NAFTA ALLIES HIT FIRST
Trump vows big tariffs on Mexico, Canada By AFP
November 25, 2024
US President-elect Donald Trump said Monday he intends to impose sweeping tariffs on goods from Mexico, Canada and China in response to illegal drug trade and immigration.
In a series of posts to his Truth Social account, Trump vowed to hit some of the United States’ largest trading partners with duties on all goods entering the country.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25 percent tariff on ALL products coming into the United States, and its ridiculous Open Borders,” he wrote.
In another post, Trump said he would also be slapping China with a 10 percent tariff, “above any additional Tariffs,” on all of its products entering the US in response to what he said was its failure to tackle fentanyl smuggling.
Tariffs are a key part of Trump’s economic agenda, with the Republican president-elect vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail ahead of his November 5 victory.
Trump’s first term in the White House was marked by an aggressive and protectionist trade agenda that also targeted China, Mexico and Canada, as well as Europe.
While in the White House, Trump launched an all-out trade war with China, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.
At the time he cited unfair trade practices, intellectual property theft, and the trade deficit as justifications.
China responded with retaliatory tariffs on American products, particularly affecting US farmers.
The US, Mexico and Canada are tied to a three-decade-old free trade agreement, now called the USMCA, that was renegotiated under Trump after he complained that the US businesses, especially automakers, were losing out.
“Mexico and Canada remain heavily dependent on the US market so their ability to walk away from President-elect Trump’s threats remains limited,” Wendy Cutler, vice president at the Asia Society Policy Institute, and former US trade official, told AFP.
By citing the fentanyl crisis and illegal immigration, Trump appeared to be citing national security concerns as a means to break that deal, something that is usually allowed under the rules set by the World Trade Organization or in trade deals.
But most countries and the WTO treat national security exceptions as something to be used sparingly, not as a routine tool of trade policy.
Trump in 2018 cited national security justifications to impose tariffs on steel and aluminum imports that targeted close allies like Canada, Mexico, and the European Union.
This led to retaliatory measures from the trading partners.
– ‘Bet on China tariffs’ –
Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.
But those in Trump’s inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.
Trump has said he will put his commerce secretary designate Howard Lutnick, a China hawk, in charge of trade policy.
Lutnick has expressed support for a tariff level of 60 percent on Chinese goods alongside a 10 percent tariff on all other imports.
William Reinsch, senior adviser at the Center for Strategic and International Studies, said that that move was classic Trump: “threaten, and then negotiate.”
“In terms of what might actually happen, I’d bet on some China tariffs going into effect. That’s legally easier and politically more palatable,’ he said.
“On Canada and Mexico there was going to be a renegotiation of their trade deal (the USMCA) anyway in 2026.”
Trump: Huge tariffs coming for consumers who buy from China, Mexico and Canada
Matthew Chapman
November 25, 2024
Experts blast Trump over latest tariff announcement: 'Enjoy your cheap avocados'
Maya Boddie
Matthew Chapman
November 25, 2024
RAW STORY
Donald Trump wants everyone to know, he's going to make good on his tariff threats on day one.
The president-elect took to his Truth Social platform to single out three particular countries — China, Mexico, and Canada — as places whose goods will be sharply taxed when Americans go to buy them in stores.
"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," wrote Trump. "Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."
He put up another post expanding the threats.
"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before," wrote Trump. "Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open 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. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
"Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem," he continued. "We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
Economists have warned that large-scale, across-the-board tariffs of the type Trump is proposing would lead to massive price increases and general market chaos, which could be a shock to millions of people who only recently saw inflation return to normal levels after years of price instability following the COVID-19 pandemic.
Trump, however, has misrepresented how tariffs work, repeatedly — and falsely — insisting that U.S. consumers will not pay his tariffs, only the countries whose goods are being targeted.
Donald Trump wants everyone to know, he's going to make good on his tariff threats on day one.
The president-elect took to his Truth Social platform to single out three particular countries — China, Mexico, and Canada — as places whose goods will be sharply taxed when Americans go to buy them in stores.
"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," wrote Trump. "Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."
He put up another post expanding the threats.
"As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before," wrote Trump. "Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open 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. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
"Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem," he continued. "We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
Economists have warned that large-scale, across-the-board tariffs of the type Trump is proposing would lead to massive price increases and general market chaos, which could be a shock to millions of people who only recently saw inflation return to normal levels after years of price instability following the COVID-19 pandemic.
Trump, however, has misrepresented how tariffs work, repeatedly — and falsely — insisting that U.S. consumers will not pay his tariffs, only the countries whose goods are being targeted.
Experts blast Trump over latest tariff announcement: 'Enjoy your cheap avocados'
Maya Boddie
ALTERNET
November 26, 2024
President-Elect Donald Trump announced via social media on Monday that he will enforce tariffs on goods imported from Canada, Mexico, and China.
"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," the MAGA leader wrote via Truth Social. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
He continued, "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. Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."
Several political and economic experts slammed the president-elect's announcement.
Adam Isacson replied: "Using the same logic, Mexico and Canada could impose tariffs on US goods until we get serious about: - Reducing US demand for illicit drugs - Stopping cross-border trafficking of guns easily purchased in US shops - Curtailing money-laundering in US banks, real estate, etc."
Rep. Don Beyer (D-VA) said: "Donald Trump’s first act as president will be to intentionally *raise* prices for the American people."
Economist and University of Los Angeles law professor Kimberly Clausing commented: "Policy by tweet is something we once again brace for. But the uncertainty and chaos are just part of the economic damage that these policies bring. Canada and Mexico are our largest trading partners, and these huge tariffs will raise prices for consumers."
President-Elect Donald Trump announced via social media on Monday that he will enforce tariffs on goods imported from Canada, Mexico, and China.
"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," the MAGA leader wrote via Truth Social. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
He continued, "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. Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."
Several political and economic experts slammed the president-elect's announcement.
Adam Isacson replied: "Using the same logic, Mexico and Canada could impose tariffs on US goods until we get serious about: - Reducing US demand for illicit drugs - Stopping cross-border trafficking of guns easily purchased in US shops - Curtailing money-laundering in US banks, real estate, etc."
Rep. Don Beyer (D-VA) said: "Donald Trump’s first act as president will be to intentionally *raise* prices for the American people."
Economist and University of Los Angeles law professor Kimberly Clausing commented: "Policy by tweet is something we once again brace for. But the uncertainty and chaos are just part of the economic damage that these policies bring. Canada and Mexico are our largest trading partners, and these huge tariffs will raise prices for consumers."
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