We’ve been hearing a lot about ‘coming tariffs’ on Canadian and Mexican goods entering the US. And until this past week, they’ve just been threats. But now they’re being readied for deployment. And American shoppers stand to be hit hardest…
Trump vs. the Truth
It’s been said more than once that US President Donald Trump simply doesn’t understand the prin-ciple of import tariffs on foreign goods. He’s mot alone: A new Statista poll shows only 45 percent of average American’s know what a tariff is.
Even after being corrected many times, Trump is still telling his ‘base’ that sticking 25 percent or higher tariffs on Canadian and Mexican goods will stuff US coffers with billions of extra ‘tax’ dollars. In fact, the move will raise prices for American shoppers by at least 25 percent on a multitude of everyday products.
That’s because Trump perpetuates a fundamental misunderstanding of how tariffs work. He says foreign governments and producers have to pay the US government for the privilege of bringing their products into the country. The truth is, American importers have to pay the tariffs, adding that cost to the prices they pass on to wholesalers, and from there, to retailers such as supermarkets.
Why tariffs in the first place?
Trump is demanding Canadian and Mexican officials close their borders to stop illegal migrants entering the US from both the north and south. And to stem the alleged flow of illegal drugs from both directions.
In Trump’s view, those aren’t HIS or his country’s problems. They’re ours. That should come as no surprise. He never takes responsibility for anything bad. And he takes credit for just about everything good that happens anywhere in the western hemisphere. But that’s another story, for another time. And probably another place, altogether…
The real, un-Trumpified truth…
Canada and Mexico, together, account for almost 30 percent of the US’s food imports. According to CNN, “The two countries supply a significant share of several key food categories. For example, Mexico is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain, livestock and meats, poultry and more.”
Tariffs come into effect as the avian flu crisis – and associated recalls of eggs, chicken and dairy foods – continue to drive-up the retail prices of many such staples.
As we noted in this space this past week, Americans are starting to panic as the price of eggs, in particular, has doubled in some parts of the country. There are already shortages of some affected foods in other areas.
My take
Meanwhile, Canada has slapped it’s own 25 percent tariffs on American goods entering that country. Canadian Prime Minister Justin Trudeau angerly told reporters Saturday, Canada and the US have traditionally been ‘friends and allies’. But if that’s no longer that Trump wants, Canada is prepared to stand up for itself.
“We don’t want to be here, we didn’t ask for this, but we will not back down in standing up for Canadians,” Trudeau said. “People are upset and hurt by what’s gone on here. But I have faith.”
Canadian federal opposition party leader Pierre Poilevre showed solidarity in his own announcement: “We will protect our economy, defend our sovereignty, bring home production and pay cheques, and never back down.”
Trump admits, he’s no economist. That’s all too clear. But does he really think he’s fooling anyone with his outright lies about how tariffs work? And what does he stand to gain from perpetuating his ‘tariffs’ hoax?
When the inevitable shortages and higher food prices hit the retail level, who will he blame them on?
~ Maggie J.