Treasury Secretary Steven Mnuchin Discusses China, Trade, ZTE, Suspended Tariffs and NAFTA….

Economic security is national security. “Economic growth, national security, those are the Presidents’ two most important priorities” ~ Secretary Mnuchin.

Treasury Secretary Steven Mnuchin discusses the ongoing trade negotiation with China and the specifics of sector-by-sector agreements in principle. The overall approach by the Trump administration is to balance the trade relationship through opening of Chinese markets to U.S. exports and retain stability within U.S. manufacturing sectors.

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The dragon is in the details…. and that’s where you find slayer-Secretary Wilbur Ross!

After over a year of discussions and structured way-points, China came into last weeks U.S. trade talks with outstretched steel fists. The delegation they sent to the negotiating table were some of the most loyal and die-hard communist leaders within their national economic team.

It was obvious China is projecting its interests in dragon-mode knowing they are dealing with an entirely different administration than they faced before.

President Trump uses the point of “deficits” because it has a familiar catch and understanding with the U.S. audience.  However, President Trump knows the real issue is the amount of domestic production -vs- the amount of imported foreign goods. If the Chinese team frame their analytic offers from deficit reduction pitches, the actual deals will never materialize.

President Trump, Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin, U.S. Trade Rep. Robert Lighthizer, and Trade Adviser Peter Navarro are looking at sector by sector trade issues. It is not simply an import-export equation; it’s about a longer outlook and more balanced and stable manufacturing base.

President Trump is not focused on enhancing interdependency models (deficits), he is looking at expanding independence models sector by sector. Can this sector thrive independent of a need for imported material (raw good, part, service or intellectual property)?

The U.S. goal is for each individual sector (goods or services) not to be necessarily dependent or co-dependent on international import. This America-first approach reduces risk exposure and enhances investment perspectives favorably toward the U.S. by creating long-term economic stability.

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This entry was posted in China, Economy, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

61 Responses to Treasury Secretary Steven Mnuchin Discusses China, Trade, ZTE, Suspended Tariffs and NAFTA….

  1. GrandpaM says:

    Thank you, Sundance for again making what can appear quite complex easy to understand. Love our team of dragon slayers, headed by our VSG PDJT.

    Liked by 19 people

    • Karen says:

      I love that Wilber Ross is always smiling, no one else is in the above picture.

      Liked by 14 people

      • Nom de Blog says:

        To be fair, it is not clear Mnuchin has a second look. That might be a smile. Love his professional work for PDT but his poker face is eerie.

        Liked by 4 people

        • G. Combs says:

          Mnuchin has a bit of a smile just a little less than in his bigger portrait in the second row. He certainly does not look grim.

          The Wilburine has a big grin like he is enjoying the heck out of all of this. He makes me smile in response when ever I see that grin.

          Like

      • JC says:

        Noticed that, too, Karen. I can’t look at him without smiling, myself. Ever. I just think he and our President enjoy their work. A lot. God bless ’em.

        Liked by 2 people

      • HHC - 2nd 16th says:

        That is a smile of confidence.

        Liked by 4 people

  2. Deplorable_Infidel says:

    “The U.S. goal is for each individual sector (goods or services) not to be necessarily dependent or co-dependent on international import. This America-first approach reduces risk exposure and enhances investment perspectives favorably toward the U.S. by creating long-term economic stability.”

    Our President certainly has done his homework on these issues. So much for the critics “No foreign policy experience”, etc. President Trump is proving to the naysayers almost on a daily basis how wrong all of them are and how much of a grasp he has on what is necessary to MAGA and keep on winning.

    Is your popcorn ready?

    Liked by 17 people

    • Grandma Covfefe says:

      Yep…been waiting a looong time for this winning moment.

      May the Lord Protect and Bless President Trump and his MAGA Team.
      Thank you, Lord, from a grateful heart.

      And as always, thank you, Sundance and crew, for your excellent work here.

      Liked by 14 people

    • Justice Warrior says:

      I have to buy another 25lb bag, 7 lbs of butter and salt. Then I’m good! 😂

      Liked by 1 person

  3. zorrorides says:

    “Say Hello to my little friends…”
    The wonderful fierce Wilburines with their new sidekick, Kuddly Koala. I love it.

    Rush said today Trump’s Team won the trade talks today, easy. I got the impression the Wilburines won with a TKO in the first round. MAGA.

    Go Go Go Big Ugly.

    Liked by 9 people

  4. The death of the multinational corporations and banks is being negotiated. I’m so happy and proud of our VSG President Trump and his killer negotiators who will make main street America great Again.

    Liked by 15 people

    • Grandma Covfefe says:

      Our America is back again.
      Praise the Lord!

      Liked by 6 people

    • GB Bari says:

      I think most if not all multinationals and banks have intelligent experienced management and they will adapt to whatever the economic environment changes occur as a result of more even, reciprocal trade between the US and other nations.

      Liked by 1 person

      • Lou Foxwell says:

        Overcoming the ability of multis to set prices globally by nation or sector is fundamental to a free economy. Food prices here in the US are high compared to imported dry goods. Necessarily higher prices for domestically produced goods needs to be coupled with an open economy for food producers to lower domestic food prices. US based food producers need to be delinked from multi contracts for this to happen. Multis have been squeezing independents out of the market to force them to sell exclusively to the Multis. This has to stop.

        Like

  5. magatrump says:

    Sector by sector individual NOT all sectors clumped together like some multinational globalist corporation.
    POTUS is negotiating with China sector by sector and not all sectors together just like he negotiates trade deals nation by nation and not all nations together. MAGA Winning!!!
    Thank you SD for your excellent explanation.

    Liked by 13 people

  6. A government big enough to give you everything you want, is a government big enough to take away everything that you have.” – Thomas Jefferson

    In much the same way, a trade relationship that is too big has the potential to hold hostage everything you have. Think about our trade with China from their perspective. They have no leverage in talks, why? It’s not just their trade surplus that makes them vulnerable to US demands but the fact that such a large portion of their economy is reliant on the US market. Likewise, why does the US have so much leverage in talks with China, the second largest economy in the world? Because we have a large economic base that operates independent of trade with them.

    I think the key to this entire process is going to be facilitating trade that doesn’t merely stimulate manufacturing for the purpose of exporting, but exporting for the purpose of manufacturing. In other words, leveraging imports and exports in a way that maximizes domestic economic output for domestic consumption. I think that is also why you see the Trump team not solely focusing on reducing trade deficits, but on improving individual economic sectors that have been hardest hit or are exceptionally vulnerable (steel, auto, intellectual property, etc.), and that serve as foundations for other sectors of the economy.

    This is going to be a really exciting thing to watch unfold. #MoreWinning 😀

    Liked by 15 people

    • I think I need some clarification. There are sector that the USA needs to strengthen for domestic security & to fulfill domestics demands without importing. The ability to sell to China will help these sectors expand & tool up. Once they do tool up however those companies will be dependent on the Chinese & US demand or they will need to find other International buyers or shrink.
      I do not see that as a bad thing. If we can supply our demands in time of war we are safer, the increased jobs strengthen the economy and that raises opportunities across America. Even the dependency is OK since codependent economies are less likely to devolve into wars. However I cannot unpack this portion of your post in the context of the above framework.
      “I think the key to this entire process is going to be facilitating trade that doesn’t merely stimulate manufacturing for the purpose of exporting, but exporting for the purpose of manufacturing. In other words, leveraging imports and exports in a way that maximizes domestic economic output for domestic consumption.”

      Liked by 1 person

      • Sure. What I was hoping to describe is a focus on growing our domestic economy through added production to meet export demand. In other words, structure our trade in such a way that the manufacturing of our exported products stimulates domestic production of other products, not just the manufacturing of the exported product.

        For example, exporting raw material such as iron, aluminum, etc. has a fairly small impact on other businesses since there are few to no inputs. However, exporting finished products such as cars, electronics, etc. has a large impact on other businesses since there are several inputs often spanning several different economic sectors. Basically, I’m just trying to describe a structure where our trading is designed to maximize the associated growth domestically, rather than simply trading “equally” to remove a deficit.

