1. Apoplectic Trade Reactions From German Auto-Sector…
theconservativetreehouse.com/2018/06/30/apo…
W/n German economy the auto-sector holds the largest political influence. B/c of this dynamic all German politicians kneel at the knee of the big industrial auto manufacturers. It has been said that
2) losing support from w/in auto-sector is much worse on a German politician than losing support from party or parliament.
B/c of this dynamic; specifically b/c German auto-sector is dependent on USA as their biggest customer, Trump holds leverage over German Chancellor Merkel.
3) This makes Fraulein Merkel unhappy.
President Trump wants three EU issues resolved: 1) Germany to contribute the minimum 2% of GDP for their own NATO defense. 2) Germany/EU to support enhanced sanctions against Iran; 3) President Trump wants all German/EU protectionist trade
4) barriers & tariffs lowered or eliminated – & new trade deals negotiated.
To gain momentum on these initiatives, Trump is using the economics of trade as leverage. Trump has suggested a 20% tariff on all EU automobiles shipped into the U.S. [same standard now likely proposed
5) toward Canada] The German auto-sector, & as a consequence the German economy, simply CANNOT SURVIVE w/out low cost access to the US market, their biggest customer.
Immediately following election (Dec. 2016), President Trump warned BMW (& others) about opening a manufacturing
6) plant in Mexico; Trump suggested such a decision might backfire. BMW ignored the warning/contracted w/Mexico for auto plant w/intentions to use NAFTA to bring completed cars to market.
The plant anticipated to be operational 2019; however, now increasingly likely that NAFTA
7) will be dissolved/President Trump threatening 20% auto-tariff to any imported cars. Accordingly, despite prior warning, BMW now going bananas:
View image on Twitter
View image on Twitter
Reuters Top News
✔
@Reuters
BMW says U.S. tariffs on EU cars may hit investment there
8) reut.rs/2tHJE4S
BMW was planning on using the NAFTA LOOPHOLE to assemble EU auto parts in MEXICO for duty-free transport into U.S. However, now there’s a likelihood the BMW sedans planned to be built in Mexico could be subject to U.S. tariffs /they cannot gain benefit
9) from the NAFTA LOOPHOLE.
BMW builds SUV’s in Spartanburg, South Carolina. The reason they build them there is due to a 25% pre-Trump existing tariff on imported SUV’s. It looks like BMW made a bad decision to build a car plant in Mexico; although their position as expressed
10) w/n Reuters article FAILS to mention this aspect at all. Obviously they don’t mention the 2016 WARNING from President-Elect Trump either. {{{snicker}}}😂
Meanwhile, Pres. Trump just keeps applying more layers of #winnaminleverage upon the desk of German Chancellor Merkel:
11) @John_Hudson SCOOP: As Trump fights w/ Merkel on defense spending, Pentagon staffers ordered to analyze costs of a LARGE-SCALE WITHDRAWAL of AMERICAN TROOPS from Germany. Word of the move is causing a nervous scramble at European embassies in DC washingtonpost.com/world/national… …
12) 1:38 PM - Jun 29, 2018
U.S. assessing cost of keeping troops in Germany as Trump battles w/Europe
European officials scrambling to determine whether the president intends to reposition U.S. forces or is just making threats ahead of a NATO summit.
washingtonpost.com
13) Poland has offered to host a smaller contingent of U.S. forces; Poland ALREADY FULLY MEETS their obligations to NATO defense spending. Funny how that happens. 😂
The Pentagon is analyzing the cost/impact of a large-scale withdrawal or transfer of American troops stationed in
14) Germany, amid growing tensions between Pres. Trump/German Chancellor Merkel, according to people familiar w/the work.
The effort follows Trump’s expression of interest in removing troops, made during a meeting earlier this year w/White House & military aides, US officials
15) said. Trump was said to have been taken aback by the size of the U.S presence, which includes about 35K active-duty troops, & complained that other countries were NOT contributing fairly to joint security or paying enough to NATO.
Word of the assessment has alarmed European
16) officials, who are scrambling to determine whether Trump actually intends to reposition US forces or whether it is merely a negotiating tactic ahead of NATO summit in Brussels, where Trump is again likely to criticize US allies for what he deems insufficient defense spending.
17) Anyone noticing a pattern?
Interestingly, two Canadians are able to connect the dots very easily.
Ezra Levant of Rebel Media and Manny Montenegrino, President & CEO Think Sharp Inc. discuss the dynamic and obvious comparisons and parallels.
18) “Complicated business folks, ... Complicated business"
#TrumpCHECKMATE! again!
#Winning!
#AmericaFirst
#MAGA!
"unroll" @threadreaderapp
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