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One key motivation for imposing tariffs on imported goods is to protect U.S. firms from foreign competition. By taxing imports, domestic prices become relatively cheaper, and Americans switch expenditure from foreign goods to domestic goods, thereby expanding the domestic industry. In a recent Liberty Street Economics post, we highlighted that our recent study found large aggregate losses to the U.S. from the U.S.-China trade war. Here, we delve into the cross-sectional patterns in search of segments of the economy that may have benefited from import protection. What we find, instead, is that most firms suffered large valuation losses on tariff-announcement...

I do not have an economics degree from Boston University, like AOC, and I’m not a professional economist by trade. I only play one. Nevertheless, here are five cases for Trump’s tariffs.1. As we saw last week with his new tariffs on Mexico, Canada, and China, Trump’s plan is to use tariffs punitively, to alter behavior.The president-elect said that he would impose across-the-board tariffs on Day 1 and that they would stay in place until Canada, Mexico and China halted the flow of drugs and migrants.All three countries have wittingly produced fentanyl (China) or aided in the smuggling and distribution...

President-elect Trump suggested to Canadian Prime Minister Justin Trudeau last week that if a tariff for failing to address trade and immigration issues would kill the neighbor to the north’s economy, maybe it should become the 51st state, sources told Fox News. Last Friday, Trudeau flew to Mar-a-Lago unannounced after Trump threatened to impose sweeping tariffs on Canadian products. Specifically, Trump is threatening to impose 25% tariffs on Canada and Mexico over their failures to curb the flow of illegal immigrants and illicit drugs from those countries into the U.S. Now, new details are beginning to emerge about the meeting...

Russia and China could face economic chaos after Donald Trump threatened BRICS nations with 100% tariffs on US imports. The nine-strong alliance led by Russia and China, including Brazil, India, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates, has expressed frustration with the dominance of the US dollar. According to the IMF, nearly all commodities, including oil and crops, are traded using the US dollar, accounting for around 58% of all foreign exchange reserves. The bloc is set to be joined by applicants Turkey, Azerbaijan, and Malaysia. It has said it wants to trade in non-dollar currencies to...

President Trump is, for all intents and purposes, already President of the United States again. Donald Trump is effectively running the country right now, and we're so much better off because of it. World leaders rightly recognize that Trump is in charge, and they're running down to Mar-a-Lago (the real White House) to make deals that protect our borders and people. https://t.co/ejEp96J3pN— James Fishback (@j_fishback) November 29, 2024Barring Biden handing over nuclear weapons to Ukraine--and yes, the administration has been discussing that possibility--the transition from one administration to the next has already happened in the eyes of the world. If...

Tariffs, Bitcoin, 2032, last election? More….

Earlier this week, as we covered at the time, President-elect Donald announced tariffs on Canada and Mexico, citing concerns with fentanyl and "Open Borders." Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum were quick to scramble to address such matters, with Trudeau stressing to reporters on Tuesday morning that he had had "a good call" with Trump. Just days after that, on Friday, it was revealed that Trudeau traveled to Mar-a-Lago. 🚨 #BREAKING: Canadian PM Justin Trudeau has just arrived at Mar-a-Lago to have dinner with President TrumpTrump isn’t even in office yet, and world leaders are ALREADY...

Is far-left Canadian Prime Minister Justin Trudeau about to bend the knee to President-elect Trump even before he takes office? Trudeau arrived in West Palm Beach a short time ago to meet President Trump for dinner at Mar-A-Lago for dinner. The visit comes as Trump has vowed to impose 25% tariffs on all products from Canada and Mexico until the illegal alien invasion. As The TGP previously reported, more than 15 million illegal aliens – poured over the border since Joe Biden assumed power in January 2021. Below is footage of Trudeau arriving in West Palm Beach: Canadian PM Justin...

Prime Minister Justin Trudeau's plane landed in West Palm Beach, Fla., this evening, not far from where incoming U.S. president Donald Trump's transition team is based at his Mar-a-Lago estate. The Prime Minister's Office is refusing to comment on whether the two are meeting. This comes days after Trump threatened to impose a 25 per cent tariff on all imports from Canada and Mexico unless the two countries stop migrants and illegal drugs from crossing the border. Trudeau and Trump spoke on the phone Monday evening after the president-elect made the threat on social media. Trudeau also convened an emergency...

Yesterday, it was CNN scaremongering Trump's tariffs, absurdly claiming they would raise Walmart prices by 250%. Today, it was Morning Joe's turn to trash Trump's tariffs. The show ran a segment on the tariffs featuring Hallie Jackson of NBC News. Every point Jackson made about the tariffs was negative. [snip] Jackson offered her notion of an economics lesson: "Remember, tariffs are a tax on things other countries send here. And those other countries don't pay the tax directly. It gets passed down to companies instead—and often to you.That last warning was accompanied by a finger literally pointing at the viewer...

