Connect with us

News

‘Draconian’: Trump’s ‘Trade War’ Tariffs Will Increase Prices — and Inflation, Experts Say

Published

on

The White House on Friday afternoon announced that President Donald Trump’s threatened tariffs will go into effect almost immediately, starting at 12:01 AM Saturday. The tariffs — 25% on all goods from Canada and Mexico, and 10% on all goods from China — are being described as “draconian” and unnecessary. They sparked an immediate market selloff and are expected to cause prices to spike on common and essential items such as gas, groceries, beer, and even sneakers.

“If enacted,” writes Steven Greenhouse at The Guardian, “tariffs will increase inflation, slow economic growth, and result in US consumers footing the bill.”

Columbia University economics professor Joseph Stiglitz, a Nobel prize winner in economic sciences, told The Guardian: “Virtually all economists think that the impact of the tariffs will be very bad for America and for the world.”

“They will almost surely be inflationary,” he added.

Gas prices are expected to jump as much as 70 cents per gallon, according to ABC News, which reports that a “seasonal price hike set to take effect within weeks” could mean consumers will be paying up to $1.00 more per gallon.

READ MORE: ‘This Could Be a Coverup’: Dem Senator Says Trump ‘Very Vulnerable’ Over Mid-Air Collision

“U.S. consumers grappling with soaring prices for beef and eggs will face even higher costs for meat, vegetables and fruit if President Donald Trump imposes tariffs on Canadian and Mexican imports, economists and food industry executives said,” Reuters reported. “Consumers have struggled with high inflation since the COVID-19 pandemic and voted for Trump in part due to discontent with higher prices. Trump pledged to bring down costs for ordinary Americans.”

Washington Post economic columnist Heather Long said, “Trump’s trade war is here. Trump says today he will ‘absolutely’ be imposing tariffs on Europe soon, too.”

Earlier on Friday, Long noted that it “would truly be crazy for President Trump to slap a 25% tariff on ALL Canadian and Mexican imports. It would cost American families ~$800/year It would spike gas prices (which only last week Trump said were a ‘national emergency’ and needed to come down). US refineries *need* heavy crude from Canada & Mexico and currently imports ~4 million barrels a day. It would harm US manufacturing, esp. the auto industry.”

“The worst part?” she added: “Trump can get what he wants on the border without having to do this draconian step.”

Other experts say Americans could see annual cost increases of $1250.

Joey Politano, who writes about economics on Substack, mocked Trump’s tariff plans as “incredibly dumb.”

Trump explained that the tariffs announced Friday are just the start.

Some experts say Trump’s tariffs could also violate his own USMCA trade agreement, the United States–Mexico–Canada Agreement, which is a revised version of NAFTA.

READ MORE: Former Trump Surgeon General Sounds Alarm on President’s Actions Amid Disease Outbreaks

“Tariffs at those levels and at that scope would effectively destroy the agreement that Trump himself negotiated and always brags about,’’ Scott Lincicome, a trade analyst at the libertarian Cato Institute, told the Associated Press.

There’s also another issue.

“The tariffs would also invite retaliation,” the AP also reported. “Doug Ford, the premier of Ontario, has already vowed to counterpunch by pulling American alcohol off store shelves in the Canadian province – no idle threat; Canada is the world’s No. 2 market for America’s distilled spirits (behind the 27-nation European Union).”

Former Canadian Minister of Finance Chrystia Freeland, running to become Canada’s prime minister, appeared to agree, and blasted Trump’s tariffs.

“I would publish a retaliation list,” said Freeland in a video (below). Noting that Canada is the United States’ “single biggest expert market — by a long shot,” Freeland said her country has “huge leverage” over the U.S.

“If Donald Trump slaps 25% tariffs on Canadian goods, we must hit back—dollar for dollar—starting with 100% tariffs on all Tesla vehicles and U.S. wine, beer, and spirits. We must protect Canadian workers and businesses.”

Meanwhile, White House Press Secretary Karoline Leavitt appeared unwilling to directly answer questions about Trump’s tariffs, instead attacking the media and insisting Trump has a broad economic plan with which he will implement tariffs, cut inflation, cut taxes, and expand oil production, all, apparently, while not negatively impacting Americans’ wallets.

Former U.S. Treasury senior spokesperson Megan Bates-Apper, responded to Leavitt’s above remarks: “The @WhiteHouse is already dodging questions on whether they will keep prices low for Americans. This isn’t exactly a gotcha…”

Anthony Scaramucci, the former Trump White House Director of Communications and a financier who owns the investment firm SkyBridge Capital, commented, “And on the 11th day Trump gave everyone a tax increase.”

Watch the videos above or at this link.

RELATED: New Trump Memo Claims DEI, Obama, and Biden ‘Decisions’ Linked to Fatal Aviation Disaster

 

Image via Reuters

There's a reason 10,000 people subscribe to NCRM. You can get the news before it breaks just by subscribing, plus you can learn something new every day.
Continue Reading
Click to comment
 
 

Enjoy this piece?

… then let us make a small request. The New Civil Rights Movement depends on readers like you to meet our ongoing expenses and continue producing quality progressive journalism. Three Silicon Valley giants consume 70 percent of all online advertising dollars, so we need your help to continue doing what we do.

NCRM is independent. You won’t find mainstream media bias here. From unflinching coverage of religious extremism, to spotlighting efforts to roll back our rights, NCRM continues to speak truth to power. America needs independent voices like NCRM to be sure no one is forgotten.

Every reader contribution, whatever the amount, makes a tremendous difference. Help ensure NCRM remains independent long into the future. Support progressive journalism with a one-time contribution to NCRM, or click here to become a subscriber. Thank you. Click here to donate by check.

News

Trump’s Ballroom Seen as ‘Key Evidence’ He’s Out of Touch as Cost of Living Spikes

Published

on

The White House reportedly will be submitting plans for President Donald Trump’s $300 million ballroom to a federal planning commission later this month, after the East Wing of the White House has already been demolished and as the president replaces the project’s top architect.

“The 90,000-square-foot ballroom will dwarf the White House itself, at nearly double the size, and President Donald Trump has said it will accommodate 999 people,” the Associated Press reported on Thursday.

Critics blasted the latest news.

“Let me get this straight,” wrote U.S. Senator Elizabeth Warren (D-MA), in response to the news. “Trump has a plan for a new ballroom, but barely has a concept of a plan to lower the cost of health care?”

READ MORE: Inside Trump’s ‘Golden Age’: Troubling New Trends Emerge

“Millions are losing health care, but hey, a ballroom! Unbelievable,” declared U.S. Rep. Katherine Clark (D-MA).

“It seems like the Trump White House is working harder on constructing a new White House Ballroom than averting huge spikes in monthly premiums for 20 million Americans next year,” observed Brendan Duke of the Center on Budget and Policy Priorities (CBPP).

Those sentiments align with a new study from Navigator Research about how some Americans in six Senate battleground states feel about President Donald Trump’s focus.

“The wealthy are seen as benefitting from a rigged system,” Navigator reported on its findings, “and politicians are seen as not getting it. Many view President Trump as particularly out of touch, with his ballroom project as key evidence.”

“Trump is seen as out of touch with working class people, with several citing his ballroom project as a proofpoint,” Navigator added.

READ MORE: Trump Urges Judge Aileen Cannon to Keep Jack Smith Report Secret

The study noted that focus group participants “are struggling mightily to afford the basics – like dog food or energy bills – and see no real sign of the situation improving.”

Navigator also cited comments from focus group participants who shared a variety of concerns, including about the cost of living — and the president’s ballroom.

“I see the president building a ballroom when there’s people that can’t feed their families,” said a Michigan woman, described as a “weak Democrat.”

A woman in New Hampshire, also a weak Democrat, shared, “I blame Trump. He’s greedy, he wants to make money for him and his rich friends. They are throwing Americans aside, cutting, SNAP,” she said of the Supplemental Nutrition Assistance Program. “Everything’s gone to the wayside so that the rich can get richer.”

