The U.S. recently threatened Mexico with new tariffs unless it did more to stem the tide of immigrants coming from Central America. This “weaponizing” of tariffs for policy ends spooked many, including economists, investors and the Republican controlled Senate. Mexico apparently agreed to do something, taking tariffs off the table temporarily. Meanwhile, the Fed is preparing to leap into the breach, signaling its willingness to cut short term rates in an effort to boost the economy. Apart from these weightier topics, we have informative and fun notes on various topics like “best places” to live, breakthroughs in Alzheimer’s research, a travel advisory, craft chocolate and even a diet book (to offset the chocolate article?). The anti-trust and big technology note is wonkier but has important perhaps crucial implications.
- Weaponizing Tariffs a Risky Game? Using the threat of tariffs to force Mexico to step up its efforts to help manage the immigrant crisis may have succeeded. The details of any commitments have not been disclosed yet. But this type of pressure is potentially and materially disruptive to the economy of the countries involved and makes it difficult, if not impossible, for companies involved with trade to plan. CNBC