Category: Trade

Trump’s Tariffs Threaten American Households and Economy Amid Reckless Trade War

Former President Donald Trump has unilaterally imposed tariffs on imports from Canada, Mexico, and China, his three largest trading partners, further igniting a trade war that has disastrous implications for average Americans. The executive orders he signed mandate a 25% tax on goods from Canada and Mexico and a 10% tax on products from China, directly contradicting the previous trade agreements designed to enhance economic cooperation. This move is reminiscent of authoritarian tactics, leveraging economic measures to target perceived enemies rather than promoting fair trade practices.

In a deluded rationale, Trump alleged that these nations contribute to the influx of illegal immigrants and drugs, perpetuating a narrative rooted in fear and misinformation. His claims about “criminals coming into our country” only serve to perpetuate the Republican agenda of dehumanizing marginalized communities. These tariffs, positioned as a solution, neglect the actual complexities of immigration and border security, instead opting for punitive economic measures that will inevitably harm American consumers.

The ramifications of Trump’s tariffs are expected to be profound. Research from the Budget Lab at Yale University estimates that the average American household could lose approximately $1,200 in purchasing power due to these tax increases. Trump’s own history reveals a troubling pattern—during his first term, while factory jobs initially increased, they stagnated in the lead-up to the pandemic, demonstrating the ineffectiveness of his previous policies. These newly imposed tariffs threaten to deepen the economic woes of families already struggling with inflation and rising costs of living.

Moreover, the tariffs are likely to disrupt established supply chains, particularly in the automotive industry, which relies on intricate networks connecting partners across North America and beyond. Trump’s brazen approach disregards the decades of interdependence built within these industries, putting countless jobs and economic stability at risk. Notably, these penalties not only jeopardize American businesses but also penalize consumers by raising the costs of essential goods.

This irresponsible economic policy is emblematic of the larger Republican agenda that prioritizes partisan rhetoric over workable solutions. By scapegoating neighboring countries and amplifying nationalist sentiment, Trump and the GOP further erode the cooperative spirit critical to a prosperous economy. The ramifications of this misbegotten trade war will be felt deeply, not just as economic fallout but as a broader attack on the democratic principles that underpin fair governance.

(h/t: https://www.washingtonpost.com/business/2025/02/01/tariff-mexico-canada-trump/)

Trump Threatens Tariffs on Nations Challenging Dollar Dominance

Former President Donald Trump recently issued a striking ultimatum via social media, threatening ten countries with 100% tariffs should they attempt to replace the U.S. dollar as their reserve currency. This declaration showcases not only his authoritarian tendencies but also a dangerous ignorance of international economics. His comments are expected to escalate tensions with countries that are part of the BRICS coalition—Brazil, Russia, India, China, and South Africa—alongside others looking to establish their economic autonomy.

In his post, Trump declared, “The idea that the BRICS Countries are trying to move away from the Dollar… is OVER.” However, his grasp on international relations remains alarmingly shallow, as evidenced by a previous gaffe where he mistakenly identified Spain as a BRICS member. This staggering lack of knowledge undermines his credibility, especially in discussions that impact global economic structures and alliances.

Moreover, Trump’s threats reflect a broader pattern of aggressive nationalism that seeks to impose U.S. dominance through economic coercion. As he plans to impose additional tariffs on neighboring countries like Mexico and Canada, his actions jeopardize essential diplomatic relationships and undermine cooperative trade practices. This lack of understanding and willingness to engage in constructive dialogue signals a troubling trend of isolationism that threatens both U.S. and global economic stability.

Trump’s threats have not gone unnoticed internationally. According to reports, a Kremlin spokesperson suggested that such economic coercion would inevitably backfire, indicating that the world is increasingly wary of Trump’s unpredictable stance on trade. Furthermore, trade experts note that the dollar’s strength is largely attributed to the current U.S. economic conditions, which are not guaranteed to remain unchanged in the face of such reckless rhetoric.

This recent episode is just another instance highlighting Trump’s futile attempts to maintain an American hegemony that disregards the realities of a multipolar world. His administration’s erratic foreign policy moves represent a clear danger to the principles of diplomacy and international cooperation, ultimately revealing a commitment to authoritarianism that disregards the foundational tenets of democratic governance and productive global engagement.

