#USConsumerConfidence

White House Retracts Colombia Tariff Threat After Immigration Agreement

Blockworks

Jan 28, 2025

The White House has retracted its 25% tariff threat against Colombia after the country agreed to terms regarding the acceptance of newly deported immigrants. This move has helped Colombia avoid a potential trade war with the US. Tariffs have become a key tool in Trump's geopolitical strategy, although no increases have been seen yet on Canadian, Mexican, or Chinese tariffs. Economists and the Federal Reserve are assessing the potential impact on domestic prices, with the Fed likely to adopt a 'wait and see' approach. The central bank's options include raising interest rates or maintaining current rates despite temporary price increases. The market is closely watching Fed Chair Jerome Powell's response to tariff-related questions in an upcoming press conference.