Trump ups the ante on tariffs, vowing massive taxes on goods from Mexico, Canada and China on Day 1

https://www.aol.com/news/tr...owing-001501327.html

quote President-elect Donald Trump on Monday promised massive hikes in tariffs on goods coming from Mexico, Canada and China starting on the first day of his administration. The move, Trump said, will be in retaliation for illegal immigration and “crime and drugs” coming across the border. “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump posted on his Truth Social platform. “This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump said America’s neighbors can “easily solve this long simmering problem.” Similarly, Trump said that China will face higher tariffs on its goods – by 10% above any existing tariffs – until it prevents the flow of illegal drugs into the United States. “I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail,” Trump posted on Truth Social. The president-elect claimed in the post that Chinese officials promised him the country would execute drug dealers caught funneling drugs into the United States but “never followed through.” CNN has reached out to the embassies of Mexico, Canada and China for comment. After the announcement, the Canadian dollar fell 1.2% against the US dollar, and the Mexican peso fell 2% against the dollar. China’s yuan, though controlled by the government, traded higher – above 7.6% – in offshore markets. US stock futures, which were higher before Trump’s announcement, fell somewhat – Dow futures were down 160 points, or 0.3%. Nasdaq futures were 0.4% lower, and the broader S&P 500 was also down 0.4%. US Treasury bond prices fell. The United States’ top import from Canada is oil, which reached a record 4.3 million barrels per day in July, according to the US Energy Information Administration. America also imports cars, machinery and other various commodities, plastics and wood from Canada, according to the United Nations’ Comtrade. America gets the majority of its cars and car parts from Mexico, which surpassed China as the top exporter to the US in 2023, according to trade data released by the Commerce Department earlier this year. Mexico is also a major supplier of electronics, machinery, oil and optical apparatus, and a significant amount of furniture and alcohol comes from the country into the United States. The United States imports a significant amount of electronics from China, in addition to machinery, toys, games, sports equipment, furniture and plastics. During Trump’s first term, CNN reported that he implemented tariffs on about $380 billion worth of goods that applied to thousands of Chinese-made products, including baseball hats, luggage, bicycles, TVs and sneakers. The Trump tariffs also hit foreign steel, aluminum, washing machines and solar panels. Many US imports from Canada and Mexico are exempted from tariffs because of the USMCA trade agreement between the three nations that Trump pushed for during his first administration. It’s not clear how Trump would plan to implement the proposed tariffs without violating the USMCA. Trump campaigned on using tariffs as a cudgel against foreign countries – as he did in his first administration – to grow domestic manufacturing while increasing tax revenue to pay for large revenue gaps that his proposed tax cut plan would create. Tariffs effectively serve as a tax on goods imported to the United States. Although Trump has repeatedly said targeted foreign countries pay the tariffs, they are in fact paid by companies that purchase the imported goods – and those costs are typically passed onto American consumers. Most mainstream economists believe tariffs will be inflationary, and the Peterson Institute for International Economics has estimated Trump’s proposed tariffs would cost the typical US household over $2,600 a year. Scott Bessent, Trump’s pick for Treasury secretary, has said that tariffs would not add to inflation if they are implemented correctly. Wall Street cheered Bessent’s appointment, because he is widely expected to roll out tariffs gradually. Although Bessent, if confirmed by the Senate, will be partly responsible for implementing the tariffs, in coordination with the Commerce secretary and US Trade Representative, Trump as president would wield significant power to levy tariffs with the stroke of a pen. He did just that when he was last in the White House, placing large tariffs on goods, primarily from China. The problem with tariffs is that they often result in retaliatory actions by targeted countries, kicking off a trade war – and that’s exactly what happened during Trump’s first term. That blunted the tariffs’ effect on domestic manufacturing, because manufacturers’ goods became less attractive to overseas buyers. Trump has promised significantly larger tariffs during his second term. Although he continues to discuss many different numbers, he has proposed a tariff upward of 60% on all Chinese goods, as well as an across-the-board tariff of either 10% or 20% on all other imports into the US.

Well, this should be interesting.

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Rams
Learning most of life's lessons the hard way. .
You are only young once but, you can be immature indefinitely.

quote Tariffs effectively serve as a tax on goods imported to the United States. Although Trump has repeatedly said targeted foreign countries pay the tariffs, they are in fact paid by companies that purchase the imported goods – and those costs are typically passed onto American consumers. Most mainstream economists believe tariffs will be inflationary, and the Peterson Institute for International Economics has estimated Trump’s proposed tariffs would cost the typical US household over $2,600 a year.

Personally speaking, we all knew there was going to be a price to pay for the Biden/Harris Administration policies. I see this as one of them. This transition will not be pain free for us and it most surely won't be pain free for any of the affected countries.

quote Originally posted by 82-T/A [At Work]: I guarantee that Mexico folds, and folds quickly. They know their economy relies on the United States... all the companies that produce in Mexico are going to pressure the president. It doesn't matter how socialist and liberal the Mexican president is, they're going to have to respond. The peso hasn't been great, but damn it's dropping today: https://finance.yahoo.com/n...lumps-002431003.html

Just my opinion but, Mexico could have stopped or at least slowed down the border issues long ago but, due to a weak Biden/Harris Administration, they had no incentive. Now, they will have one.

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Rams
Learning most of life's lessons the hard way. .
You are only young once but, you can be immature indefinitely.

[This message has been edited by blackrams (edited 11-25-2024).]