Political: Heather Cox Richardson, November 26, 2024: Part 1

Today presented a good example of the difference between governance by social media and governance by policy.

Although incoming presidents traditionally stay out of the way of the administration currently in office, last night, Trump announced on his social media site that he intends to impose a 25% tariff on all products coming into the U.S. from Mexico and Canada “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump claimed that they could solve the problem “easily” and that until they do, “it is time for them to pay a very big price!”

In a separate post, he held China to account for fentanyl and said he would impose a 10% tariff on all Chinese products on top of the tariffs already levied on those goods. “Thank you for your attention to this matter,” he added.

In fact, since 2023 there has been a drop of 14.5% in deaths from drug overdose, the first such decrease since the epidemic began, and border patrol apprehensions of people crossing the southern border illegally have fallen to the lowest number since August 2020, in the midst of the pandemic. In any case, a study by the libertarian Cato Institute shows that from 2019 to 2024, more than 80% of the people caught with fentanyl at ports of entry—where the vast majority of fentanyl is seized—were U.S. citizens.

Very few undocumented immigrants and very little illegal fentanyl come into the U.S. from Canada.

Washington Post economics reporter Catherine Rampell noted that Mexico and Canada are the biggest trading partners of the United States. Mexico sends cars, machinery, electrical equipment, and beer to the U.S., along with about $19 billion worth of fruits and vegetables. About half of U.S. fresh fruit imports come from Mexico, including about two thirds of our fresh tomatoes and about 90% of our avocados.

Transferring that production to the U.S. would be difficult, especially since about half of the 2 million agricultural workers in the U.S. are undocumented and Trump has vowed to deport them all. Rampell points out as well that Project 2025 calls for getting rid of the visa system that gives legal status to agricultural workers. U.S. farm industry groups have asked Trump to spare the agricultural sector, which contributed about $1.5 trillion to the U.S. gross domestic product in 2023, from his mass deportations.

Canada exports a wide range of products to the U.S., including significant amounts of oil. Rampell quotes GasBuddy’s head of petroleum analysis, Patrick De Haan, as saying that a 25% tax on Canadian crude oil would increase gas prices in the Midwest and the Rockies by 25 cents to 75 cents a gallon, costing U.S. consumers about $6 billion to $10 billion more per year.

Canada is also the source of about a quarter of the lumber builders use in the U.S., as well as other home building materials. Tariffs would raise prices there, too, while construction is another industry that will be crushed by Trump’s threatened deportations. According to NPR’s Julian Aguilar, in 2022, nearly 60% of the more than half a million construction workers in Texas were undocumented.

Construction company officials are begging Trump to leave their workers alone. Deporting them “would devastate our industry, we wouldn’t finish our highways, we wouldn’t finish our schools,” the chief executive officer of a major Houston-based construction company told Aguilar. “Housing would disappear. I think they’d lose half their labor.”

Former trade negotiator under George W. Bush John Veroneau said Trump’s plans would violate U.S. trade agreements, including the United States–Mexico–Canada Agreement (USMCA) that replaced the 1994 North American Free Trade Agreement that Trump killed. The USMCA was negotiated during Trump’s own first term, and although it was based on NAFTA, he praised it as “the fairest, most balanced, and beneficial trade agreement we have ever signed into law. It’s the best agreement we’ve ever made.”

 

TLDR

 

Holy crap! A post that contains nothing but irrefutable facts. The sky is falling.