(Zero Hedge)—And just like that, the Trump trade wars have officially (re)started.
As was widely previewed yesterday, President Trump unleashed the first salvo of his latest trade war with tariffs of 25% on Canada and Mexico and 10% on China, the start of a wave of promised trade barrages against both foreign adversaries and allies.
Trump signed orders for the tariffs around 5pm ET on Saturday; they will go into effect on Tuesday, at which point they will likely escalate in tit-for-tat fashion until something breaks.
According to a fact sheet published by the White House, the tariffs are in response to the “extraordinary threat posed by illegal aliens and drugs” such as fentanyl, which constitute a national emergency under the International Emergency Economic Powers Act. more
I’m pretty sure Trump has already had a conversation with Uncle Xi that probably went like this:
“So how do you want to play this, cuz I can turn 10% into 25% just like this (snaps fingers). Your turn Xi”
This is one tax (essentially a tax since I will have to pay more for goods) I am willing to pay because it benefits the country long term.
Short-term sacrifice for future prosperity and stability, count me in.
We’re about to see that half of DC works for US trading rivals, and that includes a significant percentage of elected officials and executive branch bureaucrats. It’s already a given that 99% of the news media does.
“And just like that, the Trump trade wars have officially (re)started.”
A war against a defenseless enemy. Biggest impact, Avocado prices. That’s about it. We are their markets. One of couple things will happen. Consumers will find an American made product that is cheaper and buy that. Some outfit will see widget XYZ and decide hey we can make money on that now. US corps that have their manufacturing facilities planted off shore will decide to bring those jobs home. By the way, I’m a big time “isolationist”. Fuck em all. They have nothing we need, and we have everything they need.
Trust President Trump.