The Tarriff Hype.
- Thread starter petros
- Start date
U.S. lawmakers, governors and business leaders warned that Washington’s new tariffs on Canadian goods would increase costs for American households and companies, while a Federal Reserve official said that protracted sparring between the trading partners could help keep inflation stubbornly high.
Trump’s tariffs targeting another US$20 billion worth of Canadian goods went into effect on Saturday on top of existing Trump tariffs on steel, aluminium, lumber and vehicles, after talks between Washington and Ottawa broke down on Friday night.
U.S. senator Susan Collins of Maine, a Republican whose state borders Canada, said that the “on-again/off-again trade talks” between the allies would “lead to higher costs, risk and uncertainty for Maine businesses.”
The newest new Trump tariffs on top of his other tariffs would further “increase costs for Maine families, as most businesses will have no choice but to pass on the tariffs to their customers through higher prices”, she added.
Collins, who is facing a tough re-election battle in November as Republicans and Democrats vie for control of the Senate, said Trump “must consider the negative impact of tariffs”
and “work to reach a fair agreement” with Carney’s government.
Trump’s first-term vice-president Mike Pence told CNN on Sunday that “the last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada.”
apple.news
Governor Gretchen Whitmer (behind killing Keystone XL) of Michigan, which borders Canada and is the home of the American auto industry, said her state was “uniquely impacted” by “the tariff wars” with Ottawa. Fresh levies amounted to a “tax hike on Michigan families and businesses by raising prices at the grocery store and the gas pump.”
“Companies — especially our auto manufacturers — face the difficult decision of laying off workers or passing costs on to their customers,” she said.
Virginia governor Abigail Spanberger said Canada was her state’s top export destination and that the fresh levies on Canadian goods would “hurt Virginia families, farmers, producers, foresters and businesses” in “a matter of days .”
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS News on Sunday that “the longer there’s back and forth on the trade front, just like the longer there’s back and forth in the conflict of Iran, the imprint in inflation ends up being extended and delayed.” Sounds so familiar…from almost a century ago.
en.wikipedia.org
(Intended to bolster domestic employment and manufacturing, the tariffs instead deepened the Depression because the U.S.'s trading partners retaliated with tariffs of their own, leading to U.S. exports and global trade plummeting, and it appears Trump doesn’t know this piece of history)
The Minneapolis Fed covers several states bordering Canada, including Minnesota, Montana, North Dakota and the Upper Peninsula of Michigan.
U.S. businesses criticized the collapse of talks, warning of increased costs to American companies if negotiations do not resume.
Neil Herrington, senior vice-president for the Americas department at the U.S. Chamber of Commerce, said: “We urge U.S. and Canadian negotiators to return to the table and finish the job — a trade deal that addresses U.S. tariffs and Canadian retaliation. The alternative is an escalating cycle of tariffs that will raise costs and impede economic growth.”
apple.news
Perhaps walking away was inevitable, given the character and behaviour of U.S. President Donald Trump and his cabin boy, Howard Lutnick (U.S. commerce secretary), who showed up at the last minute with outrageous new demands.
There’s no point in pleading that the CUSMA deal allows for those tariffs and that Trump himself signed and boasted about how great CUSMA was. Like a child playing peekaboo, Trump thinks it’s disappeared. But it’s there, and so is America’s largest trading partner.
Trump can con everyone in the room, but he can’t con the financial markets. They’ll make their own decisions, and the inability to secure a trade deal with your largest trading partner will weigh heavily on the minds of investors.
Consumers are also starting to realize that they are the ones paying Trump’s tariffs. It’s not Canadian companies that pay them, although they’re hurt by them. It’s Americans buying cars that contain tariffed aluminum and steel. The cost of building a home in the United States will also shoot up because most of the lumber sold in the United States comes from Canada.
apple.news
All that is true, of course, but it’s of little solace to Canadians who will lose their jobs in the absence of a trade deal. Neither hide nor hair has been seen of Lutnick since the failure that he provoked. That may also be a sign that Trump doesn’t take kindly to one of his subordinates trying to ‘out-Trump’ him in deal-making.
Trump has proven himself to be incredibly unreliable in his dealings with his closest allies (plural), and it’s beginning to hurt the U.S., which he claims he wants to make great again.
