The biggest trade deal of all time, the pact encompasses more than $1.3 trillion of commerce. While winning enough votes to pass in the Republican-led Senate was anticlimactic after months of modifications by the Democratically-controlled House, it delivers on Trump’s 2016 campaign promise to overhaul the Clinton-era North American Free Trade Agreement that he called a “disaster.”

The vote was 89 senators in favor, with 10 opposed.

A day earlier, the president and a Chinese official signed an initial trade accord between their countries, cooling tensions in a nearly two-year trade war.

“Adding together USMCA and the China deal, that’s over $2 trillion of trade,” Commerce Secretary Wilbur Ross told FOX Business’ Maria Bartiromo on Thursday. “That’s an enormous number.”

THE 10 SENATORS WHO VOTED AGAINST USMCA

Senate Majority Leader Mitch McConnell, R-Ky., with Sen. Joni Ernst, R-Iowa, and other senator. (AP Photo/Jose Luis Magana)

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The USMCA, which has already been ratified by Mexico but not by Canada, requires 75 percent of automobile components be manufactured in the United States, Canada and Mexico in order to avoid tariffs. By 2023, some 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour.

US, CHINA SIGN HISTORIC PHASE ONE TRADE DEAL

The pact is expected to create 80,000 new jobs tied to the auto industry and bring in up to $30 billion of new investment in the sector. The USMCA will also provide new access to American wheat, poultry and eggs, among other things.

“This is a major achievement for President Trump and a very big win for the American people,” said Sen. Charles Grassley, chairman of the finance committee. “I look forward to signing this bill and sending it to the president’s desk.”

When it’s all said and done, the trade pact could boost U.S. gross domestic product by up to 1.2 percentage points and create as many as 589,000 jobs, according to the International Trade Commission.

Senate Minority Leader Sen. Chuck Schumer of N.Y. voted no. (AP Photo/Susan Walsh)

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Coupled with the 0.5 percentage-point boost expected from Wednesday’s passage of the phase one trade deal with China, U.S. gross domestic product may come close to the 4 percent growth that Trump suggested was possible during his 2016 presidential campaign.

Trump’s economy has topped that mark once already. U.S. GDP growth hit 4.2 percent in the second quarter of 2018, receiving a tailwind from the passage of the Tax Cuts and Jobs Act, which lowered the top corporate tax rate from 35 percent to 21 percent and cut taxes for many Americans. The U.S. economy grew at a 2.1 percent pace in the third quarter of 2019, the most recent period for which figures were available.

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“We have what is really the absolute gold standard on digital trade and financial services, stuff that has never been done before,” U.S. Trade Representative Robert Lighthizer told FOX Business’ Maria Bartiromo in December, adding that the USMCA will be the “template” for new trade agreements going forward.

Source: https://www.foxbusiness.com/markets/usmca-thumbs-up-hands-trump-victory

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“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump wrote. “The Tariff will gradually increase until the Illegal Immigration problem is remedied, … ..at which time the Tariffs will be removed. Details from the White House to follow.”

Fox News is told the tariff on all goods by land, sea, and air from Mexico will hike to 10 percent on July 1 — and potentially increase substantially from there.

“If Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019,” Trump said in a statement released later by the White House on Thursday. “Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.”

The statement added: “Thousands of innocent lives are taken every year as a result of this lawless chaos.  It must end NOW! … Mexico’s passive cooperation in allowing this mass incursion constitutes an emergency and extraordinary threat to the national security and economy of the United States.”

Specifically, White House sources told Fox News that Mexico would need to step up security efforts on the border, target transnational smugglers, crack down on illicit bus lines and align with the U.S. on a workable asylum policy. Mexico could use certain so-called choke points on the southern border to curb illegal migration sharply, according to the sources.

The Washington Post reported earlier in the day that the Trump administration was considering the move, and that it had broad support in the White House — although some aides reportedly tried to talk Trump out of it.

“We are going to do something very dramatic on the border because people are coming into our country,” Trump told reporters earlier Thursday.

The International Emergency Economic Powers Act of 1977 permits tariffs to be levied by the executive in the event of a national emergency originating from a foreign source. Trump said he was invoking the powers in the law and would use his “sole discretion” to determine whether Mexico had taken sufficient action.

“If Mexico does not take decisive measures, it will come at a significant price,” Trump concluded in his statement.

The situation could complicate the legislative passage of the United States-Mexico-Canada Agreement (USMCA), sent to Congress by the White House on Thursday, which has aimed broadly to limit tariffs among the three countries.

However, the White House told Fox News it saw the matters as entirely distinct and did not anticipate complications for the USMCA.

Migrants seeking asylum in the United States lining up for meals provided by volunteers near the international bridge in Matamoros, Mexico. (AP Photo/Eric Gay, File)

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Vice President Mike Pence was in the Canadian capital of Ottawa on Thursday to build support for the USMCA. The U.S. recently lifted steel and aluminum tariffs on Canada that had threatened to sink the arrangement, which was signed in November with the goal of replacing the North American Free Trade Agreement.

TRUMP ORDERS ASYLUM OVERHAUL, CITING STATS SHOWING MOST CLAIMS ARE FRAUDULENT OR UNFOUNDED

The news of the tariff came hours after Politico reported that an internal plan under consideration at the Department of Homeland Security effectively would block Central American migrants from bringing asylum claims, by prohibiting claims from applicants who resided in a country other than their own before seeking entry to the United States.

Arrests along the southern border have skyrocketed in recent months, with border agents making more than 100,000 arrests or denials of entry in March, a 12-year high. Immigration courts that process asylum claims currently have faced a backlog of more than 800,000 cases and asylum applicants increasingly have been staying in the U.S. even after their claims for asylum have been denied.

More than 4,000 individuals have been apprehended at the border with children who are not their own in recent months, administration officials tell Fox News.

And, Customs and Border Protection said it apprehended or turned away over 109,000 migrants attempting to cross the border in April, the second month in a row the number has topped 100,000.

In a dramatic moment, more than 1,000 illegal immigrants were apprehended by border agents near the U.S.-Mexico border early Wednesday — the largest ever group of migrants ever apprehended at a single time, sources told Fox News on Thursday. The group of 1,036 illegal immigrants found in the El Paso sector included migrants from Guatemala, El Salvador and Honduras, according to sources.

The post Trump announces escalating tariffs against Mexico, starting at 5 percent, until illegal immigrants ‘STOP’ first appeared on Garner Ted Armstrong Evangelistic Association.

How has Iran responded to this aggressive move? With an offer.

Over the weekend, Foreign Minister Javid Zarif said in an interview that Iran is willing to sit down with the Trump administration to negotiate the release of Americans imprisoned in Iran in exchange for the release of Iranians held in the US or in other countries on US charges. Iran had previously refused to speak with the US following the Trump’s exit from the nuclear deal.

So what does Zarif’s offer tell us?

Trump’s pressure campaign is working, at least well enough to bring Iran to the negotiating table. Zarif isn’t (yet) offering to rework the nuclear deal that President Barack Obama signed and President Trump has sought to dismantle or renegotiate. But an offer to talk about anything of substance is better for both sides than radio silence or an exchange of threats.

Iran’s economy is forecast to contract by 6 percent this year, and inflation is expected to rise to 50 percent. Iran’s oil exports have more than halved since the US announced its decision to abandon the nuclear deal last year. China and India may continue to buy small amounts of Iranian crude, but the loss of Iran’s other customers can only make a bad situation worse. Talking with Trump might bring Iran some relief.

Iran is appealing directly to Trump. The US president tweeted recently about his success in winning the release of Americans held in other countries. With this new offer, Zarif is talking past Trump’s advisors to offer the president another political win in exchange for the return of some Iranians and a willingness to open a new diplomatic dialogue.

One overture won’t change hearts and minds in Washington or Tehran. There isn’t enough trust or good will on either side to quickly advance from a prisoner swap to talks on the restoration of a nuclear deal. Iran is still a useful political villain for Trump, and the US remains an easy target for hostility inside Iran.

But keep an eye on this story. Zarif is probably hoping he can appeal to Trump’s vanity as an expert negotiator to kickstart talks that might (eventually) lead to a new opening on the nuclear deal. Think of it as Zarif’s long-term investment. After all, Trump proved willing to support a reworked North American Free Trade Agreement and has sat face to face with Kim Jong-un after having threatened to destroy North Korea.

Can the US and Iran find their way back to a nuclear deal? We should be skeptical—but not cynical.

Source: https://www.gzeromedia.com/iran-hostage

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Germany has warned the United States that it will take retaliatory measures against the administration of US President Donald Trump if it decides to escalate his trade standoff with the European Union.

German Economy Minister Peter Altmaier said Thursday that the EU didn’t want to engage in a trade war with Washington but was ready to defend itself should Trump take punitive measures.

“I believe that wars are generally not a good idea, and that trade wars are not a good idea either, because at the end, everyone will lose,” Altmaier told ZDF.

“Therefore, the goal and interest is that we avoid this trade war,” Altmaier said, noting that the EU wanted to resolve differences with the US by lowering tariffs.

He said Brussels will respond with its own measures, “so that everyone knows that we protect and defend our own interests,” Altmaier added.

Ever since taking office in 2017, Trump has repeatedly vowed to reduce US trade deficits with other countries, calling out India, China and a number of European countries for their high tariffs.

The president has put tariffs on $250 billion of Chinese goods, as well as on most foreign steel and aluminum, solar panels and washing machines. They were meant to make US-made goods cheaper than foreign competitors’ and incentivize consumers to buy American.

PressTV-US trade deficit in 2018 hits record high in decade

An official report shows the US trade deficit last year hit the highest level in a decade, despite the sweeping tariffs Trump imposed on imported goods.

Trump pulled the United States out of the Trans-Pacific Partnership and renegotiated the North American Free Trade Agreement, both of which he called some of the “worst” deals.

He’s currently pursuing separate deals with China and the European Union.

An avid protectionist, Trump has also attempted to revive American manufacturing and reduce dependence on imported goods, including steel and other materials.

However, the US government’s Census Bureau revealed this week that the country’s trade deficit hit a 10-year high in 2018 as it grew to 621 billion dollars. That’s over $100 billion since he entered the White House.

