Background first:  There’s a massive shifting of manufacturing in the auto-industry and President Donald Trump is at the center of it.  The USMCA trade agreement is the newly constructed Trump fulcrum underneath the structure of all auto manufacturing.  POTUS Trump has shifted the location of this fulcrum through auto-tariffs; and the final determinations therein are still ongoing.
On Tuesday, POTUS invited the EU auto executives to the White House.  No doubt Trump, the executive businessman, was seeking to understand their position on how the EU crew will comply with a 75% USMCA rule of origin…. and feel-them-out over what leverage he could apply (tariff threshold) to enhance their manufacturing relocation decision.

Example: With tariff at 2.5% they won’t move anything just pay the duty; however at 10% or higher they might move engine building or transmission building to North America etc to get inside the rules of origin threshold.  Trump was likely exploring the Mercedes, VW and BMW perspectives while Angela Merkel was gnashing her teeth… “curse you villian”.
President/Businessman Trump is setting up a future for high-wage U.S. manufacturing workers.  POTUS is in apex predator mode… the combination of USMCA and tariff possibilities are like blood in the water surrounding: Dr. Dieter Zetsche (Mercedes), Dr. Herbert Diess (VW), and Dr. Nicholas Peter (BMW); while Trump asks questions.
Mike Manley the new CEO of Fiat Chrysler wants nothing to do with that scenario.  He ain’t about to get in the water.  Swimming with Trump? Oh, hell to the no:
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If the latest reports are accurate, this is *not* good.  Remember, there are trillions at stake and Wall Street has spent hundreds-of-million on behalf of multinational interests lobbying to keep the current status with China unchanged.
There’s a deep financial motive within this dynamic to stop President Trump from resetting the trade relationship with China. Additionally, Canada is aligned in self-interest with Wall Street and Trump’s adversaries toward the same goal.

Apparently National Security Adviser John Bolton was aware the CFO of Huawei was going to be arrested in Canada.  However, President Trump was kept out of the loop.

WASHINGTON (Reuters) – U.S. President Donald Trump’s national security adviser, John Bolton, said in an interview with National Public Radio that he knew in advance about the arrest of a top executive of the Chinese technology giant Huawei Technologies Co Ltd [HWT.UL], according to an NPR reporter on Thursday.
Bolton said he did not know if the president was aware in advance of the arrest of Meng Wanzhou in Canada on Saturday, the day Trump struck a 90-day truce on trade in a meeting with Chinese President Xi Jinping in Argentina, NPR reporter Steve Inskeep said in a tweet.

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White House trade adviser Peter Navarro appears on Fox Business to discuss the possibility of trade deals between the U.S. and China.  Navarro explains the Buenos Aires dinner meeting and how Chairman Xi outlined his position on three buckets of U.S. concerns.
Charles Payne is going bananas because he doesn’t understand what happens in the space between two different sets of economic policy benefactors:  Wall Street and Main Street.
Wall Street is going to lose ground; period.  Their financial interests are dependent on retaining the status-quo multinational/global economic systems.  President Trump is supporting Main Street over the interests of Wall Street.  Stocks that are centered on U.S. blue-collar companies, domestic benefits, will grow; all other multinational stocks will not.

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Treasury Secretary Steven Mnuchin appears with Fox Business Maria Bartiromo for an extended interview on multiple current economic aspects. Economic Security is National Security. There are three segments.
Secretary Mnuchin discusses: the agreement between President Trump and Chairman Xi for immediate shifts within the U.S-China trade relationship, and the anticipated immediate deliverables; the USMCA agreement; the auto industry and the overall economy.

Segment two and three below:
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Within the dynamic of the U.S -vs- China trade confrontation, CTH noted the Wall Street (globalist) multinationals would likely go bananas.  There are trillions at stake and President Trump is confronting three decades of financial influence from the corporate lobbyists.   To the angst of Wall Street, POTUS Trump tweets the dynamic:
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides behind the panda mask.
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Political analyst and commentator Dan Bongino has a great dot-connecting podcast today that outlines the players, motives, moves and intentions surrounding the ongoing Deep Administrative State battle.
It is an excellent presentation in all facets, with one minor gear slightly askew – which CTH will explain.  The content is very well presented. Everyone should listen to the podcast.  (Hit the little orange arrow):
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The only divergence CTH holds to the overall outline is below.
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The Institute for Supply Management (ISM) released their manufacturing review today highlighting continued expansion of the underlying economy.  The results today from within the overall manufacturing industry emphasize the 27th consecutive month of growth…. and a future-view that seems to be predicting much more.  Much more!

ISM Release […] Manufacturing expanded in November, as the PMI^® registered 59.3 percent, an increase of 1.6 percentage points from the October reading of 57.7 percent. “This indicates growth in manufacturing for the 27th consecutive month, led by strong new orders, production output and continued slowing supplier delivery performance,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. (more)

Okay CTH, so take the business wonk-speak out of this – what does it mean?
Here’s the summary: Manufacturers are increasing new orders (making more stuff). Production outputs and employment within the manufacturing sector are still growing. Suppliers are still having a tough time filling material orders, but they are finding new and innovative ways to speed up shipments of raw material. However, despite the speed (increased efficiency in delivering the raw material), the backlog of requests is still growing (new orders exceed supply chain). Customer inventories are too low (hence the backlog for new stuff). Inflationary pressure still exists, but the rate of price growth is slowing (increased supplier efficiency). Manufacturing exports and imports are growing. The economy is expanding.
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National Economic Council Director Larry Kudlow discusses some of the key specifics within the dinner table conversation between President Trump and Chairman Xi.  [*note* at the very end of this briefing, Kudlow is asked about the German auto visit tomorrow]
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides behind the panda mask.  Additionally, while carrying out the objectives of the confrontation, Secretary Mnuchin, Secretary Ross, Ambassador Lighthizer and adviser Navarro are well aware of Beijing’s panda mask; POTUS Trump will never let them forget about it.

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With a full quarter of trade data to analyze the impacts, the Chinese tariff results are now measurable.  A multinational group studying the outcome (full pdf), identified that approximately 4.5% of the current tariff impact is being carried by American consumers.  The overwhelming cost of the tariff is being paid (20.5% absorbed) by Chinese producers.
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One of the less discussed aspects to President Trump’s economic cabinet is the careful selection of specific members who operate above the financial influence of ‘The Big Club’. Commerce Secretary Wilbur Ross and Treasury Secretary Steven Mnuchin are two key positions able to focus on economic nationalism without worrying about undue influence from the globalist lobbying pressure of Tom Donohue and the U.S. CoC.
The baseline of financial independence, and disconnect from self-interest, is unique in our lifetime; and allows the resulting execution of economic policy to focus, very deliberately, on America First objectives.  Secretary Mnuchin discusses the China confrontation:

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A lengthy interview (recently released) between Greta Van Susteren and President Donald Trump at the G20 summit in Argentina.  The topics include: the USMCA trade agreement; the conflict between Russia and Ukraine; overall global trade; issues within the global climate change economy; Brexit, China, the U.S. economy and immigration.
As most CTH readers are aware MAGAnomic policy, economic nationalism, is the largest focus of President Trump.  Beyond all other issues, this is the POTUS priority. Within this interview the president walks through the geopolitical issues and interests for the U.S. economy.  Well worth watching:

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