Trump Slams Canada, Mexico: "Tariffs Will Only Came Off If New, Fair NAFTA Is Signed"

Trump resumed his now daily trade war and tariff tweetstorm, blasting on Twitter that “we have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for U.S.A. Massive relocation of companies & jobs." Specifically, the president added that "Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed."

Trump also warned Canada that it “must treat our farmers much better. Highly restrictive.”

Finally, Trump also lashed out at Mexico “must do much more on stopping drugs from pouring into the U.S." perhaps hinting that the US will also impose tariffs on illegal drugs, and adding "they have not done what needs to be done. Millions of people addicted and dying."

While hardly new, Trump's tweeting merely underscores that he appears to have made up his mind and that despite pleas and threats from US allies and trading partners, the White House will proceed with a formal tariff announcement some time this week.

In kneejerk response the loonie accelerated its decline, with the USDCAD rising to 1.2930, the highest level since mid-2017; the peso demonstrated a similar reaction at first, but the initial weakness now appears to be fading.


Uchtdorf D.T.Barnum Mon, 03/05/2018 - 07:25 Permalink

We would also be wise to remember that the "deep state" is not 100% unanimous in their goals and opinions as evidenced by the current governmental infighting. Those traitors have fed off the public largess (and ignorance) for so long that now as they see the pie shrinking they want to protect what they consider theirs.

In reply to by D.T.Barnum

hardmedicine BaBaBouy Mon, 03/05/2018 - 08:14 Permalink

I HOPE SO I hope the USA goes bankrupt.  Then and only then will the government shrink and we can get back to sound money and jobs here in the USA making and consuming our own products.

Globalism and "free trade" have utterly failed the little guy and we are tired of it.  That and open borders.


In reply to by BaBaBouy

Joe Trader virgule Mon, 03/05/2018 - 11:46 Permalink

Trudeau set the example for how to treat canadians when he denied the proposed Energy East pipeline - which connected eastern canada with oil from The West.

Very hypocritical of Trudeau to suddenly care about the economy now that a main industry in his eastern political base faces tarrifs. Serves him right!

And it's time for The West to separate from canada!!!!

In reply to by virgule

Joe Trader east of eden Mon, 03/05/2018 - 12:40 Permalink

spoken like a true eastern canadian elitist.

Alberta pays over $20 billion per year in transfer payments - enough for an annual $6,500 cheque for every citizen in Alberta. That's enough to reduce taxes and INCREASE government spending.

At the end of the day you want to trash Albertans - this steel tarrif is an excellent way to expose eastern canadians' elitist attitudes towards The West!! Look at YOUR OWN COMMENT! You guys just pour more fuel on the fire instead of actually showing any interest to treat your own people FAIRLY! You think we care that canadian steel faces tarrifs? Now you know what it's like. And now we know how hypocritical eastern canadians are!

In reply to by east of eden

Justin Case BaBaBouy Mon, 03/05/2018 - 08:29 Permalink

EU victim countries will just turn to Russia and China. Bravo. Another nail in the coffin of the murican economy.

Just to add arrogance to all this, the $1.2 trillion new issue bonds and with QT dumping an additional $600 billion , let's talk trade.

The market will choke on all of this new debt at the current 2.90 percent for the 10-year. This should push the 10-year yields to somewhere around the 4 to 5 percent range. EZ. Consumers at record debt levels is a bad thing getting worse. Margin accounts, not looking so good. FED balance sheet off loading not looking too good.

Ball in yoar court murica. Don't piss off yoar mortgage holders.

In reply to by BaBaBouy

Justin Case Justin Case Mon, 03/05/2018 - 08:46 Permalink

Economists consider that NAFTA was beneficial for the United States. In a 2012 survey of leading economists, 95% said that on average U.S. citizens benefited from NAFTA. A 2001 Journal of Economic Perspectives review found that NAFTA was a net benefit to the United States. A 2015 study found that US welfare increased by 0.08% as a result of NAFTA tariff reductions, and that US intra-bloc trade increased by 41%.

In 2015, the Congressional Research Service concluded that the "net overall effect of NAFTA on the U.S. economy appears to have been relatively modest, primarily because trade with Canada and Mexico accounts for a small percentage of U.S. GDP. However, there were worker and firm adjustment costs as the three countries adjusted to more open trade and investment among their economies." The report also estimated that NAFTA added $80 billion to the US economy since its implementation, equivalent to a 0.5% increase in US GDP.

The U.S. Chamber of Commerce credits NAFTA with increasing U.S. trade in goods and services with Canada and Mexico from $337 billion in 1993 to $1.2 trillion in 2011, while the AFL-CIO blames the agreement for sending 700,000 American manufacturing jobs to Mexico over that time.

