Im an importer. The corporate media has done a lousy job of explaining to Americans how tariffs are a tax on US consumers. When our company imports products from any country including China any tariffs are added on to our cost of goods and passed on to the consumer. It's really no more simpler than that. Americans really need to educate themselves better.
Im in Europe - I watch truly global news. the US news is probably the worst in the world, 100% partisan and explains nothing. The 2nd worst is WION in India and even that way better than the US
Its true, but it does also hurt the person exporting to America potentially, if we're being honest. If you're selling into America, you wouldn't want tariffs put on your goods, long term particularly.
Tariffs will increase costs of finished goods and components used throughout US manufacturing. This will be an immediate and huge hike in inflation. To fight inflation the Fed will have to hike interest rates which will be wonderful for the billionaires but possibly take away the middle class. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
A collapse has began!!! Rich people know this.... they are hedging... through hedge funds. It costs them about 6% a year to do this. Those that aren't rich are not hedge and are at great risk in the bubble of all bubbles with the debt at all time highs. The increasing prices have impacted my plan to retire at 62, The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
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I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
It amazes me that Americans do not seem to understand how much damage has been done to the way Canadians view Americans. We always viewed Americans as friends, relatives, kin, allies and yes, competitors as well. This has now largely changed. Many Canadians now view America as no longer an ally but an adversary. Enemy may be too strong a word as of yet, but it is not far off from the current reality of Canadian/American relations. Trust is gone. We have seen what happens to bordering countries when stronger fascist countries decide they want to expand their territory. Most recently Russian's Putin and what is happening to Ukraine as well as remembering images of what happened to those countries bordering Germany during the Second World War. Americans need to understand these are the things Canadians are thinking about, and for good reason. No matter how this turns out, I doubt that Canadians will be able to trust America again. You have to remember, this is what a vast number of Americans voted for and are cheering it on. The anger in much of Canada is palpable. If we go down, we will go down fighting. I cannot help but feel sad that it has come to this.
Canada should join BRIC. We can be both NATO and BRIC because of our global connections. Wer are NOT USA and do not support the clownshow going on there.
Stop whining. You voted in a dictator, twice. You wrecked an amazing economy which withstood the great recession better than anyone. And, now you liberals have a trillion dollar debt for Canada. So pull on big boy pants and get a job.
Trump is disrespectful, and arrogant to call Canada the 51'st state. Never, we're proud to be Canadians. Canada is a sovereign country and we will stand united to fight tariffs.
It was Trump's arrogance that forced Trudeau out, so you should be thankful, and Trump and the French guy will get along great and both countries will prosper.
@@duanekelly-fe5bt is delusional. Trudeau resigned because of dissatisfaction in his own party NOTHING to do with the orange bully. Having PP as a PM will change NOTHING with the orange clown
@@duanekelly-fe5bt Not really, more like internal pressures from within Canada. If anything, the Tangerine Toddler's temper tantrums are more likely to turn most Canadians away from voting right-wing. He's the best advert for liberalism there is. Also, I love the arrogant and ignorant refusal to learn the "French guy's" name. Not that you could pronounce it, and CERTAINLY not spell it.
An import tariff is a tax on the importer. The importer will share the tax burden with their vendors/consumers, depending on the elasticity of demand and supply. If demand elasticity is higher than supply elasticity, the burden will fall on the consumer.
The tariffs on China in Trump's first go around didn't cause inflation or higher prices, and in fact Biden kept them on. There is a reason for this, but it would take too long to explain.
@ And you believed that, right? What China did is went to other countries, mostly Brasil, to buy their soybeans, and American taxpayers were on the hook to bail our farmers out. 31.2 billion in lost sales, and we still haven't regained that market. Trump's tariffs are going to start a worldwide trade war, and no matter what a tool like Bessent says, that will be a disaster.
The last time Trump imposed tariffs the added cost was passed on to consumers and his boasts to pay off the Federal debt proved empty. His tax cuts for the wealthy and corporations increased the debt by a third. Expect worse.
Government tariffs, to equal or level the "playing field" of production, is Communism Economics plain & simple. Artificial "toying" to force fairness through tariffs is NOT how a robust Capitalism market should operate.
Sometimes it causes harm down the line:Trump tariff on steel put some smaller businesses to go under,because they relied on the cheaper steel to operate
@donchristie420 Republican policies are more Communist than people realize. Not just Communistic tariffs, but tell all Women they MUST ALL behave the SAME way, as Republicans legislate birthing, is a very Communist policy & agenda.
Canadian here... while no one wants to see a trade war that would harm both our economies, we Canadians must stick up for ourselves. Your president's repeated insults are profoundly disrespectful of a country that has consistently had the US's back since WWI, and only serve to strengthen our resolve. Art of the deal or game of economic chicken... it would be naive to think we won't respond in kind to threatened US tariffs; and understand that 36 states rely on Canada as their #1 export market. Does yours? So this is going to hurt right back. Double the pain actually, with US tariff-induced inflation, plus the loss of US jobs as your top export market implements its own retaliatory tariffs. Party like it's 1929! Also, if you exclude oil, there is no trade deficit... the US is in surplus on goods and services so who's "subsidizing" who exactly? As in any relationship, of course there are disputes, but big picture: we have a level playing field between our two countries and this is a completely unwarranted provocation that will only serve to kneecap both our economies. The saddest thing about it is that we are not only neighbours, but we are (used to be?) each other's' best friend and ally; capable of accomplishing tremendous things when we work together. This chaos is exactly what China and Russia want... far easier and far more productive to simply work with your allies in the first place. Miss our old friend.
One correction, we were fighting both world wars since the beginning so the U.S. came in to help us and other allies bring the wars to a conclusion, not vice versa.
As a Canadian, I'm quite excited. The US gets 60% of their crude oil from Canada. That tap can be closed and there are other markets. As well as all the hydroelectric power from Canada that powers a lot of the US north east. That can be turned off. Sit in the dark, Trumpers. And just to be thorough, let's stop all lumber exports to the US. Good times.
There are Chinese military in Canada, not sure how much. The U.S. defends Canada at great expense to the U.S. taxpayer. Trump is putting an end to that bs. Your resolve will melt down along with your economy and your political system. Give it another year or two of steep decline, and we'll see where everything stands.
@@maruka1716 this is what Krugman is alluding to. Also imagine: tariff revenue goes to a new External Revenue Department, staffed by Trump loyalists. Of course some of the revenue will go to US companies to help them with tooling up to meet demand for US made products. A giant slush fund, sixty billion a year.
@@maruka1716sure, US Customs and Border Protection is part of the department of Homeland Security. They collected $112 billion on imports valued at $3.34 trillion, in 2022. That's 3.3% on average, isn't it? No doubt that revenues are very strictly controlled.
What is the logic of Trump wanting to bring back manufacturing in the US while the US have full employment and is planning to expel 10 million illegal immigrants causing a labor shortage also Trump attacking Canada is strange I think it's a personal vendetta he thinks the US can do without the oil , lumber and cars from Canada but he fails to notice that Canada is the US best customer , hurting Canada is stupid in this regard .
@andrebonneau8738 He's targeting Canada because it's a foreign country that won't do whatever he wants. That is how he is going to operate, do as I say or you're toast. The fact he trashed a bishop proves it. Canada is responsible to its citizens, not Trump. They don't like how things are done in the US.
Canada exports roughly 60% of all imported oil. Yes, Canada provides millions of barrels of oil daily. Electricity is sold to quite a few Northern US states from Canada. Cars, generic brand drugs, parts, minerals like lithium, and metals like aluminum, steel are imported to the US from Canada. Now, put a 25% tariff on all of that, and then you see why the president wants to overtake Canada literally.. What he doesn't want are Canadians fighting back, ordinary people, governments. Too bad, but if he tries this, he WILL get a fight. We're nice UNTIL we're NOT 🇨🇦.
they will be real enough at the gas pump and grocery stores. and the special place he preparing for all the tarriff money to go? WHO gets that money? It is a scam of huge proprtions that is sinking USA.
i think theres more to it,when the icc issued a arrest warrant for Netanyahu prime minister Trudeau said he would comply with it,almost same day saw lindsey graham pissed and said any country including canada would have their economies crushed if they complied with icc,trump doesn't want to look like he doesn't agree with international criminal court as it will make him look bad
No, Trumps issues with Canada are quite real. In the span of the last week, I have heard from knowledgable Canadians that there is Chinese military in Canada. This is a very real security threat.
