Free Republic

Economists across the political spectrum predicted that President Donald Trump’s trade negotiations would end in disaster. Now that his August 1 deadline has passed without the sky falling — and with multiple advantageous deals completed — it’s time to seriously reevaluate the flawed arguments the experts made against his strategy. Many, it turns out, made basic errors in economic reasoning. On the left, Nobel laureate and Columbia professor Joseph Stiglitz declared in January that Trump’s policy was “very bad for America and for the world,” while University of Michigan economist Justin Wolfers called it “impressively destructive.” On the right, prominent...

The United States' 15% tariff on EU goods could reduce the value of alcohol sales by almost $2 billion and put 25,000 U.S. jobs at risk, a group of 57 alcohol industry groups wrote in a letter sent to President Trump on Tuesday. The letter was signed by organisations representing major European producers, including Diageo and Pernod Ricard, U.S. whiskey and wine producers, as well as glass suppliers, retailers and restaurants. Washington and Brussels agreed last month to a 15% import tariff on most European Union goods after talks that halved the threatened rate and averted a bigger trade war....

He further indicated that he would not impose retaliatory tariffs on the U.S. Brazilian President Luiz Inacio Lula da Silva has declined to personally call President Donald Trump to resolve the ongoing trade dispute, telling Reuters that to do so would be a "humiliation.""The day my intuition says Trump is ready to talk, I won't hesitate to call him," he told the outlet. "But today my intuition says he doesn't want to talk. And I'm not going to humiliate myself."He further indicated that he would not impose retaliatory tariffs on the U.S. Trump slapped the South American nation with a...

Shock turns into outrage. Europeans feel they’ve been duped by Donald Trump. But the trade deal merely lays bare the EU’s accelerating loss of power. Anyone familiar with German politics has long known that Ursula von der Leyen, President of the European Commission, is no political heavyweight. Her record as Germany’s family and defense minister speaks for itself. She lacks the intellectual and strategic abilities to navigate or reform complex systems. Yes, she was outplayed by Trump during the trade negotiations -- as expected. But this misses the point. What Europeans are loudly lamenting is not just a bad deal,...

WASHINGTON (AP) — Appellate court judges expressed broad skepticism Thursday over President Donald Trump’s legal rationale for his most expansive round of tariffs. Members of the 11-judge panel of the U.S. Court of Appeals for the Federal Circuit in Washington appeared unconvinced by the Trump administration’s insistence that the president could impose tariffs without congressional approval, and it hammered its invocation of the International Emergency Economic Powers Act to do so. “IEEPA doesn’t even mention the word ‘tariffs’ anywhere,” Circuit Judge Jimmie Reyna said, in a sign of the panel’s incredulity to a government attorney’s arguments. Brett Shumate, the attorney...

President Trump’s executive order carved out a special tariff on goods shipped indirectly to the United States by way of other countries.Ever since President Trump began raising tariffs on goods from China during his first term, Chinese companies have raced to set up warehouses and factories in Southeast Asia, Mexico and elsewhere to bypass U.S. tariffs with indirect shipments to the American market via other countries.But on Thursday, Mr. Trump took aim at all indirect American imports, which he blames for part of the $1.2 trillion U.S. trade deficit. The president imposed 40 percent tariffs on so-called transshipments, which will...

The historic trade deal between the U.S. and the European Union agreed upon in Scotland marks a significant shift in the transatlantic relations. After the 2024 triumph of the conservative patriots in the United States, the long-standing alliance between Western democracies began collapsing.European nations, well-known for their restraint in foreign policy, led the way to cautious denial of the new American vision, which President Trump called “the complete restoration of America.” It comes as a stunning change to the American people, especially given the fact that Europe’s high living standards are largely based on the U.S. support, dating back to...

As President Donald Trump enters the final days before his global trade deadline, tariff revenues have climbed to a record $150 billion so far this year. The U.S. collected nearly $28 billion in customs duties in July, the highest monthly total so far this year, according to the Treasury Department’s "Customs and Certain Excise Taxes" data. The July figures, based on data through July 25, have already surpassed June’s monthly record of $27 billion. In January, tariff revenues hovered around $7.9 billion and more than doubled in April to $16.3 billion. The revelation comes as Trump enters the final week...

No economy rises or falls for just one reason, even a shock as big as Donald Trump’s trade policy, says Ruchir Sharma for the Financial Times.At the beginning of the year, the world was in striking agreement on one point: If Donald Trump went ahead with tariffs, it would strengthen the dollar and trigger stagflation. Chief executives, investors and commentators all said the same. Economists estimated that every percentage point increase in the tariff rate would shave 0.1 per cent off US growth and add 0.1 per cent to inflation. But so far, the consequences have been far less disruptive...

The president’s vision for reshaping global trade is falling into place, but he is embarking on an experiment that economists say could still produce damaging results.Over the last six months, the United States has left behind the global trade order that persisted for decades in favor of something drastically different and largely untested. Formidable economies like the European Union and Japan have abruptly made peace with higher tariffs on their exports, acquiescing to President Trump’s demands in order to avoid damaging trade wars and to coax even steeper U.S. duties down just a little bit. As major economies fall in...

U.S. President Donald Trump on Tuesday announced a new 19% tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr. to the White House, saying U.S. goods would pay zero tariffs. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator." Trump said the two Pacific allies would also work together militarily but gave no details. Marcos, the...

President Donald Trump said Tuesday he and President Ferdinand Marcos Jr. of the Philippines have reached a trade agreement. Shortly after, he also revealed more detailed terms of an agreement with Indonesia. Both agreements call for 19% tariffs on goods the US imports from the two countries, paid by American businesses, while American goods shipped there won’t be charged a tariff. Trump’s announcement of the agreement with the Philippines came after he met with President Ferdinand Marcos Jr. at the White House on Tuesday. “It was a beautiful visit, and we concluded our Trade Deal,” Trump wrote on his social...

CEOs and foreign leaders are scrambling to figure out new rules for global commerceMajor U.S. corporations and trading partners are scrambling to adapt to a new global economy, even as President Donald Trump mulls the imposition of historic tariffs in less than two weeks. Conagra Brands, owner of Hunt’s, Duncan Hines and Birds Eye, plans to raise prices on canned goods after “suffering a tremendous amount of inflation due to tariffs on tinplate steel,” its chief executive told investors this month. Tariffs are causing Fastenal, an industrial supplier, to split its imports into separate shipments to Canada and the United...

While headlines chase shadows and social media churns with conspiracies about Jeffrey Epstein, something far more serious—yet underreported—is unfolding: America just ran a budget surplus in June.That’s right — the U.S. government, long buried under record-breaking deficits, posted a $27 billion surplus, the first for that month in eight years. And it wasn’t a fluke. It was driven largely by one policy move: tariffs.Back in April, critics warned that Donald Trump’s newly announced “Liberation Day” tariffs would tank the economy.Instead, those tariffs have proven to be a financial engine.Trump invoked the International Emergency Economic Powers Act (IEEPA) to declare a...

Most Canadians want the government to take a “hard approach” in negotiations for a trade deal with U.S. President Donald Trump as he threatens to slap a 35-per-cent tariff on products by Aug. 1, a new survey suggests. “For Prime Minister Mark Carney and the Canadian negotiating team, the approach appears to centre on keeping their head down rather than their elbows up,” according to the Angus Reid Institute in a report about the survey released Tuesday. “Canadians appear to want more push back.” Three-in-five respondents said Canada should take a “hard approach,” at 63 per cent, rather than a...

This morning I finalized an important Deal with the Republic of Indonesia after speaking with their Highly Respected President Prabowo Subianto. This landmark Deal opens up Indonesia’s ENTIRE MARKET to the United States for the first time in History. As part of the Agreement, Indonesia has committed to purchasing $15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777’s. For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people. In addition, Indonesia will pay...

The U.S. government posted a surplus in June as tariffs gave an extra bump to a sharp increase in receipts, the Treasury Department said Friday. With government red ink swelling throughout the year, last month saw a surplus of just over $27 billion, following a $316 billion deficit in May. That brought the fiscal year-to-date deficit to $1.34 trillion, up 5% from a year ago. However, with calendar adjustment, the deficit actually edged lower by 1%. There are three months left in the current fiscal year. A 13% increase in receipts from the same month a year ago helped bridge...

The EU is prepared to take the necessary steps to safeguard its interests if the U.S. proceeds with imposing a 30% tariff on European goods starting Aug 1, European Commission President Ursula von der Leyen said on Saturday. Von der Leyen, who heads the EU's executive arm, said in a statement that the bloc remained ready "to continue working towards an agreement by Aug 1". "Few economies in the world match the European Union's level of openness and adherence to fair trading practices," she continued. "We will take all necessary steps to safeguard EU interests, including the adoption of proportionate...

President Donald Trump on Saturday announced he's levying tariffs of 30% against the European Union and Mexico. Trump announced the tariffs on two of the United States' biggest trade partners in letters posted to his social media account. In his letter to Mexico's leader, Trump acknowledged that the country has been helpful in stemming the flow of undocumented migrants and fentanyl into the United States. But he said the country has not done enough to stop North America from turning into a "Narco-Trafficking Playground." Trump in his letter to the European Union said that the U.S. trade deficit was a...

President Donald Trump announced a 35 percent tariff on Canadian imports starting August 1. The president's bold move is aimed at reinforcing the principle of putting America first, ensuring that American businesses can compete on a level playing field, and that workers receive the support they deserve. On Thursday, Trump revealed that the new tariffs would target Canadian goods entering the U.S., framing the move in response to “Canada’s retaliation” and persistent trade obstacles. In an official letter, he explained the reasons behind the sharp increase in tariffs, accusing Canada of not cooperating on critical matters—especially the flow of fentanyl...