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Yahoo
04-04-2025
- Business
- Yahoo
Southeast Asia Survey Shows Increased Trust in the U.S.
A worker cleans the carpet next to national flags ahead of the ASEAN Foreign Ministers' retreat meeting at the Langkawi International Convention Centre in Malaysia on Jan. 17, 2025. Credit - Mohd Rasfan—AFP/Getty Images Southeast Asians expressed an increased level of trust in the U.S.—and more said they would align themselves with the U.S. over China if forced to choose, a reverse of last year's aggregated results—according to the latest State of Southeast Asia Survey Report by the ISEAS-Yusof Ishak Institute, a Singapore-based think tank, published Thursday. That was, however, before President Donald Trump unveiled a slate of new tariffs yesterday that hit the region hard. Experts caution that results could look different if polled today. Read More: 'Inflation Day Rather Than Liberation Day': How the World Is Reacting to Trump's Latest Tariffs The survey took place between Jan. 3 and Feb. 15, overlapping with Trump's inauguration on Jan. 20. 2,023 respondents across 11 Southeast Asian countries—the 10 ASEAN member states and Timor-Leste—were asked 'How confident are you that [the U.S./China] will 'do the right thing' for global peace, security, prosperity, and governance?' Across ASEAN countries, levels of trust in the U.S. increased from 42.4% last year to 47.2% this year, and levels of distrust decreased from 37.6% to 33.0%. While levels of trust in the U.S. decreased in the Philippines, Singapore, Thailand and Vietnam, trust in the U.S. nevertheless outweighed distrust in the U.S. in seven out of the 10 countries: Brunei, Cambodia, Laos, Myanmar, the Philippines, Thailand, and Vietnam. Singapore, Indonesia, and Malaysia were the exceptions—in all three countries, distrust in the U.S. exceeded trust. Last year, trust in the U.S. outweighed distrust in just five out of the 10 countries—Cambodia, Myanmar, the Philippines, Thailand and Vietnam. At the same time, countries' trust in China increased by 11.8 percentage points—the largest increase in trust levels of any major power—from 24.8% to 36.6% this year. Still, slightly more than half of ASEAN-10 respondents expressed more distrust than trust in China. Trust in China exceeded distrust in just four of the 10 countries—Brunei, Cambodia, Laos, and Thailand. The annual survey includes five categories of respondents: academia, think-tankers or researchers; private sector representatives; civil society, non-government organizations or media representatives; government officials; and regional or international organizations personnel. An equal 10% weighting was given to each of the 10 ASEAN member states on the basis that they each have equal say in the association's decisions. Timor-Leste, which awaits formal admission to ASEAN, was also asked to participate in the survey for the first time, although it was not included in the aggregate ASEAN scores. Respondents were asked about trust on a five point scale from 'no confidence,' 'little confidence,' 'no comment,' 'confident,' and 'very confident.' Distrust was calculated as the sum of 'no confidence' and 'little confidence,' while trust included 'confident' and 'very confident.' If ASEAN were forced to align itself with either the U.S. or China, Cambodia, Myanmar, the Philippines, Singapore, and Vietnam, or 52.3% of all ASEAN-10 respondents, favored the U.S. Last year, 50.5% of ASEAN-10 respondents, or seven out of 10 countries, polled higher in favor of China for the first time since 2019. Fewer respondents in Singapore, Thailand, and Vietnam, however, polled in favor of the U.S. this year as compared to last. Read More: Is Southeast Asia Leaning More Toward China? New Survey Shows Mixed Results The 'volatility of preferences' between China and the U.S. suggests that 'Southeast Asia is an arena for contention between Washington and Beijing despite desires 'not to choose sides' in the region,' Ja Ian Chong, associate professor of political science at the National University of Singapore and non-resident scholar with Carnegie China, tells TIME. Chong says the Biden Administration bolstered ties in Asia, which might have contributed to U.S. standing even as countries geared up for a second Trump Administration. 