(h/t: https://www.yahoo.com/news/another-sucker-nation-trump-fires-112635885.html)

Trump’s Authoritarian Measures Against Colombia Expose Detrimental Immigration Policies

In a concerning display of authoritarian governance, Donald Trump has implemented harsh tariffs and visa restrictions against Colombia following President Gustavo Petro’s refusal to accept deportation flights unless the U.S. ensures humane treatment for returning migrants. This decision by Petro highlights a vital stance on human rights, indicating that Colombia will not permit what it deems unjust and dehumanizing practices aimed at its citizens.

Trump reacted with aggression, announcing a 25% tariff on Colombian goods and imposing immediate travel bans for Colombian officials and their associates. This escalatory measure signals Trump’s commitment to a hardline immigration policy that prioritizes punitive measures over diplomatic negotiation and respect for human dignity. It marks a troubling moment for U.S.-Colombia relations, with Trump portraying Colombia as a nation that is failing to uphold its responsibilities in this violent cycle of deportation and suffering.

President Petro made it clear on social media that Colombian migrants should not be treated “like criminals,” providing a stark contrast to Trump’s draconian measures and language. By insisting that deportees return under conditions of dignity, Petro not only defends the rights of his citizens but also stands against Trump’s racially charged rhetoric that has characterized much of his administration’s approach to immigration.

The backlash against Trump’s policies isn’t confined to Colombia; other Latin American leaders are beginning to voice their concerns about the U.S. treatment of deported migrants, reflecting a broader regional disapproval of Trump’s heavy-handed tactics. Brazil’s Ministry of Foreign Affairs has also sought clarification regarding reports of inhumane conditions deportees face when returning from the United States, underlining a growing demand for accountability in U.S. immigration practices.

Amidst these tensions, Petro’s administration comes as a refreshing counter to the Republican embrace of cruelty towards migrants. His outspoken refusal to comply with Trump’s demands resonates with the broader Latin American rejection of Trump’s brand of political discourse, which is increasingly marked by xenophobia and authoritarianism. As this confrontation unfolds, it exemplifies not just the struggle for immigrant rights but also a critical examination of the Trump administration’s detrimental policies towards democracy and human dignity.

(h/t: https://www.washingtonpost.com/immigration/2025/01/26/trump-colombia-deportation-flights-migrants-tariffs/)

Trump’s Tariff Threats Reveal Authoritarianism

Donald Trump has issued a reckless threat of imposing 100% tariffs on BRICS nations—Brazil, Russia, India, China, and South Africa—if they attempt to establish a currency that rivals the US dollar. This declaration highlights Trump’s authoritarian tendencies, as he demands these countries refrain from creating alternatives to the US dollar, indicating a desperate attempt to maintain American economic dominance at any cost.

In his recent post on Truth Social, Trump showcases his willingness to use extreme measures to intimidate other nations into submission. This is a clear reflection of his administration’s history of bullying tactics in foreign policy, which undermines diplomatic relations and global cooperation.

The threats not only risk a trade war but also reveal Trump’s blatant disregard for international economic collaboration. The BRICS countries have been exploring alternatives to the dollar as part of their strategy to enhance economic independence, a move that Trump perceives as a direct challenge to his authority.

This approach is not just a blunder in foreign relations; it exposes a troubling pattern of Trump’s leadership style, characterized by aggression and a lack of respect for the principles of free trade. His fixation on tariffs could lead to retaliatory measures from these nations, resulting in a detrimental cycle that could harm not only American consumers but also businesses.

Ultimately, Trump’s threats against the BRICS nations serve as a reminder of his inability to adapt to the evolving global economic landscape. Rather than fostering collaboration, he resorts to intimidation, further alienating potential allies and showcasing his authoritarian agenda.

