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Westlake Legal Group > Posts tagged "Trump, Donald J" (Page 43)

What Confrontation? Mexico Seeks a Compromise With Trump

MEXICO CITY — President Andrés Manuel López Obrador of Mexico said Friday that he would avoid getting into a confrontation with President Trump over his threats to impose tariffs on Mexico unless it stopped migrants from crossing into the United States.

Mr. López Obrador said that he was dispatching a delegation to Washington, led by his foreign minister, to try to dissuade Mr. Trump from carrying out the threat.

Mr. Trump said Thursday that he would impose a 5 percent tariff on all goods from Mexico starting June 10, and then gradually increase the tariffs to 25 percent unless the flow of undocumented migrants crossing through Mexico and into the United States “is remedied.”

The Mexican president said that his envoys would present evidence to American officials that they have already been trying to slow the tide of migration, in the hope that diplomacy might quell the brewing storm.

“I want to insist that we are not going to fall to any provocation,” Mr. López Obrador said. “We are going to act with prudence, with respect for the authorities of the United States, with respect for President Donald Trump.”

He added: “We think that all conflicts in bilateral relationships must be resolved with dialogue, with communication.”

He said he anticipated that in time, Mr. Trump would abandon his threat, “because these measures don’t suit the Mexicans nor the Americans.”

The tariffs are only the latest measure that Mr. Trump has threatened in response to what he calls an insufficient effort by the Mexican government to curb the flow of migrants, most of them Central Americans fleeing poverty and violence.

ImageWestlake Legal Group merlin_153730341_40719f75-aa13-4a09-a406-cd4119ca6e93-articleLarge What Confrontation? Mexico Seeks a Compromise With Trump United States International Relations Trump, Donald J Mexico Lopez Obrador, Andres Manuel International Trade and World Market Immigration and Emigration Customs (Tariff)

Migrants lining up for water in a makeshift camp in April in Mapastepec, Chiapas, Mexico.CreditBrett Gundlock for The New York Times

In recent months, Mr. Trump has repeatedly warned that he might close the southwest American border as a punitive measure to coerce the Mexican authorities to increase migration enforcement. In April, he threatened to impose a 25 percent tariff on cars assembled in Mexico.

Each time, Mr. López Obrador has adopted a measured posture, urging dialogue and counting on mutual economic interest to prevail. And so far, his bet has paid off, as Mr. Trump has stepped back from his threats.

Mr. López Obrador said Friday that while his administration could employ “legal mechanisms” to forestall tariffs, he would eschew that tactic — for now.

“We want there to be dialogue, understanding, and that an agreement is arrived at without the need for a legal process,” he said. “What we want is to convince, persuade that free trade is convenient” to both countries.

Mr. López Obrador took office in December, promising a shift away from what he said was an enforcement-first migration policy and toward a more humanitarian approach.

During his first few months in office, detentions and deportations by the Mexican authorities fell sharply, even as the flow of migrants from Central America and elsewhere surged.

Initially, his administration largely accommodated the enormous migrant caravans that made their way north from Central America toward the American border, doing little to stop them from crossing Mexico’s highly porous southern border and allowing them to travel essentially unfettered across Mexican territory.

His administration even initiated an effort to issue expedited humanitarian visas to Central Americans, which allowed them to work and travel anywhere in Mexico.

But the welcoming approach appeared to spur even more migration out of Central America, with many migrants seeking to use Mexico as a way station on their way to the United States. The influx overwhelmed the resources of local governments along Mexico’s northern and southern borders and tested the patience of residents.

In recent weeks, under pressure from Mr. Trump as well as from the local Mexican authorities, the López Obrador administration appears to have been ramping up enforcement efforts, getting tougher on the caravans, rounding up more undocumented migrants and increasing deportations.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump’s New Tariff Threat Roils Markets

Westlake Legal Group 31Markets-1-facebookJumbo-v2 Trump’s New Tariff Threat Roils Markets Trump, Donald J Stocks and Bonds Mexico International Trade and World Market Customs (Tariff)

Investors on Friday limped to the end of the worst month for stocks in 2019, as a new tariff threat by President Trump against Mexico and a possible escalation of America’s technology standoff with China sent financial markets lower again.

Stocks on Wall Street fell about 1 percent, following declines in Europe and parts of Asia. The drop was felt across the board: Investors dumped industrial and machinery stocks, shares of consumer products companies, and those of giant tech companies.

Prices for oil and other industrial commodities also tumbled. Shares of automakers, with complicated production networks that stretch across the border between the United States and Mexico, were hit particularly hard.

Investors continued their recent push into the safety of government bonds, reflecting concern about the prospects for the global economy amid the various geopolitical standoffs.

The sell-off in stocks was triggered by President Trump’s threat on Thursday to levy new tariff on all Mexican imports, as well as China’s announced plans to release an “unreliable entity list” of foreign firms in retaliation for the Washington’s ban on component sales to smartphone giant Huawei.

“Both of them just sort of suggest appetite or willingness to ramp up the pressure or take next steps in the trade war,” said Stuart Kaiser, an analyst at UBS in New York.

The slide was a fitting finale to a painful May. At current levels, the S&P 500 is set finish the month down roughly 6 percent, its worst performance since an ugly sell-off that sent the broad index of American stocks down 9 percent in December.

[Read more about President Trump’s escalation of protectionist trade policies.]

All month long, investors have been contending with the risk that the ratcheting up of trade tensions between the United States and China would threaten corporate profits and, if tariffs are expanded, consumer spending.

But they had been able to take some solace from the idea that trade relations with Mexico and Canada might be improving. The Trump administration had been on a drive to enact a new three-way trade agreement with both countries, to replace the North American Free Trade Agreement, and last week removed taxes on steel imports from both countries as part of that effort.

Then Mr. Trump dashed investors’ hopes by promising late on Thursday to put a 5 percent tariff on all imports from Mexico unless its government did more to to stem the flow of migrants across the United States border.

The penalty, which Mr. Trump said will increase every month until it reaches 25 percent, could affect everything from produce to car parts. Some factory owners in the United States, who had already seen their supply chains upended by tariffs on imports from China, had been looking to Mexico as a manufacturing alternative.

[Read more about how the trade war is changing supply chains.]

The reaction on Friday was sweeping and indicative of Mexico’s role in the global supply chain. Japanese automakers, many of whom make their goods in Mexico to be shipped elsewhere, took some of the biggest hits during the market drop on Friday.

Shares of Toyota fell 2.9 percent, while Nissan fell 5.3 percent and Honda fell 4.3 percent; the STOXX Europe 600 automobiles and parts index was down nearly 3 percent. In the United States, shares of General Motors fell more than 4 percent and Ford dropped more than 2 percent.

Constellation Brands, the brewer of Corona and other Mexican beer brands, was down roughly 7 percent. JPMorgan Chase analysts estimate that more than 70 percent of its sales come from products imported from Mexico.

Despite the re-emergence of trade hostilities, some investors found it more troubling that Beijing is compiling a list of foreign companies that “do not follow market rules, violate the spirit of contracts, blockade and stop supplying Chinese companies for noncommercial reasons, and seriously damage the legitimate rights and interests of Chinese companies.”

[Read more about the “unreliable entities list.”]

The Chinese ministry of commerce did not name companies on the list or say what would happen to them, but the move is an apparent retaliation against the Trump administration’s moves to deny American technology to Chinese companies.

But the announcement undercut some investor hopes that, despite Trump administration’s ban on Huawei announced earlier this month, China would refrain from a direct response to the American blacklist, as it continued to pursue some sort of resolution to the tension between the two countries.

“It does look like they are preparing for a sort of more protracted trade conflict,” said Maneesh Deshpande, a strategist at Barclays in New York.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

How Trump’s Trade War Is Being Fought Around the World

President Trump on Thursday threatened to hit Mexico with new tariffs, escalating his immigration fight with America’s largest trading partner. And with that, he showed, once again, that he’s ready to employ trade as an all-purpose tool for his policy goals.

Mr. Trump is juggling multiple trade conflicts today, with allies and rivals alike. His demands, often first disclosed through Twitter, have caught trading partners off guard.

Just eight months ago, Mr. Trump’s negotiators struck a deal with Mexican and Canadian officials that they said would replace the North American Free Trade Agreement. His new threat comes even before Congress has approved the deal, and signals to American partners that continuing disputes and threats are now the norm in global trade — at least as long as Mr. Trump is in office.

Of course, Mexico isn’t Mr. Trump’s only target. Far from it. In fact, what he’s taking on is broader than any particular country. He is challenging the post-World War II consensus that free trade enriches the world.

Here’s a look at the many fronts in Mr. Trump’s war on the world’s established trade relationships.

ImageWestlake Legal Group merlin_155582925_021162be-e06c-40d2-9cf1-f47c801f1b4a-articleLarge How Trump’s Trade War Is Being Fought Around the World World Trade Organization Trump, Donald J North American Free Trade Agreement Mexico International Trade and World Market European Union Canada Abe, Shinzo

A port in Shanghai. Trade talks between the United States and China broke down in early May.CreditLam Yik Fei for The New York Times

President Trump with Prime Minister Shinzo Abe of Japan in April. Mr. Trump says he will impose tariffs on Japanese auto imports unless the two sides reach a trade deal.  CreditAl Drago for The New York Times

President Trump has called the relationship between the United States and Japan “a treasured alliance,” and says he enjoys a close relationship with Prime Minister Shinzo Abe. That hasn’t exempted Tokyo from his threats.

Though he has postponed his decision, Mr. Trump still says he will put tariffs on Japanese auto imports unless the two sides reach a trade deal. The White House wants greater access to the Japanese market for American farmers and ranchers. He also wants Japanese automakers to build more factories in the United States so more cars can be assembled by American workers.

Striking a deal is crucial for Mr. Abe, whose yearslong effort to rev up Japanese growth faces a major challenge from an economic slowdown in China, a major buyer of Japanese equipment and goods. Adding to the political pressure on Mr. Abe, Mr. Trump has said any deal would wait until after Japanese elections in July.

Cargo trucks in Tijuana, Mexico, line up to cross the border into the United States. Mexico is now the largest trading partner for the United States. CreditGuillermo Arias/Agence France-Presse — Getty Images

The Mexican conflict was supposed to be over.

But on Thursday, Mr. Trump reignited trade tensions by threatening to impose tariffs on Mexico beginning June 10 unless it stops the flow of undocumented immigrants across the border into the United States.

If he follows through on the threat, severe disruptions could be felt on both sides of the border. Thanks in part to the tariffs on China, Mexico is now the largest trading partner for the United States, accounting for more than $150 billion in trade in the first three months of this year, according to IHS Markit Global Trade Atlas, a data provider.

Trade has already been hindered because of shifts in how American personnel police the border, leading to longer waits. And just as he has with Japan, Mr. Trump has also threatened to put tariffs on imports of cars made in Mexico. A number of American and Japanese auto factories are based in Mexico, with supply chains that run deeply into the United States.

Mr. Trump’s threat calls into question the fate of the United States-Mexico-Canada Agreement, the successor to North American Free Trade Agreement, which was hammered out late last year between the three countries. Already the United States has lifted tariffs on metal imports from both Mexico and Canada as a way to get the deal ratified. But Congress has signaled some skepticism, showing how Mr. Trump — whatever the fate of his various conflicts — has changed the tenor of the discussion on trade in the United States.

A worker welding a steel pipe at factory in Santa Maria degli Angeli, Italy.CreditGianni Cipriano for The New York Times

The prospect of punishing tariffs from the United States has loomed for several months after steel and aluminum tariffs imposed last year rattled American allies in Europe.

President Trump has contended that imports of foreign cars and car parts are causing harm to the American automobile industry and threatening national security.

“The European Union treats us, I would say, worse than China. They’re just smaller,” President Trump said in May. “They send Mercedes-Benzes in here like they are cookies.”

He has threatened tariffs of 25 percent on the millions of foreign cars and car parts imported by the United States each year. The move could inflict damage in states like Alabama and South Carolina, which are home to big Mercedes-Benz and BMW assembly plants.

Earlier this month, the White House put off a decision on imposing these tariffs, leaving six months to negotiate a trade deal to address the problem.

The United States was already struggling in negotiations with the European Union, which has refused to consider demands to allow more American agricultural products into Europe. The Trump administration says that a deal without agriculture would not pass Congress, but populist politicians in Europe have seized on some American products and practices — like the use of chlorine to sterilize chickens — to justify retaining trade barriers.

Countries like France and Belgium have also balked at joining talks because of the Trump administration’s refusal in 2017 to sign a global pact on climate change. And leaders of the Green coalition in the European Parliament have said that they will not sign trade agreements with countries that have not ratified the climate accord.

A dairy farm in Le Roy, N.Y. A proposed trade deal, the successor to Nafta, is expected to increase American dairy exports to Canada.CreditLibby March for The New York Times

Last fall President Trump had appeared to reach a settlement over trade differences with Canada with the United States-Mexico-Canada Agreement, the revised Nafta. Among other things, the pact is supposed to make it easier to sell American dairy products in Canada. But Mr. Trump’s announcement on Thursday could derail his efforts to secure congressional approval of the pact.

Canada has been in an uncomfortable middle ground in the trade war between the United States and China. It became the center of a diplomatic row after Canadian authorities arrested Meng Wanzhou, a top executive at the Chinese tech company Huawei who was wanted on fraud charges by United State officials. Perhaps in retaliation, China has arrested two Canadians and accused them of espionage, and has placed restrictions on some Canadian agricultural products.

“China and the United States have escalated their dispute, and Canada has been caught in the crossfire,” Carolyn A. Wilkins, senior deputy governor at the Bank of Canada, said in a speech on Thursday.

Mr. Trump has implied he would intervene in Ms. Meng’s extradition to the United States if it would help Washington land a trade deal with Beijing.

But the new North American trade deal signed this past fall also included a clause, known as the “China clause,” which many saw as a blatant push to block any free trade deal between China and Canada.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump Bets the U.S. Economy on Tariffs

Westlake Legal Group merlin_155352615_df8162a9-56e8-4f44-88e7-ba26cfaecc36-facebookJumbo Trump Bets the U.S. Economy on Tariffs United States Economy Trump, Donald J Taxation Protectionism (Trade) Presidential Election of 2020 Powell, Jerome H International Trade and World Market Federal Reserve System Customs (Tariff)

WASHINGTON — President Trump is upending the United States economy, and perhaps jeopardizing his re-election prospects, with an abrupt escalation of protectionist trade policies.

Mr. Trump announced on Thursday that he would soon impose a 5 percent tariff on imports from Mexico, which could quickly grow to 25 percent, unless Mexican officials stop the flow of immigrants across America’s southern border.

The move capped a furious month of cross-border tariff threats that has rattled investors and raised economists’ concerns about a slowdown in global growth. Just three weeks ago, Mr. Trump increased tariffs on $200 billion worth of Chinese goods and started the process to tax nearly everything China sends into the United States. And he said the United States was prepared to impose tariffs on autos from Europe and Japan in six months, setting a tight deadline for those governments to reach trade deals with the Trump administration.

Stock prices continued to slide on Friday after a monthlong retreat, with the S&P 500 down more than 6 percent this month.The bond market is flashing worrying signs of a global recession. On Thursday, a daily index of economic policy uncertainty, compiled by economists at Stanford University, the University of Chicago and Northwestern University, spiked to levels not seen since the prolonged government shutdown at the start of this year.

“We don’t know what straw will break the camel’s back here, but Trump is looking like he wants to try to find out,” Tim Duy, an economist at the University of Oregon, wrote in a blog post on Friday.

[Stocks were bracing for another wild ride on Friday.]

In the span of 30 days, Mr. Trump has enacted or threatened what amounts to a nearly $200 billion annual tax increase on American businesses and consumers, which would be enough to cancel out the average annual value of the tax cut package the president signed in late 2017. His actions have also further imperiled congressional passage of the new trade agreement he negotiated last year with Mexico and Canada, the United States-Mexico-Canada Agreement, which markets and business leaders have long presumed would win approval.

They are now reassessing. “While still possible, enactment of U.S.M.C.A. prior to the 2020 election would no longer be our base case if these tariffs are implemented as proposed,” Goldman Sachs economists wrote in a research note.

In a companion note, they said that the Goldman Sachs Analyst Index, which tracks manufacturing and service-sector activity, had fallen to a two-year low in May, with some sub-components pointing toward economic contraction and with the bank’s analysts suggesting “neutral-to-negative effects from this month’s trade war escalation.”

Markets have shown clear damage from the escalation. At the start of May, the American economy was riding a strong quarter of growth — 3.2 percent for the first quarter, which has since been revised down to 3.1 percent — and investors were bullish on the months to come. The Federal Reserve chairman, Jerome H. Powell, told reporters in a May 1 news conference that risks from unresolved trade negotiations “have moderated somewhat,” citing reports of progress on a deal between Mr. Trump and China.

