Recently trump made a bold (AKA BS) statement about imposing a 200% tariff on John Deere if they moved production to Mexico. He remains too arrogant and dumb to realize he would not have that authority, which would violate a treaty the he signed.
I was a bit put out that no one seemed to pull that back into reality---so I went in search and at least in this case the facts were pointed out.
trump's tariff threats should make everyone's toes curl----because it is the consumer who pays those tariffsBut it's likely that, if elected, Trump could not take such a step against the country. The United States-Mexico-Canada Agreement (USMCA) prohibits the use of tariffs on many goods, allowing companies to produce them in one of the three countries and export them to the others. President Trump signed the USMCA in 2020.
Economists have almost universally warned that tariffs raise inflation, because the added cost of the products are passed along to the consumer.
Trump used tariffs while in office focusing on ag exports. It was a move that was met with criticism from Iowa Senator Chuck Grassley.
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