Canada, Mexico war of tariffs self-inflicted harm by US Government, and then NO.

[paxmao]

Both the President of Mexico (Sheinbaum) and Justin Trudeau (Canada's PM) have received the news of the 25% tariffs imposed by Trump on goods and immediately proceeded to put an equivalent amount of penalties to US products.

The POTUS is effectively fulfilling the electoral programme - so anyone who voted for Trump but expected containment... well, you know... not gonna happen - but otherwise no surprise.

However both Canada and Mexico are pointing out that there is no winner on this. The effects are going to be immediately felt in Canada and Mexico, but certainly in many of the US States (who BTW voted Trump).


https://www.youtube.com/watch?v=nLB46AR_O94

And then just a few hours later, Trump backs up and suspends the tariffs for one month. It seems to me that a few CEO's must have explained a few things to Trump, like the basics of economics and such.

https://www.youtube.com/watch?v=9o3uzCsq5VE

https://youtu.be/pJwNnBr0XTE

Companies are quite careful on how do they invest and all this is creates exactly the wrong environment for growth.

[BADecker]

Whatever happened in the past regarding tariffs, here is what is going on now.


Trump's Goal Is To 'Abolish The IRS' As Layoffs Loom: Lutnick


https://www.zerohedge.com/political/trumps-goal-abolish-irs-layoffs-loom-lutnick
Lutnick: Donald Trump announced the external revenue service, and his goal is simple: to abolish the internal revenue service and let all the outsiders pay.

---

Trump has said that the External Revenue Service will force foreign trade partners to "finally pay their fair share," and has previously floated the idea of abolishing federal income taxes as part of his plans for "tariffing and taxing foreign nations to enrich our citizens."

Lutnick also said that Elon Musk and DOGE were "going to cut" $1 trillion, "and then we're going to get rid of all these tax scams that hammer against America, and we're going to raise a trillion dollars of revenue."
...

[paxmao]

An "external revenue system" already exist, it is called Customs. That's it.  As usual Trump pretends to re-discover the wheel ... and call it the Trumpeel.

Tarifs do not make other countries pay, they make the end consumer pay and also other countries tend to put an equivalente level of tariffs for US products.

A six year old example so that even dumBAss can understand: Someone lives in the US and wants to buy a Chinese car for 1000.

Now, tariffs of 50% kick in. Now you have to chip in 1500 for Chinese. But the funny thing is that the Chinese will still sell their car to the US a 1000, those extra 500 will be paid by the guy wanting to buy it.

The net effect of tariffs is China selling less, but the US people paying more. There is no "external revenue".

[Hispo]

...

I don't understand yet what kind of mechanisms and laws are going to be by the government of the United States to force people from other countries to pay for the wealth of the new America Trump wants to build, though. The United States does not have any right or power over other nations therefore, Trump cannot effectively tax money off citizens of countries like China, Iran, Russia, Venezuela or others. Tariffs are paid by the people of the USA and the extra revenue will co tongue to come from citizens.
There is no chance Trump will get rid of the IRS and replace it by a new department which does not have any power to tax people living in countries which are foes of the USA.

During the whole term of Trump, people will continue to be taxed by the IRS as usual, because money needs to come from somewhere

[BADecker]

...

I don't understand yet what kind of mechanisms and laws are going to be by the government of the United States to force people from other countries to pay for the wealth of the new America Trump wants to build, though. The United States does not have any right or power over other nations therefore, Trump cannot effectively tax money off citizens of countries like China, Iran, Russia, Venezuela or others. Tariffs are paid by the people of the USA and the extra revenue will co tongue to come from citizens.
There is no chance Trump will get rid of the IRS and replace it by a new department which does not have any power to tax people living in countries which are foes of the USA.

During the whole term of Trump, people will continue to be taxed by the IRS as usual, because money needs to come from somewhere

People of other countries love selling to the USA. So, they will absorb the tariffs somehow. This means that the US will get tariff money to offset IRS taxes. Also, there is all the corruption money being found by DOGE, which will be cut off, making government to run more efficiently. No more IRS taxes necessary.

Since the potential of IRS taxes is what the Fed Res Bank uses to determine how much money the US gov can borrow from the bank, no more IRS means that govt will not be able to borrow any more money. This will dry up a whole lot of funds from the Fed Res, and that along with the gold troubles it is having might even collapse it... leaving the US Treasury to pick up banking for the people of the US.

[Nathrixxx]

Both the President of Mexico (Sheinbaum) and Justin Trudeau (Canada's PM) have received the news of the 25% tariffs imposed by Trump on goods and immediately proceeded to put an equivalent amount of penalties to US products.

IMO 25% tarrif plan is too much, we must say the truth on this, then I don't expect this to come over Canada and Mexico, taking into account how they have been previously maintaining close ties together.