Trump’s tariff nonsense is getting beyond ridiculous.
Will You Suffer Higher Prices for Trump?
That’s Senator Markwayne Mullin told CNN
Senator Markwayne Mullin told CNN that “of course” he’s worried tariffs could impact his state of Oklahoma but argued that his constituents are willing to “do what it takes” to support the president’s policy.
Representative Mark Alford of Missouri also chimed in, telling CNN that he is “all for” paying higher prices to “get America right again.”
“We all have a role to play in this to rightsize our government, and if I have to pay a little bit more for something, I’m all for it to get America right again, to start whittling down” the debts, he said.
Asked if he thinks his constituents feel the same way about shouldering some of the costs, Alford said: “I think so.”
Excuse me for pointing out that Trump never campaigned on a pledge of raising prices.
A Tariff Rollback Already?
On Fox News US Commerce Secretary Lutnick says President Trump could roll back Canada and Mexico tariffs as soon as tomorrow.
That’s a video link on X.
Erica York at the Tax Foundation responded “It would be better for the economy if the tariffs are short lived, but unfortunately, removal won’t undo all the damage to business relationships, economic activity, and the reliability of the US as a trading partner and place to do business.”
The amusing thing is Trump said yesterday “There’s No room left for negotiations.”
24 hours later, apparently there is. But who knows, by tomorrow maybe there won’t be.
A Bit More Common Sense
CNN reports Senate Republican leader expresses wariness over tariffs ahead of Trump’s joint address
Senate Majority Leader John Thune expressed wariness Tuesday over some of President Donald Trump’s recent policies, including new tariffs from the administration that threaten to raise the prices Americans pay for a wide array of goods.
Thune, who represents South Dakota – a state that relies heavily on trade with Canada, said while he thinks the president is attempting to secure “an outcome that addresses a concern that the American people have” with his recently imposed tariffs on the country along with Mexico and China, the economic impacts are an issue.
“That’s an issue in my view. I mean, I think you have to think about the economic impacts through inflation,” Thune told CNN’s Dana Bash when pressed on whether the tariffs, and potential cost to every day Americans, are good policy.
In the wake of the administration’s pause on shipments of US military aid to Ukraine following Trump’s heated Oval Office argument with Ukrainian President Volodymyr Zelensky last week, Thune cautioned against American isolationism and stressed the need for continued US leadership on the world stage.
“You don’t want America to become isolationist,” Thune told Bash. “Now again, what form America’s involvement and support takes is a matter of debate. And, you know, we can talk about whether soft power, hard power, what components that ultimately entails. But I think in the end, people look to us to be a leader, and we have to provide that leadership.”
Dear Senator Thune, please speak to Senator Markwayne Mullin. After all, Oklahoma is OK.
But what about agriculture?
A Cheezy Deal
Wisconsin Gov. Tony Evers says tariffs will be “crushing” for state’s dairy industry.
“Let’s just talk about cheese. We won’t be able to sell there and on top of that, we’ll be punished for not doing that. Now, is that a big deal for Wisconsin? Not everybody eats cheese, right? But it’s a $1.8 billion industry, and it’s going to be just crushed,” Evers said following an event Tuesday in Madison hosted by Wispolitics.com.
Republicans Squirm as Trump’s Tariffs Come for Their States
Politico notes Republicans Squirm as Trump’s Tariffs Come for Their States
Republicans in Washington have spent weeks dismissing concerns about President Donald Trump’s tariffs or arguing they’re just a negotiating tactic. But now with major tariffs kicking in on the country’s two largest trade partners, some are starting to publicly worry.
“I’m concerned,” Sen. Ron Johnson (R-Wis.) said of the 25 percent tariffs on Canada and Mexico that went into effect Tuesday after midnight. “I’m concerned.”
They and dozens of other GOP lawmakers represent states with major agriculture industries that are among the first targets of trade retaliation from Ottawa and Mexico City. The Canadian government has already disclosed more than $20 billion worth of U.S. goods it plans to slap with higher tariffs, including food products such as poultry, beef, fish and yogurt. The fallout for ag producers, a traditionally conservative-leaning industry, will be severe. And it’s prompting Republicans in those states to take on an uncomfortable position in the party right now — questioning, albeit quietly, a major plank of Trump’s agenda.
The agriculture industry lost $26 billion from retaliatory tariffs in 2018 and 2019 — the first time Trump launched a trade war — according to the Agriculture Department, with soybean, sorghum and pork producers facing the biggest losses. While USDA stepped in with billions in direct payments to farmers to help them weather the fallout, that funding may be harder to access in Trump’s second term, as the administration seeks to cut federal spending.
USDA’s Commodity Credit Corp., the agency’s internal bank that the first Trump administration tapped to compensate farmers, is running low on funding. And it may be hard to sell Trump officials on a new infusion of cash for the fund at the same time they are slashing spending elsewhere, warned former Trump trade official Ronald Baumgarten, former senior director in the U.S. Trade Representative’s Office of Agricultural Affairs.
“If you’re trying to shrink government, you certainly don’t want to enlarge the subsidies,” said Baumgarten, who served under both President Barack Obama and Trump.
