Political uncertainty remains as Trump strikes temporary tariff deals
The impacts of Trump’s long-promised pledge to use tariffs as a political cudgel started to come into focus Monday, even as the president cut last-minute deals.
The impacts of Donald Trump’s long-promised pledge to use tariffs as a political cudgel started to come into focus Monday, even as the president cut last-minute deals with some of the country’s closest allies allowing him to back down from his initial threats.
On Saturday, Trump announced that he would slap broad 25% tariffs on Canada and Mexico, both U.S. allies, and 10% tariffs on China, a political foe. The move was expected, but it still sparked fears about the rising costs of goods across the U.S. economy.
That concern is particularly potent because Trump campaigned heavily on lowering costs and easing inflation. If they are fully implemented, Trump's tariff proposals would affect American households' purchasing power by $1,000 to $1,200 annually, according to the Budget Lab at Yale University.
The first domino to fall came early Monday, when Mexican President Claudia Sheinbaum announced a deal had been reached to delay tariffs on her country by one month, in return for Mexico’s agreeing to beef up its presence at the border with the United States with 10,000 members of its national guard.
It was an effort to placate the Trump administration, which at times has been inconsistent with its messaging about the rationale for tariffs but has consistently said curbing the flow of drug trafficking into the United States is a main focus.
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