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President Trump, India’s Modi to tackle trade, tariff tensions at high stakes meeting

John Catsimatidis, United Refining Co. and Red Apple Group chair and CEO, recalls the moment he reportedly told New York City’s mayor the DOJ was dropping charges against him; he also talks about consumer inflation.

President Donald Trump is expected to welcome Indian Prime Minister Narendra Modi to the White House on Thursday. As only the fourth world leader to meet with the president since beginning his second term, the meeting underscores the importance of the U.S.-India relationship.

Modi, India’s most prominent leader in decades, remains a largely popular yet polarizing figure both at home and abroad. Officials in New Delhi are optimistic that his visit will pave the way for a renewed strategic partnership. Trump and Modi are expected to cover a broad range of issues; trade and tariffs are expected to dominate it.

Reuters reported that Modi is also expected to meet with billionaire tech CEO Elon Musk, whose Starlink’s entry to the South Asian market could be discussed. The two men are said to have a friendly relationship, with Musk meeting Modi in 2023.

“Trade is by far the most important agenda, with defense and foreign policy taking a secondary position this time around,” Siddhartha Dubey, a visiting professor of journalism at Bennett University in India, told FOX Business. The countries have “no progress on a trade deal,” he said.

India, the world’s fastest-growing major economy, has been spared any tariffs so far. But the stakes remain elevated.

INDIA’S MODI SPEAKS WITH ‘DEAR FRIEND’ PRESIDENT TRUMP AMID HOPES OF FURTHERING TIES

President Donald Trump is shown with Indian Prime Minister Narendra Modi in Motera, on the outskirts of Ahmedabad, India, on Feb. 24, 2020. (MANDEL NGAN/AFP via Getty Images)

“This has been one of our strongest international partnerships in recent years,” Dubey said.

Trump and Modi enjoy a strong personal rapport, and their meeting is expected to shed more light on the evolving dynamics between the world’s most populous democracy and its most powerful one,

The U.S. is India’s largest trading partner, with trade reaching a record $129.2 billion in 2024. Currently, the trade surplus is around $35 billion in India’s favor. India is also one of the most protectionist economies, and Trump is sure to press for more access.

Dubey warned that “privately, many Indians feel Delhi could be in Trump’s crosshairs soon,” especially with the news of Trump saying he will implement reciprocal tariffs on any countries with tariffs on U.S. goods, which could include India. And most recently, he introduced a 25% tariff on all steel and aluminum imports with no exceptions. But Modi is keen to avert a potential trade war. Over the next few days, he is expected to offer some major concessions in an attempt to move toward what the White House calls a “fair bilateral trading relationship.”

India is already showing a willingness to ease its own tariffs in what are believed to be preemptive moves to stave off U.S. tariffs. India has slashed duties on key U.S. exports. This month, for example, India cut tariffs on motorcycles in a move that benefits American company Harley-Davidson. U.S. motorcycle exports to India amounted to only about $3 million last year.

INDIAN PRIME MINISTER MODI’S 3RD-TERM VICTORY A WIN FOR BUSINESS: ‘THE SKY IS THE LIMIT’

Indian Prime Minister Narendra Modi, right, meets with Elon Musk in New York on June 20, 2023. (Indian Press Information Bureau/Handout/Anadolu Agency via Getty Images)

Despite the steps India has taken to address Trump’s concerns, the country remains at risk. Trump has often criticized India as being one of the “very big tariff abusers,” and just last month he called the nation a “tremendous tariff maker.”

Trump’s top economic adviser, Kevin Hassett, echoed those criticisms on Monday, saying “India has enormously high” tariffs that act as an import barrier. During his first term, Trump railed against India’s steep tariffs, dubbing it a “tariff king.” In 2019, he revoked India’s special trade privileges, prompting India to retaliate by slapping tariffs on dozens of U.S. goods.

According to World Trade Organization data, India’s simple average tariff rate is 17%, significantly higher than the U.S. rate of about 3.3%.

“This is unfair,” Dubey told FOX Business. “And I do not believe that President Trump will turn a blind eye. India has to cut its high tariffs, there’s no question about it,” he added.

President Donald Trump signs executive orders on Monday imposing 25% tariffs on imported steel and aluminum, the latest salvo in his ongoing effort to overhaul the U.S. trading relationship with the rest of the world. (Jabin Botsford/Washington Post via Getty Images)

Nonetheless, India remains confident in being able to navigate Trump’s “America First” policies. During the upcoming meeting, Modi is anticipated to propose an increase in energy product imports from the U.S. to address the trade imbalance. India’s oil secretary says companies there are hoping to purchase U.S. liquefied natural gas after Trump lifted a ban on new export permits. As the fourth-largest importer of liquefied natural gas, India is well-positioned to further its energy trade with the U.S.

When it comes to defense imports, Reuters reports that Modi is negotiating the purchase and co-production of combat vehicles as well as finalizing a fighter jet engine deal. India is the world’s largest importer of military equipment, and Trump wants the country to buy more U.S.-made security equipment. The push comes as the U.S. and Russia are competing to secure India’s fifth-generation fighter jet deal. New Delhi is also focused on attracting greater investment from U.S. companies in manufacturing and services, particularly the insurance sector.

