Donald Trump: ‘Our country was built on Tariffs’

U.S. President Donald Trump on Wednesday morning took to Twitter, as he often does, to lambaste some of his favourite targets: the U.S. Justice Department, the “rigged Russian witch hunt” (a.k.a. the Robert Mueller investigation), and of course, undocumented immigrants.

He also brought up one of his past greatest hits, tariffs, writing that the United States was “built on Tariffs, and Tariffs are now leading us to great new Trade Deals” (capitalization his, not ours).

Of course, tariffs have been a mainstay in Canadian headlines for the past several months, with Trump levying duties on U.S. imports of Canadian steel and aluminum. The U.S. president has recently threatened more tariffs on Canada’s auto industry.

He’s also slapped massive duties on goods from China, Mexico and, most recently, Turkey. Those nations, along with Canada, have come back with retaliatory tariffs of their own.

Many users on Twitter are pointing out the holes in Trump’s latest tweet. Like the fact that no new trade deals have actually been signed:

Or that many of the people Trump claims his tariffs will help aren’t really happy with them at all:

The Wall Street Journal points out that Trump’s action against Turkey actually goes against longstanding U.S. policy of minimizing foreign crises:

[Yahoo]

The EU reportedly used colorful flash cards to explain trade policy to Trump

European Commission President Jean-Claude Juncker reportedly used colorful cue cards to explain issues of global-trade policy to President Donald Trump during their meeting earlier this week.

According to a report from the Wall Street Journal on Thursday evening, Juncker and his team used the cards to simplify complex issues for the president as a means of getting their points across as effectively as possible.

The Journal’s report says Juncker “flipped through” more than a dozen cards, which had minimal information on them, and all focused on a single issue. These included the automotive trade, and regulatory standards for medicines, the report added, saying that there were a maximum of three figures per card.

“We knew this wasn’t an academic seminar,” a senior EU official who was at the meeting told the Wall Street Journal. “It had to be very simple.”

Trump and Juncker on Wednesday agreed to the beginnings of a deal that would end the previously growing trade tensions between the US and the EU.

During the meeting, the EU agreed to import more American soybeans and liquefied natural gas. Both sides agreed to work to decrease industrial tariffs and adjust regulations to allow US medical devices to be traded more easily in European markets.

“This was a very big day for free and fair trade,” Trump said at a press conference after the pair’s meeting.

The EU’s use of flash cards is not without precedent. Trump is well-known for his distaste for lengthy documents, and is said to prefer single-page memos when deciding on policy.

In May 2017, a report from Reuters said that Trump likes “single-page memos and visual aids like maps, charts, graphs and photos.” A source quoted by Reuters said aides also strategically put Trump’s name into “as many paragraphs as we can because he keeps reading if he’s mentioned.”

[Business Insider]

Trump Touts U.S. Being ‘Back on Track’ With the EU After Meeting With Juncker: We ‘Love Each Other’

President Donald Trump said during a White House event today the U.S. will be working with the EU to address the current trade dispute, and tonight he touted how things are “back on track.”

Trump met with European Commission President Jean-Claude Juncker today and he’s tweeting that it was a big success:

Trump also shared a picture of himself and Juncker:

[Mediaite]

Reality

Trump claimed the EU promised to purchase more soybeans and that made it all worth it, but the EU doesn’t buy goods such as produce, individual European countries do.

EU officials confirmed the Trump/Juncker agreement is nothing more than a political pledge by the EU not to do anything that affects the market conditions responsible for European countries buying more beans.

We alienated friends, trashed our reliability in front of the world, made us all pay more with his taxes on us, cost American jobs, all so soybean farmers could sell a few more barrels they were already going to sell to the EU anyway.

Got it.

Trump says ‘vicious’ China targeting U.S. farmers on trade, urges critics to ‘be cool’

President Donald Trump on Wednesday blamed China for targeting U.S. farmers in an effort to undermine trade negotiations with Beijing, and he urged critics of his escalating trade war to “be cool.”

“China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S.” Trump posted in one of a series of tweets on Wednesday. “They are being vicious in what will be their failed attempt. We were being nice – until now!”

The tweets come as Trump’s trade policy is increasingly under fire from Republicans on Capitol Hill, especially those representing farm states where China’s retaliatory tariffs are affecting crop prices. The Trump administration rolled out a $12 billion subsidy plan on Tuesday to help farmers, but the measures were widely criticized by Republicans.

