Category: Trade

Trump doubles tariffs on Turkey

President Trump said Friday that the U.S. will double tariffs on steel and aluminum imported from Turkey, as relations between the NATO allies worsen.

Trump tweeted Friday that he authorized raising tariffs on Turkish steel to 50 percent and on aluminum to 20 percent as the country’s currency falls rapidly against the U.S. dollar.

“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!,” Trump tweeted.

“As he stated, the president has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey,” said White House spokesperson Lindsay Walters in a statement.

“Section 232 tariffs are imposed on imports from particular countries whose exports threaten to impair national security as defined in Section 232, independent of negotiations on trade or any other matter.”

The lira dropped 11 percent against the U.S. dollar Friday as Turkish President Recep Erdogan warned of a global economic war against his country. Trump’s tweet brought the lira down another 3 percentage points, according to CNBC.

Turkish financial markets have panicked over concerns about the country’s fiscal health, the souring of U.S.-Turkey relations, and Erdogan’s economic policy, according to the Associated Press.

Erdogan said the currency drop was the result of a “campaign” to injure Turkey and called on citizens to convert their U.S. dollars, euros and gold into lira, according to the AP.

“If they have their dollar, we have the people, we have Allah,” Erdogan said.

The U.S.-Turkey alliance has become increasingly strained since 2017, reaching new lows this month over the imprisonment of an American pastor.

The Treasury Department imposed financial sanctions on the Turkish interior and justice ministers after the government refused to let detained Christian pastor Andrew Brunson return to the U.S.

Brunson had spent 23 years as a pastor in Turkey before he was detained more than a year ago. The Turkish government alleged that he was involved in a failed coup against Erdogan in 2016, and Fethullah Gülen, an Islamic cleric Erdogan blames for the failed revolt.

The Turkish government transferred Brunson from prison to house arrest in July, but refused his and the U.S. government’s requests to return to America.

Tensions also flared in May 2017 after Erdogan’s personal security forces attacked demonstratorsprotesting his visit to the U.S. at the Turkish embassy in Washington, D.C.

Trump imposed tariffs of 25 percent and 10 percent on imported steel and aluminum respectively in March. The White House issued those tariffs under Section 232 of the Trade Expansion Act, which empowers the president to impose duties on imports to protect U.S. national security.

Key U.S. allies such as Canada, Mexico, and the European Union, which includes Turkey, were exempted from the tariffs until May. Those nations have responded with retaliatory tariffs on U.S. exports.

[The Hill]

Trump Insists Tariffs Will Make Our Country ‘Much Richer’: ‘Only Fools Would Disagree’

On Saturday, President Donald Trump praised his tariff plan and insisted, “steelworkers are working again, and big dollars are flowing into our Treasury.”

“Tariffs are working far better than anyone ever anticipated,” Trump tweeted out. “China market has dropped 27% in last 4 months, and they are talking to us. Our market is stronger than ever, and will go up dramatically when these horrible Trade Deals are successfully renegotiated. America First.”

Then in the first follow-up tweet, he added: “Tariffs have had a tremendous positive impact on our Steel Industry. Plants are opening all over the U.S., Steelworkers are working again, and big dollars are flowing into our Treasury. Other countries use Tariffs against, but when we use them, foolish people scream!”

He was not done yet.

A few minutes later, he tweeted again, writing, ” Tariffs will make our country much richer than it is today. Only fools would disagree. We are using them to negotiate fair trade deals and, if countries are still unwilling to negotiate, they will pay us vast sums of money in the form of Tariffs. We win either way.”

Trump then concluded: “China, which is for the first time doing poorly against us, is spending a fortune on ads and P.R. trying to convince and scare our politicians to fight me on Tariffs- because they are really hurting their economy. Likewise other countries. We are Winning, but must be strong!”

[Mediaite]

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

“I think the European Union is a foe,” Trump says ahead of Putin meeting in Helsinki

Coming off a contentious NATO summit and a trip to the U.K. in which he seemed to undercut the government of America’s closest ally, President Trump took aim at another Western institution just days before his high-stakes meeting with Russian President Vladimir Putin.

In an interview with “CBS Evening News” anchor Jeff Glor in Scotland on Saturday, President Trump named the European Union — comprising some of America’s oldest allies — when asked to identify his “biggest foe globally right now.”

“Well, I think we have a lot of foes. I think the European Union is a foe, what they do to us in trade. Now, you wouldn’t think of the European Union, but they’re a foe. Russia is foe in certain respects. China is a foe economically, certainly they are a foe. But that doesn’t mean they are bad. It doesn’t mean anything. It means that they are competitive,” Mr. Trump said at his golf club in Turnberry, Scotland.

“I respect the leaders of those countries. But, in a trade sense, they’ve really taken advantage of us and many of those countries are in NATO and they weren’t paying their bills,” he added.

On Sunday, British Prime Minister Theresa May told the BBC that Mr. Trump had encouraged her to “sue the EU” rather than negotiate over the U.K.’s departure from the bloc. May’s conservative government is deeply split over her handling of Brexit, and her hold on power was further weakened by Mr. Trump’s comments to a British tabloid that her approach had likely “killed” any chance of a new trade deal with the U.S. once Brexit is complete. (Mr. Trump tried to walk back his criticism in a joint press conference on Friday.)

At the summit of NATO allies in Brussels last week, Mr. Trump took a hard line toward member nations for failing to meet targeted defense spending goals. He claimed his tough stance had paid off in getting allies to spend more on defense, telling reporters on Thursday that members had “upped their commitments and I am very happy.”

The president kicked off the NATO summit by blasting Germany as “totally controlled” and “captive by Russia” over a natural gas pipeline project, known as the Nord Stream 2. The U.S. fears the deal could give Moscow greater leverage over Western Europe. In Saturday’s interview, the president reiterated the criticisms he made in Brussels.

“Germany made a pipeline deal with Russia. Where they’re going to be paying Russia billions and billions of dollars a year for energy, and I say that’s not good, that’s not fair. You’re supposed to be fighting for someone and then that someone gives billions of dollars to the one you’re, you know, guarding against. I think it’s ridiculous, so I let that be known also this time,” Mr. Trump told Glor. “I’ll tell you what, there’s a lot of anger at the fact that Germany is paying Russia billions of dollars. There’s a lot of anger. I also think it’s a very bad thing for Germany. Because it’s like, what, are they waving a white flag?”

German Chancellor Angela Merkel, who grew up in communist East Germany, told reporters after the president’s comments in Brussels that she had “experienced myself how a part of Germany was controlled by the Soviet Union” and said her country today made “independent policies” and “independent decisions.

In the CBS News interview, Mr. Trump also continued to criticize the special counsel’s Russia investigation, saying it is having an impact on America’s standing in the world. “I think we’re greatly hampered by this whole witch hunt that’s going on in the United States,” the president said. “I think it hurts our relationship with Russia. I actually think it hurts our relationship with a lot of countries. I think it’s a disgrace what’s going on.”

Mr. Trump heads to Helsinki on Sunday ahead of his meeting with Putin on Monday. He told Glor he has “low expectations” for the summit. “Nothing bad is going to come out of it, and maybe some good will come out,” he said.

[CBS News]

Trump fires warning shot at allies before leaving for NATO meeting: ‘US must pay less — very unfair!’

President Donald Trump railed against NATO allies before boarding Air Force One for the annual meeting in Europe.

The president has ramped up his complaints about the decades-old alliance in recent weeks, and he fired off two tweets early Tuesday before departing for the meeting with allied leaders.

“Getting ready to leave for Europe. First meeting – NATO,” the president tweeted. “The U.S. is spending many times more than any other country in order to protect them. Not fair to the U.S. taxpayer. On top of that we lose $151 Billion on Trade with the European Union. Charge us big Tariffs (& Barriers)!”

Trump will also visit Great Britain and then Helsinki, Finland, for a private, one-on-one-meeting with Russian president Vladimir Putin, whose country’s most important strategic goal is the weakening of NATO.

“NATO countries must pay MORE, the United States must pay LESS. Very Unfair!” Trump tweeted.

[Raw Story]

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]

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