National Economic Council Chairman Larry “Kuddles” Kudlow is back after suffering a mild heart attack. [Yikes, “mild“, is there such a thing?]
Appearing on TV with Stuart Varney Chairman Kudlow explains how the administration hopes to use the Foreign Investment Risk Review Modernization Act (FIRRMA) to enhance U.S. trade policy.  Mr. Varney cannot comprehend Trump-speed in achieving a global trade reset:

.
While media wasn’t paying attention, President Trump brilliantly played congress to gain strategic trade leverage.  Knowing political opposition would unite, POTUS Trump took a forgiving position toward Chinese company ZTE; Trump-haters and NeverTrumpers quickly aligned to push through hammer legislation designed to hurt China and by extension Trump’s position.  However, Trump actually wanted the tool.  POTUS now weaponizes FIRRMA as trade leverage against all 301 targets.   Brilliant.
USTR Robert Lighthizer Final 301 Report on China Trade Infractions HERE
Part 2 of Kudlow interview below:
(more…)

Good news within a strenuously spun Reuters article. Don’t get lost looking at the granules; apparently all of the prior Canadian strategy against President Trump has failed.
For well over a year Justin from Canada and Foreign Minister Chrystia Freeland were confident they could leverage the U.S. Chamber of Commerce, purchased DC politicians and ideological allies against President Trump in NAFTA negotiations. The result? Fail, fail and more fail.

Running out of options, Canada now attempts to save their NAFTA construct by turning to the executives within the auto industry:

OTTAWA (Reuters) – Canada’s trade minister last week met senior officials from General Motors Co and Fiat Chrysler Automobiles NV in Detroit, as Ottawa takes its lobbying effort directly to the Big Three carmakers to avert potential U.S. auto tariffs.
The Liberal government is relying on industry partners to press Canada’s cause in the White House and elsewhere, using their influence to protect Canadian interests, sources with direct knowledge of the discussions told Reuters.

(more…)

Earlier today President Trump’s National Security Advisor John Bolton met with Russian officials including President Vladimir Putin. At the conclusion of their discussions Mr. Bolton held a brief press conference to answer questions.
We anticipate that tomorrow a joint U.S-Russia announcement for a summit to be held later this year.

(more…)

Ms. Stephanie Wilkinson, the owner of The Red Hen restaurant who kicked out White House Press Secretary Sarah Sanders – then followed her family into another restaurant to continue the harassment, has resigned from her role with Main Street Lexington, a local business organization.
As anticipated, Ms. Wilkinson was/is facing massive backlash from local Lexington, VA business leaders, and a very upset surrounding community, for her short-sighted political bigotry and rabid anti-Trump bias. Video Below:

LEXINGTON, Va. – Stephanie Wilkinson has resigned from her role with Main Street Lexington, a volunteer-based organization.  Elizabeth Outland Branner, the president of the organization, accepted Wilkinson’s resignation Tuesday morning.
“Considering the events of the past weekend, Stephanie felt it best that for the continued success of Main Street Lexington, she should step aside,” Branner wrote in an email.  (link)

(more…)

There is an article from Bloomberg which finally concedes the obvious economic and trade dynamic within a U.S. -vs- China confrontation.  The media paradigm shift is based on new statements from Chinese Ministers admitting they cannot win a trade confrontation with U.S. President Trump.
The summary reason is simple, we have discussed it frequently:
China is a production-based economic model, they do not have the ability, or wealth, to consume their own durable goods production; they rely on exports.
The U.S. is a more balanced economy; we consume 80% of our own production.  We are self-sustaining, China is not.
Without a market to sell their products, the Chinese economy cannot survive.
Conversely, China has focused so intensely on durable-goods manufacturing, their consumable goods market (food) is dependent; they cannot feed themselves.  The U.S. can survive without exporting food, China cannot survive without importing food.  The U.S. economy can survive without importing durable goods; the Chinese economy cannot survive without exporting durable goods.  This is the unavoidable trade reality.  As a consequence President Trump has all the factual leverage.
In stunning, and carefully worded economic writings, Chinese academics and economic ministers are now talking about the inherent weakness of the Red Dragon policies:
(more…)

Immediately before lunch with members from congress, President Trump delivers remarks in response to the Supreme Court removing a challenge to the administration travel restrictions and vetting process. In a 5-4 decision the Supreme Court upheld the president’s authority to restrict travel from countries who are not compliant with U.S. vetting requirements.
UPDATED Video ADDED

(more…)

The Supreme Court has upheld President Trump travel restrictions and rejected the challenge to the Trump administration’s September 2017 travel ban. (full ruling pdf below). Response from the White House – Statement from the President Regarding Supreme Court Ruling:

Today’s Supreme Court ruling is a tremendous victory for the American People and the Constitution. The Supreme Court has upheld the clear authority of the President to defend the national security of the United States.
In this era of worldwide terrorism and extremist movements bent on harming innocent civilians, we must properly vet those coming into our country. This ruling is also a moment of profound vindication following months of hysterical commentary from the media and Democratic politicians who refuse to do what it takes to secure our border and our country.
As long as I am President, I will defend the sovereignty, safety, and security of the American People, and fight for an immigration system that serves the national interests of the United States and its citizens. Our country will always be safe, secure, and protected on my watch.  ~ President Donald Trump

(more…)

This has to be one of the single funniest French retorts in the history of commerce.  If President Trump follows through on auto tariffs, France will strike back.  Let that sink in.
Oh noes,… your next Peugeot, Citroen or Renault purchase might cost more.  D’oh.

PARIS (Reuters) – Europe will hit back if U.S. President Donald Trump follows through with a threat to slap import tariffs on European-made cars, France’s finance minister said on Monday. Trump escalated already burning trade tensions on Friday by threatening to hit all imports of cars assembled in the European Union (EU) with a 20 percent tariff.   (more)

The EU is the most protectionist trade bloc in the world.  The German auto-sector is the most protected trade sector inside the EU.  The hypocrisy is silly.
The EU, Germany specifically, needs access to the U.S. market to survive.  Angela Merkel has already conceded this point in the EU concessionary position to abandon all auto tariffs; in exchange for removal of Steel and Aluminum tariffs.
(more…)

Earlier today President Trump and First Lady Melania welcomed King Abdullah II bin Al-Hussein and Queen Rania Al Abdullah of Jordan back to the White House.  This is the second official visit of King Abdullah and Queen Raina.
In the background it is likely much of the executive conversation surrounds the current issues with Iran, the state of Syria, Israel and the Palestinian Authority as it pertains to regional stability overall and Jordan specifically.   In the quiet distance, and entirely overlooked by Western -mostly U.S. media, President Trump has been positioning the EU via economic leverage against Iranian influence.

.
[Transcript] PRESIDENT TRUMP: Thank you very much. It’s a great honor to have the King and Queen of Jordan with us. They’re friends. We’ve known each other now for quite a while. Long before this.
(more…)

Whoopsie – During a debriefing session between Canadian Foreign Minister Chrystia Freeland, Canadian politicians and business leaders, the chief NAFTA negotiator for Canada Steve Verheul accidentally told the group, while cameras were rolling, there were no actual NAFTA negotiations taking place.

When a seemingly shocked participant then asked a follow-up question about how could Steve Verheul reconcile that admission against earlier statements about an upcoming  Memo of Understanding (MOU), Ms. Freeland quickly shut down the discussion -in french- until the cameras left the meeting.  [Watch Video Segment Here]

Council Question: “Do you still meet your counterparts? Do you still have committees that are working?  What is the status of the negotiations?
Steve Verheul: “We don’t have any active negotiations. I haven’t talked to them in a little while.”
Council Question: “Since, …since?”
Steve Verheul: “Two or three weeks. Um, I’ll have the odd conversation, but no real engagement, no real negotiation session.”
Council Question: “And when we hear that you were close to a kind of MOU [Memo of Understanding] what was the basis of that?”
Chrystia Freeland: awkward interruption in French. (watch below)

What became evident within the exchange is the Canadian government trying to hide the lack of NAFTA progress from concerned citizens inside Canada.  In essence, the Canadian government is lying to their citizens about the possibility of a NAFTA agreement.
The Canadian economy contracting.  Last month the Canadian economy dropped 31,000 full-time jobs.  Amid an economy one-tenth the size of the U.S, that would be a comparative single-month job loss of 310,000 in the United States.
(more…)