Trump backs Brazilian president as he rejects aid for fighting Amazon fires

President Donald Trump gave Brazil’s Jair Bolsonaro his full backing Tuesday as South America struggles to contain wildfires wreaking havoc in the Amazon rainforest and as Bolsonaro rejected a pot of international aid to fight the blazes.

“I have gotten to know President @jairbolsonaro well in our dealings with Brazil,” Trump tweeted. “He is working very hard on the Amazon fires and in all respects doing a great job for the people of Brazil – Not easy. He and his country have the full and complete support of the USA!”

Brazil on Tuesday said it would reject$20 million in aid money offered Monday by G-7 nations to battle the massive fires that have threatened one of the world’s greatest sources of biodiversity.

“The Amazon are the lungs of the planet, and the consequences are dire for the planet,” French President Emmanuel Macron said in announcing the aid fund earlier this week. The assistance was not intended solely for Brazil, but for the nearly dozen states that make up the Amazon region in South America, including French Guiana. Canada and Britain pledged an additional $11 million and $12 million in aid, respectively, during the G-7 summit.

Bolsonaro’s decision to spurn the aid money from France and other economic giants comes amid a public spat with Macron that resulted Monday in the French president openly wishing Brazil would soon have a new leader. Bolsonaro insisted Macron had called him a liar and insulted him by questioning his handling of the crisis. The Brazilian president said that once Macron retracted some of those comments, “then we can speak,” according to The Associated Press.

Critics have accused Bolsonaro, a right-wing populist dubbed the “Trump of the tropics,” of facilitating the fires and of taking a lax approach to preventing mass deforestation of the rainforest while also being too slow to respond to the fires. Macron last week threatened to upend a major trade deal between the European Union and the South American Mercosur trade bloc over the issue, claiming Bolsonaro was not living up to environmental commitments that had been made under the deal.

Brazil’s ambassador to France, Luís Fernando Serra, said on French TV on Tuesday that his country is rejecting the aid because the decision was made without involving his country and the “language is ambiguous.”

“We refuse because we see interference,” he said, calling the aid “help we didn’t ask for.”

Bolsonaro’s chief of staff went further, taking personal shots at Macron and suggesting the aid might be better spent reforesting his own backyard. And he knocked the massive blaze earlier this year at Paris’ historic Notre Dame Cathedral, adding, “Macron cannot even avoid a predictable fire in a church that is part of the world’s heritage, and he wants to give us lessons for our country?”

[Politico]

Beijing denies Trump’s claim that China called US officials to restart talks

President Donald Trump said U.S. and Chinese officials spoke Sunday and he is optimistic China wants to make a deal after the trade war between the two countries escalated in recent days.

“They want to make a deal,” Trump told reporters Monday during a meeting with Egyptian President Abdel-Fattah el-Sissi at the Group of Seven Summit. “That’s a great thing.”

The conversations Sunday between the U.S. and Chinese officials were the first since the two countries lobbed a new round of tariffs at each other last week. Neither side formally broke off talks and White House officials had said they expected negotiations to continue despite the new tariffs. But investors had feared China could walk away from the negotiating table.

Speaking to reporters, Trump heaped praise on Chinese President Xi Jinping, calling him a “great leader” and said China wants “to do something very, very badly.” He said the calls were at the “highest levels.”

“We are probably in a much better position now than any time in the negotiations,” Trump said in a meeting Monday with German Chancellor Angela Merkel.

When asked about the phone calls, Chinese Foreign Ministry spokesperson Geng Shuang said, “I haven’t heard about this.” News of Trump’s comments was breaking as he was addressing reporters.

Hours earlier, Chinese Vice Premier Liu He said China sought “calm” negotiations and opposed an escalation.

“We are willing to solve the problem through consultation and cooperation with a calm attitude,” he said, according to Chinese newspaper Caixin. “We firmly oppose the escalation of the trade war,” he said, adding that it “is not conducive to China, the U.S. and the interests of people all over the world.”

Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

The stock market fell sharply Friday after China announced it would slap retaliatory tariffs on $75 billion worth of U.S. goods, and Trump hit back saying he would increase existing tariffs on $250 billion in imports to 30 percent from 25 percent Oct. 1.

He also said that a planned 10 percent tariff on a further $300 billion in Chinese goods would now be taxed at 15 percent starting next month.

But the continued talks and optimism from Trump eased financial market jitters. U.S. stock futures pointed to a recovery Monday morning, with Dow futures jumping more than 200 points.

Trump’s top economic adviser, Larry Kudlow, said Sunday afternoon that he was anticipating a call from the Chinese this week and for Chinese officials to still come to Washington as planned.

“You’ve got both sides playing their game, we get that,” Kudlow told reporters. “As long as they are talking, I’m good.”

Trump also signaled a hint of optimism on Iran.

He said he didn’t feel disrespected by the surprise arrival of Iranian Foreign Minister Mohammad Javad Zarif at the seaside town where the meeting of world leaders is taking place. Trump said French President Emmanuel Macron let him know Zarif was coming on the day of his arrival.

“I don’t consider that disrespectful at all, especially when he asked for my approval,” Trump said of Macron.

But White House aides said they felt blindsided by the unanticipated visitor, and some were upset at the French over the move, U.S. officials said shortly after Zarif’s arrival.

A spokesman for Zarif announced that he had arrived in Biarritz at the invitation of the French foreign minister “to continue talks” between the Iranian and French governments.

Trump said it would have been too soon to meet with the Iranians, and he declined to comment when asked if he sent any message to Zarif. There is no indication Zarif would have been willing to meet with the U.S. officials.

Trump said he isn’t looking for regime change in Iran, but that he wants to see the country abandon its nuclear program and stop its terrorism funding before lifting financial restrictions that have crippled its economy.

“We are looking to make Iran rich again,” Trump told reporters Monday. “Let them be rich.”

[NBC News]

Reality

Beijing has no idea what Trump is talking about.

Trump skips G7 climate summit with aides lying about scheduling conflict

President Donald Trump skipped a session devoted to climate change at the G7 summit here, a snub aides wrote off as a scheduling conflict but nonetheless reflects Trump’s isolation on the issue.

As other leaders were taking their seats around a large round table, the chair reserved for Trump sat empty. The summit’s host, French President Emmanuel Macron, gaveled the meeting to order anyway and launched into an explanation of a wrist watch made from recycled plastic.

Later, the White House said Trump’s schedule prevented his attendance.

“The President had scheduled meetings and bilaterals with Germany and India, so a senior member of the Administration attended in his stead,” press secretary Stephanie Grisham said.

But the leaders of both those countries — German Chancellor Angela Merkel and Indian Prime Minister Narendra Modi — were both seen attending, at least for the start of the session.

An official said the staffer who replaced Trump worked for the National Security Council.

Speaking afterward, Macron seemed to shrug off Trump’s absence.

“He wasn’t in the room, but his team was,” Macron said at a news conference. He urged reporters not to read too much into Trump’s decision to skip the session, insisting the US is aligned with the rest of the G7 on issues of biodiversity and combating fires in the Amazon rainforest.

Still, Macron acknowledged Trump’s decision to withdraw from the Paris climate accord — a move that angered European nations, who remain part of the pact. Macron said it was no longer his goal to convince Trump to return to the agreement.

In the lead-up to the G7, Trump’s aides said he wasn’t entirely interested in the climate portions of the summit, believing them a waste of time compared to discussion of the economy.

After past G7s, Trump complained that too much time was spent on issues he deemed unimportant, like clearing oceans of plastics.

But Macron made climate one of the main focuses of this year’s gathering anyway, scheduling the session on Monday and insisting the leaders address the Amazon fires.

That was bound to create divisions between Trump and the other leaders. Trump has loosened environmental regulations in the United States, even as he claims that water and air are at their cleanest levels ever.

[CNN]

Trump Called The Danish Prime Minister “Nasty” After He Canceled A Visit Because She Won’t Sell Greenland

A bizarre diplomatic row, even by the standards of the Trump administration, dragged on Wednesday as the US president said the way Denmark’s prime minister dismissed his idea of buying Greenland was “nasty.”

On Tuesday, President Trump abruptly canceled a planned state visit to Denmark after Mette Frederiksen, the Danish PM, firmly rejected his stated wish to buy Greenland, the semi-autonomous island home to 56,000 people.

Frederiksen had labelled the idea of the US purchasing Greenland an “absurd discussion” to be having.

But while he initially thanked the Danish PM on Twitter for “being so direct,” in remarks to journalists as he departed the White House on Wednesday, Trump branded her comment as “nasty.”

“I thought the prime minister’s statement that it was absurd, that it was an absurd idea, was nasty. I thought it was inappropriate. All she had to do was say, ‘No, we wouldn’t be interested,'” Trump said.

“She’s not talking to me. She’s talking to the United States of America,” the president added. “You don’t talk to the United States that way.”

Earlier on Wednesday, Frederiksen expressed “regret and surprise” at September’s state visit being canceled, as she reiterated once more that Greenland was not for sale.

“I had been looking forward to the visit and preparations were well underway,” Frederiksen told journalists in Copenhagen in a statement delivered in Danish and English. “It was an opportunity to celebrate Denmark’s close relationship to the US, which remains one of Denmark’s closest allies.”

She added, “This does not change the character of our good relations [with the US], and we will of course from Denmark continue our ongoing dialogue with the US on how we can develop our cooperation and deal with the many common challenges we are facing.”

Only hours before Trump canceled the state visit, the American ambassador, Carla Sands, tweeted excitedly about the president’s upcoming visit.

But on Wednesday she was in damage control mode.

Trump and the first lady, Melania Trump, had been invited by Denmark’s Queen Margrethe II. Denmark’s state broadcaster quoted a royal spokesperson as saying that Trump’s announcement “came as a surprise.”

“That’s all we have to say about that,” the spokesperson added.

Former Danish Prime Minister Helle Thorning-Schmidt was more direct. “Is this some sort of joke?” she wrote on Twitter after Trump canceled the state visit.

The Wall Street Journal first reported last week that Trump had raised the possibility of buying Greenland, and he confirmed Sunday that such a purchase had been discussed because of the island’s strategic location and natural resources.

“Essentially, it’s a large real estate deal. A lot of things can be done,” Trump said. “It’s hurting Denmark very badly, because they’re losing almost $700 million a year carrying it. So they carry it at a great loss.”

He later tweeted a meme of a Trump Tower–style skyscraper in a settlement in Greenland.

But any such sale was firmly ruled out by Denmark and Greenland, which is self-governing in all respects apart from foreign policy and defense.

Speaking in Nuuk, the capital of Greenland, on Sunday, Frederiksen said the sale of Greenland was not even up for discussion, pointing out, for one thing, that Greenland belongs to Greenland, not Denmark.

“Thankfully, the time where you buy and sell other countries and populations is over,” she told a TV reporter. “Let’s leave it there.”

[Buzzfeed]

Trump tore out magazine picture of Justin Trudeau, scrawled odd message and mailed it to Canadian embassy

Donald Trump reportedly tore out a magazine picture of Justin Trudeau, scrawled a brief note about the Canadian prime minister “looking good”, and made White House officials mail it to the neighbouring country’s embassy.

The message – first reported by Axios – is said to have been written by the US president on the torn-out cover of a May 2017 issue of Bloomberg Businessweek, which featured an image of Mr Trudeau alongside a caption reading “The Anti-Trump”.

On it, Mr Trump reportedly jotted a note reading something to the effect of, “Looking good! Hope it’s not true!” according to the US news outlet.

The Canadian ambassador considered the note so strange he thought it was a prank, but after calling US officials was told the note was genuine.

Although some White House staff reportedly considered the note inappropriate, the National Security Council ultimately decided it was done in good humour and would be considered by Ottawa to be friendly contact.

Another exchange in December of that year reportedly saw Mr Trump send Mr Trudeau a document purporting to show a US trade deficit with Canada.

Mr Trudeau reportedly responded by including in his letter a printout of a US government website showing America actually has a trade surplus over its neighbour when services are included with goods.

The Canadian prime minister reportedly included a smiley face alongside the document.

Months later, on Dec. 8, 2017, President Trump falsely told a rally crowd in Pensacola, Florida, that the U.S. has a trade deficit with Canada. Around that same time, Trump also mailed Trudeau a document purporting to show that the U.S. had a trade deficit with Canada, according to a source with direct knowledge.

  • Trump wrote in Sharpie on the document: “Not good!!” or something to that effect, the source recalled. Trump’s document only mentioned America’s deficit in the trade of goods and ignored its surplus in services (the two combined would gave the U.S. its overall surplus).

A few weeks later, Trump received a handwritten letter from Trudeau. The note, on Trudeau’s official stationery marked by the Maple Leaf, began with a friendly tone, but ended with a drop of acid.

  • “Dear Donald,” Trudeau wrote in the letter dated Dec. 20, 2017, according to a source with direct knowledge of its contents, which 2 other sources confirmed. “It’s been a busy year! Enjoy the Christmas holidays — you deserve it.”
  • “One thing,” Trudeau added. “You gave a great speech in Pensacola, but you were slightly off on the balance of trade with Canada. USTR says so! All the best for 2018, Justin.”

The second page of the letter brought the kicker. Trudeau enclosed a printout of Canada’s informational page from the website of the Office of the United States Trade Representative.

  • Trudeau underlined the section on the USTR website, which at the time reported that “the U.S. goods and services trade surplus with Canada was $12.5 billion in 2016.” Trudeau circled the $12.5 billion and drew a cheeky little smiley face next to it, according to a source with direct knowledge.

A Canadian government official responded to this reporting: “We’re not going to comment on whether or what paper was exchanged between our 2 countries. There was a lot of back and forth. That said, it is certainly true that there were disagreements between our 2 countries about the figures, and we repeatedly pointed to USTR and U.S. Commerce’s own figures. On your second point (the Bloomberg cover), no comment, but we don’t deny it.”

Why this matters: The U.S.-Canadian relationship is, in normal times, low-friction. But not under Trump, who views Trudeau as an irritant at best. In a conversation in the White House last year, Trump told aides he thought Canada was “the worst” country to negotiate with. “Who would think? Canada?” Trump said.

  • Trump now says very little about Trudeau, according to an adviser, and believes he and his trade representative Bob Lighthizer got the better of the Canadians in their trade negotiations.

Behind the scenes: Trump privately refers to Trudeau as a “wise guy,” per sources with direct knowledge. He describes Trudeau as young and cocky, and he resents it when Trudeau comments on American politics.

  • Trump has gleefully recounted to aides how he threatened the Canadians with auto tariffs. He says it got him a better deal on the U.S.-Mexico-Canada Agreement.
  • Trump has also privately described Canada’s Foreign Affairs Minister Chrystia Freeland as “very nasty,” according to senior administration officials.
  • Trump was pleased with the optics of the G7 last year, an adviser said. Trump says he dominated Trudeau there, the adviser added, and loves the viral photo of himself sitting with his arms crossed as world leaders hover over him. Trump also relished leaving the summit early — snub to Trudeau, who Trump said had treated him with disrespect.
  • The White House did not respond to requests for comment.

The big picture: The president is in Year 3 of his relationships with foreign leaders, and in some cases they’ve changed substantially. Trump’s bromance with France’s 41-year-old leader Emmanuel Macron has faded, and Trump privately places Macron in a similar “wise guy” category as the 47-year-old Trudeau.

  • Last week, Trump chided Macron on Twitter for “purporting” to represent the U.S. in conversations with Iran.
  • Trump has also hammered China with escalating tariffs and increasingly tough rhetoric — a significant change from his more frequent emphasis on his close personal relationship with President Xi Jinping in Year 1.

[Yahoo News ,Axios]

Trump Swipes at Emmanuel Macron Over Attempts to Broker Iran Talks: Nobody Speaks for the US but the US Itself

President Donald Trump said Thursday that the US would not participate in discussions with Iran should France attempt to be the mediator.

” Nobody speaks for the United States but the United States itself. No one is authorized in any way, shape, or form, to represent us!” the president tweeted Thursday. He added that Iran “desperately wants to talk to the US” but is given “mixed signals” by those “purporting to represent” US interests.

The U.S. has been ramping up pressure on Iran in the form of strict sanctions as of late. Sanctions specifically have been imposed upon  Iran’s foreign minister Mohammad Javad Zarif accusing him of being an “apologist” for the Islamic Republic.

Iran’s President Hassan Rouhani has been asking French President Emmanuel Macron to mediate discussions between the US and Iran regarding sanctions. Iran has reacted to renewed US sanctions aimed at strangling its oil trade by retreating from commitments to limit nuclear activity. Since the US pulled out of the nuclear deal last year,France, Britain and Germany have worked to salvage the deal.

Rouhani’s office quoted him as having told Macron, “Concurrent with attempts by Iran and France to reduce tensions and create helpful conditions for lasting coexistence in the region, we are witnessing provocative actions by the Americans,” according to Radio Farda, the Iranian branch of the US government-funded Free Europe/Radio Liberty.

[Mediaite]

US formally withdraws from nuclear treaty with Russia and prepares to test new missile

The United States formally withdrew from the Intermediate-Range Nuclear Forces Treaty with Russia Friday, as the US military prepares to test a new non-nuclear mobile-launched cruise missile developed specifically to challenge Moscow in Europe, according to a senior US defense official.

The US withdrawal puts an end to a landmark arms control pact that has limited the development of ground-based missiles with a range of 500 to 5,500 kilometers and is sparking fears of a new arms race.

“Russia is solely responsible for the treaty’s demise,” Secretary of State Mike Pompeo said in a statement Friday announcing the US’ formal withdrawal from the Cold-War era nuclear treaty.

Pompeo said, “Russia failed to return to full and verified compliance through the destruction of its noncompliant missile system.”

NATO Secretary General Jens Stoltenberg told CNN’s Hala Gorani that the treaty’s end is a “serious setback.”

‘A bad day’

“The fact that we don’t have the INF Treaty anymore, the fact that the Russians over the years have deployed new missiles, which can reach European cities within minutes, which are hard to detect, are mobile and are nuclear capable, and therefore reduce the threshold of any potential use of nuclear weapons in an armed conflict — of course that’s a bad day for all of us who believe in arms control and stability in Europe,” Stoltenberg said.”At the same time, NATO is there to protect all our allies and we will take the necessary measures to retain credible defense,” he added.The new US missile test, which CNN reported Thursday, is expected to take place in the next few weeks and will essentially be the Trump administration’s answer to Russia’s years-long non-compliance with the INF treaty, the senior US defense official said.A senior administration official told reporters that the US will be testing the cruise missiles that were forbidden by the INF treaty because “Russia cannot maintain military advantage,” but claimed that it will take years for the US to deploy those weapons.

Deployment

“We are literally years away before we would be at a point where we would talk about basing of any particular capability. Because of our steadfast adherence to the treaty over 32 years, we are barely, after almost a year, at a point where we are contemplating initial flight tests,” explained the senior administration official, noting that the US would only look at deploying conventional weapons, not nuclear weapons.

But the Pentagon said in March that this ground launched missile could be ready for deployment within 18 months. The administration’s budget request for fiscal year 2020, released in February, included $96 million for continued research and development on INF range missile systems.

And arms control experts say it’s not difficult to convert existing air- or sea-based systems into the ground-based missile the Pentagon plans to test. “It is not a significant engineering task,” said Jon Wolfsthal, director of the Nuclear Crisis Group and a former nuclear expert for the National Security Council under the Obama administration. “It’s well within the capability of major defense contractors and the army to pull off.”

The end of the INF pact leaves the US and Russia with just one nuclear arms agreement, the New START Treaty, which governs strategic nuclear weapons and delivery systems for each side. If New START isn’t renewed or extended by 2021, the world’s two largest nuclear powers would have no limits on their arsenals for the first time in decades.

