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The Dictatorship

Businesses scramble to contain fallout from Trump’s tariffs on Canada, China and Mexico

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Businesses scramble to contain fallout from Trump’s tariffs on Canada, China and Mexico

A Minnesota farmer worries about the price of fertilizer. A San Diego entrepreneur deals with an unexpected cost increase of remodeling a restaurant. A Midwestern sheet metal fabricator bemoans the prospect of higher aluminum prices.

Businesses knew that Trump’s import taxes — tariffs — on America’s biggest trading partners were scheduled to take effect Tuesday. But many of them assumed they’d get a reprieve. After all, the unpredictable president had delayed the tariffs on Canada and Mexico for 30 days right before they were originally supposed to kick in on Feb. 4.

No such luck this time.

At midnight Tuesday, the United States imposed 25% tariffs on goods from Canada and Mexico, starting a trade war with its closest neighbors and allies. Trump also doubled his 10% levies on Chinese imports in a series of moves that took U.S. tariffs to the highest level since the 1940s. Canadian energy was shown some mercy, getting taxed at a lower 10%.

The three countries promptly announced retaliatory tariffs of their own.

Commerce Secretary Howard Lutnick said later on Tuesday that the U.S. would likely meet Canada and Mexico “in the middle,” with an announcement coming as soon as Wednesday. Lutnick told Fox Business News the tariffs would not be paused, but that Trump would reach a compromise.

The longer the tariffs stick, the more damage they can do, forcing companies to decide between eating higher costs and passing them along to inflation-weary consumers. If the tariffs and the retaliation last a year, economist Kathy Bostjancic of Nationwide estimates, U.S. economic growth will be more than 1 percentage point lower and inflation 0.6 percentage points higher than they would have been otherwise.

Manuel Sotelo, who runs a Mexican truck fleet that carries goods across the southern U.S. border, didn’t expect that Trump would roll the dice on $2.2 trillion worth of American trade with Mexico, Canada and China.

“I really did think last afternoon or last night Trump would have reversed course,’’ Sotelo, who has a Trump bobblehead behind his desk, said Tuesday.

That’s in no small part because Mexico has already taken steps to address the ostensible grievances behind Trump’s Tuesday tariffs — the flow of illicit drugs and immigrants — including sending 10,000 troops to the border.

But the president went ahead with the tariffs, and now businesses are scrambling to deal with them.

David Spatafore, who owns several restaurants in San Diego, said his businesses have already been pummeled by the surging price of eggs and dairy over the last month. Tuesday’s tariffs are just the latest blow.

“Everything across the board is impacted,” Spatafore said.

One of his restaurants has also been in the middle of a remodel, which has grown increasingly expensive as tariffs hit Canadian lumber and steel.

“We were in the middle of a quote for a custom oven being made,’’ he said, when the contractor added the cost of the tariffs to his estimate. Thin margins in the restaurant industry mean it’s hard to eat the higher expenses.

“Where are you supposed to absorb it?’’ he said.

At Mission Produce in Oxnard, California, which packs avocados and mangos and distributes them to supermarkets and restaurants around the world, co-founder and CEO Steve Barnard won’t need to raise prices right away. Mission Produce still has some inventory of Mexican avocados and other produce ripening in its U.S. warehouses.

But “if this thing lasts 10 days or more, our costs will be substantially different,’’ he said. “We’ll have to come to the table and figure something out.”

Barnard expects big retailers will resist price increases, while smaller, independent chains might have to raise prices sooner because they have less pre-tariff inventory on hand.

“My company will feel an immediate, detrimental impact as a result of these tariffs,” Traci Tapani, co-president with her sister of Wyoming Machine, a sheet metal fabricator in Stacy, Minnesota that relies on Canadian aluminum, said in a statement. Tapani is the vice chair of the U.S. Chamber of Commerce’s Small Business Council. “The threats and uncertainty have made it hard to make business decisions, and these kinds of tariffs will make it extremely difficult for small businesses like mine to grow.”

In Cannon Falls, Minnesota, about 45 miles (72 kilometers) south of Minneapolis, farmer Danny Lundell is particularly worried that Trump’s import taxes will drive up the price of Canadian potash fertilizer.

“We need potash to raise healthier crops,’’ he said. “And it doesn’t matter if you’re big, medium or small, it’s going to affect you.’’

Minnesota’s Democratic governor, Tim Walz, visited Lundell’s farm Tuesday to criticize Trump for jeopardizing relationships with his state’s biggest trading partners.

Higher costs aren’t the only consequence of Trump’s trade wars. There’s also the uncertainty as the president threatens, delays and actually imposes import taxes.

“Things are unfolding so quickly,” Brian Cornell, CEO of discount retailer Targettold reporters Tuesday. “We will watch this carefully and understand: Are these long-term tariffs? Is this a short-term action? How will this unfold over time? I think all of us are speculating.’’

Uncertainty can take an economic toll as businesses delay plans to make investments and sign up new suppliers until they know which countries and which products are likely to be tariff targets.

During Trump’s first-term trade battles, U.S. business investment weakened late in 2019, prompting the Federal Reserve to cut its benchmark interest rate three times in second half of the year to provide some offsetting economic stimulus.

Adding to the uncertainty now are Trump’s plans for more tariffs, not least his call for “reciprocal tariffs” to raise U.S. duties to match higher tariffs charged by other countries. Trump could also impose more tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs.

“Everything else that’s coming down the pipeline is what adds to the uncertainty,’’ said Antonio Rivera, a partner in the international trade practice at the law firm ArentFox Schiff.

The Whiskeyjack Boutique gift shop in Windsor, Ontario, has been getting some usual customers: Americans stopping in to apologize for Trump’s decision to start a trade war with Canada.

“They are mortified by what’s happening, and they don’t support what’s going on, and they don’t like how Canada’s being kind of dragged through the mud on this,” said Katie Stokes, co-owner of the shop.

Stokes has also heard Canadians planning to cancel plans to take vacations in the United States.

“It’s almost remorseful and sad, like people are upset, and they don’t love how this is playing out,’’ she said.

____

Associated Press Staff Writers Jaimie Ding in Los Angeles; Anne D’Innocenzio in New York;, Dee-Ann Durbin in Detroit; Mike Householder in Windsor, Ontario, Canada; Megan Janetsky in Mexico City; and Steve Karnowski in Minneapolis contributed to this report.

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The Dictatorship

Judge temporarily blocks Trump’s ‘retaliatory’ order against law firm

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Judge temporarily blocks Trump’s ‘retaliatory’ order against law firm
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The Dictatorship

Trump isn’t joking about wanting to annex Canada

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Trump isn’t joking about wanting to annex Canada

Earlier this month, Canadian Prime Minister Justin Trudeau publicly said of President Donald Trump“What he wants is to see a total collapse of the Canadian economy because that’ll make it easier to annex us.”

Trudeau’s accusation was extraordinary and unprecedented. Here was the leader of Canada, one of America’s closest and longest-standing allies, accusing the U.S. president of engaging in economic warfare. More and more, however, it seems Trudeau wasn’t making this argument up. The evidence is piling up that Trump has declared economic war on Canada for the express purpose of making our Northern neighbor the 51st state.

Canada is so dependent on cross-border trade that if the U.S. were to turn the screws on The Great White North it could crater Canada’s economy.

Trump first referred to Canada as the 51st state in a December 2024 meeting with Trudeau. At the time, the Canadian Prime Minister assumed Trump was joking. But then, in January, he said it again publicly, this time threatening the use of “economic force” to pursue annexation. In addition, he began referring to Trudeau as “Governor” rather than “Prime Minister.”

By this point, one could easily chalk this up to Trumpian bluster. He couldn’t possibly be serious about annexing Canada? Could he?

But, two weeks after Trump’s inauguration, a private call between him and Trudeau, which was supposed to be about tariffs, took an odd turn. According to The New York Times, Trump told “Trudeau that he did not believe that the treaty that demarcates the border between the two countries was valid and that he wants to revise the boundary.” He also mentioned revisiting long-standing treaties between the U.S. and Canada regarding the sharing of lakes and rivers.

Even the Canadians were taken aback by Trump’s statement — and it slowly began to dawn on them that perhaps the president was serious (or as serious as one can be about an insane notion like the U.S. annexing Canada).

Publicly, Trump wouldn’t let the matter die. In an interview broadcast before the Super Bowlon February 9, Trump told Fox News’ Bret Baier his plans to annex Canada were a “real thing.” And to magnify Canada’s economic vulnerability, Trump told reporters that Canada was “not viable as a country” without U.S. trade.

The problem for Canada is that Trump isn’t wrong on this front. Canada is so dependent on cross-border trade that if the U.S. were to turn the screws on The Great White North it could crater Canada’s economy.

In the current context of the emerging trade war between the U.S. and Canada, it seems more than reasonable to believe that this is precisely Trump’s intention.

Consider for a moment how this trade war has unfolded. When Trump first declared his intention to slap tariffs on Canada, he used the smuggling of fentanyl across the Canadian border as a justification (never mind that 19 kilograms of fentanyl came across the Canadian border last year, compared to 9,600 kilograms that crossed the U.S.-Mexico border). After Trudeau reminded Trump of Canada’s plan for slowing the smuggling of fentanyl, which was introduced late last year, he backed down.

