The administration is exploring sector-specific tariffs on imports deemed critical to national security, aiming to bolster domestic industries like military supplies, medical equipment, and energy production. This approach, unlike a previously proposed blanket tariff on imports from Canada, Mexico, and China, is considered potentially more palatable. Targeted tariffs are intended to incentivize domestic production and strengthen key sectors. While details on specific targeted imports remain unclear, this strategy represents a shift from the broader tariff proposals previously discussed.
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Biden’s recent decision to block the sale of U.S. Steel to a Japanese buyer has sparked a flurry of reactions, ranging from outrage to cautious approval. The immediate question many are asking is why the administration intervened, especially considering U.S. Steel’s seemingly strong financial position and the potential benefits of the deal.
The argument that U.S. Steel’s balance sheet is robust, with significant ore rights, is often raised. However, some counter that the balance sheet might underrepresent the true value of the company’s assets due to historical costing, potentially obscuring a more accurate picture of its worth. This leads to a broader discussion about the strategic importance of maintaining control of key national assets, particularly amidst escalating global tensions and the potential for conflict.… Continue reading
President-elect Trump’s claim that Gilded Age tariffs spurred economic growth is contradicted by economic historians. While tariffs were a major government revenue source during this period (due to the absence of income tax), research indicates that economic success was despite, not because of, high tariffs. Industries with high tariff protection experienced less productivity and innovation compared to those with less protection. Therefore, tariffs did not contribute to the rise of American manufacturing, and instead likely inflated prices for consumers.
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President-elect Trump has threatened the European Union with tariffs unless it significantly increases its purchases of American oil and gas, citing a large trade deficit. This threat follows Trump’s first post-election trip abroad, and comes as the EU has strengthened its trade defenses against such coercive practices. The EU is already a major importer of US LNG and crude oil, but Trump’s “America First” approach signals potential significant trade disruptions. His past actions involving tariffs on steel and aluminum demonstrate his willingness to pursue protectionist policies. The EU has vowed a unified response to any aggressive trade actions from the incoming US administration.
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Donald Trump’s proposed 25 percent tariff on all goods from Mexico and Canada is projected to severely damage the Texas economy, potentially costing the state 370,000 jobs and $46.9 billion in gross state product annually. Economists warn of retaliatory tariffs from Mexico and Canada, further exacerbating economic losses and potentially triggering inflation. This protectionist measure, intended to curb illegal immigration and fentanyl trafficking, is criticized for harming consumers through higher prices and disrupting vital supply chains. The tariffs’ impact on Texas is particularly severe due to its extensive trade relationships with Mexico.
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Trump’s proposed tariff plan, imposing a 10% increase on Chinese goods and a 25% increase on imports from Mexico and Canada, is causing significant concern among economists and the public alike. This isn’t just a minor adjustment; it’s a significant escalation of trade protectionism with potentially devastating consequences.
The sheer magnitude of the proposed tariffs is alarming. A 25% increase on goods from our closest trading partners, Mexico and Canada, will dramatically increase the cost of everyday items for American consumers. We import billions of dollars worth of food from Mexico, for example, meaning a substantial rise in grocery prices is almost certain.… Continue reading
John Q. Hosedrinker 
Matt Underwood