Report: President Trump To Announce “Section 301” Trade Investigations Against China on Monday…

There have been multiple media reports in the last six hours that President Trump is going to announce trade investigation/sanctions against China during a press conference scheduled for Monday.

It makes sense the previously postponed 301 trade investigation against China for violations of intellectual property rights might be announced.

Section 301 of the Trade Act of 1974 provides the United States with the authority to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services. It is the principal statutory authority under which the United States may impose trade sanctions on foreign countries that either violate trade agreements or engage in other unfair trade practices. When negotiations to remove the offending trade practice fail, the United States may take action to raise import duties on the foreign country’s products as a means to rebalance lost concessions. (LINK)

However, a note of caution. Substantive trade negotiations, the kind which involve economics and national security, are always fluid and subject to pause, postponement or changes in direction based on compliance – or expressions of a willingness to comply.

Remember, this is Trump.  Looking out for U.S. economic interests is the baseline for trade “leverage”, a tactic and skill uniquely evident in this administration’s trade team.  Section 301 is a tool, actually a massive atomic sledgehammer, to force compliance.

Historically S-301 trade investigations are considered so scary to the receiving country that almost every nation just complies with USTR requests and the investigations became moot.  The sanctions which follow the 301 investigations are rarely needed.

When trade negotiations are carried out on behalf of lobbyist interests, there’s not much need for strategy and leverage. This is the historic reference for the U.S. in the past 30 years.

In the modern era, almost all U.S. trade agreements have been constructed for political benefit and special interest lobbyists, not necessarily tied to the U.S. economy.

The results of these decades-long special interest approaches are visibly evident across most of the U.S. rust belt states. Additional reference points can be found in the historic North-American Free Trade Agreement (NAFTA – Mexico/Canada), the Trans-Pacific Partnership (TPP – Asia), and Transatlantic Trade and Investment Partnership (TTIP – Europe).

Much to the angst of the lobbying team within the U.S. Chamber of Commerce, President Trump has dispatched both the TPP and TTIP schemes in favor of bilateral trade deals with individual nations; and NAFTA renegotiation starts next week.

Last night President Trump and Chinese President Xi Jinping held a previously scheduled phone call. No doubt the keenly instinctual negotiator President Trump would give the respect of advance notice to Xi Jinping if 301 investigations are going to be announced.

Again, what is often forgotten is that modern China has never seen the U.S. launch a 301 trade investigation against it, or anyone else.  China’s rise to economic power has been within two prior decades where prior U.S. administrations’ were selling out the American economy using the World Trade Organization (WTO), created in 1995.

This is why launching a series of 301 Trade Investigations is such a big deal.  The conclusions are drawn from facts, there’s no way to skewer the data or hide the tariff that China applies to U.S. goods.  If China applies a 35% import tariff on something, Section 301 allows the U.S. to apply the same tariff to the import of that something from China.

When you grasp how much this 301 equalizer can impact trade opponents, and recognize how one-sided our trade deals are with China, you begin to grasp how devastating it will be for China if 301’s are utilized.  This is atomic sledgehammer type unidirectional leverage.  China has nothing they can do, other than the silly threats they have already made.

Now you know why China is using North Korea as their only bargaining chip.

Even the announcement of deploying the S-301 investigations is enough to move markets once the young traders teach themselves what the end ramifications are.

WASHINGTON – […] The ordering of the investigation will not immediately impose sanctions but could lead to steep tariffs on Chinese goods. Trump has expressed frustration in recent months over what he sees as China’s unfair trade policies.

The closely watched announcement appears to have bipartisan support, although Democrats have accused Trump of not being tough enough on trade.

Trump suggested in comments to reporters on Thursday that he might be more lenient on China if officials take more aggressive action to stop North Korea from developing a nuclear weapon that could strike the United States. But it appears his longstanding frustration with China has remained.

