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Tariffs, Trump and the G7

The G7 took place this month in Charlevoix, Québec.

Vladimir Putin has not been invited in recent years, something President Trump took issue with. Obama’s Susan Rice objected to Trump’s stance.

These are the participating countries:

This is another important fact:

Prior to the summit, G7 ministers met in Whistler between May 31 and June 2:

… G7 Ministers responsible for development cooperation met in Whistler, Canada, to discuss their shared priorities on some of the most pressing global development and humanitarian challenges, including advancing gender equality and the empowerment of women and girls.

But there was a more pressing subject, as The Conservative Treehouse (CTH) pointed out on June 2:

… as the G7 finance ministerial sessions wrapped up today, all the talk centered around their collective, and stunningly hypocritical, angst at new United States trade policy; specifically the imposition of Steel and Aluminum tariffs on imported goods.

France, Canada, the United Kingdom, Germany, Japan and Italy all have trade tariffs and trade barriers far higher than the U.S. Each of the G7 nations has exploited the overwhelmingly one-sided access to the U.S. market for decades. As President Trump demands “reciprocal and fair” trade agreements – those same nations now balk at the same rules and duties they impose on the U.S. now being imposed against them.

CTH cited a Reuters article:

Finance leaders of the closest U.S. allies vented anger over the Trump administration’s metal import tariffs but ended a three-day meeting in Canada on Saturday with no solutions, setting the stage for a heated fight at a G7 summit next week in Quebec.

U.S. Treasury Secretary Steven Mnuchin failed to soothe the frustrations of his Group of Seven counterparts over the 25 percent steel and 10 percent aluminum tariffs that Washington imposed on Mexico, Canada and the European Union this week.

The other six G7 member countries asked Mnuchin to bring to President Donald Trump “a message of regret and disappointment” over the tariffs, Canadian Finance Minister Bill Morneau said at a press conference after the end of a three-day meeting in the Canadian mountain resort town of Whistler, British Columbia.

On June 6, two days before the G7 began, Trump’s National Economic Council (NEC) Chairman Larry Kudlow held a press conference to discuss the upcoming summit. Kudlow is a friendly economic face who can explain Trump’s strategy clearly to those with no background in finance. He has had a high-flying career in the financial industry, has written four books and has hosted his own television and radio shows. When asked about challenges with trade among G7 members, he said:

Well, look — we’re talking everything through. There may be disagreements. I regard this as much like a family quarrel. I’m always the optimist. I believe it can be worked out. But I’m always hopeful on that point. This is a G7 meeting, and the presidents and heads of state will get together.

Let me add one thought to that, though. The President — President Trump is very clear with respect to his trade reform efforts that we will do what is necessary to protect the United States, its businesses, and its workforce. So that we may have disagreements, we may have tactical disagreements, but he has always said — and I agree — tariffs are a tool in that effort. And people should recognize how serious he is in that respect.

When pressed on trade and tariffs, he explained (emphases mine):

Here’s the President’s key thought on this: reciprocity. And one of the problems, one of the reasons for the breakdown of the trading system — the world trading system, as I described, which the President is trying to fix — in the last 20-some-odd years, we’ve seen a lack of discipline; tariff and non-tariff barriers have gone up. There has been a lot of protectionism.

The United States, by the way, we have the lowest average tariff in the world. And if you go down a laundry list of industries, you will see we are much lower. Our tariff rates are much lower than our competitors.

So his point is we should all have a level playing field. He calls it “reciprocity.” I think it’s a very apt description. And that’s the problem. If you bring down the barriers, and you equalize the level of the playing field, then we’ll let nature take its course, we’ll let markets take their course, and we will see.

But I think the products we make here have improved enormously and will continue to improve enormously. And that’s really the message of this economic recovery.

So we’ll wait and see on that, but that’s the mechanism. As I said to the other question, the way you lower your trade gap, the way you increase your exports is lower the barriers.

And again, I want to say, other Presidents, in both parties, have paid lip service to this issue of the lack of reciprocity and China’s particularly bad behavior, but nothing ever comes of it. This President has the backbone to take the fight, and he will continue to make the fight because he believes it is in the best interest of the United States and also the rest of the world.

Some trade initiatives — GATT — and organisations — the WTO — were fine during their time, however, circumstances have changed over time:

Don’t blame Trump. Blame the nations that have broken away from those conditions. Very important point. All right? I’m not here at the podium to call out countries and individual names and so forth. But you know from our own work, Trump is trying to fix this broken system.

It was a good system — I agree with you — and it lasted for a bunch of decades. But that system has been broken in the last 20 years-plus. The World Trade Organization, for example, has become completely ineffectual. And even when it makes decisions, even in the rare moments when it makes decisions, important countries don’t even abide by them.

So you’re right about that framework from the mid-1940s on. I think it worked beautifully. I think free world trade is a very good thing indeed. But it is broken, and President Trump is trying to fix it. And that’s the key point.

Incidentally, Larry Kudlow suffered a heart attack a few days later. Fortunately, he’s now out and about:

Now onto the G7 summit. Before his arrival in Charlevoix on Friday, June 8, Trump tweeted:

The tension about Russia’s exclusion — and tariffs — mounted. That day, BT.com reported:

Donald Trump has dealt another blow to G7 unity after calling for Russia to be readmitted to the group – a call rejected by Theresa May.

The Prime Minister said Vladimir Putin’s Russia – thrown out of the group of leading industrialised nations in 2014 – should not be readmitted until it could demonstrate a change of course.

Mr Trump was already at odds with the rest of the group – the UK, Canada, France, Germany, Italy and Japan – over the imposition of tariffs on steel and aluminium.

His comments on Russia – backed by Italian Prime Minister Giuseppe Conte – added further to the tensions at the summit in La Malbaie in Canada.

Mr Trump said: “Russia should be in the meeting, should be a part of it.”

But Mrs May told the BBC: “I have always said we should engage with Russia but my phrase is ‘engage but beware’.

“We should remind ourselves why the G8 became the G7, it was because Russia illegally annexed Crimea …

“So we need to say, I think, before any such conversations can take place Russia needs to change its approach.”

The article says that Prime Minister May met formally with every other leader except President Trump:

The US president is expected to depart the two-day summit early on Saturday, leaving the rest of the group behind.

Asked if Mrs May believed she had been snubbed, a Downing Street spokeswoman replied: “No.”

But the Prime Minister twice refused to say whether she had requested a formal bilateral meeting with Mr Trump.

Trump arrived that day (videos of arrival at Canadian Forces Base Bagotville here and here; arrival in Charlevoix here).

‘Justin from Canada’, as Trump refers to Premier Trudeau, looked rather weak:

Trump’s grandfather, a German immigrant, built a hotel in the Yukon as a young man. That was during the time of the Gold Rush:

The two leaders met privately then answered questions from the press, which ended with this:

Q Prime Minister, are you disappointed the President is leaving early?

PRESIDENT TRUMP: No, he’s happy.

Strangely enough, that day:

Trump also met with French president Emmanuel Macron in the early evening:

PRESIDENT MACRON: I wanted to thank President Trump. I think we had a very open and direct discussion this afternoon. We always have this kind of discussion.

And I think, on trade, there is a critical a path, but there is a way to progress altogether. We had a very direct and open discussion. And I saw the willingness on all the sides to find agreements and have a win-win approach for our people, our workers, and our middle classes.

We will have, this evening, a group discussion on North Korea — and you will have a very important meeting in Singapore — on Syria, on Iran, obviously. But I want to say that sometimes we disagree, but we always speak and share, I think, common concerns and common values. And we share the willingness to deliver and get results together.

So I wanted to thank you for that, once again.

Their meeting had been rescheduled from earlier that day, as Trump was delayed in leaving the White House.

