The Mexican Peso is rallying this morning following a headline reporting White House trade adviser Peter Navarro comments on CNN that tariffs on Mexico do not have to take effect.
This is somewhat ridiculous as Navarro’s comments are missing the qualifier that this would be the case only if Mexico folds to Trump’s demands.
In fact, Navarro was on Bloomberg TV just minutes before explaining what is required:
Navarro said the administration has a three-part ‘’solution” calling for Mexico to keep asylum seekers in that country, though he didn’t offer specific benchmarks for the country to meet.
“The most important thing is for the Mexican government to take the asylum seekers,” Navarro said in an interview Wednesday on Bloomberg TV in Washington. The Mexican government can also boost security along its southern border with Guatemala, as well as crack down with more checkpoints and other measures on the buses and trains that are ferrying migrants.
“We are taking a strong measure that will change the Mexican calculus” for dealing with illegal immigration, which will be “good for the markets,” said Navarro.
“I’m very bullish right now because what President Trump has done is to change the game.”
The move on Mexico was partly intended to force the hand of Congress to deal with border-security after lawmakers repeatedly failed to act, said Navarro.
So, Navarro’s CNN headline is predicated on all that – will AMLO acquiesce?
While the reaction is modest for now, it appears the market is shifting towards a belief that the tariffs won’t hit.
After Schumer’s dare yesterday, we wouldn’t be so sure.
via ZeroHedge News http://bit.ly/2WpGPpA Tyler Durden