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    Canada leaders agree to unite against Trump tariff threat amid reports of retaliatory measures

    Canada’s federal government and the premiers of the 10 provinces have agreed to work together against a threat by US president-elect Donald Trump to impose sweeping tariffs on Canadian imports, with one official saying the country was already examining possible retaliatory measures.“We agreed that we need to be smart, strong and united in meeting this challenge,” deputy prime minister Chrystia Freeland told reporters on Wednesday after a virtual meeting with the premiers called by the prime minister, Justin Trudeau.Trump has threatened to impose tariffs on products from Canada and Mexico if the countries do not stop what he called the flow of drugs and migrants across southern and northern borders. He said he would impose a 25% tax on all products entering the US from Canada and Mexico as one of his first executive orders.Canada is already examining possible retaliatory tariffs on certain items from the United States should president-elect Donald Trump follow through on his threat, the Associated Press reported, citing a senior official.Mexican President Claudia Sheinbaum said on Wednesday that her administration is already working up a list of possible retaliatory tariffs “if the situation comes to that”.The Canadian official said Canada was preparing for every eventuality and has started thinking about what items to target with tariffs in retaliation. The official stressed no decision has been made and spoke on condition of anonymity as they were not authorised to speak publicly.The pledge to impose tariffs on Canada would drive up fuel prices for Americans as it would upend decades-old oil trade from its top crude supplier, analysts said on Wednesday, with Canadian oil imports not exempt under a free-trade deal from the levies.Even as surging oil output to record highs has made the US the world’s largest producer in recent years, more than a fifth of the oil processed by US refiners is imported from Canada.In the landlocked US midwest, where refineries process 70% of Canadian crude imports, consumers could see pump prices jump by 30 cents per gallon or more, or about 10%, based on current prices, GasBuddy analyst Patrick De Haan said.Cheaper gasoline was among Trump’s priorities during his re-election campaign as he sought to connect with consumers frustrated by sky-high fuel prices in the aftermath of the coronavirus pandemic, Russia’s invasion of Ukraine, the war in Gaza and other supply disruptions.When Trump imposed higher tariffs during his first term in office, other countries responded with retaliatory tariffs of their own. Canada, for instance, announced billions of new duties in 2018 against the US in a tit-for-tat response to new taxes on Canadian steel and aluminium.Many of the US products were chosen for their political rather than economic impact. For example, Canada imports $3m worth of yoghurt from the US annually and most comes from one plant in Wisconsin, home state of then-House speaker Paul Ryan. That product was hit with a 10% duty.Another product on the list was whiskey, which comes from Tennessee and Kentucky, the latter of which is the home state of then-Republican Senate leader Mitch McConnell.Trump made the tariff threats on Monday while railing against illegal migrants, even though the numbers at Canadian border pale in comparison with the southern border. The US Border Patrol made 56,530 arrests at the Mexican border in the month of October – and 23,721 arrests at the Canadian one between October 2023 and September 2024.Canadian officials say lumping Canada in with Mexico is unfair but say they are happy to work with the Trump administration to lower the numbers arriving from Canada. The Canadians are also worried about an influx north if Trump follows through with his plan for mass deportations.Trump also railed about fentanyl from Mexico and Canada, even though seizures from the Canadian border pale in comparison to the Mexican border. US customs agents seized 43lb (19.5kg) of fentanyl at the Canadian border last fiscal year, compared with 21,100lb (9,570kg) at the Mexican border.Canadian officials argue their country is not the problem and that tariffs will have severe implications for both countries.Canada is the top export destination for 36 US states. Nearly $3.6bn (US$2.7bn) worth of goods and services cross the border each day. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports are from Canada. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.“Canada is essential to the United States’ domestic energy supply,” Freeland said.America’s top oil trade groups, the American Fuel and Petrochemical Manufacturers group and the American Petroleum Institute, said imposing the tariffs would be a mistake – exposing a rare moment of discord between the industry and Trump.“Across-the-board trade policies that could inflate the cost of imports, reduce accessible supplies of oil feedstocks and products, or provoke retaliatory tariffs have potential to impact consumers and undercut our advantage as the world’s leading maker of liquid fuels,” AFPM said on Tuesday.With Associated Press and Reuters More

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    ‘Excelente’: así fue la llamada de Sheinbaum y Trump tras la discusión arancelaria

