Talkin’ tariffs: How 50% tariff on Canada would affect you & impact of trade war on businesses, consumers

Thanks for joining us on another busy night of all things people, power and politics. We do have breaking news in Detroit's own political talk show on The Pulse here. We understand that the ribbon-cutting that was scheduled on Friday for the Gordie Howe International Bridge has been postponed. Again, the ribbon-cutting that was planned for Friday between Canadian and U.S. leaders this coming Friday has been postponed. The bridge was scheduled to be opened on Monday. However, it's not clear if the cancellation of the ribbon-cutting will have any signs of a delay, perhaps, of what was planned on Monday. We'll, of course, be on top of this and we'll let you know as the days move on through this week. And we do have a loaded show for you tonight. Retired Naval Intelligence Commander Dr. Paul Chabot weighing in on the conflict in Iran that's intensifying once again. The latest headlines, plus where he believes we're going from here in about 20 minutes. And we're talking tariffs with Dan Casey and the CEO of Detroit Axel. The president is slapping 50 percent tariffs on our neighbors across the Detroit River. Dan is a financial advisor who will dive into how it will affect you. And the CEO of Detroit Axel is going to be talking about how the Trump trade war has affected business on the ground and what he's doing in a rare move as a businessman to put forth a legal fight. All that's coming up here in a few minutes. But right now, we want to run through some of the other big stories we're following right now. The Trump administration is deferring more than a billion dollars in Medicaid payments to Minnesota and California over what it calls suspected fraud and noncompliance. It's the latest of several punitive actions that it's taken linked to allegations of fraud in mostly Democratic states. Now, previous administrations had clawed back spending after fraudsters were prosecuted. But the Trump administration claims it's trying to stop fraud before it happens. Officials in Minnesota say the feds haven't given data or an explanation about how the deferral was calculated or what it's based on. Take you out to New Jersey now, where the state's governor says roughly 6,600 people who said they were non-citizens were registered to vote in error. Those registrations happened in 2023 and in 2024. Governor Sharrell there is actually a Democrat who took office earlier this year. She ordered the removal of everyone who was improperly added, and she's replacing the vendor who ran the system and launching an investigation into all of this. Now, she does say that non-citizens who registered did so as Democrats, Republicans and independents. And to go by the numbers even further, there are roughly 6.9 million people registered to vote in New Jersey. More than 4 million ballots were cast in 2024. And in case you missed it, our team launched a new show on Fox 2, Detroit Talk City, hosted by Charlie Langton. One of his guests today was Oakland County prosecutor Karen McDonald, who you'll remember was fiercely critical of the Democratic Party over what she called irregularities in the voting process. She had this to say about her party today. Can you support the nominee for attorney general? You know, I think your vote should be private, and I think there's a lot of things. You're a Democrat. There's a lot of things that have to, are still unknown between now and November. So I think after the primaries, I would like to have a clear understanding of where the Michigan Democratic Party is headed. I'm focused right now on the people in my county. Is it divided, the Democratic Party and Michigan divided? I've never seen it as divided as it has. I have never seen more extremism. I have never seen what I saw at the convention, which a lot of Democrats don't want to talk about. It was hate, bullying, and it made people afraid, especially people in the Jewish community. Now, just to clarify, we're referring to irregularities in the nominating conventions voting process. That's what Karen McDonald was talking about. To watch the full episode of this new show that started airing at 4 p.m. on Fox 2 on television and streaming on Fox Local, just scan the QR code on the bottom right of your screen. Charlie, by the way, also spoke with former Detroit Mayor Kwame Kilpatrick. You'll be able to see both candid conversations. You can watch that, of course, on Fox Local. All right, let's get to the tariffs now, because there is new ones that will be slapped onto Canada just days before the Gordie Howe Bridge was set to open. President Trump comes to Metro Detroit on Monday the 27th. That is now confirmed. Now, the question is, how will these affect your bottom line? Dan Casey is a financial advisor with Panic Proof Retirement, and he kicks off our coverage tonight. And Dan, it's always good to see you. Thanks for joining us here tonight. Thanks for having me. All right, so first off, you heard just minutes ago, right before the pulse started at 7.30, we got kind of a startling piece of news that couldn't be, perhaps could be a little bit predictable to others, because this bridge opening has been slated before. It's been canceled. Now we understand the ribbon cutting is canceled for Friday. What does that tell you about the opening on Monday in your guess? Probably not going to happen, and probably just a part of, again, the political theater that I think is going on here. President Trump has issues with Canada. And really our relationship with Canada has kind of been contentious for many years, right? Going back to the 80s, we had issues with lumber. So this is really nothing new, but it happened when Trump initiated these tariffs back last year. And Canada and China were the only two countries who retaliated. And right or wrong, that's what happened. And so Canada