If we cut through all the polite pretending, Commerce Secretary Howard Lutnick appears on Fox News to tell the bobble head the nation specific tariffs are going to hit regardless of what approaches need to be taken. President Trump is going to remain focused on structural changes to the global economic system of trade, manufacturing and USA commerce despite all of the grandiose efforts of the multinationals and their Lawfare foot soldiers.
As Lutnick again repeats, there are a variety of legal mechanisms that can be used to enforce the tariff program triggered by President Trump. Adhering to them is not optional for trade partners who wish to have access to the USA market. If the exporting nation wants to play games, try and delay or delay tactics, the end result will be even more against their interests. There is no alternative other than to acquiesce. WATCH:
German Chancellor Friedrich Merz is going to find this out on Thursday when he shows up in full Blackrock mode and only creates a worse scenario for himself and the EU Commission he represents. If Merz wants ‘ugly’, no problem – President Trump has an endless supply of big ugly tools.
Treasury Secretary Scott Bessent appears on CBS News to counter the false information being spread by Margaret Brennan on behalf of Wall Street corporations. The topics of interest surround China and tariffs.
Let me clarify for the audience that does not follow closely. Tariffs are paid by the importer based on the wholesale price of the product as delivered by the exporting country depending on the exporters’ tariff rate. Tariffs are NOT LEVIED/PAID based on the retail price of the product as sold to the consumer.
Example: A pair of Denim Jeans made in China for Guess Brand. The Chinese manufacturer sells the jeans to Guess Brand for $10 a pair manufactured. Guess sells the jeans at retail in the USA for $100 (a $90 gross profit).
A 50% tariff on China means the jeans cost Guess Brand $15 instead of $10 (an $85 gross profit). A 50% tariff on Guess brand jeans, that retail for $100, changes the cost to the retail brand by $5.
Multinational corporations who have off shored their production and manufacturing to China are the ones screaming about tariffs. Ultimately in the final analysis, President Trump is exposing corporatism, multinational corporate vultures; he is not necessarily just exposing China.
In the example above the company makes $85 gross profit as opposed to $90 gross profit on the pair of jeans if they do not raise the retail price. They don’t raise the price because their profit margins are already ridiculous, and that’s why consumer prices do not go up. A 50% direct tariff on Chinese goods only marginally hits the multinational corporation. American consumers need to understand this dynamic better. WATCH:
[TRANSCRIPT] – MARGARET BRENNAN: Good morning and welcome to ‘Face the Nation.’ We begin today with Treasury Secretary Scott Bessent. Good morning and thank you for being here.
SECRETARY SCOTT BESSENT: Morning, Margaret.
MARGARET BRENNAN: There’s so much to get to. I want to start with China, because the Defense Secretary just said there’s an imminent military threat from China to Taiwan. Days earlier, Secretary Rubio said he’d aggressively revoked Chinese student visas. On top of that, you have curbing exports to China. Trade talks you said with Beijing are stalled, and President Trump just accused China of violating an agreement, and now says no more, ‘Mr. Nice Guy.’ Are you intentionally escalating this standoff with Beijing?
Next week on Thursday, German Chancellor Friedrich Merz is scheduled to travel to Washington DC and meet with President Donald Trump in the White House. Considering the importance of Germany to the EU economy and subsequent trade relationship with the U.S, this meeting with Merz will likely be the most important discussion toward a possible U.S-E.U. trade agreement.
Germany is the largest economy within the EU and the core industrial base of the European Union. The number one issue for the German people is their economic status: everything else circles around this priority.
Having spent time in Hamburg, Bremen, Dresden and Frankfurt, it is very clear to me the German people are very focused on work and their vocations. Germans overall, take their economic standing very personally and seriously.
Inasmuch as Merz may have to represent the interests of the larger EU in his approach, he will undoubtedly be focused on what is in Germany’s best interest, with all else second.
For President Trump this specific German interest creates a unique facet of leverage within the larger EU trade discussion. Because the German economy is so vital, whatever terms Germany decides are the core terms the EU will manifest in their trade and tariff negotiations.
I predict we will hear a talking point from Merz, in generally German snark, something akin to a proposal for a zero-tariff base on the import and export of heavy industrial goods (machinery) for both Germany and the USA. I say in general German snark because passive-aggressive Chancellor Merz knows the U.S. is currently not in a position to sell Germany heavy industrial goods, and that’s entirely what President Trump is trying to recreate with the trade/tariff policy.
WASHINGTON DC – German Chancellor Friedrich Merz will travel to Washington next week to meet United States President Donald Trump for the first time since taking office earlier this month.
The leaders will meet in the White House on Thursday and are expected to discuss the war in Ukraine, the Middle East and trade policy, German government spokesperson Stefan Kornelius said in an emailed statement.
As previously noted, Senate Judiciary Chairman Chuck Grassley released some of the FBI investigative files related to a congressional referral of Nellie Ohr for false testimony to congress. Within the Grassley release the declassified FBI investigative notes show that Trump-Russia files were compartmentalized, allowing control over access to them by the FBI Director and FBI Deputy Director.
The 7th floor level classification within the FBI’s Sentinel record-keeping system was previously unknown, and now people are starting to ask questions about what other information may be filed yet invisible due to the classification designation of “Prohibited Access.”
The Sentinel record-keeping system allows FBI officials and investigators to review and research the status of investigations both past and current. The Sentinel system is also the information system that is searched for responsive documents to legal cases and FOIA inquires. The Sentinel system contains all the information used by the FBI.
Within the Sentinel system there are “Restricted Access” files that are used to control who can view the file information. The FBI official can see the file but cannot access the information within it without a higher clearance level. However, now people are discovering there is a “Prohibited Access” designation that makes the file invisible to searches or queries and is controlled by the FBI Director and FBI Deputy Director.
