President Trump Removes Steel and Aluminum Tariffs From Canada and Mexico….


A combination of the NAFTA “Fatal Flaw” & transnational Chinese shipments, was always at the heart of President Trump placing steel and aluminum tariffs on Canada and Mexico during negotiations that culminated in the USMCA trade agreement.  The goal was to block China from dumping product into the U.S. through the doors of Canada/Mexico.

Within the USMCA President Trump and Robert Lighthizer placed a specific rule Article 32:10 which grants the U.S. the right to veto (control) Canadian and Mexican purchase agreements with “Non FTA Market Countries”, ie. China.

This Article 32:10 rule is at the core of the USMCA agreement.   However, after the USMCA agreement was reached President Trump kept the Steel/Aluminum tariffs in place.  For those who don’t understand Trump (insert Chrystia Freeland here) the question was always: why?

Quite simply the answer behind the question was President Trump’s retention of leverage. Yes, in 2018 the USMCA was agreed to; however, the USMCA was not ratified by either Canada or Mexico…. it was only an agreement.  Why would Trump remove critical leverage on an initial promise.

Trump is not a politician; he’s a businessman who knows promises are paper until they become action. Additionally, President Trump is a tactician; the tariff leverage was held until such a time as removing it would generate an immediate gain in national compliance toward his trade objective… That’s the action.  Today:

(Bloomberg) President Donald Trump said the U.S. will lift steel and aluminum tariffs on Canada and Mexico, boosting efforts to encourage lawmakers to ratify a new North American trade deal.

“I’m pleased to announce that we’ve just reached an agreement with Canada and Mexico and will be selling our product into those countries without the imposition of tariffs or major tariffs,” Trump said at an event Friday. “Hopefully Congress will approve the USMCA quickly.”

In a joint statement Friday, Canada said it will lift retaliatory duties on U.S. products as part of the deal, which will take effect within two days. Mexican Deputy Foreign Minister Jesus Seade, in a Twitter post, welcomed Trump’s removal of the duties. Both nations suggested it would open the way for their lawmakers to approve the new trade pact.

The move will lift the 25% steel and 10% aluminum tariffs the U.S. placed on the two trading neighbors almost a year ago in the name of national security. The decision sparked tit-for-tat duties from Canada and Mexico on U.S. farming goods and other products, and became an obstacle for lawmakers in all three nations to ratifying the U.S.-Mexico-Canada Agreement.

As part of the agreement, the U.S. will be able to re-impose the tariffs on metals imports if not enough is done to prevent any surge of metals imports beyond historical levels. The nations have also agreed to ramp up efforts to trace where the metals have come from originally, to stop the diversion of shipments from other nations to dodge tariffs.

The enforcement system will aim to advantage primary steel and aluminum producers in the three-nation trading bloc to ensure that the metal is melted, poured or smelted regionally. (read more)

President Trump is strategic.  The timing is perfect as the U.S. has shown the world the administration’s response to China is unrelenting.  As a result of Beijing failing to uphold their end of the prior agreement between Vice-Premier Liu He and USTR Robert Lighthizer, the negotiations with China have stopped.

The consequence of China failing to reach a free, fair and reciprocal trade agreement with the U.S., with strong enforcement mechanisms, means that China remains a “non market-based economy”.  Tariffs against China now increase, and both Canada and Mexico are specifically accountable under the USMCA to retain the U.S. market position toward Chinese goods.

In essence, if Mexico or Canada violates USMCA Article 32:10, they will suffer similar consequences as currently visible toward China.  The U.S. will enforce all the regulatory and compliance verification to ensure that Canada and Mexico do not engage in transnational shipments of Chinese products.  That is the “enforcement system” that both nations will adhere to enjoy the benefits of steel/aluminum tariff removal.

Mark Knoller

@markknoller

The resulting trade dynamic, an inherent lopsided benefit to the U.S, is genuinely brilliant as executed by Trump’s team.  Notice who wins.

President Trump and Secretary Wilbur Ross created the tariffs out of thin air. Yes, they simply created killer trade leverage…  Now, two years later, in exchange, for removing a punishing trade restriction that (A) previously didn’t exist; and (B) was crushing both economies; Canada and Mexico remove all countervailing duties which further opens their markets to U.S. goods…. and, simultaneously, agree to the terms which were at the core of the original demands, intents and purposes of President Trump.

USTR Washington, DC –Today, the United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs for steel and aluminum imports from those countries and for the removal of all retaliatory tariffs imposed on American goods by those countries.  The agreement provides for aggressive monitoring and a mechanism to prevent surges in imports of steel and aluminum.

If surges in imports of specific steel and aluminum products occur, the United States may re-impose Section 232 tariffs on those products. Any retaliation by Canada and Mexico would then be limited to steel and aluminum products.

This agreement is great news for American farmers that have been subject to retaliatory tariffs from Canada and Mexico. At the same time, the Agreement will continue to protect America’s steel and aluminum industries.  (USTR)

Canada and Mexico can no longer broker themselves as back-doors to the U.S. market; and at any given time, if either nation flinches, a future administration can pull out Article 32:10, enforcement entirely in the control of the United States, and POOF insta-leverage.

Don’t forget President Trump’s entire purpose for eliminating NAFTA was to stop Canada and Mexico from exploiting their access to the U.S. market at our expense.  Initially both nations said they would never agree to terms that undercut their independent abilities.  Here we are two years later, and they have agreed to the exact terms that underlined the original foundation of Trump’s position.

President Trump, Secretary Ross and Ambassador Lighthizer took the entire North American business community on a scenic two-year tour deep inside the land of leverage.

Greatest economic President in modern history.

A businessman.

A Titan.

(LINK to Article 32 pdf)

…”Complicated business folks, …complicated business”….

Why Trump Will Win the US China Trade War—Stephen Moore


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Can China really hurt the US with its financial weapons in the US China trade war? Is the US in a “fantastic” position, as US President Donald Trump says? Is dumping US Treasury bonds really an option for the Chinese? And how does all this impact the 2020 election? This is American Thought Leaders and I’m Jan Jekielek. Today we sit down with Heritage Foundation economist Steve Moore, who played a major role in the development of President Trump’s economic policy, and is co-author of the book, “Trumponomics: Inside the America First Plan to Revive Our Economy.” More on US China trade! See: US China Trade War: ’Trump is Not Going to Back Down… This is a War of Values’—Curtis Ellis: https://youtu.be/oSjlGNaWPbc

 

UK Intel: On Second Thought Maybe “Huawei is a Risk to Britain”…


Funny how that happens. Less than 24 hours after President Trump declared new tech telecommunication is a national security issue; and one day after Secretary Wilbur Ross bans Huawei (and affiliates) from buying parts and components from U.S. companies without U.S. government approval; all of a sudden the UK is having second thoughts.

…Huh, go figure:

LONDON (Reuters) – China’s Huawei poses such a grave security risk to the United Kingdom that the government must not allow it to have even a limited role in building 5G networks, a former head of Britain’s MI6 foreign spy service said on Thursday.

In what some have compared to the Cold War arms race, the United States is worried that 5G dominance would give any global competitor such as China an advantage Washington is not ready to accept.

The Trump administration, which hit Huawei with severe sanctions on Wednesday, has told allies not to use its technology because of fears it could be a vehicle for Chinese spying. Huawei has repeatedly denied this.

But British ministers have discussed allowing Huawei a restricted role in building parts of its 5G network. The final decision has not yet been published. (read more)

Oh, and we are not naive enough to overlook the current status, and subsequent leverage,  of the executive declassification process which might well outline how the U.K. intelligence apparatus was aligned to defeat President Donald Trump in 2016.

…”Well, where we go yuan, we go all didn’t work out… now what”?

President Trump Releases 2018 Financial Disclosure…


President Donald Trump and First Lady Melania Trump release their 2018 financial disclosure forms.  Summary: They’re Rich….

Deep State – Former Trump Senior State Dept. Official Tells Beijing to Wait Until Trump is Removed…


A clear example of the Administrative State’s seditious alignment with global financial interests and DC indulgences.  This is the deep state at its deepest and most statist.

Mrs. Susan Thornton, the former acting assistant secretary of state in the Trump administration, tells her Beijing audience to stop negotiating until President Trump is removed from office in 2020.

(BEIJING) […] “I want to be optimistic,” said Thornton, whose 27-year career in Washington ended in July. “I tell all our foreign counterpartsthey should keep steady, keep their heads down and wait. [They should] try to not let anything change dramatically.”

“If this skeptical attitude towards talking diplomacy continues in this administration, you might have to wait till another administration,” Thornton said at an event held by National Committee of US-China relations and Shanghai’s American Chamber. (read more)

There was a prescient article written in Politico when Thornton announced her exit from the State Department.

POLITICO […] – Former Secretary of State Rex Tillerson pushed for Thornton to lead the state’s East Asia bureau during his tenure, but then-White House chief strategist Steve Bannon tried to block her advancement. Bannon claimed she was too soft on China, but her nomination moved forward after he was ousted from the White House. Sen. Marco Rubio (R-Fla.) also said he did not want her to be confirmed. Thornton did receive a confirmation hearing, but never a vote.  –link

This type of undermining of the president by a well known top diplomat is likely why the Chinese politburo rebuked the deal put together by USTR Robert Lighthizer and Chinese Vice-Primier Liu He.

Obviously President Trump’s opposition is confident they can remove him from office; and giving advice to the Chinese who are making long-term strategic decisions with that confidence in mind.

Again, just another example of the scale and scope of the challenges faced by President Trump as he attempts to negotiate strength for the U.S. economy, and is undermined by bureaucrats who make more personal wealth selling out our nation to foreign  governments.

There are trillions at stake; and former bureaucrats like Ms. Susan Thornton use their former positions to make millions at the trough even if that means advocating for the interests of a communist government.

Disappointing would be an understatement.

Those who have sold out our nation despise President Trump.

President Trump Delivers Immigration Reform Speech – White House, 2:30pm Livestream…


Today President Trump is delivering remarks from the White House on “Modernizing Our Immigration System for a Stronger America.” A new immigration proposal from President Donald Trump focuses on bolstering border security and rethinking the green card system.

The shift would favor people with high-level skills, degrees and job offers instead of relatives of those already in the country. The anticipated start time is 2:30pm EDT:

WH Livestream Link – Global News Livestream – Fox Business Livestream

CNN Reporter: Russia at War with US, but America Clueless


Published on May 15, 2019

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A new book by CNN national security reporter Jim Sciutto chronicles “The Shadow War” conducted by Russia against the USA. Active on land, and sea, in space and cyber, Vladimir Putin is already on a war-footing toward the United States. Will President Trump and the American public understand the roots of Russian hostility in time to save both countries? Discussion of foreign policy, domestic economics, culture, and more, happens daily among a devoted group of conservatives who are Members at BillWhittle.com. As one Member said, when he first logged into the Member-exclusive website, he felt he was home. Find your people today at https://BillWhittle.com/register/

President Trump and First Lady Melania Celebrate White House Historical Association Dinner…


This evening President Trump and First Lady Melania Trump host the 2019 White House Historical Society Association Dinner.

.

[Transcript] East Room – THE FIRST LADY: Good evening. Please, sit down. The President and I are delighted to be with you, all of you, this evening as we celebrate the incredible work of the White House Historical Association over this past year and prepare for our continued work to preserve and restore the People’s House in the years to come.

I want to recognize and thank members of the Association’s Board of Directors who have joined us this evening: President Stewart McLaurin, Chairman Fred Ryan, and Vice Chairman John Rogers. Your entire team has been incredible to work with, and that is a statement to your leadership and vision. I would also like to thank Secretary of Commerce Wilbur Ross and his wife Hilary for being here, and for your continued support.

The White House Historical Association has been a real partner with my office over the past two years, helping to fund, preserve, and promote the important history and timeless beauty of the White House.

Our family is grateful to live in this true symbol of our nation’s history, but we are even more honored to play a part in restoring and enhancing our country’s sacred landmark.

It is only with the support and commitment of Historical Association that we are able to continue the tradition of protecting this home, and I’m so grateful for the opportunity to work with all of you. I want to thank you all for being here tonight. This is an evening I look forward to each year.

And now, I would like to take a moment so President can say a few words. Thank you. (Applause.)

THE PRESIDENT: Thank you, sweetheart. Thank you, honey.

Thank you very much, Melania. She works so hard on these beautiful dinners, and she loves this house. You really do. You love this house. And we appreciate it.
And the First Lady and I are delighted to welcome all of you to our home this evening as we honor the extraordinary work of the White House Historical Association. Very special people. Very hardworking people, and people that work with love.

I want to join Melania in again thanking the members of the Association’s Board of Directors: President Stewart McLaurin, Chairman Fred Ryan, and Vice Chairman John Rogers. Thank you very much. Great job. You’ve done so much.

Thanks also to Secretary Wilbur Ross and his terrific wife and friend of ours, Hilary, a committed friend of this association. And Wilbur had a very big day today. You probably have read about it. It came out at about 6 o’clock in the evening. So, we’re surprised to see you here, Wilbur. You should be working right now, Wilbur — (laughter) — wherever you are.

The White House Historical Association works every day to honor, protect, and preserve the history of this priceless national landmark. Through your many publications and activities, you make the White House and its history accessible even when people who live far away from Washington want to see the White House but they can’t get to do it. They see it through you.

This year, I want to congratulate everyone who helped pioneer your brand new interactive app that shares the majesty of the White House with even more people. In particular, let me thank the Chair of the National Council of White House History, Teresa Carlson, for her incredible work on that project. Thank you very much. Where’s Teresa? Thank you. (Applause.) Thank you very much, Teresa.

Here in Washington, the White House Historical Association helps to conserve the beauty and the grandeur of this absolutely remarkable place. Last year, with the First Lady and her team, you completed the delicate and difficult work of restoring the Bellangé furniture. Incredible stuff, by the way. Good job. That is restored very beautifully — in the Blue Room, which dates back to President Monroe’s administration. And as you all know, that’s a long time ago.

You reupholstered the walls of the Red Room. And you helped manufacture the rug that today graces the Diplomatic Reception Room. It was designed by Melania, funded by the Association, and very importantly to all of us, it was made in America.
Every year, you also produce the White House Historical Association Christmas Ornament. This year, the design honors President Eisenhower — actually, a great President; people are starting to find that out — the first sitting President to fly in a helicopter — with an ornament that evokes the iconic image of Marine One.

Since President Eisenhower, the presidential helicopter has been constructed by Sikorsky, now a Lockheed Martin company. And guess who we have here from Lockheed Martin? We’re grateful to be joined tonight by Lockheed Martin’s Chairman and a friend of mine, President and CEO Marillyn Hewson. Marillyn, please. Thank you very much. (Applause.) Fantastic job. They make the greatest fighter jet in the world. And you got a problem if you’re the enemy, because you can’t see it. It’s stealth. They have a little problem with that. Right, Marillyn? It’s doing great, and you’re doing great. But you’ve been a great supporter, and I really thank you for that. We all thank you, Marillyn.

I’m also excited to announce that, yesterday, the Association generously agreed to fund the renovation of the curator’s storage area here at the White House. This will ensure that our nation’s historic treasures are properly safeguarded for future generations. So important. On behalf of the American people, thank you for that remarkable gift. Thank you all.

The walls of this very room reflect your continued work. The painting of President Theodore Roosevelt that usually hangs here is currently being conserved. It’s been temporarily replaced with the portrait of President John Quincy Adams.

On the other side of this building, a painting of another American President, Andrew Jackson — he was an exciting President, with one of the most exciting election runs ever. Maybe we beat it; I don’t know. But that’s the one they seem to talk about. Hangs behind my desk in the Oval Office. Beautiful painting.

There, it’s a constant reminder of a President who truly saw this home as the “People’s House” and saw himself as the People’s President.

“Old Hickory” constructed the North Portico, the face of this building. Today, it looks on to Lafayette Square, where an equestrian statue of Jackson — a really beautiful statue — is emblazoned with the words, “Our Federal Union, It Must Be Preserved.” He knew. Those words reflect both the true calling of your organization and all who serve here: We are preserving America’s heritage for all of the people. And this is a truly beautiful building. Truly beautiful building.

The story of the White House is the story of our country and the people who dreamed it, who built it, and who defended it every single day. They worked so hard and they defended it so well.

Every day, hundreds of patriotic Americans come to work here to secure our country’s future. Tonight, we express our tremendous gratitude to everyone who devotes their time, energy, and resources to protect our inheritance of the past.

Thank you for everything you’ve done to ensure this magnificent house will be enjoyed by all Americans for many, many years to come.

God bless you, and God bless America. And thank you being with us tonight. Thank you very much. Thank you. (Applause.)

[Transcript Link]

China’s Huawei, and 70 Affiliates, Placed on U.S. Trade Blacklist….


The overall strategery here is brilliant.  After two years of rope-a-dope…. Trump exits the corner for the championship rounds in the trade fight: First the body blow, China boxed-in with trade confrontation and consequences of retreat from agreement (Mnuchin and Lighthizer);… Then whammo, the roundhouse XO placing telecom under national securityreview (Navarro and Pillsbury); then upper-cut, Wilburine places Hauwei and affiliates on Commerce Dept. trade blacklist…  Lions and Killers and Strategists, oh my.

WASHINGTON/NEW YORK (Reuters) – The U.S. Commerce Department said on Wednesday it is adding Huawei Technologies Co Ltd and 70 affiliates to its so-called “Entity List” – a move that bans the telecom giant from buying parts and components from U.S. companies without U.S. government approval.

U.S. officials told Reuters the decision would also make it difficult if not impossible for Huawei, the largest telecommunications equipment producer in the world, to sell some products because of its reliance on U.S. suppliers.

Under the order that will take effect in the coming days, Huawei will need a U.S. government license to buy American technology. Huawei did not immediately comment.

Commerce Secretary Wilbur Ross said in a statement President Donald Trump backed the decision that will “prevent American technology from being used by foreign owned entities in ways that potentially undermine U.S. national security or foreign policy interests.”

The dramatic move comes as the Trump administration has aggressively lobbied other countries not to use Huawei equipment in next-generation 5G networks and comes just days after the Trump administration imposed new tariffs on Chinese goods amid an escalating trade war.  (read more)

There is simply no-way these step-by-step actions were not done without a massive amount of long-term planning and forethought.  Planning that had to be happening well before President Trump’s November 2017 ‘golden ticket‘ tour of Asia.  Well before….

(Reuters) […] Washington has also turned up the heat on other fronts, from targeting China’s tech firms such as Huawei and ZTE to sending warships through the strategic Taiwan Strait.

As the pressure mounts, Chinese leaders are pressing ahead to seal a deal and avoid a drawn-out trade war that risks stalling China’s long-term economic development, according to people familiar with their thinking.

But Beijing is mindful of a possible nationalistic backlash if it is seen as conceding too much to Washington.

Agreeing to U.S. demands to end subsidies and tax breaks for state-owned firms and strategic sectors would also overturn China’s state-led economic model and weaken the Communist Party’s grip on the economy, they said.

Trade analysts say China could reward other global companies at the expense of U.S. firms, replacing for example Boeing planes with Airbus jets where possible.

But there is considerable risk for China in transitioning its retaliation from tariffs to non-tariffs barriers on U.S. companies because doing so would intensify perceptions of an uneven playing field in China and incentivise some firms to shift sourcing or investment outside the country, they say.

Trump has called for U.S. firms to move production back to the United States.

“The medium- to long-term ramifications on supply chains are being deeply underestimated. I would be severely concerned if I was China,” Robert Lawrence, a nonresident senior fellow at the Peterson Institute for International Economics, recently told journalists in Beijing, where a group from the think-tank met with senior Chinese officials. (more)

President Trump Declares National Emergency For Information and Communication Technology…


Here we go….  President Trump is laying the groundwork to ban telecommunication companies based on identified risk to national security (ie. Huawei).  Nations who engage in 5-G technology agreements are on notice they may be cut-off from communication partnerships with the U.S.A.

[I think Wall Street just pee’d their pants a little..]

[Executive Order] By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code,

I, DONALD J. TRUMP, President of the United States of America, find that foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services, which store and communicate vast amounts of sensitive information, facilitate the digital economy, and support critical infrastructure and vital emergency services, in order to commit malicious cyber-enabled actions, including economic and industrial espionage against the United States and its people.

I further find that the unrestricted acquisition or use in the United States of information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries augments the ability of foreign adversaries to create and exploit vulnerabilities in information and communications technology or services, with potentially catastrophic effects, and thereby constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.

This threat exists both in the case of individual acquisitions or uses of such technology or services, and when acquisitions or uses of such technologies are considered as a class.

Although maintaining an open investment climate in information and communications technology, and in the United States economy more generally, is important for the overall growth and prosperity of the United States, such openness must be balanced by the need to protect our country against critical national security threats.

To deal with this threat, additional steps are required to protect the security, integrity, and reliability of information and communications technology and services provided and used in the United States. In light of these findings, I hereby declare a national emergencywith respect to this threat.

Accordingly, it is hereby ordered as follows:

Section 1. Implementation.

(a) The following actions are prohibited: any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction) by any person, or with respect to any property, subject to the jurisdiction of the United States, where the transaction involves any property in which any foreign country or a national thereof has any interest (including through an interest in a contract for the provision of the technology or service), where the transaction was initiated, is pending, or will be completed after the date of this order, and where the Secretary of Commerce (Secretary), in consultation with the Secretary of the Treasury, the Secretary of State, the Secretary of Defense, the Attorney General, the Secretary of Homeland Security, the United States Trade Representative, the Director of National Intelligence, the Administrator of General Services, the Chairman of the Federal Communications Commission, and, as appropriate, the heads of other executive departments and agencies (agencies), has determined that:

(i) the transaction involves information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; and

(ii) the transaction:

(A) poses an undue risk of sabotage to or subversion of the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of information and communications technology or services in the United States;

(B) poses an undue risk of catastrophic effects on the security or resiliency of United States critical infrastructure or the digital economy of the United States; or

(C) otherwise poses an unacceptable risk to the national security of the United States or the security and safety of United States persons.

(b) The Secretary, in consultation with the heads of other agencies as appropriate, may at the Secretary’s discretion design or negotiate measures to mitigate concerns identified under section 1(a) of this order. Such measures may serve as a precondition to the approval of a transaction or of a class of transactions that would otherwise be prohibited pursuant to this order.

(c) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order.

Sec. 2. Authorities.

(a) The Secretary, in consultation with, or upon referral of a particular transaction from, the heads of other agencies as appropriate, is hereby authorized to take such actions, including directing the timing and manner of the cessation of transactions prohibited pursuant to section 1 of this order, adopting appropriate rules and regulations, and employing all other powers granted to the President by IEEPA, as may be necessary to implement this order. All agencies of the United States Government are directed to take all appropriate measures within their authority to carry out the provisions of this order.

(b) Rules and regulations issued pursuant to this order may, among other things, determine that particular countries or persons are foreign adversaries for the purposes of this order; identify persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries for the purposes of this order; identify particular technologies or countries with respect to which transactions involving information and communications technology or services warrant particular scrutiny under the provisions of this order; establish procedures to license transactions otherwise prohibited pursuant to this order; establish criteria, consistent with section 1 of this order, by which particular technologies or particular participants in the market for information and communications technology or services may be recognized as categorically included in or as categorically excluded from the prohibitions established by this order; and identify a mechanism and relevant factors for the negotiation of agreements to mitigate concerns raised in connection with subsection 1(a) of this order. Within 150 days of the date of this order, the Secretary, in consultation with the Secretary of the Treasury, Secretary of State, the Secretary of Defense, the Attorney General, the Secretary of Homeland Security, the United States Trade Representative, the Director of National Intelligence, the Administrator of General Services, the Chairman of the Federal Communications Commission and, as appropriate, the heads of other agencies, shall publish rules or regulations implementing the authorities delegated to the Secretary by this order.

(c) The Secretary may, consistent with applicable law, redelegate any of the authorities conferred on the Secretary pursuant to this section within the Department of Commerce.

Sec. 3. Definitions. For purposes of this order:

(a)the term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

(b)the term “foreign adversary” means any foreign government or foreign non-government person engaged in a long‑term pattern or serious instances of conduct significantly adverse to the national security of the United States or security and safety of United States persons;

(c)the term “information and communications technology or services” means any hardware, software, or other product or service primarily intended to fulfill or enable the function of information or data processing, storage, retrieval, or communication by electronic means, including transmission, storage, and display;

(d)the term “person” means an individual or entity; and

(e)the term “United States person” means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.

Sec. 4. Recurring and Final Reports to the Congress. The Secretary, in consultation with the Secretary of State, is hereby authorized to submit recurring and final reports to the Congress on the national emergency declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).

Sec. 5. Assessments and Reports.

(a) The Director of National Intelligence shall continue to assess threats to the United States and its people from information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary. The Director of National Intelligence shall produce periodic written assessments of these threats in consultation with the heads of relevant agencies, and shall provide these assessments to the President, the Secretary for the Secretary’s use in connection with his responsibilities pursuant to this order, and the heads of other agencies as appropriate. An initial assessment shall be completed within 40 days of the date of this order, and further assessments shall be completed at least annually, and shall include analysis of:

(i) threats enabled by information and communications technologies or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary; and

(ii) threats to the United States Government, United States critical infrastructure, and United States entities from information and communications technologies or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the influence of a foreign adversary.

(b)The Secretary of Homeland Security shall continue to assess and identify entities, hardware, software, and services that present vulnerabilities in the United States and that pose the greatest potential consequences to the national security of the United States.The Secretary of Homeland Security, in coordination with sector-specific agencies and coordinating councils as appropriate, shall produce a written assessment within 80 days of the date of this order, and annually thereafter.This assessment shall include an evaluation of hardware, software, or services that are relied upon by multiple information and communications technology or service providers, including the communication services relied upon by critical infrastructure entities identified pursuant to section 9 of Executive Order 13636 of February 12, 2013 (Improving Critical Infrastructure Cybersecurity).

(c) Within 1 year of the date of this order, and annually thereafter, the Secretary, in consultation as appropriate with the Secretary of the Treasury, the Secretary of Homeland Security, Secretary of State, the Secretary of Defense, the Attorney General, the United States Trade Representative, the Director of National Intelligence, and the Chairman of the Federal Communications Commission, shall assess and report to the President whether the actions taken by the Secretary pursuant to this order are sufficient and continue to be necessary to mitigate the risks identified in, and pursuant to, this order.

Sec. 6. General Provisions.

(a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

DONALD J. TRUMP

THE WHITE HOUSE,May 15, 2019.