    La presidenta de México dijo que habló con el presidente electo de EE. UU. sobre temas como migración y seguridad.La presidenta de México, Claudia Sheinbaum, dijo el miércoles por la tarde que tuvo una “excelente conversación” con el presidente electo Donald Trump, aliviando las tensiones pocas horas después de dejar claro que México impondría aranceles de represalia en respuesta a medidas similares anunciadas por Trump.“Tuve una excelente conversación con el presidente Donald Trump”, escribió Sheinbaum en redes sociales. “Abordamos la estrategia mexicana sobre el fenómeno de la migración y compartí que no están llegando caravanas a la frontera norte, porque son atendidas en México”.La actualización de Sheinbaum se produce después de que Trump sacudió las relaciones comerciales con México al decir a principios de esta semana que impondría un arancel de 25 por ciento a todos los productos procedentes del país si las autoridades mexicanas no detenían a los migrantes y las drogas, como el fentanilo, que cruzan la frontera. La medida suscitó preocupación por el posible impacto en la economía de México, que depende del comercio con Estados Unidos.Trump también publicó en las redes sociales sobre la conversación con Sheinbaum, calificándola de “maravillosa” y “productiva.”“Ella ha accedido detener la migración a través de México, y hacia Estados Unidos, cerrando efectivamente nuestra frontera sur”, dijo Trump, aunque Sheinbaum se refirió solo a que las caravanas de migrantes ya no llegan a la frontera con Estados Unidos. “También hablamos de lo que se puede hacer para detener la entrada masiva de drogas a Estados Unidos, y también, el consumo estadounidense de estas drogas”, agregó.Sheinbaum dijo previamente el miércoles: “si llega a haber aranceles, México también subiría aranceles”, dejando clara su postura sobre la posible respuesta de México.Altos funcionarios de su gobierno y figuras destacadas del partido gobernante de México, Morena, también expresaron su apoyo a los aranceles de represalia. El secretario de Economía de México, Marcelo Ebrard, dijo que se podrían perder alrededor de 400.000 empleos en Estados Unidos si Donald Trump impone los aranceles, calificando la medida como un “tiro en el pie”, al participar junto a Sheinbaum en una conferencia de prensa matutina.La presidenta de México no se refirió a los aranceles, ni a las tensiones comerciales en general, en su mensaje sobre su conversación con Trump. En cambio, dijo que ella y Trump también “hablamos de reforzar la colaboración en temas de seguridad en el marco de nuestra soberanía y de la campaña que estamos realizando en el país para prevenir el consumo de fentanilo”. More

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    Trump’s Tariff Threat Pits Canada Against Mexico

    If President-elect Donald J. Trump’s threat of hefty tariffs on Canada and Mexico was intended as a divide-and-conquer strategy, early signs show that it might be working.After his missive on Monday, in which he said he planned to impose a 25 percent tariff on all imports from both of the United States’ neighbors, Ottawa and Mexico City followed starkly different approaches.Mexico took a tough stance, threatening to retaliate with its own tariffs on U.S. goods. Canada, instead, emphasized that it was much closer aligned to the United States than Mexico.The trade agreement between the three North American nations has been carefully maintained over the past three decades through a delicate balance between the United States and its two key allies.As Mr. Trump prepares to take office, his willingness to tear that up to pressure the two countries on migration could open the door to the United States-Mexico-Canada agreement being replaced by separate bilateral deals with the United States.Chrystia Freeland, Canada’s finance minister, has tried to show that Canada is aligned with Mr. Trump’s hawkish attitude toward China.Blair Gable/ReutersWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Canada PM under pressure to stand up to Trump over tariff plan; US motorists could face higher gas prices – live

    Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”In an election post-mortem today, top Harris campaign officials said there was little else Kamala Harris could have done to win the 2024 election.Speaking on the podcast “Pod Save America”, David Plouffe, Jen O’Malley Dillon, Quentin Fulks and Stephanie Cutter said Harris couldn’t have distanced herself further from Joe Biden because she was loyal and faced backlash over inflation that’s hurt incumbent politicians across the globe this year.“She had tremendous loyalty to President Biden,” Cutter said. “Imagine if we said, ‘Well, we would have taken this approach on the border.’ Imagine the round of stories coming out after that, of people saying, ‘Well, she never said that in the meeting.’”Plouffe added that the campaign’s internal polling never showed Harris leading president-elect Donald Trump.“We didn’t get the breaks we needed on Election Day,” he said. “I think it surprised people, because there was these public polls that came out in late September, early October, showing us with leads that we never saw.”Fulks noted that Democrats could learn from how Republicans support their own, even amid controversy.“Democrats are eating our own to a very high degree, and until that stops, we’re not going to be able to address a lot of the things that just need to be said,” he said.During a thank-you call today, Kamala Harris told small-dollar donors that they helped to raise $1.4 billion over the course of her 107-day campaign.“The outcome of the election, of this election, obviously, is not what we wanted. It is not what we worked so hard for, but I am proud of the race we ran and your role was critical — what we did in 107 days was unprecedented,” she said. “The fight that fueled our campaign, a fight for freedom and opportunity, did not end on November 5th.”Harris’s running mate, Minnesota governor Tim Walz, joined the call and urged supporters to “find the place in your community to heal both yourselves and your community.” He acknowledged feels of grief that supporters might be feeling and added, “You did everything that was asked.”Donald Trump’s team has announced that it has signed transition paperwork with the White House, which the incoming administration appeared to be dodging after failing to sign the agreement by its 1 October due date. The agreement, which directs $7.2m in federal funding to the transition, requires the incoming presidential administration to agree to an ethics pledge and cap private donations.The announcement that Trump’s team had signed the memorandum of understanding with the White House came in a press release from Trump’s chief-of-staff Susie Wiles.“After completing the selection process of his incoming Cabinet, President-elect Trump is entering the next phase of his administration’s transition by executing a Memorandum of Understanding with President Joe Biden’s White House. This engagement allows our intended Cabinet nominees to begin critical preparations, including the deployment of landing teams to every department and agency, and complete the orderly transition of power,” she said.Speaking from the White House, Joe Biden has announced a ceasefire agreement between Israel and Hezbollah.“Under the deal reached today, effective at 4am tomorrow local time, the fighting across the Lebanese-Israeli border will end,” he said. “This is designed to be a permanent cesation of hostility.”Explaining the terms of the deal, Biden said, the Lebanese army will take control of the region as Israel withdraws its forces over the next 60 days. Hezbollah will not be allowed to rebuild its infrastructure. “There will be no US troops deployed in southern Lebanon,” he said, adding that the US and France would continue to provide support to Lebanon. If Lebanon fails to abide by the terms of the agreement, Biden said, Israeli retains the right to defend itself.“Now Hamas has a choice to make,” Biden said, gesturing to the ongoing war in Gaza. “Over the coming days, the United States will make another push – with Turkey, Egypt, Qatar, Israel and others – to achieve a ceasefire in Gaza.”A day after Elon Musk claimed to have met with “senior military officers,” the Pentagon told reporters it was not aware of any meetings with Trump transition officials, the Washington Post reports.“The president-elect’s transition team has not contacted the department yet to conduct those transitions, so I’m not aware of any official meetings,” Pentagon press secretary Patrick Ryder told reporters. Donald Trump’s transition team has declined to sign paperwork that would require the incoming administration to agree to an ethics pledge and cap private donations, which has slowed the transition.Yesterday, Musk claimed to have met with “senior military officers today” in a social media post responding to a statement from Vivek Ramaswamy about government efficiency.“In a meeting with senior military officers today, they told me that it now takes longer to renovate stairs (24 months) in the Pentagon than it took to build the WHOLE Pentagon (16 months) in the 1940s!!” Musk wrote.Speaking at an emergency gathering of the Canadian parliament today, Justin Trudeau urged unity while leaders of two of the country’s largest industrial and oil-rich provinces raised concerns over US-Canada relations, Reuters reports.The premier of Ontario, the country’s industrial heartland, said Trump had good reason to be worried about border security.“Do we need to do a better job on our borders? 