Grab your winnamins and hide the Ju-Ju bones. I thought this was going to be an issue when Prime Minister Trudeau publicly told reporters the content of a private conversation between Vice-President Mike Pence and himself.  With incredibly bad diplomatic form, Justin from Canada has not only cemented the Steel and Aluminum tariffs as permanent – but Trudeau has likely destroyed any hope of the U.S. remaining in NAFTA.

The White House has delivered a statement to the media, with a request to ensure authorship is directly and personally cited from President Donald J Trump:

The United States has been taken advantage of for many decades on trade. Those days are over. Earlier today, this message was conveyed to Prime Minister Justin Trudeau of Canada: The United States will agree to a fair deal, or there will be no deal at all. (link)

For those unfamiliar; this is about as close to an ultimatum as President Donald Trump generally delivers to his adversaries.   Look back on his history and you’ll note rarely does Donald J Trump deliver ‘either this / or that’ approaches; it’s just not his style…. He doesn’t bluff.  However, when Trump has decided to walk away from a deal, any deal, he delivers the “either/or” right before walking to the door.  The final terms hang in the air providing the opposition with a few fleeting moments to reflect prior to exit.

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Focusing a lot of today’s information on the economic front and the implementation of the U.S. America-First trade discussion because this is the very heart of the Trump MAGA initiatives.  Everyone who voted for President Trump should be grinning ear-to-ear today at how steadfast POTUS has been – against all economic adversaries foreign and domestic.

White House Trade Council Director Peter Navarro discusses the implementation of countervailing U.S. duties; the transshipment issues, NAFTA and the intended trade reset therein. “Economic Security is National Security“!

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Justin from Canada presents one of the most ridiculous contexts for the U.S. 232 Steel and Aluminum tariff decision. Justin proclaims the imposition of countervailing duties by the U.S. indicates that President Trump considers Canada a national security threat. Seriously, I’m not kidding, that’s what he is stating – watch.  Additionally, his feelings are hurt.

Apparently Justin from Canada cannot draw a distinction between an industry being lost, and that loss being a national security risk, and the hurt feelings of the Canadian Prime Minister. Intensely ridiculous… even for Justin. Obviously the irrational liberals in both the U.S. and Canada will likely draw the same ridiculous and illogical conclusions.

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China, the EU, Canada and Mexico have been exploiting weak U.S. trade policy for years. Through the effective utilization of targeted tariffs, with multiple opportunities -and warnings- to avoid the outcome, President Trump and Wilbur Ross cut the Gordian Knot.

The Big Club, driven almost entirely by the U.S. Chamber of Commerce and Tom Donohue are going bananas….. They can’t believe Trump actually did it. He actually followed through. The Wall Street consortium of multinationals are apoplectic.

Decades of economic gaslighting upon the U.S. electorate; massive manipulative multinational corporate influences; hundreds of millions spent purchasing U.S. politicians; and POTUS has just punched it all square in the face.

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Amid ongoing trade stalemates with NAFTA and the EU, Commerce Secretary Wilbur Ross has announced the U.S. Commerce Department will no longer provide exemptions for the European Union, Canada or Mexico.

As anticipated, during a telephone briefing with reporters Secretary Ross announced at midnight tonight the 25% steel, and 10% aluminum, tariffs on imported goods will begin.

Via Reuters: U.S Commerce Secretary Wilbur Ross told reporters on a telephone briefing that a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the EU, Canada and Mexico would go into effect at midnight (0400 GMT on Friday).

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Canada is vowing to retaliate against the U.S. if President Trump subjects NAFTA partners to the same tariffs as other trade nations and eliminates the NAFTA loophole. {Go Deep}

The NAFTA Loophole allows Canada and Mexico to broker independent trade deals with Asian and European companies; then use their Mexican and Canadian access to the U.S. market as a backdoor around U.S. Tariffs.

This loophole has been exceptionally rewarding for both Canada and Mexico and for more than a decade they have structured their economies around loophole retention. U.S. corporations, seeing advantages from cheap Asian parts in Mexico and Canada, have moved some manufacturing there to take advantage.  In an effort to reset the trade imbalance created by the loophole President Trump is threatening to close it.

OTTAWA (Reuters) – Canada will “respond appropriately” to any U.S. steel and aluminum tariffs, Foreign Minister Chrystia Freeland said on Wednesday, less than two days before the punitive measures are due to kick in.

“The government is absolutely prepared to – and will defend – Canadian industries and Canadian jobs. We will respond appropriately,” Freeland told reporters when asked about possible U.S. action.

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The 30-day extension on exemptions for Steel and Aluminum tariffs is scheduled to expire June 1st.  President Trump is positioning the U.S. Trade Team for a substantial reset. According to reports, U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystina Freeland held a terse meeting today over the tariffs and Canada’s unwillingness to close the NAFTA ‘fatal flaw‘ (loophole).

