Trump Caves On Mexican Tariffs In Exchange For Border Theater

Oh what a Monday we’re having here in America, in Trump II, the disaster movie sequel to Trump I. You remember, “first as tragedy, then as farce?” Trump II is the reverse, first farce, then tragedy — not that we didn’t have plenty of tragedy in Trump I where 1.1 million Americans died and conspiracy theorists made bank demonizing the gentle soul who is the world’s leading epidemiologist, Anthony Fauci. But Trump II is pure disaster movie fare, think of the Towering Inferno, Cave In, The Swarm. So far Trump has brought us #TrumpCrash (trending as we speak on Musk’s social media platform) #FarmersPanic (about no water in California for summer crops) #TheDow, #SocialSecurity. Oh yes, friends, we have no lack of spectacle.

So as the market continues to tank, with the Dow down 600 points at last reckoning, Trump took a meeting with Claudia Sheinbaum of Mexico. There is a one month hiatus on the tariffs now, and my spidey sense says that that will be extended. This is like Panama, the tariffs turned into a confrontation and then both sides backed down — and since the market is crashing this morning, it was a good idea to pause the tariffs and staunch the financial bleeding. Axios:

Why it matters: The deal temporarily averts a 25% levy with huge economic implications for both countries.

• It also marks the second time in this presidency Trump vowed a massive and disruptive tariff on a long-time ally, only to quickly freeze it after gaining what appeared to be limited concessions.

By the numbers: U.S. stock markets slashed their losses on the news of a deal, which includes Mexico sending 10,000 troops to the border to help control the flow of drugs.

• The dollar turned negative against the Mexican peso, and oil gave up its gains to flatten for the day.

Catch up quick: Trump signed the tariff orders Saturday — 25% on Canada and Mexico (10% on energy), and 10% on China as well.

• They were due to take effect at 12:01 a.m. ET Tuesday.

Between the lines: Sheinbaum’s move came as little surprise to White House officials, one of whom told Axios on Sunday that a show of force at the border would have a positive impact on Trump.

• “If she sends troops, it’s a sign Mexico takes the president seriously,” the official said.

It’s a sign that President Sheinbaum is willing to accomodate the lunatic in the White House with theater at the border. This is all about spectacle, remember? And Trump did this before back in 2019.

Trump announced on Monday morning that 25% tariffs that were to take effect at midnight Tuesday, announced the previous Saturday, would be suspended while his he and his advisers attempt to "achieve a 'deal.'" pic.twitter.com/GuHkRcTyr0

— Nick Timiraos (@NickTimiraos) February 3, 2025

Again, political theater and spectacle. I hope the Canadians take the hint and send some mounties to the border to hang out and eat poutine. That will probably appease Trump and end that portion of this stupid trade war. Meanwhile, speaking of spectacle and the border…..

Kristi Noem is at the border. pic.twitter.com/WsI9B6twLe

— Ron Filipkowski (@RonFilipkowski) February 3, 2025

Does Nancy Mace ride horses, I wonder? Because she will see this and go nuts. She cannot have the attention off herself and on anybody else for too long. Or, maybe she’ll run to the floor of the Stock Exchange and start trading. Something will happen with her, mark my words. Spectacle and Mace beating her head against the wall until she figures out how to get attention are two constants in the Trumpverse.

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