Tag: robert lighthizer
Robert Lighthizer

Trump Could Impose Tariffs On Day One -- Followed By Big Price Hikes

Robert Lighthizer — who served as Donald Trump's U.S. Trade Representative — is on a mission to "convince lawmakers and the public that their plans for dramatically higher tariffs will energize the economy instead of tanking it," Politico reports.

"According to a document viewed by POLITICO," the news outlet notes that Lighthizer "and those close to him are preparing to aggressively sell their plans for massive new tariffs on imports that will go far beyond anything seen" during the president-elect's first term.

Politico reports:

Though no final decisions have been made, Trump could start, as early as Day 1 of his term, to impose tariffs through executive action under the International Emergency Economic Powers Act, a law that gives the president broad authority to take trade actions. Other tariff actions Trump is expected to take are being explored under laws he used during his first term to impose duties on China and other countries. Those latter options would require months of investigation by federal agencies, people close to Lighthizer caution, and the exact sequencing of actions is still being discussed.

Vox reported earlier this week thatTrump's proposed tariff policy "alone could raise consumer prices by as much as 5.1 percent and could diminish US economic growth by up to 1.4 percent," according to The Budget Lab at Yale.

Still, Vox notes that "the legal arguments in favor of allowing Trump to unilaterally impose high tariffs are surprisingly strong. Several federal laws give the president exceedingly broad power to impose tariffs, and the limits imposed by these statutes are quite vague."

Reprinted with permission from Alternet.

Likely Trump Treasury Appointee Would Wreak Havoc On World Economy

Likely Trump Treasury Appointee Would Wreak Havoc On World Economy

Many Democrats, political and legal experts have warned that a second Donald Trump presidency would likely mean the end of American democracy, based on his proposed policies like mass deportation through force of the National Guard, and using the Department of Justice to target his political enemies.

In a Sunday, August 4 report published by Politico, reporter Gavin Bade highlights another aspect of a second presidency that would also be a danger to democracy — former top Trump trade official, Robert Lighthizer.

Foreign Policy columnist Edward Alden, in May, wrote an article about Lighthizer, titled, "The Man Who Would Help Trump Upend the Global Economy, asserting: "As President Donald Trump’s trade representative, he turned the United States away from six decades of support for a rules-based, multilateral trading system and toward a robustly nationalist approach."

Alden added:

Even as most of Trump’s former officials have denounced him as unfit to be president again, Lighthizer has kept the faith—seeing in Trump, as many others do, a flawed vessel for some greater public good. He remains one of Trump’s top policy advisors in the 2024 campaign and would be set for a bigger job—likely Treasury secretary—if Trump wins in November. Lighthizer’s mission of transforming not just U.S. trade policy but broader U.S. international economic policy is just getting started.

Likewise, Bade warns in his article, "If Trump wins in November, Lighthizer is poised to pursue an even more disruptive set of policies next year, one that is already raising alarms in foreign capitals, on Wall Street and among many economists."

Additionally, Bade reports:

According to four former Trump officials, granted anonymity to speak about sensitive personnel issues, Lighthizer is a candidate for a number of senior roles in a second Trump administration, from Treasury or Commerce secretary to a second turn as USTR, or as an economic adviser or even White House chief of staff. His profile rose further last month with the selection of Ohio Sen. JD Vance as Trump’s running mate, a committed protectionist who aligns with Lighthizer ideologically.

The Politico reporter also notes that Lighthizer isn't only friends with Republicans.

"Even Democrats on Capitol Hill, who fought Trump doggedly on other policies, often found common ground with Lighthizer," Bade notes.

"But even some lawmakers who like Lighthizer personally, like [Rep. Richard] Neal (D-MA) and [Senate Finance Chair Ron] Wyden (D-OR), are wary of his more aggressive second-term agenda, which many economists warn could spike inflation and threaten the American economy’s leading role among world nations."

Neal told Politico, "Those plans, including higher tariffs across the board and moves to decrease the value of the U.S. dollar, entail 'an awful lot of risk without a proper assessment.'"

Reprinted with permission from Alternet.

Perdue Using Taxpayer-Funded USDA Podcasts To Promote Trump

Perdue Using Taxpayer-Funded USDA Podcasts To Promote Trump

Reprinted with permission from Media Matters.

Department of Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer used a taxpayer-funded USDA podcast to suck up to their boss, President Donald Trump, and praise his agricultural trade policies, which have left farmers hurting. 

Lighthizer joined Perdue for the latest broadcast of the USDA’s monthly podcast The Sonnyside of the Farm, which purports to cover “the issues facing America’s farmers, ranchers, producers and foresters.” The podcast has recently featured former White House press secretary Sarah Huckabee Sanders and Fox News contributor Newt Gingrich. 

Perdue peppered his podcast with Lighthizer, the president’s top trade policy adviser, with his signature praise of Trump. Introducing his guest, Perdue described Trump as “an unapologetic advocate for America around the globe” and said that he wanted to congratulate Lighthizer because he “can’t think of anyone who can support President Trump better than you have in these trade negotiations. You’re tough and you reinforce his ability to use leverage … You’ve been quite a sidekick to the president.” 

Turning to the topic of farmers, Perdue said, “I don’t think people would understand how much [Trump] really cares” and later said that farmers appreciate Trump’s “toughness” and that in return, Trump sees in farmers “the values that embody the American spirit, who really built this country.” Lighthizer agreed, saying that Trump also “appreciates” that “so many farmers have basic values, the kind of values that not only made the economy, but made our communities.” Lighthizer also told an anecdote about Trump supposedly caring about farmers more than anything else and said Trump refers to them as “his farmers and ranchers.”

When Lighthizer praised Trump for being willing to “stir it up” on trade, Perdue responded by saying that was “the amazing thing about President Trump” before praising the president’s “trading acumen.” Lighthizer added that working with Trump is “a hoot,” that he has “been kind of a consistent, steady leader,” and that the two have never had a disagreement. 

Perdue ended the show by saying to Lighthizer, “I want to applaud you on behalf of the United States of America for supporting our president,” and added that “like the president said, I’m not tired of winning yet.”

On the issue of farmers affected by Trump’s trade war with China, Lighthizer said, “On this question of the farmers, and the farmers being being bothered by some of things we’ve done, and, as you say, it’s now been proven that we were right and the numbers are coming in.”

But that’s not the case. In 2018, Trump started a trade war with China, imposing additional tariffs on the importation of $34 billion of Chinese goods. In response, China placed tariffs on U.S. agricultural products such as soybeans and dramatically reduced importation of U.S. soybeans in favor of increased purchases from other countries, in particular Brazil. The trade war caused serious additional financial problems for soybean farmers. (Disclosure: This author’s family farms corn and soybeans in Illinois.) 

Overall, Trump’s trade war with China has been absolutely devastating for U.S. farmers. In January, Trump touted his signing of the so-called “phase one” trade deal with China as evidence that he was bringing the trade war to a successful conclusion. But as Vox reported, the deal “stops short of the comprehensive trade and reform agreement the Trump administration wanted when it launched its trade war with China in 2018” and “it’s still not clear if China can or will totally fulfill this obligation to buy US products, and even if it does, the guarantee is only for two years.” Writing for The Hill, Daniel Griswold, a senior research fellow for the conservative Mercatus Center, called the trade targets in the “phase one” deal “unrealistic” given that they would require an “unprecedented” increase in exports to China. 

In any case, significant damage has already been done. Writing at Forbes on the “crushing truth” about Trump’s trade war, Erik Sherman noted that because of the standard business model for small farmers in the U.S., “small family farms (90 percent of all family farms) are in deep trouble normally” and that “these latest shocks are helping to drive up farm bankruptcies and farmer suicides.”

Sherman said relief given to farmers as a result of the trade war in the form of subsidies has not been equitably distributed, noting that “the biggest [farm] organizations sucked up the bulk of the money, putting small farmers ever further behind.” The release of the Sonnyside of the Farm episode comes days after Politico published an extensive expose about dysfunction under Perdue at USDA. Of many of the issues discussed in the report, Politico delved into payments to farmers, noting that “many in the industry” considered them insufficient to offset losses from the trade war, including corn farmers — who “were outraged about receiving just one penny per bushel under the 2018 trade aid plan” compared to an average 44 cent per bushel drop in corn prices — and blueberry farmers,who were alsoaffected by the trade war but received no subsidies.

Perdue hosted the inaugural episode of the USDA podcast in October, when he traveled to Arkansas to meet with Sarah Huckabee Sanders, who is likely to run for governor in that state. They discussed farm policy only minimally during the podcast, and only in defense of Trump’s policies. Instead, Perdue and Sanders spent the majority of the episode heaping lavish praise upon Trump. 

In December, Perdue hosted Gingrich for an episode in which the two attacked people who receive food stamps, with Perdue suggesting they don’t contribute anything to society. The cruelty has endured on that front, with the Trump administration pushing a proposed USDA rule that could leave more than 3 million people without access to the Supplemental Nutrition Assistance Program and cause nearly 1 million children to lose their automatic enrollment in a program that provides breakfast and lunch at school. 

Trump Team Struggles For Cohesion On Tougher China Policy

Trump Team Struggles For Cohesion On Tougher China Policy

WASHINGTON (Reuters) – The incoming U.S. administration’s tough talk against China has set the stage for showdowns on everything from security to trade and cyberspace, but contradictory signals are sowing uncertainty over how far President-elect Donald Trump is prepared to go in confronting Beijing.

Highlighting the contested South China Sea as a potential flashpoint, Trump’s Secretary of State nominee Rex Tillerson threw out an explosive challenge to Beijing on Wednesday by calling for it be denied access to artificial islands it is building in the strategic waterway.