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Modi arrived in Washington on Wednesday after a visit to France for a global conference on artificial intelligence. During his time there, Modi met with Vice President JD Vance, further strengthening diplomatic ties. In a departure statement, Modi expressed eagerness for his meeting with “my friend, President Trump,” which is sure to present both opportunities and challenges.

Indo-U.S. trade ties have grown steadily over the years, but Modi has acknowledged that the partnership can be deepened in several critical areas, including technology, trade, defense, energy and supply chain resilience.

“Modi and his team need to do more to assuage Trump and his team that they will lift certain duties and make India a whole lot friendlier to U.S. exporters,” Dubey said.

February 13, 2025
White House economist says reciprocal tariff negotiations with other countries underway

National Economic Council director Kevin Hassett analyzes the impact of President Donald Trump’s tariffs on ‘Kudlow.’

National Economic Council director Kevin Hassett indicated that conversations with “other countries” on reciprocal tariffs are ongoing, telling the press that it remains a “high priority” for President Donald Trump.

“Reciprocal tariffs are absolutely a high priority for the president, [they] have been forever. You know, our trading partners charge us way more in tariffs than we charge them. And it’s something he talked about before,” Hassett said in a White House press gaggle Wednesday morning.

“And there’s got to be a lot more action on it today,” he continued. “We even started to have negotiations with other countries. Early this morning I was doing that.”

Trump’s 25% tariffs on Mexico and Canada could take effect next month after both countries were granted a 30-day pause; the U.S. and China have enacted reciprocal across-the-board 10% tariffs as a phone call looms between Trump and Chinese President Xi Jinping; and just this week, Trump announced 25% tariffs on aluminum and steel imports.

TRUMP IS PLAYING A DANGEROUS TARIFF GAME DESPITE HIS ‘REALLY STRONG’ AGENDA, U.S. ECONOMIST WARNS

Tariffs are taxes levied on imported goods and services. While they historically played a more significant role in contributing to federal tax revenue, developed countries have moved away from relying on tariffs as a main source of funding and have shifted to other forms of taxes – such as income, payroll or sales taxes.

White House National Economic Council director Kevin Hassett indicated that reciprocal tariff negotiations are ongoing with “other countries.” (Getty Images)

In the U.S., tariffs are collected by the Customs and Border Protection (CBP) agency, which is a subagency of the Department of Homeland Security. Trump has proposed creating an “External Revenue Service” that would be responsible for collecting tariffs, though it’s unclear whether that plan will move forward.

U.S. Treasury Secretary Scott Bessent addresses President Donald Trump’s economic and fiscal goals during his first interview on ‘Kudlow’ since joining the administration.

President Trump has also discussed using tariffs to take the U.S. economy back to its “golden age,” potentially eliminating the federal income tax and predominantly supporting government spending with tariffs.

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MonetaryMacro.com CIO Joseph Wang argues President Donald Trump’s tariffs on Canada and Mexico are more than just a negotiating tactic on ‘Making Money.’

“We were talking about just laying the groundwork for discussions over reciprocal trade,” Hassett said further of Wednesday’s alleged meetings. “The person leading those discussions today was Howard Lutnick, of course. But I was on those calls too.”

It’s all “a work in progress,” Hassett added. “Everybody’s talking about it right now. And actually, the conversations with other countries began this morning really early… You might see an announcement about progress or also guidelines of the things that [Trump’s] thinking after having some exchanges of views with foreign people today and yesterday. It’s more of an outline.”

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FOX Business’ Eric Revell contributed to this report.

February 13, 2025
Trump is playing a dangerous tariff game despite his ‘really strong’ agenda: US economist

American Enterprise Institute senior fellow and economist Michael Strain explains how President Donald Trump’s tariffs would immediately impact U.S. consumers, businesses and the global market.

A whirlwind two weeks for the Trump administration’s negotiations on tariffs has left economists forecasting the good and the bad that lies ahead for America’s financial health.

One such economist and senior fellow from the American Enterprise Institute (AEI) – where National Economic Council director Kevin Hassett previously worked – expressed concerns that President Donald Trump’s tariff strategy could work against what fortitude he brings to the economy.

“I don’t think there’s any doubt, at least in my mind, that a 25% tariff on imports from Mexico and Canada would have severe negative economic consequences,” AEI’s Michael Strain told Fox News Digital.

“The economic effects of these tariffs are pretty clear that they would hurt workers, that they would hurt households, that they would hurt businesses and that they would hurt the economy overall,” he added, before acknowledging some optimism ahead with “a number of aspects of President Trump’s agenda.”

E.U. SAYS TRUMP’S ‘UNJUSTIFIED’ TARIFFS ‘WILL NOT GO UNANSWERED’

“Including his plans to increase domestic energy production, including his goals to make the United States solidify its position as a global leader in artificial intelligence technologies. So these are all things to be excited about. If President Trump launches a trade war with Canada and Mexico, if he launches a trade war with the European Union, then that will work against his goals. That will weaken the American economy, that will increase the cost of living facing Americans, and that will make American businesses less competitive.”

