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Trump’s dumb and dangerous trade war will hurt red states the most

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by PostoLink
Trump’s dumb and dangerous trade war will hurt red states the most

Last week, Donald Trump slapped 25% tariffs on most Canadian goods and 10% on energy, for no reason at all. He has also added a 25% tariff on goods from Mexico. Canada isn’t just retaliating with their own tariffs, but they’re making sure that red-state voters suffer the most. 

As of this writing, the Washington Post reports that Mexico claims to have negotiated a 30-day reprieve on Trump’s 25% tariffs announced Friday, and discussions with Canada are scheduled before similar tariffs are scheduled to take effect Tuesday. The “friendly” conversation with Mexican President Claudia Sheinbaum was confirmed by Trump.

President Claudia Sheinbaum waves as she arrives for a Housing for Wellbeing event, a government-funded home improvement program, in Mexico City, Saturday, Feb. 1, 2025. (AP Photo/Marco Ugarte)
Mexican President Claudia Sheinbaum 

But let’s be clear, everyone will suffer in this “dumbest trade war” of all time if these tariffs do actually happen. Trump claims that something something fentanyl trade is the justification, but almost no fentanyl crosses the border from Canada. And really, fentanyl is a U.S. problem. Maybe Trump can get his voters to stop doing drugs

A 25% tariff on Canadian and Mexican goods, as well as another 10% on Chinese goods, literally means we’ll pay that much of a tax on almost everything we consume. (And that’s not even counting increased food costs from Trump’s deportation agenda, or his actions against Taiwan.) Mexico and Canada, together, are the U.S.’ top two trading partners, accounting for 30% of all trade. China is third, with 11%. 

The impacts are near universal. Canada sources 80% of the potash fertilizer used by American farms. All our food just became immediately more expensive. And that’s the best-case scenario, because Canadian producers could divert American-destined fertilizer to other hungry markets overseas, like Brazil. American farms may literally lack the ability to maximize their yields. 

Canada announced its first retaliatory round, slapping their own 25% tariffs on $155 billion in U.S. imports. The initial list includes orange juice and cane sugar from Florida, seemingly all agricultural products from red farm country, tobacco and bourbon from Kentucky (following up on European tariffs), appliances made in South Carolina, guns (ha ha ha), and so much more.

And then there’s peanut butter. Jif is based in Kentucky. Peter Pan is made in Georgia. Peanuts are grown you know where … in Georgia, but also Alabama, Arkansas, Florida, North and South Carolina, Oklahoma, and Texas.

Farm equipment is targeted. Where are John Deere tractors made? Iowa, Georgia, Tennessee, and Wisconsin.

This stuff is all interconnected in ways not obvious at first look. For example, Canada is targeting Harley-Davidson, manufactured in Wisconsin and Pennsylvania. Only 5% of Harleys are sold in Canada, so big whoop, right? In reality, the entire automotive industry is dependent on parts from Canada and Mexico to assemble their vehicles. All Harleys are about to get a lot more expensive for everyone, everywhere. 

The Wall Street Journal reported Sunday that Mexico will release its own list calling “for tariffs on specific U.S. goods from Republican strongholds,” and noted that both Canada and Mexico are working together to coordinate their responses, likely looking to inflict maximum damage on key conservative industries and regions. 

“One option Mexico’s government was also considering is so-called carousel retaliation, which would periodically rotate the U.S. products subject to retaliatory tariffs,” the Journal further reported. “This generates uncertainty in U.S. export sectors and has a political impact when hitting sectors such as agriculture that are likely to lobby Congress.”

You better believe those industries are responding. 

The right-wing business lobby, the Chamber of Commerce, doesn’t want tariffs, nor does the National Association of Manufacturers, who note that a third of all factory inputs in the U.S. come from Canada and Mexico. The National Association of Home Builders correctly states that expensive housing will get even more expensive with tariffs, while the tech lobby argued that “Trade is crucial to American competitiveness and innovation.”

Funny enough, even Trump knows this is going to screw over a lot of people. “THIS WILL BE THE GOLDEN AGE OF AMERICA!” he screamed on Truth Social. “WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”

For a crowd that loses its mind over gas price increases and obsessed over the price of eggs, we’re about to find out how tolerant they are of a new round of self-inflicted inflation and inevitable job losses.

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par PostoLink

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