Opposing signals from Canada and Mexico around tariff deadline

Earlier today, Mexico’s Sheinbaum expressed confidence about a trade deal with the US and she’s now doubled down, saying there have been no trade conflicts with US. that could derail a possible deal ahead of tariff deadline next week.

Meanwhile, the FT is out with a report saying Peter Navarro is pushing to oust Canada from the Five Eyes spying group. Navarro is Trump advisor for trade and manufacturing so it’s not a security issue but a leverage issue. Canada isn’t giving the US what it wants, which I believe is an earlier re-opening of the USMCA negotiations but it could be something else.

As for Navarro’s idea, it’s unclear if it’s gained traction with Trump but it is being discussed, the FT reports.

I just don’t see Trudeau giving much. He’s already resigned so he really has nothing to lose and he’s regained some popularity by standing up to Trump.

This article was written by Adam Button at www.forexlive.com.