Representative Jim Jordan delivers poignant remarks and introduces HPSCI Chairman Devin Nunes to receive the 2018 Keeper of the Flame Award.

…When you plant your trees in another man’s orchard, don’t be surprised when you pay for your own apples…

President Trump has instructed U.S. Trade Representative Robert Lighthizer to execute Round Two of tariffs on Chinese imports. The first round applied to $50 billion in products. The current round applies a 10% tariff to $200 billion (effective Sept. 24, 2018), until January 1st, 2019, when the tariff increases to 25%.

The list of products is particularly focused, and happily we note it includes almost all Chinese processed food imports.

Chinese food processing is sketchy, and China has refused to comply with most international food safety programs. However, President Trump spared smart watches from Apple and Fitbit and other consumer products such as bicycle helmets and baby car seats.

In a statement announcing the Round-Two tariffs, President Trump warned China if they take retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”  That would hit Apple and all consumer good imports. Here’s the announcement and the list of products:

Washington, DC – As part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology, the Office of the United States Trade Representative (USTR) today released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs.

In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10 percent. Starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.

The list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced on July 10, 2018.

[…] In March 2018, USTR released the findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden or restrict U.S. commerce.

Specifically, the Section 301 investigation revealed:

• China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.
• China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.
• China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.
• China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.

After separate notice and comment proceedings, in June and August USTR released two lists of Chinese imports, with a combined annual trade value of approximately $50 billion, with the goal of obtaining the elimination of China’s harmful acts, policies and practices.

Unfortunately, China has been unwilling to change its policies involving the unfair acquisition of U.S. technology and intellectual property. Instead, China responded to the United States’ tariff action by taking further steps to harm U.S. workers and businesses. In these circumstances, the President has directed the U.S. Trade Representative to increase the level of trade covered by the additional duties in order to obtain elimination of China’s unfair policies. The Administration will continue to encourage China to allow for fair trade with the United States.

A formal notice of the $200 billion tariff action will be published shortly in the Federal Register.  (read more)

A pdf list of the Round #2 impacted products is Available HERE.

Earlier today President Trump hosted a meeting with the key administration officials executing the workforce initiatives programs.  The programs include expanded vocational training, private-public partnerships for education, and expanded investment in skills training for a modern American workforce.

The National Council for the American Worker is the executive agency tasked with execution of the policies and working with various state and local officials to help increase the skills training for U.S. workers.  With a MAGAnomic expanding economy; and with all of the subsequent jobs growth; and with a revitalization of U.S. manufacturing; the workforce initiatives are keys to sustaining successful growth for American workers.

Following opening remarks during a jobs and workforce initiatives meeting: White House National Council for the American Worker [full video of that meeting coming later], President Trump made some announcements on trade, and answered some questions from the media.

The questions surrounding Supreme Court nominee Brett Kavanaugh begin at 05:25:

White House National Economic Council Chairman Larry Kudlow was the keynote speaker today at the New York Economic Club.  Mr. Kudlow delivered a speech on the basics of the MAGAnomic agenda and results so far.

The entire event, including speech and Q&A, is slightly more than an hour long.  Here’s an excerpt, the entire event is available below:

.

Full event with Kudlow below.

.

A year ago it seemed almost impossible to see a trade agreement with Mexico that would facilitate the interests of both countries. However, with the successful election of Mexican President Andrés Manuel López Obrador (AMLO), a remarkable populist shift dramatically changed the landscape within the Mexican economic outlook and policy.

President Trump’s tweet today hints toward a much bigger picture we have recently been discussing.  Against the likelihood Canada will not join the U.S-Mexico trade agreement. The Mexican government is affirming their intent to go forward with a bilateral trade deal if needed because the U.S-Mexico joint agreement is in their best interests.  According to Mexico’s Chief Negotiator, Kenneth Smith-Ramos:

“We hope the U.S. and Canada will conclude their bilateral negotiation shortly. If that is not possible we are ready to advance bilaterally with the U.S … the agreement in principle that we closed with the U.S. is positive for Mexico because it preserves free trade and modernizes our trade agreement …”

Outgoing Mexican President Peña Nieto, structured his economic policy around accepting multinational corporate investment, facilitating the requests of Wall Street investment banks, and the predictable parasitic outcomes that follow. Exfiltration of wealth and exploitation of resources/labor are an outcropping of predatory multinational trade exploitation, ie. “globalism”.

Retention of the multinational schemes generally leads to massive corruption. In the U.S. this corruption is known as “lobbying”, in Mexico the process is called ‘bribery’; however, the activity is the same.

The incoming Mexican President, Lopez-Obrador (AMLO), is more of an economic nationalist; and quite remarkably his economic outlook, at least as his team has described the objectives so far, is quite Trumpian.

You might even say: “Make Mexico Great Again”.

Both U.S. President Trump and Mexican President-elect AMLO have similar outlooks toward predatory multinational corporations and economic exploitation. If you think about how Mexico was used by the multinationals in the past twenty years; and then think about a very real possibility of a U.S President and Mexican President having an economic friendship; well,… holy cats, those multinationals could be remarkably nervous right now.

AMLO supports labor and has an actual agenda to create a strong working-class or middle-class.  The wealth disparity within Mexico has always been a foundational issue that has led to a tremendous amount of corruption.

Similarly, President Trump supports labor.  Likely because of his positive relationships with labor unions as a private sector builder, Trump was the only republican candidate who advanced pragmatic opinion toward organized labor in 2015, 2016 and, as president, in White House meetings where he invited labor officials.  President Trump’s economic agenda is laser focused on a strong middle-class.

AMLO views Wall Street multinationals as predatory by disposition; Mexico has suffered from industrial exploitation, especially in the agriculture sector.  President Trump also views those same multinationals as tending toward predatory behavior, and he has targeted many specific corporations for attention due to their participation in the erosion of the American middle-class and the U.S. manufacturing base.

AMLO is a strong Mexican Nationalist. President Trump is a strong American Nationalist. Within almost all of President Trump’s foreign policy speeches on economics, he openly accepts that all nations should make decisions based on their individual and nationalistic needs.  Trump does not see economic nationalism as adversarial; he points out that trade agreements based on both interests are entirely possible, and actually easy to construct.

As long as AMLO stays away from the authoritarian tendencies of power, ie. government ownership of private industry – and the slippery slope of soft-Marxism, surprisingly he and President Trump are likely to have a great deal more in common than most would think. Both populists; both nationalists; both rebuke the elitist trappings of globalism and intend on executing economic policies for the majority of their citizens.

Because they have more in common on the economics of policy, this explains why the framework of the U.S-Mexico trade agreement between Robert Lighthizer (representing Trump) and Jesus Seade (representing AMLO) was possible to construct.

Lighthizer and Seade held long meetings after formal U.S-Mexico daily negotiations, and together this relationship appears to have been very important in how the deal framework was structured. Right now both teams are filling in the details based on common objectives.

With AMLO and President Trump, Mexico and the U.S. have joint-interests in an economic trade bloc. It is actually quite stunning when you think about the economic power that both nations can hold if their mutual and individual interests remain at the forefront.

President Trump and President Lopez-Obrador have common objectives; and with the economic approach outlined by AMLO toward using Mexico’s energy resources as leverage for expanded investment, the U.S. is well positioned to help.  Mexico needs independent collateral to break the cycle of dependency on overseas money (investment).  Mexico needs policies and partners that can make Mexico, and the Mexican people, independently wealthy.   Guess who the bestest partner would be?  Yup, President Trump.

President Trump is well positioned to assist Mexico via a united trade bloc with expanded cross-border investment for economic development.

AMLO wants a higher standard of living for Mexican workers; President Trump wants greater parity between Mexican workers and their U.S. counterparts. Heck, it was U.S. Commerce Secretary Wilbur Ross and USTR Robert Lighthizer who first proposed raising the Mexican minimum wage. Now both countries have agreed to an incremental Mexican minimum wage aspect of $16/hr within the auto sector.

Combining the wage aspect with the content and origination agreement, this has become a win/win for both AMLO and President Trump. The multinationals within the auto-sector might not like it, but they’ve already put a massive amount of money into plant and manufacturing investment in their existing Mexican footprint. They have no choice.

In an generally overlooked outcome the nationalist interests of Mexico, specific to AMLO, are very close to alignment with the nationalist MAGA agenda of President Trump.

Unfortunately, Canada is the ‘globalist’ oddball in this tri-fecta; which makes a trilateral deal almost impossible, and explains why Mexico is so willing to sign a bilateral agreement.   The U.S. economy is expanding at an unprecedented rate, and Mexico prepares to surf the MAGAnomic tsunami known as Donald Trump.

President Trump can see that independent economic future for Mexico based on a partnership that protects the interests of both nations.  It certainly appears that AMLO can see the same vision.

Remarkable times.