Almost immediately thereafter, the China talks broke down, and Mr. Trump said he would increase tariffs until a deal was reached. Stocks are down more than 6 percent since then. On Wall Street, the Standard & Poor’s 500 index opened down more than 1 percent, following declines in Europe and parts of Asia. The Mexican peso also slid.

Mr. Trump, for his part, did not seem prepared to back down.

Analysts at financial firms, long sanguine on the likelihood that Mr. Trump’s trade provocations would resolve relatively painlessly for the economy, are growing unsure that is the case.

“Trump trade policy might well mean a permanent state of endemic uncertainty and instability in the global trading system,” Krishna Guha, vice chairman of Evercore ISI, wrote in a research note on Friday morning.

Mr. Trump continues to insist that tariff escalation poses no economic risk, saying tariffs boosted United States growth earlier this year. He wrote on Twitter in early May that tariff payments “are partially responsible for our great economic results” — a statement that little evidence supports.

Most economists warn that large and sustained tariff increases, along with likely retaliation from China and Mexico against American farmers and other exporters, will dampen global trade and drag on growth in the United States.

If tariffs on Mexican goods are fully put in place at 25 percent, it would be the equivalent of an $87 billion annual tax increase on the $347 billion of goods that America imported from Mexico last year. A tariff rate increase that Mr. Trump announced earlier in May on $200 billion in goods from China, to 25 percent from 10 percent, is equal to a $30 billion tax increase. His threatened 25 percent tariff on an additional $300 billion from China, which could take effect in late June or early July, would add an additional $75 billion.

The full force of China tariffs would hit a wide range of industries that rely on Chinese imports, including retailers, sportswear companies and cellphone dealers. The Mexico tariffs would slap car-buyers and an already reeling automobile industry, which saw slowing sales in April and has begun to lay off American workers this year. Automobiles and auto parts account for more than a quarter of America’s goods imports from Mexico; American automakers have heavily integrated their supply chains with suppliers and plants across the southern border.

As Deutsche Bank chief economist Torsten Slok wrote Thursday evening, “trade with Mexico is basically all about the supply chain, which essentially is all about cars.”

Share prices of car companies reflected the damage on Friday, with the stocks of General Motors and Ford down about 4 percent in morning trading.

Full tariff escalation could also hasten what data suggest is a global slowdown in manufacturing, imperiling growth here and abroad. Forecasters have cut their outlooks for second-quarter growth in recent weeks, based on weaker-than-expected data.

Sagging growth, in turn, could further drag down Mr. Trump’s approval ratings, which have slipped over the last month. Mr. Trump is banking on a strong economy to help his re-election prospects next year.

Federal Reserve officials were already closely watching Mr. Trump’s trade spats as a risk to the economic outlook — and potentially one that could push them toward cutting interest rates. The Fed’s vice chairman, Richard Clarida, said in a speech Thursday, before Mr. Trump’s tariff announcement, that while the economy was doing well, “if we saw a downside risk to the outlook, then that would be a factor that could call for more accommodative policy.”

Eric Rosengren, president of the Federal Reserve Bank of Boston, said in an interview in New York on May 21 that he thought markets were anticipating a trade deal with China at that point.

“But sometimes things happen, so we have to be concerned — that is a downside risk to my forecast,” he said. “My forecast is relatively optimistic, but it’s with the assumption that trade doesn’t become more disruptive, that financial markets don’t get very concerned about the likely outcome.”

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Elizabeth Warren Wants Congress to Ensure Presidents Can Be Indicted

Westlake Legal Group 31warren-facebookJumbo Elizabeth Warren Wants Congress to Ensure Presidents Can Be Indicted Warren, Elizabeth United States Politics and Government Trump, Donald J Presidential Election of 2020 Mueller, Robert S III Justice Department

For many Democrats, the aftermath of the Mueller report raised one central question: Would Robert S. Mueller III have charged President Trump with a crime if Justice Department policy had not prevented him from doing so?

On Friday, Senator Elizabeth Warren said the answer was yes.

Ms. Warren, who is seeking the Democratic nomination for president, proposed legislation she said was aimed at ensuring that “no President is above the law.” She called on Congress to pass a law clarifying that the Justice Department can in fact indict the president of the United States, while also renewing her call to begin impeachment proceedings against Mr. Trump.

“Mueller’s statement made clear what those of us who have read his report already knew: He’s referring Donald Trump for impeachment, and it’s up to Congress to act,” she said in a post on Medium.

“But impeachment isn’t supposed to be the only way that a President can be held accountable for committing a crime,” she said. “Congress should make it clear that Presidents can be indicted for criminal activity, including obstruction of justice. And when I’m President, I’ll appoint Justice Department officials who will reverse flawed policies so no President is shielded from criminal accountability.”

[Here’s how impeachment works and what you need to know about it.]

Ms. Warren, a Massachusetts Democrat, made her pitch two days after Mr. Mueller, the special counsel, broke his silence about his two-year investigation of Russia’s interference in the 2016 presidential election. At a brief news conference on Wednesday, he declined to clear Mr. Trump of obstruction of justice.

“If we had had confidence that the president clearly did not commit a crime, we would have said so,” Mr. Mueller said. He also explicitly noted that while Justice Department policy prohibits charging a sitting president with a crime, the Constitution provides another mechanism to formally accuse a president of wrongdoing — a clear reference to the ability of Congress to conduct impeachment proceedings.

Ms. Warren came out in favor of impeachment about a day after the Mueller report was released on April 18 — much more quickly than many of her competitors for the Democratic nomination, who treaded carefully around the issue for days.

While Mr. Mueller’s statement this week coaxed a larger share of the primary field into endorsing or at least strongly considering impeachment proceedings, Democratic House leaders such as Speaker Nancy Pelosi have been far more reluctant, instead reiterating the importance of having the special counsel testify before Congress.

The total number of House members in favor of an impeachment inquiry is now above 40, but Ms. Pelosi has insisted that it is necessary to build an “ironclad case” before heading down that road.

Ms. Warren has also leveled sharp criticism at Attorney General William P. Barr for his handling of the report’s release. She renewed that critique on Friday, saying Mr. Barr had “disgraced himself by acting like Trump’s personal defense attorney” while also pledging to “appoint an Attorney General who will protect the rule of law.”

Ms. Warren said that if elected president, she would appoint an assistant attorney general in charge of the Office of Legal Counsel who would reverse the opinion that argues that the president cannot be indicted. And she also said she would amend obstruction of justice statutes so that they would explicitly allow for indictment when a president abuses the powers of the office.

“If Donald Trump were anyone other than the President of the United States, he would be in handcuffs and indicted,” she said.

“No matter what he may think, Donald Trump is not a King,” Ms. Warren added. “No President is. And our democracy only works if everyone can be held accountable.”

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Markets Are Roiled by Trump’s Newest Tariff Threat

Westlake Legal Group 31Markets-1-facebookJumbo Markets Are Roiled by Trump’s Newest Tariff Threat Trump, Donald J Stocks and Bonds Mexico International Trade and World Market Customs (Tariff)

A new tariff threat by President Trump, this one against Mexico with the potential to disrupt the supply chains of a broad range of companies, sent financial markets lurching on Friday.

Stocks on Wall Street opened lower, following declines in Europe and parts of Asia, while the value of the Mexican peso weakened against the American dollar.

All month long, investors have been contending with the risk that the ratcheting up of trade tensions between the United States and China would threaten corporate profits and, if tariffs are expanded, consumer spending.

But they had been able to take some solace from the idea that trade relations with Mexico and Canada might be improving. The Trump administration had been on a drive to enact a new three-way trade agreement with both countries, to replace the North American Free Trade Agreement, and last week removed taxes on steel imports from both countries as part of that effort.

Then Mr. Trump dashed those hopes, by promising late on Thursday to put a 5 percent tariff on all imports from Mexico unless Mexico did more to to stem the flow of migrants across the United States border.

The penalty, which Mr. Trump said will increase every month until it reaches 25 percent, could affect everything from produce to car parts. Some factory owners in the United States, who had already seen their supply chains upended by tariffs on imports from China, had been looking to Mexico as a manufacturing alternative.

The reaction on Friday was sweeping and indicative of Mexico’s role in the global supply chain. Japanese automakers took some of the biggest hits during the market drop on Friday; many make their cars in Mexico to be shipped elsewhere.

Shares of Toyota fell 2.9 percent, while Nissan fell 5.3 percent and Honda fell 4.3 percent; the STOXX Europe 600 automobiles and parts index was down nearly 3 percent.

In the United States, shares of General Motors and Ford also opened sharply lower.

Also on Friday, China’s government said it is compiling a list of foreign companies that “do not follow market rules, violate the spirit of contracts, blockade and stop supplying Chinese companies for noncommercial reasons, and seriously damage the legitimate rights and interests of Chinese companies.”

[Read more about the “unreliable entities list.”]

The Chinese ministry of commerce did not name companies on the list or say what would happen to them, but the move is an apparent retaliation against the Trump administration’s moves to deny American technology to Chinese companies.

On Wall Street, technology stocks also declined.

The broad S&P 500 and the technology-heavy Nasdaq composite both dropped about 1 percent in early trading.

The Mexican peso weakened about 3 percent against the American dollar.

The FTSE 100 was down 1 percent by early afternoon in London. The CAC 40 in France had sunk 1.6 percent by the same time, and the DAX index in German had lost 1.8 percent.

In Japan, the Nikkei 225 index fell 1.6 percent.

Markets in China were muted, with the Shanghai Composite Index ending 0.2 percent lower. Hong Kong’s Hang Seng Index ended 0.8 percent lower.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Markets Are Roiled by Trump’s New Tariff Threat to Mexico

Westlake Legal Group merlin_155685234_d562bda5-fcb3-4264-bd7e-919c39669088-facebookJumbo Markets Are Roiled by Trump’s New Tariff Threat to Mexico Trump, Donald J Stocks and Bonds Mexico International Trade and World Market Customs (Tariff)

A new tariff threat by President Trump, this one against Mexico with the potential to disrupt the supply chains of a broad range of companies, sent financial markets lurching on Friday.

Stocks on Wall Street were set to open lower, following declines in Europe and parts of Asia, while the value of the Mexican peso weakened against the American dollar.

All month long, investors have been contending with the risk that the ratcheting up of trade tensions between the United States and China would threaten corporate profits and, if tariffs are expanded, consumer spending.

But they had been able to take some solace from the idea that trade relations with Mexico and Canada might be improving. The Trump administration had been on a drive to enact a new three-way trade agreement with both countries, to replace the North American Free Trade Agreement, and last week removed taxes on steel imports from both countries as part of that effort.

Then Mr. Trump dashed those hopes, by promising late on Thursday to put a 5 percent tariff on all imports from Mexico unless Mexico did more to to stem the flow of migrants across the United States border.

The penalty, which Mr. Trump said will increase every month until it reaches 25 percent, could affect everything from produce to car parts. Some factory owners in the United States, who had already seen their supply chains upended by tariffs on imports from China, had been looking to Mexico as a manufacturing alternative.

The reaction on Friday was sweeping and indicative of Mexico’s role in the global supply chain. Japanese automakers took some of the biggest hits during the market drop on Friday; many make their goods in Mexico to be shipped elsewhere.

