It is not coincidental that three events are occurring simultaneously:  (1) U.S.T.R. Lighthizer is conducting public hearings on Section 301 impacts; (2) a Chinese trade delegation is in the U.S. to re-initiate talks; and (3) U.S. President Trump conducts a roundtable meeting with congressional leadership over the Foreign Investment Risk Review and Modernization Act.

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[Transcript] 11:35 A.M. EDT – THE PRESIDENT: Thank you very much for being here this morning, and thank you to Secretary Mnuchin for joining us. And congratulations. You’re doing a great job. We appreciate it very much, Steve.
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When discussing or reviewing trade deals, particularly NAFTA, it is important to remember two baselines: (1) The trade reset is President Trump’s personal legacy initiative; it’s personal – ignore media banter – it’s personal; like, the most important thing he ever thinks about. Always. 24/7. (2) President Trump has no multinational corporations or financial interests with leverage/influence over his decision-making.

There are trillions at stake.

We begin:

“We are already looking at all the issues. We might close this, not in a matter of hours, but these days. We still have next week,” Jesus Seade, designated chief negotiator of Mexican President-elect Andres Manuel Lopez Obrador, told reporters.

Here’s where it becomes important to note that U.S. Trade Representative Robert Lighthizer has twice asked Jesus Seade to remain AFTER hours when all other trade officials have concluded discussions. Closed-door conversations between Lighthizer and Seade; and no-one else. [Refer back to the two Trump baselines again]
Next, before reviewing the comments and presentations of the media regarding the U.S. Mexico NAFTA status; again reference the team approach, and the division of responsibility. Today, Secretary of Commerce Wilbur Ross is meeting with the twitchy Chinese delegation – again, their arrival is not a matter of scheduling happenstance; it is directly related to the ongoing 301 hearings that began two-days-ago, Monday.
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Sad Panda increasingly frustrated as disruptor Trump heaps vociferous praise on Chairman Xi, while simultaneously out maneuvering Beijing’s geopolitical economic strategy.
China expert Michael Pillsbury discusses the current environment around the Beijing leadership with Fox host Tucker Carlson.  This is really important. WATCH:

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What Pillsbury outlines is exactly what CTH predicted last year when we shared how the Red Dragon would be caught entirely off-guard.  They’ve never seen this approach before.
NOTE: The upcoming Chinese trade delegation is not showing up at the end of this month as a matter of scheduling happenstance.  What no-one in the financial/trade/economic media is connecting is the timing of their visit with USTR Lighthizers’ Section 301 Tariff hearings –SEE HERE.  August 20th through August 27th, you can guarantee the Chinese delegations will be all over those hearings; including dispatching their paid lobbyists to provide input on their behalf.
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When we elected a successful businessman as President of the United States and leader of the executive branch, we elected a person who fundamentally changed the framework of accountability and transparency in government. President Donald J Trump holds an average of two to three full cabinet meetings each month where the cabinet members give direct updates on execution of policy priorities.
No President in modern history has put that much accountability into the position of each cabinet member. No President has ever coordinated strategic objectives with such a high level of expectation and scrutiny. No President has folded transparency into the cabinet with full media access over White House cabinet meetings. This is a new executive branch standard.
NEC Director Larry Kudlow break-out discussion on the economy at 03:45. WATCH:

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OK, admission…  Today is the day CTH recognizes NEC Director Kudlow has joined the official ranks of team Wolverine.  An impassioned Larry Kudlow is determined to see the financial media report on the jaw-dropping success of President Trump’s Main Street economic policies.
Key message on trade with China at 03:10.  WATCH:

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Originally outlined a year ago. Reposted by request. At the heart of the professional/political opposition the issue is money; there are trillions at stake.

President Trump’s MAGAnomic trade and foreign policy agenda is jaw-dropping in scale, scope and consequence. There are multiple simultaneous aspects to each policy objective; however, many have been visible for a long time – some even before the election victory in November ’16.
If we get too far in the weeds the larger picture is lost. CTH objective is to continue pointing focus toward the larger horizon, and then at specific inflection points to dive into the topic and explain how each moment is connected to the larger strategy.

Today we repost an earlier dive into how MAGAnomic policy interacts with multinational Wall Street, the stock market, the U.S. financial system and perhaps your personal financial value. Again, reference and source material is included at the end of the outline.
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It’s not a bluff; it’s never a bluff…. He doesn’t bluff.  I’ve looked through the interviews, writing and granules of opponents describing hundreds of deals, and I cannot find a single person who ever said that Donald Trump was bluffing during any negotiations.

NYT cont. […] In recent days, officials from the Commerce Ministry, the police and other agencies have summoned exporters to ask about plans to lay off workers or shift supply chains to other countries.

With stocks slumping and the currency dropping 9 percent against the dollar since mid-April, censors have been deleting a torrent of criticism online, some of it directed at President Xi Jinping’s leadership.  State news outlets, by contrast, have sought to promote the official line, with the authorities restricting the use of the phrase “trade war.”

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Methinks Maria Bartiromo is the only media person who has caught on to “the secret“.
Within her wording and presentation today, inside this interview Fox News Maria Bartiromo hints toward her understanding of the Trump trade strategy as it pertains to Mexico, Canada and ::cough:: NAFTA ::cough::

 Nudge/Nudge – Elbow/Elbow – Wink/Wink – Say no more/Say no more!

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After the end of Round #6 (January 2018), it was obvious to POTUS Trump a NAFTA renegotiated deal was impossible.  In March, 2018, Team Trump stealthily began moving in a different direction.  In June,2018, Canada accidentally made the admission there were no ongoing talks between the U.S. and Canada.  The reasoning is simple yet stunning.
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Today U.S. Trade Representative Robert Lighthizer announced the second tranche of tariffs on Chinese imports (full list pdf below).
The 25% tariff mostly includes chemical compounds and material parts used in the manufacture of finished goods.

Washington, DC – The Office of the United States Trade Representative (USTR) today released a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.  This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.
The listcontains 279 of the original 284 tariff lines that were on a proposed list announced on June 15.  Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received written comments and testimony during a two-day public hearing last month.

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As many have discussed, due to their volume requirements China cannot secure their supply chain for soybeans without purchasing U.S. soybean crops.   China can purchase soybeans from Brazil and Argentina; however, that only leads to Argentina increasing it’s soybean purchases from the U.S.  Amplifying this issue are current lower yields from South America in their soybean crops.

…“There is a risk that China will have to cut back its livestock production, implying higher prices on the domestic market.”…

(Reuters) – China may have to start buying U.S. soybeans again in coming weeks despite the trade war between the two countries as other regions cannot supply enough soybeans to meet China’s needs, Hamburg-based oilseeds analysts Oil World said on Tuesday.
In July, China imposed import tariffs on a list of U.S. goods, including soybeans, as part of the trade dispute with the United States. China is the world’s largest soybean importer and has been seeking alternative supplies, especially in South America, where supplies available for export are down.

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