        Also, I think you are absolutely right. Being self-sufficient in certain sectors of the economy is a crucial aspect to our national security and trade can be exceedingly beneficial to many of the industries in those sectors. That’s one of the reasons I think this process is so exciting! We are witnessing the establishment of a new economic and national security paradigm by a group of people finally utilizing America’s full potential… what a time to be alive! 🙂

        Like

    • TRANSITION CYCLE Considerations:

      China has purposefully pursued a strategy I’d describe as “Economic Entanglement” to insinuate themselves into every critical American Sourcing-and-Supply Chain.
      • They became sole sources of key products to displace alternative sources of supply.
      • This was designed to make a continuous supply of critical products INDISPENSABLE.
      • They planned to make it impossible for the typical America politician to ATTEMPT renegotiations, much less PREVAIL.

      I’m betting the Defense Department and other Federal Procurement people are frantically developing domestic and ally sourcing to eliminate Chinese infiltration of our supply chains.

      By now, Industries are no doubt following suit, recognizing the existential threat of sanctions from a Chinese sabotage of the deal with North Korea, not to mention escalating rounds of punitive sanctions for China’s theft of Intellectual Property, Currency Manipulation, One-Sided Tariffs, Regulatory Obstacles to buying from America, Back-Door NAFTA exports to America and Government-funded Predatory Pricing to shut down our Steel & Aluminum Industries.

      Sourcing Transitions in sourcing will take 1-2 years.

      Delays in reaching a China Deal will therefore reduce our EXPOSURE to retaliatory Trade Sanction disruptions and multiply our LEVERAGE as China recognizes how rapidly and expansively industries and countries are transitioning to source elsewhere.

      Liked by 1 person

    • By the way, China, have you noticed a surge in layoffs yet from the above Sourcing Transitions not to mention the Forward Buying American businesses did to inventory up as an insurance policy against a Trade War?

      Just as soon as the North Korean Denuclearization Deal and a China Trade Deal are put in place, Americans will immediately stop importing until the month(s) of inventories have been consumed.

      China can make those temporarily layoffs permanent as they realize we’ve discontinued buying from China and transitioned to Allied countries instead.

      Liked by 1 person

  7. lokiscout says:

    Lots happening today and still a long day to go before the midnight posts!

    Liked by 9 people

  8. Bob Thoms says:

    Are the “trade talks” with China over? Or are we in an interim phase? Media outlets are selling it like we have struck a final comprehensive deal.

    Liked by 1 person

    • lokiscout says:

      Like building a house the framing is up pending the customer wanting any more rooms added or those framed changed! Long way to go before the painter removes the last masking tape and drop clothes then comes the furniture, drapes, rugs and stuffing the pantry.

      Appears we are making forward progress two steps forward one step back. I’ll take it!

      Liked by 5 people

  9. The Boss says:

    I read easily a half-dozen investment newsletters and other investment-related materials each day. My library is largely contrarian but practical nevertheless. This post is right up there, among the best I’ve read on this topic.

    Liked by 7 people

  10. Florida_Frank says:

    With the statement that the Chinese will now buy almost all that our farmers can produce, does that mean the cost of food will be going up significantly for Americans?

    Liked by 1 person

    • The Dept of Ag places limits on the types and acreage of crops each farmer can produce to “prevent over production and maintain price stability”. Remove the limits and American farmers could feed the world.

      Liked by 4 people

      • Thank goodness the Freedom Caucus in Congress thwarted the $850+ Billion Farm Bill.

        President Trump will get one hell of a do-over after the China Deal:

        What we save from Payments-Not-to-Plant and Price Supports – not to mention the increases in Tax Receipts for expanded production, the GDP Multiplier from Trade Deficit Reduction and the Savings from reductions in Unemployment and Welfare Costs – will build the Wall TEN TIMES OVER!

        Like

    • beigun says:

      We can expand farming….plenty of lands. California is dumping fresh water from reservoirs filled to the brim from runoff all over the state. Cali was supposed to be bone dry according to Gov. Brown…no need for new reservoirs in a world of global warming. Think of the extra farming that could be done in the San Joaquin Valley if there were more reservoirs to collect the “good years of rain” in California as Steinbeck said.