Margot Cleveland is asking some good questions about how the use of the “Prohibited Access” designation may circumvent the FBI’s legal requirements (brady material) and FOIA searches. [SEE HERE] However, I would also note this approach hides information not only from congress and from the public, but also from the Executive branch itself. The DNI wouldn’t even know what information exists.
Self-interested Wall Street analysts and leftist economic ‘experts’ once again proven wrong. It is almost impossible to find any financial data review written objectively by media. Everything is skewed with a negative tone, yet the data clearly shows -just like 2017- President Trump’s MAGAnomic policy benefits are starting to surface.
News pundits said President Trump’s tariff policies would skyrocket prices. In reality the yearly inflation rate [BLS data] has dropped to 2.1%, the lowest in four years. Core prices (removing food and energy) rose 2.5% from a year earlier, below the March figure of 2.7%, and the lowest in more than four years.
Meanwhile personal incomes tripled expectations coming in at 0.8% for the month of April. “Personal income surged 0.8% well ahead of the forecast for 0.3%.” Then comes the predictable. The trade deficit dropped by 46% in the month of April.
[…] The goods trade gap contracted 46.0% to $87.6 billion last month, the Commerce Department’s Census Bureau said on Friday. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. (source)
Companies front-loaded their orders from China in February and March, causing imports to skyrocket and a massive skew in the GDP data. As expected in April there are fewer orders because the goods were already received in the first quarter, imports drop in half.
Despite increased tariffs we are likely to see a replay of pricing parity similar to 2017 as companies benefit from lowered energy prices, lower fuel costs, lower Transporation and lower warehousing costs. Simultaneously, export companies who rely on access to the U.S. market will attempt to offset any tariff price as applied. Those combined savings can, likely will, offset increased tariffs on arriving goods.
The New York Times (think DHS embeds) are not concerned about the building of a surveillance state using cross-reference artificial intelligence systems into various government agencies; no, the New York Times (think DHS embeds) are concerned it is President Trump triggering the building of the process, and the parameters therein.
I have outlined this seemingly inevitable construct with great granular detail, that is creating the surveillance state for almost a year. Culminating in a December 2024 recap [SEE HERE] along with my position in January of this year [SEE HERE]. I do not like it, but I understand the arguments behind it.
[New York Times] – In March, President Trump signed an executive order calling for the federal government to share data across agencies, raising questions over whether he might compile a master list of personal information on Americans that could give him untold surveillance power.
Mr. Trump has not publicly talked about the effort since. But behind the scenes, officials have quietly put technological building blocks into place to enable his plan. In particular, they have turned to one company: Palantir, the data analysis and technology firm.
The Trump administration has expanded Palantir’s work across the federal government in recent months. The company has received more than $113 million in federal government spending since Mr. Trump took office, according to public records, including additional funds from existing contracts as well as new contracts with the Department of Homeland Security and the Pentagon. (This does not include a $795 million contract that the Department of Defense awarded the company last week, which has not been spent.)
Deputy Chief of Staff and White House Senior Advisor Stephen Miller holds a press availability to push back against the nonsense narratives around the ongoing deportation operations and the support of the Supreme Court in verifying Presidential authority.
Mr Miller also gives a high-level overview of the China trade negotiations, the ongoing HHS initiatives from Robert F Kennedy Jr and other matters of media interest. WATCH:
United States Trade Representative Jamieson Greer is the guy who has to navigate all the legal and detailed structures around all of the trade agreements. As USTR there is a lot of responsibility upon Mr Greer to navigate the way through the impediments thrown at him and President Trump by the multinational corporations and banks who are impacted by the America-First trade policy.
USTR Greer appears on CNBC to discuss some of the current issues and challenges, as well as the solutions and motivations behind them. If you are interested in the legal dynamics behind the larger trade policy issues, these appearances by USTR Greer are important. WATCH:
Not surprisingly, it appears the Chinese trade delegation that previously made commitments in Geneva, Switzerland, were wearing a panda mask at the time of the negotiations with Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
According to a Truth Social post shared by President Trump, the panda mask was recently removed and the true Beijing dragon behind it appeared. This is not a shock to anyone who has followed the dynamic of Chinese trade promises and practices for a while.
PRESIDENT TRUMP – “Two weeks ago China was in grave economic danger! The very high Tariffs I set made it virtually impossible for China to TRADE into the United States marketplace which is, by far, number one in the World. We went, in effect, COLD TURKEY with China, and it was devastating for them. Many factories closed and there was, to put it mildly, “civil unrest.” I saw what was happening and didn’t like it, for them, not for us. I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen. Because of this deal, everything quickly stabilized, and China got back to business as usual. Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
China was moving slowly on promises to issue export licenses for rare earths minerals. The Geneva deal called for China to lift trade countermeasures that restrict its exports of the critical metals needed for U.S. semiconductor, electronics and defense production.
“The Chinese are slow-rolling their compliance, which is completely unacceptable, and it has to be addressed,” U.S. Trade Representative Jamieson Greer told CNBC, without specifying how that would happen.
Previously, President Trump announced: “I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh. For many years, the name, “United States Steel” was synonymous with Greatness, and now, it will be again. This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy. The bulk of that Investment will occur in the next 14 months.
This is the largest Investment in the History of the Commonwealth of Pennsylvania. My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA. From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK. I will see you all at US Steel, in Pittsburgh, on Friday, May 30th, for a BIG Rally. CONGRATULATIONS TO ALL!”
The event to celebrate the deal between US Steel and Nippon takes place today in Pittsburgh, Pennsylvania. The anticipated start time is 5:30pm, with livestream links below:
