Let’s kick this off with data – data on the tariffs. We’re not going from 0 to 25, there were already a number of tariffs already in place, especially when it comes to China. So when inflation ran wild, and the country desperately needed relief from the expansionary actions taken by Biden, why did they keep the China tariffs in place?
For full context, here is the before and after on specific product / services from China with respect to tariffs:
| Product Category | Tariff Before 2025 | Tariff After 2025 |
|---|---|---|
| Electric Vehicles (EVs) | 25% | 100% |
| Semiconductors | 25% | 50% |
| Solar Cells | 25% | 50% |
| Steel and Aluminum Products | 7.5% | 25% |
| Medical and Surgical Gloves | 7.5% | 25% |
| Agricultural Products | 10-25% | 10-25% |
| Consumer Electronics | 15-25% | 15-25% |
| Textiles and Apparel | 10-25% | 10-25% |
| Machinery and Industrial Equipment | 20-25% | 20-25% |
| Automotive Parts | 25% | 25% |
| Furniture and Home Goods | 10-25% | 10-25% |
| Chemicals and Plastics | 15-25% | 15-25% |
| Toys and Games | 10-25% | 10-25% |
| Medical Devices | 15-25% | 15-25% |
| Metals and Minerals | 10-25% | 10-25% |
| Pharmaceuticals | 10-25% | 10-25% |
| Food and Beverages | 10-25% | 10-25% |
| Paper and Printing Products | 10-25% | 10-25% |
| Sporting Goods | 10-25% | 10-25% |
| Building Materials | 10-25% | 10-25% |
Here are the rates from
From Mexico to the U.S.
| Product | Tariff Percentage | Status |
|---|---|---|
| Automobiles and Auto Parts | 25% | New |
| Agricultural Products | 25% | New |
| Textiles and Clothing | 25% | New |
| Liquor | 25% | New |
| Steel and Aluminum | 10% | Pre-existing |
| Electronics | 15% | New |
| Footwear | 20% | New |
| Furniture | 10% | New |
From Canada to the U.S.
| Product | Tariff Percentage | Status |
|---|---|---|
| Automobiles and Auto Parts | 25% | New |
| Liquor | 25% | New |
| Energy Products | 10% | New |
| Lumber | 25% | New |
| Dairy Products | 25% | New |
| Steel and Aluminum | 10% | Pre-existing |
| Pharmaceuticals | 5% | Pre-existing |
| Paper Products | 15% | Pre-existing |
Summary of data by country:
| Country | Total Imports | Average Tariff Rate |
|---|---|---|
| Mexico | $398 billion | 25% |
| Canada | $393 billion | 25% |
| China | $575 billion | 25% |
| Country (Revenue to US via Tariffs) | Amount |
|---|---|
| Revenue from Mexico | $99.5 billion |
| Revenue from Canada | $98.25 billion |
| Revenue from China | $143.75 billion |
| Total Estimated Revenue | $341.5 billion |
Think about that in terms of the overall US budget:
2025 U.S. Federal Budget Breakdown
| Category | Amount (in trillions) |
|---|---|
| Social Security | $1.35 |
| National Defense & Veterans | $1.13 |
| Transfers to States | $1.09 |
| Medicare | $0.85 |
| Health Care | $0.75 |
| Education | $0.30 |
| Welfare | $0.25 |
| Interest on Debt | $0.45 |
| Other Spending | $1.20 |
| Total | $7.37 |
Robert Lighthizer, former U.S. Trade Representative under President Trump, has been a strong advocate for the use of tariffs as a tool to achieve several economic and strategic goals. Here are some key points summarizing his views on the benefits of tariffs:
- Leverage in Trade Negotiations:
- Lighthizer believes that the U.S. has significant leverage over its trading partners due to their dependency on the U.S. market. He argues that tariffs can be used as a bargaining tool to secure better trade terms and ensure that trade partners adhere to agreements that benefit the U.S. economy
- Lighthizer believes that the U.S. has significant leverage over its trading partners due to their dependency on the U.S. market. He argues that tariffs can be used as a bargaining tool to secure better trade terms and ensure that trade partners adhere to agreements that benefit the U.S. economy
- Reducing Trade Deficits:
- One of Lighthizer’s primary goals has been to reduce the U.S.’s systemic trade deficits with countries like China and Japan. He views tariffs as an effective means to address these imbalances by making imported goods more expensive and encouraging domestic production
- One of Lighthizer’s primary goals has been to reduce the U.S.’s systemic trade deficits with countries like China and Japan. He views tariffs as an effective means to address these imbalances by making imported goods more expensive and encouraging domestic production
- Protecting American Jobs:
- Lighthizer argues that tariffs help protect American jobs by making it less attractive for companies to outsource production to countries with lower labor costs. By imposing tariffs, he believes that more jobs can be retained within the U.S., benefiting American workers
- Lighthizer argues that tariffs help protect American jobs by making it less attractive for companies to outsource production to countries with lower labor costs. By imposing tariffs, he believes that more jobs can be retained within the U.S., benefiting American workers
- National Security:
- He also sees tariffs as a way to protect national security by reducing dependency on foreign goods, particularly in critical industries such as technology and defense. This approach aims to ensure that the U.S. maintains control over essential supply chains
- He also sees tariffs as a way to protect national security by reducing dependency on foreign goods, particularly in critical industries such as technology and defense. This approach aims to ensure that the U.S. maintains control over essential supply chains
- Countering Unfair Trade Practices:
- Lighthizer has been vocal about using tariffs to counter what he perceives as unfair trade practices by other countries, such as intellectual property theft and state subsidies. He believes that tariffs can pressure these countries to change their practices and create a more level playing field for U.S. businesses
Lighthizer’s approach to tariffs is rooted in the belief that they can be a powerful tool to achieve economic self-reliance, protect American jobs, and secure better trade deals for the United States.
Sunday Morning Shows – MTP still in the lead, Face the Nation is Fake!
Quick Q&A with the press by Trump
