Trump's trade war continues as new tariffs take effect this week against US products in Canada and China, and Trump seems fully committed to a full-scale conflict with the EU as well which could lead to a major economic depression in the US.
President Trump defiantly stood by his tariffs on Sunday as Canada hit back hard, Mexico elected a new leader who seems prepared to confront him, and the European Union issued a scathing condemnation of his policy as “in effect, a tax on the American people.”
Instead of backing down, Trump brushed off the mounting pressure from businesses and world leaders to scale back the taxes before they cause additional job losses and slower economic growth.
This week will be a critical test of Trump’s resolve as Canada on Sunday imposed tariffs on $12.6 billion of U.S. products and China is set to levy high tariffs on $34 billion worth of American goods, including soybeans, on Friday, the same day that Trump plans to tax an additional $34 billion worth of Chinese items.
The additional taxes make it harder for U.S. companies and farmers to sell some items abroad, and they raise costs on many products used in U.S. manufacturing. But Trump shrugged off fears that the tariffs will hurt the economy.
“Every country is calling every day, saying, ‘Let’s make a deal, let’s make a deal.’ It’s going to all work out,” Trump said Sunday, echoing his remarks earlier in the year that trade wars are “easy to win.”
Despite Trump’s rhetoric, concerns are growing that Trump’s appetite for tariffs only appears to be expanding as trade tensions escalate. Many who argued that Trump was just threatening tariffs as a negotiating tactic and would never let the skirmish intensify are now saying they may have miscalculated.
Trump said in an interview on Fox News’s “Sunday Morning Futures” that the European Union is just as bad as China on trade and that he didn’t intend to sign a new North American Free Trade Agreement deal until after the midterm elections in November.
“The European Union is possibly as bad as China, just smaller,” Trump said Sunday, pointing to the “car situation.”
The E.U. sent Trump’s Commerce Department an 11-page document on Friday threatening that the global community would put tariffs on up to $290 billion of U.S. products if Trump moves forward with tariffs on foreign autos, according to a copy obtained by The Washington Post.
“Protective measures would undermine U.S. growth, negatively impact job creation, and not improve the trade balance,” E.U. leaders wrote, adding that auto tariffs would “damage further the reputation of the United States.”
Trump is now engaged in trade fights with most of the world’s major economies, including China, the European Union and Japan. Although Trump speaks periodically with leaders from these nations, formal trade talks have stalled with most of them as the two sides remain far apart and foreign countries say Trump’s wishes are unclear.
Trump's going to "win" this trade war no matter how many thousands, if not millions, of US jobs it costs. On top of all this, Trump wants the GOP Congress to pass a bill that would effectively allow Trump to go around the World Trade Organization and unilaterally make tariff decisions at will.
Amazingly enough, the draft legislation is currently titled the "United States Fair and Reciprocal Tariff Act" which for those of you playing at home means that the bill would be the US FART Act.
This is who is running things in Washington right now, guys.
A walking fart joke.