Trump Defends Tariffs Despite Potential Economic “Pain”
PALM BEACH: On Sunday, President Donald Trump acknowledged that Americans might experience economic “pain” due to his newly imposed tariffs on major trading partners, but he argued that the cost would be worthwhile to protect U.S. interests.
On Saturday, Trump officially implemented 25% tariffs on Mexico and Canada, despite their involvement in a free trade agreement with the U.S. He also imposed a 10% tariff on China, adding to previously enacted levies.
The president had promised to take such actions since before his inauguration, citing concerns about illegal immigration and the trafficking of fentanyl into the U.S. as key reasons for the tariffs. By invoking the International Emergency Economic Powers Act, he began the tariffs, set to take effect on Tuesday.
The move immediately triggered retaliatory threats from the three countries, with experts warning of potential negative impacts on U.S. economic growth and consumer prices in the short term.
“Will there be some pain? Yes, maybe (and maybe not!)” Trump posted on his Truth Social platform Sunday. “But we will Make America Great Again, and it will all be worth the price that must be paid.”
Although Trump and his advisers had previously downplayed the idea that tariffs could increase consumer prices, the president’s acknowledgement of potential pain seemed to signal a shift. In an effort to avoid a sharp rise in fuel and electricity prices, Trump set the tariff on energy imports from Canada at a lower rate of 10%.
Trump also continued his controversial rhetoric about Canada, suggesting that the country should become the 51st U.S. state, citing U.S. subsidies as essential for Canada’s existence. “Without this massive subsidy, Canada ceases to exist as a viable country,” he said, adding that the move would result in “much lower taxes, and far better military protection for the people of Canada – AND NO TARIFFS!”
The U.S. Census Bureau reports a trade deficit of $55 billion with Canada for 2024.
In response, Canadian Prime Minister Justin Trudeau vowed to implement retaliatory tariffs, imposing 25% levies on select U.S. goods worth CAN$155 billion, starting Tuesday. Several Canadian provinces, including those with liquor trade, have also announced immediate actions.
Mexican President Claudia Sheinbaum stated that her government was preparing to take unspecified “tariff and non-tariff measures” as part of their response.
Trump’s tariff actions were met with criticism from some quarters, including the Wall Street Journal’s editorial board, which labeled it “The Dumbest Trade War in History,” predicting that higher costs would be passed onto American consumers. Trump responded fiercely, dismissing such criticism as part of a “Tariff Lobby” headed by “Globalist” forces and accusing it of justifying past trade imbalances that, in his view, have long taken advantage of the U.S.
