Sunday Snapshot: Trump's tariff toolkit
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Donald Trump holds a Channellock Inc. wrench during a White House meeting in July of 2017. Photo: Michael Reynolds/Pool via Bloomberg
The White House won't switch ownership for weeks, but President-elect Trump is already dancing the tariff tango.
His announcement of a 25% tariff on all imports from Canada and Mexico sent a shiver through markets last week.
- Republicans painted the threat as Trump exercising leverage in negotiations with foreign officials. But Democrats and some experts warn of tariff-induced price hikes, retaliatory measures and inflation should the proposal become reality.
Here's what you may have missed when newsmakers hit the airwaves this Sunday, December 1.
1. Ted Cruz's tariff teeter-totter
"A tariff is a tax on you, the American people," Sen. Ted Cruz (R-Texas) said on a 2016 debate stage, warning that his then-opponent Trump's proposed tariffs would hurt consumers and prompt retaliatory taxes from abroad.
- Trump replied that the proposed 45% tariff in question was a threat, "not a tax."
- But Cruz shot back: "It's not China that pays the tax, it's you, the working men and women."
The latest: Fast forward to Sunday when Cruz changed his tune as Trump 2.0 looms large.
- Asked by CBS News' Major Garrett, who noted Cruz's former skepticism of tariffs, if the economics around the trade tool have changed, the Texas Republican replied, "I tell you what hasn't changed is the importance of leverage."
- He continued, "The threat of tariffs against Mexico and Canada immediately has produced action."
The big picture: Trump's recent tariff proposals, some anticipate, are negotiating tactics. Simply put: Just because he's posting it, doesn't mean he's going to do it.
- Trump tied the looming tariffs to specific changes he wants to see, writing on Truth Social, "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!"
Zoom in: Pressed by Garrett over whether he views Trump's tariffs as a real economic possibility or just as diplomatic pressure, Cruz pointed to Trump's prior threats of tariffs on Mexico and said they left Mexico's president "scared and concerned."
Zoom out: Sen. Bill Hagerty (R-Tenn.) seemed to share Cruz's vision, saying on NBC's "Meet the Press" Sunday, "We need to take a very hard look at countries that don't have our best interests at heart, countries that are allowing our borders to be violated, and use those tariffs as a tool to achieve our ends."
- Asked by Kristen Welker if he feared a trade war, Hagerty replied, "What it needs to lead to is a correction of the behavior that's taking place right now, that is letting fentanyl flood into our border, that is allowing people to flood into our country ... It needs to stop, and President Trump is going to use every lever at his disposal to do it."
Sen. Mike Rounds (R-S.D.) noted on ABC's "This Week," "by suggesting these tariffs right now, he's going to get the attention of the leaders in the other countries."
Reality check: All of this is not to say Trump didn't impose tariffs during his first term — he did, and President Biden kept many.
The other side: Sen. Chris Murphy (D-Conn.) argued on "Meet the Press" that Trump's and Biden's tariff policies had different results, contending Trump "has no idea how to use tariffs in order to create American jobs" while Biden used them "the right way" with coordinated subsidy and restriction policies.
- If tariffs are "not used properly," he said, they "are just going to raise costs on ordinary Americans while the billionaires get off scot-free."
2. Jake Sullivan brushes off retribution risk
National Security Adviser Jake Sullivan has two major international conflicts and a presidential transition on his plate and said Sunday he can't spend "time worrying about other things."
Yes, but: Trump's pick for FBI director, Kash Patel, seemingly has his eye on Sullivan, whom he named as a member of the "deep state" in his book, "Government Gangsters: The Deep State, the Truth, and the Battle for Our Democracy."
- In promotional materials for the book, Trump is quoted as saying he will "use this blueprint to help us take back the White House and remove these Gangsters from all of Government!"
Driving the news: "I wake up every day to try to defend this country and protect the national interest," Sullivan said on CNN's "State of the Union" when asked if he feared personal retribution.
- "I've got 50 days left — I'm going to stay totally focused," he continued.
- Also asked about his placement on Patel's list of bad actors in the federal bureaucracy on ABC's "This Week," Sullivan replied, "I can't worry about after January 20. I have to worry about until January 20."
3. Murphy calls some Trump picks out of touch
Sen. Chris Murphy (D-Conn.) listed his concerns about many of Trump's Cabinet picks Sunday, saying on "Meet the Press" that the appointees "don't understand what regular people are going through."
The big picture: Murphy said he worries Trump has put "the billionaire class in charge of the American government" by filling key Cabinet roles with wealthy allies.
What they're saying: "That is what the story of this Cabinet is, is Donald Trump and the billionaire class taking over government to enrich themselves and screw everybody else in this country," he said.
Between the lines: New York Magazine estimates the net worth of Trump's Cabinet picks at slightly over $9 billion. When including the world's richest man, Elon Musk, the number rises to $340 billion.
- Trump's previous Cabinet was the wealthiest in U.S. history, coming in at $3.2 billion according to Forbes. Former Education Secretary Betsy DeVos and former Commerce Secretary Wilbur Ross' wealth made up 73% of the total.
- In comparison, Biden's Cabinet is worth $120 million.
- At least five people — Musk, Vivek Ramaswamy, Howard Lutnik, Linda McMahon and Steve Witkoff — appointed to roles within Trump's administration are known billionaires.
More from Axios' Sunday coverage:
