Slapping a 25% tariff on Canada and Mexico is like trying to rob a bank by threatening to shoot your own toe off.
— Human☮πΊπΈπΊπ¦πΊπΈπ (@4HumanUnity) November 26, 2024
President-elect Donald Trump on Monday promised massive hikes in tariffs on goods coming from Mexico, Canada and China starting on the first day of his administration, a policy that could sharply increase costs for American businesses and consumers.The move, Trump said, will be in retaliation for illegal immigration and “crime and drugs” coming across the border...."Measures proposed this evening could hit a number of strategic US industrial sectors hard, add approximately $272 billion a year to tax burdens, raise goods prices, lift interest rates, and sap strength in an already-vulnerable household sector,” said Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions.After the announcement, the Canadian dollar fell 1.2% against the US dollar, and the Mexican peso fell 2% against the dollar. China’s yuan, though controlled by the government, traded higher – above 7.6% – in offshore markets.Although investors believed the tariffs could ultimately strengthen the dollar, America’s financial markets took a hit, too.The extraordinary tariffs would raise costs dramatically for Americans for everyday goods that had previously come over the border without any import taxes.That stunning shift could stymie economic growth, especially if inflation-weary consumers spend less in the face of higher costs.US stock futures, which were higher before Trump’s announcement, fell somewhat – Dow futures were down 160 points, or 0.3%. Nasdaq futures were 0.4% lower, and the broader S&P 500 was also down 0.4%. US Treasury bond prices fell.
Personally, I think Trump just wanted to draw attention to himself yesterday because Biden is about to succeed in brokering a peace deal between Israel and Lebanon, and Attention Must Be Paid Only To The Orange One!I really never realized the solution to all our problems was a trade war with Canada.
— Ron Filipkowski (@ronfilipkowski.bsky.social) November 25, 2024 at 9:44 PM
trump’s doing this for media attention. His middle name is Clusterfuck. He’s not even inaugurated yet & he’s got us flapping around like monkeys. We’re being had. πΊπΈ
— BKBelton (@bk_belton) November 26, 2024
It’s a mistake to ask this question because it assumes Trump’s rationality. He wants to do this because it makes him feel powerful. He doesn’t care if the effects are good or bad. Indeed, the more destruction he causes, or the more people fear destruction he may cause, the more powerful he feels.
— George Conway (@gtconway.bsky.social) November 26, 2024 at 7:04 AM
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