Trump told reporters in New Jersey that he would call Chinese President Xi Jinping on Friday night to discuss North Korea. “We have been working very closely with China and with other countries,” he said.

The president was slated to announce the China trade action last week. But the announcement was delayed amid sensitive negotiations with China over the UN sanctions. (more)

BEIJING (Reuters) – The North Korean nuclear issue needs a peaceful resolution, Chinese President Xi Jinping told U.S. President Donald Trump in a telephone call on Saturday, and called on the “relevant side” to exercise restraint, state television said.

Xi told Trump that it was in the joint interests of both China and the United States to achieve the denuclearisation of the Korean peninsula and protect peace and stability there, state television said in a brief report.

“The relevant side must at present exercise restraint, and avoid words and actions that exacerbate tensions on the Korean peninsula,” the report paraphrased Xi as saying.

Resolving the nuclear issue ultimately needs to be done politically via talks, and China is willing to maintain communication with the United States on the basis of mutual respect to push for an appropriate resolution, Xi added.

Chinese state television cited Trump as telling Xi that he fully understands the role China has been playing on the North Korean nuclear issue. (link)

I bet he did…

And I bet he does.

This entry was posted in ASEAN, Big Government, China, Economy, energy, Environmentalism, European Union, India, Legislation, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

103 Responses to Report: President Trump To Announce “Section 301” Trade Investigations Against China on Monday…

  1. realcapedcrusader says:

    And we are kicking China’s, and every one else’s butts in the World Track & Field Championships. 🇺🇸

    Liked by 18 people

    • Johnny Bravo says:

      China is the one legged man in an arse kicking contest!

      Liked by 2 people

      • If denuclearization happens, you can bet the Nobel Peace Prize will go to Phat Boy Kim and/or President Xi, not President Trump. Any takers??

        Liked by 13 people

        • fleporeblog says:

          You are absolutely right! Even if offered, our President would tell them to stick it where the sun doesn’t shine.

          President Xi Is not a dumb man. He realizes that our President is not going to back down. Monday’s announcement is the beginning of the Economic War with China 🇨🇳. That war has only one outcome. We will prevail and China 🇨🇳 will be destroyed economically. The fact that in the readout our President still mentions the historic trip later this year to China 🇨🇳 is a great thing. There is no way our President is making that trip without the issue in NK resolved.

          I honestly see China 🇨🇳 putting an end to all of this. I actual see the real possibility of ending the Korean War and NK becoming denuclearized. China 🇨🇳 will assure the Fat Man that they will defend them in the future and our President will agree to have all our troops removed from South Korea 🇰🇷. We will also agree to opening a US Embassy in NK.

          The sky is truly the limit with our Lion 🦁!

          Liked by 7 people

          • carrierh says:

            flepore, China will not be hurt but rationally selling their products here and we will continue to sell products there, so a win win deal for both countries. Today’s Chinese love that they can now buy those expensive clothes, sport shoes, even underwear and sell it for more in China, while we continue to buy the cheaper items they send because we wanted them to “save money”. They actually can and are producing great products and now we will have an opportunity to purchase them as well. We have visited China several times and I studied there and more it is entrepreneurial and making more money, have several millionaires and billionaires now, great cars and still affordable to travel in China, see how beautiful the country is, and great/real Chinese food. No tipping allowed either. That sure astounded us because you are employee and just do your job! Great universities, children start studies at age 3, and, as my spouse has said more than once, the best thing Mao did was to force education for all!, so yes they are diligent students and student’s/parents pay for that education as well.

            Liked by 1 person

          • I would be concerned that removing all of our troops from South Korea would tempt China to try to reunify the South with the North. Any form of democracy would disappear from the South. I don’t see President Trump going quite that far, although he may reduce the footprint of our military presence there. Also, China still has significant markets outside of the USA, so while we have good leverage, I don’t believe we have total leverage.

            Liked by 2 people

      • Matt Musson says:

        China is directly stimulating her economy at unsustainable rates. It is like an Obama Stimulus every 17 days. Yes. Over 800 billion loaned every 17 days.

        Unsustainable. Look for Xi to announce an end to this at 19th Party Congress in the Fall. Then get ready for the crash.

        Liked by 1 person

  2. Donna in Oregon says:

    Can’t wait for Monday. This has been a long time coming.

    Liked by 24 people

  3. PreNanny says:

    The year of the chicken not going so well for China.
    Thank you President TRUMP and admin.
    MAGA

    Liked by 22 people

  4. Troublemaker10 says:

    This “high pressure NK strategy” is getting very interesting.

    Liked by 11 people

  5. Lunatic Fringe Phd (undocumented) says:

    Please tell me we hardened our interwebs and critical systems before doing this. China has been known to hack a thing or two.

    Liked by 9 people

  6. graphiclucidity says:

    Be prepared for the reaction by the opposition.
    You’re going to hear the words “Trade War” a lot next week.

    Trump is about to position a good portion of the media and the left as being on China’s side, just like they are doing with North Korea.

    Genius.

    Liked by 27 people

    • progpoker says:

      Gee…I’m kind of pining for the good old days when the press harped on “Muh Russia” 24/7!

      Talk about owning the news cycle. PT is amazing!!

      Liked by 13 people

    • wheatietoo says:

      We’ve already been in a Trade War.

      Our Secretary Wilbur Ross has been saying this…and also pointing out that we have not been fighting back.

      The enemedia has been willfully ignoring it.

      Liked by 20 people

      • Dizzy says:

        Ross? Trump has been saying that line since his campaign started! It’s not been a war, it’s been a slaughter. Wars are fought. Cattle are slaughtered. And under the direction of traitorous “leaders,” the American people, economy and our prosperity have been huddled, helpless livestock. Hard to fight back when nobody cares to hear the screams of past generations’ lost savings and livelihood, and future generations lost opportunity and birthright.

        I’m an atheist myself, but goddamn if Trump isn’t a shepard leading a flock that has been preyed upon by bloodthirsty wolves back to safe pasture. Things were looking grim there.

        Liked by 10 people

        • redchick67SS says:

          ^^^This right here. I know a few atheists who have said the same thing about Trump. No matter what you believe or don’t believe…his presidency seems to be guided by a higher power.

          Liked by 5 people

        • Aguila2011 says:

          I think you guys are using the wrong analogies. In my book, this is more akin to our great politicians (sarc) and business leaders (pure greed) hiking up their skirts and yelling BOHICA … may I have another please!
          Anything for a buck. That’s why they are globalists. They don’t give a rip about America or it’s people, just money. Crony capitalism is the cancer of this country. I hope to see Trump start to deal with banks, Wall Street, TBTF, and white collar crimes … but I am not holding my breath.

          Liked by 1 person

      • graphiclucidity says:

        The Mamet Principle.

        Liked by 2 people

    • trialbytruth says:

      Fellow travelers all.

      Liked by 1 person

    • trialbytruth says:

      Fellow travelers all.

      Like

  7. val66 says:

    Are the 301 trade investation REALLY an atomic sledge hammer? It seems to me the 301’s are merely what will get the US to be on equal terms with China on trade and in a fair trade agreement. Not an over punishment, from which we reduce when we get our achieved goals.

    What about removing Chinese banks from the international banking system? What about banning Chinese imports? What about other sanctions?

    Liked by 7 people

  8. Sylvia Avery says:

    It will be interesting to watch how this is covered by the media. I don’t think they are gonna understand it, and if they don’t understand it, how are they going to cover it? I bet it will be ludicrous.

    Liked by 22 people

  9. Southern Son says:

    P45 is Our 1,000 Ton Hydraulic Jack!
    Sumpin’s gonna Give.
    Clear!!

    Liked by 17 people

  10. seabrznsun says:

    I can’t help but think of this.

