White House Director of the Trade Counsel and Economic Policy Adviser, Peter Navarro, appears on Fox News with Tucker Carlson to discuss likely import tariffs on Steel and Aluminum.

(more…)

MAGAnomics baby!!  Throw dem ju-ju bones out the windows and hold on to your britches…  The U.S. Dept of Labor is reporting unemployment claims have dropped to 210,000.  That’s the lowest jobless number since December 6th, 1969.

You know what this means right?

…wait for it.

…wait for it.

That’s right. We better grab chin straps for the hard hats, because pay raises and wage rate increases are thundering toward the middle-class like an unstoppable herd of buffalo. Exactly on schedule.  Cha-ching & Ka-pow.

(more…)

Earlier today President Trump spoke candidly with the White House assembly of U.S. Governors about the critical need to re-evaluate their position(s) on trade.  President Trump’s remarks were direct, but also remarkably nuanced toward the audience.  However, if you follow Trump’s process, you’ll note the familiar indications.

Next, far less subtle and yet following along the same predictable process, the Wall Street Journal is reporting President Trump now promoting his economic guru Peter Navarro to be Assistant to The President.   Navarro is a brilliant and strategic trade hawk who has a long track record of supporting the same trade principles as Donald Trump.

A NAFTA decision/announcement looms. ♦ As expected and predicted, a recent phone call by Mexican President Pena Nieto to POTUS Trump didn’t end well. ♦ USTR Lighthizer blasted Canada at the end of round six NAFTA renegotiation. ♦  Placing Pete Navarro inside the circle puts him directly in the right place to speak on behalf of President Trump for an upcoming announcement.   All of these NAFTA exit indicators are great news.

Our wolverine team is growing.  Now we have Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer, U.S. Treasury Secretary Steven Mnuchin and Asst. To POTUS Peter Navarro, all assembled.

(more…)

Last year President Donald Trump requested a national security Section 232 trade-investigation, to conducted by the U.S. Department of Commerce and Secretary Wilbur Ross, specifically focusing on U.S. steel and aluminum manufacturing.

The discussion continued last week as President Trump met with a group of republican and democrat members of congress to talk about trade policy and focus attention on the lack of American steel and aluminum production.   [The responses from the republican participants was very enlightening and disappointing.]

On Friday Commerce Secretary completed the industrial review and provided President Trump with trade recommendations to consider given the nature of the national security compromise.   See Outline Here.

Recommendations of the Steel Report:  Secretary Ross has recommended to the President that he consider the following alternative remedies to address the problem of steel imports:

1. A global tariff of at least 24% on all steel imports from all countries, or
2. A tariff of at least 53% on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam) with a quota by product on steel imports from all other countries equal to 100% of their 2017 exports to the United States, or
3. A quota on all steel products from all countries equal to 63% of each country’s 2017 exports to the United States.

(more…)

President Trump will pull the U.S. out of NAFTA and direct the U.S. Trade Representative to engage in bilateral trade deals with Canada and Mexico individually.   There is no other possible alternative and here’s why.

First, the essential problem with NAFTA was an evolution over time.  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.
Why deal with the U.S. when you can just deal with Mexico, and use NAFTA rules to ship your product directly into the U.S. market?
This exploitative approach, a backdoor to the U.S. market, was the primary reason for massive foreign investment in Canada and Mexico; it was also the primary reason why candidate Donald Trump, now President Donald Trump, wanted to shut down that loophole and renegotiate NAFTA.
(more…)

Oh dear, Prime Minister Rainbow Sparkle-Socks is issuing threats now.