But then last week, Trump returned to the trade spat with Canada, but this time blamed Canada because of its protectionist trade policies on dairy, lumber and banking. After Ontario’s premier, Doug Ford, announced a 25% surcharge on electricity exports to Michigan, Minnesota and New York, in response, Trump upped the ante announcing a new 25% tariff on Canada’s exports of steel and aluminum (which is in addition to already planned tariffs on steel and aluminum).

How can Canadians end these trade tensions if the reason Trump is slapping tariffs on their country keeps changing?

In announcing the new tariffs, Trump didn’t mention fentanyl as a justification, but instead wrote on TruthSocial that “the only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear.” In a follow-up post, he wondered why the U.S. “allow(s) another Country to supply us with electricity, even for a small area?”

Trump’s zigzagging has left markets and the business community flummoxed. For Canadians, the confusion is even worse. How can they end these trade tensions if the reason Trump is slapping tariffs on their country keeps changing?

But perhaps the obvious answer is staring us in the face, and we’re all too dumbfounded to acknowledge it. Trump has been remarkably consistent in stating that Canada should become America’s 51st state — he has said this repeatedly for months now. Moreover, he has openly espoused using U.S. economic power to achieve that goal — and is doing precisely that.

Just so we’re clear, this is not a Trump-only phenomenon. Yesterday, when asked if the U.S. still considers Canada a “close ally,” White House press secretary Katherine Leavitt said that Canada would “benefit greatly” from joining the United States and pointed to its high cost of living as a reason for surrendering sovereignty.

Commerce Secretary Howard Lutnick sounded a similar theme, noting that “Canada is gonna have to work with us to really integrate their economy, and as the president said, they should consider the amazing advantages of being the 51st state.”

In recent days, the Trump administration has further imposed its will on Canada by requiring Canadians who visit the country for more than 30 days to register with the U.S. government.

The first 51 days of Trump’s presidency have been, for lack of a better word, an odyssey. Crazy has been dropped on top of more crazy. But  in the year 2025, an American president, with no pushback from his Cabinet or Congress, has declared economic war on our closest neighbor to annex its land (which is larger than America’s) and wants to make its 40 million citizens part of the United States. This is the craziest notion of all.

Michael A. Cohen

Michael A. Cohen is a columnist for BLN and a senior fellow and co-director of the Afghanistan Assumptions Project at the Center for Strategic Studies at the Fletcher School, Tufts University. He writes the political newsletter Truth and Consequences. He has been a columnist at The Boston Globe, The Guardian and Foreign Policy, and he is the author of three books, the most recent being“Clear and Present Safety: The World Has Never Been Better and Why That Matters to Americans.”

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The Dictatorship

The House just gave Musk and Trump a blank check. The Senate should tear it up.

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The House just gave Musk and Trump a blank check. The Senate should tear it up.

On Tuesday, House Republicans voted to hand a blank check over to a White House that is already stealing from our families and communities to fund the largest possible tax cut for billionaires and the biggest corporations.

The continuing resolution passed by the House gives Elon Musk and President Donald Trump even more flexibility to steal from the middle class, from seniors, from veterans, from working people, from small businesses and from farmers, all to pay for tax breaks for billionaires.

The administration’s slash-and-burn approach has already left a trail of destruction in our communities. From our national parks to Social Security officesVA medical centers to food banks, Americans are seeing the direct results of the administration’s illegitimate, ill-informed and illegal campaign to tear apart our institutions.

This CR takes away any remaining restraints and guardrails from the Trump administration’s efforts to dismantle our government.

Article I of the Constitution clearly spells out Congress’s authority to determine spending. It reads, “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” To carry out this authority, the House and Senate Appropriations committees engage in tough negotiations that result in bipartisan legislation to fund the government and all of the agencies, programs and services that are provided to the American people.

As recently as early March, we were on the cusp of such an agreement. The “four corners” of the Appropriations committees — Tom Cole and me in the House and Susan Collins and Patty Murray in the Senate — were inches away from securing a deal on the funding topline, which would have allowed us to begin the roughly monthlong process of writing full-year bills.

This process is critically important: It ensures that final funding bills are the results of broad compromise among the people’s elected representatives. Nobody ever gets everything they want, but instead, the interests of Americans from coast to coast are considered and accounted for.