“I’m scared,” said a New Hampshire woman, an independent. “I’m scared. I’m scared of us losing our healthcare, of him not getting the care that he needs, and me not being able to provide for my family, even though I went to school and got a career to do so.”

A New Hampshire woman described as a weak Democrat said, “I think the economy’s going to tank because when we all lose healthcare starting in January, or most of us like me, I’m going to lose it in January, what is that going to do to the economy? People can’t afford to buy anything now. It’s going to just kill it.”

“How about a ballroom?” asked a Maine woman who was described as an independent. “A billion dollars. How much was it? $5 billion, $3 billion or something? Do we really need a ballroom, ladies? Are we going to go to a f – – dance?…They’re all out for themselves. ‘Let’s do the ballroom. Let’s do stuff that don’t need to be done and screw the American people.’”

READ MORE: Student’s Bible-Based Essay Grade Leads University to Put Instructor on Leave

 

Image via Reuters

 

 

Continue Reading

News

Inside Trump’s ‘Golden Age’: Troubling New Trends Emerge

Published

on

This is “the golden age of America, because we are doing better than we’ve ever done as a country,” President Donald Trump declared last month, standing before a backdrop emblazoned with “The Golden Age,” as he promoted a central theme of his administration.

On the White House’s social media page on X it declares, “The Golden Age of America Begins Right Now.”

The Golden Age of American business has arrived,” the White House also said in October.

“This is indeed the Golden Age of America,” President Trump told the United Nations General Assembly in September.

But the economic numbers paint a more complicated picture.

READ MORE: Speaker Johnson Insists ‘Best Days Ahead’ as GOP Infighting Boils Into Open Revolt

Inflation is persistent, most recently at 3%, and has generally trended upward every month since April when Trump announced his tariff program. This, despite the president promising there is “virtually no inflation,” and having campaigned on ending inflation “on day one.”

Consumer sentiment has fallen to a near record low, Bloomberg News reported last month, noting that views of personal finances are “the dimmest since 2009, and consumers remain frustrated about high prices and weakening incomes.”

“Consumers are anxious about the high cost of living and job security, with the probability of personal job loss climbing to the highest since July 2020,” Bloomberg added.

On Thursday, those fears were supported by a new report from consulting firm Challenger, Gray & Christmas, that found layoffs this year have topped 1.1 million — the highest since, coincidentally, 2020, when Trump was also president.

“It’s only the sixth time since 1993 that announced job cuts through the month of November have surpassed 1.1 million,” NBC News reported on Thursday.

U.S.-based employers announced 71,321 job cuts just in November, Challenger reported. NBC noted it is “the highest total for the month of November since 2022.”

“Tariffs,” CNBC added, “were cited as the driver of more than 2,000 cuts in November and nearly 8,000 year to date.”

READ MORE: Trump Urges Judge Aileen Cannon to Keep Jack Smith Report Secret

Some experts are now talking about “stagflation.”

“We’re seeing the early stages of what economists call ‘stagflation’ —  the ‘flation’ part is inflation, and you’ve all felt that at the grocery store,” economist Justin Wolfers explained last month. “The ‘stag’ part is stagnation, which is, we’ve got rising unemployment and slower economic growth than we otherwise would have.”

And in October, Moody’s Analytics Chief Economist Mark Zandi said 22 U.S. states are already in a recession, Moneywise reported.

Meanwhile, millions of Americans this month are seeing their health care premiums for next year jump sharply — with some plans reported to be doubling or even tripling. And President Trump last month predicted that tariff payments will soon “skyrocket.”

“Foreclosures are surging,” CBS News reported last month, “as U.S. homeowners grapple with rising costs.” So are auto repossessions.

ABC News in November reported that “Americans’ household debt levels – including mortgages, car loans, credit cards and student loans – are now at a new record high.”

