First, for those who have fought for decades against the baseline flaws within the NAFTA trade agreement, today is a very memorable day. Today the USMCA officially goes into effect and the trade brokerage system exploited by Mexico and Canada is officially ended.

NAFTA is DEAD! …This has been one hell of a decades-long battle.

Effective today the manufacturing of North American products must originate in North America. No longer will Canada and Mexico be allowed to “assemble” component goods from Asia and transport them as finished North American goods into the U.S. market.

The immediate impacts from this trade-loophole closure will be felt over the next several months and years.  Yes, things are rapidly about to change… and when you understand the details you also understand why the Democrats need to exploit a fictitious COVID fear to stop the explosion of U.S. economic growth that will follow.

Statement from U.S. Trade Representative Robert Lighthizer:

“Today marks the beginning of a new and better chapter for trade between the United States, Mexico and Canada – just as President Trump promised he would deliver for the American people.

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President Trump holds an interview with Fox Business News’ Blake Burman. The president hits on a variety of current headlines including ongoing COVID-19 mitigation, a potential fourth round of stimulus, the nonsensical Russia conspiracy nonsense and the 2020 election campaign.

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During an interview with Fox Business’ Maria Bartiromo, Commerce Secretary Wilbur Ross notes that companies with headquarters in Hong Kong are likely to rethink those offices with China now taking control under Beijing’s sweeping new security law.

This is a significant statement and underpins the U.S. strategy that is dismantling the Chinese influence on global trade and manufacturing.  As Secretary Ross noted: “I believe that there’s a good chance that all companies who have Hong Kong as their headquarters for Asia will begin rethink whether the new rules – the new relationship between Hong Kong and mainland China – whether those rules let Hong Kong be as favorable a place to have headquarters as it used to be.”  WATCH (listen closely):

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There is a deliberate and blunt focus in the statements by Ross that will have a significant impact.  Globally the world needs to accept the future of Hong Kong as a communist state, and disavow the notion of any semblance of an autonomous region.  Secretary Ross just threw a bucket of cold water in the face of those who refuse to accept the reality as it exists.

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~ Why We Must Re-Elect President Trump ~

Today the Federal Communications Commission (FCC) formally designated Chinese’s Huawei Technologies Co and ZTE Corp as posing as posing national security threats to the United States. This designation and declaration blocks U.S. firms from tapping an $8.3 billion government fund to purchase equipment from either company.

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This is an important step toward eliminating Huawei 5G data risks within U.S. telecommunication networks.  Additionally, the designation will have the forward impact of restricting U.S. allies from linking networks if they use Huawei/ZTE components.

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In a statement earlier today, Commerce Secretary Wilbur Ross has announced the U.S. is revoking the special trade status of Hong Kong in response to escalating encroachment by China in violation of the prior agreement for autonomy.

It is a challenging status to modify because the administration does not want to reduce the ability of Hong Kong to operate as an autonomous economic region.  However, at the same time Beijing is taking control of all systems within Hong Kong and as such policies must be adjusted.  It would be an exercise in futility to expect China to retreat.

Earlier today President Trump attended a border security briefing in Arizona during an event to thank border enforcement and review the border wall.  [Video and Transcript]

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[Transcript] – THE PRESIDENT: Well, thank you very much. Great to be here. Beautiful runway. A little warmer than I’m used to, but that’s okay, Doug, right? We have a — I was just given a beautiful picture of the wall. That’s before and after. And that’s quite a difference: one area you walk over, you drive over, you do whatever you want, and other one you say, “Well, I guess we don’t get in.” Here’s another one — just given. That’s great. That’s a different section. Pretty amazing.

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In the economic balancing act toward China Larry Kudlow represents the good cop, Peter Navarro represents the bad cop and President Trump navigates the market responses.  Neither person is factually in conflict with the other; the nuance is in the expression and each person has a role to play.  Sometimes teeth, sometimes not. It depends on need.

Last night trade advisor Peter Navarro noted the U.S. position with China and trade is still in a state of serious conflict.  This is accurate, and a more confrontational posture has been expressed by President Trump.  Today Larry Kudlow moderates the Navarro position to lessen the Wall St. concern over a looming decoupling.  It’s all a dance.

The need for nuance becomes clear as we watch Stuart Varney pushing the Wall Street concern angle on behalf of U.S. multinationals. The administration does not want to spook the stock market while they deal with a China confrontation. WATCH:

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Kudlow represents the panda mask. Navarro represents the eagles claw. President Trump advances or retracts each position as he controls the market response.  The objective is a slow, steady, smiling decoupling that doesn’t unnerve anyone… but the direction is always toward the decoupling.

President Trump is delivering the proverbial economic death by a thousand paper cuts.

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White House Trade and Manufacturing Advisor Peter Navarro has a good discussion with Martha MacCallum about the economy, White House economic policy and the focus in the aftermath of the COVID crisis to reemphasize an industrial resurgence in the U.S.

As Navarro outlines the focus of the administration policy is on Main Street and driving the main street economy that overwhelmingly benefits middle-class workers.

That said, when questioned about President Trump’s recent tone toward China, Navarro hints toward what many expect… President Trump is going to deliver a very deliberate, very strategic, very focused and very painful economic blow to Beijing.  WATCH:

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On Thursday afternoon President Trump delivered remarks after a tour of the Ford Motor Company Rawsonville Components Plant in Michigan. [Video and Transcript Below]

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[Transcript] THE PRESIDENT: Thank you. Well, thank you very much. I like that dais very much, actually. That’s very special. Nice wood. Beautiful like the dashboards on your cars, Bill. Right?

MR. FORD: Absolutely.

THE PRESIDENT: Thank you. And I just heard you’re going to be having two more — two thousand more jobs right down the road for the Bronco, which is a big winner. That’s great. Fantastic job. Thank you very much, Bill.

MR. FORD: Thank you, sir.

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A visibly angered President Trump told Maria Bartiromo he “doesn’t want to talk to China right now” and expresses a more open opinion that we should just decouple from all economic attachment to China.  This is a seismic shift in tone toward Beijing.

All administration policy and economic influence is now targeted to remove Chinese manufacturing from the U.S. supply chain. President Trump and white house officials openly discussing a U.S. effort to decouple from China is a significant shift.

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President Trump has been creating a dual position for several years; this is very unique because it is the same strategy used by China.  By expressing a panda face, yet concealing the underlying dragon, President Trump’s policy to China is a mirror of themselves.

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