Canadian Prime Minister Justin Trudeau Holds Press Conference on Steel and Aluminum Tariffs…

Justin from Canada presents one of the most ridiculous contexts for the U.S. 232 Steel and Aluminum tariff decision. Justin proclaims the imposition of countervailing duties by the U.S. indicates that President Trump considers Canada a national security threat. Seriously, I’m not kidding, that’s what he is stating – watch.  Additionally, his feelings are hurt.

Apparently Justin from Canada cannot draw a distinction between an industry being lost, and that loss being a national security risk, and the hurt feelings of the Canadian Prime Minister. Intensely ridiculous… even for Justin. Obviously the irrational liberals in both the U.S. and Canada will likely draw the same ridiculous and illogical conclusions.

.

China, the EU, Canada and Mexico have been exploiting weak U.S. trade policy for years. Through the effective utilization of targeted tariffs, with multiple opportunities -and warnings- to avoid the outcome, President Trump and Wilbur Ross cut the Gordian Knot.

The Big Club, driven almost entirely by the U.S. Chamber of Commerce and Tom Donohue are going bananas….. They can’t believe Trump actually did it. He actually followed through. The Wall Street consortium of multinationals are apoplectic.

Decades of economic gaslighting upon the U.S. electorate; massive manipulative multinational corporate influences; hundreds of millions spent purchasing U.S. politicians; and POTUS has just punched it all square in the face.

Amid ongoing trade stalemates with NAFTA and the EU, Commerce Secretary Wilbur Ross announced the U.S. Commerce Department will no longer provide exemptions for the European Union, Canada or Mexico on Steel/Aluminum tariffs.

In addition, a week ago, President Trump “instructed Secretary Ross to consider initiating a Section 232 investigation into imports of automobiles, including trucks, and automotive parts to determine their effects on Americas national security.

Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. As often stated by President Trump, Treasury Secretary Mnuchin and Commerce Secretary Wilbur Ross: “economic security is national security.”

In its current form NAFTA became an exploited doorway into the coveted U.S. market. Asian economic interests, large multinational corporations, invested in Mexico and Canada as a way to work around any direct trade deals with the U.S. By shipping parts to Mexico and/or Canada; and by deploying satellite manufacturing and assembly facilities in Canada and/or Mexico; China, Asia and to a lesser extent EU corporations exploited a loophole.

Through a process of building, assembling or manufacturing their products in Mexico/Canada those foreign corporations can skirt U.S. trade tariffs and direct U.S. trade agreements. The finished foreign products entered the U.S. under NAFTA rules. This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada/Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.

Why ship directly to the U.S., or manufacturer inside the U.S., when you could just assemble in Mexico and Canada and use NAFTA to bring your products to the ultimate goal, the massive U.S. market?

All nuanced trade-sector issues put aside, the larger issue is always how third-party nations will seek to gain access to the U.S. market through Canada and Mexico. [It is the NAFTA exploitation loophole which has severely damaged the U.S. manufacturing base.] President Trump, Secretary Wilbur Ross and U.S.T.R. Lighthizer well understand this structural problem. ONLY Trump, Ross, Mnuchin and Lighthizer were willing to confront this problem. If Trump had lost the election, Clinton would have joined the multinationals and U.S. workers would have suffered greatly.

The issue of Canada/Mexico making trade agreements with other nations (especially China), while brokering their NAFTA position with the U.S. as a strategic part of those agreements, is a serious issue that could not adequately be resolved while U.S. remains connected to NAFTA. With the tax reform benefits, American workers are realizing they are getting more money in their paychecks; and as the U.S. economy continues to gain momentum, that’s the backdrop timing for President Trump/Sec Ross making the announcement today.

The Automobile Sector is one of the biggest points of contention within varying trade negotiations. In the NAFTA discussion the auto-sector, via rules of origin, runs at the heart of NAFTA’s fatal flaw. The fatal flaw = use of Asian, mostly Chinese, auto components within auto manufacturing. Mexico and Canada arguing to allow more Chinese auto parts in North American manufacturing; and President Trump demanding more North American parts for North American auto manufacturing.

The auto-sector is representative of much of the manufacturing exploitation by multinational corporations beyond vehicle production. China has supported the exploitation because they produce the components for multiple sectors (furniture, appliances etc).

The auto-sector is much more than just complete assembled vehicles. In many ways the core trade issues of part origination, manufacturing and assembly of multiple durable goods sectors are represented within the auto industry process.

Current trade negotiations with the EU, China and NAFTA reached a loggerhead status around these core issues. Multinational ‘Wall Street’ corporations unwilling to lose their prior multi-billion investments and take a new ‘America-First’ approach. POTUS Trump is rightly angered by many of them because he specifically offset any investment losses with a new U.S. corporate tax structure.

All of that said, the issues with the auto-sector have now rippled out into other trade sectors with discussions coming to a standstill until the auto issues are resolved. Enter President Trump and Commerce Secretary Wilbur Ross with the plan.

Knowing all of the outlier, generally lesser, trade sectors are being impacted over the Chinese auto component issue, President Trump cuts the Gordian Knot and tells Commerce Secretary Wilbur Ross to consider a Section 232 review of auto industry as it pertains to imports.

Additionally, amid ongoing trade stalemates with NAFTA and the EU, Commerce Secretary Wilbur Ross has announced the U.S. Commerce Department will no longer provide Steel and Aluminum tariff exemptions for the European Union, Canada or Mexico. During a telephone briefing with reporters today Secretary Ross announced at midnight tonight the 25% steel, and 10% aluminum, tariffs on imported goods will begin.

Australia, Brazil and South Korea (KORUS) have completed trade agreements with the U.S. and will remain exempt from any countervailing steel and aluminum duty. However, Canada and Mexico (NAFTA), as well as the EU, have been unwilling to reach reciprocal and balanced trade agreements with the U.S. and will now be subject to the tariff.

White House:

“The United States was unable to reach satisfactory arrangements, however, with Canada, Mexico, or the European Union, after repeatedly delaying tariffs to allow more time for discussions.”

The U.S. Chamber of Commerce representing Wall Street multinational interests are going bananas. DC politicians, and the multinational media, who are fully purchased by the U.S. CoC lobbyists are attacking the Trump administration….. all predictable.

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This entry was posted in Big Government, Big Stupid Government, Canada, Economy, media bias, Mexico, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

417 Responses to Canadian Prime Minister Justin Trudeau Holds Press Conference on Steel and Aluminum Tariffs…

  1. TexasDude says:

    2 articles buttressing SD’s assertions

    1st from 2015 explaining loophole
    2nd from 2008 demonstrating loophole with GM product

    http://www.tradeready.ca/2015/trade-takeaways/exporters-rules-of-origin-get-naftas-benefits-avoid-heavy-penalties/amp/

    “NAFTA tariff preferences will only apply to goods that are found to “originate” in one of the three NAFTA countries …

    However, if inputs from non-NAFTA countries go through a certain amount of processing or transformation within the NAFTA region, they may qualify as NAFTA originating goods.”

    https://mobile.nytimes.com/2008/03/25/business/worldbusiness/25iht-chevy.4.11415496.html

    “GM has neither broadcast nor hidden the fact that the Equinox engine (and that of its twin, the Pontiac Torrent) is made in China. The car’s sticker notes that 55 percent of its parts are from the United States and Canada, 20 percent from Japan, 15 percent from China, and the rest from elsewhere. But no sticker tells consumers the engine is built at Shanghai General Motors, a joint venture between GM and Shanghai Automotive Industry, a Chinese company.”

    Liked by 4 people

    • Maquis says:

      Dang. I wouldn’t buy a weedeater made in China, much less a car.

      Liked by 1 person

      • Jedi9 says:

        Much to the point, while as painful as it was to watch this, I managed to watched it in it’s entirety. Not one question was asked about China, or the EU’s auto parts issue and exploiting loopholes in the original agreement nor anything relating to China and the EU in regards to the NAFTA. Only that USA’s announcement on imposing such Tariffs as being a central issue as being unacceptable. It was all USA is Bad, BAD, BAD! It will Hurt American workers blah, blah, blah! Lastly the one thing that really gave it away for Canada and twinkle sparkle socks and the intellectually dishonesty on display in this presser was being unequivocal about not signing or agreeing to a 5 year sunset clause, which was stated as being unconditional by Pence as part of any future negotiation, in other words non-negotiable. What does this mean in the bigger picture you ask? Probably the inevitability that the US will be leaving the NAFTA Agreement altogether. In other words, the three countries are at an impasse which is good news for the USA, now they have set the table for an announcement any day now to exit the agreement and end any speculation that a future deal between the three countries can be worked out. Win Win! Meanwhile, watching trades this morning, the dollar all of sudden against it’s counter part the EURO is gaining strength! All good news!

