The President-elect says he’ll implement new tariffs on China, Canada and Mexico when he gets back in office.
Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Focus is on the retail sector this Tuesday. Consumer confidence rose for the second straight month, according to the Conference Board, with consumers upbeat about job prospects. Some retailers, however, aren’t seeing that show up in their business. Best Buy posted quarterly results that missed analysts forecasts.
Retail is in the spotlight for another reason as well: tariffs. President-elect Donald Trump is rolling out the beginnings of his tariff plan. On a post on Truth Social he writes “As one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 35% Tariff on ALL products coming in the United States.” The U.S. is a major destination for its two biggest trading partners. 83 percent of all Mexican exports and 75 percent of all Canadian exports are headed here.
Trump also took aim at China, threatening an additional 10 percent tariff tacked on to existing tariffs. Just how high these tariffs will go is unclear. Trump has already vowed to strip China’s status as a most-favored-nation trading partner and impose tariffs of more than 60 percent.
It is important to note that the tariff threat isn’t actually tied to bringing jobs back to America. In his social media post, Trump said the tariffs are in retaliation for Mexico not stemming the flow of migrants and China not stopping the flow of illicit drugs like Fentanyl.
Many economists worry Trump’s tariff plans will spark a tit-for-tat trade war and stoke more inflation at a time when Americans are already struggling with higher living costs.
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