President Donald Trump has temporarily averted a trade war with at least two of America’s top three trade partners…

Source: Al Jazeera

The saga began on February 1, 2025, when Trump announced significant new tariffs on imports from Mexico, Canada and China, citing national security concerns related to drug trafficking and illegal immigration.

Your Rundown for Wednesday, February 5, 2025...

Trump’s Unwinnable War Is Still Worth Fighting

Trump’s initial plan includes a 25% tariff on imports from Mexico and Canada, with a 10% tariff on Canadian energy products and an additional 10% tariff on Chinese goods.

And the president invoked the International Emergency Economic Powers Act, declaring a national emergency due to the “significant threat posed by illegal immigrants and lethal drugs, including fentanyl.”

“It is my duty as President to ensure the safety of all Americans,” Trump says, emphasizing his focus on fulfilling campaign promises.

• President Trump aims, in fact, to hold Mexico, Canada and China accountable for their alleged failure to stem the flow of contraband drugs and precursor chemicals used in fentanyl production into the U.S.

But Trump agreed to delay the tariffs for one month following last-minute negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.

The decision came after both leaders committed to enhance border security in order to combat drug trafficking and illegal immigration. (There’s been no reprieve for China, by the way; tariffs went into effect yesterday.)

That said, Trump’s announcement on Saturday sent shockwaves through the global economy: Stock prices declined on Monday morning as analysts warned of potential price hikes and economic slowdown.

Economists warn that implementing such tariffs could lead to increased costs for American consumers and businesses, many of whom are already grappling with high inflation.

Plus, the trading relationship between the U.S., Mexico and Canada supports over 17 million jobs.

The next month will be crucial in determining whether a long-term solution can be reached or if America's top trade partners will face unprecedented tariffs, potentially reshaping the global economic landscape.

And while it's true that Trump’s war against fentanyl might be unwinnable in the traditional sense — dealers will find alternative routes  — it’s still a battle worth fighting.

Admittedly, the root causes of drug use are challenging to address. But combatting the influx of fentanyl could 1) save lives and 2) buy time for real solutions.

Market Rundown for Wednesday, Feb. 5, 2025

S&P 500 futures are down 0.45% to 6,035.

Oil is down 1.15% to $71.85 for a barrel of WTI.

The price of gold’s at an all-time high: up 0.65% to $2,895.60 per ounce.

But Bitcoin’s down 0.50% to $98,200.