Canada is vowing to retaliate against the U.S. if President Trump subjects NAFTA partners to the same tariffs as other trade nations and eliminates the NAFTA loophole. {Go Deep}

The NAFTA Loophole allows Canada and Mexico to broker independent trade deals with Asian and European companies; then use their Mexican and Canadian access to the U.S. market as a backdoor around U.S. Tariffs.

This loophole has been exceptionally rewarding for both Canada and Mexico and for more than a decade they have structured their economies around loophole retention. U.S. corporations, seeing advantages from cheap Asian parts in Mexico and Canada, have moved some manufacturing there to take advantage.  In an effort to reset the trade imbalance created by the loophole President Trump is threatening to close it.

OTTAWA (Reuters) – Canada will “respond appropriately” to any U.S. steel and aluminum tariffs, Foreign Minister Chrystia Freeland said on Wednesday, less than two days before the punitive measures are due to kick in.

“The government is absolutely prepared to – and will defend – Canadian industries and Canadian jobs. We will respond appropriately,” Freeland told reporters when asked about possible U.S. action.

Canadian government officials have said they are prepared to impose retaliatory tariffs should the Trump administration make a move but have not revealed what they have in mind.

Trump says the steel and aluminum tariffs would be imposed for security reasons, which Freeland said was “frankly absurd”. Canada has repeatedly rejected any suggestion it could be a threat to the United States.

Freeland spoke after returning from Washington, where she met U.S. Trade Representative Robert Lighthizer to discuss NAFTA. The negotiation “will take as long as it takes to get a good deal”, she said. (read more)

Foreign Minister Freeland will not allow Canada’s economic needs to be ignored:

Earlier today President Trump signed S. 204, the “Right to Try Act”. The legislation provides terminally ill patients with the right to try experimental medicine and medical procedures. Detail: authorizes certain patients to seek access to certain unapproved investigational drugs directly from a drug sponsor or manufacturer; limits the use of clinical outcomes and liability arising from the provision of such drugs; and provides reporting requirements for the use and outcomes of the new authority.

[Transcript] 12:31 P.M. EDT – THE PRESIDENT: Thank you very much, everybody. I really appreciate it. This is — to me, this is a very important moment, a very important day. Been looking forward to this for a long time, along with Senator Ron Johnson. And I will tell you, we worked hard on this. I never understood why it was hard.

They’ve been trying to have it passed for years. I never understood why. Because I’d see people — friends of mine, and other people I’d read about, where they’d travel all over the world looking for a cure. And we have the best medical people in the world, but we have trials and we long time — 12 years, 15 years. Even when things look really promising, so many years. And I never understood why they didn’t do this. And we worked very hard.

And I want to thank Vice President Pence for helping us so much. Mike was in there, and I’d say, “Mike, how we doing? We got to get it approved.” And he was — he was really working it. And in my State of the Union Address, four months ago, I called on Congress to pass Right to Try. It’s such a great name. Some bills, they don’t have a good name. (Laughter.) Okay? They really don’t. But this is such a great name, from the first day I heard it. It’s so perfect. Right to Try.

And a lot of that trying is going to be successful. I really believe that. I really believe it.

So we did it. And we went through the Senate, we went through the House. The House had a bill. The Senate had a bill. We’d go and mesh them together. We got to go back and take votes. And I said, do me a favor — tell me, which is the better bill for the people? Not for the insurance company, not for the pharmaceutical companies. I don’t care about them. I really don’t. I couldn’t care less. (Applause.)

And that’s the bill I — I won’t tell you which one. But I took the one that was — (laughter) — they said one in particular was great for the people. Not so good for the others, but great for the people. We don’t care about the others right now. And it’s giving terminally ill patients the right to try experimental lifesaving treatments. And some of these treatments are so promising.

And we’re moving that timeline way up anyway, beyond this. We’re moving it way up. But it’s still a process that takes years. Now it takes up to 15 years; even 20 years, some of these treatments are going. But for many years, patients, advocates, and lawmakers have fought for this fundamental freedom. And as I said, incredibly, they couldn’t get it. And there were reasons. A lot of it was business. A lot of it was pharmaceuticals. A lot of it was insurance. A lot of it was liability. I said, so you take care of that stuff. And that’s what we did.

Today I’m proud to keep another promise to the American people as I sign the Right to Try legislation into law. (Applause.)

Right? (Speaks to participant on stage.) You’re so beautiful. So beautiful.

If I looked like that, I would have been President 10 years earlier. (Laughter.) If I had that face, if I had that head of hair, I would have been President so long ago. (Laughter.) That’s great.

So I want to thank a couple of people. Secretary Azar is here. Where’s the Secretary? Secretary? Please stand up. You have worked so hard on this. (Applause.) Thank you very much. You’ve really done a great job. And we’re going to have another exciting news conference over the next, what, three weeks? Four weeks? Two weeks? What do you think? On healthcare. We’re going to have great healthcare. We’ll get rid of the individual mandate. Without that, we couldn’t be doing what we’re doing in a few weeks. We’re going to have great, inexpensive, but really good healthcare.

And we have two plans coming out. We also have, through our great Secretary of Labor, we have a great plan coming out, and that’s through associations. We’re going to have two plans coming out. For the most part, we will have gotten rid of a majority of Obamacare. Gotten tremendous — (applause) — yeah. Could have had it done a little bit easier, but somebody decided not to vote for it, so it’s one of those things.

I want to thank Secretary Azar, and I want to thank Commissioner Gottlieb. Where’s Scott? Scott, stand up. (Applause.) Ooh, I like those — I like those socks, Scott. And, Scott, let me ask you. So it takes years and years to get this approved, right? You’re bringing down — beyond this, you’re bringing down that period of time. What is the average time now it takes for, you know, a major medicine or cure? What’s the average time it takes to go through the system and get an approval?

COMMISSIONER GOTTLIEB: Depends on the medicine. Probably three to seven years.

THE PRESIDENT: Three to seven. And some go long over 10, right?

COMMISSIONER GOTTLIEB: Some can go much longer.

THE PRESIDENT: And you’re bringing that down? You’re trying to bring that down? You know, for safety. Very good. And you, in particular, you’re very happy with this. Aren’t you?

COMMISSIONER GOTTLIEB: We are.

THE PRESIDENT: You have a lot of good things in the wings that, frankly, if you moved them up, a lot of people would have a great shot. Right?

COMMISSIONER GOTTLIEB: We’re trying to get (inaudible), Mr. President, under your leadership.

THE PRESIDENT: Right. That’s fantastic. Well, thank you, Scott. We’re very proud of the job you’re doing.

We’re also working very hard in getting the cost of medicine down. And I think people are going to see, for the first time ever in this country, a major drop in the cost of prescription drugs. Right? (Applause.) And, Mr. Secretary, that’s already happening. Right? That’s already happening. You were telling me yesterday that we’re seeing a big — a tremendous improvement. And you’re going to have some big news. I think we’re going to have some big — some of the big drug companies in two weeks. And they’re going to announce — because of what we did, they’re going to announce voluntary massive drops in prices. So that’s great. That’s going to be a fantastic thing.

You know, we’re working on some really great things. Aren’t we? When you think about it. Ron, pretty good. Huh? We could do some of those — healthcare, drug prices. But this is the baby. Right now.

We would not be here today without the tireless efforts of dedicated members of Congress. That’s so true. I want to especially thank Senator Ron Johnson — stand up please, Ron — (applause) — for his tremendous leadership. You know, I just tell you, he doesn’t stop. He doesn’t give up. You know, it’s good. It’s good for all of us. This guy, Ron, very capable, very — he just doesn’t give up. So when we started working, I knew this was going to happen.

I also want to thank Senator Donnelly. Senator Donnelly, thank you very much. That’s really great. Appreciate it. Thank you. Thank you. (Applause.) A fantastic young gentleman, Brian Fitzpatrick of Pennsylvania. Brian, congratulations. And I know how hard you work, Brian. (Applause.) And Dr. Michael Burgess. Do you like being called “Doctor” or “Congressman”? I think “Doctor” is better. I like “Doctor.” (Laughs.) So we’ll call him Doctor. (Applause.) Thank you, Michael, very much. Great job. You worked — I know how hard everybody worked, and I really appreciate it. Everybody appreciates it. The country appreciates it. Because nobody understood why this wasn’t happening. You know, they’ve been talking about this for how long, Ron? Twenty-five years?

SENATOR JOHNSON: A long time.

THE PRESIDENT: A long time. A lot of talk. Politicians. It’s a lot of talk.

I also want to thank Energy and Commerce Committee Chairman Greg Walden, who’s not here. But he really worked hard with us. He really did. (Applause.) And thanks, as well, to state and local officials here today who fought for this important cause. They fought so hard, so many of them. I want to thank you for the incredible work that you’ve done on behalf of these and all wonderful Americans. I mean, anybody can be there someday. Anybody can be there. Could you all stand up — the state, local people that worked so hard on this? Because you really have been — thank you. Yep. Thank you, fellas. (Applause.) Couldn’t have done it without the state and local, and I appreciate it. Really great job. Thank you.

Most of all, we’re honored to be joined by several brave Americans for whom this bill is named. Matthew Bellina, who is battling ALS, and his incredible wife Caitlin. Matthew. Right? (Applause.) Thank you. Thank you. Laura McLinn and her son, Jordan, who is battling muscular dystrophy. Some good answers. (Applause.) That’s so great. Thanks. Thanks for being with us, Jordan. We’re going to have some good answers for you. (Laughter.) Matthew, you’re going to be happy. You are happy. Frank Mongiello, who’s battling ALS, and who’s joined by his wife, Marylin, and their six children. Wow. That’s fantastic. That’s fantastic. (Applause.) Thank you. Six children. And finally, I want to thank for being here and introduce Tim Wendler, who tragically lost his wife Trickett to ALS, and joined also by their three children. So, Tim, thank you very much. Thank you, Tim. (Applause.)

I want to thank you all for being here. You have extraordinary courage, determination, and love. You have love. Real love. And thanks to you, the countless American lives will ultimately be saved. We will be saving — I don’t even want to say thousands, because I think it’s going to be much more — thousands and thousands, hundreds of thousands. We’re going to be saving tremendous numbers of lives. And it’s so great that you’re up here with us and that we’re all on this front line together.

Each year, thousands of terminally ill patients suffer while waiting for new and experimental drugs to receive final FDA approval. It takes a long time, and the time is coming down. While we were streamlining and doing a lot of streamlining, the current FDA approval process can take, as Scott just said, many years — many, many years. And for countless patients, time, it’s not what they have. They don’t have an abundance of time.

With the Right to Try law I’m signing today, patients with life-threatening illnesses will finally have access to experimental treatments that could improve or even cure their conditions. These are experimental treatments and products that have shown great promise, and we weren’t able to use them before. Now we can use them. And oftentimes they’re going to be very successful. It’s an incredible thing.

The Right to Try also offers new hope for those who either don’t qualify for clinical trials or who have exhausted all available treatment options. There were no options, but now you have hope. You really have hope.

Matthew Bellina, who is here with us, is just one example of many Americans who today has new cause for hope. Due to the late progression of Matt’s ALS, he doesn’t qualify for any clinical trials in the United States. He wouldn’t qualify; couldn’t do it. They tried; he didn’t qualify.

Despite his limited mobility and budget, he was planning on traveling thousands of miles away, to Israel, to receive a treatment that is still awaiting FDA approval in America. No one in Matt’s position should ever have to travel from our great country to another continent or another country to receive a treatment.

Now, with the passage of this bill, Americans will be able to seek cures right here at home, close to their family and their loved ones. We are finally giving these wonderful Americans the right to try. So important. (Applause.)

America has always been a nation of fighters who never give up. Right? We never give up, ever. Right? Never give up. We’re fighters, like the amazing patients and families here today.

Now, as I proudly sign — and this is very personal for me. But as I proudly sign this bill, thousands of terminally ill Americans will finally have the help, the hope, and the fighting chance — and I think it’s going to be better than chance — that they will be cured, that they will be helped, that they’ll be able to be with their families for a long time or maybe just for a longer time. But we’re able to give them the absolute best, as to what we have at this current moment, at this current second. And now, we’re going to help a lot of people. We’re going to help a lot of people.

So it’s an honor to be signing this. And if I might, I think I’ll present — I think I have to do this, Ron. I have to present this good-looking guy with the first pen. Is that okay? You don’t mind, right? Okay, good. I’m going to do that. (Applause.)

(The bill is signed.) (Applause.)

So I want to thank — (laughter) — it’s going to be fantastic.

Thank you all very much. This, to me, is very exciting. And you’re going to see some tremendous results. We’re going to have some incredible, incredible results.

So thank you all for being here. And all of the people in the audience who have been so helpful, thank you very much. It’s going to be something very, very special. Thank you. (Applause.)

END

Buried in a Wall Street Journal article outlining their shock and horror over President Trump following through with a Phase-I trade penalty of $50 billion, you find the following quote from Captain Obvious at Cornell University:

“The Trump administration is clearly signaling, ahead of Wilbur Ross’s trip to Beijing, that the gloves are off given China’s unwillingness to agree to a trade deficit reduction target or to make broader trade concessions,” said Eswar Prasad, a Cornell University professor of international trade. In addition, the “hardline stance may partly reflect the perception that China played a part in nearly derailing the Trump-Kim summit.” (link)

Gee, ya think?

The White House announced today it will clarify by June 15 a final list of $50 billion in imports from China that would be subject to tariffs of 25%, with the duties implemented “shortly thereafter.”  Additionally, future investment restrictions aimed at preventing Chinese acquisition of American technology will be announced by June 30.