'There was an assumption that a second Trump administration would look broadly similar to the first one, which was not too big a departure of traditional U.S. foreign and economic policy,' Chong says, adding that several Southeast Asian economies were boosted by the relocation of firms away from China due to the trade war during the first Trump Administration. The swing from China back to the U.S. this year is also likely due to countries putting stock in the Trump Administration introducing 'restraint' on China, Sharon Seah, senior fellow and coordinator at the ISEAS-Yusof Ishak Institute's ASEAN Studies Center, tells TIME. Seah was one of the researchers behind the report. Concerns over China potentially using its economic and military power to threaten countries' interests and sovereignty has been the main reason for distrusting China. That was reflected in the relatively higher distrust of China in Vietnam and the Philippines, countries that have had direct altercations with China over the disputed South China Sea—which was billed as the region's top geopolitical concern, overtaking worries about Israel's war in Gaza, which led last year. But experts warn that the results may not reflect recent shifts in U.S. foreign policy. Surveys tend to have a 'shelf life,' Mark S. Cogan, associate professor of peace and conflict studies at Japan's Kansai Gaidai University, tells TIME. When the survey took place, 'Trump foreign policy hadn't taken root,' Cogan says. Now, 'U.S. foreign policy is in a very, very large state of flux.' Trump's freeze on foreign aid began in the middle of polling for the survey, but many of its effects in Southeast Asia were not seriously felt until the earthquake in Myanmar and Thailand on March 28, Seah tells TIME. Now, the 'real life impact on the ground' has become clear. Read More: How Myanmar's Junta—and Ongoing Civil War—Complicates the Nation's Earthquake Recovery Cogan also pointed to the gutting of demining programs in Vietnam and Cambodia that have been critical to building trust between those countries and the U.S.—trust that Cogan says has been eroded. 'The reestablishment of that relationship and the working to build trust again is going to take a very, very long time.' Southeast Asian countries were among the hardest hit by Trump's 'reciprocal' tariffs, announced on April 2. Cambodia faces a 49% levy, Laos 48%, Vietnam 46%, Myanmar 44%, and Thailand, Indonesia, Brunei, and Malaysia all face levies of more than 20%. Both Thailand and Vietnam have, during both the first and second Trump Administrations, tried leaning into their relationships with the U.S. But, Cogan says, as China has stepped up its investments in Southeast Asia and the U.S. applies punitive trade measures, more countries might wonder: 'What kind of incentive is there, but to seek greater insurance by engaging more robustly with China?' 'On one hand, there is opportunity, certainly for the United States to get involved,' says Cogan, but at the same time 'its foreign policy really says that it is retreating.' Seah, however, warns it may be too soon to tell what impact Trump's latest tariffs will have, since several countries are engaging in negotiations with the U.S. China under the leadership of President Xi Jinping is widely seen as more predictable than the U.S. under Trump, Seah tells TIME. 'Southeast Asia knows China's red lines and understands how the Chinese governance system works.' Concerns that the U.S. is 'distracted' by its internal politics and less able to engage with global issues polled as the highest reason for distrust in the power. All major powers—the U.S., China, Japan, the European Union, and India—saw an increase in trust from Southeast Asia this year. Of these, Japan remains the most trusted, and its trust level increased from 58.9% to 66.8%. The E.U. overtook the U.S. for second most trusted, while the U.S., China and India followed in that order. 'Japan has been working with ASEAN for more than 50 years,' Seah tells TIME. Japan 'gradually built up its credibility' after WWII, and 'with the passage of time, consistent engagement with the region in trade, investments, [and] people-to-people exchanges has paid off.' Cogan suggested the U.S. could learn from Japan's consistent and stable approach. 'Sometimes influence isn't found in the barrel of a gun,' he says. 'It's found through trust building, social cohesion, that kind of bonding, that reputation … that forms over decades and decades.' Contact us at letters@
Local Germany
03-04-2025
- Business