banned our alcohol. We didn't ban anything. They took it off the shelves, right? And they told our dairy farmers they could only sell to Canadian dairy farmers, and Canadian dairy farmers aren't going to buy from us. So that was a problem. And then, of course, limiting cars coming into the border. So autos, alcohol, I think it was cheese on the list as well. Three things that obviously mean a lot to the Midwest and to this country. Absolutely. But obviously, when we talk about the cars and the alcohol, that was part of the issue. But the real issue here, as you say, was the fact that Canada and China decided to retaliate. And that for President Trump, for his temperament, he took umbrage at that and said, wait a minute, who pushes back? So now he's pushing back. Now, the tariffs that he's putting forth, 50% tariffs on some Canadian goods and products. He dug way back into the toolbox to 1930s for this. It was like this very, very old legal challenge that he's actually put forth. Talk about that for a moment. Is this viable? Is this going to work, you think? Yeah. So it's an untested law for this purpose, and of course, will probably be contested, I'm sure, through the courts. And again, it goes back to I don't think the tariffs will ever be enacted, in my opinion. I think, again, it's just getting leverage for the negotiation that's going in for the USMCA agreement. So he wants, I think, just to provide leverage. And wouldn't surprise me at all if the bridge fiasco changing of the ribbon cutting is part of it as well. He's really digging in, and I think, again, just trying to get the best for America. And that's really what this was all about from day one, back in the tariffs, is just trying to make it fair. And every one of our trading partners almost, we have an unfair balance, and Canada's one of them. Let's talk about that for a moment, because oftentimes when we hear the word tariffs, it's a trigger politically right away for people to go into their corners and say, I'm either pro or anti-tariff. But if we really look at the fact that the balance sheet was very uneven before, you've talked about that before. This is something that's noteworthy, and something that people perhaps who are not students of history should realize. Yeah, and it is, at the end of the day, it's a tax. So, and Americans are paying it. Now, the question is, do the means justify the ends, so the odds are, obviously, we're trying to get manufacturing back to the U.S., but the costs are obviously increasing, and it's more so being felt by the lower and middle class. The Federal Reserve just did a study, and it's about 400 bucks a year for the lower income. Middle income's paying about 1,400 a year, and the higher income's paying about 7,000 a year more because of the tariffs. And the wealthy, obviously, 7,000 may not be a big deal, but the lower and middle, that difference might have to go on a credit card, and we're seeing that in credit card balances for them. When you look at this, and it's impossible to look at it without looking at this in a political lens, this president realizes that the midterms are important, and all these Republicans that are up for respective offices across the country are looking to curry the favor of a good economy and look for strength, and something that President Trump has promised. These tariffs don't promise that strength right away, at least, right? These are not short-term gains here. It's not, and it's a dangerous stance, I think, if you're the Trump administration. But again, if you believe the greater good here is bringing back American manufacturing, well then it's the short-term pain. But coming from where I am, a financial advisor, the midterm elections is a dangerous thing for the market as well. So there's a 70% chance that there's at least an 18% correction in the market in the year of a midterm election. So that, along with the new Fed chair, they'd like to get tested by the market too, and these tariffs, it's just, it's going to be a tumultuous 2026. You know, we talk a lot about, okay, it's going to hit you here, it's going to hit you there. You talk about the people on the lower end of the income and then the middle. Let's focus on them for a moment. Where will they feel the most pain when these, for instance, if these 50% tariffs on some Canadian products go into effect, how will they be hit? Yeah, so a lot of it is, again, dairy, but kind of related to previous tariffs, insurance costs, right? Car prices, not necessarily the sticker price, but the automobile dealerships have ways of increasing transportation fees and things like that. So it's coming up in just all sorts of ways and repair, if you're buying a used car, it's now the cost of repairs is going up. So it's really just across the board, everywhere being hit. And of course we put a tariff on, or suggested in 30 days, a tariff on hockey sticks. So if you're- Well, you got a lot of people who love hockey in this town and in Canada. That's right, that's right. So it could be hurtful. Well, this is something that obviously we're going to keep on keeping tabs on and we'll do it with the help of Dan Casey, financial advisor. Great to see you, thanks for joining us here. Thanks for having me. We're keeping this conversation going with a very interesting perspective, Detroit Axles CEO, Mike Mushainesh. He's actually in Studio C, he's doing something that very few business people are doing. He's putting his legal footing down to try to stop some of these tariffs. We'll take a look at that while we talk to him next on The Pulse. Back now on The Pulse, looking at all things people, power and politics here with a look at how tariffs have affected businesses and how it could affect consumers. Detroit Axles CEO, Mike Mushainesh, and it's so good to see you. Thanks for joining us here tonight. Thanks for having me. Now look, a lot of people talk the