He praises the North Korean communist dictator and berates Korea. He starts a war with Iran that he can’t finish and bristles at allies who refuse to go along with his half-baked scheme.
He’s heading into midterm elections, and he needs a win. He also needs to show voters that his boasting about mastering deal-making has some substance to it.
Trump’s tariffs targeting another US$20 billion worth of Canadian goods went into effect on Saturday on top of existing Trump tariffs on steel, aluminium, lumber and vehicles, after talks between Washington and Ottawa broke down on Friday night.
U.S. senator Susan Collins of Maine, a Republican whose state borders Canada, said that the “on-again/off-again trade talks” between the allies would “lead to higher costs, risk and uncertainty for Maine businesses.”
The newest new Trump tariffs on top of his other tariffs would further “increase costs for Maine families, as most businesses will have no choice but to pass on the tariffs to their customers through higher prices”, she added.
Collins, who is facing a tough re-election battle in November as Republicans and Democrats vie for control of the Senate, said Trump “must consider the negative impact of tariffs”
and “work to reach a fair agreement” with Carney’s government.Trump’s first-term vice-president Mike Pence told CNN on Sunday that “the last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada.”
Trump hit by domestic backlash as Canada trade war threatens higher prices — Financial Post
U.S. lawmakers, governors and business leaders warned that Washington's new tariffs on Canadian goods would increase costs for American households and companies
“Companies — especially our auto manufacturers — face the difficult decision of laying off workers or passing costs on to their customers,” she said.
Virginia governor Abigail Spanberger said Canada was her state’s top export destination and that the fresh levies on Canadian goods would “hurt Virginia families, farmers, producers, foresters and businesses” in “a matter of days .”
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS News on Sunday that “the longer there’s back and forth on the trade front, just like the longer there’s back and forth in the conflict of Iran, the imprint in inflation ends up being extended and delayed.” Sounds so familiar…from almost a century ago.
Smoot–Hawley Tariff Act - Wikipedia
The Minneapolis Fed covers several states bordering Canada, including Minnesota, Montana, North Dakota and the Upper Peninsula of Michigan.
U.S. businesses criticized the collapse of talks, warning of increased costs to American companies if negotiations do not resume.
Neil Herrington, senior vice-president for the Americas department at the U.S. Chamber of Commerce, said: “We urge U.S. and Canadian negotiators to return to the table and finish the job — a trade deal that addresses U.S. tariffs and Canadian retaliation. The alternative is an escalating cycle of tariffs that will raise costs and impede economic growth.”
americas got tyrant.
‘We can’t run our businesses’: Canadian companies react to U.S. tariffs — Global News
Canadian businesses are bracing for higher costs and uncertainty as new tariffs take effect following the collapse of Canada-U.S. trade talks.
There’s no point in pleading that the CUSMA deal allows for those tariffs and that Trump himself signed and boasted about how great CUSMA was. Like a child playing peekaboo, Trump thinks it’s disappeared. But it’s there, and so is America’s largest trading partner.
Trump can con everyone in the room, but he can’t con the financial markets. They’ll make their own decisions, and the inability to secure a trade deal with your largest trading partner will weigh heavily on the minds of investors.
Consumers are also starting to realize that they are the ones paying Trump’s tariffs. It’s not Canadian companies that pay them, although they’re hurt by them. It’s Americans buying cars that contain tariffed aluminum and steel. The cost of building a home in the United States will also shoot up because most of the lumber sold in the United States comes from Canada.
Tom Mulcair: Reading between the lines of Trump’s uncharacteristically muted Sunday morning response — CTV News
Former NDP leader Tom Mulcair argues that while Prime Minister Mark Carney was right to walk away from American demands, the only way to avert a post-Labour Day employment crisis is for him to bypass subordinates and negotiate directly with Donald Trump.
Trump has proven himself to be incredibly unreliable in his dealings with his closest allies (plural), and it’s beginning to hurt the U.S., which he claims he wants to make great again.
He praises the North Korean communist dictator and berates Korea. He starts a war with Iran that he can’t finish and bristles at allies who refuse to go along with his half-baked scheme.
He’s heading into midterm elections, and he needs a win. He also needs to show voters that his boasting about mastering deal-making has some substance to it.
