[guest post by Dana]

Apparently the President-elect intends to go through with his plans unless someone with influence can make him see the error of his ways:

Trump posted on his Truth Social platform that one of the first executive orders he will sign when he takes office on Jan. 20, 2025, will be to charge Mexico and Canada with a 25% tariff on all products coming 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! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price.” Trump posted.

. . .

In another post, Trump said that he will be charging China with an additional 10% tariff on top of any additional tariffs on products coming into the U.S., arguing the country wasn’t doing enough to stop the flow of illicit drugs.

“Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before,” Trump claimed.

As of this writing, the stock market is not yet open. However, Americans will likely end up paying more for consumer goods (groceries), as well as automobiles and electronics, etc.

Remember, this is nothing new. Back in 2020, the news wasn’t good:

Already, Trump’s tariffs have been a net drag on the economy and have failed to achieve his stated goal of boosting domestic manufacturing, according to a new study by two Federal Reserve Board economists, Aaron Flaaen and Justin Pierce.

Any jobs saved or created in U.S. industries protected by tariffs are more than offset by jobs lost in companies that suffer higher input costs or lose export sales because of retaliatory tariffs, the study, which was released last month, concluded.

“The tariffs have not boosted manufacturing employment or output, even as they increased producer prices,” the study found.

As expected, China, Mexico, and Canada have not taken the news well.

Anyway, some food for thought:

"In 2022, Mexico and Canada supplied 51 percent and 2 percent, respectively, of U.S. fresh fruit imports, and 69 percent and 20 percent, respectively, of U.S. fresh vegetable imports" https://t.co/2YPxAv7egK pic.twitter.com/N1107Q5iKD

— Scott Lincicome (@scottlincicome) November 26, 2024

Enjoy your fruit & vegetable tax, everyone. https://t.co/5UP9CNeSMG pic.twitter.com/hU2P6k0rVl

— Scott Lincicome (@scottlincicome) November 25, 2024

So why would Trump want to sink the economy and have American consumers pay, oh, I don’t know, $10(!!) for an avocado???? Our starting point is: somehow this will make him look good, because we know every decision he makes is ultimately about making himself look good. . .

—Dana