“We aren’t going to take any old deal,” Trudeau said Friday at a town hall in Nanaimo, British Columbia. “Canada is willing to walk away from Nafta if the United States proposes a bad deal.
We won’t be pushed around.” (link)

The backdrop is important context here.  Prime Minister Twinkles has been watching Trump, Ross, Mnuchin and Lighthizer closely.  Two months ago Twinkles attempted to launch economic leverage by entering direct trade discussions with China; but there’s a problem – Twinkles actually believes Beijing is ‘playful panda’.  PM Rainbow-brite doesn’t grasp that Playful Panda is a mask.  [Wrong place for leverage.]
Trudeau is willing to open his door to Chairman Xi without realizing once inside Beijing will hold open the door for arriving goods, and shuttle out the Canadian manufacturers. Attachment to China is a one-way proposition; and China only indulged Canada from the context of using the Canadian NAFTA door, as a tariff workaround to gain entry to the U.S. market.
(more…)

Commerce Secretary Wilbur Ross appears on CNBC to discuss ongoing trade initiatives including NAFTA, China and the more broad Asia background.  Additionally, Wilburine discusses growth in GDP and anticipated economic enhancements from the tax cut legislation.

.
Earlier today it was announced that ADP private payroll growth for January has exceeded 234,000 jobs gained.   “The job market juggernaut marches on,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement. “Given the strong January job gain, 2018 is on track to be the eighth consecutive year in which the economy creates over 2 million jobs.  (read full story on payroll report)
(more…)

Commerce Secretary Wilbur Ross at the World Economic Forum in Davos (President Trump departs the U.S. tonight to attend). The attendance by Secretary Ross provides an opportunity to further enforce the position of the Trump administration regarding free, fair and reciprocal trade deals.
Believe me, the economic globalist attendees were/are entirely freaking out.  There’s a panel discussion video at the bottom which will highlight the tenuous position of the multinational corporations, banks and the economic interests of the globalists.  Prior to the panel Secretary Ross gave an interview to CNBC. WATCH:

.
As mentioned Secretary Ross also outlined how the ‘America First’ economic policy and platform engages with the global community during a panel discussion at the World Economic Forum.  Generally the attendees have been historic champions of multinational corporations and multinational financial interests, ie. fans of “economic globalization”.
(more…)

President Trump and U.S. Trade Representative Robert Lighthizer held an open-press Oval Office event to announce trade action, tariffs, against China (solar) and S-Korea (washing machines) for product dumping. [Details Here]
The backdrop of this executive action happens on the first day of NAFTA round six talks beginning in Canada.  Ambassador Lighthizer will be traveling to Canada shortly.  It is increasingly likely that President Trump will exit NAFTA as part of the larger initiative to draw manufacturing jobs back into the U.S.   In this round, we are hearing from those close to the work that Mexico and Canada are panicked and ready to concede in an effort to keep access to the U.S. market they are dependent on.
President Trump and Ambassador Lighthizer are now in the process of leveraging the U.S. business tax policy changes to hammer bilateral trade deals.  This is where the teeth of Team wolverine become visible.  All future action builds on all preceding action.

.
The economic shift in 2018 will be a very visible Ambassador Lighthizer. Commerce Secretary Wilbur Ross built the larger foundation for U.S. trade policy and USTR action in 2017. Now that a smooth policy foundation is established, Robert Lightizer shifts into gear and becomes the trade-deal closer in 2018.
(more…)

U.S. Ambassador to the United Nations Nikki Haley delivered strong remarks today during a press briefing surrounding U.S. policy toward Pakistan and Iran.

“The administration is withholding $255 million in assistance to Pakistan. There are clear reasons for this. Pakistan has played a double game for years. They work with us at time, and they also harbor the terrorists that attack our troops in Afghanistan. That game is not acceptable to this administration.”

WATCH:

.
Think BIGLY – On a geopolitical level the U.S. relationship with Pakistan is shadowed by a strong  Pakistani economic relationship with China.  China is Pakistan’s biggest investor.  China has also recently been identified as covertly propping up North Korea with smuggled oil shipments: “Very Disappointing“.
The central U.S. Pakistani relationship has always been about our fight against the terrorist networks of the Taliban in Afghanistan.  Pakistan has played both sides of that coin.  In August of 2017 President Trump warned Pakistan our relationship with them would be different if they did not stop enabling the Taliban.
(more…)