LARRY KUDLOW: Trump tells Mexico and Canada – America First!

Published On Jan 31, 2025, 6:11 PM

Larry Kudlow discusses President Trump's declaration of 'America First' in relation to trade policies with Mexico and Canada. Trump is planning to implement high tariffs (25% on Mexico and Canada) ostensibly to address national security concerns, particularly aimed at curbing drug trafficking and illegal crossings. Kudlow argues that these tariffs won't lead to significant inflation and might even protect U.S. economic interests by reducing foreign competition. He also mentions the complexity of trade deficits and their implications on various goods including oil. Kudlow suggests that while tariffs may initially disrupt markets, they are intended as a tool for broader national security and economic control.

Stock Forecasts

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Given Trump's proposed tariffs on Mexico and Canada, there is potential volatility for industries reliant on imports from these countries. The oil sector, particularly companies that deal with Canadian imports, may see a negative impact due to price adjustments stemming from tariffs. Investors in energy stocks and related ETFs should monitor developments closely.

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