They are real. We run a 200 Billion dollar deficit with Canada every damn year! That's not fair/ or right. They also block many of our goods coming into their country.
Finally some voice of reason. Tariffs as means of making things “made in America” just for its own sake is stupid. Countries have to specialize in what they do best that is why we have global commerce. No country can make everything. Hence cooperation is key. Also those tariffs will not make America richer. Most people will end up picking up the bill and the middle class will be no more.
Made-in-America products are typically too expensive to purchase due to labor costs, it's why American manufacturers leave and set up in other countries, which is what John Deere is presently doing. As the cost of living goes up, workers want raises. The only way to stop is for the Government to lower the cost of living and if they want manufacturers to move back, to the US they will be wanting tax breaks. You're right about tariffs, you've done your homework, and I applaud you!
Concerning just Mexico. Its reasonable to say that a lot of the tariffs on Mexico will be on American products anyway. Mexico has built an manufacturing base for American cars and car parts. Other stuff also. American companies do it so the price will be cheaper by investing in factories in Mexico. If a plant were to shut down that decision would come from American companies not a Mexican one. So wheres the sense.
@@629Justme American companies are going to pay the tariffs regardless, I'd say the one thing tariffs are supposed to do is promote domestic manufacturing. However, if the price to manufacture in the US is till higher than what they will pay in tariffs they will just pay the tariffs. Ultimately the US companies that have to pay this import tax are going to pass it on to the consumer. The only downside to foreign companies is the higher cost to their customers meaning, less products being purchased on the ability for a company to import as much as they were prior.
@ Yes. And we arent even considering all of the raw materials that America imports. China has said that they will cut back on exporting the raw materials that the semiconductor industry needs to make what ever percentage of chips that America still makes after laughing at Taiwan for thinking that they should just make chips and not design them. So now the wanted increase in the chip making capacity in America will be held back by not having enough supply of the materials that chip-makers need. Why? because Djtrupm threatened them with less sales in America of jeans, gadgets and other minor stuff that is a minor situation on the big scale. LOL'n but only because of the ridiculousness of the short shortsightedness that doing this stuff is about.
If he keeps repeating the same thing, "other countries are going to pay" then he's wrong, completely wrong. It may be because of he told the American consumers they're going to pay for the costs of tariffs, had done so before the election, he would lose a lot of votes. He's got everything he needed from the people, he doesn't have to worry if his tariffs cost ordinary people money, he got exactly what he wanted. Votes.
He is all over the map on every issue Must be mental . He keeps changing on the Ukraine war issue in bizarre ways. OPEC will end it will lower oil prices China's leader will end it It's up to Putin to end it
@@dolurosu he is just the simple hand puppet. Look at the folk next to him at his inauguration. America voted in an oligarchy interested only in increasing their own wealth.
@@duanekelly-fe5btmaybe. But an import tariff is paid by the importer to the government. NOT the exporter. that extra cost, lets say 20%, is added to the sale price which is ultimately paid by the consumer. When Trump says China will be paying us trillions of dollars, he is grossly mistaken. It is Americans paying trillions to their own government to buy more expensive products.
@@duanekelly-fe5bt It hurts both ways! Higher prices for the consumers of the importing nation, and lower sales for the producers (and workers) in the exporting nation. Like Krugman says, tariffs throw sand in the gears of international trade. Certainly, Trump's tariffs will provoke retaliation from Canada and Mexico, so everyone in North America will suffer a decline in their standard of living. People interested in knowing more about the impact of tariffs can read the Wikipedia articles on "Comparative Advantage" and "Autarky," (which is the direction Trump seems to want to take USA).
It sucks. As a Canadian I won't be buying anything from the States as long as Trump is President. Canada needs to expand it's trading partnership and stop relying on the US so much.
Here in UK since 2020 many online shopping pages have 1000's of items labelled "Currently out of stock", which is really great. You can also get this at the grocery stores. We all love "Currently out of stock" so stores have packed the shelves with that. I guess US customers will also now be able to have "Currently out of stock" as well. That's progress. Saves money as well.
Hey Unprofessional anchors! Mexico apart of being the main client of US, we're 99.9999% hardworking families that have absolutely no ties to the cartels the US has armed and marketed so well, so STOP NORMALIZING THE LIES! Use your brain and stop playing dumb! I agree with Paul 100%
I have worked with a lot of Mexican people. I really like and respect them. Very hard working people. American people have gone nuts. I agree with what Professor Krugman says.
@Noiretranquility thank you I appreciate this information! This is what i thought. Trump lies about Canada as well. But he lies in general non stop and it harms a lot of good people.
Putting tariffs on Canada and Mexico is as useful for US economy as putting tariffs on Texas or Illinois. From a business perspective it is all an American integrated economy.
I hope all the dummies who said “the president doesn’t actually have that much power” or “I don’t care, it doesn’t impact my own life” will remember this.
Thanks for reminding all of the hugely exaggerated claims even 7:59 after inauguration DT continues to make about the northern border. The minimal pushback on this is driving us crazy in Canada.
Let the tariffs games begin. The professor knows his stuff and explains as simply as he can. We must tighten our belts and hope we all ain't swallowed up by this "Tariff War."
@@britishrocklovingyank3491 you mean domestic/American countries? Yeah, that's the point: increase the margins for countries that produce domestically, or aren't part of the CN/CA/MX trade-flow.
America has never won a trade war with canada, it is not possible, he lost the last trade ware just 4 years ago, trump has betrayed americans in the worst way. When you start to suffer make sure to thank maga.
Tariffs will hurt the country that buys the most stuff more. Higher prices, inflation, higher rates of interest and eventually recession. There are no countries who buy more stuff than USA.
@@robertplant2059 Yeah but that is not Mexico or Canada that is China. Canada/Mexico means major hike on cost of oil, gasoline, diesel, natural gas, electricity, FOOD - even freaking Texas freezes in winter so any vegetable crop is DEAD - so you MUST import vegetables from Mexico in winter - if you tax it be ready for 25% jump in price but you also need people to manage the tariff system = 50% jump in price and not over many many years but instant BOOOOM you will pay more and the funny thing is??? We can't magically grow vegetables in winter, peppers?? In Winter? NO NO NO only Mexico can export that so we will have to pay the Tariffs hike in price and have NO alternatives to import and pay the higher price. The tariffs on Mexico are BS --- We have no alternatives to Vegetables from Mexico what about beer from Mexico? Come on now.
Another youtube comment that is factually incorrect yet still has "likes" . You have that a bit backwards. Tariffs hurt the country that sells the most. I can explain it more if you'd like, but its as simple as 2+2....just let me know.
Trade barriers and tariffs has never in the history of mankind made anyone richer - and it will not happen in America either. Your trade deficit may become smaller - but so will Your economy. The Americans do not produce all they import. And if they do it is usually at a higher price or lower quality. If You buy a lot of stuff - thats a problem. It will affect American economy - there is no way around it. One result could be that the interest rate will not come down as planned - or if the trade war is serious enough, may even rise due to rising inflation. This is poison for American (and European) economy - but again more expensive for the consumers who consume the most. Americans. Top Economists in USA and Europe alike say exactly the same thing - by all means scour the internet. To say somthing different is more a MAGA belief system. Facts have become "alternative facts" or "fake news". But they are still facts - and You are still wrong.
Manufacturers pay the tariff to the US government and pass the cost on to the consumer. It's the government balancing the books on the backs of taxpayers.
Don't forget the inevitable counter tariffs, which will hit key US manufacturers that produce goods Canada and Mexico can get elsewhere. Because, unlike Trump, they're willing to strategically apply tarrifs instead of knee capping themselves for unclear reasons.
How is giving up the life of a billionaire in order to work 24 hours a day and get shot at working for himself? He's the only president in history to donate all of his salary. Others came in broke and got rich in office like Obama and Biden. So tell me again why he's doing it for himself.
