Trump's Trade Proposals Range From The Ridiculous To The Impossible

[bostonangler]

Trump's Trade Proposals Range From The Ridiculous To The Impossible

John Brinkley ,  Contributor

 

After Casey Stengal became manager of the hapless New York Mets in 1962, he famously asked, “Can’t anyone here play this game?”

One could ask the same question about President Trump and his trade policies.

President Donald Trump smiles while speaking to a meeting of the National Governors Association, Monday, Feb. 27, 2017, at the White House in Washington. (AP Photo/Evan Vucci)

It remains to be seen whether he will propose anything sensible in that regard, but so far he hasn’t even come close.

Just in the last 10 days, he or administration officials have:

• Proposed changing the way exports are calculated so that the U.S. trade deficit will seem much larger than it is.

• Told the Canadian Prime Minister that he was okay with NAFTA as it applied to Canada; it was the dastardly Mexicans Trump had it in for.

• Said he would hold separate negotiations with Mexico and Canada on an agreement that they’re both a part of.

And this, the lollapalooza:

• Proposed putting language in future trade agreements to (A) allow the United States to withdraw from them in 30 days if the other party doesn’t fix some problem that the U.S. has identified, and (B) require a renegotiation anytime the U.S. runs a trade deficit with the partner country.

All these ideas are nonsensical, but the last one is downright loony. No other country, no matter how badly it wants access to the U.S. market, would agree to those terms. No other country would even start negotiations on an FTA with the United States without prior assurance that those demands would not be made.

Trump’s I-win-you-lose approach to deal-making may have served him well in commercial real estate and reality TV, but it wouldn’t work in bilateral trade negotiations. They’re about give-and-take; you want something from me, you have to give me something in return. If he thinks his negotiators can walk into the room, drop a draft FTA on the table and say take it or leave it, he’s in for an unpleasant surprise.

Trade negotiators can get up and walk out. And that is what Mexican Economic Secretary Ildefonso Guajardo said he would do if the United States tried to impose tariffs on Mexico in a renegotiation of NAFTA.

"The moment that they say, 'We're going to put a 20 percent tariff on cars,' I get up from the table," Guajardo told Bloomberg News.

Does that sound like an improvement over the status quo? Does it sound like fair and balanced trade?

If Trump doesn’t hire some grown-ups to manage his trade policy, and if pro-trade congressional Republicans don’t summon the courage to stand up to him, it will be code red for the U.S. and global economies.

I was speechwriter for U.S. Trade Representative Michael Froman and for Korean Ambasador Han Duk-soo during the Korean government's quest for ratification of the Korea-US Free Trade Agreement.

 

 

 

B/A

 

 

 

[Jaxinjersey]

All sounds great to me!  Why wouldn't the US attempt to leverage its position at the start of any negotiation?

B/A... would you please let us know where this came from, and who this genius contributor is?  Ugggh.

[BJinMontreal]

I couldn't read it - it came out two - three characters wide for what seemed miles and miles ...

[MyLadiesDaddy]

The only thing,"impossible", B/A is teaching you the reality of life. But in my 53 yrs I've learned that reality has a way of sneaking up on you and SLAPPING YOU IN THE FACE. 

[pattyangel]

I just don't understand how one man can be judged, be condemned before any of his plans take place.  Why won't the sour grape eaters just wait and see if President Trumps plans to do not work out before complaining, they do more damage to themselves, their character, and their party, if I was their constituents I would remove my vote from them, would be embarrassed of their childish, and ridiculous attitudes to have them represent me, Give the President a chance.   

[bostonangler]

15 hours ago, Jaxinjersey said:

All sounds great to me!  Why wouldn't the US attempt to leverage its position at the start of any negotiation?

B/A... would you please let us know where this came from, and who this genius contributor is?  Ugggh.

My bad... If came from a writer at Forbes website. You now Steve Forbes the ultimate conservative.

 

B/A

[bostonangler]

5 hours ago, ladyGrace'sDaddy said:

 I've learned that reality has a way of sneaking up on you and SLAPPING YOU IN THE FACE. 

I bet you have... And will again soon.

 

B/A

[MyLadiesDaddy]

8 hours ago, bostonangler said:

I bet you have... And will again soon.

 

B/A

Of that I've no doubt. But I always learn. 

[divemaster5734]

11 hours ago, pattyangel said:

I just don't understand how one man can be judged, be condemned before any of his plans take place.  Why won't the sour grape eaters just wait and see if President Trumps plans to do not work out before complaining, they do more damage to themselves, their character, and their party, if I was their constituents I would remove my vote from them, would be embarrassed of their childish, and ridiculous attitudes to have them represent me, Give the President a chance.   

I've started a list of RINO's like forbes who are just socialist dems in drag.

Will release the names of the offenders every election cycle.

It's not that Trump is such a genius, it's that he isn't afraid to call out the stupidity that's built into trade contracts just because some pantywaist politician was afraid of offending some hostile foreign delegation, think Kerry and Iran.

It's also amusing when non-conservatives declare anyone with an "R" is all the same, and then quotes an establishment toon as some sort of prophet.

Trump's policies will work, they are nothing new.

