This is a painful, albeit rather telling, interview to watch.  Matt Cartwright has not had the time to fully digest how to be a good resistance member, whereby he simultaneously argues for and against the economic and trade policies of President Trump.
On domestic economic policies, specifically trade, President Trump is essentially carrying out all of the objectives of the blue-dog (moderate) Democrat party.  However, now the ‘resist we much overlay’ creates a pretzel dynamic for those same democrats.  They are for the policies, but must oppose the person carrying out those policies.  This is a goofy preview of what is to come in 2019.

.
Lost but not invisible in the Cartwright angst is any acceptance that President Obama never cancelled NAFTA; nor did President Obama ever challenge the one-way economics of China; both of these confrontations and resets are favored by the new co-chair of the democrat platform committee…. but favored/not-favored when Trump does it.
(more…)

Too funny… this is what we would call a win/win.   President Trump delivering remarks to the media aboard Air Force One on the flight back to the U.S.

(Via Associated Press)  President Donald Trump says he will shortly be providing formal notice to Congress that he will terminate the North American Free Trade Agreement, giving lawmakers six months to approve the replacement he recently signed.
Speaking to reporters aboard Air Force One while returning to Washington from Argentina, Trump says: “I will be formally terminating NAFTA shortly.”

(more…)

On the sidelines of the G20 summit in Argentina, U.S. President Trump, Mexican President Pena Nieto and Justin from Canada deliver remarks prior to signing the NAFTA replacement agreement, the USMCA. [White House Statement Here]
The USMCA is a major structural shift in the U.S., Mexico and Canada, trade agreement. While the new agreement does not form an actual trade-bloc, the agreement removes most of the exploitation of the U.S. market that existed within NAFTA. The U.S. and Mexico are the primary benefactors; Canada notsomuch.

.
[Transcript] Buenos Aires, Argentina – 9:24 A.M. AST – PRESIDENT TRUMP: Thank you very much. We’re gathered together this afternoon for a very historic occasion: The signing ceremony for a brand new trade deal, the United States-Mexico-Canada Agreement. So important.
(more…)

This is one of those reports that seems small and appears way over there on the periphery. However, if MAGAnomics and trade are important to you, this story is very much worth paying attention to.
As CTH shared last week the White House reached out to EU auto executives to request a meeting.  There is a VERY STRONG likelihood the message within this meeting will surround potential tariffs, and questions from team Trump about the intents of EU (mostly German) automakers against the backdrop of the USMCA.
The potential for auto-tariffs terrifies the EU (specifically Germany), because most of their profits from within the industry come from access to the U.S. market.   Few major markets in the world can afford the scale of automobile purchases as a wealthy U.S.A. does.  The profit margins are much smaller in all other countries.  Without the U.S. market, these auto companies would be in deep financial trouble.  Enter Trump’s leverage:
(more…)

The issue is basic to the construct of the USMCA (NAFTA replacement).
BMW made a multi-billion-dollar investment in Mexico in anticipation of exploiting the NAFTA loophole.  President Trump has closed the loophole.  The new USMCA agreement requires 75% of automobile parts made in North America; and 45% must come from plants with minimum labor costs ($16/hr), or face tariffs upon export to the U.S.
As a result BMW is now considering opening those higher-wage component supply operations in the U.S.

LOS ANGELES (Reuters) – BMW (BMWG.DE) is considering a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said on Tuesday, shortly after a report that U.S. President Donald Trump would impose tariffs on imported cars from next week
[…] BMW is considering changes to U.S. operations as sales in the region grow, Krueger said. BMW has a U.S. vehicle assembly plant, in South Carolina, is planning to open a Mexico factory next year, and is considering changes to its current scheme of importing engines and transmissions.