Mexico President Claudia Sheinbaum, who has pledged to have a good working relationship with President-elect Donald Trump once he takes office, has responded to Trump's statement on November 25, 2024, in which he promised tariffs on Mexico and Canada due to their allowing illegal immigration and the flow of drugs across their borders into the United States to go unchecked.MORE: Trump Pledges Tariffs on Canada, Mexico, and China in Sweeping Trade Policy Announcement As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before. Right now a Caravan coming...

MEXICO CITY -- President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of its own, after U.S. President-elect Donald Trump threatened to impose 25% import duties on Mexican goods if the country doesn’t stop the flow of drugs and migrants across the border. Sheinbaum said she was willing to engage in talks on the issues, but said drugs were a U.S. problem. “One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said, referring to U.S. automakers that have plants on both sides of the border. She said...

On CNN This Morning, CNN senior political analyst Mark Preston warned that under Trump's proposed tariff increase on China, "when you go to Walmart, you're not going to get something for like $3.99. It's going to be $13.99." That's a 250% price increase! Trump has proposed increasing existing tariffs on Chinese goods by only 10%. So Mark, where's the additional 240% coming from? CNN correspondent Jeff Zeleny agreed with Preston's absurd scaremongering: "Exactly." Get the rest of the story and view the video here.

President-elect Donald Trump made raising tariffs on imported goods a tenet of his reelection campaign. And while that could raise prices on everything from jeans to children’s toys for everyday Americans, Trump has also floated the idea of another tariff that could impact Wall Street’s current favorite trade: AI. During an appearance on Joe Rogan’s podcast ahead of the election, Trump lambasted the idea of the CHIPS Act, a bipartisan piece of legislation Biden signed in 2022 designed to bring semiconductor manufacturing back to the US. He called it “so bad.” Instead of using legislation and billions in subsidies to...

In a bold declaration, President-elect Donald Trump announced plans to impose sweeping tariffs on America’s largest trading partners, Canada and Mexico, along with additional duties on Chinese imports. These measures are set to take effect on his first day in office, underscoring his commitment to reshaping U.S. trade policy.Trump detailed a 25 percent tariff on all imports from Canada and Mexico, citing the ongoing issues of illegal immigration and the trafficking of illicit drugs like fentanyl. On Truth Social, he declared, “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge...

There is another caravan of illegal aliens approaching the U.S. southern border through Mexico. President-elect Donald Trump wants the Mexican government to stop this nonsense immediately. To put teeth into his demand, President Trump has announced a 25% tariff on all imported goods from Mexico and Canada until they secure their side of the border and stop illegal aliens from getting here.

Sibanye Stillwater, the South African company that operates the nation’s only major palladium mine in south-central Montana, said Thursday that it plans to lay off about 40% of its Montana workforce as it scales back its operation in an effort to offset losses caused by low metal prices. In a letter to workers, U.S. Executive Vice President Kevin Robertson said the company will halt mining at the west section of its Stillwater mine southwest of Columbus until prices rise. It also plans to restructure operations at its East Boulder mine south of Big Timber and its Columbus-area processing and recycling...

Tariffs have a long and storied history as both a revenue-raising tool and a way of protecting strategically important industries in our country. For months, economic commentators parroted the Harris campaign’s misleading talking point that tariffs are a "sales tax." Like much of economists’ conventional wisdom, this view is fundamentally incorrect. The reflexive opposition to tariffs represents political ideology and advocacy, not considered economic thought. The truth is that tariffs have a long and storied history as both a revenue-raising tool and a way of protecting strategically important industries in the U.S. President-elect Trump has added a third leg to...

BlogEventsShopKnowledge Center Contact Us Store Account Blog Economics The Recession into 2028 Trump Does Not Understand The Recession into 2028 Trump Does Not Understand Posted Nov 17, 2024 By Martin Armstrong | SPREAD THE LOVE WEC 2016 Orlando QUESTION: Mr. Armstrong, thank you for the WEC. Many people feel this was your best. Your solution to save our country was spectacular, and you deserved the standing ovation. My question is that you said that Trump and RFK would not listen to you despite everything you have done. You did not explain why. May I ask why? FP ANSWER: As I...

More than 900,000 cubic yards of cheddar, American and Swiss currently sit in cold storage across the United States, enough cheese to form a wheel the size of the U.S. Capitol building. The excess is the biggest the country has seen since the government started keeping track a century ago, and it's 16 percent larger than the cheese surplus of 2016 when the government offered to buy up $20 million worth of excess cheese... "Part of it is changes in the domestic use of that milk." Another factor is trade — "a self-inflicted wound," Novakovic says. And there is growing...