Copy of AFF Sentinel V22 #11-Tariffs Are Signed, Effective Tuesday
- Steve Dittmer
- Jul 22
- 2 min read
Trump Following His Promises Made, Promises Kept Path
Steve Dittmer | AFF Sentinel
Colorado Springs, CO
Originally sent to subscribers 02/01/25
While there was hope that Canada and Mexico would satisfy President Trump’s demands before tariffs were actually signed, that hasn’t happened. And the grace period, allowing for negotiation before imposition is short -- three days.
Trump signed tariffs of 25 percent on Canada and Mexico Saturday, and ten percent on China. The only exception was a 10 percent tariff on Canadian energy.
The statement on “X” that accompanied the signing announcement specifically pointed out the country’ failures to deal with illegal immigration and fentanyl as the reasons for imposing tariffs.
On top of that, the document specified that the tariffs could increase if the countries retaliate. Both countries have said they would retaliate, (“Trump Signs Tariffs on Canada, Mexico and China, The Hill, 02/01/25).”
Trump said Friday that he may soon impose tariffs on steel and aluminum, pharmaceuticals, oil and gas, semiconductor chips and many products from the EU.
Trump has said he expects the disruptions in trade to be short-term and not have major impacts on American consumers. He is looking at the long-term good of the country.
The question that economists have debated and disagreed on is how much effect this will have on consumers. The importers actually pay the tariff, based on the price of goods. Exporters can lower prices so as not to lose market share in the world’s most important market,, importers can decide how much of increased costs to pass on and consumers can adjust buying behavior based on the price. It is not an exact science and there has been a difference in opinion as to what happened the last time Trump imposed tariffs. Some claim the data shows the tariffs did not affect prices -- due to the above interactions -- others disagree.
How long tariffs are in place and how much affect there will be on supplies of goods adds further variables. Companies have been stockpiling goods since the election, in anticipation of tariffs and supply interruptions. That is one thing for hard goods but quite another for perishable products. Some can’t be stockpiled at all and others, like meat, is limited by the cold storage available and the limitations of packaging and shelf life.
While there could be impacts on certain goods, economists have said in Trump’s big picture, consumers will benefit from lower regulation costs, lower taxes and more companies and jobs located in America.
Our fervent hope is that the difficult work of negotiating and satisfying Trump’s team that the key issues have been resolved will progress quickly and thoroughly. They are issues the country has needed fixing for some time.
Beef demand has been riding a significant wave and we don’t want that interrupted. The processors are already dealing with possible labor problems and the low cattle inventory. They don’t need a long-term tariff problem any more than cattlemen want a damper on the leverage they have gained through lower cattle supplies.
Our address: Agribusiness Freedom Foundation, P.O. Box 88179, Colorado Springs, CO. 80908.
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