      Liked by 3 people

    • zorrorides says:

      This is probably for PTrump’s second term, but what will truly help American citizens is when the will be allowed to legally sell food to one another. There are miles and miles of rural highways and small towns between. Once there were fine capable citizens out there who knew how to work hard and smart. Now the barriers to entry are too restrictive.

      Now the county folk tend to be forgotten poor folk, with few job opportunities and poor prospects. Government regulation has squelched small farming business; no more cows and sheep; chickens and garden produce. The grocery store can’t buy Grandma’s vegetables and sell them to the locals.

      Let us Americans in the countryside and small towns have a chance to buy fruit that ripens in the sun. Let us invest our money, labor and initiative into a market-based economy that’s not under globalist corporate control. Sundance has explained how Big Ag works, and how our food prices are much too high.

      Please, President Trump, free Americans to produce for ourselves again. It’s good for us.

      Liked by 6 people

  11. Linus in W.PA. says:

    I think I may be in love with Wilbur Ross, but damn if he doesn’t slightly resemble the ‘host’ from the “Tales from the Crypt” series….

    Liked by 1 person

  12. El Torito says:

    It’s one thing to win a negotiation, but keep in mind that it’s China – thieving, lying China. I’ll wait to see what they DO (not SAY) before I pop corks like an emotionally irregular fool.

    Liked by 1 person

    • beigun says:

      The US has an ASIAN trade problem, not just with China.

      Over 60 years of consecutive trade deficits with Japan, 30 years with Korea, and 20 years with China. The cumulative 100 years of trade deficits and wealth transfer helps to explain the rise of NE Asia and the decline of the US middle class. Trump does not blame Asia for out-foxing America. Trump puts the blame on the inept US administrations of the past 30 years when it comes to trade negotiations with Asia.

      Trump can make a good deal for the US, but will the Americans “keep the deal?”

      The Asian market is complex and most US businessmen are babes in the woods there…can not read the local paper or understand what is said on the tube.

      Liked by 2 people

      • El Torito says:

        All markets are complex. China is also dishonest and cheats. Your defense – saying “China’s market is complex,” is outdated and weak. China lies and cheats and manipulates currency. The only reason they give the appearance of cooperation now is because they are outsmarted.

        In the end, Trump holds all the cards to bring China’s economy crashing backwards 200 years. China will not be able to exist in a win-win world because before the ink is dry, they will be cheating. Fine with me – I will laugh myself to tears and sleep like a baby when POTUS brings them to their cheating knees.

        Liked by 2 people

  13. jmclever says:

    Hear that guy complaining about a string dollar? Makes me just want to reach through the screen and slap him!

    Liked by 3 people

    • logger says:

      The male journalists were laughably bad. The female journalist was pretty straight and average. I think she takes her jobs more seriously – I’ve seen her outperform the other financial journalists, which isn’t hard to do nowadays.

      Liked by 1 person

  14. gunsmithkat says:

    One of the things that early on turned me into a Trump supporter was an article in some east coast publication that described coming into a negotiation meeting with The Donald. The author was very impressed with how well Mr. Trump was prepared for the meeting with all his ducks in a row and the numbers to back them up. I took that as a sign that this was a man who would take the business of leading this country very seriously. It was prophetic.

    Liked by 7 people

  15. bob e says:

    Trump’s MVP Team. You make us proud Mr President. Get ’em guy’s .. get ’em ..

    Liked by 3 people

  16. Bert Darrell says:

    It may sound childish but I was very happy today because of this:

    Barely two weeks ago the US Trade delegation (depicted in the photos posted by SD), came back and made no formal announcement (because it had been their first meeting with their Chinese counterparts and it would have been premature), Hordes of trollynskies who only know how to suck their thumbs and eat cheap pizza served by David Brock (as compensation) laughed at the delegation and called them incompetent novices and worse.

    Now, the Chinese delegation comes to the USA and, in record time, agrees that the trade situation needs to be modified so that China is not the only partner benefiting from it and committing to buying agricultural products, cars, etc from America, thus reducing the massive trade deficit..

    The news turn out to be explosively positive and the stock market jumps nearly 300 points. Everybody celebrates, except the trollynski losers, who can’t even say “if, if, if, if, if” now, and have to settle for just sucking their thumbs because it’s free.

    Liked by 4 people

    • El Torito says:

      I truly want for our team to win and win decisively, in fact I would prefer if DJT just dump MOAB after MOAB on the Chinese economy. I’m not pooh-poohing any of the potentially positive results of the negotiating. I’m just trying to be realistic in that the success of the negotiations rely on an extremely dishonest partner. Because of that, I just believe that this step in the process is just China saying whatever we want to hear. I just cannot trust them so I believe in the end, everything that is averted now will ultimately have to be dealt with later. I know POTUS wants to give China every chance he can before he has to fix it without China’s cooperation, in fact that’s all I really see this as. No one love Trump and MAGA more than I do. I just think sometimes people need to wait for results.

      Liked by 1 person

      • Bert Darrell says:

        Little Bull: the Chinese have been cheating America for a long time because corrupt “negotiators” went for the pay off instead of American interests. The Chinese are fully aware now that PDJT is not for sale and will be very careful not to thread on his toes because they know that all heck will break loose in the do so.

        Liked by 2 people

      • Wilburine is Watching.
        He KNOWS how to Verify.

        Like

  17. Bob Thoms says:

    Would P Trump cut a trade deal with China, without getting assurances on de-nuclearization of the Korean Peninsula?

    I don’t think so.

    Liked by 2 people

  18. M33 says:

    Wish my state had this same philosophy…

    The (HAWAII) goal is for each individual sector (goods or services) not to be necessarily dependent or co-dependent on (MAINLAND) import. This (HAWAII)-first approach reduces risk exposure and enhances investment perspectives favorably toward the (HAWAII) by creating long-term economic stability.

    We are in the middle of ocean. If trade gets cut off… we only have 11 days worth of supplies for a million people. That’s it.
    And our economy is 90% tourism.
    It’s insanely irresponsible…

    Like

  19. Lu Calico says:

    The munchkin has sold us out on intellectual property and is giving away the store. Skull & Bones all the way.

    Liked by 1 person

  20. littleflower481 says:

    Wondering about Peter Navarro…he pitched that spy Stefan Halper for a position with the Trump Administration…it’s like Trump cannot trust anyone..
    http://www.thegatewaypundit.com/2018/05/trump-official-navarro-pushed-white-house-to-hire-fbi-informant-stefan-halper/

    Liked by 1 person

  21. RWI schweitzer says:

    Sally Yates..Rot in Hell.. communists are not welcome in the US

    Liked by 2 people

  22. Deplorable_Infidel says:

    U.S. Hikes Tariffs on Chinese Steel Exported via Vietnam

    U.S. steel producers complained imports of Chinese-made steel through other countries soared after Washington imposed anti-dumping charges in 2015.

    https://www.ien.com/supply-chain/news/21006056/us-hikes-tariffs-on-chinese-steel-exported-via-vietnam

    “WASHINGTON (AP) — The United States has raised tariffs on steel from Vietnam that Washington says originated in China and evaded anti-dumping duties on Chinese steel.

    The announcement following this week’s truce in a broader trade dispute between Beijing and Washington reflects the wide array of strains in the world’s biggest trading relationship.

    Importers of corrosion-resistant and cold-rolled flat steel from Vietnam will be required to post deposits to pay possible duties of 39 to 256 percent, the Commerce Department said Monday.

    U.S. steel producers complained imports of Chinese-made steel through other countries soared after Washington imposed anti-dumping charges in 2015 to offset what it said were improper subsidies by Beijing…..”

    Like

  23. Perot Conservative says:

    Business papers claim our team had infighting, and we leaked a goal of lowering the trade imbalance by $200B before all details worked out. These items supposedly blew up negotiations with only minor trade improvements expected. They also claim minimal changes to protect IP.

    Trump tweeted today a major announcement coming for American Auto workers.

    PT also tweeted 6 hours ago the China deal probably needs a “new structure”. Translation? North Korea de-nuke comes first.

    Like

  24. Perot Conservative says:

    Ugh.

    Like

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