Trump says

Palm Beach, Florida (AP) – President Donald Trump said on Sunday that Americans could feel “some pain” by the emerging trade war caused by its rates against Canada, Mexico and China, and claims that Canada will “stop existing “Without its trade surplus with the United States.

The trade penalties that Trump signed on Saturday at his resort in Florida caused a combination of panic, anger and uncertainty and threatened to destroy the decades of trade in North America, while at the same time stressing relations with China.

“The Canadians are embarrassed,” said US Ambassador to the United States, Kirsten Hilman. “We look at ourselves as your neighbor, your closest friend, your ally.”

Following a campaign bet, Trump may also break his promise to voters last year that his administration can quickly reduce inflation. This means that the same impotence, which it is facing from other countries, can also spread to the country of consumers and businesses.

“Will there be any pain? Yes, maybe (and maybe not!), “Trump said in a social media publication. “But we will make America great again and all this will be worth the price to be paid.”

His administration has not said how high this price can be or what improvements will be to see when the illegal immigration and smuggling of fentanyl will be to deserve the removal of the rates that Trump has imposed on the legitimate justification of the economic emergency. Tariffs will start on Tuesday.

“If prices rise, it is because of other people’s reactions to America’s laws,” his internal secretary Christie November told NBC’s Meet The Press.

In his truth, Trump has focused especially to Canada, which responded with response. Trump puts a 25% tariff for Canadian goods, with a 10% tax on oil, natural gas and electricity. Canada imposes 25% tariffs for more than $ 155 billion for American products, including alcohol and fruits.

Trump headed against Canada’s trade surplus with the United States: “We don’t need anything they have. We have unlimited energy, we have to make our own cars and have more timber than we can use. “

Despite Trump’s claim that the United States does not need Canada, a quarter of the oil that America consumes a day is from its ally to the north.

Trump claims that without this surplus, “Canada ceases to exist as a viable state. Raw, but true! Therefore, Canada must become our hidden 51st country. Much less taxes and far better military protection for Canada people -and without tariffs! “

Canada’s Ambassador to Washington said the US had a $ 75 billion commercial deficit with Canada last year, but noted that one -third of what Canada sells in the US was exporting energy and that there is a deficit when prices at Oil are high. About 60% of the imports of raw oil in the United States are from Canada.

Prime Minister Justin Trudeau encourages Canadians to buy more Canadian goods and says Trump’s moves will only cause pain in North America. More than 75% of Canada exports go to the United States Canada will first focus on alcohol, cosmetics and paper products; A second round will later include passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, diaries and more.

Canada is the largest export market for 36 states, and Mexico is the largest trading partner of the United States

The Canadians “I just don’t understand where this comes from … And there is probably a little injury, right?” Hillman, the ambassador, told ABC this week on Sunday.

The President of Mexico, Claudia Shainbaum, has also announced new rates and suggested that the United States do more within their own limits to cope with drug addiction. She and Trudeau spoke after Trump’s announcement and agreed to “improve the strong bilateral relations” between Canada and Mexico, according to the Prime Minister’s office.

The Chinese government has said it will take steps to protect its economic interests and intend to bring a case to the World Trade Organization.

For Trump, the open question is whether inflation can be a political moment of pressure that would make him retreat. As a candidate, Trump has repeatedly struck Democrats because of President Joe Biden’s inflation, the result of the problems of the supply chain during the coronavirus pandemic, the Biden administration’s own costs to encourage Russia’s recovery and invasion of Ukraine.

Trump said his previous four years as president have low inflation, so the public should expect the same if he returned to the White House. But he also said specifically that higher inflation will stagger the United States as a nation, a position from which it now seems to be retreating.

“Inflation is a disaster,” he said at a rally at the Philadelphia campaign. “This is a country-bastery. This is a total chop-wrestler. “

Larry Summers, Minister of Finance in the Clinton Administration, said the tariffs were a “self -inflicted wound to the American economy”.

“Inflation can increase in the next nine months by so much … like 1%, just as we tried to download it,” he told CNN’s domestic policy.

He added that “on the playground or in international relations, harassment is not a permanently profitable strategy. And that’s it. “And the ultimate winner, suggesting Samars, will be the Chinese leader Jinping because” we have moved to drive some of our closest allies in his hands “and” we legitimize everything he does by breaking all international standards that We created. “

Outside the analyzes, they make it clear that Trump’s tariffs will harm the voters he intends to help, which means that he can eventually have a resolution.

An analysis of the Yale budget laboratory shows, if the tariffs will continue, the US average will lose approximately $ 1.245 revenue this year, what would be the total equivalent of a $ 1.4 trillion tax increase over the next 10 years.

Goldman Sachs, in a Sunday analyzer note, stressed that tariffs enter into force on Tuesday, which means that they are likely to continue “although the last -minute compromise cannot be completely off.”

The investment bank concluded that due to the possible economic damage and possible remedial conditions “we think it is more likely that tariffs will be temporary, but the prospects are unclear.”

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Associated Press writer Rob Jillie in Toronto contributed to this report.

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