U.S. Trade Representative Robert Lighthizer is testifying tomorrow at 10:00am to the House Ways and Means committee; later in the afternoon Ambassador Lighthizer will testify before the Senate Finance Committee.

The New York Times has received an advance copy of USTR Lighthizer’s opening statement, and the liberal publication is apoplectic the Trump administration plans to outline an even more aggressive stance toward the World Trade Organization (WTO).

According to the pearl-clutching Wall St. class, Lighthizer is going to inform congress of Trump/USTR plans to demand tariff reciprocity; and Lighthizer will indeed raise tariffs against any nation that continues to attempt one-sided benefit. [EU will go bananas]

One method to approach tariff inequality would be for the U.S. to lower the import value threshold for non-tariff exemptions. Currently the U.S. does not apply import duties to any product valued under $800. This is a great benefit to China, southeast Asia, and U.S. on-line retailers such as ebay and Amazon; however, the zero tariff threshold hurts U.S. manufacturers because China and other nations do not reciprocate.

It is anticipated that USTR Lighthizer will inform congress the U.S. will lower that import threshold to match the same value level applied by other nations. Obviously the U.S. Chamber of Commerce and the Wall Street multinationals will not like this approach.

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The leader of the most powerful nation in the EU, German Chancellor Angela Merkel, is now in quarantine after her personal physician tests positive for the Wuhan Virus.

BERLIN (AP) — German Chancellor Angela Merkel has gone into quarantine after being informed that a doctor who administered a vaccine to her has tested positive for the new coronavirus.

Merkel, 65, was informed about the doctor’s test shortly after holding a news conference Sunday announcing new measures to curb the spread of the virus, her spokesman Steffen Seibert said.  He said that Merkel had received a precautionary vaccine Friday against pneumococcal infection.

[…] Merkel on Sunday thanked “the overwhelming majority” of Germans who were following rules on social distancing to help prevent the spread of the coronavirus.

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[White House] Today, President Donald J. Trump spoke with President Emmanuel Macron of France. The two leaders discussed how France and the United States are working to combat COVID-19 as well as opportunities to work together to stop the pandemic. President Trump agreed to host a video-conference on the coronavirus with all of the G7 leaders early next week. President Trump and President Macron also discussed issues in the Middle East, including countering the Iranian regime’s dangerous behavior and the situation in northwest Syria. (link)

The G7 Assembly includes: U.S, Japan, Canada, Italy, Germany, U.K. and France; with the EU usually sticking their collective nose into the conversation.

Any headline that uses the phrase “France Warns” immediately requires a background review to understand the big picture driving French fears.
Just like Canadian Prime Minister Justin Trudeau thinking he could outwit President Trump’s policies on NAFTA trade (he failed), Trudeau’s bestie, French President Emmanuel Macron, has stupidly exhibited similar shortsightedness.  In the case of both leaders their weasel moves have put their nations’ into a precarious economic position.
To consider the future for France, it would be wise to remember last year when President Trump arrived to attend the G-7 in Biarritz, France, President Macron was waiting at the Hotel du Palais to ambush Trump for an unscheduled luncheon (pictured below):

This was just one example in a series of scripted weasel-moves played by Macron in an attempt to pontificate his importance for the international audience.  Another example from the same event was Macron inviting the Iranian foreign Minister to the G7 for sideline meetings unrelated to the topics being discussed in Biarritz.
In an effort to create leverage against the U.S. position, President Macron never discussed his Iranian invitation -in advance- with the U.S. delegation.  It did not go over well.
The EU, and specifically France, have a dependence on foreign energy sources as a result of their ridiculous climate policies and narrow thinking.  In essence the EU wants to do business and receive oil from Iran; however, U.S. sanctions against Iran forbid those business deals.  Ergo Macron attempted to inject influence and position his interests.
As stated, the ambush approach did not go well, but POTUS played it cool.
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President Trump has cancelled plans to host the G7 at Trump Doral in Miami Florida.

(Source Link)

Oh man, almost too much winning.  President Trump Chief-of-Staff Mick Mulvaney brings the cold-fish slapper to a White House presser and pummels the narrative engineers.  Cold-Fish Slapping is like whac-a-mole, only instead of a hammer you use a slightly unfrozen fish; and instead of mole-heads popping up, you get reporters stupid questions.
First, Mr. Mulvaney announces the 2020 G7 will be held at Trump Doral Resort in Miami Florida, June 10th – 12th 2020.  The pearl-clutching media begin to quiver uncontrollably. Slap. Slap. Slap.  More spontaneous ‘splodey heads…. more cold-fish-slapping.  Repeat.
Then Mulvaney takes questions on Muh Ukraine and Muh Impeach-We-Much, and it becomes necessary for double-handed cold-fish-slapping.  This is really good. WATCH:

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The White House using Trump Doral-Miami for the G7, just because it is the best place to host the G7 is epic Trump. The media go bonkers… Trump shrugs and says: when you’re done with that, fetch me a Diet Coke. LOL.
[Transcript] – MR. MULVANEY: Hey, guys. How are you all?

First thing’s first: I want to comment very briefly on Mr. Cummings’s passing. For those of you who know, I was in Congress for a couple years with Mr. Cummings, and — on the committee with him. I had a chance to work with him on a day in, day out basis. And he will be missed. He was — he was a classy guy, and I enjoyed much working with him. And the condolences from my family and all of the White House group to his family today. He will be — he will be sorely missed.

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In the bigger picture… Within the trade team, Commerce Secretary Wilbur Ross is positioned with primary responsibility toward the EU and India. Ross clear-cuts through the politics, explains Trump’s objectives amid the trade proposals, and paves a path for U.S. Trade Rep Bob Lighthizer to engage his counterparts.
India has always been a key strategic nation within the global trade-realignment taking place by the Trump administration.  Under all of the banter, the “Indo-Pacific” strategy is structurally the decoupling of the U.S. from China. As a part of the strategy President Trump has positioned the ASEAN (Association of Southeast Asian Nations) as benefactors in manufacturing & trade as an outcome of the U.S. decoupling from China.

However, India has genuine concerns about the global dynamic. Specifically, India is worried about allowing the multinationals to have influence over their economy and social structure. In this regard India is not wrong; their concerns are not unfounded.
We can all see, heck we’ve lived through, massive multinational corporations quickly gaining too much influence; including -eventually- corporate influence over the politics of a nation. That inherently leads to corruption.
When Americans see it in other nations we call it “bribery and corruption”, but when it happens in Washington, DC, we call it “lobbying”; the process is exactly the same.
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Michael Pillsbury traveled to Hong Kong recently to help explain the goals and objectives of President Trump’s U.S-China trade position.  During an interview, Mr. Pillsbury warns Beijing interests not to interpret the current U.S. position as aggressive, because the dragon has yet to see the severe side to Trump’s position.

During an interview with the South China Morning Post, Pillsbury points out there are a great many more ways that President Trump is prepared to respond if the combative trade position from China remains hostile to any concessions.  This first option was their best option.  However, should they choose further trade conflict, President Trump will happily oblige.
CTH research on Trump’s outlook, vis-a-vis China, has led us to believe there is no upper limit to the economic weapons President Trump is willing to deploy; and considering that Pillsbury can be relied upon to deliver honest, accurate and deliberate remarks about the White House position, these warnings from a close advisor to the President should be weighted accordingly.

(South China Morning Post) – The United States is set to ramp up the pressure on China if a trade deal is not agreed soon, a key White House adviser said, adding that Washington has so far imposed only “low level tariffs” on the Asian giant.

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Boy howdy if ever there was an article that showed the layers and ramifications of President Trump’s global trade reset, this is a good one.   The multinational media do not want American voters to understand the dynamic, because if we did people would catch-on to how the global economy was structured upon removal of U.S. wealth…

(Tweet Link)

Reuters is reporting on a significant drop in German industrial orders, and they specifically point to diminished orders from the U.K (small part) and China (big part) as the cause.  However, the analysis stops at the part where China’s lack of industrial orders is the leading contribution to retraction in the German export sector.
What the financial analysis does not approach (ie. the third rail of multinational corporate admission that must never be outlined), is the reason why Chinese orders for German industrial goods have dropped.
The problem for China, and ultimately for Germany, is that Trump’s trade reset has stopped a big amount of U.S. wealth from arriving in Beijing. Simultaneously, Beijing is countering Trump’s tariffs by devaluing their currency.  The rebound economic impact is doubled. China has: (1) less income; and (2) less value within their own currency.
Where does this dynamic show up?…. Anytime China is going to buy something.
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At the conclusion of the G7 Summit in Biarritz, France, President Trump and French President Emmanuel Macron hold a joint press conference.
President Macron used the opportunity to serve his own urgent political interests.  With a populist ‘yellow vest’ movement knocking on his palace gates, the optics of presenting himself in alignment with ‘yellow vest’ nationalist Donald Trump helps Macron to deflect opposition away from his leftist policies.  Hence, a lengthy diatribe from the french weasel.
[Video below and UPDATED With Transcript]

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[Transcript] PRESIDENT MACRON: (As interpreted.) Mr. President, Madam First Lady, ladies and gentlemen — ladies and gentlemen: Following this G7 meeting that we have just held, and we’ve been discussing for two days now and I’m going to report back to you. But, first of all, I’d like to thank President Trump and all the heads of state and government present here for the extremely productive work and the very productive discussions that we’ve had since Saturday evening together.
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