Statement from the White House:

♦ YEARS OF UNFAIR TRADE PRACTICES: China has consistently taken advantage of the American economy with practices that undermine fair and reciprocal trade.

For many years, China has pursued industrial policies and unfair trade practices—including dumping, discriminatory non-tariff barriers, forced technology transfer, over capacity, and industrial subsidies—that champion Chinese firms and make it impossible for many United States firms to compete on a level playing field.

• China’s industrial policies, such as its “Made in China 2025” plan, harm companies in the United States and around the world.
• China imposes much higher tariffs on United States exports than the United States imposes on China.
• China’s average tariff rate is nearly three times higher than the average United States rate.
• Certain products are even more imbalanced, for instance the United States charges a 2.5 percent tariff on Chinese cars, while China currently maintains a 25 percent tariff on cars from the United States.
• China has banned imports of United States agricultural products such as poultry, cutting off America’s ranchers and farmers from a major market for their goods.
• China has dumped and unfairly subsidized a range of goods for the United States market, undermining America’s domestic industry.

♦In 2018 alone, the Trump Administration has found dumping or unfair subsidies on 13 different products, including steel wheels, cold-drawn mechanical tubing, tool chests and cabinets, forged steel fittings, aluminum foil, rubber bands, cast iron soil pipe and fittings, and large diameter welded pipe.

♦In January 2018, the Trump Administration found that China’s overproduction of steel and aluminum, and the resulting impact on global markets, is a circumstance that threatens to impair America’s national security.

♦The United States has run a trade in goods deficit with China for years, including a $375 billion deficit in 2017 alone.

♦ UNDERMINING AMERICAN INNOVATION AND JOBS: China has aggressively sought to obtain technology from American companies and undermine American innovation and creativity.

• The cost of China’s intellectual property theft costs United States innovators billions of dollars a year, and China accounts for 87 percent of counterfeit goods seized coming into the United States.
• United States Trade Representative’s (USTR) Section 301 investigation identified four of China’s aggressive technology policies that put 44 million American technology jobs at risk:

•Forced technology transfer;
•Requiring licensing at less than economic value;
•Chinese state-directed acquisition of sensitive United States technology for strategic purposes; and
•Outright cyber theft.

• China uses foreign ownership restrictions, administrative review, and licensing processes to force or pressure technology transfers from American companies.
• China requires foreign companies that access their New Energy Vehicles market to transfer core technologies and disclose development and manufacturing technology.
• China imposes contractual restrictions on the licensing of intellectual property and technology by foreign firms into China, but does not put the same restrictions on contracts between two Chinese enterprises.
• China directs and facilitates investments in and acquisitions of United States companies to generate large-scale technology transfer.
• China conducts and supports cyber intrusions into United States computer networks to gain access to valuable business information so Chinese companies can copy products.

♦ STANDING UP TO CHINA’S UNFAIR TRADE PRACTICES: President Trump has taken long overdue action to finally address the source of the problem, China’s unfair trade practices that hurt America’s workers and our innovative industries.

• In January 2018, the President announced his decision to provide safeguard relief to United States manufacturers injured by surging imports of washing machines and solar products.
• This was the first use of Section 201 of the Trade Act of 1974 to impose tariffs in 16 years.
• These actions responded to injurious trade practices by China and other countries, including attempts to avoid legally imposed antidumping and countervailing duties.
• Following the decision, Whirlpool announced 200 new jobs in Ohio.
• USTR and the Department of Commerce are working together to defend the right of the United States to continue treating China as a non-market economy in antidumping investigations until China makes the reforms it agreed to when it joined the World Trade Organization (WTO).
• President Trump’s Administration has successfully litigated WTO disputes targeting unfair trade practices and upholding our right to enforce United States trade laws.
• In February 2018, USTR won a WTO compliance challenge against China’s unfair antidumping and countervailing duties on United States poultry exports and China announced the termination of those duties.

♦PROTECTING AMERICAN INNOVATION AND CREATIVITY: President Trump has worked to defend America’s intellectual property and proprietary technology from theft and other threats.

In August 2017, the Administration initiated a Section 301 investigation into China’s practices related to forced technology transfer, unfair licensing, and intellectual property policies.

After USTR completed its Section 301 report in March 2018, the President directed the agencies to explore numerous actions to protect domestic technology and intellectual property.

Under President Trump’s leadership:

• The United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the “Made in China 2025” program. The final list of covered imports will be announced by June 15, 2018.
• USTR will continue WTO dispute settlement against China originally initiated in March to address China’s discriminatory technology licensing requirements.
• The United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology. The list of restrictions and controls will be announced by June 30, 2018.

WH LINK

“Oh dear”..

“Check!”