Trump Drops 50% Tariff Hammer on Canada plus Treasury Unleashes IRS in Minnesota

Summary

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The 47 Morning Update with Ben Ferguson

Episode: Trump Drops 50% Tariff Hammer on Canada plus Treasury Unleashes IRS in Minnesota
Date: July 21, 2026

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Episode Overview

In this episode, Ben Ferguson delivers incisive commentary on two major headlines shaping U.S. politics and policy:

1. President Trump's escalation of a trade conflict with Canada via new 50% tariffs.
2. A sweeping IRS crackdown on Minnesota’s massive welfare fraud scandal, including unprecedented audits of banks and money services companies.

Ferguson breaks down the administration’s logic, details political pushback, and highlights how these developments reflect President Trump’s “America First” agenda. The episode is rich in context, political analysis, and a dose of Ben's trademark directness.

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Key Segment 1: Trump Slaps 50% Tariffs on Canada

[02:22 – 10:54]

Main Points

• Announcement: President Trump’s administration is imposing a 50% tariff on a wide range of Canadian goods, citing “discriminatory treatment” of U.S. exports, particularly in autos and manufacturing.
• Legal Basis: Rather than relying on normal tariff authorities, Trump invoked Section 338 of the Tariff Act of 1930. This provision allows the U.S. president to levy tariffs up to 50% if another country discriminates against American commerce—a rarely used tool.
• Products Affected: The tariff targets a wide array of products—wine, furniture, cement, clothing, sporting goods. Exemptions are in place for energy, fish, critical minerals, and other strategically vital imports.
• White House Justification: The move is designed to “level the playing field,” with officials arguing that Canada gives preferential treatment to third countries’ goods while purposefully disadvantaging U.S. producers—especially in autos, alcohol, and dairy.
• Broader Message: Ben Ferguson positions this as a continuation of Trump’s core promise to defend American jobs and industries, leveraging the U.S. consumer market in trade negotiations and signaling that “America is no longer going to accept trade relationships that… put American workers at any disadvantage.”
• International Consequences: Ferguson notes the measure is making headlines internationally and warns it could escalate if Canada doesn’t respond by removing alleged unfair policies.

Notable Quotes & Moments

• On the motivation for tariffs:
  “The president’s doing what he’s been doing since the day he got back into office—standing up for American workers, standing up for American manufacturers, standing up for American companies. And when we’re being taken advantage of, even if it’s Canada, the president saying, not under my watch.” (Ben Ferguson, 03:00)

• Legal novelty:
  “He reached back to Section 338 of the Tariff Act of 1930… and that’s remarkable is the fact that this authority has rarely, if ever, been used in modern history. But… he doesn’t care about history. He cares about what’s happening now and making sure that Canada doesn’t continue to take advantage of us.” (Ben Ferguson, 04:54)

• Economic context:
  “You also have to remember the United States and Canada aren’t just neighbors. They’re… two of the world’s largest trading partners. Every day, billions of dollars in goods cross the border. Supply chains are deeply integrated… That means decisions like this don’t just affect politicians, they affect everyone.” (Ben Ferguson, 08:45)

• Message to other countries:
  “The Trump administration is absolutely willing to use its authorities that previous presidents left untouched if they believe that American industries… if we’re being treated unfairly.” (Ben Ferguson, 09:38)

Segment Insights

• The move is both a negotiation gambit and a signal the administration will deploy rarely used tools to defend U.S. commercial interests.
• Critics and economists warn it could raise costs for consumers and hurt multiple sectors; Ferguson dismisses these as “the same thing they said the last time the president put serious tariffs in Europe and Asia and other parts of the world.”
• Implied is a political pitch for the “America First” approach ahead of the midterms.

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Key Segment 2: Treasury & IRS Go After Minnesota Fraud Scandal

[10:55 – 20:01]

Main Points

• New Crackdown: Treasury Secretary Scott Bessant announces an IRS campaign targeting financial institutions and money service businesses implicated in Minnesota’s $9 billion welfare fraud—the largest of its kind in a single state.
• Not Just the Perpetrators: For the first time, federal authorities are focusing not just on individuals conducting the fraud but also banks, MSBs, and anyone who helped move or “clean” the stolen money.
• Broad Investigation: Collaboration between the IRS, FinCEN, and federal law enforcement aims to prosecute any party found complicit—including those who “looked the other way” or failed anti-money laundering duties.
• Political Backdrop: The escalation comes after fiery Congressional exchanges, including Sen. Josh Hawley grilling Minnesota’s Attorney General over alleged failures in pursuing the fraud.
• Systemic Failure: Ferguson emphasizes that this level of fraud “rarely ever ends with the person who actually cashed the check. The money has got to be cleaned… deposited… moved… converted,” underscoring the crucial role of financial institutions.

Notable Quotes & Moments

• Flashpoint in Congress:
  “Senator Josh Hawley was grilling Minnesota’s Attorney General over the $9 billion fraud scandal… 'You’re in my courtroom now. You’re under oath. So I suggest that you answer my question… Are you familiar with that? Don’t turn to the pages in your book to get answers. Are you familiar with it? Yes or no?'” (Ben Ferguson quoting Sen. Hawley, 11:56)

• On auditing financial institutions:
  “Now, usually they just go after the person that’s doing the scheme. Many times the banks and others, they just claim ignorance and nothing happens. Not anymore. The IRS is now being deployed for Americans first, not against Americans and America’s working families.” (Ben Ferguson, 15:18)

• Secretary Bessant’s direct warning:
  “Civil Enforcement is auditing financial institutions that facilitated the laundering of Minnesota funds. In addition to helping support criminal and civil enforcement efforts, the IRS will also soon announce the formation of a task force.” (Scott Bessant, 14:18)

• Why this matters:
  “That is enough money to build schools in a state, to hire thousands of police officers to repair countless miles of highway. Or here’s a novel idea, reduce taxes for millions of Americans in that state. Instead of all that… you have… money that was intended to help vulnerable Americans that were deliberately diverted and stolen through these fraudulent schemes.” (Ben Ferguson, 17:15)

Segment Insights

• Ferguson frames the IRS action as “music to the ears” of Americans who feel frustrated by double standards and want equal accountability.
• Detailed discussion on how bank complicity can no longer be excused and the importance of following every dollar, not just prosecuting low-level offenders.
• This move is highlighted as a shift to more aggressive federal enforcement—linking it to the broader “America First” ethos.

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Memorable Moments & Additional Highlights

• America First Message:
  “[T]his is what the majority of the American people voted for in the last presidential election. And clearly, this is sending a message before the midterms that if you want to put America first, then the America first agenda by this president and conservative candidates is exactly what you should be voting for.” (Ben Ferguson, 10:47)

• IRS enforcement as populist move:
  “This is music to the ears of many Americans who said, we’re sick and tired of two different sets of rules in this country. And that’s why he mentioned it the way he did… that this is an audit that is going to reach far and wide.” (Ben Ferguson, 16:19)

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Timestamps for Key Segments

• [02:22] Opening of main content / Trump-Canada Tariffs
• [03:00] “Standing up for American workers…”
• [04:54] Rare legal authority invoked
• [08:45] Impact on U.S.-Canada supply chains
• [10:47] Framing as ‘America First’ ahead of midterms
• [10:55] Transition to Minnesota IRS crackdown
• [11:56] Sen. Hawley’s grilling, Congressional flashpoint
• [14:18] Treasury/IRS audit announcement
• [15:18] Banks, MSBs in the crosshairs
• [17:15] The real-world impact of $9B fraud
• [20:01] Content segment concludes

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Tone and Style

Ben Ferguson delivers his analysis with energetic, unapologetically pro-Trump commentary, emphasizing the administration’s determination to “stand up for Americans” and to challenge the status quo on both trade and law enforcement. He peppers his coverage with populist appeals, rhetorical questions, and blunt assessments.

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Takeaway

This episode illustrates the Trump administration’s signature blend of combative economic nationalism and populist law-and-order action—using both rarely-invoked trade statutes and aggressive IRS enforcement to reshape domestic and international landscapes. As Ferguson summarizes, these moves are as much about messaging and political advantage as they are about policy substance, signaling to allies and adversaries alike that American leverage will be asserted unapologetically.

