Donald Trump accuses Canadians of smuggling shoes home from U.S.

U.S. President Donald Trump has called Canada “brutal,” accused Canada’s prime minister of being “weak,” and taken aim at Canada’s supply management system for dairy.

Now he is calling Canadians shoe smugglers.

Speaking to the National Federation of Independent Businesses in Washington on Tuesday, U.S. President Donald Trump claimed Americans are “treated horribly” by Canadians who return home with U.S.-purchased shoes they have smuggled across the border. (CHRIS KLEPONIS – POOL / GETTY IMAGES)

In the latest salvo in the president’s multi-front attack on Canadian trade practices, Trump told a story Tuesday about Canadians who cross the U.S. border to buy shoes. The tale left trade experts and apparel industry officials scratching their heads.

Trump launched into it while delivering a rambling speech, focused on illegal immigration, to the National Federation of Independent Businesses.

“There was a story two days ago in a major newspaper talking about people living in Canada coming to the United States and smuggling things back into Canada because the tariffs are so massive. The tariffs to get common items back into Canada are so high that they have to smuggle ‘em in,” Trump said, apparently referring to an essay in the New York Post by Canadian journalist Isabel Vincent. “They buy shoes, then they wear them. They scuff ’em up. They make them sound old or look old. No, we’re treated horribly.”

There was a grain of truth to the story. Crossing the border to shop in the U.S. and then sneaking an item or two past customs on the way back is a time-honoured Canadian pastime. On Twitter, several Canadians immediately confessed to making furtive attempts to make their new shoes look well-worn.

But there is no indication that any of this has anything to do with tariffs. And Trump’s claim that this shop-and-hide practice results in the U.S. being mistreated makes no sense at all, trade and apparel experts said.

The Footwear Distributors and Retailers of America, the U.S. industry’s lobby group, said in a statement: “The president seems misinformed about footwear trade.”

“On behalf of the American footwear industry, we welcome anyone from anywhere to come and purchase shoes in America. It helps both our brands and retailers grow. Period,” the group said. “We don’t care where they wear them, and if they get scuffed up all the better so we can sell them more.”

Under NAFTA, there are no Canadian tariffs on shoes manufactured in the U.S. Since more than 95 per cent of shoes sold in the U.S. are made abroad, any Canadian shoppers avoiding Canada’s tariffs upon their return home are actually avoiding tariffs on foreign-made items, mostly made-in-Asia goods.

In other words, Trump was complaining about Canadians spending money at U.S. stores and then refusing to pay the Canadian government for goods made in other countries — a process that does not victimize the U.S. in any way.

“There doesn’t seem to be an issue. I’m not sure why we’re talking about this. Yet again, we’re being led down this path when there really isn’t anything there,” said Bob Kirke, executive director of the Canadian Apparel Federation. “I feel like I’m going down the rabbit hole here.”

In a tweet to Prime Minister Justin Trudeau, the U.S. industry group added: “The US Footwear Industry welcomes you and all Canadians to come buy shoes in America! As many as you want — and scuff them up if you want, we can sell you more!”

Kirke said he doesn’t think “there’s any negotiation or discussion around footwear tariffs or rules of origin in the current NAFTA negotiation. Zero. Zip.” And he said lower shoe prices in the U.S. are a result of the competitiveness of the U.S. retail market, not tariffs.

“Both countries have tariffs on imported footwear,” said Karl Littler, vice-president of public affairs at the Retail Council of Canada. “His critique of Canada he might level at the U.S. system as well.”

Canadians don’t have to pay duties on their first $200 in purchases if they’re in the U.S. for 24 hours. They get an $800 exemption if they’re away 48 hours.

Another cross-border shopping issue has been significant in NAFTA talks: Canada’s $20 threshold, one of the lowest in the world, for duties on shipments mailed from abroad. The U.S. threshold is $800, and the Trump administration has called on Canada to raise its own.

On Tuesday, Trump again floated the idea of making separate deals with Canada and Mexico rather than preserving the North American Free Trade Agreement. He also made some of his usual false claims about the trade balance with Canada, and he again criticized Canada’s dairy tariffs.

“We can no longer be the stupid country. We want to be the smart country. So hopefully we’ll be able to work it out with Canada. We have very good relationships with Canada, we have for a long time, and hopefully that’ll work out, but Canada’s not going to take advantage of the United States any longer. And Mexico’s not going to take advantage of the United States any longer,” he said.

Trump also scoffed at Trudeau’s argument against the steel and aluminum tariffs that Trump imposed on “national security” grounds. Trudeau has invoked the Canadian soldiers who have fought and died with American soldiers. On Tuesday, Trump paraphrased the argument with a hint of mockery.

“By the way, Canada, they like to talk,” Trump said to laughter. “They’re our great neighbour. They fought World War II with us. We appreciate it. They fought World War I with us, and we appreciate it. But we’re protecting each other.”

[Toronto Star]

Trump says he ‘hates’ family separations at border

President Donald Trump on Friday condemned the practice of separating children from their parents at the border and reiterated an incorrect assertion that the Democrats are to blame for the practice.

“I hate the children being taken away. The Democrats have to change their law. That’s their law,” Trump said to a group of reporters on the White House lawn in an impromptu appearance on “Fox and Friends“ Friday morning.

The “zero tolerance” approach to immigration that the Trump administration adopted resulted in the controversial policy of border agents separating families. But Trump insisted that the ball is in the Democrats’ court.

“The Democrats gave us the laws. Now, I want the laws to be beautiful, humane, but strong. I don’t want bad people coming in,” Trump said. “We can solve that problem in one meeting. Tell the Democrats and your friends to call me.”

House Republicans on Thursday released a bill intended to keep migrant children with their families if they are detained. Immigration-rights advocates, however, have criticized the proposal for “prolonging detention and hastening deportation” because it allows children to be held in detention centers with their parents.

Thursday night, White House press secretary Sarah Huckabee Sanders also pushed forward the administration’s message that Democrats are responsible for the separation of families in a tense exchange with White House reporters.

“Illegal alien families is the product of the same legal loopholes that Democrats refuse to close. And these laws are the same that have been on the books for over a decade,” she said.

[Politico]

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 calls for Russia to be reinstated to G-7, threatens allies on trade

President Trump on Friday said Russia should be readmitted to the Group of Seven leading economies, breaking with other world leaders who have insisted that Moscow remain ostracized after its 2014 annexation of Crimea.

“Now, I love our country. I have been Russia’s worst nightmare . . . . But with that being said, Russia should be in this meeting,” Trump said Friday as he left the White House. “Whether you like it or not, and it may not be politically correct, but we have a world to run . . . . They should let Russia come back in.”

Trump’s comments, made just hours before he arrived in Canada for the annual G-7 summit, have further scrambled talks with other leaders, most of whom were already fuming about the U.S. leader’s protectionist trade policies. But in a sign that European unity against Trump is cracking, new Italian Prime Minister Giuseppe Conte said he agreed with Trump and wanted Russia back in the fold.

U.S. intelligence officials believe Russia interfered in the 2016 election, and part of this year’s G-7 summit was supposed to focus on protecting democracies from foreign meddling. Special counsel Robert S. Mueller III is investigating Russian interference efforts, including whether Trump’s campaign colluded in any way with Russian officials, a probe that has become an obsession for the president.

Trump’s suggestion that Russia be readmitted to the G-7 was heavily criticized by political opponents back home, including Senate Minority Leader Charles E. Schumer (D-N.Y.), who said Trump was “turning our foreign policy into an international joke.”

“We need the president to be able to distinguish between our allies and adversaries, and to treat each accordingly,” Schumer said. “On issue after issue, he’s failed to do that.”

Sen. John McCain (R-Ariz.) also spoke out against Trump’s suggestion, saying in a statement that “Vladimir Putin chose to make Russia unworthy of membership in the G-8 by invading Ukraine and annexing Crimea. Nothing he has done since then has changed that most obvious fact.”

McCain, the chairman of the Senate Armed Services Committee, was among the first lawmakers to call for Russia’s ejection from the G-8.

In the past several months, Trump has pushed to completely overturn many of the post-World War II institutions put in place to strengthen global ties. These tensions have created immense strain ahead of the summit in Canada, with top leaders questioning if they are in the midst of a transformational disruption brought on by the United States.

“The rules-based international order is being challenged,” European Commission President Donald Tusk told reporters here. “Quite surprisingly, not by the usual suspects but by its main architect and guarantor, the U.S. … We will not stop trying to convince our American friends and President Trump that undermining this order makes no sense at all.”

In response to Trump’s proposal for Russia, Tusk said it would only make the group more divisive.

“For today, I think it’s much more important to convince our American partners to strengthen our format as guarantor of world order, than to look for something new, more challenging, more difficult,” he said.

Moscow didn’t rush to publicly embrace Trump’s pronouncement. Kremlin spokesman Dmitry Peskov said Russia preferred to emphasize “other formats” of international talks. Lawmaker Konstantin Kosachev, chairman of the foreign relations committee in Russia’s upper house of parliament, said the country should only rejoin the group on its own terms — “with sanctions removed and interests respected.”

“The G-8 needs Russia much more than Russia needs the G-8,” Kosachev said in a statement.

Some other members of the G-7, including the leaders of the United Kingdom, Germany and France, are unlikely to agree to Trump’s call for readmitting Russia, meaning the suggestion could further divide the group and make it even more ineffectual.

In an interview with Sky News on Friday, British Prime Minister Theresa May said it was important to “engage with Russia.”

But, she added, “Let’s remember why the G-8 became the G-7. And before discussions could begin on any of this, we would have to ensure Russia is amending its ways and taking a different route.”

A version of the G-7 or G-8 has existed since the 1970s, designed to try to build a consensus among world leaders to tackle global challenges.

Trump has sought to improve relations between the United States and Russia since taking office, though he has faced steep criticism from lawmakers in both parties for doing so. The U.S. government and other nations have imposed strict sanctions on Russia related to its annexation of Crimea from Ukraine.

Trump on Friday also reiterated his plans to take a tough stance on trade with U.S. allies at the summit, threatening again to withdraw from the North American Free Trade Agreement.

“We’re going to deal with the unfair trade practices . . . . We have to change it, and they understand it’s going to happen,” Trump said. “If we’re unable to make a deal, we’ll terminate NAFTA. We’ll make a better deal.”

The comments marked the latest in a string of declarations in recent days that have completely redirected the focus the G-7, an organization Trump has shown little regard for since taking office last year.

In an earlier Twitter post, Trump said the United States would emerge victorious if other nations refused to accede to his trade demands, suggesting that he plans to employ a take-it-or-leave-it bargaining position with other world leaders at the summit here.

“Looking forward to straightening out unfair Trade Deals with the G-7 countries,” Trump wrote. “If it doesn’t happen, we come out even better!”

Thursday evening, when tensions between Trump and French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau appeared to be boiling over, the U.S. leader vowed to impose new tariffs and other economic penalties against Canada and the European Union if they did not allow more U.S. imports into their countries.

“Take down your tariffs & barriers or we will more than match you!” he wrote on Twitter. He did not specify what products he could target.

Trump effectively upended the two-day G-7 summit even before it began by raising the prospect of refusing to sign on to a joint statement with other leaders asserting commonly shared principles and values.

On Friday morning, a planned bilateral meeting between Trump and Macron was postponed, the White House said, because Trump was running behind. Aides said they were working to reschedule what is expected to be a tense meeting later in the day.

Macron, Trudeau and other world leaders spent much of 2017 tiptoeing around the new U.S. president, aware of his “America First” agenda but hoping to draw him closer to multinational organizations that they believe can best address global issues. But in recent weeks, there have been signs that world leaders have scrapped that approach and now plan to deal with Trump in a more adversarial way, particularly after the White House announced it would begin imposing tariffs on steel and aluminum imports from U.S. allies beginning in June.

