'RETALIATORY MEASURE': Stephen Moore on Trump's tariffs on Canada

[00:00:03]Well, Canada once again crying foul after President Trump's new tariffs.

[00:00:07]Prime Minister Mark Carney calling the 50% duties quote a direct violation of the US-Mexico-Canada Trade Agreement.

[00:00:16]>> But the Trump administration is saying boo freaking hoo.

[00:00:21]Canada has been violating the spirit of free trade for years with discriminatory policies against American companies and products. Here's Treasury Secretary Scott Bussent earlier today.

[00:00:33]>> It's something that we we've discussed with our Canadian colleagues for a long time and they haven't done anything about it. You know, they're highly discriminatory on dairy products. Uh you US uh you US uh alcohol and beverages have been removed from Canadian shelves. So, you know, this is really just reciprocity in terms of what they they've done to our our great US companies.

[00:01:00]>> Here to react is Unleash Prosperity co-founder and America First Policy Institute senior fellow and a hell of a nice fellow himself, Steve Moore, is here to join us. So, Steve, I went through the list of all the the countries that had tariffs put against them all over the world and the only countries that have really followed through in any retaliatory type of way are China and Canada. Why Canada? What is What is What is up with Carney, do you think?

[00:01:28]>> Well, Canada has always been a problem with respect to the first NAFTA and now the US-China-Mexico Agreement. Trump is right in the in the sense that they have barriers against our dairy products, our manufacturing products, our alcohol products. Uh you go to Kentucky, they're not too happy about that, David.

[00:01:47]Uh and so, this is a retaliatory measure. You all ask the question uh that's been asked for the last 48 hours, is this legal? Appears to me to be to be legal, that is to say that uh the USMCA allows for retaliation if a a country is cheating.

[00:02:05]Canada is cheating, but you know David, I have to say I've always been a fan going back to the Ronald Reagan years of US, Canada, Mexico being a free trade zone. You know, it just makes so sense.

[00:02:15]Why can't they just have a day ta and every country lowers their tariffs to zero? That was the whole point of this.

[00:02:21]And when you get cheating on going on, then you get retaliation. I do believe Trump will probably prevail if Europe and China will have to back off on some of those tariffs. It's not fair to our farmers, it's not fair to you know our manufacturers and so on when they cheat.

[00:02:36]>> Well, where are you? So, this is probably just opening salvo in bringing Canada back to renegotiate the Mexico-Canada-US free trade agreement. But to invoke section 338 of the Smoot-Hawley Tariff Act of 1930, does that not make you quake in your boots? Also on deck later this week to replace the temporary tariffs that replaced IEEPA which the Supreme Court overturned, you're looking at what will probably be a broad set of tariffs, Steve, between 10 and 12 and 1/2% under section 301 on about 60 countries. You can't possibly love that.

[00:03:23]>> No, I don't. Look, as I said, I would love to see every country lower their tariffs and that was I really believe Dagan and David, that's really the intent of what Trump wants as the ultimate outcome for a level playing field which doesn't exist right now. But I did not know it. So, you're teaching me something Dagan. I did not know this this dates all the way back to the infamous Smoot-Hawley Tariff.

[00:03:45]>> All right. Well, let's go from a trade fight to a big oil fight. Chevron's Richmond refinery facing a major emissions deadline today. Chevron facing record-setting penalty starting at $17 for the first year alone and escalating to a potential 83 million total if it's not compliant with emission standards for 4 years. How's this all going to work out?

[00:04:10]>> I I mean, they're basically California David and and David as you know are is practically down to zero refineries. And you know, the fact is California other than Texas and Alaska has more oil than just about any other state. Maybe Oklahoma has more, but it it's a shame because once upon a time California was an energy and oil and gas powerhouse and they keep forfeiting. You're not going to get the wells, you're not going to get the energy if you don't have the refineries. The refineries are a pillar of really critical part of the infrastructure of our energy. You need LNG terminals, you need refineries, you need the drilling, and and those are all opposed by the government in California, which is really a shame. I mean, how is California paying the highest tax and the highest price for gasoline when it has more oil and gas than just about any other state. David, it makes no sense.

[00:05:02]>> Crazy.

[00:05:03]>> Because it's run by a bunch of left-wing liberals who want to who want to behave as if fossil fuels are evil. But again, quickly Steve, the whole point of this is to impoverish people who have to work for a living.

[00:05:21]>> Good point. You know, they all of these green energy mandates are really regressive taxes on working class people and that's why I heard David you talked about this earlier on the show. It's why people in droves and in the millions are leaving blue states like New York, like California, New Jersey and Illinois. And if they don't try And Trump just said this by the way. I don't know if you saw his tweet. He said, "These blue states are going to have to change or they're going to get bled to death." And that's actually true. That's what's happening day after day after day and yet they still don't change.

[00:05:50]>> Yeah. Yeah, only the poorest and the millionaire socialist will be there. The middle class is going to go away and that's that's really where the major source of revenue comes from. It's not always just from the top. The major source if they lose the middle class, they've lost their power to spend money.

[00:06:06]>> it's the heart of the community, you know, is is the is the middle class. So, what a shame. But I'll tell you the red states the red states will take them if they don't want them.

[00:06:14]>> That's true.

[00:06:15]Steve, thank you very much. Good to see you, Steve Moore.