Former Trump advisor Stephen Moore criticized tariffs on Canada and Mexico, calling them misguided and harmful to the economy. He urged Congress to quickly pass a tax cut extension to stimulate growth instead. Republican efforts focus on a comprehensive legislative agenda that aligns with Trump’s economic policies.
Stephen Moore, former economic adviser to President Trump, has criticized the administration’s recent tariffs on Canada and Mexico as “misguided.” He suggests that the economy requires stimulation rather than hindrance from such taxes, and he hopes for the swift passage of a tax cut extension to provide the necessary relief. Moore emphasized on Fox News that the economy is fragile, pointing to disappointing job reports and falling consumer confidence as significant indicators of instability.
President Trump implemented a sweeping 25% tariff on Canadian and Mexican goods, alongside a 20% tariff on imports from China on March 4. These measures unsettled the US stock market. Subsequently, the administration granted temporary tariff exemptions to automakers importing vehicles from Canada and Mexico, as well as additional exemptions related to the US–Mexico–Canada Agreement (USMCA). Notably, approximately 38% of imports from Canada and 50% from Mexico fall under this agreement.
The US imports approximately $1.5 trillion in goods and services annually from Canada, Mexico, and China. Moore asserted that the economy requires a boost, which he believes tariffs do not provide. Instead, he champions the Trump tax cuts as a much-needed economic stimulus, urging Congress to expedite their passage before Memorial Day to enhance economic conditions.
Congressional Republicans are working on a legislative package that aims to extend the 2017 tax cuts while also addressing border security, defense enhancements, and energy production initiatives. Moore, a long-time ally of Trump, previously authored “Trumponomics” and provided counsel during Trump’s 2016 campaign and the drafting of the Tax Cuts and Jobs Act in 2017.
As the stock market has recently struggled, Trump has refrained from directly addressing potential recession fears. He commented on Fox News that the economic transition process is significant and will ultimately benefit the country. Commerce Secretary Howard Lutnick dismissed recession concerns, asserting confidence in Trump’s leadership and suggesting that those who doubt Trump’s success are mistaken.
In summary, Stephen Moore has expressed serious concerns regarding the efficacy of President Trump’s tariffs on Canada and Mexico, labeling them as counterproductive in the context of a struggling economy. He advocates for the swift passage of tax cuts as a preferable mechanism for economic stimulation. The situation illustrates the broader debate within the administration about trade policies and their implications for domestic economic conditions.
Original Source: nypost.com