Shares of Toyota fell 2.9 percent, while Nissan fell 5.3 percent and Honda fell 4.3 percent; the STOXX Europe 600 automobiles and parts index was down nearly 3 percent.

In the United States, shares of General Motors and Ford were also set to open sharply lower.

Also on Friday, investors had to contend with the news that Beijing is compiling a list of foreign companies that “do not follow market rules, violate the spirit of contracts, blockade and stop supplying Chinese companies for noncommercial reasons, and seriously damage the legitimate rights and interests of Chinese companies.”

[Read more about the “unreliable entities list.”]

The Chinese ministry of commerce did not name companies on the list or say what would happen to them, but the move is an apparent retaliation against the Trump administration’s moves to deny American technology to Chinese companies.

Technology stocks were also poised to decline. Semiconductor makers like Qualcomm, particularly dependent on supply chains in Asia, and Apple, which counts on China as a major market for its products, were both lower ahead of the start of regular trading.

The Mexican peso weakened about 3 percent against the American dollar.

The FTSE 100 was down 1 percent by early afternoon in London. The CAC 40 in France had sunk 1.6 percent by the same time, and the DAX index in German had lost 1.8 percent.

In Japan, the Nikkei 225 index fell 1.6 percent.

Markets in China were muted, with the Shanghai Composite Index ending 0.2 percent lower. Hong Kong’s Hang Seng Index ended 0.8 percent lower.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Markets Roiled by Trump’s New Tariff Threat to Mexico

Westlake Legal Group merlin_155685234_d562bda5-fcb3-4264-bd7e-919c39669088-facebookJumbo Markets Roiled by Trump’s New Tariff Threat to Mexico Trump, Donald J Stocks and Bonds Mexico International Trade and World Market Customs (Tariff)

A new tariff threat by President Trump, this one against Mexico with the potential to disrupt the supply chains of a broad range of companies, sent financial markets lurching on Friday.

Stocks on Wall Street were set to open lower, following declines in Europe and parts of Asia, while the value of the Mexican peso weakened against the American dollar.

All month long, investors have been contending with the risk that the ratcheting up of trade tensions between the United States and China would threaten corporate profits and, if tariffs are expanded, consumer spending.

But they had been able to take some solace from the idea that trade relations with Mexico and Canada might be improving. The Trump administration had been on a drive to enact a new three-way trade agreement with both countries, to replace the North American Free Trade Agreement, and last week removed taxes on steel imports from both countries as part of that effort.

Then Mr. Trump dashed those hopes, by promising late on Thursday to put a 5 percent tariff on all imports from Mexico unless Mexico did more to to stem the flow of migrants across the United States border.

The penalty, which Mr. Trump said will increase every month until it reaches 25 percent, could affect everything from produce to car parts. Some factory owners in the United States, who had already seen their supply chains upended by tariffs on imports from China, had been looking to Mexico as a manufacturing alternative.

The reaction on Friday was sweeping and indicative of Mexico’s role in the global supply chain. Japanese automakers took some of the biggest hits during the market drop on Friday; many make their goods in Mexico to be shipped elsewhere.

Shares of Toyota fell 2.9 percent, while Nissan fell 5.3 percent and Honda fell 4.3 percent; the STOXX Europe 600 automobiles and parts index was down nearly 3 percent.

In the United States, shares of General Motors and Ford were also set to open sharply lower.

Also on Friday, investors had to contend with the news that Beijing is compiling a list of foreign companies that “do not follow market rules, violate the spirit of contracts, blockade and stop supplying Chinese companies for noncommercial reasons, and seriously damage the legitimate rights and interests of Chinese companies.”

[Read more about the “unreliable entities list.”]

The Chinese ministry of commerce did not name companies on the list or say what would happen to them, but the move is an apparent retaliation against the Trump administration’s moves to deny American technology to Chinese companies.

Technology stocks were also poised to decline. Semiconductor makers like Qualcomm, particularly dependent on supply chains in Asia, and Apple, which counts on China as a major market for its products, were both lower ahead of the start of regular trading.

The Mexican peso weakened about 3 percent against the American dollar.

The FTSE 100 was down 1 percent by early afternoon in London. The CAC 40 in France had sunk 1.6 percent by the same time, and the DAX index in German had lost 1.8 percent.

In Japan, the Nikkei 225 index fell 1.6 percent.

Markets in China were muted, with the Shanghai Composite Index ending 0.2 percent lower. Hong Kong’s Hang Seng Index ended 0.8 percent lower.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump’s Trade War and Its Many Fronts

President Trump on Thursday threatened to hit Mexico with new tariffs, escalating his immigration fight with America’s largest trading partner. And with that, he showed, once again, that he’s ready to employ trade as an all-purpose tool for his policy goals.

Mr. Trump is juggling multiple trade conflicts today, with allies and rivals alike. His demands, often first disclosed through Twitter, have caught trading partners off guard.

Just eight months ago, Mr. Trump’s negotiators struck a deal with Mexican and Canadian officials that they said would replace the North American Free Trade Agreement. His new threat comes even before Congress has approved the deal, and signals to American partners that continuing disputes and threats are now the norm in global trade — at least as long as Mr. Trump is in office.

Of course, Mexico isn’t Mr. Trump’s only target. Far from it. In fact, what he’s taking on is broader than any particular country. He is challenging the post-World War II consensus that free trade enriches the world.

Here’s a look at the many fronts in Mr. Trump’s war on the world’s established trade relationships.

