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.

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 Policy Advisor Peter Navarro outlines what many CTH readers are aware of.  John Bolton begged for the job and enlisted Sean Hannity and Mark Levin to get advanced recommendations.  That’s how he got in. However, as National Security Advisor John Bolton never understood the President Trump doctrine, using economics to achieve national security objectives.  Underline it, highlight it, that’s the primary issue.

In this interview Navarro goes full wolverine on Bolton, and deservedly so.  What Navarro outlines is the truthful reality.  You can tell because it aligns at every level with what we watched every day while John Bolton was in the administration. God bless Navarro for truthfully calling the baby ugly.  WATCH:

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John Bolton felt unimportant in the world of geopolitics because President Trump relied on the economic team of Secretary Mnuchin, Secretary Ross, USTR Lighthizer and Trade Advisor Peter Navarro to achieve national security objectives.

Bolton was the knuckledragger at the end of the table, useful as leverage, where Trump could point to him and say lets make a deal to keep the warmongers like this guy out of the picture. Bolton’s biggest problem was with that Trump doctrine.

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This hearing might be a little too wonky for some, but not too many other policy issues touch 100% of American lives.   U.S. Trade Representative Robert Lighthizer will be delivering testimony today outlining the 2020 trade policy agenda.

The testimony is before the House Ways and Means Committee, and will be livestreamed on the committee website [SEE HERE] and below at 10:00am ET from the Longworth House Office Building.  USTR Lighthizer is the sole witness.

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Lighthizer will also be testifying to the Senate Finance Committee at 3:00pm. [LINK]

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U.S. Trade Representative Robert Lighthizer is testifying tomorrow at 10:00am to the House Ways and Means committee; later in the afternoon Ambassador Lighthizer will testify before the Senate Finance Committee.

The New York Times has received an advance copy of USTR Lighthizer’s opening statement, and the liberal publication is apoplectic the Trump administration plans to outline an even more aggressive stance toward the World Trade Organization (WTO).

According to the pearl-clutching Wall St. class, Lighthizer is going to inform congress of Trump/USTR plans to demand tariff reciprocity; and Lighthizer will indeed raise tariffs against any nation that continues to attempt one-sided benefit. [EU will go bananas]

One method to approach tariff inequality would be for the U.S. to lower the import value threshold for non-tariff exemptions. Currently the U.S. does not apply import duties to any product valued under $800. This is a great benefit to China, southeast Asia, and U.S. on-line retailers such as ebay and Amazon; however, the zero tariff threshold hurts U.S. manufacturers because China and other nations do not reciprocate.

It is anticipated that USTR Lighthizer will inform congress the U.S. will lower that import threshold to match the same value level applied by other nations. Obviously the U.S. Chamber of Commerce and the Wall Street multinationals will not like this approach.

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The U.S. media are in ideological alignment with blue state governors and congressional democrats to hype COVID-19 panic as a method to keep the economy from reopening.  To advance this narrative the crowds during mass protects they approve of are ignored; but any crowd at an event they do not align with is used to push panic. Everyone can see this.

The New York manufacturing index shocked everyone earlier today showing a strong rebound.  The index “unexpectedly” surged 48 points in June surprising all economic forecasters.   Meanwhile, National Economic Council Chairman Larry Kudlow appears on Fox News to discuss the dynamics.

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As Kudlow notes, President Trump is looking to use any potential phase-4 legislative package to inject a massive ‘America First’ boost, via tax incentives for manufacturing business interests to return to the U.S.  The administration does not see a need for additional direct spending, bailouts, or continued payments; however, this is an opportunity to provide tax incentives to boost U.S-centric economic activity.

It’s important to remember the dynamic of U.S. multinationals (Wall St), and how many of them align with Democrat and media efforts to hold down the U.S. economy. There are trillions at stake.

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White House trade and manufacturing policy advisor Peter Navarro appears for an interview with Maria Bartiromo to discuss the strong data for jobs amid the effort to reopen all facets of the U.S. economy.  Navarro highlights the recent visit to Maine where he accompanied President Trump to celebrate U.S. critical manufacturing.

Within the interview Navarro reminds the audience of the larger strategic confrontation against China that involves multiple geopolitical aspects to the U.S. economy.

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The media apoplexy over positive economic news is directly related to how much damage a positive economy does to the Antifa/BLM strategy to divide our nation through class warfare. A thriving Main Street economy is antithetical to the objective.

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Earlier today President Trump and trade advisor Peter Navarro traveled to Bangor, Maine to participate in a roundtable discussion on supporting America’s commercial fishermen. During the visit the president signed a proclamation modifying the Northeast Canyons and Seamounts Marine National Monument.

Participating in the roundtable were: Paul LePage, Former Governor of Maine; Terry Alexander, Owner, Jordan Lynn Inc.; Jim Odlin, Member of Board of Directors, Blue Harvest Fisheries; Frank O’Hara Jr., President, O’Hara Corporation; Kristan Porter, President, Maine Lobstermen’s Association; Maggie Raymond, Executive Director, Associated Fisheries of Maine; Mary Beth Tooley, Former Council Member, New England Fishery Management Council and Jon Williams, Owner, Atlantic Red Crab Company

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Background – On September 15, 2016, the Obama Administration designated the first and only national marine monument in the Atlantic Ocean, the Northeast Canyons and Seamounts Marine National Monument, using authority under the Antiquities Act of 1906.

This action abruptly ended commercial fishing within its boundaries, limiting economic prosperity for this crucial industry in the northeast. President Trump’s proclamation amends that economic restriction, reauthorizes commercial fishing, but will not alter the boundaries of the Northeast Canyons and Seamounts Marine National Monument.

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Economic analysts had forecast another month of job losses around 9 million; however, the ADP payroll report shows a much better result with 2.76 million jobs lost in May. The surprising difference between expectations and results is giving increased hope a quicker rebound may be possible.

The ADP results were so much better than expected that White House economic advisor Kevin Hassett said he has to check the data twice.  The data was released while Hassett was in the middle of an interview with Maria Bartiromo on Fox Business.

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The key is getting rid of these nonsensical shut-down rules.  As the lack of social distancing concern amid the protests has shown, the shut-down fears, rules and regulations are over-hyped and baseless. However, the blue state governors continue to fight economic re-engagement as they look to maximize negative economic impact for political gains.

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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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