Breathe
By Georgina de la Fuente
Last April 2 was dubbed by the Trump administration as "liberation day," seeking to rid the United States of foreign goods through the widespread imposition of tariffs. Thus, with tariffs ranging from 10 to 46 percent on a variety of countries, Trump is making good on his campaign promise and recurring threat to reverse what he perceives as unfair and advantageous trade competition.
The list of countries did not include Canada and Mexico, which was celebrated in our country and even described by some as a victory for Claudia Sheinbaum. The truth is that this announcement does not exempt us from other tariffs imposed unilaterally by the United States, including those on steel, aluminum, cars and goods that do not qualify under the TMEC. Although Sheinbaum has been applauded for keeping a cool head and intelligence to deal with immediate threats, the truth is that there are aspects in which her strategy has fallen short, resulting in a loss of negotiating leverage and valuable time.
For months, since the U.S. presidential transition and until the first tariff announcements, both the president and members of her cabinet insisted that it was not possible for the U.S. president to make good on her threats, as the costs to the neighboring country's economy would be too high. They insisted on several occasions that it would be "like shooting themselves in the foot", since the prices of all products in the United States would increase in the same proportion.
But they failed to incorporate into the analysis and strategy fundamental elements of U.S. domestic policy that today allow us to see that the so-called "liberation day" is not only the approach to a new trade policy. It is a new political vision outlined in "Project 2025", disseminated by the Republican Party since the presidential campaign, based on the premise that there are no allies and no partners. There are only trade deficits that have undermined the industrial and manufacturing bases of the United States to the point of jeopardizing national security. This discourse explains, in part, the support that the Republican party has gained from the working class and manufacturing industry. Thus, the imposition of tariffs is used as a political tool to maintain the support of its base. But it can also be used as a fiscal policy to raise more revenue to reduce taxes and eliminate regulations, as promised in the campaign.
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