Larry Kudlo: Trump tells Mexico and Canada – America first!

If President Donald Trump believes that Mexico and Canada are destroying the national security of America by not helping us in the border enough to prevent illegal crossings and flow of fentanel and other drugs, or not to help us defeat the Mexican Cartitals – then I think it is a completely right to use the difficult tariff diplomacy from before 25 % definitions are slapped on both countries.

This includes 10 % increased customs tariffs on China, which supplies the components of the fentanel drugs that are then manufactured in Mexico and sent via the American line. China also sabotage The free trade deal in North America USMCA By building plants in Mexico and then throwing cheap cars in the United States, without adhering to local content and other rules.

With today’s announcement of the press secretary Caroline Levit that President Trump has decided and will impose these definitions tomorrow, this is clear that the President’s conclusion.

Whether he has any specific measures in mind in relation to illegal border crossings, drugs, or sex trafficking, they still have to be seen. Whether he will participate in additional negotiations with Canada and Mexico is still seen.

But he put the law. Definitions are a legitimate tool for engaging in national security policy as well as economic policy.

It is assumed that, if Mexico and Canada meet the requirements of Mr. Trump, the definitions can be raised. But we do not know that. We are waiting for a kind of statement from the president himself, perhaps tonight or tomorrow.

By the way, Mexico’s relations with China have become a big problem. Mexican imports from China have increased by 50 % over the past five years. Chinese investment in Mexico rises the same 50 %. UsMCA rules should be changed to put explicit restrictions on Chinese content.

Currently, the United States runs a $ 170 billion commercial deficit with Mexico, and continues in many product groups.

Canada is a different story. The United States runs a commercial deficit from $ 60 to 70 billion dollars with them, but if energy is removed, we already have a surplus with Canada – including car commodities and manufacturing. 60 % of US oil imports come from Canada.

But Canadian oil companies provide us with a 20 % discount because their heavy raw is refined to gasoline and diesel fuel. As some oil experts indicate, the customs tariff by 25 % gives 20 % discount. And they are afraid Gasoline prices in the Middle West The northern states can jump by 40 to 75 cents. Therefore, the oil industry hopes to obtain a 25 % customs tariff.

In The Treiff News announced by Mrs. Levitte, Dow Jones decreased 330 points. Wall Street continues to believe that the customs tariff is inflating.

As I suggested before, it is not.

Certainly, there may be some simple increases once for the product. But exporters of the United States will carry 50 % or more than increased customs tariffs by reducing their prices for sale to consumers and American companies. This was our experience with China during the first period of Trump.

The only way you will do inflation in any sustainable way is that the federal reserve maintains a wide open printing press.

In Mr. Trump’s social position on Wednesday, the Federal Reserve criticized Failure to stop huge inflation This destroys the ability to withstand the costs of blue collar with 20 % of prices over the past four years.

But Mr. Trump’s economic program of lower tax rates, abolition of restrictions, energy production, and major discounts in federal spending and constant current bureaucracy, is in itself a opposite of inflation and tables. This is why inflation is not the issue.

Yesterday, Mr. Trump published on the social truth that he would not tolerate any alternative to the great US dollar in international trade. Threaten 100 % tariffs on the so -called BRICS Countries – Brazil, Russia, India, China and South Africa. King of the dollar is also an inflation.

Instead, the diplomacy of the customs tariff for Mr. Trump directed to protect US national security – and its economic security.

He insists … that America comes first.