the Trump tariffs are now cancelled at least temporarily because Canada and Mexico have both agreed to work to seal the United States borders from illegal drugs and illegal immigration and in exchange Trump has promised to pause the tariffs on Canada and Mexico for at least one month we don't know what's going to happen after one month just yet and we haven't heard what's going to happen with China just yet now things might change after I record this video but at the time of recording this video wait don't know what's going to happen with China just
yet so those tariffs are still on but this gave Wall Street and the stock market a little bit of breathing room because Wall Street does not like uncertainty and over the weekend Trump announced a 25% tariff on Mexico a 25% tariff on Canada and a 10% tariff on China this gave a lot of uncertainty because now investors didn't know what this would mean for the economy is this going to create a recession is this going to make the economy worse is this going to make the inflation problem worse what does this mean for the Federal
Reserve Bank there was a lot of uncertainty that came from this tariff news which is why we saw the stock market Fall hard but then midday on Monday we got the news that Mexico's tariffs would be paused for at least one month because the Mexican president said that they agreed to immediately send 10,000 Mexican soldiers to the Mexico United States border to seal the Border against the illegal trafficking of Fentanyl and other drugs and in exchange the tariffs are paused we saw the market start to go up a little bit they were still down but
they started to go up less once the news of the Mexican tariff PA were passed then a little bit later we got the news that the Canadian tariffs were also going to be paused for similar reasons Justin trudo posted that the proposed tariffs would be paused for at least 30 days while Canada and the United States work together because Canada said that they're going to put together a $1.3 billion plan to help seal the Border against Fentanyl and in exchange the tariffs on Canada would be paused now while this news of tariffs being paused on
Canada and Mexico gave Wall Street and the stock market a little bit of breathing room because it was supposed to provide less uncertainty I think it actually gives a little bit more uncertainty because now the question is what's going to happen after one month are the tariffs going to be restarted or is it going to be more negotiating what's going to happen with the ERS the external Revenue Service what's going to happen with the income tax and what are we going to do now to help continue these conversations without creating a lot of uncertainty in
the stock market and the economy so I want to go over all of that in this video and I also want to talk about Tik Tock because uh Trump also signed an executive order to potentially start the idea of the United States government buying Tik Tock but I'll get to that in just a moment now remember tariffs are a import tax there are many different types of taxes there's property taxes income income taxes sales taxes tariff taxes tariff taxes are a tax put on Goods coming from foreign countries so if you produce products in Mexico
Canada China and you bring those products into the United States you would now if the tariffs are passed have to pay an additional tax to bring that product into the United States so we know that for businesses it would cost you more money to produce your product but then the question is what would happen after that after you pay the more money are you going to a pass that cost down to the consumer meaning raise your prices are you going to B keep your prices the same and just take the hit on your profits or
are you going to see mov your manufacturing maybe mve your manufacturing from Mexico into the United States where the cost of Labor is more expensive but then you don't have to worry about a tariff or do something different so you can start to see how this created uncertainty because on one end there's uncertainty as to how businesses are going to react to this and then there's also uncertainty as to how businesses are going to suffer because of this if it's going to hurt businesses here in the United States or abroad now this is something that
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ultimately then begs the question of well why did we want the tffs in the first place was this just a negotiating tactic or does President Trump actually want to reduce the income tax and replace it with the Tariff tax and this is that uncertainty that I think just became a little bit more of a question mark that we don't know we don't know what's going to happen after one month maybe the tariffs will then get put on again maybe the tariffs will be put on pause maybe the tariffs will be completely canceled we don't know
yet but this is something that we want to pay attention to because ultimately that's going to impact a lot of people if you get a reduction in your income tax or not not to mention that if tariffs do get passed you have to imagine that the prices of certain things would go up and that would impact the everyday person especially during a time where inflation is still a problem because we all know that the Federal Reserve Bank has not solved the inflation problem the average American is still facing the impacts of high inflation and because
of that mortgage rates and the Federal Reserve Bank rates are still high and so there's a lot of uncertainty there and so when it comes to tariffs what we know is that Canada and Mexico's tariffs are paused China's tariffs are TBD to be determined still at the time I'm recording this video we'll see what ends up happening with that but it seems like the tariffs right now were more of a negotiating tactic maybe come March or April tariffs will be enacted and it'll be a different story but we don't know just yet but then we
have what's going on with Tik Tok and if you remember Tik Tock was for a short period banned in the United States and that was when Trump worked to bring Tik Tok back in the United States but only for a temporary period of time because Tik Tok has to be sold to a United States buyer now there's been a lot of talks of who's going to buy Tik Tok will it be Elon Musk will it be somebody else well this is where now we have some more interesting news that maybe it will be the United
States government that owns Tik Tok and what it mean by that is Trump just signed an executive order that directed the United States Treasury and commerce Department to launch a new Sovereign wealth fund and this Sovereign wealth fund could potentially be one of the buyers of Tik Tok and what it says according to the Associated Press is quote we might put that in the Sovereign wealth fund meaning Tik Tock whatever we make or we do a partnership with very wealthy people a lot of options meaning putting some wealthy people together to build the Sovereign wealth
fund which that the United States can then use to invest into other things maybe one of the things that they invest in is Tik Tok the United States as a country does not currently have a sovereign wealth fund there are a lot of countries around the world that do have Sovereign wealth funds the United States does not but there are certain states that do have a sovereign wealth fund so now the United States government is potentially going to be creating their own sovere wealth frund as an investment group and maybe one of the first investments
will be Tik Tock we don't know but that's something you might want to pay attention to as an investor because that could be interesting to see if the United States starts investing in private assets and uh we'll see what that does to markets but what does this mean for you now because there's been a lot of noise a lot of emotion I want to get back to the core and I want to get back to the roots here because at the end of the day your job is to be a smarter investor your job is
to be more financially educated and that starts with you number one being able to dissect the emotions and understand what's really happening number two understand how to find the opportunity now I know I talk about this a lot but I want to emphasize this because it is so important and chances are we're going to continue to see a lot of interesting headlines that are very emotional and the reality is uh you don't want to get caught up in the emotion you want to understand what's happening and so when you read an emotional headline I want
you to actually read the story and then take a deep breath and then read another story to really understand what's happening once you understand what's happening understand that many times things are generally not as bad as they might seem and these are generally not as good as they might seem as well the media tends to overhype things once you understand that that's when you want to be able to find the opportunity and when I say find the opportunity that means that you have to be an investor because the reality is our economic system is designed
to benefit investors period our economic system is designed to reward investors period how do I know that because as a licensed attorney who's not your attorney what I can tell you is that our tax code is designed to benefit investors if you are an employee and you just rely on your W2 tax income well your W2 income has the highest tax rates and the lowest tax breaks when you are an investor you can qualify for either lower tax rates or B higher tax breaks depending on how you earned your money our economic system is designed
to benefit investors we have seen the wealth of investors outpace the wealth of the average worker for decades this is not a new phenomena and this is going to continue to happen in the future so if you want to win in this economic system number one you have to understand that this is happening and then number two do something about it that means become an investor now how do you do that well if you want to become an investor the first thing you got to do is get your money in order have some emergency savings
to protect you in case something bad happens and then number two pay off your high interest debts pay off your credit card debts if you have any Payday Loans pay that off get your high interest debts gone because those things are skinning you alive then create a system where you always put money aside to invest maybe something like a 75 1510 plan which says for every dollar that you earn 75 cents is the maximum that you can spend 15 cents is the minimum that you're investing 10 cents is the minimum that you're saving this where
you're always putting money aside to save and invest first now that you have money aside to save those savings are there to protect you and then that you have money aside to invest this is where you can decide how are you going to invest your money strategy one what I like to call passive investing is you're just investing your money into the United States economy this is something like you investing your money into the S&P 5 500 now look I'm just a random guy on YouTube I can't tell you what to do I'm not a
financial adviser you got to find the right strategy for you but the S&P 500 is a group of the 500 largest companies in the stock market this is a way for you to invest in the American economy there are funds out there ETFs out there that allow you to invest into the S&P 500 so now you could just follow the ABB strategy always be buying every week every two weeks every month you just be buying a little bit more of the economy you buy a little bit more of something like the S&P 500 and then
you don't worry about it you don't worry about tariffs you don't worry about who's in the White House you don't worry about anything going on in the economy you just keep buying no matter what that's strategy one strategy number two is you want to be a little bit more active this is not trading but you want to find more unique opportunities you know that the United States government is in charge of a huge piece of our economy a huge piece of our GDP so you can look at well what is going to shift the United
States government is going to invest in data centers they want to invest in artificial intelligence how does that create an Economic Opportunity how how does that create an investment opportunity the United States government is really advocating for people to return back into the office how does that create an investment opportunity the United States government is very big on deporting illegal immigrants how does that create an investment opportunity the United States government has been talking about investing in space exploration how does that create an investment opportunity studying what's happening being involved in the investor research and
then looking for investment opportunities and doing your research studying financial statements studying companies studying the CEOs that's being more of an active investor because now you're actually doing the fundamental analysis you got to decide what's right for you option number three is you do a hybrid of both that's what I do I have my passive investment strategy I also have my active investment strategy you have to know the game for you going in and blindly copying what some random person on the internet does is a recipe for disaster going in and asking somebody what stock
should I buy is a recipe for disaster because your risk tolerance is different than mine your time Horizon is different than mine your goal is different than mine and so because of that the way that you look at a successful investment is going to be very different than me and that's why it's so important for you to start building your financial education because the reality is everybody gets caught up in the emotion but most people have no idea on how to capitalize on what's Happening that's what I want for you I want you to understand
what's happening I want you to be able to capitalize it because that's where the real wealth is built and with that I will see you on YouTube tomorrow