Trump "Overrules" Cabinet, Prepares To Unleash Global Trade War

Tyler Durden's picture

While one of Trump's recurring campaign promises was that he would "punish" China and other key US trade counterparties if elected, for taking advantage of free-trade by imposing steep tariffs and duties on foreign imports to "level the playing field", the President's stance changed drastically after the election, U-turning following his amicable meeting with China's president Xi Jinping in March, but mostly as a result of pressure by his ex-Goldman advisors to keep existing trade arrangements in place and not "rock the boat."

Now, all that may be about to fall apart.

According to Axios, behind the constant media scandals, "one of the most consequential and contentious internal debates of his presidency unfolded during a tense meeting Monday in the Roosevelt Room of the White House" where with "more than 20 top officials present, including Trump and Vice President Pence, the president and a small band of America First advisers made it clear they're hell-bent on imposing tariffs — potentially in the 20% range — on steel, and likely other imports."

In other words, Trump - true to his campaign promises - is set to launch a global trade wars after all, one where then main country impacted would be China, however the collateral damage would extend to Canada, Mexico, Japan, Germany and the UK.

And what may be even more striking is that Trump overruled his cabinet, as "the sentiment in the room was 22 against and 3 in favor — but since one of the three is named Donald Trump, it was case closed." Axios adds that while "no decision has been made, the President is leaning towards imposing tariffs, despite opposition from nearly all his Cabinet."

Needless to say, if Trump follows through, the outcome would have a profound effect on U.S. economic and foreign policy; Trump will formalize his decision in the coming days.

What is also notable, is that this is the first time  - so far off the record - in which Trump has openly defied his Wall Street establishment advisors, while siding with the Bannon "populist" front:

In a plan pushed by Commerce Secretary Wilbur Ross, and backed by chief strategist Steve Bannon (not present at the meeting), trade policy director Peter Navarro and senior policy adviser Stephen Miller, the United States would impose tariffs on China and other big exporters of steel. Neither Mike Pence nor Jared Kushner weighed in either way.

 

Everyone else in the room, more than 75% of those present, were adamantly opposed, arguing it was bad economics and bad global politics. At one point, Trump was told his almost entire cabinet thought this was a bad idea. But everyone left the room believing the country is headed toward a major trade confrontation.

As Axios adds, the reason why Trump defied the guidance of his Wall Street-derived advisors is Trump's base "which drives more and more decisions, as his popularity sinks — likes the idea, and will love the fight."

This, more than anything, should send shivers down Wall Street's spine, because for all his bluster and outrageous media outbursts, Trump had largely been in Wall Street's pocket so far.

Not anymore, and with Trump's base hell bent on punishing the 1% (which includes Wall Street), if Trump indeed launches global trade war, his future decisions will become increasingly market unfriendly.

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TheObsoleteMan's picture

A person's appearence speaks VOLUMES about a person. It doesn't tell the whole story, but people with psychological issues tend to exhibit them in the manner of their dress and hair style, make-up, etc.

robertocarlos's picture

Bottom line is you got your package delivered.

yellowsub's picture

You're one of those who will gladly let a person dressed in a nice suit to blindly rob you.

You're tough on your own but fail to hold your pyschotic pols and Wall Street bankers accountable what they have and continue to do all because they look normal...

I would say he is at least drug free to be able to drive their truck, which you can't say the same for them.  

 

Apeon's picture

&you speak from ignorance, as you do not know  who you are speaking about!

Free Man's picture

There cannot be truly free trade if the other side is putting up obstacles to our products and creating advantages for themselves, which is exactly what has happened.

 

strickler's picture

I want the tariffs to be high enough to pay for the entire US Federal Budget.  Then I want the income and payroll taxes repealed.

JailBanksters's picture

One way or another Trump is going to get a War, or two.

Be it a Trade War, a Currency War, a Sanctions War, a Nuclear War or a plain old fashioned World War.

Maybe Obama should give his Nobel Peace Prize to Trump.

Tonterias's picture

Trump is trying to scare China

 

JUST BLUFFING

robertocarlos's picture

How come when I have a problem with women they always tell me "You have a small penis"? Can I sue?

StinkyLebinowitz's picture

The media hates him, DC hates him, Wall St hates him, the globalists hate him.... shame those clowns didn't elect him, his campaign promises might have been different. Get ready, Trump is going to tick off one more of the promises that got him elected! 

DeathingerStar's picture

If Pence was a "nay"... there is probably an effigy of Trump somewhere with red concentric circles being painted on...

Millennial Permabear's picture

The millennials just got their arts degrees, and now Trump expects them to whip steel? Bold move cotton

VisionQuest's picture

"...if Trump indeed launches global trade war, his future decisions will become increasingly market unfriendly..."

The Wall Street sociopaths use the word m-a-r-k-e-t as if every man, woman & child in the U.S. of A. were participating and profiting equitably from the exculsive Wall Street ponzi the sociopaths built on "derivitive values." I hope Trump turns Wall Street into a theme park with a lot of cool rides & life-like dioramas showing visitors from the heartland how near they came to having their whole country ruined by a lot of greedy sociopath Marxists. Saaay, Berkeley, California could be a theme park, too; telling the same story but from a more philosophical perspective.

overmedicatedundersexed's picture

the free traders posting here; admit free trade has hurt american jobs, but but in a few generations china wages will rise and balanced trade will return..obvious hopium ..

destroy the infrasturcture of manufacturing ...for a few generations of american' s..now that has" no" consequences ..oh wait!!

davos and nwo CFR mega corp internationalists fight for ;free trade and nafta type agreements cause they are looking out for the ave american, is what these free trade boosters must accept as true to keep their mantra of it's  a tax and will hurt ave americans- tarrifs bad view..yet many sceptics here are not so sure..(for good reason)..as we see the despiration of main street as nafta has hit us these last 15 yrs..

debt has made the effects less, but debt alone cannot keep the flood of negative effects of free trade on our economy ..for main street..wall street and mega corps/banks are doing fine.

sarz's picture

Wonder what PC Roberts has to say about this. He's been calling for this sort of policy for ages. 

Drop-Hammer's picture

Cry Havoc!, and let loose the dogs of trade war!  MATGA!