Trump administration considering compromise on tariffs with Canada and Mexico
The Trump administration is considering compromising on lifting tariffs on Canada and Mexico if they address fentanyl flows into the U.S. The administration is looking to find a middle ground and exempt some categories from tariffs, like autos. Market reaction was tempered by signs of a slowdown in the U.S. economy.
Key Points
- Compromise on tariffs based on addressing fentanyl flows
- Consideration for exempting certain categories from tariffs
- Signs of economic slowdown affecting market reactions
Pros
- Potential for improved trade relations with Canada and Mexico
- Exempting certain categories from tariffs could benefit specific industries
Cons
- Uncertainty around tariffs impacting businesses and consumers
- Market reaction influenced by signs of economic slowdown