Tag: politics

“Following swift market backlash, Trump on Wednesday announced a one-month reprieve for autos and auto parts from the sweeping 25 percent tariffs he levied one day earlier. In doing so, he signaled an openness to hearing appeals from other industries for additional exemptions to the Mexico and Canada tariffs. It’s a stark contrast to the approach he is taking with the American people, whom he is asking to shoulder the risk of higher prices as a result of the tariffs, in exchange for the promise of longer-term economic benefit.

“I don’t know what the administration’s plan is,” said Sen. Rand Paul (R-Ky.). “If they’re using [tariffs] as leverage, seems to me it would be better to threaten them, negotiate and you put them on or not on.”
Together, the conflicting actions reflect the president’s dual impulses: longstanding sensitivity to stock market fluctuations — which he has long read as Nielsen ratings for his performance — and a love of tariffs as a primary instrument to get what he wants from foreign governments.

That tension is also reflected within Trump’s circle of advisers, who spent much of Wednesday debating whether and how far to mitigate the impacts of a trade war on American industries and consumers.

“It’s the greatest show on Earth. We’ll put tariffs on tonight, but tomorrow we’ll tell you we may negotiate and take them off,” a person close to the administration, granted anonymity to discuss internal conversations, told POLITICO. “But stay tuned, because you never know what tomorrow’s gonna bring.”

The self-inflicted economic uncertainty comes as Americans remain concerned about high prices, with polling showing that people don’t think the administration is doing enough to address the economy even as they are pleased with its performance on other issues. It also comes amid growing frustration on Capitol Hill, particularly among Republican senators from farm states, who fear the ripple effects from the tariffs on their local economies.

And it’s adding to confusion about whether the new tariffs on Canada and Mexico are truly aimed only at stemming the tide of fentanyl flowing across the U.S. border — a message Trump’s lieutenants have underscored far more firmly than the president himself — or reflective of the administration’s broader protectionist goals. The new tariffs, after all, are only a prelude to the more sweeping reciprocal tariffs the president has promised will take effect April 2 — and it’s unclear even to many of the president’s close allies what actions Canada and Mexico could take at this point to lift the tariffs entirely.”

https://www.politico.com/news/2025/03/05/trump-tariff-war-political-risk-00214567