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This is breaking news from Bloomberg. We are seeing a sharp cell often stocks around the world with President Trump said to follow through on his threat of tariffs against America's closest trading partners. On Saturday, the President announced twenty five percent duties on products from Canada and Mexico and ten percent on China, starting just after midnight tonight. Trump admits American consumers might take a hit.
We may have short term so a little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world. We have deficits with almost every country, not every country.
But all most and Republican lawmakers are signaling they support the president's efforts. Senator Lindsey Graham had this reaction on Fox News Sunday.
If you want tariffs to go away, Mexico and China, stop poising Americans, stop sending ventanyl into America to kill Americans. If you want to have a better relationship in Mexico with the United States, do your report on the other side of the border.
But Democratic Senator Mark Warner says tariffs amount to what he calls a Donald Trump Super Bowl tax less than a week before the big game. Remember, Donald Trump got hired trying to lower grow saying he was going to lower grocery prices.
Right two weeks in, He's doing something that's going to do the absolute opposite.
Senator Warner spoke to CBS as Margaret Brennan on Face the Nation, and you can hear both Face the Nation and Fox News Sunday every Sunday on Bloomberg Radio.
Well, Nathan Trump says he will have separate calls this morning with Canadian Prime Minister Justin Trudeau as well as with the Mexican leadership. The Canadian leader has already pledged twenty five percent retaliatory tariffs on one hundred and seven billion dollars worth of US goods. Trudeau says Trump's action now risks job losses and price rises for Americans.
If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish US.
Canadian Prime Minister Justin Trude do other Canadian officials announce their own measures. David Eby, the Premiere of British Columbia, directed to provincially owned a liquor distributor, to remove some alcohol brands made in Republican led States from the shelves of retail stores and to cease further purchases.
Well, as you mentioned, Karen, the PAESO is dropping to its lowest level in almost three years. Mexican President Claudia Shanbaum says she'll set out her response to US tariffs later today. She says she hopes a resolution can be found quickly.
That's a bit Anian noise.
Nibo sovereignty is not negotiable to this end.
Yesterday, in my statement, I proposed to President Trump, though we establish a working group, it is not with the imposition of tariffs that the problems are resolved, but speaking and dialoguing.
As we did.
Mexican President Claudia Shanbaum spoke there through an interpreter. President Trump has said he may escalate US tariff's further in response to any retalients.
Well Nathan, China's reaction to Trump's tariffs, which come in the middle of Lunar New Year holiday celebrations, has been more muted. The country's Commerce Ministry issued a statement expressing strong dissatisfaction and vowing corresponding countermeasures without elaborating. Our Chief North Asia correspondent Stephen Engels says China's reaction could yet ramp up.
This is going to be a protracted process, so Beijing has to process exactly what's going to be the end result of tariffs. Is it going to go up to sixty percent? It's ten percent right now, and there's going to be an economic impact to that. And I think right now, especially as they're coming out of the long Lunar New Year holiday, kind of crafting their message obviously.
And Leutz Bloomberg Steven Angel are reporting from Hong Kong.
And after he announced those duties on China, Mexico and Canada, Karen, President Trump also ramped up threats to the European Union, citing that block's large surplus with the US.
It will definitely happen with the European Union, I can tell you that because they've taken advantage of US. Said, you know, we have over three hundred billion dollar deficit. They don't take our cars, they don't take our farm products. They take almost nothing, and we take everything from the millions of cars, tremendous amounts of food and farm product.
President Trump's remarks came after an EU spokesperson said that the BLOCK would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.
Well, Nathan, President Trump's tariffs against Canada and Mexico may result in consumers paying more for cars, and we get that angle up the tariff story with Bloomberg's John Tucker and John how much are we talking about here?
Well, Karen Research from automotive consultant Alex Partners says the tariffs will add sixty billion dollars in cost to the auto industry, a lot of which likely to be passed on to consumers. Wolf Research analysts so the average price of a new car may climb by about three thousand dollars. The duties would immediately hit almost a quarter of the sixteen million vehicles that are sold in the US every year,
as well as the parts and components that go into them. Now, car components can make their way back and forth across the US borders as many as eight times during the production of the car. Automakers in Mexico they've been preparing by preemptively importing both more components and vehicles that could ease the blow in the first few weeks. But Flavio Volpi, he's the president of Canada's Automotive Parts Manufacturers Association, predicts his words now the auto sector is going to shut
down within a week. This morning, shares of GM down seven percent, Stalantes is off almost six percent, and Ford is down four percent. John Tucker Bloomberg Radio.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Dabreak.
Good morning, I'm Nathan Hager. President Donald Trump's promise of tariffs on America's closest trading partners is rippling through markets. After announcing twenty five percent duties on Canada and Mexico and ten percent on China, the President says the European Union is next.
They don't take our cars, they don't take our farm products, they take almost nothing. Can we take everything?
From?
The President spoke to reporters outside Washington last night. Joining us this morning from the nation's capital, Terry Haynes, the founder of Pangaea Policy. As we watch stocks sell off and the dollar rally this morning, Terry, Should the market have seen this coming?
Good morning, Hi, Good morning, Nathan, And yes, I think they should have. Markets have spent the last few months talking themselves into a gradualistory even you know, this isn't happening. It's all negotiation stance, and yes it is negotiation, but it's negotiation based not from a trade war perspective, but I think from an overall conflict perspective, a broader geopolitical context, among others.
So what is the chance, then, Terry, that the president that it actually does follow through on these He announced they're going to kick in just after midnight tonight. At the same time he's saying that he will have discussions with Canada and Mexico today.
I think the markets should assume that some tariffs are coming. I think the size and shape are still very much up in the air, and markets are going to have to get used to volatility here. Frankly, in the realm of political decision making. You know, my instinct, and it is only instinct, is that it's not at all beyond the question that the tariffs go in as announced. It's also not beyond the question that they go in with
some lowered modifications. You can look One way you can look at this is Trump testing the markets on reaction, and he's also testing politically the reaction of our border partners to do specific things to actually improve the border and stop the flow of fentanyl.
Is this a test on fellow Republicans as well?
It is to some extent, yes, but I think it's in so far they've been supportive. But what you got to remember over the last decade, and it's been a decade since since tariff policy became part of geopolitical policy in the United States, is that Congress has has supported the means in which the how Trump imposes these tariffs, whether it was Trump won, whether it was Biden when then now whether it's Trump too. You know, Congress supports the how. There will be some dissent on the when
or why. That's rooted as much in the partisan politics as anything else. But there's not going to be any serious move to try to stop Trump from doing any of these things.
Do you think there are any further concessions that Canada or Mexico could make after the concessions that they've say that they have made even before the President announced these duties, over the weekend.
My unsolicited advice to those countries is very simple is that as you get as specific if they want to stop the tariffs, get as specific, and to talk about how well and how much you can partner as possible. If Trump realizes, I think, unlike the first that he's going to need support from his border partners and very much wants those things.
And in just thirty seconds, is this about partnerships? Is this about the fentanyl and immigration flows or is this more about the trade deficits.
I think it's about both. But at root, you know, Trump always says that his top priority is securing the border, and I think you have to take the border strategy both seriously and literally as part of the broader geopolitical strategy and the broader economic strategy which are out there, which exists, even if they're being ignored by markets.
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