U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe hold a bilateral meeting at the G20 summit in Buenos Aires, Argentina. (Video and Transcript) PM Abe represents one important leg of the “indo-pacific” economic/trade realignment, being carried out by President Trump.

.
[Transcript] Buenos Aires, Argentina – 1:50 P.M. AST – PRESIDENT TRUMP: So it’s a great honor to be with my friend, Shinzo Abe, Prime Minister of Japan, who has just had a very big success in his election. He won by a massive amount. And I’m not surprised at all.
(more…)

On the sidelines of the G20 summit in Argentina, U.S. President Trump, Mexican President Pena Nieto and Justin from Canada deliver remarks prior to signing the NAFTA replacement agreement, the USMCA. [White House Statement Here]
The USMCA is a major structural shift in the U.S., Mexico and Canada, trade agreement. While the new agreement does not form an actual trade-bloc, the agreement removes most of the exploitation of the U.S. market that existed within NAFTA. The U.S. and Mexico are the primary benefactors; Canada notsomuch.

.
[Transcript] Buenos Aires, Argentina – 9:24 A.M. AST – PRESIDENT TRUMP: Thank you very much. We’re gathered together this afternoon for a very historic occasion: The signing ceremony for a brand new trade deal, the United States-Mexico-Canada Agreement. So important.
(more…)

President Trump took all the ‘dragon slayers’ with him to Argentina likely anticipating a rapid Chinese evolution from Panda to Dragon.  Trump’s delegation selection sends exactly that message.  If cunning Chairman Xi exhibits wounded sensibilities, well, tough.
China deployed the panda mask for over a year in an effort to wait-out President Trump, fair enough; however, that strategy has a severe downside.
If lack of engagement is part of Beijing’s economic defense mechanism, ie. retaining the status quo,  you can expect President Trump to provoke the confrontation.
Does Xi feel rucky?

SHANGHAI (Reuters) – China and the United States can reach a trade agreement at the G20 meeting in Argentina this week, the state-run China Daily newspaper said in an editorial on Friday, but Washington must be “fair minded” if it wants to defuse spiraling tensions.
“Beijing wants a deal, just as Washington does. And it is willing to cooperate with Washington in dealing with concerns about trade if they are fair-minded,” the paper said.

(more…)

This is one of those reports that seems small and appears way over there on the periphery. However, if MAGAnomics and trade are important to you, this story is very much worth paying attention to.
As CTH shared last week the White House reached out to EU auto executives to request a meeting.  There is a VERY STRONG likelihood the message within this meeting will surround potential tariffs, and questions from team Trump about the intents of EU (mostly German) automakers against the backdrop of the USMCA.
The potential for auto-tariffs terrifies the EU (specifically Germany), because most of their profits from within the industry come from access to the U.S. market.   Few major markets in the world can afford the scale of automobile purchases as a wealthy U.S.A. does.  The profit margins are much smaller in all other countries.  Without the U.S. market, these auto companies would be in deep financial trouble.  Enter Trump’s leverage:
(more…)

The New York Post has an article today, surrounding an interview with President Trump, where the topic of declassifying the evidence behind ‘Spygate’ surfaced.
To say there is a massive schism amid supporters of the President on this issue would be an understatement.

On one hand the declassification would potentially, and finally, outline the scale of the FBI/DOJ politicization and weaponization of intelligence against the President – exposing the entire ‘spygate’ scandal in all its glory.  On the other hand that potential is also seen as political leverage against the schemes of DC and all the characters.
Here’s the quotes that matter:

(New York Post) […]  “If they go down the presidential harassment track, if they want go and harass the president and the administration, I think that would be the best thing that would happen to me. I’m a counter-puncher and I will hit them so hard they’d never been hit like that.”
“I think that would help my campaign. If they want to play tough, I will do it. They will see how devastating those pages are.”