“When you have people snipping at your heels during a negotiation, it will only take longer to make a deal, and the deal will never be as good as it could have been with unity,” Trump wrote Wednesday. “Negotiations are going really well, be cool. The end result will be worth it!”

Trump is set to meet Wednesday with European Commission President Jean-Claude Juncker after months of criticism directed at European tariffs. The two leaders are expected to discuss Trump’s threat to impose tariffs on European cars.

There is also a domestic political component to Trump’s trade and tariff policies.

Trump political advisers are clearly worried about how tariffs are affecting farmers, key sources of votes throughout the Midwest. They could be decisive as Republicans face tough election battles in November to keep control of the House and Senate.

The president himself expressed a rare note of anxiety in a speech to veterans Tuesday in Kansas City, Mo., a key agricultural state.

“The farmers will be the biggest beneficiary” of his trade policies, Trump said. “Watch. We’re opening up markets. You watch what’s going to happen … Just be a little patient.”

Trump travels Thursday to two more agriculture states, Iowa and Illinois.

[USA Today]

Trump-Created European Trade Crisis Averted by Fake Deal

Last night, the Trump administration announced with maximum fanfare that the trade war with the European Union was over. “This was a big day for free and fair trade!,” tweeted an excited President Trump. For all the hype and surprisingly credulous press the announcement attracted, it amounts to little more than a face-saving truce. If you’re looking for any details as to how this will work, too bad, they don’t exist.

The trade “deal” follows the script of the ballyhooed North Korean nuclear “deal” from last month. The cycle begins with bellicose Trumpian threats designed to increase American leverage. This leads to negotiations, which produce an impossibly ambitious and thoroughly vague “solution” that allows Trump to boast that he has averted a crisis of his own making.

In North Korea’s case, the “agreement” involves a nonverifiable promise to denuclearize the Korean peninsula at some future date. The trade “deal” is a promise to eliminate tariffs between the United States and the European Union. In theory, it would be possible to eliminate all tariffs between the E.U. and the U.S., but the process would take many years to complete — the European Union has 28 member states, all of which have internal political dynamics and constituent business interests to navigate.

In the meantime, the practical meaning of Trump’s deal is that both sides will halt the cycle of retaliatory tariffs. Despite Trump’s belief that his methods had produced valuable leverage for his own position, the spat had imposed acute pain on his own constituents — especially farmers, who have suffered dire costs from retaliatory tariffs. The president had taken to pleading with his supporters to stop complaining and let him sue for peace:

He was begging his allies to stop complaining about the tariffs. Like a dog!

Trump’s campaign adviser Stephen Moore told the Washington Post yesterday, “The one thing I do know about Trump is that he’s not going to back down.” Characteristically, the one thing Moore knows turned out to be completely false.

But it is easy to see how Trump plans to turn this shambolic retreat into another famous victory. Begin with the assumption that the European Union has been screwing the Great Companies of the United States with one-sided and very, very unfair tariffs for decades. (This is not true.) Then proceed to the assumption that Trump has produced a deal to eliminate all these tariffs. (Completely unrealistic.) By stacking the two fantasies atop each other, you arrive at a reality in which Trump has made a Great Deal to make Americans win again.

http://nymag.com/daily/intelligencer/2018/07/trump-created-european-trade-crisis-averted-by-fake-deal.html

Trump: ‘What You’re Seeing and What You’re Reading Is Not What’s Happening’

President Donald Trump defended his tariffs today in a speech to the VFW with multiple shots at the “fake news,” including a pretty remarkable line about how people shouldn’t believe any of it.

Trump said people shouldn’t “believe the crap you see from these people, the fake news” before defending the tariffs.

He talked about China, called the EU a “big abuser,” and then said, “But it’s all working out. And just remember, what you’re seeing and what you’re reading is not what’s happening.”

“What you’re seeing and what you’re reading is not what’s happening.”

You can watch Trump actually saying that above, via Fox News.

[Mediaite]

Reality

“The party told you to reject the evidence of your eyes and ears. It was their final, most essential command.”

—George Orwell

Dutch Prime Minister Tells Trump “No!” and That He Is Wrong on Trade

Dutch Prime Minister Mark Rutte has dispensed with diplomatic niceties during a joint press conference with U.S. President Donald Trump.

The routine White House discussion with reporters took a slightly passive-aggressive turn as Trump extolled the virtues of his plan to slap tariffs on steel and aluminum coming into the U.S. from the European Union.

Trump said he would discuss the dispute with EU officials before saying: “If we do work it out, that’ll be positive, and if we don’t, it’ll be positive also because…” before Rutte interjected by saying “No!”

“Well, just think about those cars that pour in here, and we’ll do something, right?” Trump replied.

But Rutte was not having it and said through gritted teeth: “It’s not positive,” adding, “We have to work something out.”

Trump then moved to shake the prime minister’s hand and the awkward interaction was over.

It showed the level of discontent among European leaders at Trump’s trade move,which he is threatening to apply to cars.The EU has threatened to retaliate  with tariffs worth $294 billion on a number of U.S. exports.

In a paper released this week, the European Commission said Trump’s tariffs would be “self-defeating and would weaken the U.S. economy.

“The European Union would therefore caution the United States against pursuing a process which could result in yet another disregard of international law, which would damage further the reputation of the United States and which the international community cannot and will not accept,” the EU report said.

There is domestic concern, too, with the U.S. Chamber of Commerce criticizing how Trump handled global disputes. It said that the tariffs he wants to impose could hurt the American economy. Trump is also threatening to impose tariffs on vehicles.

[Newsweek]

Trump rips Canada, NATO in Singapore tweetstorm

President Donald Trump started his day in Singapore on Monday blasting the Canadian Prime Minister and slamming NATO just after meeting with the U.S. allies at the G-7 meeting in Quebec.

“Fair Trade is now to be called Fool Trade if it is not Reciprocal,” Trump tweeted Monday morning in Singapore. “According to a Canada release, they make almost 100 Billion Dollars in Trade with U.S. (guess they were bragging and got caught!). Minimum is 17B. Tax Dairy from us at 270%. Then Justin acts hurt when called out!”

Trump was referring to Prime Minister Justin Trudeau in the tweet.

The president has accused Canada of taking advantage of American workers through their trade practices.

According to the U.S. trade representative, however, there was an $8.4 billion U.S. trade surplus with Canada on goods and services in 2017.

Trump also took aim at NATO for relying too heavily on the U.S. for their security.

“The U.S. pays close to the entire cost of NATO-protecting many of these same countries that rip us off on Trade (they pay only a fraction of the cost-and laugh!),” Trump tweeted. “The European Union had a $151 Billion Surplus-should pay much more for Military!”

The U.S. pays 22% of NATO’s budget — higher than any other nation.

The U.S. has pushed NATO member nations to spend at least 2 percent of their GDP — a benchmark some have been unable to meet.

Trump was in Singapore preparing for his meeting with North Korean leader Kim Jong Un.

“Great to be in Singapore, excitement in the air!” Trump wrote.

[New York Post]

Trump told Macron EU worse than China on trade

President Donald Trump told French President Emmanuel Macron that the European Union is worse than China on trade during a conversation that portended the tense end to this year’s G7 summit.

In a meeting at the White House during the French president’s visit to Washington in April, Macron suggested the United States and France should work together to resolve shared trade problems with Beijing, prompting Trump to make his remark, a person in the room told CNN.

Trump told Macron during their meeting in Washington that there are too many German cars in the United States, the source previously told CNN. The source did not say Trump explicitly said he wanted all German-made cars out of the US. Trump focused his conversation with Macron on German trade for about 15 minutes in the one-hour meeting.

Trump has been on a tear about German trade and cars in particular, bringing up the issues with other European leaders with whom he has met over the last few months, the source said.

The details of the conversation, which Axios previously reported, come amid fears of a looming trade war over the Trump administration’s move to impose steep tariffs on steel and aluminum imports from the European Union, Canada and Mexico. Those tensions boiled over during the G7 summit in Canada on Saturday, with Canadian Prime Minister Justin Trudeau and European leaders reaffirming plans to institute retaliatory measures and Trump lashing out in response byrefusing to endorse the group of industrialized nations’ communique.

That, in turn, prompted harsh reactions from European officials and members of Congress, including Republican Sen. John McCain, who said Americans would continue to stand with the nation’s historical allies.

“To our allies: bipartisan majorities of Americans remain pro-free trade, pro-globalization & supportive of alliances based on 70 years of shared values,” the Arizona senator tweeted. “Americans stand with you, even if our president doesn’t.”