1,000 percent … we do have to listen to the threat of too many illegals crossing the border,” Doug Ford told reporters. “We have to squash the illegal drugs, the illegal guns.”Ford has called on Trudeau to abandon the U.S.-Canada-Mexico trade deal in favor of a bilateral agreement with the US, and called Trump’s comparison of Canada to Mexico “the most insulting thing I have ever heard”.Likewise, the premier of the oil-rich province of Alberta said yesterday that Trump had valid concerns over border security.“We are calling on the federal government to work with the incoming administration to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the U.S.,” Danielle Smith said in a social media post. She added, “The vast majority of Alberta’s energy exports to the U.S. are delivered through secure and safe pipelines which do not in any way contribute to these illegal activities at the border.”A federal judge has rejected Rudy Giuliani’s request to reschedule a January trial date for after Donald Trump’s inauguration. The judge has ordered Giuliani to pay two Georgia election workers $148 million for spreading falsehoods after the 2020 election. The 16 January trial had been set to determine whether Giuliani would have to relinquish assets such as a Palm Beach condo and Yankees World Series rings to pay the judgement.“My client regularly consults and deals directly with President-elect Trump on issues that are taking place as the incoming administration is afoot as well as inauguration events,” Giuliani’s attorney Joseph Cammarata said. “My client wants to exercise his political right to be there.”“The defendant’s social calendar does not constitute good cause [to delay the trial],” US District Court Judge Lewis Liman said. He did suggest that he would be open to moving the trial forward a few days.Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”Canadian prime minister Justin Trudeau is discussing the United States’ proposed tariffs with the leader of the opposition, Pierre Poilievre, before the Canadian parliament. Poilievre has criticized Trudeau, calling on him to “put Canada first” in its relations with the United States and do more to fix Canada’s “broken borders” and “liberalization of drugs”.“The prime minister’s disastrous legalization and liberalization of drugs has the Americans worried,” Poilievre said. “Where’s the plan to stop the drugs and keep our border open to trade?”Canadian prime minister Justin Trudeau is expected to speak shortly at today’s gathering of the nation’s parliament, just a day after Donald Trump threatened to levy 25% tariffs against the US’s northern neighbor.Trudeau spoke with Trump earlier today, and said “it was a good call,” adding that they “obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth.”Donald Trump’s team is discussing pursuing direct talks with North Korean leader Kim Jong Un, hoping a fresh diplomatic push can lower the risks of armed conflict, according to two people familiar with the matter, Reuters reports.Several in Trump’s team now see a direct approach from Trump, to build on a relationship that already exists, as most likely to break the ice with Kim, years after the two traded insults and what Trump called “beautiful” letters in an unprecedented diplomatic effort during his first term in office, the people said.The policy discussions are fluid and no final decisions have been made by the president-elect, the sources said.Trump’s transition team did not respond to a request for comment.What reciprocation Kim will offer Trump is unclear. The North Koreans ignored four years of outreach by outgoing president Joe Biden to start talks with no pre-conditions, and Kim is emboldened by an expanded missile arsenal and a much closer relationship with Russia.
    We have already gone as far as we can on negotiating with the United States,” Kim said last week in a speech at a Pyongyang military exhibition, according to state media.
    During his 2017-2021 presidency, Trump held three meetings with Kim, in Singapore, Hanoi, and at the Korean border, the first time a sitting US president had set foot in the country.Their diplomacy yielded no concrete results, even as Trump described their talks as falling “in love.” The US called for North Korea to abandon its nuclear weapons, while Kim demanded full sanctions relief, then issued new threats.North Korea has sent troops to fight alongside Russia in its war with Ukraine.Donald Trump’s pledge to impose 25% tariffs on Canadian and Mexican imports in his first day in office does not exempt crude oil from the trade penalties, two sources familiar with the plan told Reuters today.Oil producers already warned that tariffs on crude would drive up the price of gas for US motorists, the FT reported earlier.“A 25% tariff on oil and natural gas would likely result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Lisa Baiton, head of the Canadian Association of Petroleum Producers, told the business-focussed newspaper.In the vagaries of the markets and geopolitics, oil prices rose earlier on news of Trump’s tariffs pledge, over predictions they would discourage production, thereby raising prices, but now have dropped slightly, Reuters reports, on news of a pending ceasefire between Israel and Hezbollah in Lebanon, apparently because Wall Streeters, leaping 10 steps ahead, imagine it could lead to a relaxing of sanctions on Iran and therefore a glut of oil supply, suppressing prices…. More

