The Fog of Trade War

U.S.-Mexico relations are playing out exactly as expected under the new administration. In keeping with his campaign promise, U.S. President Donald Trump officially ordered the construction of a border wall between the two countries and — again keeping with his campaign promise — insisted that Mexico pay for it. The mechanism by which Mexico would do so, according to a statement made by a Trump spokesman Jan. 26, is a 20 percent tariff on Mexican imports. (The spokesman later recanted the statement.) Mexican President Enrique Pena Nieto canceled his meeting with Trump scheduled to take place Jan. 31, leaving little but an air of uncertainty between the trade relations of these North American powers. The two leaders reportedly spoke by phone Jan. 27, but it is still unclear what was discussed.