Earlier today President Trump traveled to Cleveland, Ohio to deliver remarks at a business and community tax reform roundtable event.  President Trump begins his remarks by noting the importance of shifting focus within the trade discussion to bring a greater balance to the U.S. economy via America-First principles.

Three decades of economic policies benefiting Wall Street are now shifted to begin a new era where economic policies benefit Main Street.  That’s MAGAnomics in shorthand.

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Ambassador Lighthizer comments on NAFTA prior to departing for China.  In the auto sector, Mexico and Canada are still arguing for more Asian/Chinese parts for U.S. automobiles.  The U.S. position is for higher North American content. Loggerheads.

I still find it stunning how many people cannot see the ridiculous side of the Mexican and Canadian position; and how that showcases the insanity of NAFTA. Can/Mex are not arguing for more Canada and Mexico content, they are holding out for more Asian content.  Their economic models are nothing more than brokering the assembly of cheap Asian goods through their NAFTA access to the U.S. market.  Ridiculous.

WASHINGTON/MEXICO CITY (Reuters) – U.S. Trade Representative Robert Lighthizer said on Tuesday that if a deal to revise the North American Free Trade Agreement cannot be reached with Canada and Mexico in about three weeks, its approval by the U.S. Congress could be in jeopardy.

Lighthizer said at a U.S. Chamber of Commerce event that a deal to update NAFTA was needed quickly because of the lengthy notification process for congressional approval of trade deals.

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Commerce Secretary Wilbur Ross discusses the ongoing trade initiatives with China ahead of the U.S. delegation departing later tonight.  Secretary Ross, Treasury Secretary Mnuchin, U.S. Trade Representative/Ambassador Robert Lighthizer, Economic Council Chairman Larry Kudlow and White House Trade Adviser Peter Navarro are all heading to Beijing to meet with their Chinese counterparts.

Secretary Ross is like the Babe Ruth of trade-baseball. Wilburine has a way of taking complex issues pitched to him, and knocking them out of the ballpark with an extremely fast common sense bat.  He makes it look effortless.  Watch:

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Two quick thoughts. First, I think this is the first time every member of Team America (Ross, Mnuchin, Lighthizer, Kudlow, Navarro) has unified into one specific set of trade negotiations. That helps understand the scale of importance of the China trade relationship.

Second, there’s no traveling parallel contingent consisting of outside government members/advisers from of the U.S. Chamber of Commerce. This is a significant change from the past 30 years of Wall Street policy manipulation by the CoC. Many people may not be aware but until President Trump the U.S. government didn’t actually write the trade agreements.

For all prior administrations the actual negotiations and agreements were willingly sub-contracted out to U.S. Chamber of Commerce delegations. This is how the multinationals took control of trade policy and eventually the U.S. economy. CoC President Tom Donohue must be apoplectic now that he is facing an administration actually writing the trade agreements.

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President Trump’s MAGAnomic team have announced a 30-day extension for the Steel (25%) and Aluminum (10%) tariffs for the European Union, Canada and Mexico.

Also, after a prior agreement with South-Korea, the “KORUS” deal, team U.S.A. has also reached an agreement in principle with Australia, Argentina and Brazil which will be finalized in next 30 days.

Via Wall Street Journal – President Donald Trump has decided to postpone decisions about imposing steel and aluminum tariffs on the European Union and other U.S. allies until June 1, a senior administration official said.

In addition to announcing the delay, the White House is expected to say Monday evening that it has finalized a deal to exempt South Korea from the tariffs, mirroring details that have been previously released by the U.S. Trade Representative’s office.

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There is a geopolitical strategy happening this week that is essentially under the radar.

U.S. Treasury Secretary Steven Mnuchin, USTR Robert Lighthizer, Economic Council Chairman Larry Kudlow, and the U.S. trade team are heading to China.

The outcome of their discussions connects the initiatives behind North Korea, China and NAFTA.  The steel and aluminum tariffs are part of the toolbox.  Only one media personality, our favorite suspicious cat, appears to understand the larger economic play and how it is being deployed.

