This Monday, tensions between the United States and Mexico subsided as U.S President Donald Trump chose not to inflict tariffs on Mexican goods. This puts an end to at least one front of the multi-faceted trade dispute. As a result, U.S. stocks experienced significant gains. At the same time, an abundance of freshly publicized acquisitions and mergers have started to attract the attention of investors. The Market closed with the S&P 500 index rising 0.47%, or 13.39 points and with this, the index marked its longest successful run since April 8.

Last Friday, according to Trump, the United States will be “indefinitely” ceasing their intention of imposing a 5% tariff on Mexican goods. This as in exchange for Mexico implementing stronger enforcement when it comes to immigration from their country to the U.S. The president also stated that Mexico has complied and will “immediately begin buying large quantities of agricultural products” from U.S. farmers, who have experienced a hard time during the protectionist actions of the administration. After this statement on Monday morning, the Mexican peso experienced gains against the U.S dollar. Moreover, the positive conclusion of these trade tensions allows for further advancement for the trade deal between the U.S, Mexico and Canada (USMCA).

Nevertheless, the Trump administration still requires the democratic lawmakers to support the deal, who have been oppositional when it comes to particular points of the deal, including how the measures will be implemented.

Jason Pride, chief investment officer of private wealth firm Glenmeade, stated in a note that regardless of the tariffs being off the shelf for now, there are still threats to the economy which rest on further trade advancements, including tariffs on goods from China and on European autos, which will have a great impact on the future growth of the economy.

By: Cyril Latrice Cajanding