President Donald Trump’s ambivalent comments about New START and national security advisor John Bolton’s well-known dislike for arms control treaties have given rise to deep concern about a new nuclear arms race.

UN Secretary General Antonio Guterres told reporters Thursday that the INF Treaty’s expiry means “the world will lose an invaluable brake on nuclear war. This will likely heighten, not reduce, the threat posed by ballistic missiles.”

He urged the US and Russia to “urgently seek agreement on a new common path for international arms control.”

Retired Gen. Wesley Clark, a former NATO supreme allied commander, said on CNN “New Day” that the termination of the treaty also marks “one more ratchet up on the movement towards a more adversarial relationship with Russia.”

But he added that the US “really didn’t have a choice” because the treaty wasn’t effective.

‘A competition with nuclear arms’

“We’re going into a new competition, a military competition, including a competition with nuclear arms against development that Russia, and to some extent, China are making,” Clark said. “No one wants to do this. It’s expensive, it’s dangerous, but it’s necessary if we’re going to maintain our security in an uncertain world.”The Trump administration casts the forthcoming test of the new ground-based missiles as necessary to US national security, even as it seeks to tamp down any suggestion that the US is triggering an arms race, a claim that’s met with skepticism in the arms control community.When asked if the US will commit to maintaining some kind of arms control despite this treaty being defunct, the official largely put the onus on Russia.”I can’t speak for the Russian federation so I can’t promise that they will be amenable to additional arms control,” the official said. “I can only tell you that the US, from the President on down, is interested in finding an effective arms control solution.”On Friday, Russia said it is inviting the US and NATO to join them in declaring a moratorium on deployment of intermediate-range and shorter-range missiles.

‘Not credible’

“We invited the US and other NATO countries to assess the possibility of declaring the same moratorium on deploying intermediate-range and shorter-range equipment as we have, the same moratorium Vladimir Putin declared, saying that Russia will refrain from deploying these systems when we acquire them unless the American equipment is deployed in certain regions,” Russian Deputy Foreign Minister Sergei Ryabkov said, Russian state news agency TASS reported.Stoltenberg on Friday dismissed Russia’s offer of a moratorium as “not credible,” because Russia has been deploying missiles for years.”There is zero credibility in offering a moratorium on missiles they are already deploying,” he said. “There are no new US missiles, no new NATO missiles in Europe but there are more and more Russian missiles,” Stoltenberg said in a press conference at NATO headquarters in Brussels.International allies, including the United Kingdom, emphasized their support for the US’ move to withdraw from the INF treaty.NATO allies said in a statement that Russia remains in violation of the INF Treaty, “despite years of U.S. and Allied engagement,” adding that they fully support the US’ decision.

NATO added that over the past six months Russia had a “final opportunity” to honor the treaty but failed.UK Foreign Secretary Dominic Raab said Russia caused the INF Treaty collapse, tweeting, “Their contempt for the rules based international system threatens European security.”The senior US defense official said that the US has long had evidence that Russia has developed, tested and fielded “multiple battalions” of non-INF compliant cruise and ballistic missiles. The US believes the deployments are “militarily significant” because the missiles are mobile, allowing Moscow to move them rapidly and making it difficult for the US to track them.The Russian missiles use solid fuel, which also means they can be readied in a very short time frame to be fired at targets, especially in western Europe.Alexandra Bell, senior policy director at the non-partisan Center for Arms Control & Non-Proliferation, explains that “with this type of missile there’s very short warning, attacks are harder to spot by radar, so it’s just more destabilizing. They made the situation in Europe more dangerous.”

Russian targets

The Pentagon has been working on the new missile system’s very initial phases, which will lead to the first test in the coming weeks, the defense official said. The official emphasized there is no formal program yet to develop the missile, because the INF treaty has been in effect.The US also has yet to formally discuss and commit to firm basing options, the defense official said. The concept, the official said, would be to position the missiles in militarily advantageous positions from which they could fire past Russian defenses and target ports, military bases or critical infrastructure.But no NATO member “has said it would be willing to host new US intermediate range missiles,” Kingston Reif, director for disarmament and threat reduction policy at the Arms Control Association.Indeed, several NATO members, including Poland, have made clear that any deployment of the missiles in Europe would have to be approved by all NATO members. Stoltenberg has emphasized that NATO will respond to the end of the INF Treaty as an alliance and would not be amenable to US missile deployments on its border.”What we will do will be measured, it will be coordinated as a NATO family, no bilateral arrangements, but NATO as an alliance,” Stoltenberg said last month. “We will not mirror what Russia is doing, meaning that we will not deploy missiles,” the NATO chief said.

[CNN]

Trump Ratchets Up U.S.-China Trade War With More Tariffs; Stocks Slide

President Trump announced Thursday that the United States will impose a new 10% tariff on $300 billion worth of products imported from China, saying Beijing had broken some of the promises it made in trade negotiations.

The new tariffs, which are set to take effect Sept. 1, represent another ratcheting up in trade tensions between the countries and sent stocks falling sharply. 

Major U.S. stock indexes fell about 1% and the Dow Jones Industrial Average closed down 280 points. Oil prices tumbled about 8% after Trump’s announcement on concerns that the tariffs would hurt demand.

The move comes days after U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin traveled to Shanghai for a brief meeting about trade with Chinese officials.

The White House said the meeting was “constructive” and negotiations were scheduled to resume in September in Washington, D.C.

But Trump indicated he was disappointed by the lack of progress in the talks, saying China had failed to follow through on promises to curb the sale of fentanyl and buy more products from U.S. farmers.

“Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!” Trump said in a tweet.

Still, the president tried to strike a more positive tone than he has in the past, saying, “We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”

The president has already imposed 25% tariffs on $250 billion in Chinese imports. In May, Trump had threatened additional tariffs but suspended them at the last minute.

Now, he is going ahead with tariffs after all, though at a lower rate than before.

On Wednesday, the Federal Reserve cut interest rates for the first time since 2008 amid signs that the economies of the United States and other countries are slowing. The central bank also cited the uncertainty created by the standoff with China.

“Certainly, we’ve seen … that when there’s a sharp confrontation between two large economies, you can see effects on business confidence pretty quickly and on financial markets pretty quickly,” Fed Chairman Jerome Powell said in a news conference after the interest rate announcement.

Industry groups said the new tariffs will hurt shoppers and threaten jobs.

“We are disappointed the administration is doubling-down on a flawed tariff strategy that is already slowing U.S. economic growth, creating uncertainty and discouraging investment,” David French, vice president of government relations at the National Retail Federation, said in a statement. “These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods.”

Matt Priest, head of the Footwear Distributors and Retailers of America, said in a statement: “President Trump is, in effect, using American families as a hostage in his trade war negotiations. Tariffs are taxes and this move will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry.”

Trump has lately indicated that the U.S. can win a trade war with Beijing, pointing out that China’s economy has been slowing after a long period of rapid growth.

U.S. officials want China to address the theft of intellectual property, stop subsidizing its companies and open its markets to more U.S. goods.

[NPR]

Trump Just Strong-Armed Guatemala Into a “Safe Third Country” Agreement.

The United States and Guatemala have reached a deal that has the potential to end most asylum seekers’ ability to seek protection at the US-Mexico border.

Under an agreement announced Friday afternoon, asylum seekers who travel through Guatemala on their way to the United States would be returned to Guatemala and forced to seek protection there. That would largely block Salvadorans and Hondurans from receiving asylum in the United States, as well as large numbers of asylum seekers from around the world who travel by land to the US border after flying to South America. Instead, only Mexicans and Guatemalans would be able to seek protection at the border.

The agreement would not apply to children who arrive at the border alone and would remain in effect for two years, according to a copy released by the Guatemalan government (in Spanish).

Acting Homeland Security Secretary Kevin McAleenan said on a press call that he expects the deal, which is known as a safe third country agreement, to take effect in the next few weeks. Earlier this month, Guatemala’s Constitutional Court blocked President Jimmy Morales from unilaterally signing such an agreement. It is still not clear how Morales’ administrations plans to get around that. 

