This news exemplifies Trump's clever strategy perfectly. His tariff threats were always real, but only to the extent that Mexico and Canada refused to make economic and border security changes. As both countries have begun to make changes, Trump is switching to the carrot approach after months of using the stick. Trump understands that free trade is good so long as other countries aren't unfairly advantaged by it.
Trump's tariffs aren't a brilliant tactic but a flawed idea he's now rethinking. After promising to boost working-class incomes, his tariffs on Canada, Mexico, and China — which were effectively a tax hike on Americans — have sparked retaliation, tanked stocks, and raised prices on essential goods. Facing pushback from his own party and businesses, Trump's chaotic cat-and-mouse games show he's realizing tariffs hurt more than they help.