READ MORE: Student’s Bible-Based Essay Grade Leads University to Put Instructor on Leave

 

Continue Reading

News

Speaker Johnson Insists ‘Best Days Ahead’ as GOP Infighting Boils Into Open Revolt

Published

on

Speaker of the House Mike Johnson on Thursday insisted that the “best days are ahead of us,” just hours after a sharply critical report charged that some “House Republican women are in open revolt” against him.

Speaking from inside the U.S. Capitol, Johnson on Thursday told reporters, “steady at the wheel, everybody,” and, “it’s going to be fine. Our best days are ahead of us. Americans are going to be feeling a lot better in the early part of next year,” according to Punchbowl News’ Jake Sherman.

“Speaker Mike Johnson is staring down a revolt from House Republican women,” NBC News reported, adding: “a number of high-profile Republican women are fleeing the House for other opportunities, weighing retirement or quitting Congress early, fueling some concern that GOP women’s ranks could be depleted in the next Congress.”

Politico this week described Johnson’s House of Representatives as “spinning out of control.”

READ MORE: Trump Urges Judge Aileen Cannon to Keep Jack Smith Report Secret

Suggesting that House Republicans “can’t stand each other,” NOTUS added that “rank-and-file Republicans are increasingly frustrated with their leadership — and much of that frustration is spilling out into the open.”

U.S. Rep. Marjorie Taylor Greene  (R-GA), whose resignation from Congress shocked the political sphere, told NOTUS, “My bills which reflect many of President Trump’s executive orders … just sit collecting dust. That’s how it is for most members of Congress’s bills, the Speaker never brings them to the floor for a vote.”

NBC News cited action taken by U.S. Rep. Anna Paulina Luna (R-FL), filing a discharge petition on banning congressional stock trading, as an effort to “go around Johnson and force a floor vote.”

Publicly, Luna expressed that she is “frustrated” and “pissed” — while also calling Johnson “a good guy.”

Apart from Greene’s broadsides against Johnson, perhaps the most publicly extreme attack on Johnson has been from a member of his own leadership team.

READ MORE: Suspect Arrested in J6 DNC and RNC Pipe Bomb Case: Report

“Rep. Elise Stefanik of New York, the chair of House Republican Leadership, not only signed on to Luna’s petition but also publicly unloaded on Johnson over an unrelated issue in the national defense bill, suggesting in a series of social media posts that Johnson lied about the matter,” NBC noted.

Stefanik’s feud with Johnson was so damaging that President Donald Trump on Tuesday night had to intervene.

“After a productive discussion I had last night with President Trump and Speaker Johnson, the provision requiring Congressional disclosure when the FBI opens counterintelligence investigations into presidential and federal candidates seeking office will be included in the IAA/NDAA bill on the floor,” Stefanik declared on Wednesday. “This is a significant legislative win delivered against the illegal weaponization of the deep state.”

Stefanik reportedly had threatened to tank the must-pass national defense bill.

Politico’s Jason Beeferman reported on Wednesday that Stefanik’s “victory (and sudden peace) in her public fight” with the House Speaker “comes after she told me last night that Johnson ‘has catastrophic, plummeting support among Republican voters.’”

Axios reported that “Stefanik’s stance sets up another test of Johnson’s ability to hold together his razor-thin majority.”

U.S. Rep. Nancy Mace (R-SC), “has told people she is so frustrated” with Johnson, “and sick of the way he has run the House — particularly how women are treated there — that she is planning to huddle with Representative Marjorie Taylor Greene of Georgia next week to discuss following her lead and retiring early from Congress,” The New York Times reported. Mace, who is running for governor, adamantly denied she is considering retiring from Congress early.

According to NBC, two House Republican women “said that they feel they have been passed over for opportunities, that their priorities don’t always get taken as seriously under Johnson’s leadership and that they believe that could be driving some of the exits and public fights with him.”

“We aren’t taken seriously,” one of the women said. “You have women who are very accomplished, very successful, who have earned the merit, who aren’t given the time of the day.”

READ MORE: Student’s Bible-Based Essay Grade Leads University to Put Instructor on Leave

 

Image via Reuters

 

Continue Reading

Trending

Copyright © 2020 AlterNet Media.