University of California, San Diego economics professor Gordon Hanson has said that NAFTA helped the U.S. compete against China and therefore saved U.S. jobs. While some jobs were lost to Mexico as a result of NAFTA, considerably more would have been lost to China if not for NAFTA.

I agree, get rid of NAFTA. Canada will be better off without that.


In reply to by Justin Case

Ajax-1 Xena fobe Mon, 03/05/2018 - 09:12 Permalink

I would not go so far as to suggest that they are irrelevant. When the US Chamber of Commerce, Business Round Table conspire with the international globalists to export living wage American jobs, it has a direct negative affect on Main Street. The globalists achieve their results via bribing politicians, lopsided trade deals, Cap and Trade etc.

In reply to by Xena fobe

Kayman Justin Case Mon, 03/05/2018 - 10:42 Permalink

"I agree, get rid of NAFTA. Canada will be better off without that."

Perversely, you are right. Canada just won't publicly admit that Mexico has robbed jobs out of Canada too.

You are being left by a finger-painting, grade 3 substitute teacher. Good Luck. 

A Canada/U.S. bi-lateral trade deal, something like the Auto Pact.

In reply to by Justin Case

hardmedicine Justin Case Mon, 03/05/2018 - 11:15 Permalink

why are you spewing the official narrative of the :" Pew Charitable Trusts" . ? of course the official narrative is that it has helped all the globalists here.  if we did benefit it was overshadowed by far by it's detriments. 

I swear, so many trolls spouting globalists propaganda on here these days...... I miss the old zerohedge. i really do

In reply to by Justin Case

GUS100CORRINA D.T.Barnum Mon, 03/05/2018 - 07:27 Permalink

Trump Slams Canada, Mexico: "Tariffs Will Only Came Off If New, Fair NAFTA Is Signed"

My response: Is this a TRADE WAR or is it just undoing the BULLSHIT hoisted on America's back for the last 50 years.

Again, America FIRST or America is FINISHED!

The current level of TRADE DEFICITS are unsustainable and the POTUS knows it.

In a word: PETER SCHIFF's predictions have yet to become reality. This GUY is an example of CHICKEN LITTLE every time he speaks. He is probably a relative of SHIFTY Adam Schiff.

In reply to by D.T.Barnum

Justin Case not-me---it-wa… Mon, 03/05/2018 - 08:55 Permalink

If the United States lowered its export barriers with China to levels similar to those it has with France, its trade deficit with China would shrink by as much as 24%, according to the Chinese, citing figures from the Carnegie Endowment for International Peace.

Lower the restrictions on the export of U.S. goods and services out of the country to China to the same level as Brazil, and the trade deficit with China would fall 34%, that data shows.


China quite sensibly says it can't really help it if Americans want to buy lots of the stuff its companies produce. And I'm not sure a large trade imbalance is the kind of disaster that Trump makes it out to be -- the U.S. economy and American consumers benefit from cheaper goods and parts. Yes, there's a $347 billion surplus in one direction, but this is trade, not a poker game where one side wins the chips and keeps them.

In reply to by not-me---it-wa…

lucitanian GUS100CORRINA Mon, 03/05/2018 - 09:56 Permalink

" The current level of TRADE DEFICITS are unsustainable and the POTUS knows it. "

Agreed. Yet the US has actually got to economically produce something on a competitive basis which the rest of the world is willing to buy and consume in order to offset it.

It's not that US companies don't make money on what they innovate and produce. They just prefer to produce it overseas and import it into the US paying less costs and tax on their profits.

And those corporations "run" the country, not the "people". So much for the shining beacon of "democracy".

Lashing out with tariffs on primary products is not going to change anything for the better. In fact it will make things worse in terms of US jobs and costs to the US people.

Neither is exporting war in the form of tariffs, sanctions, or war in its most basic form, as destabilization abroad such as military aggression couched in terms of "defense" be it in Syria, Iraq, Afghanistan, Yemen, in the South China Sea, or on the Korean peninsula.

It seems obvious to everyone else in the world that the US has to re-evaluate its position in terms of reality rather than bellicose rhetoric; in terms of their self appointed exceptionalism, global hegemony, debt, and thereby come to terms with a community of nations who demand equal respect. But as long as the government of the US is dominated by the interests of these globally oriented and owned corporations who can manipulate governments and which in of themselves strive only for short and medium term profits, the interests of the "average" USn will never be addressed let alone aimed for by the bought and paid for representatives in the legislature or executive.

