Interestingly Reuters uses the narrative from an anonymous Canadian “official” to frame an article about how global car manufacturers are coming together next week in Geneva to coordinate their strategy against the United States and President Trump.
Just let that part sink in for a moment…
Behind that context we can clearly see: 1) the economic importance of the Auto industry to the countries that are assembling; 2) their multinational corporate interest in retaining unlimited access to the U.S. market; and 3) the absolute need of all assembling corporations to find a way to keep their investments in NAFTA’s fatal flaw viable.
Who is gathering? Canada, Mexico, the EU (ie. Germany), Japan and South Korea.
Where are they going? To visit Geneva, Switzerland. Why Geneva? Because that way China can attend (see Volvo/Sweden) without being on the official roster. ::nudge, nudge:: ::wink, wink:: ::say-no-more Panda boy, say-no-more:: Additionally, Cecelia Malmström (EU Trade Minister), is the person Canada is relying upon to cover their anti-Trump position:
MEXICO CITY/OTTAWA (Reuters) – Canada, the European Union, Japan, Mexico and South Korea will meet in Geneva next week to discuss how to respond to threats by U.S. President Donald Trump to impose tariffs on U.S. imports of autos and car parts, officials familiar with the talks said.
The Trump administration has come under heavy criticism from automakers, foreign governments and others as it considers tariffs of up to 25 percent, a levy critics warn will hike vehicle costs, hurting auto sales and global industry jobs.
Several auto manufacturing powers have been talking to each other in recent days about their fears and a possible coordinated response to Trump’s “Section 232” investigation, which he ordered on May 23, into whether auto imports are a threat to U.S. security, sources say.
The probe could be completed within weeks, although similar ones ordered last year that led to tariffs of 25 percent on steel and 10 percent on aluminum took about 10 months. The Commerce Department has 270 days to offer recommendations to the president after such a probe starts. He then has 90 days to act upon them.
It was not immediately clear what kind of response the countries could be looking at, although Canada, the EU and Mexico retaliated with their own tariffs after Trump imposed levies on steel and aluminum imports in March. Another option is to fight the United States at the World Trade Organization (WTO).
Deputy ministers will gather in Geneva on July 31 to hear each other’s views, a Canadian official and a Mexican official told Reuters, asking to not be named because they were not authorized to talk to the media.
“The meeting is meant to bring together major auto producing nations so we can discuss our concerns over the U.S. Department of Commerce’s Section 232 investigation of automobiles and parts,” said the Canadian government official. (read more)
Here’s where I will repeat the funniest aspect that seems continually missed by all of the international smart-set:
President Trump doesn’t care !
President Trump doesn’t care what the opinion of the Auto industry is.
President Trump is not beholden to the interests of the corporate auto industry.
President Trump doesn’t give a flip about what international leaders gather to discuss.
President Trump will do what is in the best interests of the United States and the workers within it. Period; end-of-story. Done.
It is in the corporate and financial interests of the multinationals to retain their open-ended tariff-free access to the U.S. market by exploiting the back-door of NAFTA. The multinational corporations have invested hundreds of billions on the supply chain and manufacturing system all using this NAFTA loophole. They have also paid hundreds-of-millions for the political policy of multiple world leaders, all to support and retain their interests therein.
President Trump doesn’t care.
If it is not in the best interests of the U.S., it simply will not be allowed.
The multinational corporate leaders can assemble and strategize until they are blue-in-the-face. It matters not.
Seriously. They might just as easily attend a Swiss pancake tossing contest. POTUS Trump doesn’t care. Eventually they are going to have to ask, beg, plead and grovel to retain their position. When they accept the one constant in an ever changing universe, and finally realize the question is not “if” they will lose, but rather “how much”, then, and only then, will POTUS Trump enter the room with his golden tickets.
To get golden ticket access to the U.S. market, those multinationals are going to have to agree to President Trump’s terms. Trump doesn’t care about their feelings; Trump doesn’t give a flip about their statements; Trump has one prism to consider any deal, negotiation or result: is it better for the United States of America?
If not, go spit.
Now, go make him a sandwich…
The July 20th conversation with President Trump touched on the state of the U.S. economy; America’s trade reset; the timing of the trade reset juxtaposed against the current value of the U.S. stock market; the president’s news-making remarks about the Federal Reserve’s ongoing interest-rate hikes; and pragmatic insight behind the meeting with Vladimir Putin. Watch it, you’ll see:
Wilbur Ross outlines the policy: