Trump’s Tariff Harm Mexico

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In today edition we will talk about

• Trump’s Tariff Threats Could Harm Mexico, Canada, and the U.S.

• US Home Sales Hit Lowest Level Since 1995

• Target Scales Back DEI Programs Amid Political Pressure

• Elon Musk Targets the Penny for Cost-Cutting

Trump’s Tariff Threats Could Harm Mexico, Canada, and the U.S.

A Trade War Could Spike Prices, Hurt Economies, and Disrupt Daily Life

Former President Donald Trump is threatening to impose 25% tariffs on all goods from Canada and Mexico, claiming they’re not doing enough to stop drugs and migrants from entering the U.S. This move could trigger a trade war, sending the economies of Canada and Mexico into recession and raising prices for American consumers on cars, gasoline, and other goods.

Economists warn these tariffs would severely damage North America's interconnected economies. For example, car prices in the U.S. could rise by $3,000 due to supply chain disruptions, while gas prices could jump by 20–50 cents per gallon in certain regions.

Although some experts think Trump might not follow through, the risk of retaliation from Canada and Mexico looms. Such measures could worsen economic conditions and even drive more migrants to the U.S., contradicting Trump's stated goals. Businesses and investors remain on edge, waiting to see if Trump’s threats turn into action.

US Home Sales Hit Lowest Level Since 1995

High Prices, Rising Mortgage Rates, and Low Inventory Squeeze Buyers

In 2024, U.S. home sales dropped to just 4.06 million, the lowest since 1995, as soaring home prices and high mortgage rates made buying difficult. The average 30-year fixed mortgage rate hovered around 7%, while the median home price climbed to a record $407,500.

Despite a slight recovery in December, the housing market faces continued challenges in 2025 due to high borrowing costs, a 3.7 million housing unit shortage, and low inventory. Many homeowners are staying put, locked into lower mortgage rates, while builders face rising costs and regulatory hurdles.

Experts expect limited relief this year as prices and borrowing costs remain elevated.

Target Scales Back DEI Programs Amid Political Pressure

Company Joins Others in Reducing Diversity Efforts

Target has announced it will end its three-year diversity, equity, and inclusion (DEI) goals, following pressure from right-wing activists and lawsuits. The retailer will stop participating in diversity surveys and is reevaluating partnerships and supplier diversity efforts.

This move reflects a broader trend among companies like Amazon, Meta, and Walmart, which are reducing DEI initiatives. However, some, like Costco and Apple, remain committed to diversity, citing its positive impact on business and employee engagement. Target says it will still focus on fostering inclusion but aims to align with the changing political climate.

Elon Musk Targets the Penny for Cost-Cutting

Calls to Eliminate the Penny Gain Momentum

Elon Musk’s Department of Government Efficiency is focusing on the costly US penny. Musk shared on X that making a single penny costs over 3 cents, totaling $179 million for taxpayers in 2023. With rising metal costs, the penny’s production price has soared, leading to renewed calls for its elimination.

Advocates argue that pennies are rarely used and mostly stored away. Eliminating them could save businesses time, especially for cash transactions at stores. While discussions about ditching the penny have existed for decades, Musk's push adds new momentum under the Trump administration’s government efficiency efforts.

Calls to Eliminate the Penny Gain Momentum

Elon Musk’s Department of Government Efficiency is focusing on the costly US penny. Musk shared on X that making a single penny costs over 3 cents, totaling $179 million for taxpayers in 2023. With rising metal costs, the penny’s production price has soared, leading to renewed calls for its elimination.

Advocates argue that pennies are rarely used and mostly stored away. Eliminating them could save businesses time, especially for cash transactions at stores. While discussions about ditching the penny have existed for decades, Musk's push adds new momentum under the Trump administration’s government efficiency efforts.

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