“We’re going to keep our guys in the game,” said Sen. John Hoeven (R-N.D.), while acknowledging he was concerned about the short-term impact of the tariffs. “I’m going to work hard to do that. And that’s why we’ve got to separate short term and long term. The long-term goal is to get better terms for our guys.”
Ah Yes, Republicans support more handouts for their constituents and damn tens of thousands of small businesses who have no collective voice.
Are We Having Fun Yet?
Trump on Monday appeared to acknowledge the rising fears in farm country, addressing “the Great Farmers of the United States,” in a post on his social media platform, Truth Social. “Get ready to start making a lot of agricultural product to be sold INSIDE of the United States,” he wrote. “Tariffs will go on external product on April 2nd. Have fun!”
Trump sounds amazingly clueless. The US cannot possibly use all the soybeans and corn we produce.
Agricultural exports have become an increasingly important revenue source for American farmers over the past 25 years, surging from $57.3 billion in 1998 to $174 billion in 2023, according to the Agriculture Department.
Powerful agriculture lobbying groups and GOP lawmakers have said they’re counting on Agriculture Secretary Brooke Rollins to stand up for agriculture interests in Cabinet discussions and bail out producers caught in the crosshairs of Trump’s tariff battles.
House vs the Senate
Politico notes House and Senate GOP Leaders Split on Trump’s Tariffs.
Speaker Mike Johnson praised the president for giving countries “a dose of their own medicine” while Senate Majority Leader John Thune said he hoped the tariffs are “temporary.”
In the Senate, Majority Leader John Thune — who hails from an agricultural state that was hit hard by the trade wars of the first Trump administration — told reporters he hoped the new tariffs will only be in place as long as it takes to limit the flow of fentanyl into the United States.
“The America First agenda is to reset those relationships” with other countries, Johnson said, noting he did not believe Trump’s intent was to start a “trade war” or an “adversarial thing,” said Johnson.
“This is to continue good relationships and trade policies. I think this initiative will achieve that desired result,” Johnson continued. “As the president said, just have a little patience with this. Let it play out, see how it develops, and I think at the end of the day America is going to be better off.”
Thune acknowledged it could be difficult to separate his own perspective from that of his home state allegiances.
“As you know, I’m, you know, coming from an agricultural state, I see the tariff issue through a different lens,” he told reporters. “Nothing happens in a vacuum.”
Let It Play Out
Both of them are cowards, unwilling to stand up to Trump. But clearly, Johnson is the bigger coward.
As for willing to let this play out, I have a question: For longer than 24 hours? The next stock market decline? Until the farmers complain too much?
Canada and Mexico Strike Back at Trump’s Tariffs With Very Different Rhetoric
Earlier today I commented Canada and Mexico Strike Back at Trump’s Tariffs With Very Different Rhetoric
Whose Approach Is Better? Mexico or Canada?
My original thought was sucking up to Trump might be a great idea.
The problem is Trump will never be satisfied, he does not understand that trade benefits everyone (not just exporters), and he cannot be trusted to honor any deal he makes, even those he signed.
On the other hand, we are on the verge of escalatory madness of epic proportion in Canada.
An Issue of Trust
Trump has proven he may not honor any deal he signs. That is the unfortunate bottom line, and there will be a huge associated cost.
USMCA was up for renegotiation in June of 2026. But Trump couldn’t wait.
I am tired of nonsense about fairness or drugs or whatever. Trump personally negotiated USMCA, it was signed 89-10 by the US Senate, and now he broke the deal. So stop making excuses why.
If Trump wanted drugs to be part of the deal, then he should have put drugs in the deal.
Mish Suggested Approach to Trump
Given the total lack of trust anyone can possibly place on Trump honoring any deal, the best approach is likely along these lines:
1) Tell Trump how brilliant he is, 2) offer him something that costs little but sounds great and lets Trump brag, and then 3) he either takes it or not. 4) Respond accordingly.
It seems Mexican President Claudia Sheinbaum has figured most of this out. Congratulations!
Question of the Day
How soon will Trump roll back what percentage of these tariffs?
Unfortunately, the damage is done as Erica York points out.
“Removal won’t undo all the damage to business relationships, economic activity, and the reliability of the US as a trading partner and place to do business,” said York.
And that is very close to what I said earlier today: “Trump has proven he may not honor any deal he signs. That is the unfortunate bottom line, and there will be a huge associated cost.”
A better question is how deep and long with this tariff madness damage last? How deep, I don’t know. But trust will be gone for at least four years.
Related Posts
March 3: Welcome to the Recession, Trump Hits Canada and Mexico with 25 Percent Tariffs
“No room left” for negotiations says Trump.
And now US Commerce Secretary Lutnick seeks negotiation. Fancy that.
March 4, 2025: A Global Trade War Has Started – Global Recession Will Follow
The most significant global trade war since Smoot-Hawley and the Great Depression is underway.
Finally, we have not yet felt the hit on small manufacturers do to extremely unwise tariffs.
For discussion, please see How One Small Business Owner Is Coping With Trump’s Tariffs
Fifty-four percent of small businesses polled said that tariffs would negatively affect their companies, while just 11 percent said they would benefit.
Please read the above post and multiply it by tens of thousands of small businesses.
But don’t worry (if you are a farmer), because Republican Senators are ready to bail you out.
Screw the small businesses dependent on steel or aluminum. What a sorry hoot.