…“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system. For the initiator has the enmity of all who would profit by the preservation of the old institution and merely lukewarm defenders in those who gain by the new ones.” 

~ Niccolò Machiavelli

CTH has been fully immersed in the battle against the Chamber of Commerce Decepticons for so long we have to be careful of our language.  This battle is the heart of Wall Street’s war against MAGA Main Street.
Republican senators from Mitch McConnell’s ‘decepticon caucus’ are now warning President Trump they will fully engage in an open effort to stop him from confronting the corrupt corporate systems that finance their life of indulgence.  Tariff’s on Mexico are a bridge too far for Tom Donohue and the multinational Wall Street lobbying system.  The republicans who benefit from K-Street lobbyist payments are now on full display.

Senate Leader Mitch McConnell has one major career alliance that has been unbroken and unchanged for well over two decades.  That alliance is with the U.S. Chamber of Commerce and specifically with CoC President Tom Donohue.  [SEE HERE and SEE HERE].
However, decepticon senator John Kennedy (U-LA) has personally spoken to Trump and outlines the president will not back down in the face of their threats:

“He’s as serious as four heart attacks and a stroke,” Kennedy told reporters at the Capitol. “A 5% tariff isn’t going to break the bank. A 25% tariff is a different story, but we are a long way from there.” (link)

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Counsel of Economic Advisers Chairman Kevin Hassett appears on CNBC to discuss his decision to leave the White House; the purposeful importance of President Trump’s tariff threat on Mexican imports; and why overall trade reform is important.

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When Kevin Hassett notes best models without interest rates, and the perplexing discussion centers the appearance of two distinct economies, they are talking ABOUT THIS.  MAGAnomics is what happens in “the space between” Wall St and Main St.
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The hypocrisy and ideology of the Mexican position would indicate the tariffs are certain to take place.  Factually, after Mexico has made their “red line” position clear, one could argue there’s no reason to go through the graduated timeline; the U.S. might as well just start applying the full 25% tariff amount on June 10th.

WASHINGTON/MEXICO CITY (Reuters) – Mexico said on Monday it would reject a U.S. idea to take in all Central American asylum seekers if it is raised at talks this week with the Trump administration, which has threatened to impose tariffs if Mexico does not crack down on illegal immigration.
[…] Mexican Foreign Minister Marcelo Ebrard said the country was committed to continuing to work to keep migrants from Central America from reaching the U.S. border.

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Acting chief-of-staff Mick Mulvaney appears on Fox News to answer Chris Wallace question about whether President Trump is serious about punishing Mexico with tariffs for their lack of action on illegal central American migrants.
Mulvaney skewers Wallace and predicts the tariffs will hit. Additionally Mulvaney sets the record straight on the impact of tariffs on consumers.
Generally, watching a Chris Wallace segment is worthless; however, Mulvaney’s linguistic Ginsu delivery is so good, this one is worth watching:

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Oh, he’s done it again… President Trump spotlights the truth that everyone prefers to  avoid discussing: “Are the Drug Lords, Cartels & Coyotes really running Mexico?”

Everyone knows the truthful answer to that question is a resounding YES, Mexico is a narco-state controlled by drug cartels and political system of bribes and payoffs therein.
The most recent evidence was in testimony within the El Chapo Guzman trial, where witnesses testified to paying-off government officials, including the former President of Mexico:

Reuters – Accused Mexican drug lord Joaquin “El Chapo” Guzman once paid a $100 million bribe to former Mexican President Enrique Pena Nieto, a former associate testified on Tuesday that he previously told U.S. authorities. (link)

So again, the premier Gordian-knot cutter known as President Donald Trump, dispatches with obtuse dialogue concerned about delicate sensibilities, and he gets right to the truthful nub of the matter.  What makes Trump’s direct-speak so powerful is the brutal honesty of it.
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Well, this doesn’t come as a surprise.  Hoping to keep the borders open and fend off the Trump tariff’s on Mexican imports, Mexico’s President Lopez-Obrador (AMLO) enlists the help from Tom Donohue and the U.S. Chamber of Commerce.

MEXICO CITY (Reuters) – Mexico’s president and the top U.S. business lobbying group called on President Donald Trump to back down from a threat to impose punitive tariffs on Mexican imports, in a dispute over migration that could shock Mexico’s economy.
[…] The ultimatum from Trump is the biggest foreign policy test to date for Mexican President Andres Manuel Lopez Obrador and a tall order for Mexican security forces struggling not only to combat migrant flows but also to fight a record level of gang violence and homicide.

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As Wall Street’s Big Club politicians go bananas over the pending tariffs on Mexico, House Judiciary Committee ranking member Doug Collins appears on Fox morning to discuss his own visit to the border, the growing crisis and the political intransigence in DC.

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AMLO knows there is no way for Mexico to begin retaliating against the U.S. after President Trump demanded they step-up migration travel enforcement or face U.S. tariffs on Mexican imports.  There’s no way for Mexico to take on Trump economically; and they would be foolish to try…  All business interests in Mexico will take a financial hit as soon as the stock market opens tomorrow: [Tweet Link]
No doubt Mexican Foreign Minister Jesus Seade will reach out to Jared Kushner for relief/assistance; but don’t look for President Trump to change on this issue until he sees substantive actions taking place.  Trump knows AMLO has a tendency to play political games with immigration; he’s made hollow promises before; and now Jesus Seade is in a very tenuous position.

(Reuters) […] The announcement rattled investors who feared that worsening trade frictions could hurt the global economy. The Mexican peso, U.S. stock index futures and Asian stock markets tumbled on the news, including the shares of Japanese automakers who ship cars from Mexico to the United States.

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Jumpin’ ju-ju bones, President Trump has just announced an emergency tariff program on all Mexican goods that begins on June 10th at 5% and continues to increase monthly until Mexico takes action to halt illegal Central American migration.
Tariff Schedule: ♦5% effective June 10th ♦10% effective July 1st ♦15% effective August 1st ♦20% effective September 1st ♦25% effective October 1st, and continuing therein until Mexico takes action to stop the flow of Central American migrants.

Details from the White House: As everyone knows, the United States of America has been invaded by hundreds of thousands of people coming through Mexico and entering our country illegally.
This sustained influx of illegal aliens has profound consequences on every aspect of our national life—overwhelming our schools, overcrowding our hospitals, draining our welfare system, and causing untold amounts of crime. Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across the Southern Border and directly into our communities. Thousands of innocent lives are taken every year as a result of this lawless chaos. It must end NOW!
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Chrystia Freeland has presented the initial procedural process for  the Canadian Parliament to take up a bill to pass the USMCA.  However, the Canadian window is short, if they don’t ratify the trade pact by the end of June, the Canadian parliament will go into legislative recess until after the general elections October 21st, 2019.

OTTAWA (Reuters) – Canada took a first step toward ratifying the new North American trade agreement on Monday just three days ahead of U.S. Vice President Mike Pence’s trip to Ottawa to discuss the passage of the treaty.
Foreign Minister Chrystia Freeland presented what is known as a “ways and means motion” to the House of Commons, which opens the way for the formal presentation of a bill.

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