“Other countries have tried to outmuscle Donald Trump and so far they’re about 0 and 20,” said Texas Agriculture Commissioner Sid Miller.
DALLAS — The Texas Department of Agriculture Commissioner praised President Donald Trump’s “art of the deal” moments before Canada announced it had reached a deal with President Trump to avoid a tariff war.
“This is going to be a big losing deal for Canada,” Sid Miller said when asked what might happen if Canada hadn’t negotiated. “They’re not being very smart if they try to outmuscle the United States. Other countries have tried to outmuscle Donald Trump and so far they’re about 0 and 20.”
But, at least according to the reaction of the Dow Jones Industrial Average, that deal was in doubt most of the day. The Dow dropped 550 points at the start of the day. It left SMU’s Cal Jillson perplexed.
“You know, we are bludgeoning our friends for reasons that I don’t quite understand,” the SMU political science professor told WFAA. “I think there’s nobody that really understands, including, Donald Trump,” he said of the potential impact on the American economy if proposed tariffs on Mexico, Canada, and China were to proceed with reciprocal tariffs from those countries.
But, by mid-morning, Mexican President Claudia Sheinbaum capitulated, agreeing to reinforce the Mexico-U.S. border with 10,000 Mexican National Guard troops and saying the U.S. had agreed to work to prevent high-powered weapons from being trafficked into Mexico. In response, the threat of tariffs is suspended for at least a month.
“I think we can all hope that that’s what he’s doing, rather than starting a tariff war that would hurt all the consumers in the U.S. and the other countries involved,” added Jillson.
The Texas Farm Bureau tells WFAA that it recognizes the tariff threat as an “economic tool.”
“Tariffs were imposed during the first Trump administration. There are concerns tariffs may increase the cost of some agricultural inputs in the U.S.,” said Texas Farm Bureau President Russell Boening. “Higher costs of production are very difficult to absorb. Profit margins in many sectors of agriculture are currently extremely thin or non-existent, and higher costs of production cannot be passed on to the consumer. The Trump administration supports U.S. agriculture, and Texas Farm Bureau trusts the administration will protect the interests of farm and ranch families as it makes economic decisions.”
“It is so clear that these tariffs are so bad for ordinary Americans and for the American economy,” said SMU economist Michael Davis. “I wouldn’t be at all surprised if President Trump is saying to himself, I need to I need to find a way to look tough without actually having to do this.”
Trump and Canadian Prime Minister Justin Trudeau reached an agreement late Monday afternoon that also suspends the threat of tariffs, at least for a month. Trudeau wrote on social media that he had a good call with President Trump and was implementing a $1.3 billion border plan “reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
“In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, and 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.”
Trump said Monday afternoon he plans to talk to China in the next day or two about tariffs on that country.