President Trump often holds local media Q&A’s when discussing specific local aspects to larger trade and economic initiatives. In this quick interview with Charles Benson President Trump discusses the Foxconn deal (more on that will follow), and the larger issue surrounding a global trade reset objective (important video below).
As steps are taken within the America-First economic initiatives, many people are overlooking President Trump’s ultimate goal of a complete global reset in trade. The Trump administration wants all trade tariffs and trade barriers removed so that all nations can compete on an even field.
In order to achieve that goal, POTUS Trump is applying the process of reciprocity; assigning an identical U.S. trade standard as the country being confronted.
The international community cannot negotiate (in good faith), from an adversarial position, against an identical trade policy they apply toward the U.S.
However, until today no President has ever called out the global trade hypocrisy; let alone challenged it directly. President Trump will not back down from this approach. The international trade community is just now realizing that fact.
Within the process of negotiation to achieve this reset, President Trump begins to apply the principles of reciprocal trade tariffs. This is the first phase; this is where we are now.
Each nation is now recalculating all of their economic trade analyses, using the new Trump applied reciprocity-initiatives as changes to old equations and calculations. The baselines have changed.
As each nation quantifies the potential for damage, they formulate a plan to avoid the worst-case scenario. Remember, access to the $20 trillion U.S. market is required in order for almost every trade partner to survive; this is ultimately Trump’s leverage.
Each partner will have to concede to terms to continue access to the U.S. market. The terms are simple: “Free, Fair and Reciprocal” trade; on every sector (except national security); without government subsidies. In essence, a completely free global market.
Within the interview, President Trump notes: “the longer it takes, the better deal we are going to make for our country.” In essence, as each nation tries to retain their current benefit status; the longer they wait to apply reciprocity; the bigger the negative ramifications from not accepting the current terms. This is the key point: