Free Republic

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...

“Everyone Should Start Preparing For This....l Thomas Sowell” - They told you tariffs would destroy the economy. They told you foreign partnerships were sacred. They told you Donald Trump didn’t understand trade. But now—just months after the media assured us he was politically finished—he’s back at the negotiating table, and this time, he’s rewriting the rules in a way they never thought possible. On July 2nd, 2025, with almost no media fanfare, Trump announced a groundbreaking trade deal with Vietnam: 20% tariffs on all imports, 40% on transshipped goods—which are China’s favorite loophole—and in return, Vietnam will allow American exports...

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...

The federal government posted an unexpected budget surplus in June, fueled by a sharp rise in tariff revenues and higher-than-anticipated tax receipts, marking a notable vindication for President Donald Trump’s economic strategy. The $27 billion surplus reported Friday by the Treasury Department stood in stark contrast to forecasts for a $50 billion deficit, representing one of the largest upside surprises in recent budget data. Monthly surpluses typically occur in April, when many Americans file their taxes. Surpluses are also common in January and September. A June surplus is highly unusual. Much of the improvement stemmed from a 301 percent increase...

Brazil threatened to hit back against Donald Trump’s plan to introduce 50% tariffs on its exports with its own 50% tariff on US goods, setting the stage for a precipitous trade war. “If he charges us 50%, we’ll charge him 50%,” Luiz Inácio Lula da Silva, the Brazilian president, told local news outlet Record, a day after Trump threatened to impose steep duties on Brazilian goods and accused the country of conducting a “witch-hunt” against its former president Jair Bolsonaro, who is facing a trial over his attempt to overturn his 2022 election defeat. Brazil could appeal to the World...

When President Trump announced tariffs in April, officials in Kazakhstan were surprised to see their country on the list. Kazakhstan, a resource-rich country that borders Russia and China, does a minimal amount of trade with the United States. And based on how Kazakh government officials interpreted Mr. Trump’s new policies, more than 90 percent of its exports to the United States would be exempt from the tariff. American officials have spent much of the last decade promising money and support to prod the country to open up its economy, especially mining. "Many in the region saw the U.S. as 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...

On Tuesday, President Trump told reporters he plans to raise tariffs on copper to 50 percent. Copper futures surged by 17 percent shortly afterwards—the largest intraday gain since at least 1988. Many will make—or lose—a small fortune on Wall Steet in the coming days and weeks. No doubt, the winners will gas-up the Presidency for protecting America’s economy: tariffs are good! Meanwhile, the losers will accuse him of economic illiteracy: tariffs are bad! Which is it? Are tariffs good or bad? The answer: both. Tariffs are good when they promote economic growth or economic self-sufficiency. If not, then tariffs are...

Treasury Secretary Scott Bessent on Tuesday said the U.S. has taken in about $100 billion in tariff income so far this year, and this could grow to $300 billion by the end of 2025 as collections accelerate from President Donald Trump's trade campaign. Bessent, speaking to a White House cabinet meeting, said the major collections from Trump's new tariffs only started during the second quarter, when Trump implemented a near universal 10% duty on U.S. imports and boosted duties on steel, aluminum and autos. "So we could expect that that could be well over $300 billion by the end of...

President Trump sure knows how to spoil an economic mood. Three days after he signed the GOP’s big budget bill, saving the economy from a scheduled $4.5 trillion tax increase, Mr. Trump was back playing the role of Tariff Man. On Monday he announced 25% tariffs on Japan and South Korea, while adding to renewed will-he-or-won’t-he uncertainty for the U.S. economy and trading partners. In letters to Japan’s Prime Minister and South Korea’s President, Mr. Trump huffs and puffs again about bilateral trade deficits, which he mistakenly thinks are a sign of foreign exploitation. “We must move away from these...

The Trump Administration has extended the global trade negotiation deadline to August 1, 2025. So far, less than a handful of countries have been able to work out interim deals, including the United Kingdom, Vietnam, and (ironically) China. A few others, like India, have offered zero-for-zero tariffs with the United States—free trade, at least on paper. President Trump’s team has so far avoided making any “free trade” deals. They are right to be skeptical. Why? Real global free trade—much like real communism—has never been tried! And this is not for lack of trying. It’s because it is impossible. In reality,...