ImageWestlake Legal Group merlin_155582925_021162be-e06c-40d2-9cf1-f47c801f1b4a-articleLarge Trump’s Trade War and Its Many Fronts World Trade Organization Trump, Donald J North American Free Trade Agreement Mexico International Trade and World Market European Union Canada Abe, Shinzo

A port in Shanghai. Trade talks between the United States and China broke down in early May.CreditLam Yik Fei for The New York Times

President Trump with Prime Minister Shinzo Abe of Japan in April. Mr. Trump says he will impose tariffs on Japanese auto imports unless the two sides reach a trade deal.  CreditAl Drago for The New York Times

President Trump has called the relationship between the United States and Japan “a treasured alliance,” and says he enjoys a close relationship with Prime Minister Shinzo Abe. That hasn’t exempted Tokyo from his threats.

Though he has postponed his decision, Mr. Trump still says he will put tariffs on Japanese auto imports unless the two sides reach a trade deal. The White House wants greater access to the Japanese market for American farmers and ranchers. He also wants Japanese automakers to build more factories in the United States so more cars can be assembled by American workers.

Striking a deal is crucial for Mr. Abe, whose yearslong effort to rev up Japanese growth faces a major challenge from an economic slowdown in China, a major buyer of Japanese equipment and goods. Adding to the political pressure on Mr. Abe, Mr. Trump has said any deal would wait until after Japanese elections in July.

Cargo trucks in Tijuana, Mexico, line up to cross the border into the United States. Mexico is now the largest trading partner for the United States. CreditGuillermo Arias/Agence France-Presse — Getty Images

The Mexican conflict was supposed to be over.

But on Thursday, Mr. Trump reignited trade tensions by threatening to impose tariffs on Mexico beginning June 10 unless it stops the flow of undocumented immigrants across the border into the United States.

If he follows through on the threat, severe disruptions could be felt on both sides of the border. Thanks in part to the tariffs on China, Mexico is now the largest trading partner for the United States, accounting for more than $150 billion in trade in the first three months of this year, according to IHS Markit Global Trade Atlas, a data provider.

Trade has already been hindered because of shifts in how American personnel police the border, leading to longer waits. And just as he has with Japan, Mr. Trump has also threatened to put tariffs on imports of cars made in Mexico. A number of American and Japanese auto factories are based in Mexico, with supply chains that run deeply into the United States.

Mr. Trump’s threat calls into question the fate of the United States-Mexico-Canada Agreement, the successor to North American Free Trade Agreement, which was hammered out late last year between the three countries. Already the United States has lifted tariffs on metal imports from both Mexico and Canada as a way to get the deal ratified. But Congress has signaled some skepticism, showing how Mr. Trump — whatever the fate of his various conflicts — has changed the tenor of the discussion on trade in the United States.

A worker welding a steel pipe at factory in Santa Maria degli Angeli, Italy.CreditGianni Cipriano for The New York Times

The prospect of punishing tariffs from the United States has loomed for several months after steel and aluminum tariffs imposed last year rattled American allies in Europe.

President Trump has contended that imports of foreign cars and car parts are causing harm to the American automobile industry and threatening national security.

“The European Union treats us, I would say, worse than China. They’re just smaller,” President Trump said in May. “They send Mercedes-Benzes in here like they are cookies.”

He has threatened tariffs of 25 percent on the millions of foreign cars and car parts imported by the United States each year. The move could inflict damage in states like Alabama and South Carolina, which are home to big Mercedes-Benz and BMW assembly plants.

Earlier this month, the White House put off a decision on imposing these tariffs, leaving six months to negotiate a trade deal to address the problem.

The United States was already struggling in negotiations with the European Union, which has refused to consider demands to allow more American agricultural products into Europe. The Trump administration says that a deal without agriculture would not pass Congress, but populist politicians in Europe have seized on some American products and practices — like the use of chlorine to sterilize chickens — to justify retaining trade barriers.

Countries like France and Belgium have also balked at joining talks because of the Trump administration’s refusal in 2017 to sign a global pact on climate change. And leaders of the Green coalition in the European Parliament have said that they will not sign trade agreements with countries that have not ratified the climate accord.

A dairy farm in Le Roy, N.Y. A proposed trade deal, the successor to Nafta, is expected to increase American dairy exports to Canada.CreditLibby March for The New York Times

Last fall President Trump had appeared to reach a settlement over trade differences with Canada with the United States-Mexico-Canada Agreement, the revised Nafta. Among other things, the pact is supposed to make it easier to sell American dairy products in Canada. But Mr. Trump’s announcement on Thursday could derail his efforts to secure congressional approval of the pact.

Canada has been in an uncomfortable middle ground in the trade war between the United States and China. It became the center of a diplomatic row after Canadian authorities arrested Meng Wanzhou, a top executive at the Chinese tech company Huawei who was wanted on fraud charges by United State officials. Perhaps in retaliation, China has arrested two Canadians and accused them of espionage, and has placed restrictions on some Canadian agricultural products.

“China and the United States have escalated their dispute, and Canada has been caught in the crossfire,” Carolyn A. Wilkins, senior deputy governor at the Bank of Canada, said in a speech on Thursday.

Mr. Trump has implied he would intervene in Ms. Meng’s extradition to the United States if it would help Washington land a trade deal with Beijing.

But the new North American trade deal signed this past fall also included a clause, known as the “China clause,” which many saw as a blatant push to block any free trade deal between China and Canada.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Trump’s Trade War and Its Many Fronts

President Trump on Thursday threatened to hit Mexico with new tariffs, escalating his immigration fight with America’s largest trading partner. And with that, he showed, once again, that he’s ready to employ trade as an all-purpose tool for his policy goals.

Mr. Trump is juggling multiple trade conflicts today, with allies and rivals alike. His demands, often first disclosed through Twitter, have caught trading partners off guard.

Just eight months ago, Mr. Trump’s negotiators struck a deal with Mexican and Canadian officials that they said would replace the North American Free Trade Agreement. His new threat comes even before Congress has approved the deal, and signals to American partners that continuing disputes and threats are now the norm in global trade — at least as long as Mr. Trump is in office.

