Other than Trump winning the election, this is the best news all year. Mexico is threatening to retaliate against Trump’s border security tariffs, with some form of economic punishment. Pinch me, this is too awesome.

Keep in mind that around 35% of Mexico’s GDP is contingent upon exports to the USA, meanwhile only around 1% of our stuff exports to them. Then add in the remittances of dollars to Mexico, and more than 50% of the Mexican economy is contingent upon us just being friendly to their needs.

Mexican President Claudia Sheinbaum has no clue or comprehension about the scale of Trump’s leverage over her. This is like a spoiled teenager threatening to cut up the credit card dad gave her if she can’t go to the concert. Beyond funny.

WASHINGTON DC – Mexican President Claudia Sheinbaum said her government would retaliate if President-elect Donald Trump moves forward with his threat to impose a 25 percent tariff on the country, warning of severe economic consequences for companies operating in both countries.

Sheinbaum unveiled the letter during her daily press conference in Mexico City, which responded to Trump’s plan to slap 25 percent tariffs on all goods from Mexico and Canada in an effort to crack down on the flow of migrants and illegal drugs into the United States. Trump also pledged an additional 10 percent tariff on China.

“For every tariff, there will be a response in kind,” Sheinbaum wrote in a letter sent to Trump. The text was released by the Mexican Embassy Tuesday morning, which said the economic fallout of a trade war would harm shared enterprises, particularly automotive companies that operate in both countries.

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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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President Donald Trump sits down with Bloomberg Editor-In-Chief John Micklethwait for an extended interview. The interview is in partnership with the Economic Club of Chicago and is structurally President Trump facing down the globalists who sell Wall Street policy.

The interview was at times very combative as the interviewer, John Micklethwait, pushes a Wall Street ideology in alignment with the World Economic Forum. However, President Trump has already proven that his economic policies work.

President Trump stared down every WEF talking point and totally destroyed it.  This interview is brilliant and a perfect juxtaposition for Economic Nationalism vs Multinational Globalism.  President Trump tore the talking points apart.  AWESOME! 

Notice in the conversation about Tariffs, not a single word made by the “economists” on the value of the dollar and how pertinent it is in the equation.

When China and the EU devalue their currency to offset the impact of tariffs, the dollar value increases. This means it costs less dollars to import goods that come to the USA at a lower price (due to subsidies). Essentially, the diminished tariff impact is doubled.

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Jumpin’ ju-ju bones, I think we may have found Wilbur Ross’s replacement.  In this segment on CNBC Trump transition team leader Howard Lutnick, explains simple MAGAnomics to the panel.  Make this guy both Commerce Secretary and Chairman of the National Economic Council in 2025!

Starting with an explanation of his role within the Trump 2025 transition team, Lutnick then walks through the MAGAnomic principles enmeshed in President Trump’s economic policies.  Mr. Lutnick begins the policy part by outlining how energy restrictions are driving inflation through higher costs of goods. Yes. Yes and Yes.

Then Lutnick shifts to talking about tariffs and is one of the only advisors outside the 2017 team (Robert Lighthizer, Wilbur Ross) who factually references ending the insufferable “Marshal Plan.”  Again, yes, yes and YES.

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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A bonus video below.

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It was predictable [SEE HERE], and it happened exactly as predicted.

BlackRock investment firm writes the regulatory and economic policy for Joe Biden’s administration. That’s the quid-pro-quo that maintains the Biden political financial operation. All of DC know it. No one does not know. The ones who claim they do not know about it are all pretending. Republicans take the background BlackRock bribes and pretend.

BlackRock positioned massive investment assets inside Chinese auto manufacturers, MG, BYD, and Chery. The three Chinese companies are in the process of moving North American auto manufacturing to Mexico, specifically to make EVs. The Chinese EVs made in Mexico will come into the U.S market tariff free under the USMCA trade agreement. China and BlackRock will make billions.

Today, Joe Biden announced a series of tariffs against China in the EV industry. [SEE HERE] The Chinese EVs are not being made in China. The tariff regime is a farce – a total joke.

Biden might as well be announcing tariffs on Chinese swimming pools flown into the USA via hot air balloon.  There will be more Chinese swimming pools delivered from China than Chinese EVs.  The Chinese EVs come from Mexico.  The tariff is fake.

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Perhaps it’s just because the election is only a few months away, or perhaps it’s because President Trump’s trade and economic policies toward China were always the right approach for the USA.  Whatever the reasoning, the Biden administration is now proposing to use tariffs against China just like President Trump.

There’s a hidden dimension to the Chinese EV angle that makes this claim a little dubious, I will explain after the topline big story.