Beyond that it is unclear how Guatemala—which has become the leading sending country of migrants to the United States under Trump—plans to provide refuge for the thousands of asylum seekers who could arrive from El Salvador, Honduras, and elsewhere. As the Washington Post‘s Mexico and Central America bureau chief, Kevin Sieff, pointed out on Twitter, Guatemala doesn’t exactly have much recent experience handling asylum claims.

The deal, if it goes into effect, would be one of Trump’s two most important efforts to undermine the asylum system. The other is the Remain in Mexico program, which is forcing thousands of asylum seekers to wait in Mexico while their asylum claims are pending in US immigration courts. Combined, the two policies could block the vast majority of asylum seekers who come to the southern border from entering the United States. People who fly or travel by sea to the United States would still be eligible to apply for asylum. (The problem for asylum seekers, particularly those who aren’t wealthy, is that it is often impossible to get a visa to fly to the United States, which is why people turn to smugglers instead.)

McAleenan said that by requiring people to apply for asylum in Guatemala, the agreement would “increase the integrity of the [asylum] process, keep vulnerable families that are really economic migrants out of the hands of smugglers, and allow us to reach those with asylum claims more expeditiously.”

Morales was supposed to come to the White House on July 15 to sign a safe third country agreement, but the trip was canceled at the last minute in response to the Constitutional Court decision. Trump responded to the Guatemalan court decision this week by threatening to impose tariffs on Guatemala and ban Guatemalans from entering the United States. 

Like Trump, Morales is a former television personality who ran for president in 2015 as a political outsider. Since then, Morales has worked aggressively to undermine a renowned UN-backed anti-corruption commission that has targeted members of his family. His administration also has gone out of its way to please Trump, moving its Israeli embassy to Jerusalem immediately after the United States did. The Trump administration has been largely silent about Morales’ efforts to undermine the rule of law in Guatemala.

[Mother Jones]

Trump targets French wine to retaliate for France’s digital tax

The United States will announce retaliatory action against France in response to the country’s new tax affecting American technology companies, President Donald Trump said Friday.

He suggested he could target French wine with tariffs — a move experts considered the most likely U.S. response to the French digital services tax.

“I’ve always said American wine is better than French wine!” Trump tweeted.

In the tweet, the president said his administration will unveil “a substantial reciprocal action” following what he called French President Emmanuel Macron’s “foolishness.”

Earlier this month, France passed a 3% tax that will affect firms such as Facebook and Google that draw about $28 million or more in revenue from digital services in France. The Trump administration then started an investigation under Section 301 of the Trade Act of 1974.

If, after the probe, the U.S. determines the tax is discriminatory or unreasonably targets U.S. firms, Trump could respond with tariffs. Trade experts considered Trump’s most likely response a 100% tariff on French wine — one of the country’s signature, symbolic products.

In a statement Friday, White House spokesman Judd Deere criticized France’s tax but did not give any new details on what the U.S. could do to retaliate. He said the administration is “looking closely at all other policy tools” in addition to the already launched investigation as it determines how to respond to France.

“The Trump Administration has consistently stated that it will not sit idly by and tolerate discrimination against U.S.-based firms,” he said.

In a CNBC interview last month, Trump suggested he could put tariffs on French wine. He said California wine producers have complained to him about France putting higher tariffs on imports than the U.S. does. “And you know what, it’s not fair. We’ll do something about it,” he said.

France exported 3.2 billion euros (or about $3.6 billion) in wine to the U.S. last year, according to the Federation of French Wines and Spirits Exporters. The U.S. was France’s biggest wine export market.

Trump does not drink alcohol, but he is familiar with the wine industry. While in office, Trump has touted the Virginia-based Trump Winery operated by his son, Eric.

Tariffs on France would open up another conflict as Trump tries to navigate thorny trade relationships around the globe. Already in the coming months, the White House looks to push a skeptical Congress to approve Trump’s replacement for the North American Free Trade Agreement and strike a trade deal with China.

[NBC News]

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