ALTERNET
November 27, 2024
Former Labor Secretary Robert Reich on Tuesday explained the impact Donald Trump's new tariff plan could have on American families, predicting the countries that fall under the president-elect's tariff enforcements will likely retaliate.
Speaking with Reich on the latest episode of MSNBC's The ReidOut, host Joy Reid noted that some economists say under Trump's tariff plan, "The average American household is going to spend $2600 a year."
However, Reich corrected the MSNBC host, saying: "That $2600 family estimate was made in August, before we knew how large the tariffs are going to be." The ex-labor secretary added, "I think the actual per family estimated cost is probably closer now to $4000."
READ MORE: GOP senator admits he's 'concerned' about a Trump trade war: report
Reid then noted that America's largest trading partners include China, Canada, Mexico — all of which fall under the MAGA leader's tariff plan.
"If we slap a massive tariff, Robert, on those countries, what would they do? What might they do in return?" Reid asked.
"Well, they will do exactly what countries did in 1930," the ex-President Bill Clinton administration official replied. "1930 was the last time we had a big, across-the-board tariff increase, and that was from Herbert Hoover. Remember President Herbert Hoover?" he asked.
Reich continued, "That resulted in retaliatory tariffs — other countries retaliating against us for putting tariffs on their goods. And those retaliations — those tariff wars — ended up worsening the Great Depression."
READ MORE: 'Nakedly transactional': How Trump is allowing donors free rein to profit from Cabinet roles
Watch the video below or at this link.
Former Labor Secretary Robert Reich on Tuesday explained the impact Donald Trump's new tariff plan could have on American families, predicting the countries that fall under the president-elect's tariff enforcements will likely retaliate.
Speaking with Reich on the latest episode of MSNBC's The ReidOut, host Joy Reid noted that some economists say under Trump's tariff plan, "The average American household is going to spend $2600 a year."
However, Reich corrected the MSNBC host, saying: "That $2600 family estimate was made in August, before we knew how large the tariffs are going to be." The ex-labor secretary added, "I think the actual per family estimated cost is probably closer now to $4000."
READ MORE: GOP senator admits he's 'concerned' about a Trump trade war: report
Reid then noted that America's largest trading partners include China, Canada, Mexico — all of which fall under the MAGA leader's tariff plan.
"If we slap a massive tariff, Robert, on those countries, what would they do? What might they do in return?" Reid asked.
"Well, they will do exactly what countries did in 1930," the ex-President Bill Clinton administration official replied. "1930 was the last time we had a big, across-the-board tariff increase, and that was from Herbert Hoover. Remember President Herbert Hoover?" he asked.
Reich continued, "That resulted in retaliatory tariffs — other countries retaliating against us for putting tariffs on their goods. And those retaliations — those tariff wars — ended up worsening the Great Depression."
READ MORE: 'Nakedly transactional': How Trump is allowing donors free rein to profit from Cabinet roles
Watch the video below or at this link.
'Significant consequences': Major bank comes out swinging against Trump’s latest plan
Alex Henderson, AlterNet
November 27, 2024
Critics of President-elect Donald Trump's proposal for aggressive new tariffs were hoping he would back down from that idea — but he announced this week that he plans to move forward as soon as he is sworn into office — and proposed 25% across-the-board tariffs on all goods imported into the United States from Mexico and Canada.
For some goods imported from Mainland China, Trump has proposed a 10% tariff.
Goldman Sachs is weighing in on Trump's tariff proposals — and not in a favorable way.
The bank is warning that U.S. consumers could face "significant consequences" if the tariffs are enacted.
"The 25% levy on all products from Canada proposed by Trump would likely raise the price of fuels in the U.S., Daan Struyven, the head of commodities research for Goldman, said during a roundtable interview," Bloomberg reported.
"The tactic is reminiscent of the first Trump term and could be a negotiating tool, he added."
Struyven said Trump's proposed tariffs "could in theory lead to some pretty significant consequences for three groups of people: U.S. consumers, U.S. refiners and Canadian producers."
Struyven added, however, "Given the focus from Trump to lower energy costs, we think Canada tariffs are somewhat unlikely."
READ MORE: Robert Reich: The last tariff increase 'ended up worsening the Great Depression'
The report noted, "The U.S. imports almost 4 million barrels of Canadian crude a day, which allows American producers to export more of their own oil. The chief executive officer of the Canadian Association of Petroleum Producers said tariffs would result in higher gasoline and energy costs for U.S. consumers."
READ MORE: 'Comeback of polio': Expert warns Trump picks will have 'major impact' on public health
Read Bloomberg News' full report at this link (subscription required).
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