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    Mexico president vows to retaliate with own tariffs against Trump’s tax threat

    Mexico’s president, Claudia Sheinbaum, has rebuked Donald Trump’s threat to impose steep tariffs on Mexico, arguing the plan would do nothing to halt the flow of migrants or drugs bound for the US border, and vowing that Mexico would hit back with tariffs of its own.“One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said, warning that tariffs would cause inflation and job losses in both countries. “What sense is there?”Sheinbaum’s comments came after Trump said on Monday that, as one of his first actions as president, he would impose a 25% tax on all imports from Mexico and Canada in an effort to stop the flow of migrants and narcotics into the United States.“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump wrote on his Truth Social page.It is unclear if the president-elect’s proposal would even be legal or possible, given that the three countries share a free trade agreement known as the USMCA that was negotiated during his previous term in the White House.But as analysts pointed out, Trump has never been one to abide by the rules.“Did we really think that Trump was going to become more institutional or more formal?” said Valeria Moy, a Mexican economist and director general of IMCO, a public policy analysis firm. “The Trump that the United States and the world will have, at least in the signs he’s given, is a Trump that will be more dictatorial, tougher, more emboldened.”Even if they are legally questionable, the tariffs could provide Trump with a quick win upon taking office in January, said Viri Ríos, a Mexican public policy expert.“I don’t rule out that he would implement them temporarily to give a result to his electoral base, which would be happy to see that Donald Trump is being consistent with his campaign promises,” she said. “But from that to this being a long term strategy, it seems to me that it would not be good for the United States itself.”Mexico is the United States’s top trade partner as of September, representing 15.8% of total trade. According to Ríos, a 25% tariff on Mexican goods would cost the US economy $125bn over 10 years, while costing its GDP between 0.5 and 0.74%.With such steep tariffs, US companies importing Mexican goods would undoubtedly have to raise their prices.“The main victim will be the American consumer, because at the end of the day, tariffs are more or less reflected in prices,” said Moy.That could end up costing Trump politically, given the role consumer prices played in his election win.“One of the main reasons why Trump’s campaign was successful, was that people felt that inflation had increased during Biden’s last term,” said Ríos. “So I think he’s playing with fire.”Analysts also questioned whether Trump’s plan would even have its desired impact, given that the flow of drugs to the US is driven by American demand, not by the flow of goods.“It’s a bit like scapegoating,” said Ríos. “The key to this problem isn’t in Mexico, it’s in the United States.”Ultimately, analysts viewed Trump’s proposal as a threat to force Mexico on to the negotiating table and implement policies on migration and security that could have some meaningful impact on the flow of drugs and migrants to the United States.“We’ve already seen this [from Trump] – first you threaten, then you negotiate,” said Moy. “He’s using it as a threat to sit down and negotiate and say ‘Ok, you, president of Mexico … What are you going to do to contain the flow of migrants and what are you going to do in terms of security? What are you going to do to prevent fentanyl from passing from Mexico to the United States? And if you don’t do it, I’ll put tariffs on you.’” More

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    Trump’s tariff threat sets stage for bitter global trade war

    Donald Trump’s threat to impose steep tariffs on goods imported into the US has set the stage for a bitter global trade war, according to trade experts and economists, with consumers and companies warned to brace for steep costs.The president-elect announced on Monday night that he intended to hit Canada, Mexico and China with tariffs on all their exports to the US – until they reduce migration and the flow of drugs into the country.As officials in the three countries scrambled to respond, Keith Rockwell, a former director at the World Trade Organization, predicted that Trump’s move could spark a trade war. “The United States exports hundreds of billions of dollars worth of goods to these countries,” he said. “Anyone who expects that they will stand pat and not retaliate has not been paying attention.”China promptly suggested that both sides would lose from an escalation in economic tensions. “No one will win a trade war or a tariff war,” Liu Pengyu, a spokesperson at the Chinese embassy in Washington, wrote on X, formerly Twitter. Chrystia Freeland, Canada’s deputy prime minister, and Dominic LeBlanc, its public safety minister, touted the country’s “balanced and mutually beneficial” economic ties with the US.Hours after Trump issued the announcements on Truth Social, his social media platform, economists at ING released research that estimated his broader campaign proposals on trade – including a universal tariff of between 10% and 20% on all goods imported from overseas, and a 60% tariff on all goods from China – could cost each US consumer up to $2,400 each year.“This potential increase in consumer costs and inflation could have widespread economic implications, particularly in an economy where consumer spending accounts for 70% of all activity,” James Knightley of ING said.It is unclear whether Trump, who has described “tariff” as “the most beautiful word in the dictionary”, will follow through on this plan. Tariffs – levies paid for by the company importing foreign goods – are not popular with voters, even Trump’s voters. A Harris poll conducted for the Guardian found 69% of people believe they will increase the prices they pay.And while he threatened universal tariffs while campaigning for the White House, this proposal – a 25% duty on all goods from Mexico and Canada, and a 10% duty on China, on top of existing duties – is more targeted.“Trump’s statements clearly herald the dawn of a new era of US trade protectionism that will sweep many US trading partners into its ambit,” said Eswar Prasad, former head of the IMF’s China division. “Such tariffs will have a disruptive effect on US as well as international trade, as countries around the world jockey to soften the blow of US tariffs on their own economies and try to find ways to evade the tariffs.”On the campaign trail, Trump and his allies claimed such measures would help strengthen the US economy and “make America wealthy again”. Many economists took a different view, warning that sweeping tariffs would increase the price of goods for US consumers, and risk prompting other nations to retaliate, hitting US businesses exporting goods to the world.But in his announcements on Tuesday, Trump did not focus on the economic benefits has claimed tariffs would bring. Instead, he blamed Mexico and Canada for “ridiculous Open Borders” he alleged were prompting an immigration crisis, and China for “the massive amounts of drugs, in particular Fentanyl” arriving in the US – and pledged to impose tariffs on these countries until they addressed his concerns.“Trump apparently sees tariffs as a tool with broad uses in tackling a variety of malign external factors that have adverse effects on the US economy, society and national security,” noted Prasad, now a professor of trade policy at Cornell University.skip past newsletter promotionafter newsletter promotionThe billionaire hedge fund manager Bill Ackman, who endorsed Trump, wrote on X that the president-elect “is going to use tariffs as a weapon to achieve economic and political outcomes which are in the best interest of America”, in a bid to deliver on his “America First” policy strategy.Making such announcements on social media “is a great way for Trump to effect foreign policy changes even before he takes office”, Ackman claimed.As Trump builds out his broader trade strategy, Rockwell, formerly of the WTO, said a 10% universal tariff would me “more manageable” than 20%. “But if you raise it 20%, that creates a different dynamic,” he said. “You’re going to see much, much less demand for these products coming in.“There will also be, without any doubt, retaliation,” he added. European officials “have got their list drawn up”, he said. “It’s the most closely guarded secret in Brussels, but it’s drawn up.”Countries will hit back with tariffs on “political pinch points”, Rockwell predicted. Under the last Trump administration, the European Union targeted US exports including Harley-Davidson bikes, Levi’s jeans and Kentucky bourbon. More