- Local Germany
'Inflation day': How Germany is responding to the latest round of US tariffs
Standing in the White House gardens on Wednesday flanked by American flags, US President Donald Trump made a statement the world had been waiting with bated breath for. Though the White House had signalled a spate of new tariffs in recent days, it was unclear who they would primarily target, and how high the slew of taxes would be. As it turned out, Trump spared few corners of the earth - including uninhabited regions of Antarctica - but reserved some of the harshest tariffs for China and the European Union. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said, adding that the highest tariffs would be imposed on "the nations that treat us badly". While a 10-percent tariff will be applied on all foreign goods, the rate for the EU will be double, at 20 percent, he announced. 'Liberation Day' Trump's Wednesday statement was the latest in a set of aggressive measures targeted at the EU and Germany. On Thursday, 25 percent tariffs on foreign cars also went into effect, with auto parts due to be hit by May 3rd - a major blow to the German car industry. He had previously announced 25-percent tariffs on steel and aluminium imports . Germany, the largest steel producer in Europe, exported a million tonnes of steel to the US last year. For both industries - and most others in Germany - the US represents the biggest and most important export market. Experts have warned that barriers to trade could lead to higher costs and the dismantling of jobs in these sectors. Advertisement In an interview with Fox News at the end of March, Trump's trade advisor Peter Navarro claimed that countries like Germany had turned the USA into "colonies". This was the yoke that the Americans had to free themselves from on the country's so-called "Liberation Day". READ ALSO: Germany's inflation falls in March but trade conflicts cloud horizon What are German politicians saying? Speaking to press on Thursday, outgoing Chancellor Olaf Scholz (SPD) described the tariffs as "fundamentally wrong". "There will only be losers," Scholz emphasised. "This is an attack on a trade order that has created prosperity all over the world, a trade order that is essentially the result of American efforts." Meanwhile, German Economics Minister Robert Habeck warned that "US tariff mania" could "drag countries into recession and cause massive harm worldwide." "For consumers in the US, the day will not be 'Liberation Day' but 'Inflation Day'," he said, referring to Trump's moniker for April 2nd. However, the Green Party politician said he supported Europe's desire to initiate talks. Greens Economics Minister Robert Habeck holds a press conference in Berlin after the announcement of sweeping tariffs on German imports to the US. Photo: picture alliance/dpa | Kay Nietfeld "We have always pushed for negotiations, not confrontation," Habeck explained. "It is therefore good that the European Commission is continuing to aim for a negotiated solution with the USA. There is still some time left." Speaking at a press conference on Thursday, the outgoing Economics Minister suggested that the EU could retaliate against the US with tariffs on tech products. "Everything is on the table," he told a press conference. "The big tech companies have an incredible dominance in Europe and are largely exempt from European taxes." READ ALSO: 'Chaos is being created' - Europe hits out at Trump's tariffs What are key industries saying? Much like the previous tariff announcements, Trump's latest trade blow has sparked anger and bewilderment within the business community. Leading industry federation BDI said the taxes were "an unprecedented attack on the international world trade system, free trade and global supply chains". "The justification for this protectionist escalation is not comprehensible," said Wolfgang Niedermark, a member of the group's executive board. "It threatens our export-oriented companies and endangers prosperity, stability, jobs, innovation and investments worldwide." Advertisement Leaders from Germany's struggling auto industry were also quick to speak out on Thursday. READ ALSO: How will Trump's car tariffs impact Germany? The latest tariffs will "only create losers", the German auto association (VDA) said in a statement. "The EU is now called upon to act together and with necessary force, while continuing to signal its willingness to