Trump goes craws on Tariff’s….

The noise about 20% Tariff’s/Import Taxes IS just an admiitted typical Trump noise maker to get a better ‘deal’….

20% Tarriff’s/import taxes on stuff from Canada and Mexico simply are NOT gonna happen…

Can you image the price hikes that would cause to the American consumer and Trump business supporters?

And the stock market….

Fast and slow

Donald Trump’s second presidency is obviously off to a fast start. In almost every area that’s a priority for him and his advisers — immigration, energy, climate, race, gender and more — he has begun making major policy changes.

But there is one notable exception: tariffs.

Even though Trump has said that “the most beautiful word in the dictionary is ‘tariff,’” he has been cautious in his first week back in office. He has not imposed the universal 10 percent or 20 percent charge on all imports that he promised during the campaign. He has instead threatened to enact targeted tariffs on Canada, Mexico and China that wouldn’t take effect until Feb. 1. Trump’s aides have signaled that the threat is partly a negotiating tool to win other concessions from those countries.

Trump has also directed government agencies to assess the feasibility of broader tariffs and report back on the findings, which is itself a sign of his caution. Feasibility assessments are not normally the modus operandi of Trumpism.

Wall Street, which tends to oppose tariffs, has noticed the caution. The S&P 500 rose again yesterday, and market analysts said the slow movement on tariffs was one reason. “The worst fears have not been realized,” said David Kelly, chief global strategist at J.P. Morgan Asset Management….

…

….during the confirmation hearing for Scott Bessent, the nominee for Treasury secretary, he encouraged people to think about the Trump tariffs as having three main goals:

1. Bring production home. Bessent said tariffs could play a role in “remedying unfair trade practices” by other countries and cited China as an example. If other countries are heavily subsidizing their own companies or keeping out foreign rivals, the U.S. can respond in kind to level the playing field.

The broader goal is to rework the supply chain, Ana notes. The U.S. can use tariffs to encourage more production in this country, especially in industries that are growing or militarily sensitive, by increasing the cost of foreign goods.

2. Raise revenue: Bessent’s second category was “a more generalized tariff as a revenue raiser.” Trump has proposed a huge tax cut, and tariffs could replace the lost revenue to keep the deficit from soaring. The Republican majorities in Congress are so narrow that a tax cut without offsetting deficit reduction may not be able to pass. House Republicans have floated cuts to Medicaid for the same reason.

3. Gain leverage: Bessent’s third category was leverage with other countries: “Tariffs can be used for negotiations,” he said. Trump this week threatened Russia with tariffs unless it agreed to a reasonable cease-fire in Ukraine. His planned tariffs on Canada and Mexico are partly an attempt to force concessions on border policy and a trade deal.

Speaking to political and business leaders in Davos yesterday, Trump vaguely threatened new tariffs on European countries. He has long criticized Europe for not buying more American products and not spending more on their militaries. They might be willing to make some changes if the alternative is economically damaging tariffs…

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