February 4, 2025

Permission to republish original opeds and cartoons granted.

The Trade War Lasted A Day. Trump Won.

By Robert Romano

President Donald Trump has paused for 30 days a 25 percent tariff on Mexican goods and another 25 percent tariff on Canadian goods and 10 percent tariff on Canadian energy products after both countries acceded to the President’s demands to contribute to border security, preventing illegal migration and drug trafficking flows.

Announcing the dramatic step on Truth Social on Feb. 3, President Trump wrote that Mexico had agreed to send 10,000 troops to the U.S.-Mexican border to assist with stopping illegal immigration and drug trafficking of fentanyl by the cartels, “I just spoke with President Claudia Sheinbaum of Mexico. It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States. These soldiers will be specifically designated to stop the flow of fentanyl, and illegal migrants into our Country.”

As a result, Trump said he was pausing the tariffs, stating, “We further agreed to immediately pause the anticipated tariffs for a one month period during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico. I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries.”

That was at 10:41 a.m. EST. The tariffs had not even taken effect yet, which were set to begin on at 12:01 a.m. EST on Feb. 4. That was quick!

Short to follow was Canada, with Trump announcing at 4:57 p.m. EST that Canada would be providing its own security force to help secure the north border, stating on Truth Social, “Canada has agreed to ensure we have a secure Northern Border, and to finally end the deadly scourge of drugs like Fentanyl that have been pouring into our Country, killing hundreds of thousands of Americans, while destroying their families and communities all across our Country. Canada will implement their $1.3 Billion Border plan…

Trump described the joint plan with Prime Minister Justin Trudeau to “reinforc[e] the Border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are, and will be, working on protecting the Border. In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the Border, launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl, and we will be backing it with $200 million.”

Trump added that he was pausing the tariff on Canada as well for a month, “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!”

As for China, no deal was reached and so the increase of tariffs on Chinese goods by another 10 percent, coming atop 25 percent on $250 billion of goods and 17.5 percent on the remaining $300 billion of goods that were established by Trump in 2019 that President Joe Biden never rescinded — are now fully in effect.

Apparently, both Canada and Mexico judged that it would be cheaper to assist with border security than to see the taxes levied on the shipment of their goods and commodities to the U.S. Who could have foreseen such a likely outcome?

Certainly not the Wall Street Journal, on Jan. 31 calling Trump’s proposed tariffs, specifically designed to achieve border concessions on illegal immigration and fentanyl — these were exactly the terms Trump had transparently laid out for Mexico and Canada in November after his historic election win — was “The Dumbest Trade War In History.”

And the editorial board promised that Mexico and Canada would never cooperate, writing, “The U.S. willingness to ignore its treaty obligations, even with friends, won’t make other countries eager to do deals.” Whoops. Turns out none of that was true. Mexico and Canada immediately dealt with Trump — on his terms.

This must have been embarrassing, as it led the editorial board to then follow up with another irrelevant editorial claiming only “minor concessions” had been made by Mexico and Canada leading to Trump’s pause on the tariffs.  

Except what has now been offered by Mexico and Canada was exactly what Trump asked for in the first place. Specifically, on Nov. 26 Trump wrote on Truth Social, Trump demanded both countries take action to secure their borders to stop illegal aliens from crossing into the U.S. and similarly stop the fentanyl shipments, “As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before. Right now a Caravan coming from Mexico, composed of thousands of people, seems to be unstoppable in its quest to come through our currently Open Border. On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. 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!”

In short, without having to ever impose the tariffs, suddenly, Mexico was sending 10,000 troops to the border and was Canada sending 10,000 personnel to deal with the crisis. This is Trump’s art of the deal in practice, using the threat of tariffs as key leverage to achieve concessions. And over the next month, negotiations will ensue for a more permanent arrangement that secures everyone’s borders, halts illegal immigration and targets the deadly fentanyl trade.

The trade “war” lasted a day. President Trump won.

Robert Romano is the Vice President of Public Policy at Americans for Limited Government Foundation.

To view online: https://dailytorch.com/2025/02/the-trade-war-lasted-a-day-trump-won/

Tightening Russian Sanctions and Closing Loopholes is Critical to President Trump Ending the War in Ukraine

By Rick Manning

Since 2022, the Biden Administration had not only allowed Vladimir Putin’s full-scale Russian invasion of Ukraine, but their policies also failed to bring the war to an end and allow Ukraine to begin to rebuild.

Luckily, President Donald Trump has reiterated his pledge to end the war now that he has returned to office, reducing American taxpayers from having to continue sending foreign aid and finally pushing Putin back into Russia and out of Ukraine. As the Trump Administration considers next steps, President Trump can increase his leverage and negotiating power by closing loopholes in existing Russian sanctions and go after bad actors helping to fund the Russia war machine.

A vast majority of U.S. lawmakers have been supportive of sanctions against Russia. Yet the problem with these measures – and what is often used as an argument against them – is that their implementation is not always effective. Despite embargoes on Russian fuel in Europe and bans on services for Russian individuals and companies, Russian oil and capital have continued to infiltrate the global market.

Nevertheless, U.S. sanctions on Russian entities—rules preventing American companies from dealing with sanctioned actors—can be meaningful. We have seen cases that illustrate that purpose: earlier this year, State Street Bank settled with OFAC (Office of Foreign Assets Control) for nearly $7.5 million after allegedly bypassing sanctions requirements.

Yet despite these examples, capital still flows in and out of Russia, facilitated by willing parties in the United States. As the war has dragged on, it has become evident the Biden Administration’s approach to sanctions has fallen short, as companies found ways to keep the money moving, and the Trump Administration will need to step up its enforcement to close loopholes and go after outstanding bad actors in order to bring the war to an end.

A glaring example of how companies have slipped through the cracks of sanctions enforcement is San Francisco-based tech startup Deel. This company has come under scrutiny for numerous Russia-related activities, including facilitating HR services for businesses operating in Russia, partnering with Russian financial institutions, and even counting Russian oligarch Roman Abramovich as an investor.

Deel’s methods include reliance on cryptocurrency to transact with foreign individuals and entities, mirroring the precise mechanism Russia officially endorses to skirt sanctions and maintain its ties with the outside world.

One of Deel’s founders – who appeared alongside now disgraced fraudster Sam Bankman Fried in Forbes’ 2021 30 under 30 in Finance – has openly touted his company having experienced massive growth because it allows companies to hire workers overseas “without having to worry about compliance regulations in different countries.”

In addition to creating workarounds to continue new investments in Russia despite U.S. sanctions prohibiting them, Deel has reportedly partnered with T-Bank, which is controlled by Russian oligarchs and already sanctioned by the U.S., U.K., and the European Union, so Russians can receive payments despite sanctions.

Just recently, a Racketeer Influenced and Corrupt Organizations Act (RICO) complaint was filed against Deel in federal court for the Southern District of Florida, where a court-appointed SEC receiver uncovered an alleged money laundering and sanctions-busting racketeering scheme between Deel, Arival Bank, a Puerto Rican crypto bank co-founded by Russian nationals affiliated with Deel, and T-Bank, a sanctioned Russian bank based in Moscow.

Deel and other companies just like it who are evading sanctions and funding Russia’s continued invasion of Ukraine exemplify why Washington’s current sanctions strategy is failing, and why the Trump Administration must close the sanction loopholes if President Trump is to be successful in bringing the war to a close.

Sanctions, if left toothless, risk becoming a hollow gesture. To protect core values, maintain credibility, dissuade those who would profit from conflict, and end the war, Washington must bring its full economic arsenal to bear — so Trump has the leverage he needs — and shut off every entry point for Russian capital and stop the cash flow to Putin’s war machine.

Rick Manning is the President of Americans for Limited Government.

To view online: https://dailytorch.com/2025/02/tightening-russian-sanctions-and-closing-loopholes-is-critical-to-president-trump-ending-the-war-in-ukraine/