China Fights Back! Trump Tariffs Trigger Retaliation (Uncut) 02-05-2025
China Fights Back! Trump Tariffs Trigger Retaliation (What You Need to Know)
In today’s video, I want to give you an update on the Trump tariffs. China is fighting back, and President Trump is threatening the European Union. So in today’s tariff video, we will be covering the US agreements with Mexico and Canada, tariffs against China which have gone into effect, and the threat of tariffs against the European Union.
So we’re going to start with Canada and Mexico. So on Saturday, February 1st, President Trump declares a national emergency on the IEEPA from the extraordinary threat posed by illegal migrants and drugs, resulting in a 25% tariff against Canada and Mexico, and that was supposed to go into effect on Tuesday, February 4th. Okay, so one day before that went into effect, a last-minute agreement was reached between the United States of America with Mexico and Canada, and the tariffs were postponed for 30 days.
Both Canada and Mexico agreed to boost border enforcement. Now, here were the pledges by Canada and Mexico. So Canada will implement a $1.3 billion border plan with 10,000 workers to stop the flow of fentanyl.
Canada will also appoint a fentanyl czar to lead a joint strike force with the US to stop fentanyl and money laundering. And railroad shipments coming into the US will be more tightly monitored. Now, regarding Mexico.
Mexico will send 10,000 National Guard troops to the US border. Rail shipments coming into the US will now have enhanced surveillance. And there’s going to be cooperation to prevent gun trafficking into Mexico.
Now, I want to tell you this. This is my opinion. I want to be very clear about that.
And I want to tell you two things. So the first thing is that these tariffs against Mexico and Canada, and the retaliatory tariffs against the US, that would have been no good for any of us. Mexico and Canada would have suffered more.
However, the United States of America would have suffered as well. Financial markets would be down and inflation would have risen. And the second thing is the, okay, so the tariffs are postponed, right? But in my opinion, President Trump is doing a postponement rather than calling it off to make sure that this increased border security remains in place.
So I do believe that illegal border crossings will fall along with fentanyl, which means that this postponement will essentially be indefinite. So the tariffs will not happen unless something goes really wrong. Now let’s move on to China.
On February 1st, a 10% tariff was implemented on Chinese imports. This has not been postponed. This tariff has gone into effect as of Tuesday, February 4th.
So on February 4th, Trump and Xi Jinping were supposed to talk. That phone call never happened. Because China announced retaliatory tariffs against the U.S. So here’s what China did.
China announced 10% tariffs on U.S. oil and machinery, 15% tariffs on U.S. coal and gas, and export restrictions on critical minerals. So they even restricted Google’s operations in China. So Google stopped their search engine services in China in 2010, but they still are providing international services for Chinese businesses.
Now, I want to show you this video clip of President Trump’s reaction to China’s retaliatory tariffs. So please take a look. Mr. President, what’s your reaction to China’s retaliatory tariffs? That’s fine.
That’s fine. We’re going to do very well against China and against everybody else. So listen, when it comes to this whole situation, I’m still going to be sticking to my prediction.
And that is that 10% universal tariffs will not happen. 25% tariffs on our neighbors will not happen. Additional tariffs on China, I said that’s going to happen, and it happened.
So you saw President Trump’s response to China. If anything, the situation with China is just going to escalate. But the thing is that China is not our largest trading partner.
It’s Mexico and Canada. So listen, that’s why I said, and it wasn’t just me, it was many other people too, that a 25% tariff, that is such a big amount. And on our largest trading partners, it just didn’t make any sense.
It was a negotiating tactic, as many people thought that it would be. Now regarding China, you could say that President Trump started with a smaller amount, 10%, because he knew, as well as many other people, that this was going to be for real. Now I want to show you the situation with the European Union.
So President Trump is threatening the EU with tariffs. And the question is, is he really going to go through with it? So I want to show you what President Trump said on January 31st. What does that mean? Well, you’re asking me a question, because I’m sure you didn’t hear, am I going to impose tariffs on the European Union? Do you want the truthful answer, or should I give you a political answer? Absolutely.
Absolutely. The European Union has treated us so terribly. Okay, so that was pretty clear, right? Now regarding the European Union, the negotiations, as you know, it’s not about fentanyl.
It’s not about illegal border crossings. It’s more about, well, I don’t want to put words in President Trump’s mouth, so I’ll show you the video clip. He’s saying it’s because the EU is taking advantage of the United States of America.
So you can see it for yourself. It will definitely happen with the European Union. I can tell you that, because they’ve really taken advantage of us.
And we have over a $300 billion deficit. They don’t take our cars. They don’t take our farm products.
They take almost nothing. And we take everything from them. Millions of cars.
Tremendous amounts of food and farm products. So the UK is way out of line. And we’ll see the UK, but European Union is really out of line.
UK is out of line, but I’m sure that one, I think that one can be worked out. But the European Union is, it’s an atrocity. What they’ve done.
Okay, now I want to show you the trade deficit between the US and the EU. So the European Union exports more goods to the US than they import from the US. The deficit is $161 billion.
And as you can see, the deficit has been widening. Now here are the largest EU exporters to the United States, with Germany at the number one spot, followed by Italy, Ireland, and France. So this will give you a quick view of which countries would be impacted the most.
However, I say quick view because you also have to take into consideration the sizes of their economies. Now, I just want to say this. It’s going to be very interesting to see how the negotiations go, because you have to think about it.
If you’re a EU country that doesn’t do much exporting to the United States of America, then you’re not going to care so much about tariffs. But not as much as Germany or Italy, Ireland, or France. But the European Union, they’re saying that they have to stand collectively against the threat of tariffs.
But do you see what I’m saying? It’s going to be very difficult. It’s a trickier situation. That’s all I’m saying, because you’re not dealing with just one country in this situation.
And I want to tell you this. I want to clarify this. The reason why I’ve been talking about tariffs so much is because it affects everything that we talk about on this channel.
It hits upon inflation and the economy. Of course, that includes the labor markets. You know, that affects monetary policy, which affects interest rates.
And that in turn affects the housing markets. And of course, the stock market is affected by this, as you clearly saw on Monday morning before the 25% tariffs were postponed. And of course, all of this, it’s connected.
It’s all connected with the debt crisis, which is why this topic is so important. Now, listen, I want to tell you this. This is very important.
And this is my opinion. I believe that the bulk of this topic is coming to a conclusion. Some people may beg to differ.
Some people may say that it’s just starting with China. And I wouldn’t disagree. But the bulk of this tariff situation with Canada, Mexico, with the EU, even with the EU, and the 10% universal tariffs, I think it’s, you know, most of the drama is done for the most part.
But that’s my opinion. Please let me know what you think. Please subscribe.
I’ll keep you updated. And thank you for the support. I wish you a very nice day.
Take care.