Palm Beach, Feb 1: New trade penalties against Canada, Mexico and China that President Donald Trump plans to impose Saturday represent an aggressive early move against America’s three largest trading partners, but at the risk of higher inflation and possible disruptions to the global economy.
In Trump’s view, the 25 per cent tariffs against the two North American allies and a 10 per cent tax on imports from Washington’s chief economic rival are a way for the United States to throw around its financial heft to reshape the world.
“You see the power of the tariff,” Trump told reporters Friday. “Nobody can compete with us because we have by far the biggest piggy bank.” The Republican president is making a major political bet that his actions will not worsen inflation, cause financial aftershocks that could destabilise the worldwide economy or provoke a voter backlash. AP VoteCast, an extensive survey of the electorate in last year’s election, found that the US was split on support for tariffs.
It is possible that the tariffs could be short-lived if Canada and Mexico can reach a deal with Trump to more aggressively address illegal immigration and fentanyl smuggling. Trump’s move against China is also tied to fentanyl and comes on top of existing import taxes.
Trump is honouring promises he made in the 2024 White House campaign that are at the core of his economic and national security philosophy, though Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as against copper, pharmaceutical drugs and imports from the European Union – moves that could essentially pit the US against much of the global economy.
Trump’s intentions drew a swift response from financial markets, with the S&P 500 stock index slumping after his announcement Friday.
Canada ready for Trump tariffs: Trudeau
Canadian Prime Minister Justin Trudeau said that Canada is ready to deliver a “purposeful, forceful but reasonable, immediate” response if US President Donald Trump imposes tariffs on Canadian imports, local media reported.
The prime minister, delivering remarks at a meeting of the Council on Canada-US Relations in Toronto, said his country is ready for any scenario. “It’s not what we want, but if he moves forward, we will also act,” Trudeau was quoted as saying.
Foreign Affairs Minister Melanie Joly, Public Safety Minister David McGuinty and Immigration Minister Marc Miller are all in the US capital making a final diplomatic push to convince Republican lawmakers and Trump’s team to sway the president, said the report.
Trump is expected to announce tariffs against Canada on Saturday. Trudeau previously said Canada would push back and match the tariffs on the Canadian side dollar-for-dollar. (Agencies)
US Prez fires director of Consumer Financial Protection Bureau
Palm Beach, Feb 1: President Donald Trump has fired the director of the Consumer Financial Protection Bureau, Rohit Chopra, in the latest purge of a Biden administration holdover.
Chopra was one of the more important regulators from the previous Democratic administration who was still on the job since Trump took office on January 20.
During Trump’s first term, the Republican had picked Chopra as a Democrat member of the Federal Trade Commission.
Chopra was notified of his firing in an email from the White House, according to a person familiar with the notice who was not authorised to discuss the matter publicly and spoke on condition of anonymity.
Chopra is an ally of Sen. Elizabeth Warren, one of Trump’s favourite targets, and the Massachusetts Democrat said in a statement that the agency under Chopra held “Wall Street accountable for cheating hard-working families” and prevented “the de-banking of Americans across the country, including consumers locked out of the financial system due to overdraft fees, religious organisations, and conservatives.”
Under the law, Chopra was to serve a five-year term, which meant he could have stayed on as the CFPB director. But he had publicly stated that he would leave his post if the new president asked. (AP)
