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Economy

Trump is playing a dangerous tariff game despite his 'really strong' agenda, US economist warns

2025-02-12

[FoxBusiness] A whirlwind two weeks for the Trump administration’s negotiations on tariffs has left economists forecasting the good and the bad that lies ahead for America’s financial health.

One such economist and senior fellow from the American Enterprise Institute (AEI) – where National Economic Council director Kevin Hassett previously worked – expressed concerns that President Donald Trump’s tariff strategy could work against what fortitude he brings to the economy.

"I don't think there's any doubt, at least in my mind, that a 25% tariff on imports from Mexico and Canada would have severe negative economic consequences," AEI’s Michael Strain told Fox News Digital.

The purpose of the tariffs is primarily to get the two countries to control who crosses their borders into the U.S. Without a strong threat they have no reason to change their behaviour, since both actively resent America and wish it harm. Note that as soon as the president of Mexico promised to move guards to the border, President Trump suspended the threat for a month to let her prove that her promise is a real commitment.

"The economic effects of these tariffs are pretty clear that they would hurt workers, that they would hurt households, that they would hurt businesses and that they would hurt the economy overall," he added,

… but the economies of Mexico and Canada would be hurt considerably more, right?

before acknowledging some optimism ahead with "a number of aspects of President Trump's agenda."

"Including his plans to increase domestic energy production, including his goals to make the United States solidify its position as a global leader in artificial intelligence technologies. So these are all things to be excited about. If President Trump launches a trade war with Canada and Mexico, if he launches a trade war with the European Union, then that will work against his goals. That will weaken the American economy, that will increase the cost of living facing Americans, and that will make American businesses less competitive."

Posted by:Skidmark

#5 Well the game we were playing, Mr. "Economist", was a boning loser.

Posted by: swksvolFF 2025-02-12 13:59

#4 A "warning from a US economist."

Someone tell me what that 'warning' is worth.

Posted by: Besoeker 2025-02-12 12:51

#3 Astrology’s as good as any economic theory

Posted by: Grom the Affective 2025-02-12 11:22

#2 Trump calls for lower interest rates to go 'hand-in-hand' with tariffs: 'Lets rock and roll, America'

Posted by: Skidmark 2025-02-12 10:54

#1 Inflation rises 3% in January, hotter than expected

Posted by: Skidmark 2025-02-12 10:45

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