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justaprogressive

(4,731 posts)
Tue Jul 15, 2025, 10:44 AM Jul 15

Tariff Tantrums



Donald Trump has now ordered new tariffs of 30 percent against exports of the EU and Mexico, and 35 percent against Canada, as well as higher tariffs against more than a dozen other countries including close allies Japan and South Korea. The abrupt announcement of the new duties to take effect August 1, posted on Truth Social, caught diplomats by surprise, including Trump’s own negotiators.

Why would a president snatch defeat out of the jaws of victory when tariff negotiations with our closest trading partners were close to bearing fruit? Because for Trump, supposedly the great dealmaker, tariffs are just another toy for him to demonstrate his arbitrary power. A deal ends the fun.

Will he just continue this game of making extreme threats and then suspending them for a few weeks, in this latest case until August 1, and then chickening out? Perhaps, but the world’s other trading nations are getting increasingly weary of getting stiffed after bargaining in good faith. The world’s other leaders are starting to plan for a kind of globalization that excludes the United States.

That would be an economic depressive for everyone. It would leave China in an even stronger position. The EU would make deals with nations genuinely hostile to the U.S.

In the meantime, even the relatively modest tariffs that Trump has already imposed are starting to do real economic damage. As Jared Bernstein has reported, GDP growth is on track to be just 1 percent this year, down from 3.2 percent in 2023 and 2.4 percent last year. Even the 10 percent baseline tariff in effect since April has been raising consumer prices. Core inflation is expected to be 3.2 percent this year, up from 2.2 percent last year.


https://prospect.org/blogs-and-newsletters/tap/2025-07-14-tariff-tantrums/
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Bev54

(12,669 posts)
2. This was more chest puffery on Trump's part. His 35% on Canada was for goods not under the current USMCA
Tue Jul 15, 2025, 12:31 PM
Jul 15

which accounts for only about 6% of goods crossing the border and I will suggest that many of those will have already found new trading partners. I don't know much about the trade with Europe but I do know they are ready to put the US in the back mirror.

I don't know how things will turn out with Canada but if we can get the main trades such as auto, steel and aluminium at a low or zero tariff and offset with energy and possibly some minerals then we will be ok. We have already found many new trading partners for other goods, including food.

CANADIANBEAVER69

(694 posts)
3. I read a story about Ontario
Tue Jul 15, 2025, 02:29 PM
Jul 15

shipping BC cherries to the province, instead of getting them from the USA. The tariffs have opened up our own provincial trading and we are definitely going to take advantage of the "new" markets available to Canadian companies now that the TSF regime has turned on Canada.

Bev54

(12,669 posts)
4. BC had a bumper cherry crop this year and I suspect they will start growing more as long as they can get
Tue Jul 15, 2025, 02:58 PM
Jul 15

the higher prices. They ship a lot of large cherries to China and I have heard they are getting up to $20. per lb. I haven't confirmed that but the fact that they use helicopters at $2500 per hour to dry the cherries after the rains leads me to believe they are getting a lot of money. I used to live in the heart of orchard country in BC and they used helicopter sparingly and when they started it was much cheaper. I hope they grow more because I will take BC cherries over any other and the demand has pushed up the price.

CANADIANBEAVER69

(694 posts)
5. Just got back from Osoyoos at the beginning of the month
Tue Jul 15, 2025, 03:18 PM
Jul 15

Yes the cherries are a bumper this year. Selling roadside in Keremeos for $20 for 10lbs. Nice deal for sure.

Bev54

(12,669 posts)
6. Yeah I miss buying straight from the farms, or there were a lot of upick for cheaper.
Tue Jul 15, 2025, 03:21 PM
Jul 15

That is why they use helicopters to prevent splitting so they don't lose this important crop.

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