This is what happens when the sharpest deal maker in modern U.S. history, who happens to be the sharpest deal-maker in current Presidential Politics, sits down to discuss economics and business with the Park Row elite.

trump general

Donald Trump will probably make headlines for saying today that he “favors a 45% import tariff on a Chinese Imports”.   What the headlines will miss, is Trump moving from a primary election discussion toward a general election mandate.

The backdrop is a simple one, yet almost all will conveniently overlook it.

Donald Trump’s primary concern is the U.S. economy, U.S. jobs, and the welfare of the U.S. middle class.   Knowing the most substantial economic issue is the current Trans-Pacific Trade Deal (TPP), and knowing that China will use the intentionally designed “back door entry” into the trade pact, Trump positions the U.S. worker first and foremost.

Is 45% his number?  Those who have studied Donald Trump throughout the years he has negotiated successful contractual agreements will quickly understand exactly what Trump is doing.   The rest of the MSM, in their ideological rush to fill column inches will entirely miss it.

New York Times –  Donald J. Trump said he would favor a 45 percent tariff on Chinese exports to the United States, proposing the idea during a wide-ranging meeting with members of the editorial board of The New York Times.

Mr. Trump also spoke at length about the standoff with armed protesters who last Saturday seized the headquarters at a federal wildlife refuge in Oregon, suggesting that he would have called the leader of the group to try to make a deal to end it — and would have acted against them if negotiations failed because “you cannot let people take over federal property.”

In addressing the trade imbalance with China, Mr. Trump addressed an issue that has been a focus of his speeches going back to 2011, when he considered running for president when President Obama was seeking re-election. In the editorial board meeting, which was held Tuesday, Mr. Trump said that the relationship with China needs to be restructured.

“The only power that we have with China,” Mr. Trump said, “is massive trade.”

“I would tax China on products coming in,” Mr. Trump said. “I would do a tariff, yes — and they do it to us.”

Mr. Trump added that he’s “a free trader,” but that “it’s got to be reasonably fair.”

“I would do a tax. and the tax, let me tell you what the tax should be … the tax should be 45 percent,” Mr. Trump said.

trump hard hat

Subtle like a brick through a window; a Soji window.

Brilliant Trump strategy.  Campaigning for President, but more importantly campaigning for a strengthened U.S. manufacturing base and putting the largest economic adversary on notice.

Why today?  In case you haven’t noticed the Chinese stock market is in a severe state of contraction.  Right now the financial monolith that is China is back-on-its-heels and in a severe state of crisis.  If the Chinese manufacturing base was ever vulnerable, right now is the time to deal.

When a borrower owes a lender a million dollars, it’s the borrowers problem. When the borrower owes a lender a trillion dollars, it’s the lenders problem.

[…]  China is on a path this year to surpass Canada as the biggest single trading partner of the United States, and its factories provide American consumers with lower-cost products ranging from clothing to computers, so such steep tariffs could hurt the pocketbooks of many Americans.

In early November, Mr. Trump released a little-noticed plan about changing the United States economic dynamic with China. The tariff number was not featured in the plan, but Mr. Trump called for, among other proposals, pressing to give “American workers a level playing field” to restore the manufacturing base.   (read more)

The “Art of the Deal” is all about leverage, and knowing exactly when to use it to your advantage.  If there’s one thing a vulnerable Chinese economy could not withstand at the moment, it’s the risk of U.S. tariff expansion….

Trump thumbs up

Amazing instincts.

….Now, for the Chinese delegation, how about we compromise a little, maybe to 42.5%, maybe to 35%, but before we talk trade – we’ve got this little North Korean Nuclear concern we need your help with….

…Nudge, nudge – wink wink !

US President Barack Obama (R) listens to

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