Macron on Thursday said Trump was isolating the United States and suggested that foreign leaders might simply wait until Trump’s time in the White House has concluded before reengaging with the United States. Trump, meanwhile, said Trudeau was acting “indignant” and attacked the United States’ northern neighbor in a series of Twitter posts, focusing in part on Canadian dairy policy.

Trump is now engaged in a series of trade wars with numerous countries in Europe, North America and Asia, which could affect the flow of hundreds of billions of dollars in goods, including automobiles, agricultural products and technology. He wants Europe and Japan to lower tariffs on imports of automobiles. He wants China to buy more agriculture and energy products from the United States. He is pushing Mexican leaders for a range of changes to NAFTA, and he wants that entire pact to expire after five years.

His view is that other countries have imposed unfair tariffs limiting U.S. imports for decades but that the United States has unwittingly allowed those countries to bring low-cost goods into the country, hurting American companies and workers.

Foreign leaders are aware of the shaky ground Trump is on when he levels these trade threats, as a growing number of congressional Republicans have expressed outrage, and some are trying to intervene to strip away his powers. So far, Trump has held these lawmakers, including Sen. Bob Corker (R-Tenn.), at bay, but U.S. business groups — worried about the prospect of higher costs driven by Trump’s trade threats — are pushing Congress to act.

Trump is also scheduled to meet with Trudeau on Friday, and then he will leave the summit early Saturday, an unexpected schedule revision that will pull him out of discussions on climate change.

The United States is the world’s largest economy, giving Trump outsized influence with any decisions he makes to restructure trade relationships. Foreign leaders face difficult decisions over whether to agree to some of Trump’s trade demands to preserve relationships or refuse and risk Trump’s ire. The U.S. president, in his first 16 months in office, has made clear that few allies will be spared from his demands.

The G-7 and the newer, larger G-20 have had limited success in recent decades forming coalitions and resolving world issues, but they do strive to provide a forum for discussions. Trump has rejected many international forums, and during the G-7 summit in Italy last year he rode a golf cart behind the other six leaders as they walked down the street.

Still, the attacks Trump leveled at his allies this week have raised the notion for many that Trump is completely rejecting this model.

“Trump’s willingness to walk away from the key elements of the postwar international governance system suggest a major disruption is coming,” said Eswar Prasad, a trade expert and professor at Cornell University.

The Kremlin, meanwhile, appears to be enjoying an “I told you so” moment as it watches Trump’s escalating conflict with America’s closest allies. Putin has long spoken about the dangers of a world dominated by the United States, and on Thursday he said that with Trump’s metals tariffs, Europeans were getting their comeuppance for showing excessive deference to Washington — and getting a taste of the way the United States has long treated Russia.

“Our partners probably thought that these counterproductive policies would never affect them,” Putin said in his annual televised call-in show. “No one wanted to listen, and no one wanted to do anything to stop these tendencies. Here we are.”

[Washington Post]

Trump says Canada’s Trudeau is ‘being so indignant’ in trade spat

U.S. President Donald Trump accused Canadian Prime Minister Justin Trudeau on Thursday of “being so indignant,” as the two leaders prepared for a Group of Seven summit in Quebec on Friday that is likely to center on trade disagreements.

“Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things … but he doesn’t bring up the fact that they charge us up to 300% on dairy — hurting our Farmers, killing our Agriculture!” Trump said on Twitter.

[Reuters]

Trump wants a total ban on German luxury car imports

US President Donald Trump wants to escalate his trade war to include a total ban on German luxury cars, says a report in WirtschaftsWoche. According to the German publication, which says its report results from talking to several unnamed US and European diplomats, during French President Macron’s recent visit to Washington Trump told him that he would “maintain his trade policy until no Mercedes models rolled on Fifth Avenue in New York.”

This news follows news last week that Trump had already asked Commerce Secretary Wilbur Ross to launch an investigation into the national security threat posed by imported cars, trucks, and auto parts, as well as wanting to add 25 percent tariffs on imported vehicles. WirtschaftsWoche‘s article points out that just prior to his inauguration in 2017, Trump railed against the Mercedes-Benz vehicles he saw in New York.

When you walk down Fifth Avenue, everyone has a Mercedes-Benz in front of their house.” But that’s not reciprocity. “How many Chevrolets do you see in Germany? Not too many, maybe none at all, you do not see anything over there, it’s a one-way street,” said the real estate billionaire. Although he is for free trade, but not at any price: “I love free trade, but it must be a smart trade, so I call him fair.

The US market is extremely important for luxury German automakers, and a ban on importing new vehicles would be devastating for brands like Audi, BMW, and Mercedes-Benz. But even if Trump gets his wish, an import ban is highly unlikely to have the effect he’s looking for. Both BMW and Mercedes-Benz maintain large manufacturing presences here in the US, in part because any vehicles they build and sell here are exempt from existing import tariffs.

BMW’s factory in Spartanburg, South Carolina, employs over 10,000 workers and produced more than 371,000 cars in 2017. The Mercedes-Benz factory in Tuscaloosa, Alabama, builds a similar number of vehicles, and just last year parent company Daimler invested $1.3 billion expanding the facility. Daimler also has a new factory in Charleston, South Carolina building Sprinter vans.

Daimler declined to comment on the proposed ban, but a spokesperson pointed out that the company supports more than 150,000 jobs here, and 22.8 percent of Daimler’s shareholders are from the US. Audi and BMW had not responded to a request for comment by the time of publication.

[Ars Techina]

Trump Stands By His ‘Muslim Ban’ Campaign Rhetoric: ‘There’s Nothing to Apologize For’

President Donald Trump apparently stood by his campaign calls for a “Muslim ban” in a news conference with Nigerian President Muhammadu Buhari on Monday, telling a reporter he has “nothing to apologize for” regarding his rhetoric.

The first question of his joint presser went to Washington Times reporter S.A. Miller, who pointed out that the opposition to the Trump administration’s travel ban in court rests on his campaign rhetoric calling for the ban of Muslims from the U.S.

“The lawyers for your opponents said if you would simply apologize for your rhetoric from the campaign, the whole case would go away,” Miller noted.

“I don’t think it would,” Trump replied. “And there’s no reason to apologize. Our immigration laws in this country are a total disaster, they’re laughed at all over the world, they’re laughed at, for their stupidity.”

“We have to have strong immigration laws,” Trump continued. “So I think if I apologized it wouldn’t make ten cents of a difference to them. There’s nothing to apologize for. We have to have strong immigration laws to protect our country.”

Despite the administration’s claims that its immigration ban on seven Muslim-majority countries is not a ban on Muslims, it has struggled against opponents in court cases who use Trump’s campaign rhetoric calling for a “Muslim ban” against him.

[Mediaite]

Media

Trump floats September shutdown for ‘border security’

President Donald Trump told supporters at a speech on Saturday that if Congress did not meet his funding demands for border security, he may support a government shutdown this fall.

Trump was speaking in Washington Township, Michigan, at the same time that the White House correspondents’ dinner was taking place back in Washington, DC, with some lawmakers and current and former members of his administration in attendance. During his remarks, he alluded to the appropriations deadline at the end of September.

“We have to have borders, and we have to have them fast,” he said. “And we need security. We need the wall. We’re going to have it all. And again, that wall has started. We got 1.6 billion. We come up again on September 28th, and if we don’t get border security, we’ll have no choice. We’ll close down the country because we need border security.”

Despite his campaign pledge to make Mexico pay for his proposed wall on the US-Mexico border, Trump has demanded that Congress fund the project. Last month, he signed a bill that funds the government through September after expressing frustration with a spending package that included $1.6 billion for border security, but not the wall.