Senior Trump aides escalated the rhetoric on Sunday morning’s news shows, with chief economic adviser Larry Kudlow calling Trudeau’s remarks “a betrayal” on CNN’s “State of the Union” and top trade adviser Peter Navarro saying on “Fox News Sunday” that “there’s a special place in hell” for the Canadian leader.

Trump, who is in Singapore for negotiations with North Korea, continued to rip into US trading partners late Sunday night Eastern Time, repeating complaints about the US trade deficit and contributions to NATO.

“Fair Trade is now to be called Fool Trade if it is not Reciprocal,” Trump wrote in a series of postson Twitter. “According to a Canada release, they make almost 100 Billion Dollars in Trade with U.S. (guess they were bragging and got caught!). Minimum is 17B. Tax Dairy from us at 270%. Then Justin acts hurt when called out!”

“Why should I, as President of the United States, allow countries to continue to make Massive Trade Surpluses, as they have for decades, while our Farmers, Workers & Taxpayers have such a big and unfair price to pay?” the President continued. “Not fair to the PEOPLE of America! $800 Billion Trade Deficit … And add to that the fact that the U.S. pays close to the entire cost of NATO-protecting many of these same countries that rip us off on Trade (they pay only a fraction of the cost-and laugh!). The European Union had a $151 Billion Surplus-should pay much more for Military!”

[CNN]

Trump Shocks Leaders With Trudeau Insult to Upend G-7 Summit

President Donald Trump told U.S. officials not to endorse the Group of Seven’s final communique and accused Canadian Prime Minister Justin Trudeau of being dishonest, escalating a trade spat that had simmered throughout the two-day meeting.

Trump, who is on a plane to Singapore, unleashed two Twitter posts about two hours after Trudeau spoke, saying the U.S. would look at tariffs on automobiles that he said were “flooding the U.S. market.”

His comments threaten to undermine a grouping that has long acted as a defender of the global system of trade rules, and cause fresh friction with his northern neighbor as tensions percolate over efforts to redraw the North American Free Trade Agreement.

“Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!,” Trump said on his Twitter account on Saturday evening.

The reference to cars is not new. Trump last month directed Commerce Secretary Wilbur Ross to initiate a national-security investigation into imports of cars, trucks and vehicle parts that could possibly lead to tariffs. Canada would be among the biggest losers from such a move as the second-largest supplier of foreign vehicles to the U.S.

The investigation into cars is seen by some as a way for the U.S. to gain leverage in the talks to revamp Nafta, including Mexico, which is the largest source of U.S. auto imports.

The investigation into cars is seen by some as a way for the U.S. to gain leverage in the talks to revamp Nafta, including Mexico, which is the largest source of U.S. auto imports.

Trump’s comments on Saturday came shortly after Trudeau, who was hosting the G-7 meeting in Canada, had projected an image of cooperation. At his closing press conference as the summit’s chair, Trudeau announced all G-7 nations had worked hard to finalize a joint statement, which largely committed the nations to keep talking on trade.

Still, Trudeau also gave an account of his discussions with the U.S. president. Trudeau said he told Trump in candid conversations that U.S. steel and aluminum tariffs imposed this month were “insulting” and that Canada will move forward with counter-tariffs.

Trump said that retaliation is a “mistake,” according to Trudeau.

Canada is “polite, we’re reasonable but we also will not be pushed around,” Trudeau added.

Trudeau responded with a written statement, saying his comments in public and in private with Trump were “nothing he hasn’t said before” and that he was “focused on everything we accomplished here at the G-7 summit.”

Trump left the summit early Saturday, before it officially ended, to head to Singapore to meet with North Korean leader Kim Jong Un on June 12.

Copies of the communique stamped with “approuve,” or approved in French, were being circulated around the G-7 media center in Quebec City as Trump made his order on Twitter. The statement had been published online before Trump commented.

“PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, “US Tariffs were kind of insulting” and he “will not be pushed around.” Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!,” Trump said in a second post.

Trump has complained repeatedly — including throughout the summit — about Canada’s protected dairy sector, citing 270 percent tariffs that he says stand in the way of American farmers accessing that market.

Canada’s system of quotas and tariffs for dairy, poultry and eggs, known as supply management, is something of a sacred cow — all major political parties support it, and, given the value of existing quotas, farm groups erupt when changes are discussed. Trump has called for the full dismantling of that system over 10 years.

[Bloomberg]

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