There was the usual handshake and friendliness, but Macron had issued a warning to Trump the previous day via the press:

The Hill reported Macron’s remarks from Thursday, June 7:

French President Emmanuel Macron on Thursday delivered a stark message to President Trump, promising to resist “hegemony” and warning that no leader lasts forever.

Asked whether Trump did not care about “being isolated” from other world leaders, Macron responded, “Maybe, but nobody is forever.”

Macron’s statement comes as leaders from the Group of Seven prepare to meet at the G-7 summit in Canada on Friday — a meeting where Trump’s trade policies are expected to take center stage. 

Macron could reasonably apply his views on Trump to his own good self, as he has been lording it over the French for over a year now.

This is the reality of Trudeau and Macron:

This is what happened on Day 1:

This is a rather nice video summarising Friday’s events:

CTH has a meatier summary of what took place:

French President Emmanuel Macron responded to Trudeau’s plea and arrived two-days early to coordinate the strategic message.  Together they were looking for leverage in advance of Godzilla Trump’s arrival.  Germany’s Angela Merkel, and U.K. Prime Minister Theresa May even brought non-G7 members European Council President Donald Tusk, and European Commission President Jean-Claude Juncker as back-up.

Apparently the six-against-one plan was considered unfair to the six, so they added two moreUnfortunately for Canada, France, Germany and the U.K., Japanese PM Shinzo Abe and Italian Prime Minister Giuseppe Conte are not foolish enough to take on Godzilla.

As an entirely predictable outcome, President Trump won again.  It’s just so darned funny to watch this play out.  The era of the titan is back, and deliciously the titan is an American President, Donald J Trump.  He’s one guy, and he has them all surrounded; and he’s laughing the entire time.  He’s impenetrable, sharp, funny as heck and monolithic in stature making all of his opposition look decidedly less-than.

This video of everyone gathering around the table is interesting:

Photographs from June 9 lent further credence to CTH‘s summary:

Trump made a new friend at the G7, who also wants Russia re-admitted to the summit in future:

Trump held a press conference before leaving the G7 for the Singapore Summit:

Among his messages were:

Economic Security is National Security

CNN is “Fake News”

Then it was time for him to depart for Singapore:

Trump later instructed US representatives at the G7 to reject the summit’s communique:

This is because he thought Justin from Canada was being disingenuous with him after he left (see Trudeau’s closing press conference):

On Sunday, June 10, BT.com reported more on that and the rest of the summit, excerpted below:

The summit in Canada was marked by the US president’s controversial trade policy which has put him at odds with the rest of the G7 leaders.

He warned that retaliation against metal tariffs – 25% on imports of steel and 10% on aluminium from countries including the UK and the rest of the European Union – would be a mistake after previously calling the EU approach to business “brutal”…

During the meeting, Mr Trump accused other states of “robbing” his country through their trade policies and proposed scrapping tariffs across the G7.

But Theresa May hit back, branding the tariffs “unjustified” and saying the EU would respond – although she warned against further tit-for-tat escalation.

Despite the tensions at the gathering in Canada, Mr Trump rated his relationship with their leaders as a “10” – naming Germany’s Angela Merkel, French President Emmanuel Macron and Mr Trudeau, but not the UK Prime Minister.

As well as criticising the tariffs, Mrs May also opposed Mr Trump’s call for Russia to be readmitted to the group of leading industrialised nations.

But Mr Trump insisted it would be an “asset” to have Vladimir Putin back at the summit table.

That day, White House Trade Policy Adviser Peter Navarro told Fox News that Trudeau had made a huge mistake — the ‘biggest miscalculation in Canadian political history‘ — and more:

Of course, as Trump was in Singapore, he couldn’t readily tweet about the G7 until he returned to Washington. On Friday, June 15, he had a few points to make:

He also told Fox & Friends that the leaders had wished him a happy birthday on June 14, Breitbart reported.

More on tariffs to follow.



This post first appeared on Churchmouse Campanologist | Ringing The Bells For, please read the originial post: here

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Tariffs, Trump and the G7

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