(more…)

A small but interesting development in the relationship between the U.S. and Mexico highlights a backstory CTH suspected several months ago {Go Deep}. August 25th:

As USTR Robert Lighthizer was working with the trade officials representing outgoing Mexican President Peña Nieto, White House adviser/emissary Jared Kushner was quietly working behind the scenes with AMLO trade adviser Jesus Seade and outlining the possibilities if they partnered with strategic economic objectives in mind.
As a result of Kusher’s dogged efforts to bring an entirely new dual-nationalist ‘focus’ within the trade construct, removing the historic globalist baseline, the outcome of the trade deal is excellent for both the U.S. and Mexico.  So today:

MEXICO – […] Kushner will receive the prize “for his contributions to achieve the negotiation of the new United States-Mexico-Canada Agreement (USMCA),” according to a statement by Mexico’s Foreign Relations Secretariat.
Peña Nieto will present Kushner, President Trump’s son-in-law, with the award on Thursday at the Group of 20 summit in Argentina, according to the Reforma newspaper.

(more…)

Press Secretary Sarah Sanders, National Security adviser John Bolton and National Economic Council Chairman Larry Kudlow hold a very important press briefing from the White House.
Chairman Kudlow discusses current economic issues, and the upcoming possible trade discussions with China at the G20 meeting in Buenos Aries, Argentina. At 19:00 minutes NSA John Bolton takes over to discuss the scheduling details of the G20.  [Interesting trilateral mentioned: Trump, Modi and Abe] At 30:00 minutes Sarah Sanders takes over.

(more…)

Actions have consequences.  Mexico says they will deport those who attempted to illegally cross the U.S-Mexico border earlier today.
Nice to see a new Mexican government perspective stepping up here to punish unlawful behavior at the border…. though I’m certain the thought of the President Trump closing the border was likely the factor at play.

MEXICO CITY (Reuters) – Mexico will deport migrants from a group of 500 who on Sunday tried to “violently” and “illegally” cross the U.S. border, the Mexican Interior Ministry said in a statement.
The statement added that Mexican authorities had contained the protest at the crossing between Tijuana and San Diego and that, despite heightened tensions there, Mexico would not send military forces to control 7,417 migrants from a caravan currently amassed at the U.S.-Mexico border. (link)

(more…)

Canadian media are reporting that General Motors plans to shut down operation in Oshawa, Canada.   This is quite possibly an outcome that portends the sign of things to come…

CANADA – Numerous sources have told CTV Toronto that General Motors is planning to close all operations in Oshawa, Ont., affecting thousands of high-paying jobs.
The announcement is expected to be made on Monday, in the city of about 159,000 people located roughly 60 kilometres east of Toronto.  Sources said they believe the Oshawa closures are part of a global restructuring. (read more)

GM holds considerable risk exposure within the current state of international trade and economics as it relates to the auto industry.  As a result of the ongoing U.S-China trade confrontation, GM holds risk as a result of heavy investment in China.  Add to that exposure the very significant financial impacts about to start for heavy manufacturing operations inside countries aligned with the Paris Climate Treaty, and the risk increases.
(more…)

The Washington Times is reporting on a possible agreement between U.S. and Mexico officials to keep all Central American asylum seekers outside the U.S. during the process to evaluate their asylum claims.
The important backdrop here is the new Mexican President, Andrés Manuel López Obrador (AMLO), taking office on December 1st.  If the reporting is correct, there may be an agreement in the works between President Trump’s administration and AMLO’s team.
Reading between the lines, the mutually beneficial structure of such an agreement is likely based within prior economic (trade) discussions. [CTH sees Jared Kushner’s diplomatic fingerprints at work]  Friends with benefits….

(Via Washington Times) Immigrants seeking asylum in the United States by entering through Mexico could be required to wait south of the border while U.S. courts assess their cases, a member of the incoming Mexican government said in an interview published Saturday.
Andrés Manuel López Obrador, Mexico’s president-elect, plans to implement a policy known as “Remain in Mexico” after taking office next month, his top domestic policy official told The Washington Post.

(more…)