Former US Trade Representative Ron Kirk believes the Trump administration’s tariff policies are based on “animus and middle-of-the-night perceived offenses ” rather than strategy. Kirk, who served under President Barack Obama, argued that tariffs set to take effect on April 2 are basically an emotional response.
“Our markets are fairly unequivocal on this and don’t see this as a long-term benefit to our economy,” Kirk said in CNBC’s Squawk Box earlier today. “This is just not the correct way to go. Canada and Mexico are vital to our economy, with billions of dollars flowing across our borders daily. Imposing duties on those goods will only raise costs for American farmers, manufacturers, and ultimately, consumers.“
Trade partners ‘fight back’ as tariffs take effect
Last week, the Trump administration imposed 25% tariffs on steel and aluminum imports from multiple countries, including Canada and Mexico, along with a 20% levy on Chinese goods. US allies have now responded with retaliatory tariffs.
The European Union is placing duties on $28 billion worth of American exports, including a 50% tax on American bourbon. set to take effect on April 1 and be fully implemented by April 13. They also apply to other American products like motorbikes, boats, steel and aluminum goods such as pipes, window frames, and tin foil.
According to President Trump, tariffs will strengthen US manufacturing, safeguard jobs, and generate tax revenue, ultimately fueling domestic economic growth. The president has also coined the levies as a tool to correct America’s trade imbalance and could narrow the gap between imports and exports with trading partners.
The trade conflict escalated last Thursday when Ontario threatened to impose tariffs on electricity exports to the US. In response, Trump announced he would double tariffs on Canadian steel and aluminum by 50%.
Ontario was forced to withdraw its tariff threat, which gave Trump an incentive to back down, but the Canadian government’s patience with the US is getting thinner by the day.
During his interview, Attorney Kirk discussed the statements made by Canadian Prime Minister Mark Carney, who recently met with French President Emmanuel Macron. Carney said the importance of Canada strengthening ties with reliable allies and described Canada as “the most European of non-European countries.”
“That’s fighting words,” Kirk reckoned. “But for businesses, this is no joke. I’ve spoken with business groups who are struggling to operate in an unpredictable environment. They have no idea what their costs will be. This kind of uncertainty is bad for markets and devastating for businesses.”
The former US Trade rep said Carney’s words meant that US allies no longer want to depend on the US, adding that it’s “not a good place for the country to be.”
Trump doubles down on tariffs with economic risks in mind
The Trump administration is unshakably committed to its protectionist trade policies. The president has vowed to implement sweeping “reciprocal” tariffs on all imports, including universal duties on goods from Canada and Mexico.
His cabinet is very supportive of the policies, coining Trump’s decisions as “necessary to revive the American manufacturing industry.” Commerce Secretary Howard Lutnick admitted to reporters last week that a recession could result from the tariffs but suggested it would be “worth it” in the long run.
Still, Kirk pushed back on the administration’s rationale, saying. “To many Americans, the idea of hitting back with tariffs sounds appealing, but the broad imposition of tariffs against our closest allies is an economic circular firing squad—no one benefits from this.”
Kirk argued that if America wanted to compete with China, it should bring its allies like Canada, Mexico, and Europe closer rather than isolate them. “America First’ may sound good, but ‘America Alone’ is a dangerous path,” the lawyer concluded.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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