Overall, the New York Times is reporting [SEE HERE] that Joe Biden and USTR Katherine Tai are likely to trigger massive tariffs against imported Electric Vehicles (EVs) from China, perhaps as much as 100% due to the low cost of Chinese production.  Additionally, the Biden administration is considering increasing the tariff regime against imports of Chinese steel and aluminum in a bid to protect the American industry.

On the EV issue, this tariff approach is politically duplicitous by Biden against the backdrop of massive investment in Mexico by the three largest Chinese EV automakers. Last December the three Chinese auto manufacturers, MG, BYD, and Chery, announced they were going to spend billions building new EV manufacturing plants in Mexico.  Each Chinese auto manufacturer was going to spend between $1.5 to $2.0 billion.

Those Mexican built Chinese EV’s would pass into the USA market under current USMCA trade rules and regulations, as long as they technically meet the material origination rules.  This can make tariffs against the Chinese imported EVs a moot point, because China will be making them in Mexico (North American trade agreement).

One of the reasons President Trump said the U.S. auto industry would suffer a “bloodbath,” is specifically because the current Chinese auto companies are targeting these EV’s in the $10,000 or less range.  If you want to see what it looks like when cheap Chinese EV’s start to flood a consumer market, visit Russia – the western sanctions have only increased this flow.  I can see it clear as day.

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Having previously written about the issue of three major Chinese EV makers putting massive investment into production facilities, the remarks by President Trump in Ohio warning of a “bloodbath” in the auto industry are exactly accurate. {Background Context Here}

According to media, last December the three Chinese auto manufacturers, MG, BYD, and Chery, announced they were going to spend billions building new EV manufacturing plants in Mexico.  Each Chinese auto manufacturer was going to spend between $1.5 to $2.0 billion. The Chinese don’t make that much of an investment in something unless they are sure the U.S. government is going to force the EV market to exist.  These manufacturing plants would crush the U.S EV market.

Drawing attention to the issue, President Trump said he can stop the pending crisis. However, if he did not win the election the American auto industry would end up with a “bloodbath” of closed plants, lost jobs and diminished labor union workforce. Trump is not wrong.  WATCH: 

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Showcasing the absolute lying fake news that most American media have become, all of the news agencies reported these comments to be about general “violence, retribution and retaliation” by Trump if he lost the election.   Reuters even twisted the comments to say, “Trump predicts the end of U.S. democracy if he loses 2024 election.”

Last December, when the original reports of the big three Chinese automakers were released, the headline was, “Chinese EV giants are planning factories in Mexico, and it’s alarming US officials.”  Yet somehow, drawing attention to that exact same issue three months later is the end of democracy or something.

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Earlier today, President Donald Trump participated in a roundtable discussion with the Teamsters executive board, its president and members at the annual meeting in Washington DC.  President Trump chose to attend the conference as he continues to focus on Main Street blue collar workers who helped fuel the MAGA 2016 victory.

The blue collar MAGA coalition is expected to play a major role in the November election – particularly in Midwestern swing states like Wisconsin and Michigan.  The America First agenda delivered significant gains for U.S. manufacturing workers throughout President Trump’s first term.  At the conclusion of the meeting with Teamsters, President Trump delivered comments to the oppositional media.  [The audio improves at 01:50 of the video] WATCH:

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The disconnect between the working class and the self-proclaimed elites that rule above them is very clear in this self-admission from UAW Boss Shawn Fain.

UAW President Shawn Fain admits he endorsed Joe Biden despite the “great majority” of the UAW members who do not support him.  WATCH: 

Labor union bosses are like politicians.  They are appointed to positions of power by people they despise.  This is one of the reasons why it is important to break the cycle of abuse known as ‘battered conservative syndrome’.

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Michigan is going to be a tough contest, because Wayne County is one of the primary places where Democrat operatives manufacture ballots.  However, that said, President Trump is now leading Joe Biden by 8 points, slightly more than the estimated 5% fraudulent ballots the Democrats can create.

Additionally, according to the latest polling [SEE HERE], Joe Biden only holds a 17% approval rating in Michigan.

MICHIGAN – President Joe Biden’s support is on shaky ground in Michigan, and he trails Republican Donald Trump by 8 percentage points in a head-to-head matchup 10 months before the Nov. 5 election, according to a new statewide poll commissioned by The Detroit News and WDIV-TV (Channel 4).

[…] The survey of 600 likely general election voters in the battleground state found only 17% said Biden, the Democratic incumbent, deserved another term leading the country. That number marked a low for a major public officeholder in modern Michigan political history, said Richard Czuba, founder of Lansing-based Glengariff Group, which conducted the poll.

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