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Transcript

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[B]

Good Tuesday morning. It's so nice to have you with us on the 47 Morning Update. And we've got two very big stories for you. First up, President Trump. And impose a 50% tariff on a variety of Canadian goods over what he describes as discrimination of American autos and other manufacturing goods and services. How big of a deal is this? I'll explain it to you. Plus, we now know that the IRS is going after those that were involved in the 18 billion dollar Minnesota welfare laundering scandal. The Treasury Secretary deploying the IRS to defend working Americans and launching a mass audit of banks and financial services. It's Incredible. It's the 47 Morning Update and it starts right now. Story number one, President Donald Trump, he's coming out swinging, not against Iran, but this time it's in an escalating trade battle with our northern neighbor. The president announcing a 50% tariff on a wide range of Canadian goods. And the White House says this isn't about raising revenue. It's about what the administration calls Canada's discriminatory treatment of American goods and products, especially American automobiles. In other words, the president's doing what he's been doing since the day got back into office, standing up for American workers, standing up for American manufacturers, standing up for American companies. And when we're being taken advantage of, even if it's Canada, the president sang, not under my watch. Now, if you're going to discriminate against American workers and American farmers, we should also mention that and American manufacturers. Well, the White House is saying don't expect unrestricted access to the American marketplace. Now, according to the White House, Canada has been giving preferential treatment of products from other countries while imposing policies that specifically are designed to disadvantage the United States. Now, the Trump administration points to Canada's treatment of American made vehicles. Restrictions affecting US Alcohol is another example, and then their dairy policies that they argue favor other trading partners over American producers. Now, let's also talk about one of the big issues, and that is the American auto industry because that is the centerpiece of all of this announcement. The White House argues that Canada has maintained policies that place unique burdens on American made vehicles while also treating imports from other countries much more favorably. Now, the administration says those policies violate the principle of fair trade and that puts the U. S. Manufacturers at a massive competitive disadvantage on purpose. Now, to be clear, President Trump isn't using his typical tariff authorities. Instead, he reached back to Section 338 of the Tariff act of 1930. Now, that's a law that gives President Trump the authority, or any president for that matter, the authority to impose duties of up to 50% when another country discriminates against US commerce. And that's remarkable is the fact that this authority has rarely if ever been used in modern history. But the. Well, he doesn't care about history. He cares about what's happening now and making sure that Canada doesn't continue to take advantage of us. And that is why this announcement was making headlines, not just in the US Or Canada, but around the world. The administration says this isn't a blanket tariff on everything Canada exports. By the way, there are significant exemptions, including energy products, fish, critical minerals, and certain other strategically important goods excluded. But a wide variety of other Canadian products, from wine and furniture to cement, clothing and sporting goods, will now face a new 50% duty if the policy takes effect on August 19th. Now, White House has also said the goal is real simple, level the playing field. Officials argue that for far too long, Americans have accepted trade agreements where foreign governments protect their own industries while expecting unrestricted access to American consumers. And the Trump administration says that error is over. Now, supporters of the president are also arguing that this fits perfectly with the economic philosophy that we've seen since day one. Trump has repeatedly said that tariffs are used as leverage, and he believes America's enormous consumer market is one of the country's greatest negotiating tools and assets. And look, the Trump doctrine, the White House says, is very clear. If another country, doesn't matter who it is, wants to sell billions and billions of dollars worth of products to American consumers, then their view is that they should treat American companies fairly in return. And that's exactly what the White House says this action is designed to accomplish. Now, of course, many on the left, they're furious over this, as they always are when President Trump does anything like this. Economists, they're warning that the tariffs are going to increase costs for businesses and it's going to shut down and put American consumers and workers lives at risk. Yes, it's the same thing they said the last time the president put serious tariffs in Europe and Asia and other parts of the world. Now, Canadian officials have already indicated they intend to continue negotiations while defending their own trade measures. And some provisional leaders have even discussed possible responses. So the big question now is, what happens next? Does Canada come back to the negotiating table? Does it remove some of the policies Washington say unfairly target American products and manufacturing? Or do both countries continue escalating in what would become an even larger trade confrontation? Now, to be clear, Canada needs America more than we need Canadian goods, and they desperately need to sell those products to the United States of America. There's a very good chance the President's going to get exactly what he wants here. You also have to remember the United States and Canada aren't just neighbors. They're, well, two of the world's largest trading partners. Every day, billions of dollars in goods cross the border. Supply chains are deeply integrated between the two countries, especially in Manufacturing. That means decisions like this don't just affect politicians, they affect everyone. I'm talking about the factories, the truck drivers, the suppliers, the farmers, the retailers, the consumers. And the White House is betting that Canada has more to lose by maintaining what it calls discriminatory policies than by negotiating a new agreement. Now, this also sends a very clear message beyond Canada as well other countries, you better pay attention, because these negotiations now know that the Trump administration is willing to use authorities. And by the way, the president's also sending a very clear message to other countries around the world that are watching these negotiations. And the message is this. The Trump administration is absolutely willing to use its authorities. That previous presence left untouched if they believe that American industries. Well, if we're being treated unfairly. So whether you're talking about automobiles or agriculture or manufacturing or consumer products, this announcement reinforces one central theme, and that is President Donald Trump's economic agenda is this. America is no longer going to accept trade relationships that this administration believes put American workers at any disadvantage. And by the way, this is what the majority of the American people voted for in the last presidential election. And clearly, this is sending a message before the midterms that if you want to put America first, then the America first agenda by this president and conservative candidates is exactly what you should be voting for.