A new CESifo working paper, blandly titled “Making America Great Again? The Economic Impacts of Liberation Day Tariffs,” lands with all the drama of a footnote—until you read what it actually says. If the U.S. can impose tariffs without sparking retaliation, it can come out ahead. Higher wages. Smaller trade deficit. Slightly lower taxes. A net gain in welfare. That’s not a MAGA slogan. That’s a math-based result. The study, authored by economists from UC Davis, the Norwegian School of Economics, Indiana University, and the University of Milan, builds a global trade model to simulate Trump’s April 2 tariff policy—what...

While Canada may not be affected by Trump's 'Liberation Day' tariff deadline for July 9, the two countries still have to work out the details of their own agreement by July 21.

Financial markets are on edge, but White House officials say they anticipate “a lot of deals very quickly.”President Donald Trump on Monday threatened 25 percent tariffs on imports from Japan and South Korea, the first of what he said would be a series of higher duties unveiled by the White House as it continues negotiating trade deals with dozens of countries. In a pair of letters posted on Truth Social, his social media site, Trump said the United States “has agreed to continue working with” each country despite large trade deficits. “Our relationship has been, unfortunately, far from Reciprocal,” he...

President Trump said nations that support the group’s “Anti-American policies” would face an additional 10 percent tariff. He did not elaborate.President Trump threatened late Sunday to impose an additional tariff on countries that align themselves with the policies of BRICS nations, after the group expressed “serious concerns” over countries imposing unilateral tariffs.“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Mr. Trump said in a Truth Social post. He did not elaborate, nor did he say what BRICS policies he was referring to.The BRICS...

President Trump’s threat to put new tariffs on countries embracing the policies of the Brics group has added fresh uncertainty to global trade and prompted pushback from Moscow and Beijing. Trump posted on social media that countries aligning themselves with “the Anti-American policies of Brics, will be charged an ADDITIONAL 10% Tariff.” -snip- Responding to Trump’s threats, a spokeswoman for China’s Foreign Ministry stated on Monday its oft-repeated line that trade wars and tariff wars have no winners. Brics “does not target any country.” The Kremlin echoed those remarks, saying that Brics “has never been and will never be directed...

The United States will impose 25% blanket tariffs on imports from Japan and South Korea starting Aug. 1, President Donald Trump revealed Monday. Trump, in a pair of Truth Social posts, shared screenshots of letters apparently sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung dictating the new tariff rates. The two form letters appear to be the first of what Trump said could be as many as 15 letters sent between Monday and Wednesday, the deadline when his so-called reciprocal tariffs on dozens of countries were scheduled to snap back to the higher levels he...

What a week he is having! Or month. Or first five and a half months of his presidency. The “he” of whom I speak, is, of course, President Donald J. Trump. Has any president ever had a couple of weeks like the past two for Trump? Has any president ever had such a torrid and impactful start to his term? The border is secure, something many thought impossible a relative blink of an eye ago. The stock market -- S&P 500 and Dow Jones Industrial Average alike -- is at an all-time high. Tariffs have brought in large sums of...

With U.S. tariffs on steel, aluminum and light-duty vehicles continuing to batter the Canadian automobile industry, the CEOs of Canada's big three automakers are asking for a break. They met with Prime Minister Mark Carney this week to lobby for the elimination of the Liberal government's zero-emission vehicle (ZEV) mandate. Maintaining it, they say, will cripple their companies and put thousands of jobs at risk. Carney cancelled Canada's digital services tax last weekend to keep trade negotiations going with the U.S. Could the ZEV mandate also be removed to help an auto industry bleeding from the trade war? And what...

Unfortunately, this lesson is also lost on America’s leaders. America is selling hundreds of billions worth of assets—everything from shares in New York’s largest companies to Iowa’s best farmland—every year to pay for our trade deficit. For example, foreign investors now own some 40% of all U.S. equities. This has skyrocketed up from just 12% in 2007. Likewise, Americans are selling enormous amounts of real estate to pay for foreign production. In 2019 alone, foreigners purchased $183 billion in American real estate. America is selling its heritage and its economic lifeblood for cheap Chinese trinkets. We are selling our soul...