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    Trump’s Tariff Threat Roils Global Markets

    The dollar gained and investors sold off stocks after the president-elect promised to levy new restrictions on the United States’ biggest trade partners. President-elect Donald Trump’s economic policy is already roiling global markets.Brendan McDermid/ReutersThe other Trump trade Investors and policymakers are getting a dose of Trumponomics déjà vu this morning.Global stocks are falling, and the dollar is climbing. The volatility comes after President-elect Donald Trump’s vow to impose tariffs on the United States’ biggest trading partners — Canada, China and Mexico — on Day 1 in office in an apparent effort to clamp down on the flow of cross-border drugs, like fentanyl, and migrants.The latest:Trump wants to impose 25 percent tariffs on Canada and Mexico “on ALL products coming into the United States,” he said on Truth Social. He also wants an “additional” 10 percent tariff on imports from China, which Trump blames for the fentanyl crisis, a charge that Beijing has repeatedly disputed.The Canadian dollar and Mexican peso fell sharply against the dollar. Europe, Japan and South Korea weren’t even mentioned in Trump’s announcement, but stocks have fallen there, too. That suggests rising fears that a new trade war could scramble global supply chains and dent profits.Automakers are some of the hardest hit stocks, with Volkswagen, Stellantis and Nissan, which run manufacturing operations in Mexico, all down.Today’s losses have reversed some of yesterday’s “Bessent bounce” rally. Investors were relieved after Trump picked Scott Bessent, the market-friendly hedge fund mogul, to run the Treasury Department.But the reverberations show that it’s Trump calling the shots. The president-elect has made no secret of his desire to use tariffs to further his America-first agenda, and he has yet to announce his pick to be U.S. Trade Representative. (Another tariff supporter, Robert Lighthizer, is in the running.)Trump’s latest threats may be just a negotiating tactic. That’s the belief of some Trump backers, including Bill Ackman, the billionaire financier. But they are a reminder of how Trump set off alarm bells across diplomatic channels and international markets during his first term often via social media posts. “Waking up to check the tweets for any policy announcements could become the norm,” Mohit Kumar, an economist at Jefferies, wrote in a note this morning.Prime Minister Justin Trudeau of Canada spoke to Trump about trade and border security after the president-elect’s announcement, The Times reported. China pushed back. “No one will win a trade war,” a spokesman for the Chinese Embassy in Washington said in a statement.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More