Trade war postponed: The US and Mexico reach a compromise.
The US and Mexico have reached an agreement to temporarily suspend the implementation of tariffs
US President Donald Trump and Mexican President Claudia Sheinbaum announced on social media that they have reached an agreement to temporarily suspend the implementation of tariffs. According to Axios, this decision will help avoid a 25 percent tariff, which could have serious economic consequences for both countries. This is already the second Time Trump has announced the introduction of tariffs and then freezes it after receiving some concessions.
As part of the agreement, Mexico will send 10,000 troops to the border to jointly combat drug trafficking. This has led to a weakening of the dollar against the Mexican peso as well as a drop in oil prices, which stabilized again during the day.
On Saturday, Trump signed orders regarding tariffs on Canada, Mexico, and China. However, tariffs on Canada and China are still planned to be introduced. Trump stated that he had spoken with Canadian Prime Minister Justin Trudeau and intends to meet with him again later.
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