(more…)

The issue is basic to the construct of the USMCA (NAFTA replacement).
BMW made a multi-billion-dollar investment in Mexico in anticipation of exploiting the NAFTA loophole.  President Trump has closed the loophole.  The new USMCA agreement requires 75% of automobile parts made in North America; and 45% must come from plants with minimum labor costs ($16/hr), or face tariffs upon export to the U.S.
As a result BMW is now considering opening those higher-wage component supply operations in the U.S.

LOS ANGELES (Reuters) – BMW (BMWG.DE) is considering a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said on Tuesday, shortly after a report that U.S. President Donald Trump would impose tariffs on imported cars from next week
[…] BMW is considering changes to U.S. operations as sales in the region grow, Krueger said. BMW has a U.S. vehicle assembly plant, in South Carolina, is planning to open a Mexico factory next year, and is considering changes to its current scheme of importing engines and transmissions.

(more…)

A small but interesting development in the relationship between the U.S. and Mexico highlights a backstory CTH suspected several months ago {Go Deep}. August 25th:

As USTR Robert Lighthizer was working with the trade officials representing outgoing Mexican President Peña Nieto, White House adviser/emissary Jared Kushner was quietly working behind the scenes with AMLO trade adviser Jesus Seade and outlining the possibilities if they partnered with strategic economic objectives in mind.
As a result of Kusher’s dogged efforts to bring an entirely new dual-nationalist ‘focus’ within the trade construct, removing the historic globalist baseline, the outcome of the trade deal is excellent for both the U.S. and Mexico.  So today:

MEXICO – […] Kushner will receive the prize “for his contributions to achieve the negotiation of the new United States-Mexico-Canada Agreement (USMCA),” according to a statement by Mexico’s Foreign Relations Secretariat.
Peña Nieto will present Kushner, President Trump’s son-in-law, with the award on Thursday at the Group of 20 summit in Argentina, according to the Reforma newspaper.

(more…)

Press Secretary Sarah Sanders, National Security adviser John Bolton and National Economic Council Chairman Larry Kudlow hold a very important press briefing from the White House.
Chairman Kudlow discusses current economic issues, and the upcoming possible trade discussions with China at the G20 meeting in Buenos Aries, Argentina. At 19:00 minutes NSA John Bolton takes over to discuss the scheduling details of the G20.  [Interesting trilateral mentioned: Trump, Modi and Abe] At 30:00 minutes Sarah Sanders takes over.

(more…)

President Trump’s ‘America First’  tweets are seen as dangerous to the progressive left because they are loaded with brutal, and often purposeful, honesty.  Today is another clear example.
General Motors would not exist today if it wasn’t for the taxpayer-funded bailouts of their financial position in 2008/2009.  GM is uniquely indebted to the U.S. taxpayer. After receiving those bailouts GM moved production of their newer sectors of autos to Mexico and China; providing no benefit to the American workers who funded their bailout.

GM is one deliberate presidential tweet-string away from seeing a massive consumer backlash that could would wipe out their business.  President Trump doesn’t bluff.
(more…)

GM Chevy Cruze, built at Lordstown, OH: (Sales -27% through September 2018). GM Chevy Impala, built at Oshawa, Canada and Hamtramck Michigan: (sales -13%). GM Buick LaCrosse (-14%); and Cadillac CT6 (sales -11%) both built at Hamtramck Michigan.
Following major drops in the sedan sector of the U.S. automotive market, General Motors CEO Mary Barra announced plans to halt production next year at three assembly plants: Lordstown, Ohio; Hamtramck, Michigan; and Oshawa, Ontario. GM will fully stop production on several models assembled at those plants: Chevrolet Cruze, Cadillac CT6 and the Buick LaCrosse.
These cuts could lead to approximately 6,000 to 8,000 lost jobs.

DETROIT/WASHINGTON (Reuters) – General Motors Co said on Monday it will cut production of slow-selling models and slash its North American workforce in the face of a declining market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles.

(more…)