War Erupts Between Trump's Two Top Trade Advisors Over China

Commenting on the latest, surprise escalation in the US-China trade ceasefire war, in which Trump unexpectedly announced 25% tariffs on up to $50BN in Chinese imports, prompting a fresh round of outrage and confusion in Beijing which was confident it was done with Trump's "flip-flopping", we observed that "the latest move by Trump signals the more hawkish wing of Trump’s trade team is trying to amplify its hard line, after Treasury Secretary Steven Mnuchin said this month that any talk of a trade war was suspended for now."

“Mnuchin’s ‘trade war on hold’ comments look to have been repudiated,” said Derek Scissors, a China analyst at the American Enterprise Institute in Washington. “It may be the administration has shifted somewhat to appease the Congress on the lifting of the ZTE sanctions.”

Which, we concluded, begs the question:

is China trade hawk dragon Peter Navarro back in Trump's good graces, and if so, is the countdown to Mnuchin's resignation officially on?

Then just moments later, none other than Peter Navarro himself confirmed that there may be another major battle behind the scenes, when in a rare public rebuke of Steven Mnuchin, Navarro - who the media recently relegated to D-grade advisor status when he was excluded from China talks after reportedly exploding at Mnuchin and Wilbur Ross two weeks ago - called Mnuchin's claim that the trade war with China was "on hold" an "unfortunate sound bite" and admitting that there’s a dispute that needs to be resolved.

“What we’re having with China is a trade dispute, plain and simple,” Navarro said in an interview broadcast Wednesday with National Public Radio. “We lost the trade war long ago" with deals such as Nafta and China’s entry into the World Trade Organization, he said.

Navarro also said that "we can stop them from putting our high tech companies out of business" and "buying up our crown jewels of technology.... Every time we innovate something new, China comes in and buys it or steals it."

Earlier this month, Mnuchin shocked markets and sent stocks surging after he said in a weekend televised interview that the prospect of a trade war with China was "on hold." It turns out, Mnuchin was merely saying whatever someone had told him to say.

The latest controversial remark from Navarro, who refuses to go gentle into that good night, came just days before U.S.  Commerce Secretary Wilbur Ross is scheduled to meet with his counterparts in Beijing to discuss ways to reduce the U.S.’s trade deficit with China, and - as noted earlier - follows Trump's surprise announcement that the U.S. is moving ahead with plans to impose tariffs on $50 billion of Chinese imports and curb investment in sensitive technology.

The renewed tariff threats could stop the planned talks and jeopardize a deal, the WSJ reported on Wednesday, citing sources in both countries. A team of U.S. officials was scheduled to arrive in Beijing on Wednesday. Asked about potential Chinese retaliation, especially on American farm goods, Navarro said “we’re ready for anything.”

As for the implications of this growing trade advisor war in Trump's inner circle, two weeks ago Bill Blain wrote that "Mnuchin’s Name Is Now High On The Trump Deadpool List" and come to think of it, it has been a while since Trump fired anyone...

Comments

Uchtdorf ZENDOG Wed, 05/30/2018 - 11:06 Permalink

By the way, Peter Navarro hangs out with Wilbur Ross, the Rothschild traitor, and believes that America should increase its military budget, because, you know, sometimes our trading partners don't want to engage in free trade with us.

And Trump supporters still haven't a clue how badly he's betrayed them.

In reply to by ZENDOG

FBaggins Uchtdorf Wed, 05/30/2018 - 12:17 Permalink

The Trump White House has become highly skilled at sending out mixed signals no doubt to appease all sides on controversial issues. Corporate outsourcing is killing the American economy with a $380 - $400 billion annual trade deficit with China alone, plus all the huge job, manufacturing, capital, R&D and technological losses. However, the banksters, multinationals, most of the rich, and the Walmart owner types are all heavily invested in China and various other Asian and Pacific-rim nations, and to them money has no borders; hence - free trade  and globalism and to hell with all the little people in their debt-ridden, over-spending Western nations, who cannot afford to be in the jet set. Trump will continue to shift some of the trade back with his eye on the next election, but at the same time he will be very careful not to bite too hard at the bankster-multinational hands that pull his puppet strings.

In reply to by Uchtdorf

BullyBearish Sliced into ribbons Wed, 05/30/2018 - 11:50 Permalink

i didn't vote for shrump because i saw that he was a banker-owned israhell-first zionist POS that would drive us deeper into debt, ensure that we are more hated globally, enable the EVIL satanyahoo into more killing of innocents and the deaths of many americans while tweeting a$$hole stupid tweets at the third grade level whenever he gets bored...

In reply to by Sliced into ribbons

Byte Me Wed, 05/30/2018 - 10:32 Permalink

The Chinese shouldn't have any problem with this "agreement renegotiation" stuff since it's inbuilt into their business culture.

I just love the way Trump appoints 'globalists' and 'establishment' types to have them duke it out in public.

Truth Eater Wed, 05/30/2018 - 10:42 Permalink

China got free factories, free funding, free technology, free trade secrets, free markets.  Anything that is not free will be a major burden and they will cry like babies.  What America got was rich fatcats in big companies, global behemoths like Walmart & Home Depot & Harbor Freight to wipe out small operations.  America also got a hollowed out economy lacking major manufacturing and its infrastructure. 

MusicIsYou Wed, 05/30/2018 - 10:49 Permalink

China can easily win a trade war with the U.S because western elites are whores for everything worldly, they love their standard of living more than anything. Western elites would never launch nukes because they are slutwhores for the earth and their standard of living. So if a nation can take out the U.S with conventional military weapons, then you win. Because there is no way those whores will launch nukes if they think some are coming at them.

Expat Wed, 05/30/2018 - 12:13 Permalink

Ha ha ha.  Trump White House too much of a pussy to go to war with a real country, so they go to war with each other!  WTF? Is this intramural war? 

Grandad Grumps Wed, 05/30/2018 - 13:24 Permalink

There IS NOT and NEVER WILL BE a trade war with China. Premier Xi has already agreed to convert China into a consumer economy and allow the international bankers to take control. The Chinese people don't like it, but there is nothing they can do.

Everything else, is just B/S ... Navarro, Mnuchin ... just B/S.

MoreFreedom Wed, 05/30/2018 - 17:54 Permalink

As I'd hoped, Trump has really been railing about unfair trade practices in other countries, and has just been threatening a trade war with no intentions to get into one.   That he hired both Navarro and Mnuchin is no surprise.  He's hired people of different minds to get their input and decide for himself.   Heck, it was just recently that Mnuchin was

His efforts to get foreign countries to remove their trade barriers (i.e., quit subsidizing certain politically connected rich manufacturers in their country) will mostly help citizens in those countries, but also helps US exporters.  

Free trade makes the world a better place.  Except of course, for the politicians and their rich friends who don't want foreign competition.  Freedom after all, is what made the USA prosperous, and that includes individuals' freedom to trade with foreigners, without paying tariffs to the government. 

allthegoodname… Thu, 05/31/2018 - 15:32 Permalink

Better understand, China, is a Communist Nation that means China is a Rothschild possession.  Russia too is a Rothschild possession, all the talk about war is more about the weather than it is about trouble with the trade or the money.

Rothschild Banking controls all the currency in the world, Crypto too, no getting around the King and his Court, ie, the Chosen Ones.

What the near future holds for life on Earth is something that will make all our other concerns seem to be nothing, nothing at all.

It may be soon when we beg for Chemtrails and GMO food, for something to dim the Sun, something to eat, at least, a bite or two.  A drink of water...  

Look around yourself, you don't think all this insanity today is not without a reason, not for a reason, the rules turned upside down, craziness unprecedented in all the history of our lives. 

For a reason, maybe because it just doesn't matter anymore, so that all the Suits and Uniforms want is something to distract us from the coming events, not pleasant, not at all.

Let's hope my nightmares are just dreams and nothing else.