The picture of the seating assignments speaks so loudly you don’t need to hear a word they are saying.

Canadian Prime Minister Justin Trudeau is sandwiched between Secretary of Commerce nominee Howard Lutnick and the man who holds the hammer for Canada’s economic future, President-Elect Donald J Trump.

Also pictured to President Trump’s left is his pick for national security adviser, Mike Waltz, and his wife Julia Nesheiwat, the sister of Surgeon General nominee Janette Nesheiwat. Also included in the photo is President Trump’s interior secretary pick, Doug Burgum.  Suffice to say, the economic half of the Trump Doctrine purposefully in place.

Corporate media are focusing on President Trump’s prior statements about imposing tariffs on Canada as the narrative to go with the hastily assembled visit by Justin from Canada….

ABC – […] The meeting came after Trump threatened sweeping 25% tariffs on goods from Mexico and Canada until both countries stop what he claims is a flow of drugs and illegal immigrants into the United States.

Trudeau told reporters earlier this week after he and Trump spoke on the phone following the tariff threat that they had a “good call.” He added that he looks forward to “lots of great conversations” with Trump. (more)

According to narrative media, stenographers for the status quo, the focus is on President Trump potentially seeking an early renegotiation of the USMCA trade agreement which is scheduled for a revisit in 2026.

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President Trump announced via Truth Social that he had a “wonderful” and “very productive” conversation with Mexican President Claudia Sheinbaum.  According to the announcement, illegal alien migrants will no longer be permitted to traverse Mexico en route to the U.S. southern border.

[SOURCE]

The professional political left is currently in the process of heralding Sheinbaum as the Latin Angela Merkel; a diplomatic trade figure to stand up against horrible bully, Donald Trump.  However, the left is having a little difficulty assembling the rank-and-file message while reconciling Sheinbaum is a Jewish Mexican.

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President Trump has announced the nomination of Jamieson Greer to be the United States Trade Representative (USTR).  Jamieson Greer was the Chief of Staff to former USTR Robert Lighthizer.

In a previous nomination of Howard Lutnick as Commerce Secretary, President Trump noted Lutnick would have responsibility overseeing the office of the USTR.   Apparently Lutnick and Greer will be working closely together.   Great news.

[Source]

Greer is likely to be facing China first and most directly, as President Trump economically faces the EU and NATO over the Ukraine issues.

The second announcement on the economic team does not need confirmation.  President Trump announces the return of ¹happy warrior Kevin Hassett as Director of the White House National Economic Council (NEC).  This is awesome news, and Hassett is a great communicator.

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The reactions to President Trump’s border security tariffs are not quite as funny from Canada, as they were Mexico, but they are still funny.

A subdued and despondent Justin Trudeau said he and President Trump spoke last night, and he stresses the importance of the bond and relationship; you know, the ‘feels’.  WATCH:

PM Trudeau tells reporters he had a phone call with US President-elect Trump after Trump threatened to impose 25% tariffs on all Canadian products.

Trudeau says he has also been in touch with premiers to address this issue. pic.twitter.com/06boFKsEuv

— True North (@TrueNorthCentre) November 26, 2024

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Meanwhile, in a far more funny and less politically correct reaction, Ontario Premier Doug Ford says, ‘hey, wait a minute, we aren’t Mexicans’. WATCH:

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Other than Trump winning the election, this is the best news all year. Mexico is threatening to retaliate against Trump’s border security tariffs, with some form of economic punishment. Pinch me, this is too awesome.

Keep in mind that around 35% of Mexico’s GDP is contingent upon exports to the USA, meanwhile only around 1% of our stuff exports to them. Then add in the remittances of dollars to Mexico, and more than 50% of the Mexican economy is contingent upon us just being friendly to their needs.

Mexican President Claudia Sheinbaum has no clue or comprehension about the scale of Trump’s leverage over her. This is like a spoiled teenager threatening to cut up the credit card dad gave her if she can’t go to the concert. Beyond funny.

WASHINGTON DC – Mexican President Claudia Sheinbaum said her government would retaliate if President-elect Donald Trump moves forward with his threat to impose a 25 percent tariff on the country, warning of severe economic consequences for companies operating in both countries.

Sheinbaum unveiled the letter during her daily press conference in Mexico City, which responded to Trump’s plan to slap 25 percent tariffs on all goods from Mexico and Canada in an effort to crack down on the flow of migrants and illegal drugs into the United States. Trump also pledged an additional 10 percent tariff on China.

“For every tariff, there will be a response in kind,” Sheinbaum wrote in a letter sent to Trump. The text was released by the Mexican Embassy Tuesday morning, which said the economic fallout of a trade war would harm shared enterprises, particularly automotive companies that operate in both countries.

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Boy howdy, this article by The Associated Press is very telling.

First, it’s worth remembering that in the fine print of the USMCA deal, Mexico and Canada must comply with North American parts origination for anything they want to manufacture for sale into the United States.  Meaning, all trade manufacturers must either create their component parts domestically, or purchase them from the U.S, Mexico and Canada. It’s the core point of the USMCA trade agreement.

Secondly, in an aspect exclusive to the U.S. part of the deal that President Trump and USTR Lighthizer insisted upon, if either Canada or Mexico are deemed to be non-compliant with the agreement, the USA can cancel/override any trade agreement Mexico or Canada have with another nation.  It’s a heavy accountability hammer securing the gate into the massive USA market.

In an AP report today, Mexico is scrambling to find local or North American sources of parts and components, because President Trump is set to come into office and look at USMCA compliance.  Apparently, Mexico has been using excessive amounts of Chinese component parts for goods being sent into the USA and Canada.  Now they are quickly trying to source alternatives.

MEXICO CITY (AP) — Mexico has been taking a bashing lately for allegedly serving as a conduit for Chinese parts and products into North America, and officials here are afraid a re-elected Donald Trump or politically struggling Canadian Prime Minister Justin Trudeau could try to leave their country out of the U.S.-Mexico-Canada free trade agreement.

Mexico’s ruling Morena party is so afraid of losing the trade deal that President Claudia Sheinbaum said Friday the government has gone on a campaign to get companies to replace Chinese parts with locally made ones.

“We have a plan with the aim of substituting these imports that come from China, and producing the majority of them in Mexico, either with Mexican companies or primarily North American companies,” Sheinbaum said.

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President Donald Trump has announced Scott Bessent as nominee for U.S. Treasury Secretary. The Secretary of Treasury implements tax policy, manages the nation’s debt, leads financial regulators, monitors and executes sanctions and conducts economic diplomacy. While the U.S. trade representative takes the lead on tariffs, the Treasury secretary typically plays a key role advising on that issue as well.

[SOURCE]

Bessent (62) is a hedge Fund manager, the founder of investment firm Key Square Capital Management.  Despite supporting President Trump early, he has faced criticism for working as the CIO at George Soros’s Soros Fund Management from 2011 to 2015. He lives in Charleston, S.C.

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Perhaps it’s just because the election is only a few months away, or perhaps it’s because President Trump’s trade and economic policies toward China were always the right approach for the USA.  Whatever the reasoning, the Biden administration is now proposing to use tariffs against China just like President Trump.

There’s a hidden dimension to the Chinese EV angle that makes this claim a little dubious, I will explain after the topline big story.

Overall, the New York Times is reporting [SEE HERE] that Joe Biden and USTR Katherine Tai are likely to trigger massive tariffs against imported Electric Vehicles (EVs) from China, perhaps as much as 100% due to the low cost of Chinese production.  Additionally, the Biden administration is considering increasing the tariff regime against imports of Chinese steel and aluminum in a bid to protect the American industry.

On the EV issue, this tariff approach is politically duplicitous by Biden against the backdrop of massive investment in Mexico by the three largest Chinese EV automakers. Last December the three Chinese auto manufacturers, MG, BYD, and Chery, announced they were going to spend billions building new EV manufacturing plants in Mexico.  Each Chinese auto manufacturer was going to spend between $1.5 to $2.0 billion.

Those Mexican built Chinese EV’s would pass into the USA market under current USMCA trade rules and regulations, as long as they technically meet the material origination rules.  This can make tariffs against the Chinese imported EVs a moot point, because China will be making them in Mexico (North American trade agreement).

One of the reasons President Trump said the U.S. auto industry would suffer a “bloodbath,” is specifically because the current Chinese auto companies are targeting these EV’s in the $10,000 or less range.  If you want to see what it looks like when cheap Chinese EV’s start to flood a consumer market, visit Russia – the western sanctions have only increased this flow.  I can see it clear as day.

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This is somewhat of a predictably tragic outcome all things considered. I remember a previous conversation on these pages when GM moved massive investment into China to build their mid-size SUV brand, Encore.

Continuing the U.S. decline of the brand, the Wall Street Journal is reporting that approximately half of all Buick dealership in the U.S. have opted to take a buyout from GM, as opposed to spending millions in retooling, restructuring and retraining their staff to accommodate the EV influx.

Most of the EV’s shoved onto the dealer lots sit idle without customers to purchase them.

Wall Street Journal – General Motors (GM) has bought out about half of its 2,000 Buick dealers nationwide, based on their decision to not sell electric vehicles, according to a company spokesman Wednesday.

Dealers who are taking the buyout would give up the Buick franchise and no longer sell the brand, he said. The dealer can continue to sell other GM models, such as Chevrolet or GMC, that often account for a higher percentage of sales.

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The headline is the non-pretending reality.  Now that Joe Biden has designated EPA mandates for U.S. automobiles that include having at least 50% of all new vehicle sales be electric by 2030 {LINK}, three major Chinese EV manufacturers are reportedly building manufacturing facilities in Mexico.

Blackrock investments steer WH policy {Go Deep}. Blackrock investments are heavy in China and EV production.  Blackrock returns on their investments would be substantial with Chinese EV production in Mexico.  Quite a coincidence.

BUSINESS INSIDER – Three major Chinese EV companies are planning to build new factories in Mexico, sparking concern among US officials, according to a new report.

MG, BYD, and Chery are all looking at sites to build new factories in the country, according to unnamed sources cited by The Financial Times, and this investment is causing angst in Washington as it seeks to keep China out of the US electric car market.

US officials have reportedly raised concerns with their Mexican counterparts over Chinese investment, with the new sites potentially including a new $1.5 billion to $2 billion MG electric car factory and a factory investment worth hundreds of millions of dollars from Warren Buffett-backed Tesla rival BYD.

China’s electric vehicle market is booming, and local manufacturers are increasingly looking to expand overseas amid cutthroat competition for customers back home.

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