Trade policy by temper tantrum. Who knew it could be so complicated?
I have a sinking feeling our long national nightmare is only still in its beginning stages. Canada might want to begin closing its borders now before the trickle north becomes a flood. Or start building the refugee dorms now.
It isn’t trade policy, it is deflection from the crimes Drump has committed and continues to commit. Just like his obstruction by pardon.
Incompetent or Stupid?
Maybe Both.
Trump and his band of Morans seem to lose sight of the fact thier little games have real world consequences.
There will be more like this when the farmers and manufacturers get hit
Kissing Large Airplane orders goodby and handing them to Airbus
Trump Sanctions Turn Iran Treasures Into Fool’s Gold
U.S. actions since announcing it would pull out of the Iran nuclear agreement suggest that the Trump administration will take a hard-line approach in reimplementing sanctions, including those targeting commercial aviation.
“Sanctions are back in place today with a 90-day and 180-day wind-down period for different components,” U.S. Secretary of State Mike Pompeo told lawmakers May 23, responding to a question about whether the U.S. is prepared to impose sanctions against all of its allies.
The U.S. stance means the gold rush to sell Iran much-needed aircraft—some analysts project the country’s airlines, which operate about 250 aircraft, could absorb as many as 500 new airframes in the next decade or so—has been blocked, at least for Boeing. The U.S. manufacturer received a license for its Iran Air deal but did not include any of its Iran-destined commitments in its backlog. None will be delivered unless the U.S. changes its policy.
The U.S. on May 8 said it was dropping out of the Joint Comprehensive Plan of Action (JCPOA)—a three-year-old deal between Iran and China, the European Union, France, Germany, the Russian Federation, the UK and the U.S. At its core is the lifting of specific sanctions against Iran linked to civilian trade and finance. In exchange, Iran’s nuclear program development would comply with certain restrictions. The JCPOA, which went into force on Jan. 16, 2016, removed thousands of restricted persons and entities from sanctions lists maintained by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC). Among the entities removed was Iran Air.
Good grief, the United States is the most powerful nation on earth. Yet, just like themselves, POtuS and Vice POtUS, act like it’s being victimized by everyone else.
Too bad this was done by phone so Vice POtuS couldn’t put on his distainful sneer and walk out.
Trudeau is sending the U.S. a very clear message: Fuck you!
As well he should.
The unfortunate thing is that the US does have a strong hand here. Trade with us represents a much larger share of Canada’s or Mexico’s total economy than trade with both of them together does of ours. But in the past, this asymmetry was used to exert subtle political influence. Push them to the wall on trade–that is, make it so, at the margin, they are indifferent between trading with us or with someone else–and you lose that influence. (Albert Hirschman’s first book was on this, and it’s the basis of sanctions policy.)
Evidently Trump is very focused (as in, he believes it would get him a Nobel Peace Prize) on a Korea deal. So focused that he would rather alienate allies than China. So focused, however, that is obvious to the North Koreans, who will exploit his desire to get any deal (and then turn around and declare it the best ever), ultimately damaging the interests of the US and especially South Korea.
It’s a good thing that this upsets liberals. If it didn’t, all of the damage that it does would be terrible. But since liberals are upset, it’s a win!
This is The Dumpster’s sop negotiation process. Usually falls flat. When it does then in 3,2,1 come the negative comments. Was that way in the 90s when I was on the other side of the negotiation table.
Given Trump’s history, at what point should we expect him to bail, leaving everyone else holding the bag? I know it’s always right before the bankruptcy, but when precisely? I want to mark my calendar.
You can bet he will give away the store and still say the greatest ever. The North wants troops out, so you can bet they will be packing. The troops are the only reason the North has not invaded as they know the US will immediately be in 100 percent. Once out the North knows the US will hesitate to come back.
This breakdown happened in the midst of President Donald Trump’s
decision to levy stiff tariffs on steel and aluminum imports from a swathpetty, ignorant outbursts angering American [reluctant] allies including Canada and Mexico, provoking likely retaliation and a possible all-out trade war.
There. Fixed.
We have already seen evidence with China’s actions that the world is ready to target local economies in areas that supported the Trump/Pence ticket. And now, Republican politicians are lining up behind the November message of making economic realities nightmarish with a jingoistic furor to expel immigrants who do the agricultural work no one else will do.
This could well be the standard Trump approach since around 1990—do everything with maximal impulsivity and self-destructive mindless aggression. Plenty of evidence for that one. But it fits so perfectly with Russia’s aims of scrambling the Western alliance system that you can’t dismiss that possibility either, with what we know. It could be both. Or just the latter. But hey, it’s almost the weekend, right?
What will the economic effect be?
Canada, Mexico and the EU together exported $23bn (ÂŁ17bn) worth of steel and aluminium to the US in 2017 - nearly half of the $48bn of total steel and aluminium imports last year.
European firms have said they fear lower US demand for foreign steel will divert shipments to Europe.
Analysts at IHS Markit expect the effects to be distributed across a wide range of markets, limiting the effect on steel prices outside the US.
That leaves America to bear the brunt of the economic impact, which economists say will appear in the form of higher prices and job losses - as many as 470,000 by one estimate.
Steel prices in the US have already risen due to the uncertainty and may increase as the tariffs hit imports.
Consumers outside the US could see prices of some goods fall, while those in America may end up paying more.
If it ain’t broke, don’t fix itbreak it.
Italy has lurched toward a government made from an uninformed brand of loudmouth xenophobic populism like the one simmering here. It seems that lobbing a few economic hand grenades is all the rage nowadays.
Yea! Weekend!
I don’t really understand the rationale behind this. Why would Pence care about a five-year sunset? Why is a five-year sunset “fair” and a 10-year (or whatever’s on the table) one not?
Five years does seem like an awfully short time for nations to come back to the negotiations table. Just from a logistics standpoint. Also, there’s the notion that these folks have been our neighbors and allies for centuries.
Those extra $9 per month I received from the tax overhaul are already gone. I burned it up at the gas pump thanks to the White House brain trusts.
And then there is this story, which is largely being ignored in the discussion of Trump’s new tariffs.
Industries have gotten fairly sophisticated since the implementation of NAFTA in how they build their supply chains. The Auto industry is a great example. In many ways its a North American Auto Industry, not a US Auto industry, with various parts being built in all three countries. Start messing with things like steel and aluminum, and that whole supply chain blows up, resulting in large job losses. Which is why Wall Street is freaking out once again.
But of course, as the article above shows, its not even about that…its all about Trump servicing his Russian Oligarch masters.
The fart of the deal.