(h/t: https://www.bbc.com/news/articles/cgrwj0p2dd9o)

Trump’s Tariff Threats Expose Authoritarian Agenda

Donald Trump has made a bold declaration, threatening to impose 100% tariffs on countries that attempt to move away from the US dollar, specifically targeting the BRICS nations. In a recent Truth Social post, Trump demanded that countries like Brazil, Russia, India, China, and South Africa commit to not creating a new currency to replace the US dollar. This move underscores his authoritarian tendencies and willingness to bully international partners to maintain America’s economic dominance.

Trump’s alarming rhetoric suggests a misunderstanding of global economics, as he confidently states that there is no chance the BRICS nations will successfully replace the US dollar in international trade. This assertion not only reveals his ignorance but also highlights his penchant for creating unnecessary conflict with foreign nations, undermining the diplomatic relations that are crucial for trade.

Moreover, Trump’s threats to cut off countries from the US economy if they consider alternatives to the dollar expose his reckless approach to foreign policy. By framing this issue as a zero-sum game, he disregards the complexities of international finance and the potential repercussions for American businesses and consumers.

In addition to his tirade against the BRICS, Trump also used the opportunity to boast about his conversations with Canadian Prime Minister Justin Trudeau, further demonstrating his tendency to mix domestic and international issues for political gain. His insistence on discussing tariffs while addressing drug smuggling reveals a troubling prioritization of punitive measures over collaborative solutions.

Overall, Trump’s latest statements reflect a dangerous blend of authoritarianism and economic misunderstanding, which could have serious consequences for America’s standing in the global economy. His threats not only risk alienating potential allies but also jeopardize the stability of international trade that is vital for the U.S. economy.

(h/t: https://www.mediaite.com/politics/trump-threatens-100-tariffs-against-countries-trying-to-move-away-from-us-dollar-wave-goodbye-to-america/)

Trump Struggles with Economic Policy in Challenging Bloomberg Interview

In a recent interview with Bloomberg News, former President Donald Trump faced intense questioning regarding his economic policies, revealing a significant lack of understanding of basic economic principles. During the discussion, Bloomberg Editor-in-Chief John Micklethwait challenged Trump on his plans involving widespread tariffs on imported goods, which have been criticized by economists for potentially raising costs for American consumers. Trump maintained that other countries would bear the brunt of these tariffs, demonstrating a disconnect from the realities of international trade.

As the conversation progressed, Trump became increasingly defensive, dismissing critiques from Micklethwait and attacking the credibility of the Wall Street Journal when confronted with estimates that his economic proposals could inflate the national debt by $7 trillion. Despite Micklethwait’s attempts to keep the discussion focused, Trump often veered off-topic, notably failing to provide coherent answers about how his policies would aid small businesses that rely on imports.

Trump’s frustrations were palpable as he deflected questions regarding the impact of his immigration policies on the labor market. Instead of addressing economic implications, he resorted to discussing crime rates among undocumented immigrants, making unfounded claims about the dangers they pose. Micklethwait attempted to redirect the conversation to economic outcomes, but Trump continued to emphasize crime, undermining the economic discourse.

In a particularly notable moment, when asked about how he would cut government spending, Trump pointed to the remodeling of Air Force One as an example, which did little to elucidate his fiscal strategy. This response further exemplified his inability to articulate a clear economic vision, relying instead on vague anecdotes and deflections.

The interview concluded with Trump attempting to justify his disjointed speaking style, referring to it as a ‘weave’ of thoughts. However, this approach did not resonate well, as many observers noted that it reflected a troubling lack of clarity and focus on pressing economic issues that will impact voters in the upcoming election.

(h/t: https://www.rollingstone.com/politics/politics-news/trump-crumbles-pressed-economic-policy-bloomberg-interview-1235134459/)

Trump targets ‘pathetic’ Federal Reserve after worst manufacturing reading in a decade

President Donald Trump again attacked the Federal Reserve on Tuesday after the weakest U.S. manufacturing reading in 10 years.

In a tweet, the president wrote Fed Chair Jerome Powell and the central bank “have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected.” He contended the Fed has set interest rates “too high.”

“They are their own worst enemies, they don’t have a clue,” he wrote. “Pathetic!”

As his trade war with China rages on, Trump has repeatedly blamed the Fed’s interest rate policy for concerns about a slowing U.S. economy. He has contended the central bank has not moved quickly enough to ease monetary policy — though the Fed has cut its benchmark funds rate twice this year.

