The North American trade drama is unfolding against a backdrop of diverging economic performance that gives President Trump leverage in the trade war. Why it matters: The two nations are tightly linked by the trade patterns that the White House threatens to blow up.

President Trump announced potentially crippling tariffs against Canada, only to suspend them for 30 days. What will satisfy him remains unknown.

According to President Sheinbaum, Mexico has cut a deal with the U.S. to delay the tariffs. Under the deal, she said Mexico is sending another 10,000 members of its national guard to the southern border to combat drug traffickers, while the U.S. has agreed to do more to prevent the trafficking of high-powered weapons to Mexico.

President Trump agreed to delay tariffs on Mexico and Canada for a month after both countries pledged to do more to block drugs and migrants.

Canada’s prime minister and Mexico’s president have ordered retaliatory tariffs against Americans, following through with their threats after U.S.

Canada is also pushing to diversify its exports and set itself a target in 2018 of increasing non-U.S. exports by 50% by 2025.