Stephen Moore, former economic advisor to President Trump, criticized the tariffs on Canada and Mexico as misguided, citing a wobbly economy that needs stimulus through tax cuts rather than tariffs. He urged Congress to expedite the extension of the 2017 tax cuts to aid recovery. The situation remains complex as the U.S. grapples with trade implications.
Stephen Moore, a former economic advisor to President Trump, has recently criticized the tariffs imposed on Canada and Mexico, labeling them as “misguided”. He cautioned that the current state of the U.S. economy is “wobbly” and suggested that instead of tariffs, the government should focus on measures that stimulate growth such as extending tax cuts.
Moore highlighted concerning economic indicators, mentioning a disappointing jobs report and declining consumer confidence. He believes that the tariffs, which include a 25% levy against Canada and Mexico and a 20% tariff on China, are hindering economic recovery rather than aiding it.
The tariffs, implemented on March 4, had an immediate effect on the U.S. stock market. However, President Trump subsequently granted temporary tariff exemptions for automobile manufacturers sending cars from Canada and Mexico. In light of nearly 38% of imports from Canada and 50% from Mexico falling under the U.S.–Mexico–Canada Agreement (USMCA), these exemptions help mitigate the adverse impact of the tariffs.
Currently, the United States imports approximately $1.5 trillion worth of goods and services annually from Canada, Mexico, and China. Moore insists that providing stimulus through the tax cut extension, rather than relying on tariffs, is essential for the economy’s revival. He urged Congress to act quickly to pass the extension by Memorial Day.
In response to the economic challenges, Republican lawmakers are working on a legislative package that includes extending the 2017 tax cuts, enhancing border security, strengthening defense, and increasing energy production. Moore, an advocate of Trumponomics, has previously collaborated with Trump on economic policies.
While some officials remain optimistic, like Commerce Secretary Howard Lutnick, who dismissed recession fears, Trump himself has refrained from predicting economic outcomes directly, acknowledging the transitional period facing the country. He stated that the goals of bringing wealth back to America may take time but are ultimately beneficial.
In conclusion, Stephen Moore’s critique of the tariffs on Canada and Mexico highlights his concerns regarding the current economic climate in the U.S. He advocates for immediate action on tax cuts to instigate growth rather than imposing tariffs, which he believes hinder economic progress. Despite some optimism among government officials, the economic indicators present a challenging landscape for recovery.
Original Source: nypost.com