big talk about how they don't like the tariffs and they complain about them. They put their foot down, they put out press and they talk to the Detroit Free Press and Fox too, but you're doing something that's quite a bit different. You're taking legal action, a real challenge to the Trump administration. Walk us through that right now. First, it's a wonderful country where I have the ability to challenge the greatest power on earth, right? So we sued the Trump administration and the Corps of International Trade in New York. And one of the things we're suing them on is the de minimis exemption. They allowed packages to enter the country valued under $800 to enter the country with no tariffs, which was a godsend for middle and lower class Americans. That was completely wiped out. It's been on the books since the 30s. You were allowed to bring in stuff, tariffs. These 800 or less packages were immune from tariffs under that. And you're saying that's been wiped away and that's what you're challenging. So this administration has been lobbying tariffs in different sections of the code. I mean, I've become a trade expert right now because of what we've been through from section 301 to section 232 to section 122. And when you go to court, you have to, you can only sue on one particular section of the code. But again, I mean, just to go back here, Congress has the power of the purse, not the executive branch. So everything that you see that's going on right now with these tariffs are unconstitutional. Now some of them have been challenged as constitutional or not. Others have been used by other presidents as well. President Biden had tariffs under his belt that were actually from the first Trump administration. President Obama had tariffs that he used. I mean, tariffs are not new, right? I mean, tariffs have always been in the tool chest. You're suggesting that the excessive use of tariffs have hurt businesses unfairly. As you said, Biden and Obama are very targeted and precise tariffs on particular sectors or products itself. But here it's a blanket approach against countries and nations and the entire world. Where does the lawsuit with Detroit Axel versus the Trump administration stand right now? Well, after the Supreme Court's ruling back in February, now we have more ammunition for our case. So now it's up for determination of who wins, us or the government. But regardless, this affects every American. I mean, I just want to try to put it in numbers for everybody. Before the Trump administration, if we'd import a million dollars worth of merchandise, we'd pay the government $25,000 in tariffs. Now you pay the government $725,000 in tariffs on that same million dollars in goods. So- So you're saying a million dollars of goods you used to pay before the tariffs were blanketed on, $25,000. And now with the tariffs that are currently in place, you're saying for a million dollars worth of goods sold, more than $700,000 is the cost. Yes, it went up to $725,000. How does a business like yours survive that? We're in the retail business. Our margins are always competitive and small, whether it's 5% or 7%, depending on the product line. So one could not absorb all this punch. So us, like every other business in the country, had to raise the prices and the consumer. So you take $100 item. Once upon a time, it was $102. Now it's $175 or $172. And now you add your other cost of shipping and labor and whatnot, and you get a final price that's about 30% higher than what it was. What are your customers telling you? I mean, look, we're in a need item, not a want item. So the consumer has been battered, right? The consumer is paying not only on high gas prices now, but with these tariffs, it's a force multiplier on the backs of the consumer. So it's hurting everybody. When you filed this legal action against the Trump administration, was your goal to win or to make a statement? A little bit of both, right? If we win, we don't win just for ourselves. We win for everyone in the nation here. I mean, right now, if they were to eliminate these tariffs that have been blanketed on our people here, prices will drop by 15% overnight, right? Do you think that these tariffs will survive? Do you think many of them will be dropped and this is simply a political tool that President Trump is using right now? I don't know what's in the man's mind. All I know is the next president would know best of the economy and the state of the economy. I mean, we're talking about Great Depression numbers as far as where the tariffs lie, what the percentage is right now at 52% for auto parts, right? I mean, the Great Depression tariffs, Smoot-Hawley Act was like 59%. And we're talking Herbert Hoover style economics here. There's nothing good's gonna come out of it. Listen, I'm 100% bringing manufacturing back. I mean, it's a matter of national interest to be able to produce. That's something that President Trump also touts all the time, right? And so for him to tout it, but then also to come out of your mouth saying that it's hurting your business, there's two sides of the coin there. In my case, and I'll speak frankly here, many competitors could not bear the cost of holding inventory. So I've seen many competitors throughout this land that had to shut down, right? I've seen selection dwindle out of stock up. So there's a lot less variety in selection out there, meaning prices are gonna go up on that end also. Let us know what happens, CEO of Detroit Exxon, Mike Mucinich. It's great to see you. Thank you for being with us here tonight. Thank you. My pleasure. Thank you. Great to have you on. All right, my friends, we're diving into the Iran war with retired Naval Intelligence Commander Dr. Paul Chabot next. Where things could be headed as fighting intensifies, the President says they're not willing to back off just now. You're watching The Pulse on Fox 2. Welcome back to The