Trump has told us what he is doing with regard to Canada. He wants Canada to be the 51st state and he has said he will use economic leverage to that end. Trump knows that if he puts 10-25% tariffs on Canadian exports that he will cause a recession in Canada and he is hoping the pain of that will make Canadians want to join the US. It will never work but unfortunately for us Canadians the next for years are going to be difficult.
he knows that will never happen, it will also cause complete chaos for the north american manufacturing system which will also hurt their economy and be wildly unpopular with many Americans . I frankly dont understand what his goal is, and anyone who thinks they do may be giving too much credit to him in the first place. I doubt things will be good, but the US economy cant adapt and overcome the hurt it would cause quickly enough for Americans to be ok with it, especially after the moron said he would lower costs day 1
Adding Canada would be like adding another California. The Republican party would be finished. Kind of an odd objective for a Republican President don't you think?
Donald Trump is going to make life much, mucher harder for Average Americans. And, He could not care less about anyone, except himself. Every thing he has ever said or done drives home that point. We have lots of people too dense to get it.
Americans are loaded they can afford a little bump here or there. I mean we’re only talk about a few bucks more per gallon on fuel, it’s a drop in the bucket for economic sovereignty.
Only the New Deal programs, rearmament for WWII, and WWII itself (with all its attendant costs) saved the US economy. I fixed it for you. Oh, and tariffs prolonging the depression is just your theory; I've not seen any proof.
Let see in 2-3 years, the US economy will be struggling and the imbalance between the poor, middle class (the middle class will join the poor) and the rich will be even greater.
Tariffs on China = 25% hike in food prices. The thing is the rich can always pay for food its pennies even a rich man who loses everything has cash stashed away so don't worry about the rich but the poor, man 25% hike in food for poor Americans is not good. A lot of people will not have food on the table at least not any vegetables from Mexico and when you reduce supply also US food will explode up in prices - supply and demand will be crushed like during COVID so expect HUGGGE spike in food prices - also tariffs take manpower to manage so 25% is not where it ends - managing the tariff system will cost another 15% so 40% even 50% total rise in food prices is on the table.
Agreed, especially since he just blocked a bill to help lower prescription drug prices in the US. Desperate Americans will only try to take advantage of our medical system more now, meanwhile Trump tries to bash it or suggest we would be better off with the American system. Hell no, Americans don’t even want their own system! 😂🇨🇦
And below market priced oil and hydro. Raise our export mineral, timber and steel prices only to the US., So the tariffs really hurt! Stop playing nice.
Worse than that. Trump said Canada and Mexico 25% on Feb 1st. Tariffs on China and every other Country will be reviewed for a Report Apr. 1st. With the CEO of Tik Tok and Elon Musk with huge China businesses on the stage even closer to Trump than his own cabinet picks shows China may get off easy.
If Mexico gets their border and the cartels under control, they will have no problem. (They could start by paying their police more than a poverty salary that they have to supplement with big bribes.)
Canada has everything that North America manufacturing and consumers need and has been a secure and reliable partner for a hundred years. Canada exports almost 80% of what it produces to US companies that use those inputs or to US consumers. Canada also imports more than 50% of what it needs from US companies. Canada never joined OPEC and levered its energy advantage against America when many other countries were. Canada's goods are priced at a 60-70 cents on the US dollar- a real bargain for American firms and consumers. Let's remember that a 25% tariff on Canadian raw materials, and energy coming to the US is actually paid for by American manufacturers and ultimately American consumers who (like Canadians) are really feeling strong inflationary forces that are reducing their buying power and quality of life. Seems like a 25% tariff would be really hurtful to US businesses and consumers as well as trusted Canadian suppliers.
The Smoot-Hawley Tariff Act was a law passed in 1930 that raised tariffs on imported goods in the United States. The law was intended to help American farmers, but it ended up making the Great Depression worse.
Thank you for an intelligent and balanced report on the issue of Trump’s proposed tariffs and tariffs in general. I am frightened by the potential harm that Trump may impose in so many ways. Trump is a very sick human being.
As a newbie about to invest, you must have these three things in mind 1. Have a long term mindset. 2. Be willing to take risk. 3. Be careful on money usage, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with a financial advisor .
That’s right but yet their were others laughing too but Trump didn’t say a damn thing about them, I watched it and they were all chuckling and Trudeau wasn’t the only one speaking, the were all talking, Trump was to cowardly to say anything about the others, so gutless, sorry excuse for a man and a human being.🇨🇦
Paul has done a good job of warning us about what is happening and about to happen. I would like him to tell us from a day-to-day on the street level how this is going to impact people's lives are we heading for toilet paper shortages. What products may see the greatest increase because of shipping delays tariffs and those kinds of things. How's the average person prepare for this
Anything made with aluminium content (ex. canned goods to appliances) will go up in price, produce will go up, meat may go up, gas prices, electricity in some states, water in some states, car prices, anything requiring precious metals like tech stuff might go up in price, etc. (Oh likely steel too although they could buy cheap Chinese steel...) OH YES, house construction is going to go way up in price! Anything requiring wood for construction but particularly housing since the best house-building lumber is from Canada's forests.
Most likely he is using this threat to make some other objectives seem more palatable at the negotiating table. That being said, I'm just one Canadian, but I stopped buying American products as of Jan 20 and will be doing so for the next 4 years. My advice to Americans: 7 cm to the right next time.
This is my prediction. If Trump continues on this path with his provocations, his outdated imperialism, his mockery of climate change, his worship of billionaires and money, his undue enrichment, he'll get himself assassinated within three years, especially if the economic situation experienced by Americans (you know, the price of eggs!) worsens. At the very beginning of his term, he is already the least popular president of the last 50 years.
All you have to do is go back to the Great Depression to see what's going to happen when the US starts slapping tariffs on everything and what everyone else will do in retaliation. Only difference here is he's now applying this to a functioning economy. Never heard of a situation where a recession plus inflation was literally caused by one individual stupid decisions an inability to change his direction because of mean that he would have to admit he's wrong.
The US accounts for 18% of World GDP PPP. Today, there are other advanced economies and emerging economies with resources out there, which can largely sidestep the US economy. It isn’t the 1950s anymore. BRICS has no chance of threatening the US’ 88% share of the World’s international currency trade, but the broader West could bring the US and USD down a peg or two.
It's not COULD have a terrible effect it's WILL have a terrible effect on the US economy. How is it possible that Americans are so obtuse they don't understand how tariffs work.
What irks me most is the word 'tariff'. It was invented to camouflage the real words: tariffs are importation taxes. This is why people do not understand tariffs, but talk about being taxed for buying products made outside the US, that is easy to understand.
Only for Trump supporters, this is what you voted for, so quit complaining about him. As for non-Trump supporters, keep your head high and your future is bright. For those Trump voters, you lost the election and regret it deeply. The Republicans party has a Trump problem. Democrats, Republicans, and independents must learn to reject Trump and immediately impeach him from office.
Not a big deal. Americans are loaded. They can afford a few bucks more per gallon on fuel. Remember, the United States was the only G7 country to not face a cost of living crisis when inflation went through the roof a couple years ago
How do we deal with fentanyl users to eliminate the problem which is the root cause? Canada, Mexico and China don’t have the problem or not as big as here if they are the source.
@@vaniaandrade9671 Canada could be pushed by the US, into trade relationship with BRICS. China is just waiting to take advantage of this Trump tariff mess.
@ChuckNorrizzed you are delusional... US will never put boots in Canada, except for help... Western alliances are more ancient and important than the temporary Trump!
*IM ALL FOR SAVING WORKING PEOPLED JOBS* but here is something you have to realise - the US [and the West in general] no longer HAS the skilled people, the educated people, the companies that make the machines that make stuff, the institutional knowledge. Am3ric4 wants to build more ships - it cant - the LIMITING factor is the skilled labour... You can put all the tariffs you want on Chinese ships, you still got to buy em. Once you lose these skills and systems, its really hard to get them back
@@duanekelly-fe5bt So inflation affected eggs by 400% but it only affected flour by 20%? Being MAGA doesn't mean you have to be a complete illiterate. The price of EGGS is all about the bird flu.
That depends on how much of these countries imports of good for overall total market in US. What we are talking here is 10% and 25% of what percentages of whole goods being sold in US. This is not a tax on all goods, but specific ones that comes from these countries.
Remember when USA outcompeted others and just attracted bright and sucesfull preople by mere future prospects? The new ideal and "leadership" of the free world seems to not look for a better future just I want my extra big part of the cake now and your bit too. Moral leadership of the free world will pass on from USA if you behave like this. It also makes China, Russia, Iran & Co look way less bad when the supposed to be good side missbehaves for no understandable reason. I guess with a TV show as political manifesto staring a moody Hindenburg sized ego we should expect a shit show now. I so hope my countries leaders don't accept this nonsese and kiss the naked emperors ring.
I completely agree that the targeted subsidizes vs tariffs is a better strategy. Entering into protracted tariff wars with neighbours and allies plays well to the Fox News audience but is not an effective strategy to build economic resilience.
if trump is so concerned about fentanyl why doesn't he go after the nation that makes the world's supply of the drug? less than 1% of the fentanyl entering the u s comes from canada. the largest percentage enters through american sea ports.
These extra import duties are just plain stupid. Many homes have been destroyed, and will need lumber for rebuilding. That now carries a 25 percent extra import levy from Canada. When you exacerbate costs borne by legal business, less-than-fully legal business acquires a marginal advantage. Welcome to Trump's developer world.
What Donny means is if you put 10% directly in my personal bank account I won't put a 25% tariff on your goods....in countries with laws this is called bribery...Duncecap calls it negotiating.....
He is just recycling the old Republican talking point from a generation ago about if you raise taxes on the rich, they will just have to raise prices on the consumer. They always threaten the consumer if anybody even suggests raising their taxes.
These idiots keep wanting Krugman to give a different answer and he’s not going to, no matter how many different ways you ask the same question. The world hasn’t suddenly changed and there’s no scenario where these tariffs will benefit the total US economy.
Im an importer. The corporate media has done a lousy job of explaining to Americans how tariffs are a tax on US consumers. When our company imports products from any country including China any tariffs are added on to our cost of goods and passed on to the consumer. It's really no more simpler than that. Americans really need to educate themselves better.
Im in Europe - I watch truly global news. the US news is probably the worst in the world, 100% partisan and explains nothing. The 2nd worst is WION in India and even that way better than the US
If Americans were more educated they wouldn't have elected Trump. Sadly, they have.
Its true, but it does also hurt the person exporting to America potentially, if we're being honest. If you're selling into America, you wouldn't want tariffs put on your goods, long term particularly.
@@rainflowers1099 So you're punishing the exporter with American consumer money, not the exporter's money. Way to go....
when you have a significant portion of america's population that are a grade 3 level of reading and comprehension good luck with that
Tariffs will increase costs of finished goods and components used throughout US manufacturing. This will be an immediate and huge hike in inflation. To fight inflation the Fed will have to hike interest rates which will be wonderful for the billionaires but possibly take away the middle class. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
A collapse has began!!! Rich people know this.... they are hedging... through hedge funds. It costs them about 6% a year to do this. Those that aren't rich are not hedge and are at great risk in the bubble of all bubbles with the debt at all time highs. The increasing prices have impacted my plan to retire at 62, The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
I feel your pain mate, as a fellow retiree, I'd suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $110k in value stocks and digital assets, Up to 400k so far and pretty sure I'm ready for whatever comes.
That sounds like a good idea. Could you share some details about your financial advisor? How can I get in touch with her?
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
@@TonyVear-z8y Scammer, get a life...
Remember, you're dealing with a guy who managed to bankrupt a casino. That's extremely difficult. Now he's trying it with an entire country.
This is fucking hilarious. Make a casino broke LOL.
He's got a tally of 6 bankruptcies to his name.
He is going to bankrupt the American families.
@@guyspearing4608so he now know a lot about how to ruin a country.
From then on the saying 'the house always wins' is no longer correct.
I can't believe we live in a country where we have to explain that consumers pay for tarrifs.
We're living in the dumbest timeline.
Not dumbest, clowns timeline.
Your mom
Bunch of idiot.
@@analoglime Your dad
no. you elected the dumbest president for the us citizen - "twice"!
It amazes me that Americans do not seem to understand how much damage has been done to the way Canadians view Americans. We always viewed Americans as friends, relatives, kin, allies and yes, competitors as well. This has now largely changed. Many Canadians now view America as no longer an ally but an adversary. Enemy may be too strong a word as of yet, but it is not far off from the current reality of Canadian/American relations. Trust is gone. We have seen what happens to bordering countries when stronger fascist countries decide they want to expand their territory. Most recently Russian's Putin and what is happening to Ukraine as well as remembering images of what happened to those countries bordering Germany during the Second World War. Americans need to understand these are the things Canadians are thinking about, and for good reason. No matter how this turns out, I doubt that Canadians will be able to trust America again. You have to remember, this is what a vast number of Americans voted for and are cheering it on. The anger in much of Canada is palpable. If we go down, we will go down fighting. I cannot help but feel sad that it has come to this.
Canada should join BRIC. We can be both NATO and BRIC because of our global connections. Wer are NOT USA and do not support the clownshow going on there.
@RegB99 count me in as a collaborater. Just lemme know what u need.
Because they're full of hate and are unable to think critically with reason and logic.
Stop whining. You voted in a dictator, twice.
You wrecked an amazing economy which withstood the great recession better than anyone. And, now you liberals have a trillion dollar debt for Canada. So pull on big boy pants and get a job.
Please remember that half the voters voted against this insanity and are still Canada's friends!
Trump is disrespectful, and arrogant to call Canada the 51'st state. Never, we're proud to be Canadians.
Canada is a sovereign country and we will stand united to fight tariffs.
It was Trump's arrogance that forced Trudeau out, so you should be thankful, and Trump and the French guy will get along great and both countries will prosper.
@@duanekelly-fe5bt is delusional. Trudeau resigned because of dissatisfaction in his own party NOTHING to do with the orange bully. Having PP as a PM will change NOTHING with the orange clown
@@duanekelly-fe5bt Not really, more like internal pressures from within Canada. If anything, the Tangerine Toddler's temper tantrums are more likely to turn most Canadians away from voting right-wing. He's the best advert for liberalism there is.
Also, I love the arrogant and ignorant refusal to learn the "French guy's" name. Not that you could pronounce it, and CERTAINLY not spell it.
@@duanekelly-fe5bt American ignorance of Canadian politics is epic.
An import tariff is a tax on the importer. The importer will share the tax burden with their vendors/consumers, depending on the elasticity of demand and supply. If demand elasticity is higher than supply elasticity, the burden will fall on the consumer.
Can’t believe we have to go through this again.
The tariffs on China in Trump's first go around didn't cause inflation or higher prices, and in fact Biden kept them on. There is a reason for this, but it would take too long to explain.
“Those who cannot remember the past are condemned to repeat it”
@@duanekelly-fe5bt by all means, explain
@@paulkern7229 As Scott Bessent said China just dropped the prices to compensate for the tariffs, henceforth a stalemate, which is the short answer.
@ And you believed that, right? What China did is went to other countries, mostly Brasil, to buy their soybeans, and American taxpayers were on the hook to bail our farmers out. 31.2 billion in lost sales, and we still haven't regained that market. Trump's tariffs are going to start a worldwide trade war, and no matter what a tool like Bessent says, that will be a disaster.
The last time Trump imposed tariffs the added cost was passed on to consumers and his boasts to pay off the Federal debt proved empty. His tax cuts for the wealthy and corporations increased the debt by a third. Expect worse.
The wealthy corporations also pass on the cost to the consumer because a tariff is a tax and a tax is a tariff.
Government tariffs, to equal or level the "playing field" of production, is Communism Economics plain & simple. Artificial "toying" to force fairness through tariffs is NOT how a robust Capitalism market should operate.
Sometimes it causes harm down the line:Trump tariff on steel put some smaller businesses to go under,because they relied on the cheaper steel to operate
@donchristie420 Republican policies are more Communist than people realize. Not just Communistic tariffs, but tell all Women they MUST ALL behave the SAME way, as Republicans legislate birthing, is a very Communist policy & agenda.
This time, it's not even hidden. The proposed tax cuts increase taxes for everyone by the top 5%.
Oh I'm experiencing violent rage.
Canadian here... while no one wants to see a trade war that would harm both our economies, we Canadians must stick up for ourselves. Your president's repeated insults are profoundly disrespectful of a country that has consistently had the US's back since WWI, and only serve to strengthen our resolve. Art of the deal or game of economic chicken... it would be naive to think we won't respond in kind to threatened US tariffs; and understand that 36 states rely on Canada as their #1 export market. Does yours? So this is going to hurt right back. Double the pain actually, with US tariff-induced inflation, plus the loss of US jobs as your top export market implements its own retaliatory tariffs. Party like it's 1929! Also, if you exclude oil, there is no trade deficit... the US is in surplus on goods and services so who's "subsidizing" who exactly? As in any relationship, of course there are disputes, but big picture: we have a level playing field between our two countries and this is a completely unwarranted provocation that will only serve to kneecap both our economies. The saddest thing about it is that we are not only neighbours, but we are (used to be?) each other's' best friend and ally; capable of accomplishing tremendous things when we work together. This chaos is exactly what China and Russia want... far easier and far more productive to simply work with your allies in the first place. Miss our old friend.
One correction, we were fighting both world wars since the beginning so the U.S. came in to help us and other allies bring the wars to a conclusion, not vice versa.
As a Canadian, I'm quite excited. The US gets 60% of their crude oil from Canada. That tap can be closed and there are other markets. As well as all the hydroelectric power from Canada that powers a lot of the US north east. That can be turned off. Sit in the dark, Trumpers. And just to be thorough, let's stop all lumber exports to the US. Good times.
Join BRICS.
There are Chinese military in Canada, not sure how much. The U.S. defends Canada at great expense to the U.S. taxpayer. Trump is putting an end to that bs. Your resolve will melt down along with your economy and your political system. Give it another year or two of steep decline, and we'll see where everything stands.
@@deadeye4520 "There are Chinese military in Canada, not sure how much. "
False. There are no Chinese military personnel in Canada.
With Trump and his ilk, we should always assume a grift. Put tariffs on everyone, but give exemptions to people who give Trump money.
@@maruka1716 this is what Krugman is alluding to. Also imagine: tariff revenue goes to a new External Revenue Department, staffed by Trump loyalists. Of course some of the revenue will go to US companies to help them with tooling up to meet demand for US made products. A giant slush fund, sixty billion a year.
exactly...This is the reason why trump will do it. Companies will pay for the exemptions directly to the trump organization.
@@StuckInPeg We already have an external revenue department. We've had one forever. It's called Customs.
I'm clutching my pearls real hard now. So worried about transgender Palestinians.
@@maruka1716sure, US Customs and Border Protection is part of the department of Homeland Security. They collected $112 billion on imports valued at $3.34 trillion, in 2022. That's 3.3% on average, isn't it? No doubt that revenues are very strictly controlled.
What is the logic of Trump wanting to bring back manufacturing in the US while the US have full employment and is planning to expel 10 million illegal immigrants causing a labor shortage also Trump attacking Canada is strange I think it's a personal vendetta he thinks the US can do without the oil , lumber and cars from Canada but he fails to notice that Canada is the US best customer , hurting Canada is stupid in this regard .
@andrebonneau8738 He's targeting Canada because it's a foreign country that won't do whatever he wants. That is how he is going to operate, do as I say or you're toast. The fact he trashed a bishop proves it.
Canada is responsible to its citizens, not Trump. They don't like how things are done in the US.
It's a mystery for sure.
'Full employment'?...the 'official' unemployment statistics are as phony as the 'official' inflation numbers.
It's a bluff, dear. What does con man? What's good for the con man?
Canada exports roughly 60% of all imported oil. Yes, Canada provides millions of barrels of oil daily.
Electricity is sold to quite a few Northern US states from Canada.
Cars, generic brand drugs, parts, minerals like lithium, and metals like aluminum, steel are imported to the US from Canada.
Now, put a 25% tariff on all of that, and then you see why the president wants to overtake Canada literally..
What he doesn't want are Canadians fighting back, ordinary people, governments.
Too bad, but if he tries this, he WILL get a fight.
We're nice UNTIL we're NOT 🇨🇦.
I am relieved that he admits that Trumps issues with Canada are not real. They are there to fulfill Trumps indirect taxation system.
And the US people will be paying it. Like all of his other proposed tariffs.
they will be real enough at the gas pump and grocery stores. and the special place he preparing for all the tarriff money to go? WHO gets that money? It is a scam of huge proprtions that is sinking USA.
i think theres more to it,when the icc issued a arrest warrant for Netanyahu prime minister Trudeau said he would comply with it,almost same day saw lindsey graham pissed and said any country including canada would have their economies crushed if they complied with icc,trump doesn't want to look like he doesn't agree with international criminal court as it will make him look bad
No, Trumps issues with Canada are quite real. In the span of the last week, I have heard from knowledgable Canadians that there is Chinese military in Canada. This is a very real security threat.
They are real. We run a 200 Billion dollar deficit with Canada every damn year! That's not fair/ or right. They also block many of our goods coming into their country.
Only a dumb and foolish country would impose tariffs thinking it won’t hurt their economy in the long run.
They voted for it in the UK and they voted for it in the US. People have unlearned the last 2 centuries in just a decade.
JOBS BACK IN USA....MEANS MORE UNION JOBS!!!! 1000%! NOOOO TO UNIONS!
Wealthy elites: "Oh no! Now we'll have to hire Americans and give pay raises. This is terrible!"
In the short run as well!
Why trump help china to be great...the attack on Mexico & Canada on trade will roll back on US citizen & industrial power based.
Thank you sweet heaven for Paul Krugman! Intelligent talk is very helpful.
You do realize that Krugman has always criticized anything the republicans do. He is a political hack
Tariffs are consumption taxes…….paid by American consumers …….the added costs cause inflation
Buy American goods then. This isn't very difficult.
@@profd65 What American goods would those be?
@ right Walmart is loaded with them
@ Like all sorts of f*cking stuff.
No, the only cause of inflation is printing fiat currency. A rise in the price of one particular product is not inflation.
Finally some voice of reason. Tariffs as means of making things “made in America” just for its own sake is stupid. Countries have to specialize in what they do best that is why we have global commerce. No country can make everything. Hence cooperation is key. Also those tariffs will not make America richer. Most people will end up picking up the bill and the middle class will be no more.
Made-in-America products are typically too expensive to purchase due to labor costs, it's why American manufacturers leave and set up in other countries, which is what John Deere is presently doing. As the cost of living goes up, workers want raises. The only way to stop is for the Government to lower the cost of living and if they want manufacturers to move back, to the US they will be wanting tax breaks. You're right about tariffs, you've done your homework, and I applaud you!
Concerning just Mexico. Its reasonable to say that a lot of the tariffs on Mexico will be on American products anyway. Mexico has built an manufacturing base for American cars and car parts. Other stuff also. American companies do it so the price will be cheaper by investing in factories in Mexico. If a plant were to shut down that decision would come from American companies not a Mexican one. So wheres the sense.
@@629Justme American companies are going to pay the tariffs regardless, I'd say the one thing tariffs are supposed to do is promote domestic manufacturing. However, if the price to manufacture in the US is till higher than what they will pay in tariffs they will just pay the tariffs. Ultimately the US companies that have to pay this import tax are going to pass it on to the consumer. The only downside to foreign companies is the higher cost to their customers meaning, less products being purchased on the ability for a company to import as much as they were prior.
What's the use? When 78 million Americans refused to use the brain
@ Yes. And we arent even considering all of the raw materials that America imports. China has said that they will cut back on exporting the raw materials that the semiconductor industry needs to make what ever percentage of chips that America still makes after laughing at Taiwan for thinking that they should just make chips and not design them. So now the wanted increase in the chip making capacity in America will be held back by not having enough supply of the materials that chip-makers need. Why? because Djtrupm threatened them with less sales in America of jeans, gadgets and other minor stuff that is a minor situation on the big scale. LOL'n but only because of the ridiculousness of the short shortsightedness that doing this stuff is about.
Trump can barely read, you think he has thought any of this out?
If he keeps repeating the same thing, "other countries are going to pay" then he's wrong, completely wrong.
It may be because of he told the American consumers they're going to pay for the costs of tariffs, had done so before the election, he would lose a lot of votes.
He's got everything he needed from the people, he doesn't have to worry if his tariffs cost ordinary people money, he got exactly what he wanted. Votes.
@@dolurosu Oh I take his stupidity as a very serious threat. He's not so stupid that he's not dangerous. The opposite.
@@dolurosu yes, Bush and Trump went to Ivy League schools, they are far far from stupid... like Boris Johnson pretending to be a regular guy
He is all over the map on every issue Must be mental .
He keeps changing on the Ukraine war issue in bizarre ways.
OPEC will end it will lower oil prices
China's leader will end it
It's up to Putin to end it
@@dolurosu he is just the simple hand puppet. Look at the folk next to him at his inauguration. America voted in an oligarchy interested only in increasing their own wealth.
Imposing tariffs on foreign companies is just imposing tariff on the US consumer. Doh!
When countries put high Tariffs on U.S. made products doesn't that hurt U.S. workers?
@@duanekelly-fe5btmaybe. But an import tariff is paid by the importer to the government. NOT the exporter.
that extra cost, lets say 20%, is added to the sale price which is ultimately paid by the consumer. When Trump says China will be paying us trillions of dollars, he is grossly mistaken. It is Americans paying trillions to their own government to buy more expensive products.
Unless you're a president.. then its the country of origin that pays..😅
@@duanekelly-fe5bt
Yes theoretically that is the result.
@@duanekelly-fe5bt It hurts both ways! Higher prices for the consumers of the importing nation, and lower sales for the producers (and workers) in the exporting nation. Like Krugman says, tariffs throw sand in the gears of international trade.
Certainly, Trump's tariffs will provoke retaliation from Canada and Mexico, so everyone in North America will suffer a decline in their standard of living.
People interested in knowing more about the impact of tariffs can read the Wikipedia articles on "Comparative Advantage" and "Autarky," (which is the direction Trump seems to want to take USA).
Thanks 👍 professor krugman you are absolutely 💯 percent right
It sucks. As a Canadian I won't be buying anything from the States as long as Trump is President. Canada needs to expand it's trading partnership and stop relying on the US so much.
Here in UK since 2020 many online shopping pages have 1000's of items labelled "Currently out of stock", which is really great. You can also get this at the grocery stores. We all love "Currently out of stock" so stores have packed the shelves with that.
I guess US customers will also now be able to have "Currently out of stock" as well. That's progress. Saves money as well.
Also "Notify Me" is a solid reliable choice, and it's absolutely free. Really you can't go wrong with either
Will there be separate "Organic" out of stock sections, and "Chock-Full-Of-Chemicals" out of stock sections?
Good one🇨🇦
@@bobaldo2339I’m howling here lol
Hey Unprofessional anchors! Mexico apart of being the main client of US, we're 99.9999% hardworking families that have absolutely no ties to the cartels the US has armed and marketed so well, so STOP NORMALIZING THE LIES! Use your brain and stop playing dumb!
I agree with Paul 100%
Here in Canada all the criminals get their guns from U.S. red states with lax gun laws. So I am right there with you.
Your long distance cousins in US voted for him. They say they eat burgers and fries instead of taco or burritos .. to turn them whites.
So why aren't YOU armed, peons?...your crappy, corrupt government wouldn't like that, I guess.
I have worked with a lot of Mexican people. I really like and respect them. Very hard working people. American people have gone nuts. I agree with what Professor Krugman says.
@Noiretranquility thank you I appreciate this information! This is what i thought. Trump lies about Canada as well. But he lies in general non stop and it harms a lot of good people.
Putting tariffs on Canada and Mexico is as useful for US economy as putting tariffs on Texas or Illinois. From a business perspective it is all an American integrated economy.
its about power and control
@@Michealvt-o5o Yes, FAKE power and control… like the delusional "love-fest" of J6 sold to gullible MAGAts.
you realize how stupid you sound and the 40 that gave you thumbs up are?
What do you expect from a man who bankrupted multiple casinos?
Sure, we collect tons of taxes from Mexico and Canada.
I hope all the dummies who said “the president doesn’t actually have that much power” or “I don’t care, it doesn’t impact my own life” will remember this.
Trump tarrifs would be really really self destructive and stupid.
China will win this trade war.
So you are saying they are a dead-certainty?
They are a form of negotiation, dickweed. You are as dumb as you look🖕
Destructive for America but not for Trump. He is not a patriot.
Don't listen to globalist shills like Krugman. The richest era in U.S. history was funded by tariffs.
Thanks for reminding all of the hugely exaggerated claims even 7:59 after inauguration DT continues to make about the northern border. The minimal pushback on this is driving us crazy in Canada.
Let the tariffs games begin. The professor knows his stuff and explains as simply as he can. We must tighten our belts and hope we all ain't swallowed up by this "Tariff War."
There is no hope. This goes beyond tariffs. Companies not affected by the tariffs are going to jack up prices as well.
@@britishrocklovingyank3491 you mean domestic/American countries? Yeah, that's the point: increase the margins for countries that produce domestically, or aren't part of the CN/CA/MX trade-flow.
@cm_insights_n Yes, an increase in prices with no increase in wages. It's brilliant. It's good for America.
America has never won a trade war with canada, it is not
possible, he lost the last trade ware just 4 years ago, trump
has betrayed americans in the worst way. When you start
to suffer make sure to thank maga.
Tariffs will hurt the country that buys the most stuff more. Higher prices, inflation, higher rates of interest and eventually recession. There are no countries who buy more stuff than USA.
we need to protect american companies, like Lodge.
@@robertplant2059 Yeah but that is not Mexico or Canada that is China. Canada/Mexico means major hike on cost of oil, gasoline, diesel, natural gas, electricity, FOOD - even freaking Texas freezes in winter so any vegetable crop is DEAD - so you MUST import vegetables from Mexico in winter - if you tax it be ready for 25% jump in price but you also need people to manage the tariff system = 50% jump in price and not over many many years but instant BOOOOM you will pay more and the funny thing is??? We can't magically grow vegetables in winter, peppers?? In Winter? NO NO NO only Mexico can export that so we will have to pay the Tariffs hike in price and have NO alternatives to import and pay the higher price. The tariffs on Mexico are BS --- We have no alternatives to Vegetables from Mexico what about beer from Mexico? Come on now.
Another youtube comment that is factually incorrect yet still has "likes" . You have that a bit backwards. Tariffs hurt the country that sells the most. I can explain it more if you'd like, but its as simple as 2+2....just let me know.
Trade barriers and tariffs has never in the history of mankind made anyone richer - and it will not happen in America either. Your trade deficit may become smaller - but so will Your economy. The Americans do not produce all they import. And if they do it is usually at a higher price or lower quality. If You buy a lot of stuff - thats a problem. It will affect American economy - there is no way around it. One result could be that the interest rate will not come down as planned - or if the trade war is serious enough, may even rise due to rising inflation. This is poison for American (and European) economy - but again more expensive for the consumers who consume the most. Americans.
Top Economists in USA and Europe alike say exactly the same thing - by all means scour the internet. To say somthing different is more a MAGA belief system. Facts have become "alternative facts" or "fake news". But they are still facts - and You are still wrong.
..which is also why USA will always have a trade deficit, but Trump and his Trumpers don't understand this
Tariffs is a negative sum game that all parties involved will be impacted.
And this gangster is president. Unbelievable
Manufacturers pay the tariff to the US government and pass the cost on to the consumer. It's the government balancing the books on the backs of taxpayers.
"Importers pay the tariff to the US government."
Its said that the list of tariff-able goods for an importer is like old encyclopedia volumes.
China has paid for a lot of the tariffs themselves so far.
Don't forget the inevitable counter tariffs, which will hit key US manufacturers that produce goods Canada and Mexico can get elsewhere. Because, unlike Trump, they're willing to strategically apply tarrifs instead of knee capping themselves for unclear reasons.
@@CarlGerhardt1 Mexico paid for the Wall too. 😅😅😅
@@CarlGerhardt1no they haven’t.
Excellent guest and excellent video.
RS. Canada
I don't think the general public has any idea how much of our produce comes from Mexico and other countries.
You could have stopped with the word "idea".
I don't think the general public has any idea that things on the supermarket shelf don't just appear there by magic.
Not only that, but Mexico and China buy a lot of American agricultural products.
Economic destruction, inflation, the wars, corruption, etc. will all continue unabated under Trump, in fact it will accelerate under him.
Poor Americans. One of these days they will understand that Trump is not there for you but for himself and his family and friends.
Many of us do understand he is not. Those that voted do not understand. This election proved how misinformed ppl are
How is giving up the life of a billionaire in order to work 24 hours a day and get shot at working for himself? He's the only president in history to donate all of his salary. Others came in broke and got rich in office like Obama and Biden. So tell me again why he's doing it for himself.
Paul Krugman has a very good substack- highly recommended.
Trump has told us what he is doing with regard to Canada. He wants Canada to be the 51st state and he has said he will use economic leverage to that end. Trump knows that if he puts 10-25% tariffs on Canadian exports that he will cause a recession in Canada and he is hoping the pain of that will make Canadians want to join the US. It will never work but unfortunately for us Canadians the next for years are going to be difficult.
he knows that will never happen, it will also cause complete chaos for the north american manufacturing system which will also hurt their economy and be wildly unpopular with many Americans . I frankly dont understand what his goal is, and anyone who thinks they do may be giving too much credit to him in the first place. I doubt things will be good, but the US economy cant adapt and overcome the hurt it would cause quickly enough for Americans to be ok with it, especially after the moron said he would lower costs day 1
Adding Canada would be like adding another California. The Republican party would be finished. Kind of an odd objective for a Republican President don't you think?
whit Trumps Tariffs the only thing its gonna happend, its that no country would like to have a trade with the USA and the USA its gonna end up alone.
Trump wants to add 40 million Democrats to America?
Trudeau is the one who has destroyed Canada. Not trump.
Trump's ignorance is only exceeded by his arrogance.
Donald Trump is going to make life much, mucher harder for Average Americans. And,
He could not care less about anyone, except himself. Every thing he has ever said or done drives home that point.
We have lots of people too dense to get it.
Americans are loaded they can afford a little bump here or there. I mean we’re only talk about a few bucks more per gallon on fuel, it’s a drop in the bucket for economic sovereignty.
@j2simpso I dint vote for more inflation, and I din't vote for a Trade war with Canada. And already regretting my vote.
Soon it will be renamed as MASA. Make America Stupid Again. 😂😂😂
The last time the US did Tariffs big time was 1930 .It prolonged the depression and only the rearmament for the WW2 saved the US economy.
Only the New Deal programs, rearmament for WWII, and WWII itself (with all its attendant costs) saved the US economy. I fixed it for you. Oh, and tariffs prolonging the depression is just your theory; I've not seen any proof.
Let see in 2-3 years, the US economy will be struggling and the imbalance between the poor, middle class (the middle class will join the poor) and the rich will be even greater.
by what tariffs?
Why wait? That’s what is happening for the last 2 decades because of policies by folks like this guy. Him and his friends put us in this mess.
Tariffs on China = 25% hike in food prices. The thing is the rich can always pay for food its pennies even a rich man who loses everything has cash stashed away so don't worry about the rich but the poor, man 25% hike in food for poor Americans is not good. A lot of people will not have food on the table at least not any vegetables from Mexico and when you reduce supply also US food will explode up in prices - supply and demand will be crushed like during COVID so expect HUGGGE spike in food prices - also tariffs take manpower to manage so 25% is not where it ends - managing the tariff system will cost another 15% so 40% even 50% total rise in food prices is on the table.
@@drscopeify Waaaa the sky is falling. did not give a shit when biden denied inflation his whole 1st year.
@@drscopeify libtards
As a Canadian, our government should stop all prescription drugs going south if tRump does that. Plus much more.
Agreed, especially since he just blocked a bill to help lower prescription drug prices in the US. Desperate Americans will only try to take advantage of our medical system more now, meanwhile Trump tries to bash it or suggest we would be better off with the American system. Hell no, Americans don’t even want their own system! 😂🇨🇦
You mean the prescription drugs that were invented by US drug companies?
And below market priced oil and hydro. Raise our export mineral, timber and steel prices only to the US., So the tariffs really hurt! Stop playing nice.
The US is full of experts and researchers on economics. The government should listen to them.
The problem is that Trump thinks he's smarter than everyone else.
It's funny that most Americans don't know that raising tariffs will pass on the cost of consumer goods to themselves.
Canada Should Turn off NYC's Electricity!
3 cheers for Krugman
He's a globalist stooge.
Krug is f---ing hack and always has been.
cheers for a paid off jerk ?? ??
He has stated China Tariffs will only be 10 percent, but Canada / Mexico gets 25 percent... terrible
Worse than that. Trump said Canada and Mexico 25% on Feb 1st.
Tariffs on China and every other Country will be reviewed for a Report Apr. 1st.
With the CEO of Tik Tok and Elon Musk with huge China businesses on the stage even closer to Trump than his own cabinet picks shows China may get off easy.
bully only bullies someone very smaller size, he won't bullies someone with the almost the same size as him.
Real Americans hurt their allies more than their rivals!!!! It's called being a strong Jesus lover
@@san209nha9 Nicely Said
If Mexico gets their border and the cartels under control, they will have no problem. (They could start by paying their police more than a poverty salary that they have to supplement with big bribes.)
Paul Krugman always makes a lot of sense! Nice to hear his intelligent and reasoned explanations.
any educated 8 yr. old knows this stuff. test this dude on something a little more substantial.
@@rodbennett1133 He went to MIT
Canada has everything that North America manufacturing and consumers need and has been a secure and reliable partner for a hundred years. Canada exports almost 80% of what it produces to US companies that use those inputs or to US consumers. Canada also imports more than 50% of what it needs from US companies. Canada never joined OPEC and levered its energy advantage against America when many other countries were. Canada's goods are priced at a 60-70 cents on the US dollar- a real bargain for American firms and consumers. Let's remember that a 25% tariff on Canadian raw materials, and energy coming to the US is actually paid for by American manufacturers and ultimately American consumers who (like Canadians) are really feeling strong inflationary forces that are reducing their buying power and quality of life. Seems like a 25% tariff would be really hurtful to US businesses and consumers as well as trusted Canadian suppliers.
Everyone should read this comment.
The Smoot-Hawley Tariff Act was a law passed in 1930 that raised tariffs on imported goods in the United States. The law was intended to help American farmers, but it ended up making the Great Depression worse.
Thank you for an intelligent and balanced report on the issue of Trump’s proposed tariffs and tariffs in general. I am frightened by the potential harm that Trump may impose in so many ways. Trump is a very sick human being.
As a newbie about to invest, you must have these three things in mind
1. Have a long term mindset.
2. Be willing to take risk.
3. Be careful on money usage, if you're not spending to earn back, then stop spending.
4. Never claim to know - Ask questions and it's best you work with a financial advisor .
@@CharlesK.Foster you forgot to say, buy low, sell high.
Tariffs are a Tax, Companies Not Countries Pay The Tariff Tax, That TAX is often passed along to the consumer.
MAGA morons can't get it 😂
I love the artwork behind this gentleman’s head :) I’m happy to hear a scholar speak about this issue with intelligence.
The infalible genius! Always entertaining. Great TV
The tariff on Canada is Trump getting retribution for Trudeau laughing at and mocking him a few years ago.
That’s right but yet their were others laughing too but Trump didn’t say a damn thing about them, I watched it and they were all chuckling and Trudeau wasn’t the only one speaking, the were all talking, Trump was to cowardly to say anything about the others, so gutless, sorry excuse for a man and a human being.🇨🇦
The whole world laughed at Trump (when they weren't horrified that is...)
@joannemarinelli1936 Yes, but Melania wasn't giving the others the "eye". LOL
Tariffs are bad for the health of the world economy, especially at this point in time.
In that case all the countries that have tariffs on the U.S. should drop them.
Since a tariff is a tax, then we should get rid of all taxes.
@@duanekelly-fe5bt What a dumb statement.
Tariffs on Germany and Japan
As a Canadian, it's time we make new friends, like China. Maybe they'll want to lease some naval and military bases near the US border.
An island of sanity in a sea of absurdity. Thanks Paul.
