President Donald Trump recently acted on his long-held promise to impose steep tariffs on Mexico and Canada. The tariffs were partially imposed to pressure the countries to tighten their borders. However, tariffs were also the only plan that Trump had for the economy. Even when Americans warned him such measures would raise prices, he continued advocating for tariffs throughout his entire presidential campaign. As soon as he set 25% tariffs on Mexico and Canada to go into effect, the countries responded with threats of retaliatory tariffs, and the stock market index, DOW, plunged over 600 points. A trade war was narrowly avoided when Trump and Mexico reached a deal. Trump would hold off on tariffs for a month while Mexico sent 10,000 troops to secure its side of the border.
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