Larry Cudo: Trump tells Mexico and Canada – First America!

If President Donald Trump believes that Mexico and Canada will harm us at the border to prevent the illegal passage of Fentanil and other drugs, or will not help us to help us with Mexican cartels. Defeat – so I believe he is quite true to use his hard tariff diplomacy Syed 25 % tariffs in both countriesHuman

And this includes a 10 % increase in tariffs in China, providing the components of Fentanyl drug produced in Mexico at that time and shipped through the US line. China is also being ruined USMCA Free Trade Deal USMCA By making plants in Mexico and then launching cheap cars into the United States, without adhering to US internal content and other rules.

With the announcement of today by the Minister of Press, Caroline Levywet that President Trump has put forward his mind and imposes these tariffs tomorrow, it is clear that this is the conclusion of the president.

Whether he has certain criteria in the case of illegal border or drug trafficking, or sex trafficking, is not yet seen. Whether he will participate in additional talks with Canada and Mexico is not yet seen.

But he has enacted the law. Tariff is a legal tool for participating in national security policy as well as economic policies.

Probably, if Mexico and Canada meet Mr Trump's needs, tariffs can be lifted. But we don't know that. And we look forward to some kind of President's statements, maybe tonight or tomorrow.

However, Mexico's relationship with China has become a major problem. Mexico's import from China has increased by 50 % over the past 5 years. And Chinese investment in Mexico has increased by 50 %. USMCA rules must be changed to be explicit limitations on Chinese content.

Currently, the United States with Mexico has a $ 170 billion business deficit, which is sustainable in various product groups.

Canada is a different story. The United States has a $ 60 to $ 70 billion business deficit, but if we get energy, we actually exist with Canada – including cars and commodity production. 60 % of US oil imports came from Canada.

But Canadian oil companies provide us with a 20 % discount because their heavy crude oil should be treated in gasoline and diesel fuels. As some oil experts have pointed out, 25 % of the tariff would eliminate a 20 % discount. And they are afraid that The price of gasoline in the western middle And the northern states can jump with 40 to 75 cents. Therefore, the oil industry is hoping for 25 % of the tariff.

In tariffs announced by Ms. Levit, Dow Jones fell 330 points. Wall Street still believes that tariffs are inflation.

As I suggested before, they are not.

Certainly, there may be a slight increase in product price once. But exporters to the United States endure 50 % or more of the increase in tariffs by lowering their price to sell to US consumers and jobs. This was our experience with China in the first period of Trump.

The only way that inflation is chosen in any sustainable way is that if the Federal Reserve keeps the press open.

In the social post of Mr. Trump's truth on Wednesday, he criticized the Federal Reserve Non -preventing extensive rest This destroyed the cost of water collar by raising the price of 20 % plus over the past four years.

But Mr Trump's economic plan for lower tax rates, deregulation, elimination of energy production, high decline in federal costs and DC bureaucracy are heavily anti -inflation and growth. That's why inflation is not a problem.

And yesterday, Mr Trump wrote in a social fact that no replacement of the capable dollar will endure international trade. He threatened 100 % tariffs in the so -called brix Countries – Brazil, Russia, India, China and South Africa. The king of the dollar is also anti -inflation.

Instead, Mr Trump's tariff diplomacy is intended to support US national security – and its economic security.

And he insists that America comes first.