(Sent from a relative in Toronto)
Well, we knew it might be coming, but some perhaps believed Trump was too preoccupied deporting migrants and having his bestie Musk hiring techie drones to invade and scope out the $$$ files of computers at Treasury Dept. e.g..Musk aides gain access to sensitive Treasury Dept. payment system that controls $6 trillion per year
But on Saturday the orange Turd Traitor Felon followed through with his threat to impose stiff tariffs (25%) on Mexico, Canada and China, setting the stage for a destabilizing trade war with the United States’ largest commercial partners. The tariffs were set to begin Tomorrow, Feb. 4th. Already one lead WSJ editorial ('The Dumbest Trade War in History', p. A12, Feb.1-2) has skewered this nonsense, writing:
"None of this is supposed to happen under the U.S.-Mexico-Canada trade agreement that Mr. Trump negotiated and signed in his first term. The U.S. willingness to ignore its treaty obligations, even with friends, won't make other countries eager to do deals. Maybe Mr.Trump will claim victory and pull back if he wins some token concessions. But if a North American trade war persists, it will qualify as one of the dumbest moves in history."
Indeed, within hours of this moronic move which merely sets up an added tax on Americans' groceries, cars etc. Mexico and Canada immediately vowed to impose tariffs of their own. The Canadian prime minister, Justin Trudeau, announced retaliatory tariffs starting with 25 percent tariffs on approximately $20 billion worth of U.S. goods on Tuesday, with $85 billion more to follow within three weeks. Meanwhile, China's Commerce Ministry said it would file a case against the United States at the World Trade Organization and also vowed unspecified “corresponding countermeasures to firmly safeguard its rights and interests.”
The Wall Street Journal, in its weekend edition, described in detail the pain to come as a result of what the main editorial described as the "dumbest move in history". But what can you expect from a dumbass wannabe tyrant traitor felone\?
And this latest brain fart as if Americans needed any more grief after "Captain Bonespurs" first week of horrors - pardoning hundreds of lawless renegades and thugs then flooding the zone with insane executive orders, dismantling the FBI and blaming the Friday night D.C. air disaster (which killed 67) on DEI policies.
As for the fallout from any trade war, a separate WSJ piece ('Trump's Tariffs Risk Jolting the Economy') in the same issue (p. A2) as its lead editorial spelled the forthcoming pain out with a half dozen graphs (e.g. select imports to the U.S. from each targeted country vs. share of U.S vs. share of U.S. exports to each targeted nation). As the WSJ piece warns regarding three major hits:
1) Pricier Groceries:
"Grocery price increases could be the inflation consumers notice first, economists say. Mexico provides about half of U.S. fresh produce imports (e.g. avocados)and is a particularly important supplier in the winter, according to Ed Gresser, a former U.S. trade representative. More than 80% of U.S. avocados come from Mexico according to the U.S. Dept. of Agriculture."
2. Auto Industry:
"Domestic and foreign auto makers have built a complex web of factories all over the U.S., Canada and Mexico. Parts and half-finished vehicles sometimes cross the border several times before production is complete. Hitting each of these import crossings with a 25% tariff would raise costs and cause automakers to likely raise prices. Some auto parts manufacturers in Canada and Mexico are adding overtime shifts and stepping up deliveries to the U.S. in efforts to get ahead of tariffs."
3. Energy prices:
"New tariffs could raise U.S. prices for gasoline, jet fuel and home heating oil because Canada supplies about 60 percent of U.S. crude oil imports and Mexico an additional 10 percent. Together those imports make up about 30 percent of the crude oil used in the U.S. Many domestic refineries are set up to process Canadian (not U.S.) oil and adjusting away from it is no simple task."
As for Trump's continued mission of retribution, as opposed to tending to inflation (which actually got him elected) an earlier WSJ editorial (Jan, 18-19, p. A16, 'Can Trump Do Better A Second Time') had this to say (Take note hapless Dems!):
"If Mr. Trump focuses on settling scores rather than raising incomes, Democrats will sweep the 2026 midterms and progressives will return to power with a vengeance in 2028."
See Also:
by Robert Reich | February 3, 2025 - 7:05am | permalink
— from Robert Reich's Substack
Understand this: The reason Trump has raised tariffs on Canada and Mexico is not to have more bargaining leverage to get better deals for the United States from Canada or from Mexico.
Hours before the Canadian tariffs went into effect, Trump was asked if there was anything Canada could do to stop them. “We’re not looking for a concession,” Trump said, speaking to reporters in the Oval Office on Friday afternoon. “We’ll just see what happens, we’ll see what happens.”
The real reason Trump has raised tariffs on Canada and Mexico is to show the world that he’s willing to harm (smaller) economies even at the cost of harming America’s (very large) economy.
The point is the show — so the world knows it’s dealing with someone who’s willing to mete out big punishments. Trump increases his power by demonstrating he has the power and is willing to use it.
And:
— from Robert Reich's Substack
Friends,
Before I post my Sunday cartoon, I want to share with you some thoughts about the second horrific week of Trump II.
It’s even worse than I’d imagined.
He’s been “flooding the zone” with so many outrageous (and often illegal) initiatives that many people are overwhelmed, demoralized, and just plain freaked out.
That’s the intent.
This morning, a woman I didn’t know was about to pass me on the sidewalk and then stopped, turned toward me, and almost shouted, “It’s a fucking nightmare!”
With tariffs and threats, Trump turns on America’s closest allies
And:
No comments:
Post a Comment