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Trump warns of new tariffs against Canada, Mexico, EU. And maybe Denmark, too.

8 3
08.01.2025

President-elect Donald Trump on Tuesday repeated his threat to impose tariffs on hundreds of billions of dollars worth of goods from Mexico and Canada to pressure both countries to stop the flow of illegal immigration and cross-border fentanyl shipments.

“We're going to put very serious tariffs on Mexico and Canada,” Trump said during a press conference at his Mar-a-Lago resort, a little less than two weeks before he is sworn into office for a second term as president.

Trump also raised the U.S. trade deficit with Canada, complaining that, "they make 20 percent of our cars. We don't need that. I'd rather make them in Detroit."

“We don’t need anything they have,” he continued, singling out other key Canadian exports to the U.S., such as lumber and dairy.

The president-elect made similar complaints about the trade relationship with the European Union. "We have a trade deficit of $350 billion. They don't take our cars, they don't take our farm product, they don't take anything. And so we're not going to have it with them, either," he said later in his remarks.

Top Canadian officials traveled down to Mar-a-Lago shortly after Christmas for discussion with Trump’s nominees to head the Commerce Department, Howard Lutnick, and the Interior Department, Doug Burgum.

That followed a dinner between Trump and outgoing Canadian Prime Minister Justin Trudeau in November, not long after Trump first made his tariff threat.

Trump’s proposed tariffs could hit more than $900 billion worth of goods from the two countries, including huge volumes of autos, auto parts and energy products. The two countries account for nearly one-third of U.S. goods imports, which totaled about $3.1 trillion last year.

Trump has joked — seemingly — about making Canada a 51st state. In response to a question, he ruled out doing that by military force, but he did suggest the possibility of using economic pressure to accomplish that outcome.

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He did not, however, rule out the use of force in trying to claim Greenland, an autonomous territory of Denmark, claiming it was in the United States' national security interests to try and make the Arctic island a part of the country. Trump's son, Donald Trump Jr., is currently in Greenland on a "private visit."

The president-elect also threatened to “tariff Denmark at a very high level” if it does not cooperate with his bid to purchase the island. “People really don’t even know if Denmark has any legal right to it, but if they do, they should give it up, because we need it for national security,” Trump said.

Trump's proposed duties would violate commitments under the U.S.-Mexico-Canada Agreement that was negotiated during his first term, although he could possibly justify the move under the agreement’s national security exception.

Trump has not specified how he plans to impose the new duties, although many have expected him to rely heavily on the International Emergency Economic Powers Act to carry out many of his campaign tariff threats. That law gives the president broad authority to regulate U.S. commerce after declaring a national emergency.

Ari Hawkins contributed to this report.

Republicans on the Senate Intelligence Committee are racing to schedule confirmation hearings next week for Tulsi Gabbard and John Ratcliffe — though panel Democrats and winter weather are complicating those plans.

Sen. Tom Cotton, the new chair of the committee, wants to convene hearings for President-elect Donald Trump’s two top spy picks before his inauguration on Jan. 20, his spokesperson, Patrick McCann, said in a statement Tuesday.

Trump has nominated Ratcliffe to be head of the CIA and Gabbard as Director of National Intelligence.

“The Intelligence Committee, the nominees, and the transition are diligently working toward that goal,” McCann said.

But reaching that goal might be a challenge.

Committee rules stipulate that vetting paperwork for the nominees must be received by the panel at least one week before the confirmation hearings. But snow and office closures at the Office of Governmental Ethics have slowed civil servants from processing some of the necessary vetting paperwork for the two candidates.

Panel Democrats are unwilling to waive those rules in order to make an exception for the two candidates, a person familiar with the confirmation process told POLITICO. Gabbard’s nomination has drawn sharp scrutiny for her lack of intelligence experience, sympathetic comments about Russia and for once taking a secret trip to meet with Syrian dictator Bashar Al-Assad.

The committee has not yet received Gabbard’s pre-hearing questionnaire, her ethics disclosure or FBI background check, the person said.

Some of that paperwork wasn’t due until Thursday.

Alexa Henning, a spokesperson for Gabbard in the confirmation, said they are “working in lockstep” with Cotton to wrap the hearing before inauguration day.

Ratcliffe, a former member of Congress from Texas who served as DNI during Trump’s first term, is “hopeful his hearing will happen next week,” said a person familiar working on his confirmation who spoke on condition of anonymity to discuss the process.

Cotton could seek a full committee vote to override the vetting rules. But it would be a tight vote on the narrowly divided committee — which has nine Republicans and eight Democrats — and one that could cast a harsh spotlight on GOP lawmakers wary about one of Trump’s picks.

The panel would still be on track to hold the confirmation hearings late next week if the vetting documents for the nominees come through in the next three days.

The incoming Trump administration plans to offer an expansion of the state and local tax deduction to Republican lawmakers from New York, New Jersey and California who are heading to Mar-a-Lago on Saturday for a sit-down with the president-elect.

While exact details weren't available, one proposal being discussed would allow married couples to deduct $20,000 of their state and local taxes from their federal income taxes. Under current law, married couples can deduct only $10,000, which is the same for single taxpayers.

In return, the so-called SALT Republicans will be expected to fall in line behind a sweeping tax bill the GOP hopes to enact later this year, two sources familiar with the new administration’s thinking told POLITICO, who were granted anonymity to discuss the internal strategizing.

The lawmakers — who represent politically competitive, high-tax districts where constituents have been dinged by the SALT cap — haven't ruled out pushing for other changes, though.

The talks will be just one part of a broader set of discussions President-elect Donald Trump plans to hold in Florida this weekend that will also include members of the House Freedom Caucus and the chairs of important House committees.

However, the outcome of the conversations with SALT Republicans promises to be particularly important for the GOP’s plans to pass an extension of expiring provisions of the tax cuts enacted during Trump's first administration.

Members of the coalition stalled tax legislation in the 118th Congress several times over their demands for SALT relief, which is otherwise widely unpopular in the Republican conference. And, in the GOP’s slim two-seat majority, the group now wields tremendous leverage again — and House leadership knows it.

The issue “will definitely come up. I think that’s a big sticking point for the members that will be there,” said Rep. Nicole Malliotakis (R-N.Y.), who is part of the SALT caucus and also a member of the tax-writing House Ways and Means Committee.

Malliotakis said that New York Republicans would be meeting on Wednesday to go over their strategy ahead of the meetings in Florida.

“We’re going to go over the impact SALT has had in each of our districts, how many people take SALT versus the standard deduction, what are the income levels that are affected,” said Malliotakis.

Rep. Mike Lawler (R-N.Y.) confirmed to POLITICO on Tuesday that he would also be part of the group of lawmakers making the pilgrimage to Mar-a-Lago.

We’re going to “have broad discussions but obviously SALT will be part of it,” Lawler said.

It’s possible that the group will push for something more than doubling the deduction for married couples, which the lawmakers call a "marriage penalty." The New Yorkers are quick to point out that Trump himself pledged at a campaign rally in Long Island to expand SALT relief — and that the blue districts they represent are some of the most competitive in the country.

Former New York Republican Rep. Marc Molinaro, who lost his reelection last year, told POLITICO in December that voters might have returned him to Congress if Republicans had achieved something on SALT.

“I think the logical way to do it is to, at a minimum, double it and get rid of the marriage penalty elements of it,” said Molinaro. “What I would say is that’s the floor, I think, from a constituent’s perspective, from a voter’s perspective.”

Malliotakis said that changes in the alternative minimum taxes for upper-income taxpayers, which would further erode the value of the SALT deduction and were repealed in 2017, "cannot come back."

"That's a red line for me," she said.

House Ways and Means Chair Jason Smith (R-Mo.), who will lead the charge on tax policies this year, has acknowledged Trump's desire to address the SALT cap. Yet, Smith has also asserted that Republicans cannot fully repeal the limit, which they put in place in 2017 to help pay for their Tax Cuts and Jobs Act in 2017.

The non-partisan Committee for a Responsible Federal Budget estimated in 2021 that a full repeal of the cap would cost $900 billion.

“That’s how [Trump] does things differently,” Smith told POLITICO, referring to the meetings........

© Politico