The Fed did not immediately respond to a request to comment.

Trump’s tweet comes after the Institute for Supply Management’s manufacturing reading fell to 47.8 in September, down from 49.1 in August. A reading below 50 shows a manufacturing contraction.

The poor economic data contributed to major U.S. stock indexes sliding Tuesday.

The dollar index, which measures the U.S. currency against a basket of global currencies, has climbed more than 3% this year and sits near its highest level since mid-2017. A stronger dollar relative to global currencies is generally expected to reduce exports and increase imports, hurting manufacturers because it makes their products more expensive overseas.

While exchange rates may have contributed to the drag on manufacturing in September, trade also did, according to ISM.

“Global trade remains the most significant issue as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth,” Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a release announcing the data.

Trump has repeatedly downplayed any concerns about a looming American recession. He has also contended his trade conflict with the second-largest economy in the world will not harm businesses or consumers — despite indications that it has already started to hurt some companies and worry Americans.

Seeing concerns about a flagging economy as a ploy to discredit him before the 2020 election, Trump has claimed the central bank bears the blame for any slowdown rather than his own policies.

[NBC News]

Media

Trump blasts Fed for not helping manufacturers

President TrumpOpens a New Window. on Tuesday continued to take on the Federal ReserveOpens a New Window., saying the central bank “loves” to watch American manufacturers struggle.

“The Federal Reserve loves watching our manufacturers struggle with their exports to the benefit of other parts of the world. Has anyone looked at what almost all other countries are doing to take advantage of the good old USA? Our Fed has been calling it wrong for too long!”

Trump has heavily criticized the Fed and its chairman, Jerome PowellOpens a New Window. multiple times over the past several months. The president’s biggest issue with the Fed is over the size of its latest interest rate cut. While the central bank lowered the benchmark federal funds rate by a quarter-point last month, Trump has repeatedly called for a larger cut.

Meanwhile, manufacturing activityOpens a New Window. across Mid-Atlantic States showed little improvement in August, according to data released Tuesday from the Federal Reserve Bank of Richmond.

“The composite index rose from -12 in July to 1 in August, buoyed by increases in the indexes for shipments and new orders,” the survey found. “However, the third component, employment, fell. Firms reported increasing capital expenditures and inventories, but the measure of local business conditions was slightly negative. Manufacturers were, however, optimistic that conditions would improve in the next six months.”

The survey indicated that while wage growth continues, firms were having difficulty finding employees with the necessary skills for open positions — and it anticipates that both of these trends will continue. Also, “many firms saw employment decline while the average workweek increased in August,” according to the survey.

[Fox Business]

Beijing denies Trump’s claim that China called US officials to restart talks

President Donald Trump said U.S. and Chinese officials spoke Sunday and he is optimistic China wants to make a deal after the trade war between the two countries escalated in recent days.

“They want to make a deal,” Trump told reporters Monday during a meeting with Egyptian President Abdel-Fattah el-Sissi at the Group of Seven Summit. “That’s a great thing.”

The conversations Sunday between the U.S. and Chinese officials were the first since the two countries lobbed a new round of tariffs at each other last week. Neither side formally broke off talks and White House officials had said they expected negotiations to continue despite the new tariffs. But investors had feared China could walk away from the negotiating table.

Speaking to reporters, Trump heaped praise on Chinese President Xi Jinping, calling him a “great leader” and said China wants “to do something very, very badly.” He said the calls were at the “highest levels.”

“We are probably in a much better position now than any time in the negotiations,” Trump said in a meeting Monday with German Chancellor Angela Merkel.

When asked about the phone calls, Chinese Foreign Ministry spokesperson Geng Shuang said, “I haven’t heard about this.” News of Trump’s comments was breaking as he was addressing reporters.

Hours earlier, Chinese Vice Premier Liu He said China sought “calm” negotiations and opposed an escalation.

“We are willing to solve the problem through consultation and cooperation with a calm attitude,” he said, according to Chinese newspaper Caixin. “We firmly oppose the escalation of the trade war,” he said, adding that it “is not conducive to China, the U.S. and the interests of people all over the world.”

Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

The stock market fell sharply Friday after China announced it would slap retaliatory tariffs on $75 billion worth of U.S. goods, and Trump hit back saying he would increase existing tariffs on $250 billion in imports to 30 percent from 25 percent Oct. 1.

He also said that a planned 10 percent tariff on a further $300 billion in Chinese goods would now be taxed at 15 percent starting next month.

But the continued talks and optimism from Trump eased financial market jitters. U.S. stock futures pointed to a recovery Monday morning, with Dow futures jumping more than 200 points.

Trump’s top economic adviser, Larry Kudlow, said Sunday afternoon that he was anticipating a call from the Chinese this week and for Chinese officials to still come to Washington as planned.

“You’ve got both sides playing their game, we get that,” Kudlow told reporters. “As long as they are talking, I’m good.”

Trump also signaled a hint of optimism on Iran.

He said he didn’t feel disrespected by the surprise arrival of Iranian Foreign Minister Mohammad Javad Zarif at the seaside town where the meeting of world leaders is taking place. Trump said French President Emmanuel Macron let him know Zarif was coming on the day of his arrival.

“I don’t consider that disrespectful at all, especially when he asked for my approval,” Trump said of Macron.

But White House aides said they felt blindsided by the unanticipated visitor, and some were upset at the French over the move, U.S. officials said shortly after Zarif’s arrival.

A spokesman for Zarif announced that he had arrived in Biarritz at the invitation of the French foreign minister “to continue talks” between the Iranian and French governments.

Trump said it would have been too soon to meet with the Iranians, and he declined to comment when asked if he sent any message to Zarif. There is no indication Zarif would have been willing to meet with the U.S. officials.

Trump said he isn’t looking for regime change in Iran, but that he wants to see the country abandon its nuclear program and stop its terrorism funding before lifting financial restrictions that have crippled its economy.

“We are looking to make Iran rich again,” Trump told reporters Monday. “Let them be rich.”

[NBC News]

Reality

Beijing has no idea what Trump is talking about.

Trump says he’s ordering American companies to immediately start looking for an alternative to China

President Donald Trump on Friday said he was ordering U.S. companies to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”

Trump also said he was ordering all U.S. postal carriers, including FedEx, Amazon, UPS and United States Post Office, “to SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!).”

And Trump said he will respond this afternoon to China’s newest round of tariffs on U.S. goods.

The White House did not immediately respond when asked if the announcement, delivered in a four-part Twitter thread Friday morning, constituted an official order from the president.

It was not immediately clear how, or under what authority, the president could implement these declared orders, or whether he had already done so.

Stocks sank to session lows shortly after Trump’s tweets. The Dow Jones Industrial Average fell more than 435 points, or 1.6%, while the S&P 500 slid 1.7% and the Nasdaq Composite dove 2%.

In a statement, UPS said that it “follows all applicable laws and administrative orders of the governments in the countries where we do business. We work closely with regulatory authorities to monitor for prohibited substances.”

FedEx also responded: “FedEx already has extensive security measures in place to prevent the use of our networks for illegal purposes. We follow the laws and regulations everywhere we do business and have a long history of close cooperation with authorities.”

Amazon and the Postal Service were not immediately available for comment.

Trump’s tweets followed another missive against Federal Reserve Chairman Jay Powell, who had just pledged to “act as appropriate” to sustain the U.S. economy amid the “deteriorating” global economic outlook.

In an apparent response, Trump tweeted: “Who is our bigger enemy,” Powell or Chinese President Xi Jinping?

Earlier Friday, China had announced it would slap retaliatory tariffs of 5% and 10% on roughly $75 billion in U.S. imports. The new import taxes represent the latest escalation in the increasingly fraught U.S.-China trade war, as well as a direct response to Trump’s plan to impose duties on $300 billion worth of China’s goods by mid-December.

Top trade advisors Robert Lighthizer and Peter Navarro were reportedly near the Oval Office just before the president sent his latest tweets. A source later told CNBC that Trump was meeting with his trade team Friday.

[CNBC]

1 2 3 … 7