The threat of a trade war against the United States' nearest neighbors is off for now.

Last week President Donald Trump said he was placing a 25% tariff on goods from North American trading partners Mexico and Canada.

In an executive order, Trump said he was using the United States’ economic leverage to push the countries into better border enforcement. He also said he was seeking to balance out a trade deficit. The announcement led to widespread anxiety and confusion across US borders.

However, yesterday we learned that tariffs on Mexico have been paused for a month after negotiations with Mexico’s president Claudia Sheinbaum, who activated 10,000 national guard members to the US border on Monday.

In a last minute deal, Canada also announced their U.S. tariffs were pausing for 30 days after outgoing Prime Minister Justin Trudeau announced he was appointing a “fentanyl czar” to tackle drug trafficking.

The saga has rankled the historic friendship between the two countries—one with which Washington has deep ties.

Guests:

• Laurie Trautman, director of the Border Policy Research Institute with Western Washington University based in Bellingham
• Joshua McNichols is a reporter here at KUOW and the co-host of “Booming,” a podcast about the local economy

Related Links:

• Booming - An economy podcast from a city that (almost) never stops growing

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