    Liked by 12 people

  11. Jedi9 says:

    Me likes! Me likes a lot! MAGA!

    Liked by 3 people

  12. teaforall says:

    The 301 sanction is like a Trade Wind heading back to China. One that is long over due
    Thank Sundance for all the info MAGA………….

    Liked by 11 people

  13. wheatietoo says:

    About that ‘face saving’ thing that the Chinese engage in…

    I think they use that as a sort of weapon against us Westerners.
    It’s like…”You have to allow me to have this, to save face in my country.”

    Why should we be so concerned about them ‘saving face’?
    We can try to be graceful and accommodating, sure…but up to a point.

    But we shouldn’t be expected to let them take advantage of us, to let them ‘save face’.

    With a $350 billion Trade Deficit with China…they’ve already had a lot of face-saving.
    And we cannot afford it anymore!

    Liked by 10 people

  14. H.R. says:

    I wonder if China will buy manufacturing capacity in the U.S. to bypass some of the sanctions?

    The Japanese and German car makers did so, but they had expertise in designing and building automobiles and they kept the high-paying design and engineering jobs in the home countries. They have intellectual capital that they have retained and have actually gained worldwide market share by establishing plants here in the U.S. Taiwan has been doing that a little bit of the same with machine tools, though they still have a way to go.

    The problem I see is that China hasn’t developed any particular expertise in any industry. Nobody is over in China trying to steal their intellectual property because they’d just be getting their own ideas back.

    But China does have some money, so again, I wonder if they will buy into some industry here to start building some expertise and at the same time, bypass some sanctions?

    Liked by 5 people

    • big bad mike says:

      Never happen. They would have to pay their workers here and would be arrested when they buried their disgruntled employees behind the factory.

      Liked by 7 people

    • mireilleg says:

      The Chinese have been stealing intellectual property for decades. In 1968 I moved to Japan. I was young and thirsty for knowledge on a variety of topics. I was amazed to find books that would have cost close to a week’s salary in Europe or the US sell for pennies on the dollar. Even with the very beneficial exchange rate of the time this was astounding. I bought these books with abandon, only to realize years later that they were printed in China without paying copyrights.

      Liked by 11 people

    • SpanglishKC says:

      They already own quite a bit: lots of Hollywood, real estate, etc etc
      In years past they have purchased entire factories and moved EVERYTHING to China.
      They will accelerate BUYING US assets even if just to stem losses.

      Liked by 1 person

    • SpanglishKC says:

      They already own quite a bit: lots of Hollywood, real estate, etc etc
      In years past they have purchased entire factories and moved EVERYTHING to China.
      They will accelerate BUYING US assets even if just to stem losses.

      Like

  15. Bree says:

    Watching all this play out will be one for the books.

    Liked by 2 people

  16. Howie says:

    They will claim fair use because they paid the Clantons for it.

    Liked by 2 people

  17. fisman45459 says:

    Monday 14 Aug 2017, day of the North American eclipse. Coincidence much!

    Like

  18. Chuck says:

    FTA “However, a note of caution. Substantive trade negotiations, the kind which involve economics and national security, are always fluid and subject to pause, postponement or changes in direction based on compliance – or expressions of a willingness to comply.”

    I am thinking this is the paragraph that will be ignored by many people. Easier to jump to conclusions that way (Just a reminder – jumping to conclusions is NOT exercise).

    Liked by 5 people

  19. pyromancer76 says:

    Thanks, Sundance. What an education you provide for us. Our past leaders, chamber of commerce, global corporations have been bleeding us, the U.S., of our power and our wealth for far too long. President Trump has been aware from the beginning; he and his team are plugging the holes and (re)building a strong wall.

    I send your research to others and suggest to them that if they want a virtual MBA, keep reading and follow the leads you provide. Best education anywhere.

    Liked by 2 people

  20. allhail2 says:

    “Democrats have accused Trump of not being tough enough on trade.”

