All eyes are on February 1 as Trump renews his threat for universal tariffs.
Trump Says Tariffs Will Protect the Country
Bloomberg reports Trump Renews Universal Tariff Threat to ‘Protect Our Country’
President Donald Trump said he wants to impose across-the-board tariffs that are “much bigger” than 2.5%, the latest in a string of signals that he’s preparing widespread levies to reshape US supply chains.
“I have it in my mind what it’s going to be but I won’t be setting it yet, but it’ll be enough to protect our country,” Trump told reporters Monday night.
Asked about a report that incoming Treasury Secretary Scott Bessent favored starting with a global rate of 2.5%, Trump said he didn’t think Bessent supported that and wouldn’t favor it himself. He said he wanted a rate “much bigger” than 2.5%.
Trump spoke aboard Air Force One while he flew back to Washington from a Florida speech where he pledged tariffs on specific sectors, including semiconductors, pharmaceuticals, steel, copper and aluminum. He also strongly suggested he could also impose them on automobiles from Canada and Mexico, countries he’s already threatened with 25% across-the board tariffs as soon as Feb. 1.
“As tariffs on other countries go up, taxes on American workers and businesses will come down and massive numbers of jobs and factories will come home,” Trump said at a gathering of House Republicans at his Doral resort in Miami, during a speech in which he praised the tariff-heavy US approach at the turn of the 20th century.
“Remember, again, the word ‘tariff.’ We’re going to protect our people and our businesses, and we’re going to protect our country, with tariffs,” Trump added. He’s said to have earlier mused about tariffs of up to 20%.
“If you want to stop paying the taxes or the tariffs you have to build your plant right here in America. That’s what’s going to happen at record levels,” he said.
Trump singled out several sectors in his speech to lawmakers. He complained at length about auto imports both from Canada and Mexico.
“They send us millions of cars; we don’t need them for that,” he said of Canada, America’s top export market. “We want to have the cars made in Detroit or South Carolina or many other locations.” Trump then added: “The auto workers voted for me and I have an obligation to do what’s right, and I’m going to do that.”
He sang the praises of steel tariffs that he implemented in his first term and said he’d be “placing tariffs on steel, aluminum and copper and things that we need for our military,” without elaborating. “We have to bring production back to our country.”
Trump’s Pledge to Raise Prices
The US is already the highest cost producer of cars and steel in the world.
Bringing production here with union contracts would make the US the highest cost producer of everything unless we can automate.
And automation is something neither the unions nor Trump wants.
Auto Parts
Various auto parts and cars cross the border several times.
It will be interesting to see how that works out.
Trade Surplus With Canada Excluding Energy
For all of Trump’s pissing and moaning, the US has a trade surplus with Canada excluding energy.
Just Do It
“I have it in my mind what it’s going to be but I won’t be setting it yet,” said Trump.
Well, stop the threats and just do it. Start with 20 percent to make a clear point, then go for 40 percent when nations retaliate.
I am prepared for a massive global trade war when nations retaliate.
One of us will be wrong and I sincerely hope it’s me.
But please recall Trump’s statement that “trade wars are good and easy to win”. If it was so easy, he would have declared success in his first term. And Biden kept all of Trump’s tariffs intact.
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January 6, How Much Revenue Can Trump Realistically Bring in From Tariffs?
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January 14, Canada Says It Will Match US Tariffs If Trump Launches Trade War
Canadian prime minister Justin Trudeau says Canada will respond in kind to Trump’s tariffs.
January 22, 2025: Trump Renews Threat of 25 Percent Tariffs on Canada and Mexico
After dismissing such threats as bluffs, I now wonder if Trump might be stupid enough to do what he says.
Let’s do it. I am tired of the talk. Make tariffs great again.