I have no doubt that when the economy turns around, the naysayers will have begun singing a new tune in order to get reelected.

If we keep records of who the traitors are, it will be easier to get rid of them when it's time.

I wish they would give him a chance too, but the problem with that is the whole narrrative they have so carefully manipulated will come crashing down around them.

[pattyangel]

1 hour ago, divemaster5734 said:

I've started a list of RINO's like forbes who are just socialist dems in drag.

Will release the names of the offenders every election cycle.

It's not that Trump is such a genius, it's that he isn't afraid to call out the stupidity that's built into trade contracts just because some pantywaist politician was afraid of offending some hostile foreign delegation, think Kerry and Iran.

It's also amusing when non-conservatives declare anyone with an "R" is all the same, and then quotes an establishment toon as some sort of prophet.

Trump's policies will work, they are nothing new.

I have no doubt that when the economy turns around, the naysayers will have begun singing a new tune in order to get reelected.

If we keep records of who the traitors are, it will be easier to get rid of them when it's time.

I wish they would give him a chance too, but the problem with that is the whole narrrative they have so carefully manipulated will come crashing down around them.

Trump is by the people, and for the people.  I agree with you in stating that his policies will work.   

The attitude that the leftist have is "control" they ignore the peoples wishes, anything that goes against their agenda for control, they will act childish, influence the media  Their agenda is against its people, but some are to ignorant to see, because they have been control by their deceitful leaders for so long.

They have under-minded the principles of a free society. 

They are plenty of traitors out there that we need to be aware of.  Looking forward to your list. 

[yota691]

Trump Bump: Which Companies Were in Focus During the President's Speech to Congress?

March 01, 2017, 07:14:00 PM EDT By Benjamin Rains, Zacks.com

 

 

•  
•  
•  
•  

 

 

Shutterstock photo

 

When President Donald Trump addressed a joint session of Congress Tuesday night, the first major speech since his inaugural address, he named multiple companies he has directly affected since he first entered the Oval Office on Jan. 20.

Since his speech last night, most of the companies have seen their stock prices rise, including Harley-Davidson, Inc. HOG, which is up 3.82% Wednesday to $58.53. But President Trump didn't kickoff his speech by name-dropping major U.S. corporations.

He began his address by condemning recent violence against minority groups and crimes rates in some major U.S. cities. He then wasted no time with regard to his big infrastructure plans, which sent some stocks soaring today .

Then, President Trump stated the following:

"Since my election, Ford, Fiat-Chrysler, General Motors, Sprint [ S ], Softbank, Lockheed, Intel, Walmart, and many others, have announced that they will invest billions of dollars in the United States and will create tens of thousands of new American jobs."

Although Trump did not directly endorse these companies, all but two of the companies saw stock prices rise.

Ford Motor Company F went up 1.28% to $12.69 per share on Wednesday. Fiat-Chrysler Automobiles N.V. FCAU stock rose 0.96% to $11.05 per share. And General Motors Company GMstock gained 1.60% to $37.43 per share.

Lockheed Martin Corporation LMT went up 0.68% to $268.38 per share. This move is mostly due to Trump's recent announcement to boost the defense budget . While SoftBank Group Corp. (SFTBY) stock rose 2.28% Wednesday to $38.21 per share.

Intel Corporation INTC stock fell 0.75% to $35.93 per share on Wednesday, along with Wal-Mart Stores, Inc. WMT , which dipped 0.55% to $70.54 per share.

The biggest mover Wednesday was not mentioned in the group near the top of Trump's speech. Instead, the President discussed the motorcycle giant after he addressed taxes and tariffs.

"I just met with officials and workers from a great American company, Harley-Davidson. In fact, they proudly displayed five of their magnificent motorcycles, made in the USA, on the front lawn of the White House."

Trump highlighted Harley-Davidson to discuses how it has become harder for American companies to compete internationally. But in 2016, roughly 40% of its motorcycles were sold outside of the U.S .

The Dow Jones industrial average gained more than 300 points Wednesday, and it reached 21,000 for the first time ever. The last jump of this magnitude was made the day before the election in Nov. 2016.

Wednesday's major move came just one day after the Dow's streak of 12 straight record-high closings ended Tuesday due in part to the uncertainty surrounding Trump's address to Congress.

Tax Rates and Rates Hikes

Trump also talked about revamping the U.S. Tax system Tuesday night. "My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone."

The White House plans to try to lower the top tax rate to 33% from over 39% . Trump also wants to simplify the corporate tax code. As of 2014 , the U.S. had the highest corporate tax rate on the planet among major economies. Japan was next at roughly 36%. Since then, Japan has lowered those rates to just over 30%.

KPMG has an interactive graphic outline of global tax rates, including corporate rates from 2010-2016 that is sortable by continent and or country.

On the back of Trump's massive trillion dollar infrastructure plan, a Fed rate hike looks even more certain. Inflation will increase naturally along with the massive government spending. Therefore the Fed will likely combat this with rate hikes to keep inflation near the 2% target.

Yesterday, speculation regarding a March Fed rate hike was roughly 30%. Today, that chance moved to 70% . The Fed's policy-setting body meets on March 14-15.

A full transcript of Trump's address can be found here