Larry Kudlow: Trump Mexico and Canada – America first says!



If President Donald Trump, Mexico and Canada damage America's national security, believes not to help prevent the flow of illegal transitions and other drugs or beating Mexican cartels, it is completely right to use hard tariff diplomacy 25% tariffs in both countries.

And this includes 10% tariff increase in China, which is produced in Mexico and provides Fentanyl drug components sent to the US line. China is also a barrier USMCA North American Free Trade Deal By setting plants in Mexico, then by throwing cheap cars to the United States without complying with local content and other rules.

President Trump's tariffs closed these tariffs and these tariffs are very clear that the press secretary of spokeswoman Karoline Leavitt, which has introduced these tariffs tomorrow.

It has any special measurement to express an idea of ​​illegal border crossings or drug trafficking or sex. It is seen that if there will be additional negotiations with Canada and Mexico.

But he put the law. Tariffs are a legitimate tool for engaging in national security policy and economic policy.

Probably, if Mexico and Canada meet Mr. Trump's requirements, tariffs can be raised. But we do not know that. And perhaps we look forward to this evening or tomorrow.

By the way, the gardens for Mexico China have become a big problem. In the last 5 years, the import of Mexico from China has increased by 50%. The Chinese investment in Mexico is the same 50%. USMCA rules should be changed to place open restrictions in China.

Currently, the United States is a $ 170 billion trade deficit with Mexico, which is constant for numerous crop groups.

Canada is a different story. The United States holds up to $ 60 billion in trade deficit with dozens of $ 60 billion, but if energy is removed, there are also a surplus, including including, including. 60% of US oil imports come from Canada.

However, Canadian oil companies provide 20% discount, because their heavy raw materials should be refined by gasoline and diesel fuel. As some oil experts noted, 25% of the tariff deletes a 20% discount. And they are afraid of them Gasoline prices in Midwest Northern countries were able to jump for 40 to 75 cents. Thus, the oil industry hopes an engraving from a 25% tariff.

Tariff news announced by Ms. Leavitt, Dow Jones 330 points. Wall Street continues to believe that the tariffs are inflation.

As I previously suggested, they are not.

Of course, there may be an increase in some small lumps product prices. However, exporters to the United States will carry 50% or more of the tariff increase by reducing their prices to sell American consumers and enterprises. This was our experience with China in the first period of Trump.

If the only way is intending to take any continuous fashion in inflation, the federal reserve print presses are wide open.

Mr. Trump criticized Fed on Wednesday Social Post Inability to stop mass bidinflation The blue collar is convenient with 20% of the last four years.

However, Mr. Trump's low tax rates, critical, power production, a large decrease in federal expenses and DC bureaucracy, itself is deep reflection and development. Therefore, inflation is not the issue.

Yesterday, Mr. Trump, in the truth, will not tolerate the change of powerful US dollars in international trade. Threatened 100% tariffs in the so-called Brics Countries – Brazil, Russia, India, China and South Africa. King dollars are also inflation.

Instead, Mr. Trump's tariff diplomacy was directed to maintain America's national security and economic security.

And he insists … is the first place of America.



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