Mexico Avoids Trump’s 25% Tariff — Here’s the Deal (Uncut) 02-03-2025
Mexico Avoids Trump’s 25% Tariff — Here’s the Deal
I want to give you an update on the Trump tariffs against Canada and Mexico. This is as of Monday, February 3rd. Okay, so if you’ve been following my channel, then you probably already know my predictions that I gave last year.
I said that the 10% universal tariffs, they’re not going to happen. The 25% tariffs against Mexico and Canada most likely will not happen. Rather, they’re a negotiating tactic.
And the additional tariffs against China, those will most likely happen. So let’s see how this all plays out. So President Trump signed an order this Saturday that would implement a 25% tariff against Canada and Mexico, which would start this Tuesday, so tomorrow.
And as of Monday, today, here’s the status. So this is what President Trump posted on Truth Social this Monday morning. I just spoke with President Claudia Scheinbaum of Mexico.
Mexico will supply 10,000 Mexican soldiers to the border to stop Fentanyl and illegal migrants. We, the USA, agreed to immediately pause the tariffs for a one-month period. I look forward to participating in those negotiations.
Now, I just want to remind you of this. The last time that President Trump said, the Mexican president said this, this, and that, it just simply wasn’t true. The Mexican president didn’t say that.
But this time what President Trump is saying is true. Okay, so here’s what Mexican president said on X. So this means that they had a good conversation and they’ve reached an agreement about the border and tariffs, but she also says that the USA will also work on stopping the illegal firearms that are coming from the USA to Mexico. Therefore, the 25% tariffs against Mexico, they never happened and it looks like they’re not going to happen.
It was a negotiating tactic, but just so you know, Trump is not doing this just to Canada and Mexico. Trump has already done this to other countries. One example is Colombia.
So in late January, Trump started to send back illegal migrants within the USA back to their respective countries. 160 illegal Colombians were sent back to Colombia in two U.S. military planes. It was 80 per plane.
And the president of Colombia refused to take them back saying that they shouldn’t be sent back on military planes. Now Trump did not like that. Trump wrote, two repatriation flights from the U.S. with illegal criminals were not allowed to land in Colombia.
This order was given by President Gustavo Petro. So President Trump wrote that this jeopardizes the national security and public safety of the USA. And then Trump writes that he will impose emergency 25% tariffs on all Colombian imports and they will be raised to 50%.
And then the president of Colombia accepted Trump’s terms and then the tariffs were called off. So it was a negotiating tactic and it worked. White House press secretary said today’s events make clear to the world that America is respected again and that the expectation is that all other nations of the world to fully cooperate in accepting deportation of their citizens illegally present in the United States of America.
Okay now when it comes to Canada, Trump spoke with Trudeau this Monday morning. They’re both scheduled to speak again this afternoon 3 p.m eastern time. So yes there is the possibility that the same thing is going to happen, you know what happened with Mexico, that there’s going to be a postponement of the tariffs.
So we’ll see. Okay now what can be motivating President Trump to back off these 25% tariffs against Canada and Mexico? So simply it’s the economic damage. So this morning before the tariff pause with Mexico was announced, the stock market was going down hard.
And you know honestly this would have just been the start. And as you know one of the primary ways that Trump measures his success is the performance of the stock market. So I’m sure that President Trump was tracking the pre-market trading and he knew that this was not good.
And another reason to back off tariffs was because of inflation. So tariffs of this magnitude would elevate inflation substantially. So Trump even said that there’s going to be short-term disruption.
And of course one of Trump’s promises is to lower inflation. Now what does President Trump want from Canada? I mean besides you know besides what’s being floated out in the public, you know the fentanyl, drug war, illegal border crossing, trade imbalance, besides that it could be more about business practices with Canada. For example Trump said Canada doesn’t even allow U.S. banks to open or do business there.
What’s that all about? So listen Trump is going to get something out of this negotiation with Canada. We’ll see. I’ll update you.
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