Of course, Mexico isn’t Mr. Trump’s only target. Far from it. In fact, what he’s taking on is broader than any particular country. He is challenging the post-World War II consensus that free trade enriches the world.

Here’s a look at the many fronts in Mr. Trump’s war on the world’s established trade relationships.

ImageWestlake Legal Group merlin_155582925_021162be-e06c-40d2-9cf1-f47c801f1b4a-articleLarge Trump’s Trade War and Its Many Fronts World Trade Organization Trump, Donald J North American Free Trade Agreement Mexico International Trade and World Market European Union Canada Abe, Shinzo

A port in Shanghai. Trade talks between the United States and China broke down in early May.CreditLam Yik Fei for The New York Times

President Trump with Prime Minister Shinzo Abe of Japan in April. Mr. Trump says he will impose tariffs on Japanese auto imports unless the two sides reach a trade deal.  CreditAl Drago for The New York Times

President Trump has called the relationship between the United States and Japan “a treasured alliance,” and says he enjoys a close relationship with Prime Minister Shinzo Abe. That hasn’t exempted Tokyo from his threats.

Though he has postponed his decision, Mr. Trump still says he will put tariffs on Japanese auto imports unless the two sides reach a trade deal. The White House wants greater access to the Japanese market for American farmers and ranchers. He also wants Japanese automakers to build more factories in the United States so more cars can be assembled by American workers.

Striking a deal is crucial for Mr. Abe, whose yearslong effort to rev up Japanese growth faces a major challenge from an economic slowdown in China, a major buyer of Japanese equipment and goods. Adding to the political pressure on Mr. Abe, Mr. Trump has said any deal would wait until after Japanese elections in July.

Cargo trucks in Tijuana, Mexico, line up to cross the border into the United States. Mexico is now the largest trading partner for the United States. CreditGuillermo Arias/Agence France-Presse — Getty Images

The Mexican conflict was supposed to be over.

But on Thursday, Mr. Trump reignited trade tensions by threatening to impose tariffs on Mexico beginning June 10 unless it stops the flow of undocumented immigrants across the border into the United States.

If he follows through on the threat, severe disruptions could be felt on both sides of the border. Thanks in part to the tariffs on China, Mexico is now the largest trading partner for the United States, accounting for more than $150 billion in trade in the first three months of this year, according to IHS Markit Global Trade Atlas, a data provider.

Trade has already been hindered because of shifts in how American personnel police the border, leading to longer waits. And just as he has with Japan, Mr. Trump has also threatened to put tariffs on imports of cars made in Mexico. A number of American and Japanese auto factories are based in Mexico, with supply chains that run deeply into the United States.

Mr. Trump’s threat calls into question the fate of the United States-Mexico-Canada Agreement, the successor to North American Free Trade Agreement, which was hammered out late last year between the three countries. Already the United States has lifted tariffs on metal imports from both Mexico and Canada as a way to get the deal ratified. But Congress has signaled some skepticism, showing how Mr. Trump — whatever the fate of his various conflicts — has changed the tenor of the discussion on trade in the United States.

A worker welding a steel pipe at factory in Santa Maria degli Angeli, Italy.CreditGianni Cipriano for The New York Times

The prospect of punishing tariffs from the United States has loomed for several months after steel and aluminum tariffs imposed last year rattled American allies in Europe.

President Trump has contended that imports of foreign cars and car parts are causing harm to the American automobile industry and threatening national security.

“The European Union treats us, I would say, worse than China. They’re just smaller,” President Trump said in May. “They send Mercedes-Benzes in here like they are cookies.”

He has threatened tariffs of 25 percent on the millions of foreign cars and car parts imported by the United States each year. The move could inflict damage in states like Alabama and South Carolina, which are home to big Mercedes-Benz and BMW assembly plants.

Earlier this month, the White House put off a decision on imposing these tariffs, leaving six months to negotiate a trade deal to address the problem.

The United States was already struggling in negotiations with the European Union, which has refused to consider demands to allow more American agricultural products into Europe. The Trump administration says that a deal without agriculture would not pass Congress, but populist politicians in Europe have seized on some American products and practices — like the use of chlorine to sterilize chickens — to justify retaining trade barriers.

Countries like France and Belgium have also balked at joining talks because of the Trump administration’s refusal in 2017 to sign a global pact on climate change. And leaders of the Green coalition in the European Parliament have said that they will not sign trade agreements with countries that have not ratified the climate accord.

A dairy farm in Le Roy, N.Y. A proposed trade deal, the successor to Nafta, is expected to increase American dairy exports to Canada.CreditLibby March for The New York Times

Last fall President Trump had appeared to reach a settlement over trade differences with Canada with the United States-Mexico-Canada Agreement, the revised Nafta. Among other things, the pact is supposed to make it easier to sell American dairy products in Canada. But Mr. Trump’s announcement on Thursday could derail his efforts to secure congressional approval of the pact.

Canada has been in an uncomfortable middle ground in the trade war between the United States and China. It became the center of a diplomatic row after Canadian authorities arrested Meng Wanzhou, a top executive at the Chinese tech company Huawei who was wanted on fraud charges by United State officials. Perhaps in retaliation, China has arrested two Canadians and accused them of espionage, and has placed restrictions on some Canadian agricultural products.

“China and the United States have escalated their dispute, and Canada has been caught in the crossfire,” Carolyn A. Wilkins, senior deputy governor at the Bank of Canada, said in a speech on Thursday.

Mr. Trump has implied he would intervene in Ms. Meng’s extradition to the United States if it would help Washington land a trade deal with Beijing.

But the new North American trade deal signed this past fall also included a clause, known as the “China clause,” which many saw as a blatant push to block any free trade deal between China and Canada.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com