Mexico and the United States reached a last-minute agreement to postpone the implementation of tariffs that were set to take effect today.
The agreement reached between Mexican President Claudia Sheinbaum and the Trump administration postpones a 25 percent tariff increase for a month in exchange for Mexico increasing its border security efforts.
Following the development, the Bitcoin price experienced a sudden increase and climbed above $ 98,000. BTC ($98,824.87) had fallen below $ 92,000 during the day.
Chart showing the recent recovery in BTC price.As part of the deal, Mexico will deploy 10,000 troops along the U.S.-Mexico border. According to President Donald Trump, the forces will be tasked with preventing the flow of immigrants and illegal drugs, including fentanyl, into the U.S. The U.S. also pledged to help Mexico reduce the flow of firearms across the border, a problem Mexican authorities have long sought to address.
The deal comes amid growing concerns that sweeping tariffs could destabilize the global economy. President Trump’s weekend imposition of 25 percent tariffs on Canadian imports and 10 percent on Chinese goods caused volatility in markets and a backlash from trading partners.
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Economists warn that the tariffs, which cover more than a third of U.S. imports, could lead to increased costs for American consumers. President Trump has argued that foreign countries will shoulder the financial burden, while business groups and trade analysts say U.S. companies and households will ultimately feel the impact.
In response to the U.S. tariffs, Canada announced countermeasures, announcing a list of American goods subject to a 25 percent tax starting Tuesday. The tariffs will initially affect $20 billion worth of U.S. imports, with a second wave expected to target another $86 billion in the coming weeks.
China, meanwhile, has vowed to take countermeasures, including filing a complaint with the World Trade Organization. Chinese officials have vowed to defend their trade interests against the new tariffs, further escalating tensions between the two economic superpowers.
In an interview with the BBC, President Trump suggested that the European Union could be next on the tariff agenda, saying measures on European imports were “definitely happening” and could be implemented “very soon.” European leaders have warned that such a move could destabilize economies on both sides of the Atlantic and raise concerns about a wider trade conflict.
*This is not investment advice.
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