Pulse. You'll hear from retired Naval Intelligence Commander Dr. Paul Chabot in a matter of seconds here. Defense Secretary Pete Exxon was questioned on Capitol Hill today, facing questions from lawmakers as Republicans prepare a $95 billion bill to fund the military and other White House priorities. The Defense Department estimates the war has cost more than $37 billion. President Trump has also proposed a $1.5 trillion defense budget. In the meantime, the President had this to say about talks between the US and Iran. There are no signs that Iran is ready to stop fighting. So what is the plan? Is the plan to just keep bombing until they give up? Well, do you know something that I don't know? Well, they continue to attack our allies. You don't know what the dialogue is behind the scenes that they want to meet desperately to try and end it because they're getting decimated. You don't get that when you listen to your fake station, but you don't know. You don't know anything. Do you know something I don't know? I will tell you they want to desperately meet and until they're ready to meet in a meaningful way, we have no interest. We're joined now by Dr. Paul Chabot. He served as White House Senior Advisor to Presidents Clinton and George W. Bush. He joins us now live via Zoom. And as always, we thank you so much for joining us. We understand the President just now, as you heard him say, that Iran, according to him, is desperately wanting to meet with the United States or with negotiators. That would be a good sign to find some kind of form of peace here. But how likely is that at this hour? Yeah, I don't see that as likely. We've heard a lot of rhetoric out of Iran. I think the United States understands that at this point. Today, the Iran president said something very clear, and that is that Iran is in a full-scale war against the United States. And by the numbers, we are now past our 10th night of consistent attacks against Iran. We have 50,000 troops in the region, two carrier strike groups. And on top of that, the battlefield now has really stretched into a number of countries. Sadly, we're now at about 18 Americans killed. One lived 30 minutes from where I live, the same age as my oldest daughter. And people are seeing the pictures at home on their TVs. The street of Hormuz remains largely shut down, and there is a new front opening up largely today with the Houthis, based in Yemen, basically turning back, or in many ways through their threats, turning back oil ships in the Red Sea that did not exit the Bab el-Mandeb Strait, a second major strait for commerce. I do want to ask you, there's so much that you packed in there that's so helpful, because it lays the stage down for us and the context. And then we go into the weeds a little bit with the war itself. The president, at the same briefing, was asked by a reporter today, hey, we understand that there were centrifuges, that Iran may have moved nuclear centrifuges into what's known as the pickaxe mountains. And the president rebutted that by saying, hey, but there was no nuclear material with that. Centrifuges mean nothing without the material, but we're going to hit them hard soon. Militarily, when you hear that, unpack that for us. What does that all mean? Yes, so this president tends to explain a lot or tell a lot. And from a military intel perspective, we would prefer that our operations or future operations not get told. Now, the president did say, look, I can say it because we've got the ability to do it. Let me tell you what Pickaxe Mountain is. Pickaxe Mountain is located in north central Iran. It is a large storage facility under construction about 300 plus feet below a mountain, where the Wall Street Journal reported Israeli intelligence today that Iran has moved their nuclear centrifuges under that mountain. And so the president has talked about our ability to target that location. The question is, could our munitions actually have an impact? In the last few hours, Iran said, if you attack our nuclear facilities, we're going to even expand our efforts beyond what we're already doing in the Middle East by hitting U.S. allies, including Kuwait, where they have targeted civilian water desalinization plants. That is not a U.S. asset that in many ways could be considered a war crime. I want to ask you about two things that seem to still be a threat on top of that nuclear capability, those short-term ballistic missiles that Iran may have, and also their Navy. Those are two things that are talked about a lot. How important is it for the United States to understand the threat that those two pose? It's huge. We looked at our troops that were killed in Jordan. It was because Iran didn't launch one, they launched multiple ballistic missiles at our bases. So we've also got to think about the fact that we may be running low on munitions, both our offensive capabilities, our tomahawks, as well as our defensive capabilities, which are our Patriot missiles. To see Iran still firing multiple ballistic weapons today obviously says they still have a stockpile. On top of that, they've got cheap drone technology. And on top of that, they got a lot of go-fast boats that can control the Strait of Hormuz with old mining capability, which can really lock down an entire Navy from being able to move through a strait without mine-clearing operations. Peace still seems like something that is a bit elusive and a bit further away than perhaps all of us would hope. But something that we all still wish for, and we hope it happens soon. As you say, 18 American troops dead. That is the saddest part of all of this here tonight. Of course, on top of that, the casualties on the ground in Iran as well. But Dr. Paul Chabot, we thank you for your time here tonight. My pleasure. Thank you. That is The Pulse for tonight. Thank you so much for joining us. I'm Rup Raj. As always, it was good to be with you.