After US President Donald Trump threatened Colombia with a 25% tariff if the country didn’t agree to accept deported migrants, the White House reported that South American nation agreed to Trump’s terms.
Mercatus Center senior research fellow Christine McDaniel joins Seana Smith and Alexandra Canal on Catalysts to discuss what the quick resolution with Colombia signals about Trump’s tariff strategy.
"A tariff is an import tax [and] it raises prices, but President Trump has been able to use tariffs as a very effective negotiating tool so far," McDaniel says. "President Trump campaigned on certain things, border control, border security, fentanyl crisis, and getting other countries to increase their defense spending. He seems to be very serious about that, and he sees tariffs as a tool to use to achieve those goals."
China has been a key focus of Trump’s tariff talk, but success in negotiating with Colombia won’t necessarily translate with China, McDaniel says. "China’s not Colombia," the economist notes, adding that Trump has indicated "his relationship with [Chinese President] Xi as very important."
Presidents Trump and Xi Jinping "perhaps have some understanding about what each other’s priorities are and where the red lines are. So, I’m cautiously optimistic," McDaniel adds.
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