From the U.S. perspective, NAFTA has a fatal flaw. Mexico and Canada admitted the flaw for the first time a few weeks ago. The flaw is Mexico and Canada’s exploitation of NAFTA as a backdoor into the U.S. market for Asian, mostly Chinese, manufactured products. Multinational corporations who have invested in Canada and Mexico are determined to retain the flaw.

President Trump understands that as long as Canada and Mexico can unilaterally make trade agreements with the EU and ASEAN nations, any NAFTA agreement between the U.S., Canada and Mexico is moot. The NAFTA talks are paused.

The U.S. Team now heads to China. There’s no doubt part of the objective is to begin a structural discussion that must happen for the U.S. trade team to approach closing the fatal NAFTA flaw from the source of origin. [*note* on the EU side of this issue, Commerce Secretary Wilbur Ross is leading a similar discussion. Mnuchin and Lighthizer are focused on Asia, Ross has responsibility for Europe]

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Absolutely stunning remarks today from North Korean Leader Kim Jong-un.  Not only do both Kim Jong-un (North) and Moon Jae-in (South) discuss peace, but the DPRK actually goes the full-way-forward toward a unified Korean peninsula.  Jumping ju-ju bones, these remarks are absolutely gobsmacking.

Kim Jong-un remarks begin at 09:00 of video below.  MUST WATCH:

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This is incredible. Not only does Kim Jong-un commit to a fully denuclearized Korean peninsula, but also the ending of all hostilities; the end of the Korean war; and stunningly the process to begin entering a phase for a completely unified North and South Korea.

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Wow. You have to watch this video to see how history was just encapsulated.

North Korean Leader Kim Jong Un and South Korean President Moon Jae-in meet at the village of Panmunjom, the historic site where the Korean War armistice was signed in 1953 for the start of talks between the two countries.

Their unified meeting is the third inter-Korean summit, but this meeting is the first time a leader from the communist North has entered the democratic South. South Korea then holds a welcoming ceremony for the North Korean leader that includes full military honors and a military guard review.

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North Korean leader Kim Jong Un writes: “new history starts now; age of peace, from the starting point of history” on guest visitor book at Peace House.

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In the past 48 hours South Korea (Moon Jae-in) and North Korea (Kim Jong-un) have been working out the details of their upcoming summit.  Within the discussions between North and South Korea some stunning news has surfaced.

♦ Yesterday Moon Jae-in announced that North Korea had agreed to complete denuclearization of the Korean Peninsula without any preconditions or expectations of changes in the relationship between the U.S. and South Korea:

SEOUL, South Korea — North Korea has expressed its commitment to “complete denuclearization” of the Korean Peninsula and is not seeking conditions, South Korean President Moon Jae-in said on Thursday, as the United States vowed to maintain “maximum pressure” on Pyongyang.

[…] “I don’t think denuclearization has different meanings for South and North Korea,” Moon said during a lunch with chief executives of Korean media companies. “The North is expressing a will for a complete denuclearization.”

“They have not attached any conditions that the U.S. cannot accept, such as the withdrawal of American troops from South Korea,” he continued. “All they are talking about is the end of hostile policies against North Korea, followed by a guarantee of security.”  (read more)

As the summit discussions continued today; and to assure the previous U.S. envoy CIA Director Mike Pompeto; and in affirmation of direct talks with President Trump; North Korea made an even more stunning statement from the Korean Central News Agency:

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As expected, China is starting to realize they underestimated the severity of President Trump’s three-decade-long perspective on trade.

Against the backdrop of $150 billion in looming U.S. trade tariffs, Beijing sends an economic emissary to Europe attempting to restructure international trade agreements.

(Reuters) China’s international trade representative held a series of meetings with the ambassadors from major European nations last week to ask them to stand together with Beijing against U.S. protectionism, according to four sources familiar with the discussions.

Some of the western diplomats involved in the meetings with Fu Ziying, who is also a vice-commerce minister, have viewed the approaches as a sign of how anxious Beijing is getting about the expanding conflict with Washington, the sources said.

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