President Donald Trump signed executive orders on Monday imposing 25-percent tariffs on imported steel and aluminum, the latest salvo in his ongoing effort to overhaul the U.S. trading relationship with the rest of the world. (Getty Images)

Hours before a midnight deadline, both Canada and Mexico barely escaped their 25% tariffs by agreeing to certain border security stipulations with Trump for a 30-day pause. However, a 10% tariff on China that turned into a retaliatory levy did go into effect, and an anticipatory negotiation call has yet to happen between Trump and Chinese President Xi Jinping.

Monday evening, Trump imposed a 25% tariff on steel and aluminum set to take effect on March 12. The move hopes to allow local U.S. producers to work without intense global competition, likely impacting European Union nations most.

“The goals that he’s hoping to achieve with the threat of tariffs on Mexico and Canada are different than the goals he’s attempting to achieve with tariffs on China,” Strain said while pointing out this is the first time in U.S. history that a president has threatened allies with “enormous” tariffs to make political concessions or change behavior.

U.S. Treasury Secretary Scott Bessent unpacks the power tariffs have in world negotiations on ‘Kudlow.’

But the economist argues that, traditionally, tariffs raise prices consumers pay for imported goods and parts, contribute to inflation and make domestic manufacturers less competitive on a global scale.

“If they’re scheduled to go into effect and if businesses believe that they will go into effect on the day that they’re scheduled, then American consumers would see price increases very, very soon, in a matter of days,” Strain said.

“I think many Americans are quite concerned about the effect that these tariffs would have on their household finances. And they should be,” he continued. “Their groceries will be more expensive, many products that are made in America that they would buy will be more expensive, their automobiles would be more expensive, and this would reduce the purchasing power of their wages and incomes. And it would hit their pocketbooks.”

TRUMP PROPOSES ABOLISHMENT OF FEDERAL INCOME TAX, BRINGING U.S. BACK TO ‘RICHEST PERIOD’ IN HISTORY

A recent analysis from researchers at Yale found that, if enacted, Trump tariffs would create a $1,170 income loss. Additionally, a Fox News poll conducted from Jan. 10 to 13 found that a majority of Americans expect tariffs will hurt the U.S. economy.

Some trade groups and Democrats have sounded the alarm over Trump waging a worldwide trade war, and to some extent, the AEI economist agrees.

White House counselor for trade and manufacturing Peter Navarro detailed the “most potent weapons” Trump has against inflation, on “Mornings with Maria.” | Getty Images

“I think clearly our trade war with China, which President Trump started, has escalated a bit. When President Trump threatened Canada and Mexico with big tariff increases, Canada responded by saying that they were going to put tariffs of their own on certain critical U.S. exports, and that, I think, meets the definition of a trade war,” Strain said.

“In President Trump’s first term… he significantly increased tariffs on Chinese imports. China retaliated by increasing their tariff rates on U.S. exports of agricultural products to China. And that hurt the U.S. agriculture sector so severely that President Trump had to offer subsidies to farmers in order to make up for the effects of Chinese retaliation. If President Trump and Canada had continued on the path they were going,” he expanded, “something similar might have happened as well.”

MGA Entertainment CEO Isaac Larian says Donald Trump is a ‘great’ president while expressing some concerns over tariffs on ‘The Claman Countdown.’

On a larger scale, Trump has stated that the tariffs provide a way to bring America back to an economic “golden age” before the federal income tax was invented. But funding the government entirely on tariffs could be a challenge, according to Strain.

“It is completely unrealistic to argue that the U.S. could replace the income tax with an increase in tariffs. There’s just not enough money in taxing imports. In order to make up for the money, we would lose by eliminating the income tax,” the economist said.

A better solution, he noted, could be taxing income less and consumption more: “But a consumption tax would have to be structured so that it didn’t only target imports. Again, there’s just not enough money there. And if you only target imports, that’s quite distortionary, you’d want to have a more broad-based consumption tax.”

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Coalition for a Prosperous America’s Jeff Ferry reveals what is essential to grow the U.S. economy on ‘Making Money.’

Overall, America’s economy “is in really strong shape” and the Federal Reserve still has work to do to reach its inflation goals, Strain noted while emphasizing the “things to be excited about” in Trump’s agenda could outplay a tariff game.

“My hope is that four years from now, tariff rates are lower than where they are today. My concern is that the Trump administration might have to put its hand on the hot stove of high tariffs in order to learn firsthand the economic damage that tariffs, that are as high as the president is discussing, can do to American consumers and households and businesses.”

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FOX Business’ Eric Revell contributed to this report.

February 12, 2025
Mattel considers raising prices on toys to mitigate tariff impact

Federated Hermes CIO Stephen Auth weighs President Donald Trump’s economic agenda and the expected impact it will have on the global economy.

Mattel is looking at potentially upping toy prices as part of its efforts to mitigate President Donald Trump’s tariffs on imports from China, Mexico and Canada.

Over the past weekend, the president signed executive orders seeking to bring a 10% levy on imports from China and a 25% tariff on imports from Mexico and Canada.

The tariff against China went into effect on Tuesday; however, the Trump administration paused the levies against America’s northern and southern neighbors for one month after Mexico and Canada both agreed to take steps to heighten enforcement on their borders with the U.S.

WHAT’S HAPPENING WITH TRUMP’S TARIFFS ON CHINA, CANADA AND MEXICO?

Leaders at Mattel said Tuesday that “leveraging the strength of our supply chain” and possible price actions were among the measures that the toy company was looking at implementing to deal with the tariffs.

Mattel is looking at potentially upping toy prices as part of its efforts to mitigate President Donald Trump’s tariffs on imports from China, Mexico and Canada. (Armando Arorizo/Bloomberg via / Getty Images)

“Our teams have been fully engaged in analyzing and planning for a range of scenarios,” CFO Anthony DiSilvestro told analysts and investors. “And in terms of the financial impact on Mattel, our 2025 guidance includes the anticipated impact of the new tariff based on what we know today and mitigating actions we plan to take, including those leveraging the strength of our supply chain and potential pricing.”

Mattel, known for Barbie, Hot Wheels, Fisher-Price and other brands, makes toys in seven countries, he said, adding that the toy company has been “continuously optimizing and diversifying our manufacturing footprint” in recent years.

A shopper views Mattel Barbie dolls for sale at a Target store in Chicago. (Christopher Dilts/Bloomberg via / Getty Images)

Less than 40% of Mattel’s global toy production is expected to occur in China this year, a much smaller share than the industry average of roughly 80%, according to DiSilvestro.

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“With the U.S. representing about half of our global toy sales, our tariff exposure in the U.S. related to China should be about 20% of global production,” the Mattel CFO said. “And with respect to Mexico and Canada, we currently source less than 10% of our toys from Mexico and have no sourcing from Canada.”

The toy company plans for “no single country” to have more than 25% of production by 2027, DiSilvestro added.

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MAT MATTEL INC. 21.39 +0.56 +2.66%

Regarding the tariff mitigation actions, he said Mattel “work[s] closely” with its retail partners to “achieve the right balance and always keep consumers in mind when we consider pricing actions.”

The toy company forecasted 2%-3% growth in net sales for fiscal 2025, as well as adjusted earnings per share in the range of $1.66 to $1.72, factoring in any potential impact from the tariffs and the company’s response to them.

Hot Wheels cars by Mattel are offered for sale at a store on April 23, 2024, in Chicago. (Scott Olson / Getty Images)

Mattel works with some 500,000 retail stores to sell its various toy products, according to CEO Ynon Kreiz. It also uses e-commerce avenues for toy sales.

AUTOMOTIVE GROUPS REACT TO TRUMP TARIFFS ON IMPORTS FROM CANADA, MEXICO, CHINA

The company generated nearly $5.38 billion in net sales over the course of 2024. Its annual net income, meanwhile, came in at $541.8 million.

“Our 2025 priorities are to grow the top and bottom line, while increasing investment in our digital game self-publishing business to drive long-term growth, in line with our capital allocation priorities to invest in organic growth,” Kreiz told analysts.

February 6, 2025
‘Extraordinary’: Trump secures rapid-fire victories on border cooperation amid tariff push

President Donald Trump has scored a number of rapid-fire wins in his efforts to get other countries to assist the U.S. on border security, as a combination of tariff threats and diplomatic outreach appears to be pushing allies to act.

On Monday, both Canada and Mexico announced new measures to assist the U.S. at their respective borders, which in turn led to the U.S. pausing the implementation of planned tariffs.

Canadian Prime Minister Justin Trudeau announced that his country will be implementing a $1.3 billion border plan and will be appointing a “fentanyl czar.” He also announced new helicopters, technology and enhanced coordination with U.S. authorities.

TRUMP AGREES TO PAUSE TARIFFS ON CANADA IN EXCHANGE FOR MORE BORDER ENFORCEMENT

President Donald Trump (L) talks with Canada’s Prime Minister Justin Trudeau during the plenary session of the NATO summit at the Grove hotel in Watford, northeast of London on December 4, 2019. (Nicholas Kamm)

“We will list cartels as terrorists, ensure 24/7 eyes on the border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering,” Trudeau wrote. “I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million.”

That came just hours before additional 25% tariffs were to take effect on Canadian goods coming into the U.S. and after a phone call between the two leaders.

Hours before that call, Mexican President Claudia Sheinbaum announced that Mexico is deploying 10,000 troops to the U.S. border in exchange for a pause on similar tariffs that were going to impact Mexican goods entering the U.S.

“These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country,” Trump said on Truth Social.

A VICTORY FOR TRUMP’S ‘FAFO’: HOW THE WHITE HOUSE STRONG-ARMED ONE-TIME CLOSE ALLY COLOMBIA OVER IMMIGRATION

Trump used tariffs in his first term to secure border agreements. The Remain-in-Mexico policy was expanded in 2019 with the agreement of Mexico after a similar threat of tariffs.

A similar threat secured cooperation from Colombia last week. President Gustavo Petro had refused to accept military flights accepting Colombian nationals being deported from the U.S. Trump responded with the threat of a 25% tariffs on all goods from Colombia, a travel ban on Colombian government officials and other steep financial sanctions. He said the tariffs would reach as high as 50% by next week and insisted the migrants being sent back were “illegal criminals.”

Colombia backed down the same day, and two days later accepted the first deportation flights from the U.S.

U.S. Secretary of State Marco Rubio meets with El Salvador President Nayib Bukele at his residence at Lake Coatepeque in El Salvador, Monday, Feb. 3, 2025. (AP)

Not all wins for the administration have required the threat of tariffs, however. On Saturday, Trump announced that Venezuela has agreed to accept back its nationals being deported from the U.S., something it has largely been unwilling to do.

The announcement came after Trump’s envoy for special missions Ric Grenell met with Venezuelan President Nicolás Maduro in Caracas to discuss his country accepting violent criminals deported from the United States.

EL SALVADOR AGREES TO ACCEPT US DEPORTEES OF ANY NATIONALITY FOLLOWING MEETING WITH RUBIO

On Tuesday, after a meeting with Secretary of State Marco Rubio, El Salvador President Nayib Bukele announced a safe third country that would allow for illegal immigrants facing deportation to be booked into his country’s prison system.

“We have offered the United States of America the opportunity to outsource part of its prison system,” Bukele wrote on X Monday night. “We are willing to take in only convicted criminals (including convicted U.S. citizens) into our mega-prison (CECOT) in exchange for a fee. The fee would be relatively low for the U.S. but significant for us, making our entire prison system sustainable.”

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Rubio said the Salvadoran president “has agreed to the most unprecedented, extraordinary, extraordinary migratory agreement anywhere in the world.”

“We can send them, and he will put them in his jails,” Rubio told reporters, referring to illegal immigrants behind bars in U.S. prisons. “And, he’s also offered to do the same for dangerous criminals currently in custody and serving their sentences in the United States, even though they’re U.S. citizens or legal residents.”

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Bukele also said he would take back all Salvadoran MS-13 gang members in the U.S. illegally, and promised to accept and incarcerate criminal illegal aliens from any country, especially those affiliated with Venezuela’s Tren de Aragua gang.

Rubio is on his five-nation Central American tour until Thursday and is expected to make stops in Costa Rica, Guatemala and the Dominican Republic.

Fox News’ Landon Mion, Anders Hagstrom and Louis Casiano contributed to this report.

Adam Shaw is a politics reporter for Fox News Digital, primarily covering immigration and border security.

He can be reached at [email protected] or on Twitter.

February 4, 2025
NHL announcer cracks tariff joke while calling game for Canada-based team

Even Canada-based NHL teams aren’t safe from feeling the brunt of President Donald Trump’s tariffs on the country.

Mere hours after Trump’s executive order to impose tariffs on Canada, both Ottawa Senators and Toronto Raptors fans booed the playing of “The Star-Spangled Banner.”

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Vancouver Canucks fans did the same on Sunday night against the Detroit Red Wings, but there was more to be had.

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The Canadian flag is displayed during the Stanley Cup playoff game between the Edmonton Oilers and the Vancouver Canucks at Rogers Place on May 18, 2024, in Edmonton, Canada. (Andy Devlin/NHLI via Getty Images)

During the first period, Vancouver defenseman Derek Forbot was assessed a two-minute penalty for interference. That prompted longtime Canucks announcer John Shorthourse to facetiously say that the penalty would actually be 25% longer.

“This will actually be a two-and-a-half minute power play for the Detroit Red Wings, due to the 25% tariff that has been imposed on penalties to Canadian-based teams,” Shorthouse said.

Vancouver was able to kill the penalty, with the ending of the first period benefiting them.

Vancouver tied the game midway through the third after newcomer Filip Chytil scored, but Detroit would win, 3-2, in overtime.

Prime Minister Justin Trudeau addresses the Liberal party caucus meeting in Ottawa, Canada, on Dec. 16, 2024. (Reuters/Blair Gable/File Photo)

US OLYMPIC GOLD MEDALIST RYAN CROUSER GRADES HIS ACTING SKILLS IN UPCOMING SUPER BOWL COMMERCIAL

Trump and Canadian Prime Minister Justin Trudeau spoke via phone on Monday, hours before additional 25% tariffs were to take effect on Canadian goods coming into the United States. In a post on X, Trudeau said Canada will implement a $1.3 billion border plan and appoint a fentanyl czar.

Trump has long said Canada and Mexico have failed to do enough to prevent the flow of illegal migrants and drugs, particularly fentanyl, from those nations into the U.S. In addition, Trump claims the U.S. has subsidized Canada to the tune of $200 billion annually.

Prime Minister Justin Trudeau, speaks during a Liberal Party fundraiser in Ottawa, June 10, 2024. (Spencer Colby/The Canadian Press via AP)

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Trump had promised to impose a 25% tariff on all Canadian and Mexican goods, as well as a 10% tariff on Canadian energy and a 10% tariff on all goods entering the U.S. from China. The tariffs on China were set to go into effect Tuesday at midnight.

