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Short-term gains

4 8
11.02.2025

The recent 30-day suspension of American tariffs on Mexican and Canadian goods underscores the unpredictability of trade policy under US President Donald Trump. His high-stakes approach to economic negotiations ~ leveraging American economic might to extract concessions ~ has once again yielded short-term gains. However, the broader consequences of this approach, both politically and economically, remain uncertain. President Trump can claim a victory by securing commitments from Mexico and Canada on border security and fentanyl trafficking, key issues for his administration.

By positioning himself as a tough negotiator, he reinforces his image as a leader willing to use economic pressure to achieve domestic policy goals. However, his threats of sweeping tariffs have introduced a level of instability that could have lasting repercussions. For Canada, the tariff delay provides temporary relief, especially as its leadership faces political transitions. Border........

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