[A]

Next story number two.

[B]

I want to catch you up to date on a stunning development in what is becoming one of the largest public fraud investigations in modern American history. The Treasury Secretary, Scott Bessant, has announced that the IRS is now auditing financial institutions and money service businesses that allegedly help facilitate the laundering of stolen taxpayer funds connected to Minnesota's massive social services fraud scandal. The Treasury Department says this is part of a broader crackdown involving the IRS, FinCEN, and federal law enforcement. Now, let me just remind you about how we got to this point. Senator Josh Hawley was grilling Minnesota's Attorney general over the $9 billion fraud scandal. And I want you to hear what he had to say before Congress, which is now open up the floodgates for the IRS to get involved.

[A]

Don't talk over me. 2019. It's my hearing, pal. As early as 2019. Don't call me whistleblowers came. Well, I should call you a prisoner because you ought to be in jail. Mr. Ellison, let me start with you. You're the Attorney General of the State of Minnesota. Do I have that correct? That's a yes, sir. You're aware of my job. You know the answer is you're not gonna answer my questions. Are we gonna start this way? Are you the Attorney General of the state of Minnesota? Yes or no? You know the answer. Shelveson. You're in my courtroom now. You're under oath. So I suggest that you answer my question to the chief law enforcement officer of the state of Minnesota. Yes or no? Let's try another question. Are you familiar with the $9 billion in historic fraud out of your state, including the $250 million in the feeding Our Future program alone? You familiar with that? Don't turn to the pages in your book to get answers. Are you familiar with it? Yes or no? Yes, I am familiar with. Very familiar. Aren't you? Because the people who ran the Feeding Our Futures program came to you in your official office in the State Capitol of December 11, 2021, and asked for your help in getting investigators off their backs. They complained to you for upwards of an hour about state investigators going after them, and they begged you to help them. And you agreed to it, amazingly, and we know you did. That's because it's all. All caught on tape. Every single sentence is caught on tape. Here's what you said. Let's take a look. You said, it's not a question. You said to them, send me the names of all these folks who are investigating them, and I'll take that list and I'll call the person over at education who is investigating them and say, what's going on? Why am I getting these complaints? Then he went on to say, I already have my team working on this. What day should we get together to discuss it again? You said, let's go fight these people, meaning the people who are Investigating the fraud. Nine days after the meeting. False. You took $10,000 as early as 2019. Whistle.