    Wait, huh, what the hell are they talking about? Captain Ding Dong and his dingleberry minions pretty much turned the US into the world wide Dept of Free Sh1t for everyone to exploit. And now that those days are abruptly over, and Trump is boxing China, the biggest taker, in right out of the gate, what pray tell would they suggest? I mean c’mon, man. Three blind mice must have been Dems.

    You can take all the economic knowledge from Zero’s dingbats, shove it up an ant’s rear end, and it would roll around in there like a BB in a box car.

    Liked by 21 people

  21. no-nonsense-nancy says:

    Thank you, Sundance, for making this clear for me. I would have been very confused on Monday if you hadn’t informed us of this.

    Liked by 3 people

  22. appadoo9 says:

    The next concern by the media will that we’re being to hard on China

    Liked by 1 person

  23. WonkoTheSane says:

    I’m so glad to see the issue of intellectual property come to the fore, and I hope that people see just how important this issue is, and what it can and will to to restore wealth to main street. There are Chinese companies ripping off names, designs and logos of American products and flooding them into the US. It’s bad enough they are stealing, but they rip off the buyer and hurt the American companies reputation with their sub – par products. One small example here: (you may have to log in to fb to see it)
    https://m.facebook.com/story.php?story_fbid=1953629354885113&id=1771535673094483&fs=1

    And don’t get me started about what is happening domestically to American artists, particularly musicians and songwriters. In short, the DMCA is a joke and Google/youtube et.al. are making unfathomable profits off works other people created and without their permission. I’m always quick to bash Kim Dotcom when that low life’s name pops up. One reason is this is how he amassed his fortune — for which he has been indicted.

    OK, turning rant off for now before I fill the page and burn up the whole day.

    Liked by 5 people

    • Q&A says:

      Intellectual property doesn’t only pertain to the arts. Think of all the innovations in the sciences, medical fields, manufacturing tools and processes, and STEM applications. Many times, small companies are built around one brilliant idea that is brought to market. If that intellectual property is stolen or copied without regard to patent and the copied product floods the market with rock bottom prices, the small starter company folds. It’s no wonder why the Chinese steal ideas – there is no motivation to innovate when your ideas can’t be legally protected and you don’t benefit from all the hard work research requires. Add to that a culture that rewards theft and has no tolerance for individualism.

      Liked by 7 people

      • Orygun says:

        Great comment!

        “It’s no wonder why the Chinese steal ideas – there is no motivation to innovate when your ideas can’t be legally protected and you don’t benefit from all the hard work research requires. Add to that a culture that rewards theft and has no tolerance for individualism.”

        Another great reason why communism creates a backward society.

        Liked by 4 people

      • WonkoTheSane says:

        You are absolutely correct Q&A. The reason I stress the music theft is because out is close to my heart. I’ve recorded dozens of songs and will continue to record, but until congress protects my work (as they have the enumerated power to do laid out in Article 1 Section 8 of our Great Constitution) it will remain on my old tape machines, on my computer and a few CDs I’ve given to friends and asked them not to share. There is a solution to the issue, but it requires the congress critters to give a $#!*.

        Liked by 1 person

  24. TigerBear says:

    Sundance,
    You break things down for those of us who need a clearer understanding of these issues, and you do it very well. Not many can do that, and many of us here are thankful.
    You have certainly contributed to my education, and I am appreciative! 🙂 👍🏽👍🏽

    Thank you 🤗

    Liked by 2 people

  25. quintrillion says:

    Letting China use North Korea for decades to blackmail the USA has been grotesque and cowardly. Turkey is now blackmailing the EU and Mexico threatens to blackmail the USA with 3rd world invaders.

    I am so proud of President Trump and his team of experts for using trade law, and common sense with courage and conviction. No fear when right is might. God bless the USA.

