by Martin Armstrong at Armstrong Economics
The Mexican peso and Canadian dollar both saw notable declines right before the 25% tariffs were implemented. The US markets fell in early trading as CONFIDENCE rapidly declined with these tariff threats. We saw the Dow drop over 650 points early Monday, only to turn around after it was stated that tariffs on Mexico would be postponed. The Dow dropped so quickly simply because foreign capital began leaving the US markets. Canada and China plan to take matters to international court. Mexico has decided to placate Trump to buy time, sending 10,000 Mexican troops to secure the US southern border.
“It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican soldiers on the border separating Mexico and the United States,” Trump said in a social media post on Truth Social. “These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our country.” Mexico’s President Claudia Sheinbaum has asked Trump to delay tariffs by one month.
The same exact situation happened under the last Mexican administration of Andrés Manuel López Obrador. Trump threatened tariffs and Obrador sent the National Guard to the border. Yet, this president seems less likely to work alongside Trump for long.
Now in 2024, Mexico sent 78% of ALL their exports to the United States. That’s an astounding…
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