Summary
Trump announced that 25% tariffs on imports from Canada and Mexico will take effect on February 1, though a decision on including oil remains pending.
He justified the move by citing undocumented migration, fentanyl trafficking, and trade deficits.
Trump also hinted at new tariffs on China.
Canada and Mexico plan retaliatory measures while seeking to address U.S. concerns.
If oil imports are taxed, it could raise costs for businesses and consumers, potentially contradicting Trump’s pledge to reduce living expenses.
First time around, with the trade war with China, he had the federal government cut checks to affected farmers. I don’t know the form that took, but during COVID-19, he had stimulus checks sent out – with his name on them – to the broader public.
So, that’s presumably to make sure that they associate him with the check. I understand that sending out gifts to the public with your name attached isn’t uncommon around election in some countries with kinda sketchy political systems.
One imagines that he might do a repeat. Most people don’t seem to have a great handle on what drives inflation, from polls I’ve seen. If you figure that you get political points for sending out checks but don’t lose as many political points for raising prices because people don’t associate you strongly with those costs, that might be an advantageous political move; add tariff, which generates revenue to federal government, then send money to some approximation of impacted people with name attached. It’s economically-inefficient, but…
Don’t forget his little issue with TSMC holding a virtual monopoly on wafer fabrication.
Don’t forget that’s HIS FAULT.
GlobalFoundries had working 7nm, but they were a year late and-
Intel’s problems appeared to be over (they weren’t)
TSMC would have mass production of N7 up within months (they were already in risk production)
Samsung’s aggressive posturing and pricing for Samsung Fab would eat into their business, even though it was for a 10nm class product
UMC would have 7nm up within 6 months (they stole TSMC IP and got clapped for it, no UMC 7nm)
SMIC would also be up within a year (Also stolen TSMC IP, they can’t sell it in the west but it’s used extensively in China)
All those thing would make it hard to make a lot of money when they were a year late (though all of them turned out wrong except TSMC). SF parent company would have allowed all that to happen too, but then Trump started subsidising oil to put pressure on OPEC. ATIC no longer had their ‘unlimited money’ and GF had to get back in black, so 7nm was cancelled.
This left only TSMC and Poor Quality Samsung (Intel still doesn’t really do third party fab work)
Thanks Trump for putting tariffs on for the mess you created.