Staff Reports
In a captivating display of trade tactics, President Donald Trump is once again outmaneuvering critics who believed a trade war would send the stock market into a death spiral. The market saw some turbulence on Monday but bounced back with surprising vigor, defying the doomsayers who predicted chaos. It seems the only thing more resilient than the stock market is Trump’s ability to extract concessions without breaking a sweat.
Recent threats to impose hefty 25% tariffs on goods from Mexico and Canada have prompted those two nations to scramble for cover, pledging troops and implementing border security measures. Trump’s “friendly chat” with Mexican President Claudia Sheinbaum resulted in an agreement for 10,000 troops to patrol the border against drug traffickers and illegal migrants. Meanwhile, the markets seemed unfazed by the immediate threats and instead reflected a cautious optimism about political theatrics that have become log of the Trump presidency.
Trump’s game of trade "chicken" defies market worries, extracts concessions https://t.co/ep0BtBheE6
— Just the News (@JustTheNews) February 4, 2025
While conversations with Sheinbaum were uplifting, Trump turned his sights north as well, chatting with Justin Trudeau about pulling some of the same strings. Trudeau was swift to jump on the bandwagon, conceding to delay the tariffs for a whole month, presumably to give himself some breathing room while implementing a hefty $1.3 billion border plan. This resembles a robust play from Canada, which suddenly seems to want to play nice, perhaps realizing that Trump doesn’t bluff when it comes to his negotiating style.
Reactions from insiders suggest that both Canada and Mexico are rightly scared of what a serious Trump could bring to the table. Trump’s critics, whether from his own party or the left, may need to face the music: a decisive leader with a penchant for bold strategies is rattling cages and getting tangible results. Former National Security Chief Fred Fleitz shared insights that underscored a crucial point: leaders in Canada and Mexico are acutely aware of Trump’s reputation for follow-through. This is important news for Americans who prefer negotiation over needless conflict.
In a remarkable twist, polling data reflects a shift in public sentiment toward tariffs being a pragmatic negotiating tool rather than just a blunt instrument. Surprisingly, voters appear to support this approach to securing border security measures, with a poll revealing that over half of the electorate backs the strategy, even if they are not entirely convinced of tariffs’ benefits for the economy. The premise that economic leverage can secure concessions from neighboring nations seems to be gaining traction and indicates growing public trust in Trump’s economic savvy.
Despite what some predicted would be a disaster for major stock indices, the aftermath of Trump’s latest maneuver shows resilience in the markets. The Dow took a minor hit but quickly rebounded from its initial downturn, while other indices followed suit. The ability of the stock market to recover stands as a testament to economic fundamentals prevailing over mere predictions of doom. The political chess match continues, and as markets catch up, voters will be watching closely to see just how far Trump’s negotiating prowess can go.