But House Speaker Mike Johnson, at the behest of Musk and President Trump, pulled the rug out from under us and set the House on a track to hand Congress’ authorities over government funding to Musk and Trump. Several of my House colleagues on the other side of the aisle, who by their own admission never vote in favor of government funding bills, enthusiastically voted for this CR, completely ending the appropriations process.

As Republicans are finding out when they go home to their districts, the American people are wise to their abandonment of duty.

Why? Because this CR takes away any remaining restraints and guardrails from the Trump administration’s efforts to dismantle our government and destroy the services that help Americans get by, and because they believe the president will continue to unilaterally freeze and deny funding for programs and services that do not serve his interests.

House Republicans would rather let an unchecked billionaire and President Trump seize taxpayer funds intended for families and businesses.

But as Republicans are finding out when they go home to their districtsthe American people are wise to their abandonment of duty and of responsibility. Their constituents are so furious that the party’s political consultants are telling lawmakers to stop holding town halls altogether and just hide.

President Trump was elected because the American people wanted help with the cost of living. But the cost of living is nowhere to be found among the president’s concerns since he took office. Rather, he has set off on an agenda of vengeance and destruction, threatening the stability of our economy and the legitimacy of our government. He declared a trade war on our neighbors and closest alliesraising costs on American households, businesses and farmers and weakening our international relationships.

And the Trump administration continues to steal from the American people to fund tax breaks for billionaires. Elon Musk, an unelected, unaccountable billionaire with immense conflicts of interest, and his so-called Department of Government Efficiency have been allowed to illegally freeze payments, tear down our institutions, fire career civil servants who are loyal to the Constitution rather than to President Trump and rip apart hard-fought labor agreements that protect working-class Americans. They even have Social Security in their sights.

My phone has been ringing off the hook with constituents telling me how Musk’s and President Trump’s cuts have affected them, and I know the same is happening in my Republican colleagues’ offices.

Kris, a student at Common Ground High School in my district and an intern at Haven’s Harvest, a volunteer organization that reduces food waste, contacted me after 71 student workers across New Haven were laid off because of the funding freeze. Kris’ internship was part of the Green Jobs Corps, funded by a grant since canceled by the Environmental Protection Agency.

I’ve also heard from CitySeed, which connects dozens of farmers across Connecticut with residents who need access to fresh, local food, through farmers markets, culinary programs and entrepreneurship opportunities. The organization has had funding that helps cover its administrative costs frozen, as well.

And Monica, a senior citizen in my district with a low income who relies on Medicare, Medicaid and SNAP benefits, told me she is not just worried about paying her bills or filling the freezer — she is worried that she will not be able to survive if the Trump administration’s cuts go through.

Decisions about the investments we make cannot be entrusted in one single officeholder.

I was at Bradley Airport in Connecticut this week when two Transportation Security Administration officers found out they had been let go. One of them told me they began working for the TSA immediately after its creation in the wake of Sept. 11. I must have missed when the American people asked for fewer TSA agents and longer wait times at checkpoints.

This is wrong, cruel and completely unnecessary. The funding freeze must end, and these draconian cuts must be stopped. But instead of standing up for their constituents and for Congress’s constitutional powers, the CR that passed the House lets Musk and President Trump freeze, cancel and repurpose taxpayer dollars as they see fit.

If this CR becomes law, Musk and President Trump will be able to fire thousands of employees at the Social Security Administration. That will result in office closures, longer wait times and unacceptable backlogs for Americans who are trying to access their earned benefits.

Under this bill, Army Corps of Engineers construction projects to manage our waterways and mitigate flood risks will be cut by $1.4 billion, or 44%. And President Trump, not Congress, would determine all project funding levels and who gets the funding.

Instead of helping our communities address sky-high housing costs, the CR cuts rent subsidies by more than $700 million, leaving landlords to foot the bill or evict more than 32,000 households. And there is not enough funding for disaster relief, abandoning American families who have had their lives turned upside down by extreme weather.

I voted against this CR, and several of my Republican colleagues voted in favor of a CR for the first time, for the same reason: We do not expect the president to actually follow the law.

Decisions about the investments we make cannot be entrusted in one single officeholder. This Congress must decide: Do we have the authority to control spending, as is laid out in Article I of the Constitution?

So long as House Republicans are unwilling to defend the powers of the offices they were elected to hold, all of our constituents will continue to pay the price.

Regrettably, the House has already offered to forfeit its authority to the White House. I implore our colleagues in the Senate to stand up for the American people and our Constitution, reject this CR and put a freeze on this blank check.

Rep. Rose

Rep. Rosa DeLauro serves as ranking member of the House Appropriations Committee. She represents Connecticut’s 3rd Congressional District in the U.S. House of Representatives.

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