negotiate." Pointing to the effects of the new taxes, the auto lobby said it would be a "considerable burden and challenge" for the global car industry and affect job prospects and unemployment. A general view of the entrance of the commercial vehicle plant of German car manufacturer Volkswagen (VW). Photo: Ronny Hartmann / AFP) However, the German chemicals industry - which relies heavily on exports to the US - took a softer line, urging the EU "keep a cool head" and warning that "a spiral of escalation would only increase the damage". "We regret the decision of the US government," the Association of the German Chemical Industry (VCI) said in a statement, adding that the EU must "remain flexible in its response" to the tariffs. "Our country must not become a pawn in an escalating trade war," the association said. "The goal must be a mutually fair solution -- for Europe and the US. The United States is and remains a central trading partner for Germany." Advertisement What is the media saying? In the hours after Trump's announcements, commentators in the German media lined up to tear apart the tariffs. "Instead of free trade, America is now focussing on tough protectionism, and this U-turn has the potential to plunge the global economy into severe turbulence," seethed Karl Doemens in the RND. Writing in the Morgenpost, Peter DeThier noted the fact that, in alienating key partners, "the president has remained true to his convictions". "As is so often the case, however, he is not thinking about the consequences and is not prepared to listen to his most competent advisors," DeThier added. "This could now have serious consequences, both for the USA and for Europe and the global economy." US President Donald Trump delivers remarks on reciprocal tariffs as US Secretary of Commerce Howard Lutnick holds a chart during an event in the Rose Garden entitled "Make America Wealthy Again" at the White House in Washington, DC, on April 2nd, 2025. Photo: Brendan Smialowski / AFP Meanwhile, financial newspaper Handelsblatt slammed the "completely abstruse arguments" Trump has used to justify his tariffs, adding: "The USA's trading partners aren't using the country - quite the opposite." According to Fabian Fellmann in the Süddeutsche Zeitung , Trump's motivation is simple: "He wants to cause as much chaos as possible." "He acts like a mixture of solo entertainer and autocrat, imposing tariffs based on emergency legislation, circulating different variants for days before committing himself at the last minute," Fellmann wrote in an op-ed on Thursday morning. "He considers it a sign of strength to be able to unsettle everyone else." READ ALSO: What do Trump's steel and aluminium tariffs mean for Germany? Advertisement As Fellmann points out, the president's move effectively ends the era of free global trade as we knew it, pushing US tariffs up to a level not seen since the 1930s. "Trump said on Wednesday that the tariffs at the time had been a success," he wrote. "In reality, the USA exacerbated its recession and choked off international trade, other countries imposed counter-tariffs and the global economic crisis took its course. "This was followed by the Second World War."
Yahoo
03-04-2025
- Business
- Yahoo
Germany slams Trump tariffs, US tech titans in crosshairs
German Chancellor Olaf Scholz on Thursday slammed sweeping new US tariffs as "fundamentally wrong" as Berlin warned that the European Union could retaliate by targeting American tech titans. "This is an attack on a trade order that has created prosperity all over the globe, a trade order that is essentially the result of American efforts," Scholz said, a day after US President Donald Trump unveiled the wide-ranging duties on friends and foes alike. Echoing comments by the EU chief, Scholz said "we are ready for talks with the American government" to find a solution but stressed that Europe would "respond decisively, strongly and appropriately" if negotiations fail. Economy Minister Robert Habeck suggested that the bloc could go after American tech titans by hitting them with a tax, insisting that "everything is on the table" as the EU mulls its response. "The big tech companies have an incredible dominance in Europe and are largely exempt from European taxes," he told a press conference. France earlier said the EU plans to "attack online services" in response to the tariffs. Germany, Europe's biggest economy, stands to be hit hard by the tariffs as the United States is its top export destination, and its companies ship huge quantities of goods, from cars to chemicals, to the world's top economy. - Germany under pressure - Habeck warned that "US tariff mania" could "drag countries into recession and cause massive harm worldwide. With dire consequences for many people." "For consumers in the US, the day will not be 'Liberation Day' but 'Inflation Day'," he said, referring to the term Trump used to describe the new duties. Germany's top business groups also lined up to denounce the new duties, which come on top of other recently announced US tariffs. The tariffs were "an unprecedented attack on the international world trade system, free trade and global supply chains", said leading industry federation BDI. "The justification for this protectionist escalation is not comprehensible," said Wolfgang Niedermark, a member of the group's executive board. "It threatens our export-oriented companies and endangers prosperity, stability, jobs, innovation and investments worldwide." US duties of 25 percent on imported cars also took effect Thursday, a huge blow for German titans like Volkswagen, Mercedes and BMW, for whom the United States is a major export market. Germany's main auto industry group, the VDA, urged the EU to respond to the tariffs with "necessary force, while continuing to signal its willingness to negotiate". sr/fz/lth
New York Times
03-04-2025
- Automotive
- New York Times
Trump's Tariffs Pose a New Threat for Germany's Stagnant Economy
Germany had hoped that a new government would revive its stagnant economy, but President Trump's sweeping new tariffs are stoking worries that Europe's biggest economy will fall short of its 0.3 percent growth expectations this year. Jörg Kukies, Germany's finance minister, met with the U.S. Treasury secretary, Scott Bessent, and U.S. trade representatives in Washington last week, and said on Thursday that the country remained hopeful that Europe would be able to reach a deal with Washington. But he added that negotiations alone would not be enough. 'We do need a strong reaction,' Mr. Kukies told the BBC. 'It would be naïve to think that if we just sit there and let this happen, things will get better.' He said that he believed Washington was expecting the European Union to respond, but called for it to be in 'a measured and constructive way.' Mr. Trump imposed a 20 percent tariff on European Union goods, and a 25 percent levy on cars and automotive parts. But Monika Schnitzer, a professor of economics at the Ludwig-Maximilians University of Munich who is an adviser to the German government, said the uncertainty created by Mr. Trump's policies, which can be announced or rescinded on a moment's notice with little explanation, made the situation even worse. 'Companies can adjust to tariffs, but not to threats that change by the hour,' she said. 'That damages the economy.' German carmakers were already bracing for the effects of the 25 percent tariffs that Mr. Trump announced last week and that go into effect on Thursday. Automaking is Germany's largest industry, and the United States is its most important export destination. Analysts at Bernstein, a financial research firm, have predicted that the new measures would cost Volkswagen, BMW and Mercedes-Benz, the country's three leading automakers, $11 billion overall. The auto companies have assembly plants in the United States but they will not be immune from the tariffs because most vehicles are assembled with parts that come from a patchwork of countries. In recent weeks, sales for BMW and Volkswagen have jumped in the United States, as consumers scramble to get ahead of expected price increases caused by Mr. Trump's new tariffs. Calling the sweeping tariffs 'a frontal attack on world trade,' Dirk Jandura, president of the German trade association BGA, urged the European Union to swiftly enact counter-tariffs in an effort to end the trade dispute. Mr. Jandura also urged Germany's export-dependent industries to rethink their business model. 'This is also a wake-up call for us: We have to become more competitive ourselves,' Mr. Jandura said. But German officials warned that the trade war would ultimately hurt Americans more than the targets of the tariffs. 'For consumers in the U.S., the day will not be Liberation Day, but Inflation Day,' Robert Habeck, Germany's economy minister, told reporters.
Yahoo
01-04-2025
- Business
- Yahoo
Tariffs weigh heavy on Detroit Chamber's State of the Region as Trump pledges additional levies
Democratic former Gov. James Blanchard, a former U.S. Ambassador to Canada, slammed President Donald Trump's approach to foreign relations with the U.S.'s northern neighbor during the Detroit Regional Chamber's State of the Region presentation on April 1, 2025. | Screenshot While the Detroit Regional Chamber celebrated a resilient economy, low unemployment and a prosperous business environment in the region, President Donald Trump's trade policies cast a cloud over the state's future as business and political leaders warned that a trade war with Canada could bring particular harm to metro Detroit. Arguing Canada has not done its part in combating the flow of migrants and fentanyl into the United States, Trump has levied a 25% additional tariff on goods from the nation's northern neighbor, with a lower 10% tariff on energy resources from Canada. Trump has also ordered a 25% tariff on all Canadian steel and aluminum imports and a 25% tariff on imported cars and light trucks, which economists have said could reduce 2025 US auto sales by 700,000 vehicles. Canada has responded by levying tariffs of its own on more than $30 billion in U.S. goods including orange juice, peanut butter, wine, spirits, beer, coffee, appliances and more. It has also imposed a 25% reciprocal tariff on $12.6 billion worth of U.S. steel products, $3 billion in aluminum products, and $14.2 billion in additional goods including tools, computers and servers, display monitors, sport equipment and cast-iron products. While the Canadian government has said all options are on the table should the U.S. continue to impose tariffs, Trump has labeled Wednesday, April 2, 'Liberation Day' with plans to announce massive tariffs in an effort to fulfill his administration's economic promises, although the details of his plans still remain unclear. Addressing members of the chamber and their guests on Tuesday, James Blanchard, a former Democratic governor of Michigan who served as the ambassador to Canada from 1993 to 1996, pointed to the benefits of the centuries-long alliance between the U.S. and its neighbor to the north, noting the two countries have held an integrated economy in the automotive, energy, agriculture and national security sectors for years. With many economists predicting a recession and Ford CEO Jim Farley warning a 25% tariff on autos would 'blow a hole' in the U.S. auto industry, Blanchard warned further tariffs could bring serious harm to businesses and consumers. 'I'm not an economist. I'm not an astrologist. All I know is Liberation Day could become Inflation Day if we don't watch it. And that's serious,' Blanchard said. From allying together in World War I and II, the Korean War and the War in Afghanistan, serving as founding members of the United Nations and NATO, as well as partners in NORAD, holding integrated economies and partnering on issues pertinent to the Great Lakes, Blanchard said there is 'no good reason' to label Canada a national security threat or trade villain or to suggest it should become the 51st state, in reference to remarks from Trump suggesting Canada would be better off as part of the U.S. Additionally, Blanchard claimed more migrants have been heading north into Canada than south into the U.S., challenging the President's rationale for initiating a trade war with what has long been regarded as one of its closest allies. According to the Canadian government, the country has experienced an influx of individuals crossing between official ports of entry, though it has not publicly released statistics on the number of irregular border crossings since the beginning of 2025. Blanchard also noted that fentanyl coming from Canada represented less than 1% of fentanyl seizures nationwide. The former ambassador later noted that Canada was the largest importer of American goods, pointing to energy imports as the cause of the U.S.'s trade deficit with Canada. 'We want that. Michigan uses that. We need that on any given day, natural gas which heats the homes and businesses in this town is probably natural gas from Canada, either shipped directly or back from Ontario,' Blanchard said, He once again challenged Trump, noting the country is already leading the globe in oil production, countering the president's argument that the country is facing an energy crisis. Throughout his speech Blanchard called on Michiganders to show their appreciation for their friends and family members in Canada, pointing to the opening of the new Gordie Howe International Bridge between Detroit and Windsor planned for this Fall as an opportunity to celebrate the nation's friendship. 'Let's celebrate that as we move forward, and let's make sure no one distorts the truth about how fabulous this relationship is,' he said. While the Detroit Regional Chamber's 2025 State of the Region report showed strong economic growth, job growth, growth in commercial real estate market as well as strong activity in venture capital, the chamber's President and CEO Sandy Baruah warned that region was particularly susceptible to the impacts of Trump's trade policy, with its report noting that 234,000 jobs in the Detroit Region rely on trade and investment with Canada. 