Stocks, Peso Spike On Report US Considers Delaying Mexican Tariffs

Did Trump just fold (again)?

The peso and US stocks spiked on a Bloomberg headline stating that:

  • U.S. WEIGHS DELAYING MEXICO TARIFFS AS TIME FOR DEAL RUNS SHORT

Bloomberg reports, according to people familiar with the matter, the U.S. is considering delaying President Donald Trump’s threatened tariffs on Mexico as talks continue over stemming the flow of undocumented migrants and illegal drugs from Central America.

But, shortly after that, another headline hit:

  • *U.S. TARIFFS ON MEXICO GOING INTO EFFECT MONDAY STILL POSSIBLE

One U.S. official said the most likely outcome is still that a 5% tariff goes into effect. But the official said U.S. negotiators recognize that Mexico is taking the talks seriously and working quickly to address Trump’s concerns.

Markets retraced a little...

And stocks...