Tariff barriers, like sanctions plus propaganda, are a short term political xenophobic sop, which might gain some popularity with the less informed masses who are of little consequence in the real scenario, but they also manage to hide the more complex and deep seated causes of the USA's ills.    

In reply to by GUS100CORRINA

east of eden D.T.Barnum Mon, 03/05/2018 - 10:27 Permalink

Well, of course it is a 'tax' on consumers. A hidden and sneaky tax, on top of existing income taxes (Federal and State), on top or rising interest rates, on top of rising debt servicing costs, on top of rising costs for everything from education to health care.

Now, I've been saying all along that the US needed to RAISE taxes to deal with their fiscal problems, but, nobody wanted to hear that, so here you have 'the man of the people' doing just that.

After all is said and done, I imagine that the weighted sum of all the tariffs that are coming will work out to about 10%, which is the consumption tax that has been proposed for a long time now. 

Unfortunately, for the US in the short to medium term, what it also means is that every country will unload treasuries and stop buying any more, due to the risk of selective default, which I believe is quite real under Trump. I also doubt they will keep their US dollars, opting instead to either convert them to their own national currencies (thus raising your import costs), or gold and silver, or other assets, as Schiff pointed out.

And one more thing. Schiff was absolutely right about what happened in 08/09 and he is also absolutely right about what is going to occur 1 to 2 years from now, which is essentially that America will be forced to declare insolvency, which will effectively stop all imports to America for however long it takes for the US Congress to implode, and for someone to step forward with a rational plan on how to balance trade, world wide.

That someone, will not be Trump. He doesn't have the brains. He's an excellent bully, and infinitely deceptive, however, once the plug has been pulled, the need for and tolerance of Trump will drop to zero.

However, at the end of the day, I side with those Americans who would rather that the shit hits the fan now, rather than later. I also believe that the insolvency of America has been planned all along (at least ever since the massive frauds of 08/09), by the BIS. Why? Well, when Mark Carney was head of the Bank of Canada, he instituted a policy to vastly increase our reserves, both of US dollars, Euros, Yen and other currencies. Why did he do that if not to protect Canada from a default, and we have succeeded. We now have more reserves than US T-Bills outstanding, so even if the US defaults on the entire 85 Billion of treasuries that we still hold, the BOC can recapitalize the banks from reserves.

As for gold and silver, after looking at the crime and criminal activity that is occurring in Venezuela (where dealers will only 'buy' gold at the 'official' exchange rate (6.50 US or 13,500 Bolivars per ounce) but they will only sell gold at the real, black market rate (35 Million Bolivars, per ounce). So, there is no guarantee that anyone holding gold and silver will be any better off than anyone else. What will ultimately make the difference will be what skills people have that can be bartered for goods. Those that have skills will survive, the others won't.

Further, I think that what will happen after the US defaults is that you will see a massive wave of trade worldwide shift to direct currency swaps between the trading partners. 

That is the only way to defeat Wall Street, and Wall Street, like Congress, must be defeated. 

In reply to by D.T.Barnum

AGuy D.T.Barnum Mon, 03/05/2018 - 11:17 Permalink

Tariffs are Trumps stealth tax on americans! Its American consumers that will be paying for these tariffs. Its also triggering inflation as costs for goods are going up because of tariffs. Like I said in numerous ZH comments, these tariffs are not going to bring back jobs: Millennials don't want them, Gen-X are already more than full employed. Either companies will leave production overseas (very likely) and the few that bring back domestic production will be using lots of automation to use a few workers as possible. I don't see companies that invest billions in manufacturing plants are simply going to abandon them because of US tariffs. These plants produce a goods that are also sold outside of the USA (Europe/Asia) anyway. I think the will just let the American consumer pay the tariffs via higher prices, and not move operations back to the US. Especially if the tariffs end up getting repealed in the next administration.

Down vote away, but deep down you know this will happen.

Tariffs are just another point that shows Trumpet is really a democrat.

In reply to by D.T.Barnum

silverer Mon, 03/05/2018 - 07:23 Permalink

Go Donald. The US is running out of money bleeding for years with these trade deficits. Although paying for a cool little US made LED flashlight will cost $18.00 + tax instead of $2.65 with free shipping from China.

hardmedicine ebworthen Mon, 03/05/2018 - 08:12 Permalink

FORGET toys.  I would just like to buy clothes and shoes made in USA again.

WE used to have an entire shoe store in my home town with every shoe made here.  Germany has that.  Germany has all their shoes and clothes made in that little country.  ..... ok most of them.  But if Germany can do it why not the USA.  I'm sick to death of MADE IN CHINA

In reply to by ebworthen