One of the strongest geopolitical alliances exists between the U.S. and Japan. President Trump and Prime Minister Shinzo Abe are not only good friends, but also work well together toward regional goals for a denuclearized Korean peninsula.
Additionally, the U.S-Japan alliance is bolstered by a respectful economic partnership; and the appearance of Secretary Pompeo arriving in Japan to brief Prime Minister Abe on his discussions with the DPRK also highlights the importance of the relationship.
White House Office of Trade and Manufacturing Policy Director Peter Navarro appeared on Fox Business last night to outline the U.S. position in the ongoing trade reset against communist China. Almost all of the financial media and economic punditry are intentionally obfuscating the underlying nature of China’s economic model.
China is a communist central government controlled economic system. Free-market principles do not apply when dealing with China; therefore trade strategies based on ‘free markets’ cannot succeed against the centralized planning of a communist regime.
Secretary of State Mike Pompeo visited North Korea amid the backdrop of the U.S. -vs- China trade confrontation. The geopolitical economic issues form the structural disconnect between the ongoing U.S. negotiations and the responses from China through their proxy province in North Korea.
Secretary Pompeo debriefs the media shortly before departing the DPRK; and expresses a generally positive disposition about the ongoing talks:
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However, unnamed officials, likely elements within the central North Korean government who are control agents for Beijing, send a more confrontational message at the conclusion of the meetings:
(AP) North Korea says high-level talks with a U.S. delegation led by Secretary of State Mike Pompeo were “regrettable” and has accused Washington of trying to unilaterally pressure the country into abandoning its nukes.
Last month the White House presented a 36-page outline of the U.S. position toward trade with China (full pdf below). White House National Trade Council and Office of Trade and Manufacturing Policy Director Peter Navarro delivers a presentation to discuss that report. Very well worth watching:
President Donald Trump meets with Prime Minister of the Netherlands Mark Rutte in the Oval Office at the White House.
During remarks President Trump notes a phone call with Mexico’s winning presidential candidate Andres Manuel Lopez Obrador; and ongoing interviews/discussions with possible Supreme Court nominees. [Four SCOTUS nominees were interviewed today and three or four more will come in the next few days.]
On the trade front President Trump notes the ongoing issues with the WTO (World Trading Organization), and a possible confrontation looming over structural changes needed to reset global trade disparities and establish open markets.
White House national security adviser John Bolton appears on Face The Nation with Margaret Brennan to discuss North Korea and Russia. Within the interview Bolton says the U.S. could dismantle North Korea’s nuclear and ballistic missile programs within a year if the North Koreans committed to scrapping their arsenal in accordance with the agreement reached in Singapore last month.
Today Canada released an updated list of retaliatory tariffs designed as countermeasures to the U.S. Steel and Aluminum tariffs [SEE HERE] which will begin Sunday, July 1st.
Additionally, Foreign Minister Chrystia Freeland, Innovation Minister Navdeep Bains, and Employment and Labour Minister Patty Hajdu, announced they would initiate an emergency program to use Canadian taxes compensate workers, expand unemployment benefits, and subsidize impacted industry. Yes, in a transparent display of political ideology (throwing capitalism directly out the window), Canada doubles-down on centralized government subsidies to offset market impacts. Brilliant ‘eh!
Chrystia Freeland made the announcement on the floor of a Hamilton steel factory Friday. In a rare backdrop, Ms. Freeland actually entered a factory with machines and things, to deliver the carefully choreographed political message (video below – watch the last minute to understand).
Team U.S.A. have applied tariffs to Canadian softwood lumber, Steel and Aluminum as Canada refuses to negotiate new terms for NAFTA where North American products are prioritized. Canada demands the ability to continue importing Asian, mostly Chinese, products for their assembly-based market.
With the latest counter-move by Justin and Chrystia from Canada, it is increasingly likely President Trump will levy a 20% tariff on imported Canadian automobiles. Last month (May) the Canadian economy dropped over 31,000 Full-Time jobs. (more…)
Earlier today President Trump delivered remarks celebrating the six month anniversary of the U.S. Tax Cuts and Jobs Act. Today is also the last business day of the second quarter.
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Long time CTH readers might note in 2015 when we first saw candidate Trump’s economic policy initiatives, we began outlining the sequential economic possibilities if President Trump won. So far, all is going according to plan – STUNNINGLY According To Plan. Seriously, go back and look –FEBRUARY 2016– two-and-a-half years ago.
The possibilities were obvious. As a result we predicted repeatedly that Q2 of 2018 would be the beginning of the largest period of U.S. GDP and wage growth in the past 30 years. Q2 2018 ends tomorrow and the results of Q2 will be announced in the next few weeks. Everything is happening in a logical sequence as a result of Trump’s MAGAnomic plans. (more…)
From the office ofCommerce Secretary Wilbur Ross: The groundbreaking on Foxconn’s $10-billion factory to produce state-of-the-art flat-panel displays in Mount Pleasant represents a milestone for America.
With a 20-million-square-foot campus situated on 3,000 acres, the new Foxconn plant will be among the largest factories ever built in the United States. It will take two years and 10,000 construction workers to build, and employ 13,000 workers when in full production of a variety of LCD screens. It is one of the largest foreign direct investments ever made in the United States.
It would never have happened without the promise of the Trump tax cuts and the President’s personal intervention.
As important as the new factory is to the workers of Wisconsin, the facility is also a symbol of what is to come: It is the first of a large number of investments in advanced manufacturing facilities being reshored from overseas locations back to the United States.
Foxconn CEO Terry Gou has already said that he is considering another enormous facility in the United States. (more…)
National Economic Council Chairman Larry “Kuddles” Kudlow is back after suffering a mild heart attack. [Yikes, “mild“, is there such a thing?]
Appearing on TV with Stuart Varney Chairman Kudlow explains how the administration hopes to use the Foreign Investment Risk Review Modernization Act (FIRRMA) to enhance U.S. trade policy. Mr. Varney cannot comprehend Trump-speed in achieving a global trade reset:
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While media wasn’t paying attention, President Trump brilliantly played congress to gain strategic trade leverage. Knowing political opposition would unite, POTUS Trump took a forgiving position toward Chinese company ZTE; Trump-haters and NeverTrumpers quickly aligned to push through hammer legislation designed to hurt China and by extension Trump’s position. However, Trump actually wanted the tool. POTUS now weaponizes FIRRMA as trade leverage against all 301 targets. Brilliant.
USTR Robert Lighthizer Final 301 Report on China Trade Infractions HERE Part 2 of Kudlow interview below: (more…)
