Trump’s Tariffs on Canada, Mexico and China to Go Into Effect Saturday
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January 31, 2025
TLDR: Tariffs against Canada, Mexico, and China will start on Saturday according to The White House. WSJ trade and economic policy reporter Gavin Bade discusses potential impacts. Weak loan growth is a concern for regional banks, with insights from WSJ Heard on the Street writer Telis Demos. There's also an update on the deadly aircraft collision in Washington, D.C., hosted by Alex Ossola.

In the latest episode of the PM Edition podcast from The Wall Street Journal, host Alex Ossola delves into President Trump's imminent tariffs set to impact major US trading partners, including Canada, Mexico, and China. The discussion covers the broader economic implications, regional banking concerns, and updates on a tragic aircraft collision in Washington, D.C. Here's a breakdown of the key insights from the episode.
President Trump's Tariffs
Tariff Announcement
- President Trump's new tariffs, 25% on Mexico and Canada and 10% on China, are set to take effect without any grace period.
- These tariffs are primarily in response to the illegal distribution of fentanyl, which has significantly contributed to opioid-related deaths in the U.S.
Immediate Economic Impact
- Gavin Bade, a WSJ trade and economic policy reporter, highlights several immediate consequences, including:
- A potential downturn in the stock market, with significant movements expected in industries reliant on cross-border supply chains.
- Scrambling by industries to understand the impact and compliance requirements of these tariffs.
Industry Variations
- Industries that utilize parts across borders, such as automotive, will likely face complications. The oil and gas sector might also see varying impacts based on potential exemptions.
- Concerns about the legal authority of imposing such tariffs under emergency law are raised, suggesting that industries could face significant operational challenges.
Consumer Effects
- Although some consumers may not feel the impact immediately due to stocking initiatives, long-term price increases are anticipated if the tariffs remain in place.
- This tariff implementation marks a larger economic shift than previous actions taken in Trump’s first term, likely influencing consumer prices significantly if no exemptions are granted.
Weak Loan Growth and Regional Bank Challenges
Banking Sector Overview
- Following recent earnings reports, Telis Demos from WSJ discusses weak loan growth concerns for regional banks. Although overall profits are up, lending activity is not keeping pace:
- Loan growth across U.S. commercial banks is only at 2.7%, indicating a significant decline from previous years.
- Higher interest rates deter companies from borrowing, which could lead to regional banks facing tougher conditions.
Implications for Regional Banks
- Regional banks are more reliant on lending compared to larger global banks, making them vulnerable to the slowdown in loan activity:
- Commercial real estate lending, a crucial income source for many regional banks, is particularly sluggish.
- Moving forward, the outlook for regional banks appears dire unless loan growth improves, with potential implications for stock performance.
Updates on Aircraft Collision in D.C.
- The podcast also reports on a tragic aircraft collision in Washington, D.C.,
- At least 41 bodies have been recovered, but 26 victims remain unaccounted for.
- Investigators are analyzing flight data and the equipment used by the helicopter to ascertain if operational limitations affected the incident.
Conclusion
The podcast provides a crucial overview of impending economic shifts due to President Trump's tariffs, the challenges faced by regional banks amid slow loan growth, and serious ongoing investigations into an aviation tragedy. With tariffs set to reshape cross-border trade dynamics and financial institutions grappling with their business models, the insights from this episode underscore significant developments in both the trade and banking sectors.
Listeners can glean valuable information about how these issues could affect them as consumers and investors in future economic conditions.
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