Fox News’ Louis Casano contributed to this report.

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February 4, 2025
Voters reject Trump’s tariff push; most believe policy will hurt economy

The Claman Countdown panelists Kenny Polcari and Dryden Pence explain the impact of tariffs on foreign relations.

President Donald Trump has followed through on his campaign promise to impose tariffs on U.S. trading partners to secure concessions on a variety of trade and security issues, although a recent poll suggests voters are skeptical of that strategy and expect tariffs will hurt the economy.

Over the weekend, Trump announced 25% tariffs on Canada and Mexico as well as 10% tariffs on China effective on Feb. 4, though on Monday he delayed the Canada and Mexico tariffs for at least 30 days after each country agreed to deploy 10,000 personnel to work on securing their borders with the U.S. He told reporters in the Oval Office on Monday that “tariffs are very powerful both economically and in getting everything else you want.”

“Tariffs, for us, nobody can compete with us because we’re the pot of gold,” Trump said. “But if we don’t keep winning and keep doing well, we won’t be the pot of gold and then tariffs won’t be so good for us. But when you’re the pot of gold, the tariffs are very good, they’re very powerful, and they’re going to make our country very rich again,” Trump added.

While Trump is continuing to leverage tariffs against other countries in negotiations over trade, immigration and drug policies, a Fox News Poll conducted from Jan. 10-13 found that a majority of Americans expect tariffs will hurt the U.S. economy.

HOW TRUMP’S TARIFFS CLOSED THE LOOPHOLE USED BY CHINESE RETAILERS

President Donald Trump is delivering on his campaign promise to use tariffs as a negotiating tool – though a recent poll shows voters worry tariffs will hurt the economy. (Bill Pugliano/Getty Images / Getty Images)

The Fox News poll, which interviewed a sample of 922 registered voters on a mix of landlines, cell phones, and an online survey after receiving a text, asked respondents if imposing tariffs on products imported from other countries helps the U.S. economy, hurts the economy, or doesn’t make much of a difference either way.

It found that 50% of all respondents think tariffs will hurt the U.S. economy, while 32% believe they will help, and 15% think they won’t make a difference.

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There was a notable partisan split in respondents’ views of the impact of tariffs on the U.S. economy.

Among Republicans who were surveyed, 55% said they think tariffs help, while 23% said they hurt and 17% thought there was no difference.

Over three-quarters of respondents who identified as Democrats, or 77%, said tariffs hurt the economy – while 11% said they help and 11% didn’t see a difference.

Mexican President Claudia Sheinbaum reached a deal with Trump to delay U.S. tariffs for at least 30 days while Mexico deploys 10,000 troops to the U.S. border to counter illegal immigration and drug smuggling. (Emmanuel Rosas/ObturadorMX/Getty Images, left, and Allison Robbert-Pool/Getty Images, right. / Getty Images)

HOW TRUMP’S TARIFFS COULD AFFECT THE PRICE OF POPULAR FOODS

A majority of independent voters were opposed to tariffs, with 55% saying they hurt the economy compared with 22% saying they help and 19% thinking they don’t make a difference.

Separately, the poll asked voters whether they support Trump’s proposals to impose large tariffs on Canada and Mexico to get them to change their immigration policies. A 53% majority of respondents opposed the policy, while 42% were in favor and 6% said they don’t know.

TRUMP REASSERTS TOWERING 100% TARIFF THREAT AGAINST BRICS COUNTRIES

President Donald Trump and Canadian Prime Minister Justin Trudeau agreed to a deal that would see the U.S. delay tariffs for 30 days while Canada acts to help secure the border. (Dan Kitwood/Getty Images) / Getty Images)

Voters were also asked what they think Trump’s top priority should be as president and while economic issues ranked near the top, implementing tariffs ranked near the bottom of the list.

Immigration issues such as building the wall, curbing illegal immigration and deporting illegal immigrants were tied with the economy and job creation at 13% each.

Those were followed by addressing inflation and prices, which 11% of respondents viewed as their top priority for the president.

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Just 1% of respondents indicated that implementing tariffs should be Trump’s top priority – which was tied at the bottom with eight other responses.

February 4, 2025
LARRY KUDLOW: Tariff diplomacy means crank up the Trump tax cuts

One thing we’ve learned about President Donald Trump’s tariff diplomacy is that he’s not bluffing.

He did offer Mexico President Sheinbaum a 30-day pause in the 25% tariff.

That’s because at the last moment she came in with a proposal to put 10,000 troops on the border to stop illegal immigration and curb the flow of fentanyl and other deadly drugs.

Identically Canada’s Trudeau did the same thing – so another 30 day pause.

Shows you what strong, decisive, and energetic leadership can do.

These are big Trump wins.

But rest assured Mr. Trump was ready to pull the trigger. And I agree with his use of tariffs to protect both national and economic security.

Now here’s a related thought.

‘Kudlow’ panelists John Carney, David Malpass and Joe LaVorgna break down President Donald Trump’s economic policies.

Mr. Trumps aggressive use of tariffs should bring the Republican Congress great incentive to get the tax cuts passed.

Both the 2017 tax cut extension and some of the new Trump 2.0 tax cuts such as the 15% corporate tax, ,tax free tips for service workers, overtime pay and seniors.

Remember one of the good arguments posed by the President was that tariffs would generate revenues and revenues could finance tax cuts.

The 10% universal tariffs baseline that I strongly favor would of course allow Mr. Trump to seek reciprocity in bilateral negotiations.

But it could also provide something like $500 billion give or take to finance tax cuts.

In effect regarding the rest of the world, you tax us, then we’ll tax you back.

But our tax take will be given right back to our businesses and blue-collar working families.

And then in the spirit of reciprocity, if you stop taxing us then we’ll stop taxing you.

But who can tell if the tariff truce between Trump and Sheinbaum and Trudeau will continue longer than a month.

Mexico is a tough case because its basically became a narco state.

China’s exporting raw materials for fentanyl and other drugs, and the cartels put them all together in these hideous drug factories. And then the cartels bring them into the U.S. killing hundreds and thousands of Americans.

It’s the worst thing I’ve ever seen.

Mr. Trump is willing to tariff Mexico til the end of their time until they stop allowing this.

So once again, my message to Republican House and Senate members: please crank up those tax cuts into one big beautiful bill to be finished this spring, and help launch the Trump golden era, blue-collar boom.

February 4, 2025
Trump’s tariff critics are trading on overblown and unfounded fears

Canadian Energy and Resource Minister Jonathan Wilkinson on the relationship with the U.S., and trade conversations between Prime Minister Trudeau and President Donald Trump.

The market analysts and so-called economists panicking over President Donald Trump’s tariffs must be at least somewhat relieved that he’s agreed to pause the ones he wants to impose on Mexico.

But they shouldn’t have been worried in the first place, because their fears are misplaced. Trump understands the harsh reality of the situation: other nations have exploited the U.S. for decades, and it’s long past time America fought back. In fact, Trump’s actions will benefit Americans greatly.

In the first place, the idea that tariffs are always and everywhere passed on to consumers is a fallacy, by both economic theory and the record of history. Factors such as changes in exchange rates mean that foreign producers typically end up paying some (or most) of a tariff.

HOW TRUMP’S TARIFFS CLOSED THE LOOPHOLE USED BY CHINESE RETAILERS

We forget that during America’s Golden Age, the government essentially funded itself entirely with tariffs; the income tax didn’t even exist. Instead of tariffs wreaking untold economic calamity, they coincided with our fastest sustained levels of growth—a time that built America’s middle class.

But today, both our friends and foes alike abuse America in international trade and undermine her potential to thrive. For example, Mexico has been working with China to circumvent tariffs and non-tariff barriers (NTBs) on China and abuse provisions of the trade deal between Mexico and Canada. That makes it impossible for American companies and American workers to compete.

FOX Business host Larry Kudlow discusses President Donald Trump’s ability to get the Columbian president to ‘cave’ to him on deportations on ‘Kudlow.’

Slapping a tariff on both Mexico and China penalizes this kind of underhanded dealing and puts American exporters back on a more level playing field. When asked about tariffs on the European Union, Trump said he’ll use the same playbook, and rightfully so.

MEXICO AGREES TO DEPLOY 10,000 TROOPS TO US BORDER IN EXCHANGE FOR TARIFF PAUSE

Many European nations use schemes like value added taxes (VATs) to impose implicit tariffs on American exports. Furthermore, countries like Germany and Japan still have tariffs that were put in place after World War II to protect industries being rebuilt following the conflict. The status quo has completely changed, and there’s no reason for these nations to continue penalizing American farmers and factoryworkers.

We finally have a president who recognizes these realities and who is implementing a carrot-and-stick approach to reshuffle the international paradigm in America’s favor. Trump is simultaneously making it more expensive to produce abroad and hire foreigners, while making it less expensive to produce domestically and hire Americans.

Deregulation, lower marginal tax rates, and abundant energy will all contribute to lower costs of production in the U.S. while tariffs will increase costs on overseas production. How does this play out?

CHINA THREATENS TO RETALIATE AGAINST TRUMP TARIFFS

Consider Canada, whose leaders are ranting about Trump standing up for Americans. If Canada agrees to eliminate its own tariffs and NTBs, then American exporters, like dairy farmers, will be more competitive and will sell more product in Canada. That means doing more business and employing more Americans.

If Canada remains obstinate and insists on a trade war, then Canadian products will be less competitive, opening the door for American producers, like foresters, to expand production and sell more domestically while employing more Americans. Trump is positioning the American worker to come out on top either way.

Professional Capital Management founder and CEO Anthony Pompliano argues tariffs don’t cause inflation, they incentivize domestic production on ‘Varney & Co.’

As economist Art Laffer has noted, there are no winners in trade wars, but the losers can face drastically different losses. Nearly all Canadian exports go to the U.S. but only a small fraction of American exports go to Canada. If international trade between the two slows dramatically, it’ll lead to a steep recession in Canada but will be more like a speed bump for the U.S.

TRUMP IMPOSES TARIFFS ON IMPORTS FROM CANADA, MEXICO AND CHINA: ‘NATIONAL EMERGENCY’

In short, Trump holds all the cards. And he knows it.

But it’s not just a matter of getting other nations to fully open their markets to American exporters; it’s about the trade deficit, which can’t go on forever. Economic textbooks sometimes explain away the deficit by pointing out that individuals often have steep trade deficits with retail stores, like Walmart or Amazon, and that doesn’t cause the individual to go bankrupt.

While that’s true, this singular trade deficit is only possible in the long run because the individual has a massive trade surplus somewhere else, like their place of employment.

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America’s long-standing deficit has been funded by the Federal Reserve, which has effectively been printing money and sending it around the world to finance our elephantine trade deficits for decades. This process has devalued the dollar over the years, so that Americans’ money doesn’t go as far as it used to—a phenomenon we call inflation.

But the inflationary impact of our trade deficits has been blunted by the dollar’s status as the world’s reserve currency. If we suddenly lose that, however, America may face hyperinflation. That’s why Trump has threatened tariffs on countries that seek to dethrone King Dollar from its place in the world monetary order—a quick end to the dollar’s reserve currency status would be disastrous.

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Lastly, Trump understands the misnomer of “free trade.” If we really want free trade, then why only advocate for it in international markets? Why not domestic transactions too? In other words, if taxes on international trade are so bad, then why do we allow taxes on domestic trade—like the income tax, which is a tax on labor?

Free trade should apply first and foremost to domestic trade because we should be focused on benefiting our own citizens before we worry about those overseas. We don’t hate foreigners—we just love Americans more.

E.J. Antoni, a public finance economist, is the Richard F. Aster fellow at the Heritage Foundation and a senior fellow at Unleash Prosperity.

February 3, 2025
Dems claim Trump tariff could ‘drive up’ costs despite deflecting blame from Biden’s inflation

Democratic lawmakers are claiming that President Donald Trump’s impending tax on international goods will raise costs, despite spending years deflecting blame for high prices from the Biden administration.

Trump signed an executive order Saturday night to impose a 25% tariff on imports from Mexico and Canada and a 10% tax on all imports from China, fulfilling a promise he made during his 2024 presidential campaign as a way to circumvent drug trafficking into the U.S.

The tariffs on Canada and China are set to go into effect at midnight, but Trump announced on Monday that he would pause the tariff on Mexico for one month after discussions with President Claudia Sheinbaum. However, as the tariffs loom, Democrats are claiming they could drive up bills for everyday Americans, despite supporting several tax hikes under the Biden administration.

“This is a terrible idea,” Sen. Mark Kelly, D-Ariz., said in a statement. “Folks are already struggling to get ahead because of high prices, and now President Trump is about to drive up grocery and gas prices while raising costs on Arizona businesses.”

TRUMP DEFENDS TARIFFS, ACCUSES CANADA OF BEING ‘VERY ABUSIVE OF THE UNITED STATES’: VIDEO

Sen. Chuck Schumer, D-N.Y., criticized President Donald Trump’s order to tariff Mexico, Canada and China. (J. Scott Applewhite)

Sen. Mark Warner, D-Va., claimed Trump’s tariffs “could cost a typical family $1,200 per year,” while Rep. Jamie Raskin, D-Md., said that “President Trump owns the economic and national security fallout.”

TRUMP’S TARIFFS ON MEXICO, CANADA ARE THE ‘BEGINNING OF A NEGOTIATION,’ SAYS KEVIN O’LEARY

Additionally, Democratic Rep. Greg Stanton of Arizona cosigned a letter with 42 lawmakers calling on Trump to “immediately” rescind the 25% tariffs on Mexico and Canada.

“Trump’s tariffs on Canada will do nothing but hurt American workers and auto manufacturers. He’s giving our overseas competitors a leg up,” Sen. Gary Peters, D-Mich., claimed in a reaction to the impending tax.

Rep. Jamie Raskin, D-Md., said that “President Trump owns the economic and national security fallout.” (Kevin Dietsch)

“It would be nice if Donald Trump could start focusing on getting the prices down instead of making them go up,” wrote Sen. Chuck Schumer, D-N.Y. “I am concerned these new tariffs will further drive up costs for American consumers. We should be focused on going hard against competitors who rig the game, like China, rather than attacking our allies.”

While Democrats are uniting to criticize Trump’s tariffs, members of the party did not widely push back on tax increases implemented by former President Joe Biden.

During his administration, Democrats backed Biden’s proposals for a range of tax increases, including hikes on small businesses, corporations, capital gains and dividends, personal income, energy and a second estate tax.

President Donald Trump said that Canada has been “abusive” toward the U.S. in terms of trade. (Getty Images)

When gas prices doubled under Biden, according to data from the Energy Information Administration, Schumer, then-Senate majority leader, claimed that it was oil companies “gouging us at the pump” who were to blame.

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Despite the backlash, Trump has defended his decision to authorize the tariffs, telling reporters on Sunday night that Canada has been “abusive” toward the U.S. in terms of trade.

Aubrie Spady is a Writer for Fox News Digital.

February 3, 2025