The reactions to President Trump’s border security tariffs are not quite as funny from Canada, as they were Mexico, but they are still funny.

A subdued and despondent Justin Trudeau said he and President Trump spoke last night, and he stresses the importance of the bond and relationship; you know, the ‘feels’.  WATCH:

PM Trudeau tells reporters he had a phone call with US President-elect Trump after Trump threatened to impose 25% tariffs on all Canadian products.

Trudeau says he has also been in touch with premiers to address this issue. pic.twitter.com/06boFKsEuv

— True North (@TrueNorthCentre) November 26, 2024

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Meanwhile, in a far more funny and less politically correct reaction, Ontario Premier Doug Ford says, ‘hey, wait a minute, we aren’t Mexicans’. WATCH:

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Germany is the largest economy in the E.U. However, due to a confluence of horrible events, most of them self-created as an outcome of ridiculous energy production decisions, the German industrial economy has been contracting since 2022.

Into this downward spiral of negative economic events within Germany, now comes the problem of President Trump eager to eliminate the Marshal Plan of one-way tariffs and start dealing with the trade inequities.  The German industrial manufacturing companies who make up the majority of the economic output are concerned, very concerned.

Within the discussion suddenly something appears that all Western financial pundits have yet to accept. Leo Barincou, a senior economist at Oxford Economics in Paris says:

[…] limited tariffs on selected products, such as cars, chemicals and agricultural products, may not be too much of a problem, Barincou says. A rising dollar, and hence a falling value of the euro, would offset some of the harm caused by the tariffs. “At a macro level, the impact would be limited,” he says. (read more)

Yep, here we go again.

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Boy howdy, this article by The Associated Press is very telling.

First, it’s worth remembering that in the fine print of the USMCA deal, Mexico and Canada must comply with North American parts origination for anything they want to manufacture for sale into the United States.  Meaning, all trade manufacturers must either create their component parts domestically, or purchase them from the U.S, Mexico and Canada. It’s the core point of the USMCA trade agreement.

Secondly, in an aspect exclusive to the U.S. part of the deal that President Trump and USTR Lighthizer insisted upon, if either Canada or Mexico are deemed to be non-compliant with the agreement, the USA can cancel/override any trade agreement Mexico or Canada have with another nation.  It’s a heavy accountability hammer securing the gate into the massive USA market.

In an AP report today, Mexico is scrambling to find local or North American sources of parts and components, because President Trump is set to come into office and look at USMCA compliance.  Apparently, Mexico has been using excessive amounts of Chinese component parts for goods being sent into the USA and Canada.  Now they are quickly trying to source alternatives.

MEXICO CITY (AP) — Mexico has been taking a bashing lately for allegedly serving as a conduit for Chinese parts and products into North America, and officials here are afraid a re-elected Donald Trump or politically struggling Canadian Prime Minister Justin Trudeau could try to leave their country out of the U.S.-Mexico-Canada free trade agreement.

Mexico’s ruling Morena party is so afraid of losing the trade deal that President Claudia Sheinbaum said Friday the government has gone on a campaign to get companies to replace Chinese parts with locally made ones.

“We have a plan with the aim of substituting these imports that come from China, and producing the majority of them in Mexico, either with Mexican companies or primarily North American companies,” Sheinbaum said.

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The interview below is a little complicated at first on the issues of economics. If you are not an economic wonk, or deep research into the theories and realities of how finance and human activity can transact in the world of economics, it might be a little complicated. However, if you are a person who enjoys a deep discussion on the intricacies of the battle between economic freedom -vs- socialism, then this is for you.

Lex Fridman does an excellent job of asking a short ‘big picture’ question, then listening to a lengthy response and answer. The interview is very substantive and as the interview progresses beyond the economic issues, Argentina President Javier Milei pulls back to give perspective on the real battle within the financial ‘west’.

The first hour is wonky, complex and full of answers about what a very intelligent President Milei did to correct the course in Argentina. The second hour pulls back to the broader landscape of freedom. Find some quiet time to enjoy and absorb. WATCH:

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Chapters:
0:00 – Introduction
3:27 – Economic freedom
8:52 – Anarcho-capitalism
18:45 – Presidency and reforms

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Suspicious Cat smells some possible streamlining and downsizing afoot.

Not only has President Trump announced the nomination of Howard Lutnick as Commerce Secretary, but he has also announced that Lutnick will carry the role and “responsibility for the Office of the United States Trade Representative” (USTR).

[LINK]

Perhaps in the second term President Trump and Howard Lutnick are going to fold the USTR into the Dept of Commerce?  Interesting.

Hopefully, Howard Lutnick, like Wilbur Ross, will keep the U.S. Chamber of Commerce blocked from influence over the upcoming trade discussions and potential trade agreements.  We note that former USTR Lighthizer was part of the transition discussion, and it seems odd his name has not surfaced…. yet.

Regardless, Howard Lutnick is an excellent choice for all the reasons previously outlined.

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In September we noted Howard Lutnick was the *ONLY* person, other than former Commerce Secretary Wilbur Ross, who accurately outlined: (1) Energy as the core source of sticky inflation; and (2) ending the Marshal Plan for EU tariffs as a key objective in term-2.

In combination with his eloquence in outlining MAGAnomics, which is remarkably impressive, this combination of skillsets would make Howard Lutnick the ideal candidate for Term-2 Commerce Secretary.  The guy simply ‘gets it.’ {SEE HERE}

Howard Lutnick was also in the running for Treasury Secretary; however, today several media outlets are reporting that Lutnick is likely to be nominated as Commerce Secretary, making him the first and leading WOLVERINE announced in the MAGAnomic team.

WASHINGTON DC – Donald Trump is expected to nominate veteran Wall Street financier Howard Lutnick to lead the Commerce Department, according to people familiar with the matter, elevating one of the financial world’s most vocal supporters of the president-elect to a crucial position overseeing the incoming administration’s economic agenda.

Lutnick, chief executive of the financial-services firm Cantor Fitzgerald, in recent months has become a close Trump ally and had been a top contender to lead the Treasury Department. As the co-chair of the president-elect’s transition team, Lutnick has spent much of his time at Mar-a-Lago, Trump’s private Florida club, poring over shortlists of candidates for positions in the administration.

A spokeswoman for Lutnick declined to comment. A Trump transition team spokeswoman didn’t immediately respond to a request for comment. Punchbowl News earlier reported that Trump was expected to chose Lutnick for the role. (read more)

Howard Lutnick gets it. The essential core of MAGAnomics.  Drive down the cost of goods through expanded energy development, then leverage reciprocity in tariffs to end the exfiltration of wealth.  Then cut out regulation and unleash American enterprise. This is the way to reverse this insufferable economic trajectory that creates a “service driven economy.”   The entire interview is well worth watching:

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Appearing on Fox News, Venture Capital Chairman Kevin O’Leary outline the anticipated impact of RFK Jr. as HHS secretary on businesses, President Trump’s plan to reducing government costs via Elon Musk, and what to expect with Doug Burgum as interior secretary.  WATCH:

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Businessman Chris Wright is the CEO of oilfield services group Liberty Energy.  Wright helped launch the American Shale Revolution of the mid-2000s that significantly increased US production of oil and natural gas.

President Trump has announced the nomination of Chris Wright to be Secretary of Energy.

[SOURCE]

“The Council of National Energy will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy. This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over longstanding, but totally unnecessary, regulation,” Trump said Friday.

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Responding to reporters’ questions, today President of the European Union commission Ursula von der Leyen congratulated Donald Trump then immediately began the framework to explain EU background discussions in economic terms. “We still get a lot of [liquified natural gas] from Russia, and why not replace it by American LNG, which is cheaper for us and brings down our energy prices,” said Ursula von der Leyen.

The EU realizes the seismic shift that is upon them as a result of the U.S. election.  Everything from the Ukraine-Russia war; the economics of energy which President Trump will use in negotiations for peace; to the factual lowered prices within the EU created by Joe Biden energy policy to punish Americans; to funding for NATO in combination with the potential for the end of the Marshal Plan one-way tariffs are looming.  President von der Leyen is in a very precarious position.

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Ursula was speaking from ¹Budapest, Hungary.

While many are interpreting her remarks about purchasing LNG to be snuggling up to President Trump, factually it is a much bigger problem than western media will openly discuss.

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Currently leading by 5 points in both Nevada and Arizona, President Donald Trump is on pace to win every battleground state in the 2024 election.

The states of Wisconsin, Pennsylvania and Michigan, previously labeled the “blue wall,” have been called for President Trump.  These three states are where James Clyburn spent most of his time on the ballot initiatives.  However, most of the critical regional ¹ballot printing operations were defeated.

Last night, President Trump secured Georgia and North Carolina.  President Trump is on pace to have shattered every battleground state result and achieve 312 electoral votes.  A resounding victory.

[Interactive Map Here]

(Via Politico) – Donald Trump won Michigan, once again turning the state red just four years after his defeat in 2020.

Both candidates spent a number of their final days in the Great Lakes State as polls projected a race hanging on a knife’s edge. Both Trump and Kamala Harris emphasized manufacturing and the economy in their visits, addressing voters’ worries about lingering post-pandemic inflation — a chief concern that bolstered the former president’s appeal.

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