for 30 days while emphasizing ongoing tensions with China, where tariffs have been enforced. It suggests that tariffs are used as threats to negotiate concessions from other nations rather than being justified as methods to reduce the trade deficit, causing uncertainty in financial markets as stakeholders react to rapid changes.
On tariffs, it seems that what we have here is, by and large, a repeat of what happened recently with the US imposing tariffs on Colombia. Tariffs get imposed, after a game of 'will he or won't he'; the imposition of those tariffs forces the other party to the negotiating table; Trump extracts 'concessions' during those talks; tariffs are subsequently cancelled, or postponed.
This helps to show that tariffs are about negotiating, and about President Trump strong-arming other nations into pushing ahead his political priorities, in this case the border. In reality, tariffs appear to have little-to-nothing to do with trade agreements, or narrowing the US trade deficit, whatever pretenses might be thrown around.
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