With a deal in place to deploy 10,000 Mexican National Guard troops to help close the border to drug dealers, the White House and Mexico’s President agreed to a 30 day pause of tariffs.

Mexican president says tariffs will be put on hold for a month - POLITICO

Saturday, President Trump went through with his threat to impose 25% tariffs on goods from Canada and Mexico and 10% tariffs on goods from China (energy resources from Canada will face only a 10% tariff.) Trump believes these nations are not doing enough to stop illegal immigration and deadly fentanyl pouring into the US. His order says the tariffs will remain in effect until the crisis is alleviated and gives him the authority to expand them in the event of retaliation by those nations.

https://www.breitbart.com/economy/2025/02/01/president-trump-raises-tariffs-on-mexico-canada-china-due-to-drug-crisis/

Oh, and by the way: The EU might be next…

https://redstate.com/bobhoge/2025/02/02/trump-unloads-on-uk-eu-over-unfair-trade-practices-an-atrocity-n2185124

We’re in the unenviable position of having to explain what happens now, and while there’s normally nothing we love more on a Monday morning than a good, long discussion of the ramifications of tariff policy, the truth is that…nobody knows. Trump’s move was like a strong break on a pool table, and no one can predict how all the balls will roll and ricochet off each other. Markets are roiling, commentators and politicians are bloviating, and lobbyists are scrambling as they all try to figure out what’s coming next.

Some are warning that the tariffs will cost Americans an extra $1200 a year. Or they might buy American goods instead, which would boost American wages. Or the tariffs might depress the currency values of other nations and offset the costs. Or a meteor might kill us all tomorrow. Again, nobody knows.

In fact, since the tariffs don’t technically go into effect until midnight Tuesday, it’s possible that Mexico and Canada could negotiate some agreement with Trump to head them off. After all, the President of Panama, following one meeting with new Secretary of State Marco Rubio, agreed to end a key development deal with China that Trump complained gave China too much control over the Panama Canal. Crisis averted?

https://www.foxnews.com/world/panama-pledges-end-key-canal-deal-china-work-us-after-rubio-visit

And Venezuela agreed to take back all its illegal aliens, including Tren de Aragua gang members, and even provide their transportation.

https://townhall.com/tipsheet/leahbarkoukis/2025/02/03/venezuela-agrees-to-take-back-its-people-pay-for-their-return-n2651550

Unfortunately, a simple solution like that doesn’t appear likely with Canada and Mexico because both nations’ leftist leaders reacted in the worst way possible by threatening to escalate a trade war. They apparently think Biden is still in office and will fold like a cheap card table. Canada’s Justin Trudeau even urged Canadians not to drink Florida orange juice, as if Ontario orange juice were a viable alternative.

Frankly, we’re hoping for a quick and amicable settlement. Nobody wants a trade war that will harm the working people of the US, Canada or Mexico. Trump doesn’t really want taxes, he wants an end to the invasion of foreign criminals and drugs that are killing hundreds of thousands of Americans. You’d think we’d all be on the same page with that.

Yet Senate Democrat leader Chuck Schumer attacked Trump by complaining that this might mean higher costs for the guacamole and Mexican beer at Super Bowl parties. He could have said, “To support America and help stop illegal immigration and deadly fentanyl, buy avocados from California and American beer for your Super Bowl parties.” But no, that apparently never crossed his mind, which tells you everything you need to know about Democratic priorities in 2025.

RELATED READ: Jeffrey Carter at Substack on how nobody really knows what’s going to happen with the tariffs, but it likely won't be the gloom and doom you’re hearing. Two points we especially appreciate:

“Establish a consumption tax…That takes away all federal taxes that you can think of.” And…

“The way $DOGE is working, they are uncovering billions and billions of government largesse and waste. We will see budget cuts in the 20% of the budget that is discretionary. Interestingly, if we spent at 2019 levels and took in taxes as we did in 2023, the US Budget would be in surplus and we’d be paying debt down. Ending 100% of all payments to NGOs is a fantastic idea. We will save trillions.” On that subject...