A Trump transition adviser told Reuters that Tillerson, Trump’s pick to be America’s top diplomat, did not mean to suggest the new administration would impose a naval blockade, which would risk armed confrontation with China, something the new administration was not seeking.

But another official authorized to speak on behalf of the transition team pushed back on that view, saying Tillerson “did not misspeak” when he said China should be barred from its man-made islands.

Amid the conflicting signals on policy, the team appears to be making progress on plans for a major naval build-up in East Asia to counter China’s rise.

The transition adviser told Reuters about specifics under consideration, such as basing a second aircraft carrier in the region, deploying more destroyers, attack submarines and missile defense batteries and expanding or adding new bases in Japan and Australia.

They are also looking at installing “air force long-range strike assets” in South Korea, bordering China’s nuclear-armed neighbor North Korea, said the adviser who spoke on the condition of anonymity.

Trump, who succeeds President Barack Obama on Jan. 20, has vowed to greatly expand the U.S. Navy to 350 ships, but his transition team has not made clear how he will fund this, amid other massive spending plans.

China’s Foreign Ministry said it could not guess what Tillerson meant by his remarks, which came after Trump questioned Washington’s longstanding and highly sensitive “one-China” policy over Taiwan. But an influential Chinese state-run tabloid warned on Friday that blocking Chinese access to South China Sea islands would require the United States to “wage war.”

Trump’s pick for defense secretary, retired Marine General James Mattis, did not endorse Tillerson’s message on the South China Sea, which would seem at odds with Washington’s own longstanding commitment to freedom of navigation for all.

Asked about the remarks at his confirmation hearing on Thursday, Mattis said China’s actions in the South China Sea were part of a broader attack on the world order, but said the State, Defense and Treasury Departments needed to put together an integrated policy “so we are not dealing with an incomplete or an incoherent strategy.”

The conflicting messages underscore the incoming administration’s struggle in crafting an approach to one of the biggest foreign policy challenges facing Trump, who during his election campaign repeatedly bashed China, saying it was “killing” and “raping” America on trade.

RISKS OF RETALIATION

A former U.S. official who has informally advised Trump’s transition team said it may not have fully thought through the risks of any new U.S. military or trade pressure on China.

“We should not underestimate China’s willingness to retaliate in kind,” the former official, who spoke on condition of anonymity, told Reuters.

As part of a drive to protect American jobs, Trump has threatened to declare China a currency manipulator – even though economists say Beijing has been seeking to prop up, not weaken, its currency. He has also threatened to slap punitive tariffs on Chinese goods, risking a trade war that could hurt both countries and the global economy.

Trump has yet to name to his national security team high-level members with deep experience of the region, leading some analysts to question whether the new administration will have enough expertise to translate rhetoric on a more robust Asia policy into action.

But Trump has appointed two harsh China critics to his trade team – Peter Navarro, an academic who authored a book entitled “Death by China,” and Robert Lighthizer, a former Reagan administration official.

Trump advisers dismiss concerns their approach could prove risky or counterproductive, arguing that a “peace through strength” stance will put real muscle behind U.S. policy in the region after decades of under-resourcing due to U.S. distractions elsewhere in the world.

“Once we start correcting the military imbalance, I actually think you will get more cooperation rather than less,” the Trump adviser said.

Trump and his cabinet nominees have also vowed to step up pressure on China to rein in North Korea’s nuclear and missile programs, including by holding out the possibility of “secondary sanctions” on Chinese entities found to be violating sanctions on Pyongyang.

But analysts say China may be in no mood to cooperate if Washington is leaning on it on other issues. Those include U.S. pressure on Beijing to curb cyber hacking of U.S. entities.

China’s official responses to recent broadsides have been measured so far as they wait to see how Trump will act once he takes office.

“We have seen many conflicting messages from people within his prospective administration,” said Tu Xinquan, a trade expert at Beijing’s University of International Business and Economics.

But analysts say confronting Beijing over hot-button nationalist issues like Taiwan and the South China Sea could trigger strong reactions, especially in a year when President Xi Jinping is seeking to further consolidate power at a congress of the ruling Communist Party held every five years.

Zha Daojiong, a professor at Peking University, said the theme of clash of civilizations was becoming increasingly popular in Chinese circles and this was ominous.

“This does not bode well at all … And it means that the continued war drums from America on the South China Sea would not help matters at all.”

(Reporting by Matt Spetalnick and David Brunnstrom; additional reporting by Michael Martina and Christian Shepherd in Beijing; Editing by Yara Bayoumy and Mary Milliken)

IMAGE: U.S. President-elect Donald Trump listens to questions from reporters while appearing with Alibaba Executive Chairman Jack Ma after their meeting at Trump Tower in New York, U.S., January 9, 2017.   REUTERS/Mike Segar

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