Both Canada and Mexico have structured key parts of their trade agreements to take advantage of their unique access to the U.S. market.  Mexico and Canada generate billions in economic activity through exploiting the NAFTA loophole.  China, Asia (writ large), and the EU enter into trade agreements with Mexico and Canada as back-doors into the U.S. market.  So long as corporations can avoid U.S. tariffs by going through Canada and Mexico they will continue to exploit this approach.

If the U.S. applies the same tariffs to Canada and Mexico we apply to all trade nations, then the benefit of using Canada and Mexico -by those trade nations- is lost. Corporations will no longer have any advantage, and many are likely to just deal directly with the U.S.  However, this would mean hundreds of billions in lost economic activity for Mexico and Canada.  It is the NAFTA fatal flaw.

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Big picture move by President Trump today that has massive, and generally misinterpreted, ramifications for any trade deal with China, EU and most importantly NAFTA.

China is using U.S. nuclear negotiations with North Korea as leverage for more beneficial trade outcomes; the communist regime is in full manipulative dragon-mode. President Trump can see through the economic play and is dropping the Panda outreach.  Eagle-one now hits back at Chairman Xi for deploying such dangerous tactics.

If you have been following trade nuance, the Automobile Sector is one of the biggest points of contention within varying trade negotiations. In the NAFTA discussion the auto-sector, via rules of origin, runs at the heart of NAFTA’s fatal flaw.

The fatal flaw is the use of Asian, mostly Chinese, auto components within auto manufacturing. Mexico and Canada arguing to allow more Chinese auto parts in North American manufacturing; and President Trump demanding more North American parts for North American auto manufacturing.

Many U.S. Auto manufacturers have moved to Mexico to exploit the NAFTA loophole (fatal flaw). Vehicles assembled in Mexico use cheaper Chinese parts and are shipped into the U.S. without any tariff under NAFTA rules.

It didn’t take long before EU auto-manufacturers, mostly German, to begin taking the same approach. Albeit to a lesser extent, German auto companies also invested in building vehicles in Mexico/Canada for tariff-free transfer into the U.S. This works out great for Canada and Mexico auto-workers, but not for the U.S.

In essence, the auto-sector is representative of much of the manufacturing exploitation by multinational corporations beyond vehicle production. China has supported this approach because they produce the components for multiple sectors (furniture, appliances etc).

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Today President Donald Trump is speaking about MS-13 gang violence and overall immigration issues at the Morrelli Center in Bethpage, NY.  Anticipated start time 2:00pm EST:

UPDATE: Video Added

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President Trump hosts a meeting with California leaders and public officials who oppose California’s illegal and unconstitutional sanctuary policies that release criminal illegal aliens into public communities. They are expected to discuss shared efforts to end the nullification of federal law and restore community safety. Anticipated Start Time 3:15pm EST

Administration Attendees: President Donald J. Trump, Attorney General Jeff Sessions, Department of Justice; Secretary Kirstjen Nielsen, Department of Homeland Security; Thomas Homan, Deputy Director of Immigration and Customs Enforcement.

UPDATE: Video Added

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California Delegation Attendees: House Majority Leader Kevin McCarthy; Assemblywoman Melissa Melendez (CA-67); Councilmember Pam Patterson, City of San Juan Capistrano; Mayor Troy Edgar, City of Los Alamitos; Mayor Julie Hackbarth-McIntyre, City of Barstow; Mayor Natasha Johnson, City of Lake Elsinore; Mayor Elaine Gennawey, City of Laguna Niguel; Mayor Crystal Ruiz, City of San Jacinto; Mayor Sam Abed, City of Escondido; Mayor Pro Tem Warren Kusumoto, City of Los Alamitos; Sheriff Adam Christianson, Stanislaus County; Sheriff Margaret Mims, Fresno County; Sheriff John DAgostini, El Dorado County; Supervisor Michelle Steel, Orange County (R); Supervisor Kristin Gaspar, San Diego County (R); Deputy Sheriff Ray Grangoff, Orange County; District Attorney Stacey Montgomery, Lassen County.

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The NAFTA phone call between Justin from Canada and U.S. President Trump took place yesterday.

Due to the importance of the timing; and against the backdrop of Trump’s meeting with auto executives; and considering that Canadian Foreign Minister Chrystia Freeland spent five days in Washington DC last week without an agreement; and understanding no NAFTA talks are taking place this week; it was important to see who called whom in order to understand the import of the phone contact:

President Donald J. Trump spoke today with Prime Minister Justin Trudeau of Canada to address the renegotiation of the North American Free Trade Agreement. President Trump underscored the importance of quickly concluding an agreement.  (WH – link)

According to Canadian officials, Justin from Canada was the initiator of the call yesterday.

Speaker of the House Paul Ryan previously set a deadline date of May 17th, due to the statutory requirements for any agreement, based on this year’s legislative calendar.  That’s the day after tomorrow.  There is general consensus no agreement prior to that date is possible.   Additionally Mexico’s national election is July 1st, 2018.

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