Cabot Phillips

That's in addition to those already in place. Now, typically tariffs must be approved by Congress, but the president can unilaterally impose them in certain instances, including those involving national security. And that is likely the route he'll go. Yeah, tell us about his reasoning there.

That's in addition to those already in place. Now, typically tariffs must be approved by Congress, but the president can unilaterally impose them in certain instances, including those involving national security. And that is likely the route he'll go. Yeah, tell us about his reasoning there.

So according to Trump, these tariffs are meant to force Canada and Mexico to prevent the flow of illegal immigrants and drugs through their countries into ours. Remember, the Mexican government in particular has really actively helped facilitate the flow of Central and South American migrants to America, going as far as offering bus rides from their own border in the South to the U.S.

So according to Trump, these tariffs are meant to force Canada and Mexico to prevent the flow of illegal immigrants and drugs through their countries into ours. Remember, the Mexican government in particular has really actively helped facilitate the flow of Central and South American migrants to America, going as far as offering bus rides from their own border in the South to the U.S.

border in the North. Those trips even include free meals and security along the way. In Trump's words, quote, We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price. So the tariffs can be removed if the two countries crack down on drugs and illegal immigrants, but they'll pay a heavy price until then.

border in the North. Those trips even include free meals and security along the way. In Trump's words, quote, We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price. So the tariffs can be removed if the two countries crack down on drugs and illegal immigrants, but they'll pay a heavy price until then.

To that point, the Canadian dollar and Mexican peso already tumbled when markets opened yesterday morning.

To that point, the Canadian dollar and Mexican peso already tumbled when markets opened yesterday morning.

Well, the announcement drew a mixed response in Canada. Some leaders there expressed immediate outrage, vowing to respond with tariffs of their own and bristling at the accusation that they were facilitating illegal immigration.

Well, the announcement drew a mixed response in Canada. Some leaders there expressed immediate outrage, vowing to respond with tariffs of their own and bristling at the accusation that they were facilitating illegal immigration.

Premier Doug Ford of Ontario, for example, said, quote, "...to compare us to Mexico is the most insulting thing I've ever heard from our friends and closest allies, the United States." But others there have taken a slightly more deferential approach.

Premier Doug Ford of Ontario, for example, said, quote, "...to compare us to Mexico is the most insulting thing I've ever heard from our friends and closest allies, the United States." But others there have taken a slightly more deferential approach.

Canada's Deputy Prime Minister and Public Safety Minister released a joint statement this week saying border security is their top priority and stressing that they would work with the U.S. to, quote, disrupt the scourge of fentanyl coming from China. And then Prime Minister Justin Trudeau expressed optimism after a call with President Trump.

Canada's Deputy Prime Minister and Public Safety Minister released a joint statement this week saying border security is their top priority and stressing that they would work with the U.S. to, quote, disrupt the scourge of fentanyl coming from China. And then Prime Minister Justin Trudeau expressed optimism after a call with President Trump.

For their part, Mexico has taken a much more combative approach. The country's new far-left president, Claudia Scheinbaum, essentially blamed America for the border crisis, saying drugs were a, quote, problem of public health and consumption in America's society. She added that while she is open to negotiations with Trump, Mexico is ready to implement tariffs of their own in response.

For their part, Mexico has taken a much more combative approach. The country's new far-left president, Claudia Scheinbaum, essentially blamed America for the border crisis, saying drugs were a, quote, problem of public health and consumption in America's society. She added that while she is open to negotiations with Trump, Mexico is ready to implement tariffs of their own in response.

Now, obviously, the U.S. is in a much stronger position to negotiate, but things could get messy with our neighbors to the south. Trump, however, says he will do whatever it takes to force them to crack down on the border crisis.

Now, obviously, the U.S. is in a much stronger position to negotiate, but things could get messy with our neighbors to the south. Trump, however, says he will do whatever it takes to force them to crack down on the border crisis.

Well, it's interesting. In recent decades, Democrats have been more pro-tariff and Republicans were the ones against them. But in the age of Trump, we have seen a flip. Most Democrats have come out in opposition to Trump's plan, saying it will result in higher prices on everything from produce to aluminum and steel.

Well, it's interesting. In recent decades, Democrats have been more pro-tariff and Republicans were the ones against them. But in the age of Trump, we have seen a flip. Most Democrats have come out in opposition to Trump's plan, saying it will result in higher prices on everything from produce to aluminum and steel.