        Like

  2. CollusionMyth says:

    Remember that Canada can retaliate with Justin from Canada x2. Bieber will join Team Trudeau and Canada will place a huge tariff on his recordings.

    Liked by 1 person

    • dayallaxeded says:

      Please, please do that!

      Like

    • cali says:

      @CollusionMyth: Meanwhile Ryan and the GOPe members beholden to the CoC/Donohue are now reviving the amnesty deal DACA sideling the Goodlatte immigration issue as a means to give the left a win and our president as well as the American people the CoC plan of immigration. The sheer vindictiveness of the NeverTrump like Ryan and gang will do their utmost best to satisfy their masters at the CoC giving them what they want and sidelining the presidents/Goodlatte plan to built the wall among a host of other beneficial issues as agreed upon.
      I suppose its their way interfering in the NAFTA negotiation!

      Like

  3. kayray444 says:

    Our wonderful Canadian friends to the North and our not so wonderful friends to our south, who have stood by us in times of trouble, fought alongside us in wars, and been allies of ours for a very, very, long time, have also purposely and gainfully used a loop hole in NAFT to enrich themselves and their citizens at the expense of OUR citizens. Our people and their communities have been bleeding for a very long time. Our once GREAT manufacturing States have been, in some areas turned into ghost towns, factories shut down, jobs lost and all the social upheavals that go along with the carnage. With friends like Canada and Mexico who needs enemies.

    America First for a change

    Liked by 11 people

    • mike says:

      We’ve been propping up an increasingly socialist Canada. Now the freebies are a little less free at our expense. If they don’t like it, they should ask themselves whether they can get a better deal from Russia or China.

      If anyone is going to find out that it’s a cold harsh world out there, Canada could be a leader…

      Liked by 4 people

    • Orville R. Bacher says:

      Canadian Media is more controlled- even than that of the U.S. MSM. Therefore, in Canadian TV and newspapers, not one mention that Canada is cheating by using Chinese steel and auto parts.

      Liked by 1 person

  4. Paco Loco says:

    The Globalism fraud is coming to an end. Made in USA is going to be the brand of choice on everything from soup to hex nuts. PDJT will have the US manufacturing sector booming with the low tax, low interest rates and appropriate tariff policies before the end of his first term. Of course, Soros and the Globalists will test globalism by creating a depression in Europe and the UK that will spread to China. We are moving into some tricky times. The biggest problem for the US near term is the monster debt. Reducing that will require a rapidly growing economy, a congress who constrains spending and a Fed that stops inflating the Dollar.

    Liked by 10 people

    • mike says:

      Artificial trade patterns are a result of the banksters and going off the gold standard, as a limited supply monetary commodity.

      Liked by 1 person

    • Orville R. Bacher says:

      The size of the US debt is directly related to the loss of manufacturing jobs- the hollowing out of America. When you take private sector tax-paying jobs and turn them into tax-eating welfare recipients, then you get the debt we have today.

      Like

      • Cyber says:

        Look at our $20 trillion debt, and you can find most of it in Shanghai and a few other Chinese cities that look like the year is 2093.

        Like

    • cyg says:

      These globalists will find that their Illusions of grandeur are fake dreams They never had to eat the mud of their own policies before. Always hiding under the skirt of the US. Now they will find out the truth of how muddy their policies are. They did the sin of dissing the Donald. They get no pass now. No help. They’ll go broke wondering why. They’ll eat mud and crow for a very long time, at which point, the people will see how socialism and communism under the guise of globalism FAILS. AGAIN. This will be glorious theater.

      Like

  5. TexasDude says:

    Mexican auto workers make about $1/hr on average

    Canadian auto workers make about $35/hr on average.

    US auto workers make about $22/hr (tiered system average)

    So, if they can make $$$ in Canada, which they do, then the margin really comes from somewhere else, like, say, cheap Chinese car parts.

    Liked by 3 people

    • dayallaxeded says:

      If that’s $35C, then it’s much closer to $22USA. Just sayin’. BTW, how many massive recalls of consumer autos occurred prior to 1994? How many since? Betcha those faulty ignition switch modules in GM cars from the early 2000s that are still being replaced were Chinese parts-based, if not 100% Chinese.

      Liked by 3 people

  6. SouthernTrumpette says:

    It’s going to be SO MUCH FUN to watch the globalists try to play hardball with Trump. 🙂

    Liked by 1 person

  7. WSB says:

    So, it has taken me the better part of an hour to find the highest steel production year in US history. The search engines are working like the climate changers, controlling the stats. The evil doers do not seem to list any stats prior to 1969. Funny.

    I finally found one report that made a slight reference.

    “But today, even after five years of the Great Recession, the US remains the world’s third largest steel producer at around 96 million short tons last year. Annual output is down from a peak of roughly 150 million st in 1973, but that diminished 2013 total includes the healthiest integrated steel makers and a wealth of low-cost mini-mill steel production unparalleled in the world.”

    http://blogs.platts.com/2014/01/21/us-steel/

    This blog was attempting to sugar coat 2014, but check out the Chinese and US output in that chart above.

    This situation has been nothing short of war. And we are losing like wimps. And how do you like the word “remains?” If I am not mistaken, US Steel was the behemoth in the world, and Bethlehem Steel was the bride. Not China. We haven’t “remained” anything…we have been punched in the gut.

    Does any Treeper have historical stats for 1965 or any other earlier year between China and the US?

    Liked by 3 people

    • TexasDude says:

      I have no stats, but …

      Our government not only sold us out, but our corporations did in many ways.

      While the US government gave $$ to the world to build their plants and factories, US companies did not and/or could not to theirs.

      We built the world and neglected ours.

      Now we outsource and ship jobs away.

      Trump has changed that or is attempting to.

      Liked by 2 people

      • WSB says:

        Part of that was US tax and energy policy. It was completely destructive.

        Liked by 2 people

        • dayallaxeded says:

          And don’t forget EPA, OSHA, national/international labor unions, EEOC. All those things, when in progzi hands, make doing any kind of manufacturing very difficult and costly in the USA. Rolling back counter-productive regs and operating on a basis of individual responsibility, both on the part of workers and companies, can (and VSGPDJT already is doing some of this) minimize the problems, while maintaining most of the benefits.

          Liked by 1 person

    • Odysseus says:

      Here is an informative chart, from ~1930 to 1965:
      https://fred.stlouisfed.org/series/M0135BUSM585NNBR

      Liked by 2 people

      • WSB says:

        So, my Greek God…

        What a trajectory you found!

        It is so clear, it stings! Now, if we could see China’s history..oh wait…When did Nixon visit?

        Like

  8. Lemmy says:

    Breaking: Video of Sparkle Socks telling Trump how it’s gonna be:

    Liked by 3 people

    • Jan says:

      Thanks for posting that. It looks like NO ONE wanted to talk to Trudeau, least of all Pres. Trump. I’m looking forward to Trudeau’s “retaliation” and his demise in the next election. Because I think most Canadians will get tired of their pouty pc PM.

      Liked by 1 person

    • Sunshine says:

      I just love this. Still laughing.

      Liked by 1 person

  9. signreader says:

    Thank you VSGPDJT for yanking the suckers away from these grown up spoiled toddlers! Let them cry us a river ! They sure have attitude issues! Am looking forward to post NAFTA kicked to the curb presser of these two!

    Like

  10. masterman says:

    Liberalism is a national security threat.

    Liked by 2 people

  11. Bill says:

    Did I smell the US budget deficit falling starting at midnight, June 1st, 2018???
    Everyone was screaming about the deficit, well it’s going to start falling by 10s of Billions per month…

    Oh Section 232 on automobiles….wait until they hit DIMM memory and CPUs usage…
    That means new CPU fabs returning to the USA……

    The Chinese and others will not be happy!

    Like

  12. fred5678 says:

    Well, Justin just said, “These tariffs are totally unacceptable.”

    Not just “unacceptable”, but TOTALLY unacceptable.

    I suppose that means that tomorrow AM POTUS and Wilburine will remove the tariffs under such an awesome threat.

    Liked by 1 person

  13. fred5678 says:

    They say that Canada has been working on their list of retaliatory tariffs for a long time. What am I to do without my weekly supply of Molson ??

    Listen to “Border Crossing” here: https://www.twovoices.com/hear/

    The male voice is Garret Brown, inventor of SteadiCam, SkyCam, etc.

    Like

  14. scott467 says:

    “Apparently Justin from Canada cannot draw a distinction between an industry being lost, and that loss being a national security risk, and the hurt feelings of the Canadian Prime Minister. Intensely ridiculous… even for Justin. Obviously the irrational liberals in both the U.S. and Canada will likely draw the same ridiculous and illogical conclusions.”

    ______________________

    There are basically two possibilities to explain this behavior, which has been evident for quite a while now.

    1) Either these people (Leftists / Globalists) are literally insane, in which case they need to be locked up because they are a danger to themselves,

    or

    2) they are so indescribably evil that their insanity goes beyond standard diagnostic criteria into the area of being criminally insane — in which case, they need to be locked up because they are a danger to everyone else.

    I’m not kidding in the slightest.

    The Left has become the ideology of severe mental illness.

    Like

  15. scott467 says:

    “The Big Club, driven almost entirely by the U.S. Chamber of Commerce and Tom Donohue are going bananas….. They can’t believe Trump actually did it. He actually followed through. The Wall Street consortium of multinationals are apoplectic.”

    ______________________

    It’s not really a big club, not at all, that is a complete misnomer.

    It is an exceedingly tiny club, much less than 1% of the population, consisting of the wealthiest of globetrotters.

    They are the few, we are the many. When the many stop fearing the few…

    Liked by 2 people

  16. scott467 says:

    “They can’t believe Trump actually did it. He actually followed through. The Wall Street consortium of multinationals are apoplectic.”

    ___________________

    What a bunch of spoiled babies.

    They act like they’ve never been told ‘no’ before.

    That’s probably 99% of their problem.

    Like

  17. Pyrthroes says:

    The New World Order is not what Canada and Mexico, China and the bizarrely extraneous EU thought it was. A la Lanterne!

    Like

  18. Rod Fisher says:

    Question maybe someone can answer: If this deal NAFTA was so bad for us, why did we make it to begin with? I read the posts and understand what’s going on but not being an Econ major in college, why did we outsource our jobs with only the promise of cheap goods in return?

    Like

  19. Pogo1000 says:

    Considering the number of illegals coming here via our northern border with Canada, I’d have to consider saying it’s a “security threat.”

    Like

  20. Pogo1000 says:

    I wonder how much of so called retaliation is coming, not because Trump did wrong, but that he is correcting their unfair practices while they happen to be in power?

    Like

    • GB Bari says:

      Great question, for which I sense you already suspect the answer: Most, if not all of it.

      Like

    • cyg says:

      They are throwing tantrums because they already LOST all power. They are screeching death throes right now. Threats and fight are all they have left. Attacks will grow louder, stronger, more violent because it is all they have left. It is their last fight before death or prison or ultimate shame. Now they have been exposed, robes ripped off. Now the world will see that whatever power they ever claimed they possessed was merely an illusion. That is the one thing they fear more than any other, that everyone knows they are a sham.

      Like

  21. Mickturn says:

    I am firmly convinced the BAD trade deals were negotiated by Crooks (Democraps and Republicraps) on the US side so they can get kickbacks from the countries they sold us out to. No one is so stupid as to not see what will happen when bad deals are made, they were made on PURPOSE…and that is why the Deep State/Never Trumpe’rs are freaking out, their gravy train just got run off the rails by President Trump!

    Liked by 2 people

  22. Jamie MacMaster says:

    Canada. Is that country that imposes 240 % tariffs on US dairy products?
    And Justin, is this the same Justin who said he stands solidly behind Canada’s closed dairy market?
    It is, eh?

    Like

  23. Maura McHugh says:

    I thank GodPresident Trump won and pray he keeps him safe and vigilant and gives him wisdom
    as the counter attacks start coming, some from our own countrymen.

    Like

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