'In just, you know, literally two or three months, we've seen one of the biggest drops in nationwide CEO confidence we've ever seen and Michigan is at a disproportionate risk with some of the changes that we are seeing potentially at the federal level, everything from changes in [electric vehicle] policy, electrification, infrastructure and certainly tariffs,' Baruah said. 'We're an automotive state. Our supply chains are completely integrated. There is no other state in the nation that has a more integrated supply chain than with the nation of Canada, than Michigan, particularly around automotive and manufacturing,' Baruah said. While Blanchard highlighted the U.S.'s personal ties to Canada, Baruah further emphasized the economic ties, noting that one in eight residents of the Detroit Region workers hold ties to Canada in addition to 650 Canadian companies with major footprints in Michigan. According to a poll conducted by the Lansing-based Glengariff group in partnership with the Chamber, Baruah said nearly 70% of Michigan voters believed Canada is an economic friend of the U.S., while a majority understand that tariffs on Canadian goods will hurt Michigan's economy. Following Baruah's breakdown of the chamber's economic report, lawyer and International Trade expert Aida Dismondy joined Blanchard and Baruah alongside Consul General of Canada in Detroit Colin Bird for a discussion moderated by Devin Scillian, a longtime journalist who retired from WDIV-TV 4 in December. The panelists severely criticized Trump's actions against Canada, with Bird noting that 70% of exports from Canada into the U.S. are further input into manufacturing. 'What that speaks to is what we do in this region of highly integrated trade… that's what makes it really valuable for me as a Canadian diplomat here in Michigan to know that this is not a Michigan policy. This is a made in Washington problem, and we need to be working together across this border to protect this region together,' Bird said. Dismondy echoed Blanchard's earlier remarks about friends in Canada, noting that she had told her clients their suppliers are their best allies at the moment. 'In a time when the federal government has let us down from a trade policy perspective, it is this time when going back to [the] Governor's remarks, not only to just call our friends, but our business partners and come together as a united front, because it is through business partners that we will continue these relationships at a time when chaos and insecurity or uncertainty is looming large,' Dismondy said. On Friday, Baruah, alongside Glenn Stevens Jr., the executive director of MichAuto, which advocates for the state's automotive and mobility sector, sent a letter to the U.S. Secretary of Treasury, the U.S. Secretary of Commerce, the U.S. Trade Representative and the state's congressional delegation, asking them to continue a pause on applying tariffs to auto parts that comply with the United States–Mexico–Canada trade agreement and advising against levying tariffs on vehicles produced outside of Mexico and Canada as well as parts produced outside North America. When asked to expand on this letter, Baruah told Scillian he could not see the end game of these policies. 'When I talk to people who are close to the president, people who are in the administration, Republican members of Congress, etc, etc. And they kind of give us the talking points. They say 'Well, you know, there's going to be short term pain, you know, but it's, you know, we're going to bring, you know, we're going to bring manufacturing back here,'' Baruah said. 'Tell me how that's going to happen in a political cycle, because, you know, best case scenario, it takes three, four years to build an automotive plant, it takes about that same amount of time, if you're lucky, to build an aluminum plant, right? So how does, frankly, the Trump administration, from a political standpoint, withstand the unemployment that's going to happen, the slowdown in the economy,' Baruah asked, warning that tariffs could lead to rising prices due to tariffs and high unemployment as industries slow down. Bird later noted that the U.S.'s actions toward Canada had spurred the country into conversations with other trade partners as other countries also expect to face U.S. tariffs. 'How do we reimagine some trading arrangements that, frankly, we have not put enough effort into because this has been such an easy, effective relationship that we've had with the United States. So it's forcing us to be more creative, and it's uniting Canadians in a way that I've never seen, and makes me proud,' Bird said. Dismondy, Blanchard and Baruah further stressed the importance of allies as the U.S. works to protect itself from economic threats alongside threats to national security, focusing on Russia and China. 'The only way, given China's frankly, very strong competitive advantages, to combat the Chinese economic and national security threats is to do it together,' Baruah said. However, there is some good news, Blanchard said, pointing to Trump's nominee for ambassador to Canada, Pete Hoekstra, the former chair of the Michigan Republican Party, who served as ambassador to the Netherlands under Trump's first administration as well as a U.S. Representative from 1993 to 2011. 'He is eminently qualified to be ambassador to Canada or just about anywhere. He does have the ear of President Trump. I've spoken with him. I said, 'You got a big job, but you're up to it, Pete.' So I think he will be helpful to a reasonable degree, and I think that's good for Michigan and good for our country,' Blanchard said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
