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US To Delay Mexico Tariffs By A Month

The trade war between Mexico and the United States has evidently been delayed. Mexican President Claudia Sheinbaum today indicated that the 25% tariffs that were set to be implemented on February 4 have been delayed for a month.

The delay follows commitments by Mexico to deploy 10,000 national guard troops to the US-Mexico border in an effort to assist in securing it, while also agreeing to work with the United States on “security and business.” The deployment of troops, as per Donald Trump, are intended to “stop the flow of fentanyl, and illegal migrants into [the USA].”

You can read more on the matter here.

What’s going on?

• SEC Lawyers Now Required To Get Commission Approval Before Launching Probes (theDeepDive)

• Ford 'ripping up' Ontario's $100M contract with Elon Musk's Starlink in wake of U.S. tariffs (CBC)

• Here’s How Canada Is Striking Back At Trump’s Tariffs (theDeepDive)

• Canada expected to divert aluminium to Europe after US tariffs (Reuters)

• Americans Prefer Canadian Oil Amid Trade Tensions, Survey Shows (theDeepDive)

• Elon Musk vows to cancel grants after gaining access to US Treasury payment system (FT)

• Trudeau to Name Final Senators Before March Exit (theDeepDive)

• Climate Change to Wipe Away $1.5 Trillion in U.S. Home Values, Study Says (WSJ)

• Trump’s Commerce Pick Accuses Canada Of Treating American Farmers “Horribly” (theDeepDive)

• Ecuador president says new trade deal with Canada finalized (Reuters)

• If Both Carney And Freeland Now Want To Scrap Carbon Tax, Why Was It There In The First Place? (theDeepDive)

What’s the latest?

• Tariffs: Mexico’s planned 25% tariff retaliation is on hold for a month after President Claudia Sheinbaum’s talks with U.S. President Donald Trump, while Canada still faces a 25% tariff on imports and 10% on energy products. Trump’s administration insists the tariffs target illegal drug trafficking, particularly fentanyl, though economists warn they could raise inflation and slow U.S. growth. Financial markets reacted with a modest selloff, and 10-year Treasury yields, currently around 4.5%, could rise to 4.75%-5% if the tariffs persist. Trump also signaled potential tariffs on the European Union, escalating trade tensions further.

• Oil: Oil prices rose on Monday, with Brent crude reaching $76.95 (+1.7%) and WTI climbing to $74.42 (+2.6%) after Trump’s tariffs on Canada, Mexico, and China raised supply concerns. The 25% tariffs on most Canadian and Mexican goods, along with a 10% tariff on Canadian energy, could drive up U.S. gasoline prices, with futures already rising 2.5% to $2.11 per gallon. Analysts expect limited near-term impact on global oil but warn of potential supply disruptions if tariffs persist.

• Crypto: Bitcoin dropped to $91,441.89 overnight before recovering to $95,730.35 (-6.2%), while ether plunged nearly 25% since Friday, reaching $2,592.14, marking its worst three-day loss since November 2022. Nearly a quarter of the top 100 cryptocurrencies lost 20% or more in 24 hours following Trump’s 25% tariffs on Mexican and Canadian imports and 10% on Chinese goods. Coinbase shares fell 5.5% pre-market, and Trump’s cryptocurrency ($TRUMP) slid below $20 after peaking at $73. Analysts cite market-wide risk aversion, with bitcoin holding up better than ether as some investors see it as a "risk-off asset."

• Starlink Contract: Ontario Premier Doug Ford canceled a $100 million contract with Elon Musk’s Starlink and banned U.S. companies from provincial contracts in response to Trump’s 25% tariffs on Canadian goods and 10% on energy. Ontario spends $30 billion annually on procurement, which Ford says U.S. businesses will now lose out on. He warned the tariffs could cost 500,000 Ontario jobs and drive up inflation and interest rates. The move comes amid a snap provincial election on Feb. 27, with opposition leaders criticizing Ford’s handling of the trade war.

• AI: OpenAI and SoftBank formed a 50-50 joint venture to market AI services to Japanese industries, hiring 1,000 people and expecting $3 billion in annual usage from SoftBank’s companies. The partnership aligns with SoftBank’s $100 billion Stargate project and Japan’s push to accelerate AI adoption. OpenAI CEO Sam Altman and SoftBank’s Masayoshi Son met with Japan’s Prime Minister Shigeru Ishiba to discuss AI growth and upcoming talks with Trump. The venture, dubbed “Cristal intelligence,” reflects Son’s vision for AI-driven decision-making and computing expansion.

Canada responds to Trumps tariffs

The stock market and stuff

• National Bank Closes On Acquisition Of Canadian Western Bank (theDeepDive)

• Trump coin leads tumble in meme cryptocurrencies as tariffs rock global markets (CNBC)

• Eldorado Gold: Gold Miner Just Added 17 Years of Production… MARKET MISSED IT! (theDeepDive)

• Meta’s investment in VR and smart glasses on track to top $100bn (FT)

• Is the AI Boom Over? (theDeepDive)

In the juniors

• Logan Energy Raises $43 Million Via Sale Of Royalty, Facility Interest To Topaz (theDeepDive)

• Could Founder Metals Be the Next Great Bear? | Colin Padget (theDeepDive)

• Silver Company Buys A Gold Mine For Nearly A Half Billion | Discovery Silver (theDeepDive)

• Cerrado Gold To Acquire Ascendant Resources In All Stock Transaction (theDeepDive)

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