ABC News Daily Alan Kohler on Trump’s tariff chaos
Feb 4, 2025
Alan Kohler, ABC TV's finance expert, dives into the whirlwind of Donald Trump's tariff announcements. He unpacks the unexpected removal of tariffs on Mexico and Canada and its chaos in financial markets. Kohler discusses how these decisions affect trade relations and the looming threat of a global trade war. Additionally, he highlights the specific impacts on Australia's economy, including exports and inflation, while exploring the broader implications of political instability on global markets.
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Tariff Threats as Leverage
- Trump's tariff threats are a negotiating tactic to achieve his goals with Mexico and Canada.
- The tariffs were paused after he seemingly secured concessions related to border security.
Border Security Response
- Trump's tariff threats prompted responses from Mexico and Canada regarding border security.
- Mexico pledged troops, and Canada announced a border reinforcement plan.
Tariffs: Threat vs. Reality
- Trump uses tariffs as leverage in negotiations, but their actual implementation remains uncertain.
- The effectiveness of the threat diminishes if tariffs are never imposed.