[B]

Now, that is a flashpoint moment which now is turned into actual actions from the Trump administration. The Treasury Secretary, Scott Bessant, is announcing now the IRS is now auditing financial institutions and money services businesses that allegedly helped facilitate the laundering of the stolen taxpayer funds. In just 18 seconds, he made it clear that we're going on offense.

[A]

Civil Enforcement is auditing financial institutions that facilitated the laundering of Minnesota funds. In addition to helping support criminal and civil enforcement efforts, the IRS will also soon announced the formation of a task force.

[B]

Now, let's break down what this means. You have the Treasury Secretary, Scott Bessant, announcing that the Internal Revenue Service is launching, not a little investigation, a massive audit of financial institutions that he says facilitate the laundering of Minnesota fraud funds. What does that mean? And I'm trying to paint a picture so you understand just how big of a deal this is? This is auditing banks, MSBs, financial middlemen. Anyone who helped move the dirty money the IRS and the federal government is coming after. Now, usually they just go after the person that's doing the scheme. Many times the banks and others, they just claim ignorance and nothing happens. Not anymore. The IRS is now being deployed for Americans first, not against Americans and America's working families. That is also something that many Americans are not used to. And what Scott Besson said there is this. Number one, we're going to follow the money. Number two, we're going to audit everything. And then number three, we are going to prosecute whoever broke the law. And that can include again, banks, bankers, MSBs, financial middlemen. You're all now open up to this. If you were cleaning this money that was being stolen, this is on you too. Now, by the way, this is music to the ears of many Americans who said, we're sick and tired of two different sets of rules in this country. And that's why he mentioned it the way he did that. This is an audit that is going to reach far and wide. Now, investigators, again, they primarily focus on people allegedly stealing taxpayer money. But now they're saying after we find that money, we're going to see where it ends up. And this message from the Treasury Department is this. If a financial institution I'm quoting now knowingly look the other way or failed to meet their anti money laundering obligations, they're going to get scrutinized as well. That's coming from the US Department of Treasury. Now, the investigation, again, all of it centers around what the Trump administration now estimates could total roughly 9 billion in fraud involving Minnesota's social service and public benefit programs. It is going to be one of the largest alleged taxpayer fraud schemes that has ever been investigated in a single state. Now, we're talking about 9 billion. That's not a bookkeeping error. That's not someone filing one bad reimbursement. Okay? That is enough money to build schools in a state, to hire thousands of police officers to repair countless miles of highway. Or here's a novel idea, reduce taxes for millions of Americans in that state. Instead of all that, what do you have? Investigators are now clearly connecting the dots that there were enormous sons of money that was intended to help vulnerable Americans that were deliberately diverted and stolen through these fraudulent schemes. Now, according to Secretary Bassen later in that announcement, he says the Financial Crimes Enforcement Network, better known as FinCEN, is investigating several Minnesota money service businesses. Then they said the IRS civil Enforcement division has begun auditing financial institutions believed to have handled suspicious transactions connected to the billions in fraud. Now, you may say, all right, Ben, why does this really matter? Fair question, and I'm going to answer it this way. When you have fraud that is this large and you have a scheme that is this big, it rarely ever ends with a person who actually cashed the check. The money has got to be cleaned. The money has to move. It has to be deposited. It has to then be transferred. It has to be converted into where? Whatever currency they want to go into. And much this money we know also was wired overseas. And so you look at this and banks and institutions, money institutions, they're saying there's so much money coming in, they had to know something was up. So did you deliberately look the other way to get the business and to help launder the money? Now, investigators also say they've got a very clear list of what they want to know. Number one, who moved the money, then who received it and then did anyone ignore obvious warning signs? Right. Where anti money laundering safeguards bypassed on purpose? All of this is the questions that Scott Bessant said they're going to answer. So if you care about your tax dollars, you should be thrilled right now because what we have witnessed so far is egregious. And it shouldn't just be the people that were doing the scheme that go to jail. It should be the people that help them launder the money as well.

[A]

Thank you for listening to the 47 Morning Update with Ben Ferguson. Please make sure you hit subscribe wherever you're listening to this podcast right now. And for more in depth news, also subscribe to the Ben Ferguson podcast and we will see you back here tomorrow.

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