Predictions that US would remain a source of uncertainty in the global economy—particularly as it continues its heavy use of tariffs to achieve policy goals—have largely paid true over the last month. Trade talks between the US and China have broken down, with both sides accusing the other of backtracking on key promises. The US continues to push sanctions on Venezuela and associated entities, and has escalated its rhetoric against Iran. The US has also put another hurdle in front of the upcoming ratification of the USMCA, its new NAFTA-replacing free trade deal. After ceding to calls from Canada and Mexico to remove steel and aluminium tariffs against them, the US then pivoted sharply and announced a 25% tariff on all Mexican goods, to be implemented in 5% increments until the US is satisfied that Mexico is taking measures to prevent migration across the US's southern border. It appears likely that Mexico will, as with previous tariffs, refuse to ratify the new deal until these measures are lifted—something that could take some time.
展开▼
