Jumpin’ ju-ju bones – The Trump administration via U.S. Trade Rep Robert Lighthizer and Commerce Secretary Wilbur Ross won a massive $7.5 billion award as an outcome of the World Trade Organization agreeing with the U.S. against the EU and Airbus subsidies.  The WTO arbitrators decision is final and cannot be appealed.
This win sets the stage for President Trump to deploy $7.5 billion in countervailing duties against products from the EU.  Keep in mind, a final WTO ruling means the EU cannot retaliate against any WTO-authorized countermeasures.  The downstream ramifications are very significant. Think about it: at 25% the U.S. could tariff $30 billion in EU goods.

Man, talk about serendipitous timing… But first, here’s the press release from Robert Lighthizer:

Washington, D.C.–  The United States has won the largest arbitration award in World Trade Organization (WTO)  history in its dispute with the European Union over illegal subsidies to Airbus.  This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules.
Today’s decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.

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White House trade and manufacturing advisor Peter Navarro appears on CNBC to discuss the Bloomberg news story about the White House blocking U.S. investment in China.  Additionally, Navarro is asked about U.S-China trade discussions.
This interview happens on the heels of a massive win for the White House at the Universal Postal Union Congress, where the UPU accepted that inbound package deliveries to the United States will no longer be subsidized by U.S. taxpayers – {Details Here}.

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There are two aspects to this recent story: the visible surface issue; and the unspoken issue below the surface.  In essence, there’s more here than most will recognize at first blush.
The surface level aspect is the Trump administration considering a block on U.S. investments into the opaque financial system that is China.
The U.S. financial media view the proposal through the prism of the White House looking for leverage over Beijing during negotiations:

(Via CNBC) […] Restricting financial investments in Chinese entities would be meant to protect U.S. investors from excessive risk due to lack of regulatory supervision, the source said.
The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume on Oct. 10 in Washington. Both countries slapped tariffs on billions of dollars worth of each other’s goods. The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.

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President Donald Trump and Prime Minister Shinzo Abe of Japan sign “stage-one” of a U.S-Japan trade agreement negotiated by U.S. Trade Representative Robert Lighthizer and Foreign Minister Motegi; both are very strong negotiators.
The agreement has been in the works for several years as President Trump and PM Abe both held firm to positions that benefit both.  [Video and Transcript Below] Japan is the fulcrum for Trump’s Indo-Pacific trade reset; PM Abe recognizes the importance of positioning Japan to benefit from the decoupling between the U.S. and China.  Trade can be boring at times, but this jousting is actually a lot of fun; don’t miss it.

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[Transcript] – PRESIDENT TRUMP: Thank you very much everybody for being here. I’m honored to be alongside my great friend, Prime Minister Abe of Japan, to formally announce our first stage of a phenomenal new trade agreement with our close ally. They’ve been a great friend, and the Prime Minister has been my great friend.
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President Trump and Prime Minister Abe are essentially peas and carrots engaged in friendly economic competition.  The relationship between them is genuine warmth and respect. During their bilateral today President Trump praised the U.S-Japan announcement as big deal, adding it “took a lot of work to get it done.“
Abe has been my friend, POTUS said, adding that Japan – on his request – has been building their plants in the US. In Michigan, in Ohio.  Prime Minister Abe said: “Once again, I’d like to share with you my enthusiasm“ about this agreement. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Well, thank you very much. We have some of our great farmers and ranchers and businesspeople in the room, and likewise Japan. And we have tremendous representatives — some of the biggest people anywhere in the world — what we’re going and the agreement that we just signed. And it’s an honor to have you with us. I thought you could join us for this meeting.
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Today, President Donald J. Trump met with Prime Minister Narendra Modi of the Republic of India at the United Nations General Assembly. The leaders discussed progress on different aspects of their strategic partnership and upcoming opportunities to ensure it remains strong. The President reaffirmed the importance of greatly increasing trade between the United States and India, and highlighted the need for resolving barriers to free, fair, and reciprocal trade, which includes improving United Statescompanies’ market access in India.  [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Thank you very much. It’s a great honor, as you know, to be with — because we were together just the other day in front of 59,000 people in the stadium, and that was a great day — Prime Minister Modi of India.
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U.S. Treasury Secretary Steve Mnuchin talks to FOX Business’ Lou Dobbs about the current status of U.S-China trade negotiations.  Mnuchin and U.S. Trade Representative Robert Lighthizer have been working together on the overall China issues.
Mnuchin delivers a deliberate explanation of the current status.

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Earlier today President Trump met with South Korean President Moon Jae-in (the Asian Obama) to discuss issues of mutual interests.  The relationship between Trump and Moon is one of the more interesting geopolitical dynamics.  President Moon is consistently flummoxed by the effectiveness of Trump and has learned to respect a strategy he doesn’t understand. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Well, thank you very much. We’re pleased to be with President Moon of South Korea. We have a long-term friendship, and we are making a lot of progress. We are working on tremendous trade deals. We — as you know, we’ve completed a trade deal, and that’s working out very well for both countries. That deal is completed now, and it’s been in existence for — solidly in existence for six months. And it’s been very good.
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Earlier this morning First Lady Melania Trump opened the New York Stock Exchange with a group of 4th grade students to celebrate the “Be Best” campaign.

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President Trump meets with Prime Minister Lee Hsien-Loong of the Republic of Singapore at the United Nations General Assembly. The two leaders celebrated the longstanding and expanding U.S.-Singapore bilateral security partnership, and formally renewed 1990 Memorandum of Understanding between the two countries on Defense Cooperation.
The leaders also discussed the extensive economic relations between the United States and Singapore, and reaffirmed their commitment to promoting free, fair, and reciprocal trade and investment among the world’s economies. The President thanked Prime Minister Lee for hosting the first U.S-DPRK summit, and the two leaders agreed to sustain efforts to bring about the final, fully verified denuclearization of the Korean Peninsula. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Well, thank you very much. As we just said, we signed a very important agreement having to do with defense and mutual defense, and I guess you could say mutual offense, also.
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