The Early Warning of Trade Warfare: Wall Street Censorship, Wall-Storage, and Wall-Building in the Midwest

Europe, Japan, and South Korea aren’t mentioned in the announcement but stocks have fallen there as well. That suggests that there could be a new trade war.

In the Midwest, where a lot of the crude oil used in U.S. refineries is imported, gasoline prices would likely go through the roof due to Trump’s proposed tariffs.

Today’s losses have reversed some of yesterday’s “Bessent bounce” rally. Investors were relieved after Trump picked Scott Bessent, the market-friendly hedge fund mogul, to run the Treasury Department.

But the reverberations show that it’s Trump calling the shots. The president-elect has said he wants to use tariffs to further his America-first agenda, and he has yet to name his pick to be U.S. Trade Representative. (Another tariff supporter, Robert Lighthizer, is in the running.)

Donald Trump may be using his latest threats as a negotiating tactic. Bill Ackman is a billionaire investor who supports the Trump campaign. But they are a reminder of how Trump set off alarm bells across diplomatic channels and international markets during his first term often via social media posts. According to a note written this morning by an economist, it’s possible that people will start checking the Twitter for any policy announcements.

Trade Across the U.S.: Implications for America’s Auto Industry and for Mexican and Canadian Produce under Trump’s 2020 Trade Agreement

A key example is the U.S. auto industry, which has grown up under the North American Free Trade Agreement and the successor treaty that Trump signed in 2020.

“I don’t think people understand just how integrated the North American supply chain is,” says Scott Lincicome, a trade expert.

You would see an immediate spike in the price of groceries. You would see restaurants changing their menus so they could reduce the amount of produce that goes into their plates, or raising prices.”

In just one high-profile example, the tariffs would raise the price of avocados less than three weeks before the Super Bowl — one of the biggest guacamole-eating days of the year.

Mexican and Canadian produce supply 32% of the fresh fruit and 34% of the fresh vegetables in the U.S., so shoppers will see higher prices in the produce department.

“One of President-elect Trump’s signature pledges during the campaign was to tamp down inflation and to reduce prices at the grocery store,” says Lance Jungmeyer, president of the Fresh Produce Association of the Americas, an importers trade group.

Canadian Prime Minister Justin Trudeau says he’s already spoken to Trump by telephone. Mexico’s President Claudia Sheinbaum sent a letter to the president-elect. Both foreign leaders called for dialogue.

Source: Trump’s tariffs may be targeted at others — but they could impact you too

Auto Parts in the Wild: Implications of 25% Customs Duty Rates on Smoothed Trade in American Autonomous Vehicles

“These days, certain automotive parts like a car seat can travel across international borders five or six times before finally ending up in a made-in-America automobile,” he adds. A 25% tariffs would seriously jeopardize seamless trade, harming a lot of American manufacturers and manufacturing workers.