Mexico and Canada Reach Last-Minute Deal With Trump to Avert Trade War

Published On Feb 3, 2025, 6:04 PM

President Trump has postponed proposed tariffs on Canada and Mexico, which were slated to be levied after both countries promised to enhance efforts to stop drugs and migration into the U.S. This comes as Trump prepares to impose a 10 percent tariff on China, signaling a potential escalation in trade tensions. The postponement highlights the impact tariffs can have on significant trading partners and may help stabilize the economic situation in the short term. However, ongoing discussions with China suggest that broader trade conflicts remain a concern.

Stock Forecasts

SPY

Neutral

Given the temporary postponement of tariffs on Canada and Mexico, and mixed signals about the situation with China, it may bring some stability to related industries short term. However, continued tariff threats generally create uncertainty in the market, especially for sectors reliant on imports or exports.

Related News

US stock futures pointed to sharp losses for the major indexes, as Wall Street showed the effects of President Donald Trump’s announcement of tariffs.

AAPL
TSLA
XLV
SPY

Yahoo Finance will chronicle the latest news and updates on Trump's tariffs — from the threats to the eventual policy.

SPY
XLF

US stock futures pointed to sharp losses for the major indexes, as Wall Street showed the effects of President Donald Trump’s announcement of tariffs.

AAPL
XLY
F
NVDA
SPY