Tag: trade war

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]

Trump blasts Macron, Trudeau ahead of G-7 summit

President Trump on Thursday lashed out at the leaders of France and Canada over roiling trade disputes, setting the stage for a confrontational Group of Seven summit of major economic powers.

A day before leaving for the meeting in Canada, Trump singled out French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau on Twitter for threatening to isolate the U.S. over his efforts to change global trade rules.

“Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers,” Trump wrote. “The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out.”

The president added: “Look forward to seeing them tomorrow.”

The message shows the depth of Trump’s unhappiness about the summit, where he is expected to take major backlash over his trade policies.

Macron and Trudeau met in Ottawa, Canada, this week ahead of the summit and presented a united front against Trump’s tack toward protectionism.

Asked during a joint press conference if Trump does not care about “being isolated” from other world leaders, Macron responded, “Maybe, but nobody is forever.”

“The six countries of the G7 without the United States, are a bigger market taken together than the American market,” Macron said.

Macron threatened to sign a joint communique at the conclusion with the summit with five other nations — but not the U.S. — expressing their desire for free trade.

“The American President may not mind being isolated, but neither do we mind signing a 6 country agreement if need be,” he tweeted. “Because these 6 countries represent values, they represent an economic market which has the weight of history behind it and which is now a true international force.”

The president imposed steep steel and aluminum tariffs late last month on Canada, Mexico and the European Union — some of the U.S.’s closest allies.

The administration used a little-known legal provision that allows the president to unilaterally impose tariffs on those goods for national security reasons.

[The Hill]

Reality

U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2016.  Exports totaled $501 billion; Imports totaled $592 billion.  The U.S. goods and services trade deficit with the EU was $92 billion in 2016.

Kudlow: ‘Don’t blame Trump’ for the trade conflicts he created

Top White House economic advisor Larry Kudlow contended Wednesday that President Donald Trump should not be held responsible for mounting trade conflicts with American allies, as the president gets set to face world leaders angered by tariffs imposed by the U.S.

“Don’t blame Trump. Blame the nations that have broken away” from fair trade practices, he told reporters. The global trade system “is broken and President Trump is trying to fix it. And that’s the key point,” Kudlow added.

The National Economic Council director downplayed concerns about tensions with key American allies ahead of Trump’s trip to Canada at the end of the week for a summit with leaders of the Group of 7 economies. Trump recently imposed tariffs on steel and aluminum imports from countries including the other six members — Canada, France, Germany, Italy, Japan and the United Kingdom — prompting retaliatory measures against the U.S.

The developments have prompted concerns about a trade war that could damage the U.S. economy or cause frayed relations with allies. The tariffs have sparked backlash not only abroad but at home, where Trump is trying to stop an effort from free trade Republicans to push back against the measures. Both U.S. lawmakers and foreign officials have questioned Trump’s national security justification for imposing the tariffs.

Ahead of Trump’s G-7 meetings, Kudlow, a former CNBC senior contributor, downplayed the prospect of a “trade war” with allies — calling the tensions “disputes that need to be solved.” He said he hopes the summit, where Trump will have bilateral talks with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron, will lead to substantive discussions on trade.

Last week, the Trump administration said it would not exempt Canada, Mexico and the European Union from tariffs on steel and aluminum imports. The decision came as the U.S., Canada and Mexico have faltered in efforts to strike a revised North American Free Trade Agreement.

Trump has long pledged to crack down on what he calls unfair trade practices and bad trade deals. He contends foreign countries had punished U.S. companies and stolen jobs away from American workers — one component of the appeal that carried him to the White House. Ultimately, he wants to increase U.S. exports and reduce trade deficits.

While numerous Republicans who support Trump — and Democrats who typically do not — have backed tough responses to alleged trade abuses by China, the tariffs on the key American allies brought the harshest response yet to Trump’s trade actions both domestically and abroad. Trudeau reportedly said he wanted to have “frank” talks with Trump during the G-7 meetings.

Asked whether Trump had damaged relations with Canada, Kudlow answered that he was not worried about temporary tensions.

“I have no doubt the United States and Canada will remain firm friends and allies,” Kudlow said.

The White House economic advisor also denied reports that Treasury Secretary Steven Mnuchin pushed for a tariff exemption for Canada during a meeting this week. Kudlow said both he and the Treasury secretary attended the meeting and did not say a word.

The U.S. has also sought help from allies as it tries to reach a deal to reduce trade deficits with China and stop alleged theft of U.S. intellectual property by Chinese companies. The U.S. has reached neither a broad deal with China to avoid potentially damaging tariffs, nor an agreement to revive Chinese telecommunications company ZTE, according to Kudlow.

He said he believes the rest of the world agrees with Trump about Chinese trade practices.

[CNBC]

Trump invokes War of 1812 in testy call with Trudeau over tariffs

President Donald Trump and Canadian Prime Minister Justin Trudeau had a testy phone call on May 25 over new tariffs imposed by the Trump administration targeting steel and aluminum imports coming from Canada, including one moment during the conversation in which Trump made an erroneous historical reference, sources familiar with the discussion told CNN.

According to the sources, Trudeau pressed Trump on how he could justify the tariffs as a “national security” issue. In response, Trump quipped to Trudeau, “Didn’t you guys burn down the White House?” referring to the War of 1812.

The problem with Trump’s comments to Trudeau is that British troops burned down the White House during the War of 1812. Historians note the British attack on Washington was in retaliation for the American attack on York, Ontario, in territory that eventually became Canada, which was then a British colony.

When asked if the comment was received as a joke, one source on the call said: “To the degree one can ever take what is said as a joke. The impact on Canada and ultimately on workers in the US won’t be a laughing matter.”

The White House declined to comment and the National Security Council did not immediately return a CNN request for comment.

Asked about the state of US-Canada relations, National Economic Council Director Larry Kudlow acknowledged some short-term tensions, but said he believes relations between the two countries remain “very good.”

“I have no doubt that the United States and Canada will remain firm friends and allies whatever short-term disagreements may occur,” Kudlow said.

During the Burning of Washington, on August 24, 1814, first lady Dolley Madison famously rescued a portrait of George Washington before fleeing the White House.

Trudeau has publicly denounced the “national security” justification for the new tariffs.

“The idea that we are somehow a national security threat to the United States is, quite frankly, insulting and unacceptable,” Trudeau told NBC’s Meet the Press.

Canada’s Minister of Foreign Affairs Chrystia Freeland questioned the Trump administration’s move on CNN.

“And I would just say to all of Canada’s American friends — and there are so many — seriously? Do you really believe that Canada, that your NATO allies, represent a national security threat to you?” Freeland asked on CNN’s “State of the Union.”

Freeland met with Senate Foreign Relations Committee Chairman Bob Corker Monday to relay Canada’s concerns regarding the tariffs, a Corker spokeswoman told CNN.

Corker, whose state of Tennessee is home to foreign and domestic auto plants, questioned Trump’s national security justification in a statement last week.

“There is no reason to use this provision to consider imposing tariffs on the automobile industry, and this appears to be either an attempt to affect domestic politics ahead of the election or for some other transactional purpose regarding ongoing trade discussions. This is a dangerous course and should be abandoned immediately,” Corker said in the statement.

Trump defended his decision on tariffs on Canada and other US allies in a tweet over the weekend.

“The United States must, at long last, be treated fairly on trade,” the President tweeted on Saturday.

A senior administration official declined to discuss the specifics of Trump’s phone call with Trudeau but acknowledged some of the President’s conversations with his foreign counterparts on the subject of trade have been confrontational.

“It’s understandable that change causes friction,” the official said, noting some of Trump’s recent tariff announcements have brought stubborn trading partners back to the negotiating table.

Canadian officials confirm to CNN that months ago Trump personally assured Trudeau that Canada would likely be exempt from steel and aluminum tariffs. The Trump administration at one point granted Canada and Mexico a last-minute reprieve from tariffs in March as negotiations to rework the North American Free Trade Agreement, known as NAFTA, continued.

In April, Canada tried to address what Trump said were concerns about Chinese steel and aluminum being dumped into Canada and then being shipped into the United States.

Trudeau announced increased funding and border vigilance “to prevent transshipment and diversion of unfairly priced foreign steel and aluminum into the North American market,” according to a statement released in April.

It was the understanding of Canadians officials at the time that this would satisfy the Trump administration and allow for Canada to receive a permanent exemption from tariffs.

Just days before Trudeau is set to host a G7 Summit in Quebec, Canadian officials tell CNN they are just trying to “keep Trump happy.”

Asked about Trump’s remark that the Canadians burned down the White House, aides to the President and to Canada’s Trudeau declined to comment.

[CNN]

Reality

Canada wasn’t a country until 1840.

Trump’s phone call with Macron described as ‘terrible’

A call about trade and migration between US President Donald Trump and French President Emmanuel Macron soured last week after Macron candidly criticized Trump’s policies, two sources familiar with the call told CNN.

“Just bad. It was terrible,” one source told CNN. “Macron thought he would be able to speak his mind, based on the relationship. But Trump can’t handle being criticized like that.”

A short White House readout of last Thursday’s call said the conversation was focused on trade and immigration.

“Both leaders discussed the migration problem in Libya, and timelines to solve it. President Trump underscored the need to rebalance trade with Europe,” the readout states.

The call came the same day the United States announced a unilateral decision to slap steel and aluminum tariffs on American allies, including Mexico, Canada, and the European Union.

In a statement issued by the Elysee Palace ahead of the call, Macron said he “regrets the US decision to confirm tariffs in steel and aluminum.”

“This decision is not only illegal, it is a mistake on many points. It is a mistake because it responds to a worldwide unbalance that exists in the worst ways through fragmentations and economic nationalism,” the statement continued, with Macron adding that “if these kind of things impacted our relations, it would have been the case since day one because he has decided to leave the Paris (climate) agreement.”

“I prefer to say things directly and not through the press; and I will tell him what I told you, which are my convictions that he knows already,” he said in the statement.

Thursday’s strained call is particularly notable because Macron is arguably the European leader to whom Trump is closest. In an interview with the BBC in January, Macron said he had a “very direct relationship” with his US counterpart.

“I’m always extremely direct and frank. He is. Sometimes I manage to convince him, and sometimes I fail,” Macron said at the time.

Trump can expect a similar call from British Prime Minister Theresa May on Monday, sources tell CNN. It’s not her style to be combative, but one source said May is expected to be direct in her criticisms and that Trump could expect a tough conversation.

[CNN]

Trump imposes steel, aluminum tariffs on U.S. allies and Europe retaliates

President Trump followed through on a threat to impose steep metal tariffs on U.S. allies Thursday, a long-awaited decision that analysts said moved the country closer to a trade war.

Commerce Secretary Wilbur Ross said that Canada, Mexico and the European Union would be subject to a 25% tariff on steel and a 10% tariff on aluminum beginning at midnight on Thursday. Brazil, Argentina and Australia agreed to limit steel exports to the U.S. to avoid tariffs, he said.

“The president’s overwhelming objective is to reduce our trade deficit,” Ross said.

The decision was the latest by the Trump administration to project a more protectionist stance amid ongoing trade negotiations with China and other countries. But it drew a sharp rebuke and promises of retaliation from longstanding allies.

“These tariffs are totally unacceptable,” Canadian Prime Minister Justin Trudeau said Thursday. “These tariffs are an affront to the long-standing security partnership between Canada and the United States.”

European trade officials have previously threatened to respond to Trump’s move with  duties on U.S.-made motorcycles, orange juice and bourbon, among other things. Jean-Claude Juncker, president of the European Commission, reiterated that position Thursday, saying Europe would impose duties on “a number of imports from the U.S.”

“This is protectionism, pure and simple,” he said.

The Mexican economic ministry said it would move to place tariffs on U.S.-made pork, flat steel, apples, cheese and other products.

Trump announced the tariff and aluminum tariffs in early March but offered temporary exemptions to the European Union, Canada, Mexico and a number of other allies. He extended those exemptions in late April, noting at the time it would be the “final” delay unless the countries agreed to other concessions.

“We are awaiting their reaction,” Ross said of the other countries. “We continue to remain quite willing, indeed eager, to continue discussions.”

The move promoted criticism from a number of Republicans on Capitol Hill, especially those with large agricultural industries.

“This is dumb,” said Sen. Ben Sasse, R-Neb. “Europe, Canada and Mexico are not China, and you don’t treat allies the same way you treat opponents.”

The decision comes days after the Trump administration announced $50 billion of new tariffs on Chinese imports, after officials had earlier said it was “putting the trade war on hold” with Beijing. Ross is set to travel to China this weekend to continue trade talks.

The Trump administration has relied on a 1962 law that allows countries to impose trade restrictions for national security purposes. The president has also justified the tariffs by pointing out “shuttered plants and mills” and the decades-long slide of manufacturing.

Several analysts said they are concerned the approach will have the opposite effect.

“The initial blows in the trade wars have finally landed,” said Eswar S. Prasad, former head of the International Monetary Fund’s China division and a professor at Cornell University. “It is now clear that Trump’s threats about trade sanctions are more than just bluster and are to be taken seriously.”

Prasad said the hard line approach might net Trump some short-term wins, but said “it could eventually result in the U.S. playing a diminished” role in global trade.

“He doesn’t have a strategy that’s going to lead to making American manufacturing great again,” said Robert Scott, a trade expert at the Economic Policy Institute. “There will continue to be a series of tit-for-tat battles.”

The U.S. imported 34.6 million metric tons of steel last year, a 15% increase from 2016, according to the U.S. Department of Commerce.

Canada was the top source of U.S. imported steel, accounting for 77%, according to the International Trade Administration. Mexican steel accounts for about 9% of U.S. imports.

The majority of that metal is used in construction, auto manufacturing and appliances.

The tariffs, as well as export controls agreed to by Brazil and others, will raise the price of steel and aluminum in the U.S., making domestic producers more competitive while adding to the price buyers of the metals must pay.

“We think that’s going to put the industry in real peril,” said Jerry Howard, president of the National Association of Home Builders. “We were very excited by the tax bill, but it turns out the tax bill giveth, and tariffs taketh away.”

Ann Wilson with the Motor & Equipment Manufacturers Association said its members are already paying tariffs on many of the components they import to make auto parts. Imposing additional barriers on the metals used to make those parts, she said, amounts to a “double tariff.”

“There is little doubt that the uncertainty and added costs the administration is creating will put U.S. investments and jobs at risk,” Wilson said.

Steel trade with Canada and Mexico is covered under the North American Free Trade Agreement, but the president is relying on a provision of U.S. law that allows him to claim the imports represent a threat to national security.

Many observers believe the announcement Thursday is the latest effort to prod stalled negotiations over rewriting NAFTA, which Trump repeatedly promised to do during his campaign for president.

“This really is an attempt to strengthen the negotiating power of the U.S. when it comes to renegotiating NAFTA,” said Ned Hill, who teaches economic development at Ohio State University. “This is just very public, bare-knuckle negotiating.”

[USA Today]

Reality

Trump promised he would go after countries who “cheated” in trade, but we do not have a major trade imbalance with our friends and allies.

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 says China agreed to good deal for American farmers

President Trump touted in a tweet on Monday China’s promise to buy more US agricultural products following trade talks between the two countries, calling it a good deal for American farmers.

“China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products – would be one of the best things to happen to our farmers in many years!,” the president posted on his account, one of three tweets about China.

In another tweet, he questioned why former President Barack Obama failed to take action against China for the trade imbalance and suggested that he would work with Senate Democrats on developing fair trade policies.

“I ask Senator Chuck Schumer, why didn’t President Obama & the Democrats do something about Trade with China, including Theft of Intellectual Property etc.?,” Trump wrote. “They did NOTHING! With that being said, Chuck & I have long agreed on this issue! Fair Trade, plus, with China will happen!”

A third tweet said: “On China, Barriers and Tariffs to come down for first time. ”

About two hours later, he reiterated his earlier tweet that American farmers would benefit.

“Under our potential deal with China, they will purchase from our Great American Farmers practically as much as our Farmers can produce,” Trump said.

The final tweet said: “On China, Barriers and Tariffs to come down for first time. ”

In the joint US-China statement issued Saturday, China pledged to “significantly increase purchases of United States goods and services.”

“This will help support growth and employment in the United States. Both sides agreed on meaningful increases in United States agriculture and energy exports. The United States will send a team to China to work out the details,” it said.

The statement followed two days of talks involving Chinese Vice Premier Liu He and Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer.

On Sunday, Mnuchin said the US was putting a trade war with China on hold by not imposing major tariffs after the concessions by Beijing.

“We’re putting the trade war on hold. So right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said on “Fox News Sunday.” But Mnuchin and Lighthizer said that could change if China doesn’t follow through on its commitments.

“As this process continues, the United States may use all of its legal tools to protect our technology through tariffs, investment restrictions and export regulations,” Lighthizer said in a statement.

Trump during the presidential campaign railed about how China’s trade policies hurt American business, and his administration has been trying to get Beijing to take steps to lower its trade deficit with the US by at least $200 billion by the end of 2020.

[New York Post]

Reality

China agreed to the same deal we had before, with no commitment to buy a specific amount of any goods, and their “concession” was to buy the same products it was going to buy anyway.

Trump claimed he could easily win a trade war, yet got nothing he wanted, the trade gap hasn’t shrunk, and we just spent months harming US agriculture so we can be back to where we were before.

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