Trump views the trade deficit as a measure of whether the US is winning or losing on trade.

Source: https://www.presstv.com/Detail/2019/03/08/590462/US-EU-Germany-trade-war-Trump-Altmaier

The post Germany vows retaliation for US trade war on EU first appeared on Garner Ted Armstrong Evangelistic Association.

A surprise deal struck on Wednesday will see Washington suspend the imposition of any new tariffs on the European Union, including a proposed 25 percent levy on auto imports, and hold talks over tariffs on imports of European steel and aluminum.

The deal boosted share markets initially, and U.S. industrial shares were stronger on Thursday as fears of a trade war with Europe ebbed.

Both sides claimed victory in the deal, reached by Trump and European Commission President Jean-Claude Juncker in Washington. In return for the talks and a suspension of auto tariffs, the EU will import more soybeans and energy from the United States.

A White House official told Reuters that Juncker had shown greater flexibility than expected in the talks and that while there was no deadline for an overall deal, Trump retained the power to impose tariffs if progress was not made.

One key aspect of the agreement, according to the official who spoke on condition of anonymity, was that the two sides had agreed to work together to tackle China’s market abuses.

“They want to work together with us on China and they want to help us reform the WTO (World Trade Organization),” said the official, adding that the Europeans came into the talks “with a real positive spirit”.

Trump has announced a series of punitive tariffs on Chinese imports in a bid to halt a Chinese surge in high-technology industries that threatens to displace U.S. dominance. Both the U.S. and the EU charge that Chinese companies steal company secrets.

On the North American Free Trade Agreement talks with Canada and Mexico, Treasury Secretary Steve Mnuchin said he was “hopeful that we’ll have an agreement in principal in the near future.”

“Whether it’s one deal or two deals, so long as we get the right agreement, we’re indifferent,” Mnuchin told CNBC.

Trump and officials from his administration said the EU had given ground by agreeing to import more American goods and to hold talks on tariff reductions including on cars, an industry in which Trump has accused Europe of imposing heavy duties.

EU officials said little had been given away by Juncker and that Europe had emerged as the winner by getting Trump to defer the threatened car tariffs which would have hit European carmakers hard.

The deal was hailed by commentators in the United States and Europe for drawing back from an escalation in a trade war that had threatened to take the world back to the kind of protectionism not seen since the 1930s, although some cautioned the relief may be only temporary.

French President Emmanuel Macron appeared to challenge the deal, saying on Thursday he would not discuss agriculture in talks with the United States.

If it holds, the US-EU pact could allow both to focus on China, whose economic rise threatens both. Lawmakers in Washington on Thursday passed legislation to slow Chinese investment in U.S. companies. In Europe, alarm bells have been sounded over China’s growing economic influence there.

“U.S. and EU will be allied in the fight against China, which has broken the world trading system, in effect,” Trump’s economic adviser Larry Kudlow said. “President Juncker made it very clear yesterday that he intended to help us, President Trump, on the China problem.”

CASUALTIES IN TRADE FIGHT

Since taking office last year, Trump has implemented policies to restrict what he sees as unfair competition from other countries. He tore up an agreement to join a Pacific trade pact, has threatened to pull out of NAFTA, and imposed steel and aluminum tariffs aimed at China.

In an effort to rein in China’s high technology industries that he charges have stolen intellectual property from American companies, Trump has ramped up threats of tariffs on $50 billion worth of imports from China to $450 billion after China retaliated with its own duties on imports from the United States.

The impact has fallen mainly on U.S. farmers and Republican party lawmakers. A move by Trump to offset farmers’ losses with a $12 billion aid package drew criticism with farmers saying they wanted access to markets rather than subsidies.

U.S. Trade Representative Robert Lighthizer, a veteran of trade negotiations from former President Ronald Reagan’s administration in the 1980s who is Trump’s top trade official, told lawmakers in Washington that the United States could not afford to capitulate to China economically.

“I don’t think it’s a stupid fight,” Lighthizer said of the trade battle with China in heated exchanges in the Senate. “I don’t know a single person that has read this report that thinks it’s a stupid fight to say China should not be able to come in and steal the future of American industry.”

A more conciliatory tone emerged from Mnuchin, who told CNBC the United States was willing to reopen trade talks with China if Beijing was willing to make “serious changes,” as he said the EU had indicated it was willing to do.

In May, the United States and China initially appeared willing to strike a deal that would see China reduce its $350 billion surplus in the trading of goods by buying more U.S. agriculture and energy products.

• QCOM.O
• NXPI.O

That deal fell apart quickly and has been replaced with a rising tally of tariff retaliation that has led to Trump threatening tariffs on almost everything the United States imports from China.

China has threatened to retaliate dollar for dollar, and its refusal to sign off on regulatory approval caused a $44 billion deal from Qualcomm Inc (QCOM.O) to buy NXP Semiconductors (NXPI.O) to fall apart, a move that showed U.S. companies were being targeted unfairly, Mnuchin said.

The post U.S. touts EU trade truce, attention now turns to China first appeared on Garner Ted Armstrong Evangelistic Association.