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WSJ Opinion: Potomac Watch

Donald Trump Makes a Tariff Deal With Mexico and Canada

WSJ Opinion: Potomac Watch

The Wall Street Journal

News, Society & Culture

4.22.8K Ratings

🗓️ 3 February 2025

⏱️ 22 minutes

🧾️ Download transcript

Summary

After Donald Trump announced a 25% tariff on all goods from Mexico and Canada, the three countries negotiated a last-minute 30-day pause. Who blinked on the tariff showdown, and what comes next?  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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dot com and secure your seats today from the opinion pages of the wall street journal this is potomac watch

0:36.9

donald trump imposes tariffs of 25% on all goods from

0:43.0

Canada and Mexico on Saturday, effective Tuesday, he said. Canada announced a retaliation,

0:49.5

but then Mexico and the United States on Monday cut a deal where they say the U.S. is postponing the

0:56.9

tariffs for a month pending more negotiation and a concession on the part of Mexico that we'll talk

1:05.1

about. So what's the importance of Trump's actions and how economically significant are they and what happens next. That's our

1:13.8

subject for today on Potomac Watch. I'm Paul as you go. Editor of the Wall Street Journal Opinion

1:20.0

Pages. This is our daily podcast and I'm here with Mary Anastasia O'Grady and Alicia Finley.

1:26.5

So, Mary, why do you think Trump did this? 25% on two allies

1:31.3

with whom we have a treaty agreement, the U.S.MCA, that Donald Trump himself signed after his

1:38.8

negotiator put it together. But the tariffs of only 10% on China, a genuine adversary. What's Trump's calculation here?

1:46.5

So he was trying to get attention, to show his power, to show his commitment to tariffs as a way

1:53.4

to raise revenue, to show that he thinks America is being ripped off by the rest of the world,

1:59.1

to show his trade theory of what he believes about

2:02.7

trade and to show that he's going to be tough on migration and fentanyl. That's why he did it.

2:08.6

Okay. So political justification. In other words, what you seem to be saying is he almost had to do it,

2:13.6

given the fact that he threatened it so often, He almost had to show he'd do it.

...

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