Paul has done a good job of warning us about what is happening and about to happen. I would like him to tell us from a day-to-day on the street level how this is going to impact people's lives are we heading for toilet paper shortages. What products may see the greatest increase because of shipping delays tariffs and those kinds of things. How's the average person prepare for this
He hates Trump and everyone else that is a republican. He is a political hack
Anything made with aluminium content (ex. canned goods to appliances) will go up in price, produce will go up, meat may go up, gas prices, electricity in some states, water in some states, car prices, anything requiring precious metals like tech stuff might go up in price, etc. (Oh likely steel too although they could buy cheap Chinese steel...) OH YES, house construction is going to go way up in price! Anything requiring wood for construction but particularly housing since the best house-building lumber is from Canada's forests.
Most likely he is using this threat to make some other objectives seem more palatable at the negotiating table. That being said, I'm just one Canadian, but I stopped buying American products as of Jan 20 and will be doing so for the next 4 years. My advice to Americans: 7 cm to the right next time.
This is my prediction. If Trump continues on this path with his provocations, his outdated imperialism, his mockery of climate change, his worship of billionaires and money, his undue enrichment, he'll get himself assassinated within three years, especially if the economic situation experienced by Americans (you know, the price of eggs!) worsens. At the very beginning of his term, he is already the least popular president of the last 50 years.
I actually; in this instance, agree with Krugman on most of his points in this interview.
It’s nice to know someone who knows, as opposed to someone who knows nothing. Reassuring. Thanks.
High tariffs are a wrecking ball swinging both ways.
All you have to do is go back to the Great Depression to see what's going to happen when the US starts slapping tariffs on everything and what everyone else will do in retaliation. Only difference here is he's now applying this to a functioning economy. Never heard of a situation where a recession plus inflation was literally caused by one individual stupid decisions an inability to change his direction because of mean that he would have to admit he's wrong.
The US accounts for 18% of World GDP PPP. Today, there are other advanced economies and emerging economies with resources out there, which can largely sidestep the US economy. It isn’t the 1950s anymore. BRICS has no chance of threatening the US’ 88% share of the World’s international currency trade, but the broader West could bring the US and USD down a peg or two.
You get what you voted for!
What’s to stop Canada and Mexico from strengthening relationships with China?
This American says Bravo Canada!
It's not COULD have a terrible effect it's WILL have a terrible effect on the US economy. How is it possible that Americans are so obtuse they don't understand how tariffs work.
Trump said directly to his supporters that he loves the uneducated--thats how!!!
Most intelligent people as they age, understand how little they really know, with Trump it seems the opposite is true
America, and unfortunately the world, may need to suffer these HUGE mistakes in order to be cured of Trump.
What irks me most is the word 'tariff'. It was invented to camouflage the real words: tariffs are importation taxes. This is why people do not understand tariffs, but talk about being taxed for buying products made outside the US, that is easy to understand.
Bully, bully, bully that's what he is
He's also an undercover globalist.
Only for Trump supporters, this is what you voted for, so quit complaining about him. As for non-Trump supporters, keep your head high and your future is bright. For those Trump voters, you lost the election and regret it deeply. The Republicans party has a Trump problem. Democrats, Republicans, and independents must learn to reject Trump and immediately impeach him from office.
You tried that twice already. (You lost.)
@@CarlGerhardt1your being a pain, and acting so stupid, shut up and learn something.
The CFO of P&G said in the earnings call, if prices of the components we buy rise because of tariffs, prices will rise.
Not a big deal. Americans are loaded. They can afford a few bucks more per gallon on fuel. Remember, the United States was the only G7 country to not face a cost of living crisis when inflation went through the roof a couple years ago
Yes, please do a whole show on the Canada situation with Mr. Krugman.
How do we deal with fentanyl users to eliminate the problem which is the root cause? Canada, Mexico and China don’t have the problem or not as big as here if they are the source.
Its about the water. Trump wants Canada's water resources.and critical minerals.
America already has Alaska. That's what gets me. Alaska is huge and largely untapped.
@@wmarkdyer He's into Manifest Destiny, this is the not the first time the U.S. has tried to force Canada into union with it...
So, If Canada joined BRICS, would they be subject to the 10% tariff like China and not the 25%. Asking for a friend.
Canada will never join brics... You wish!
@@vaniaandrade9671 Canada could be pushed by the US, into trade relationship with BRICS. China is just waiting to take advantage of this Trump tariff mess.
@@vaniaandrade9671Canada will be begging to ally with Russia once American boots cross Niagara Falls
Canada wont join the BRICS, or at least not before the US, and well..... strangers things have happened.....
@ChuckNorrizzed you are delusional... US will never put boots in Canada, except for help... Western alliances are more ancient and important than the temporary Trump!
*IM ALL FOR SAVING WORKING PEOPLED JOBS* but here is something you have to realise - the US [and the West in general] no longer HAS the skilled people, the educated people, the companies that make the machines that make stuff, the institutional knowledge. Am3ric4 wants to build more ships - it cant - the LIMITING factor is the skilled labour...
You can put all the tariffs you want on Chinese ships, you still got to buy em. Once you lose these skills and systems, its really hard to get them back
Krugman, remember his Nobel was around 50 years ago, is notable in his tendency to get everything wrong in the last 25 years,
Why American believe fail Businessman Donald Trump. If he is so smart, all his business won't collapsed.
What about the price of Eggs?!!!
Money printing, not the tariffs on china who just dropped their prices to compensate for the tariffs imposed them.
@@duanekelly-fe5bt So inflation affected eggs by 400% but it only affected flour by 20%?
Being MAGA doesn't mean you have to be a complete illiterate.
The price of EGGS is all about the bird flu.
BIRD FLU IS RISING--SO, THE PRICE OF EGGS IS RISING
Oh it will do a ton of damage, for both countries
He's causing immigrant farm workers to leave the job. Then produce from Mexico will be tariffed. That's not going to lower grocery prices.
Is there a possibility that the MAGA Prophet who promised to make groceries 50% cheaper is a liar?!!
That depends on how much of these countries imports of good for overall total market in US. What we are talking here is 10% and 25% of what percentages of whole goods being sold in US. This is not a tax on all goods, but specific ones that comes from these countries.
BOYCOTT 🇺🇸
Remember when USA outcompeted others and just attracted bright and sucesfull preople by mere future prospects? The new ideal and "leadership" of the free world seems to not look for a better future just I want my extra big part of the cake now and your bit too. Moral leadership of the free world will pass on from USA if you behave like this. It also makes China, Russia, Iran & Co look way less bad when the supposed to be good side missbehaves for no understandable reason. I guess with a TV show as political manifesto staring a moody Hindenburg sized ego we should expect a shit show now. I so hope my countries leaders don't accept this nonsese and kiss the naked emperors ring.
I completely agree that the targeted subsidizes vs tariffs is a better strategy. Entering into protracted tariff wars with neighbours and allies plays well to the Fox News audience but is not an effective strategy to build economic resilience.
if trump is so concerned about fentanyl why doesn't he go after the nation that makes the world's supply of the drug? less than 1% of the fentanyl entering the u s comes from canada. the largest percentage enters through american sea ports.
Love Paul Krugmann. Such a voice of reason.
please quit with the funnies.
These extra import duties are just plain stupid. Many homes have been destroyed, and will need lumber for rebuilding. That now carries a 25 percent extra import levy from Canada.
When you exacerbate costs borne by legal business, less-than-fully legal business acquires a marginal advantage. Welcome to Trump's developer world.
Tariffs are often favors to special interest group with no economic beenfit. He called it out perfectly.
What Donny means is if you put 10% directly in my personal bank account I won't put a 25% tariff on your goods....in countries with laws this is called bribery...Duncecap calls it negotiating.....
Agreed
He is just recycling the old Republican talking point from a generation ago about if you raise taxes on the rich, they will just have to raise prices on the consumer. They always threaten the consumer if anybody even suggests raising their taxes.
I'll never understand how the right signed on for this tariff thing. They really don't understand it will increase our cost of living.
I would not want to be a Secret Service agent these days! A lot of very angry people out there...
These idiots keep wanting Krugman to give a different answer and he’s not going to, no matter how many different ways you ask the same question. The world hasn’t suddenly changed and there’s no scenario where these tariffs will benefit the total US economy.
Thankfully trump knows more about economics than all the economics professionals that have ever lived😩
I hope that was a joke
@ sarcasm to the MAX,