    Liked by 4 people

  26. One man’s opinion;
    A common strand woven throughout all human history; from Eastern to the Western shores, through all political ideologies; is that might is right. Discussions only revolve around its application. Appeasement always ends up in subjugation.
    Jong-un is a one note charlie and remains in power because of the fear he holds over his own people.
    If China tells him not to send missiles towards Guam and he doesn’t, it is the end of his regime. His people will sense weakness, and major troubles within his country will rage.
    If he ignores China and sends them, China will aid to cut off the head of the snake and he must be eradicated fast, by a MOAB or such, he must not be allowed to live.
    If he is taken out, any battle directed at the south will be short lived or not happen. The vacuum is so intense that within a day a revolution will spring up in the north. The possibility of unification should occur quickly.
    Jong-un, no matter how he reacts, has back himself into a corner; couldn’t happen to a more deserving guy..

    Liked by 1 person

  27. Peter says:

    It’s amazing how many millions of snowflakes are missing every aspect of this presidency.

    Sad. There’s never been anything like it in their lifetimes, and they are under their own preverbial buses. Idiots.

    Liked by 4 people

    • Remington says:

      …And loving every minute under the buss. It’s how these morons get their… “bonafides”.
      Damn dummies…We are so privileged to have a ring side seat to see the rebuilding of our Country. This will be written about, and we are LIVING it…

      Liked by 2 people

      • LafnH2O says:

        Remington,
        We are participating in it, fellow treeper!!🇺🇸🇺🇸🇺🇸
        Every chirp from these branches is energy.
        The lions shared of this energy, I believe, is positive.
        Some more positive… than others.
        I believe, even with both oars not hitting the water at the same time…
        every chirp is important!
        We are ALL instrumental in MAGA.
        That’s what American is..
        E Pluribus Unum

        Like

    • Victor Laszlo says:

      I’ve been watching that for years. They don’t see what’s going on because their news sources don’t tell them. History that they’ve lived through is either unreported or rewritten. The MSM needs to go.

      Liked by 2 people

  28. FreeLayerOK says:

    Does the inflatable chicken look more like phat boy kim than President Trump?

    Like

  29. fangdog says:

    One thing I have noticed about anti-Trump Fake-media the past two years; After it is all said and done, it doesn’t mean a thing. The winning goes on like a hot-knife through butter.

    Liked by 5 people

  30. Founding Fathers Fan says:

    If ‘conservatives’ spent as much time removing RINOs in their primaries as they do on social media, the US would see progress like never before.

    Liked by 5 people

  31. vanwinkle says:

    “Now you know why China is using North Korea as their only bargaining chip.”
    The section 301 will take that away hopefully. Although China has never seen this in action, so its not clear how they will respond or even if they will take some US legislation seriously.

    Like

  32. bkrg2 says:

    Sundance – thank you sooo much for all the analysis and insight on this China = DRPK and how the USA can win without military action.

    If I didn’t find this Treehouse, it would have been difficult for me to figure out the economic pressure on China is the only non-military option. Sure, the sanctions on NK would help – but I knew that would not be enough (even if China upholds their UN position!)

    Honestly, I gave up on MSM many years ago, yet still pay attention to the headlines for major events like this. If I believed their nonsense, then we’re already having a nuclear war that evil Trump started against the wonderful St. Kim. Please don’t get me started… SMH and POF (shake my head and puke on floor).

    I had resigned my thinking to sanctions PLUS USA doing some covert operation to remove Kim and/or non-nuclear military action. Your 33 tweets have allowed me to sleep a bit better knowing the world is safe (and nuclear bombs to Seoul are avoidable before my son moves there in January). I can’t express my gratitude enough for your wisdom on this and many other topics (and wish I could donate even more).

    Liked by 3 people

  33. Black_Knight_Rides says:

    Looks like President Trump just gave China this final weekend to “save face” by solving the NORK Nuclear Threat.

    Anything less says “Hit me” with American Trade Sanctions.

    Message to China: “Are you feelin lucky …?”

    Like

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