In his speech Saturday night, Trump railed against the Democratic Party on a range of issues, including immigration.

“A vote for a Democrat in November is a vote for open borders and crime,” Trump said.

He continued, “The open border policies of the Democratic Party are not just wrong, they’re dangerous, and they’re in fact deadly. They’re deadly.”

[CNN]

Trump touts $1.6B for wall funding, blasts ‘Dem giveaways’

President Trump marked the $1.3 trillion budget agreement Wednesday night by touting funding for a wall on the southern border while blasting “Dem giveaways.”

“Got $1.6 Billion to start Wall on Southern Border, rest will be forthcoming,” Trump tweeted.

Most importantly, got $700 Billion to rebuild our Military, $716 Billion next year…most ever. Had to waste money on Dem giveaways in order to take care of military pay increase and new equipment.”

Trump also added that, “Democrats refused to take care of DACA. Would have been so easy, but they just didn’t care. I had to fight for Military and start of Wall.”

The Trump administration ended DACA — Deferred Action for Childhood Arrivals — last year. The program protected nearly 800,000 young undocumented immigrants brought to the US as children from deportation.

[New York Post]

Reality

From Daily Kos.

Donald Trump is trying to sell the spending bill as a victory for his precious border wall. As is so often the case, he’s lying and the real question is whether he’s lying more to himself or more to the rest of us. Trump tweeted that “Got $1.6 Billion to start Wall on Southern Border, rest will be forthcoming.” In reality:

… Democrats pointed out that only $641 million of that money is designated for 33 miles of “new fencing or levees” ― specifically not a concrete wall. The rest of the money is for repairing or replacing existing fencing or border security technology.

Not just Democrats, though:

“Are we going to continue to fund sanctuary cities? Are we going to continue to fund Planned Parenthood? Are we going to continue to raise the debt to levels that quite frankly are unsustainable and bankrupt our country?” [House Freedom Caucus Chair Mark Meadows] said. “There is really no wall funding. People will try to spin it as there is wall funding, but the [$1.6 billion] has been in there for some time.”

Trump Threatens to End American Aid: ‘We’re Watching Those Votes’ at the U.N.

President Trump threatened on Wednesday to cut off American aid to any country that votes in favor of a resolution at the United Nations General Assembly denouncing his recent decision to formally recognize Jerusalem as the capital of Israel.

Mr. Trump’s statement, delivered at his last Cabinet meeting of the year, followed a letter from the American ambassador to the United Nations, Nikki R. Haley, in which she warned that the United States would take note of any country that votes in favor of the measure.

“All these nations that take our money and then vote against us at the Security Council or the assembly, they take hundreds of millions of dollars and billions of dollars and they vote against us,” Mr. Trump said. “Well, we’re watching those votes. Let them vote against us, we’ll save a lot. We don’t care.”

Mr. Trump added that “people are tired of the United States — people that live here, our great citizens that love this country — they’re tired of this country being taken advantage of and we’re not going to be taken advantage of any longer.”

It is difficult to see how Mr. Trump could deliver on his threat to cut financial assistance, since it could involve cutting off aid to a number of strategic allies. The United States has given $77.4 billion in foreign aid to Egypt between 1948 and 2016, according to the Congressional Research Service, including about $1.3 billion in annual military aid since 1987.

The General Assembly is scheduled to vote on Thursday on a resolution that would condemn Mr. Trump’s recognition of Jerusalem, which is fiercely contested by Israelis and Palestinians, and urge other countries not to move their embassies to that city from Tel Aviv.

Mr. Trump said earlier this month that the United States would move its embassy to Jerusalem, though administration officials said a move was several years away because of logistical issues in constructing a new embassy complex.

On Monday, the United States used a rare veto to block a resolution in the Security Council calling for the administration to reverse its decision on Jerusalem. The vote on the resolution, which was drafted by Egypt, was 14 to 1, suggesting there would be a similarly lopsided margin against the United States in the 193-member General Assembly.

[The New York Times]

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