Trump Gets Results

But don't take my word for it: 

American president-elect Donald Trump said that he would impose a 25 per cent tariff on all products entering the United States from Canada and Mexico on Monday. The tariff is not in place yet and it has already had repercussions on the Canadian economy. The loonie fell to the lowest level since May 2020, the Canadian Press reported, although the Canadian dollar was already weakening.

According to the announcement, made on Trump’s social media platform Truth Social, the tariff would be imposed as of Jan. 20 as one of Trump’s “first Executive Orders,” he said, adding that it “will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country.”

“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price,” he said.

Canadian Prime Minister Justin Trudeau said on Tuesday morning that he is set to meet with premiers across the country on Wednesday, per National Post’s Catherine Lévesque, to discuss the topic. Trudeau told reporters while he was on his way to a cabinet meeting that he had a “good call” with Trump the night before.

“We obviously talked about laying out the facts, (talked) about how the intense and effective connections between our two countries flow back and forth. We talked about some of the challenges that we can work on together,” per NP.

 

(Sidebar: Mr. No Business Case must be worried ... after someone explained to him what Trump meant to do.)

 

 

First come the threats:

President Claudia Sheinbaum suggested Tuesday that Mexico could retaliate with tariffs of its own, after U.S. President-elect Donald Trump threatened to impose 25% import duties on Mexican goods if the country doesn’t stop the flow of drugs and migrants across the border.

 

Then the reality:

NEW: MX President Claudia Sheinbaum scrambles to get in line after Trump vowed to slap 25% tariffs on Mexico, says she has always shown willingness to help fight the fentanyl epidemic.

It’s remarkable how quickly they get in line.

During a press conference, Sheinbaum said she… pic.twitter.com/eWRcX4AXPA

— Collin Rugg (@CollinRugg) November 26, 2024

 

Even more bad news for the Canadian dollar:

The Canadian dollar fell to its lowest level since May 2020 after Donald Trump threatened to impose tariffs on Canadian goods shipped to the United States once he takes office in January.

The threat of tariffs added a further drag on the loonie, which has been moving lower against the U.S. dollar since September.

The loonie was at 71.01 cents US in early afternoon trading after dipping below 71 cents US earlier in the day.

BMO Capital Markets senior economist Robert Kavcic said financial markets were responding to increased risk on the trade front.

"It's a pretty stiff headwind against the currency that's already been under pressure just from domestic economic factors," he said.

 

Not that this, nor the tariffs, matters to Justin.

Whatever he told Trump, he will not follow through to avoid tariffs or any sanction.

As long as Justin gets to be Caligula or Louis XVI, nothing bothers him.