Wall Street and US goods producers dependent on international trade are getting increasingly impatient with Donald Trump’s cosplay Bonapartism and the strains it is placing on the US economic and military alliance system. The latest irritant is Trump’s resurrection of a Depression-era regulation to impose renewed tariffs on Canada, another transparent tactic by the self-described master of the “art of the deal” designed to gain leverage in renegotiating the comprehensive Canada-Mexico-US trade agreement.
Trump has already alienated part of his MAGA base with his ill-conceived war on Iran. Apart from the tech industry titans he has generally favoured, Trump's erratic tariff policies since returning to office last year have angered many within the corporate elite. "The more Mr. Trump keeps swinging recklessly, the more Americans are likely to think there’s only madness in his tariff methods”, complains yesterday’s editorial in the Wall Street Journal. ----------------------------------------------------------------------- Trump Takes Another Swing at Canada Round three of the senseless tariff war between North American neighbors. By the Editorial Board Wall Street Journal July 21 2026 What do you know? President Trump is conceding that his blunderbuss border taxes are harming U.S. business as other countries retaliate. So now he’s whacking Canada harder for punching back. The trade brawl could leave both countries with more bruises than a hockey fight. The White House on Monday exhumed Section 338 of the 1930 Tariff Act to impose 50% tariffs on hundreds of Canadian goods, including hockey sticks, honey, beer, down feathers, fishing rods and golf clubs. The tariffs are set to take effect in 30 days, which means he’s using tariffs as leverage to win concessions from Canada. He may also enjoy showing off his new tariff bazooka. Section 338 lets the President impose tariffs up to 50% on countries that discriminate against “commerce of the United States, directly or indirectly” in relation to foreign countries. No previous President has used this power, which hails from the disastrous Smoot-Hawley Act. The provision was intended to let the President retaliate against countries that impose tariffs on the U.S. Mr. Trump is using the law to punish Canada for retaliating against his tariffs. His tariff order cites Canada’s 25% tariffs on U.S. cars that exceed certain quotas, which were a response to Mr. Trump’s 25% duties on motor vehicles and parts. According to the order, U.S. motor vehicle exports to Canada subsequently fell 22%, while Canadian imports from other countries increased. His order lambastes Canadian provinces for restricting sales of U.S. alcoholic beverages. Canadian imports of alcoholic beverages from the U.S. have fallen by 81%, while increasing for Chile, Japan, Argentina, Ireland, New Zealand and Australia from 13% to 26%. The White House also says Canada gives better access to European cheese under its trade deal with the continent than it does to the U.S. That’s worth renegotiating as part of the U.S.-Mexico-Canada Agreement. But Mr. Trump’s tariff escalation may cause Canada to dig in so as not to appear to be capitulating. That’s the worry of American spirits producers, whom Mr. Trump purports to be defending with his new tariffs. His announcement “deepens trade tensions and raises the risk of further retaliation at a time when many U.S. hospitality businesses continue to face financial hardships,” said the president of the Distilled Spirits Council. Many hospitality businesses have also been harmed by a decline in Canadian tourism. A study in March found that the tourist dropoff has cost between 14,000 and 42,000 jobs in the U.S. markets most exposed to Canadian tourism. Northern border areas have also suffered from a decline in cross-border trade. That may be why Mr. Trump is justifying his tariffs as retribution for Canada’s treatment of U.S. autos and dairy, which are key industries in the Midwest. But Canada is the second largest U.S. trade partner after Mexico, and Mr. Trump’s tariffs are complicating cross-border supply chains, raising costs and creating uncertainty for business. The more Mr. Trump keeps swinging recklessly, the more Americans are likely to think there’s only madness in his tariff methods. -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#42594): https://groups.io/g/marxmail/message/42594 Mute This Topic: https://groups.io/mt/120396155/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/13617172/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
