Thread by @JoanneDavis

theconservativetreehouse.com/2018/06/21/can…

It’s been two weeks since the best-laid-scheme was attempted. In the interim, the international audience has watched President Trump’s unrelenting approach toward China.

In the grand-trade-conflict; China is a big fight none of the sideline players

2) would ever attempt. However, the downstream consequence of the international trade team watching intently is their realization that President Trump is not bluffing. You can hear the proverbial gulps from across the Atlantic; and the tremors up North.

Back to May 23rd, 2018

3) and remember the auto tariff proposal. President Trump has made it clear that he’s more than willing to use reciprocal trade tariffs against all trade partners in getting fair and balanced trade. He ain’t bluffing.

Well, guess what just happened?

4) Yup, Germany, without consulting w/Emmanuel from France, just unilaterally announce the EU is willing to drop all trade tariffs against U.S. auto manufacturers as part of their strategy to fend-off steel, aluminum & crushing auto tariffs.

BERLIN—Germany’s leading auto makers

5) have thrown their support behind the abolition of all import tariffs for cars between the European Union & the U.S. in an effort to find a peaceful solution to the brewing trade war.

U.S. ambassador to Germany, Richard Grenell, brought the proposal for broader industry trade

6) pact to the Trump administration on Wednesday, according to people familiar w/the situation.

That would mean SCRAPPING the EU’s 10% tax on auto imports from the U.S. & other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want Pres.

7) Trump’s threat of imposing a 25% border tax on European auto imports off the table.

[…] A French official said Paris was unaware of the proposal, & it wasn’t discussed during a recent summit between French President Macron & German Chancellor Merkel in Meseberg, Germany.

8) Too damned funny.

Don’t overlook Merkel making this announcement w/out consulting w/ Macron. The German auto-sector is vital to the German economy. Lose the support of the auto industry in Germany & Chancellor Merkel is toast.

Chancellor Merkel controls mini-brie Macron.

9) Emmanuel gets no respect (LOL).

What comes next?

How about the knee from Ms. Freeland’s “sister in trade“, Cecilia Malström:
WELLINGTON (Reuters) – EU is ready to engage w/United States to solve a trade row triggered by Washington’s decision to impose metal impose tariffs

10) E.U. Trade Commissioner Cecilia Malmstrom said on Thursday.

“We are always open to talk w/the U.S. The whole EU is based on the idea that we talk,” she told a seminar. She described the tariffs as “illegal” as they contravened World Trade Organization (WTO) rules. She also

11) said the WTO needs rules to address China’s subsidies and dumping of its goods in markets.

Oh, that winnamin is extra tasty….

EU is now leaving Canada naked to the trade monster that is the indefatigable Trump. TTFN, it’s every snobby economic minister for themselves.

12) We must look at that video of Freeland again; just to savor the smugness of it all.

CBC News: The National ✔️@CBCTheNational
In times of tariffs, it helps to have friends in high places. Canadian Minister of Foreign Affairs Chrystia Freeland talks about value of her close

13) relationship w/EU trade commissioner, calling themselves "sisters in trade." #cndpoli

Ha,..Ha,…Ha…stop, yer killin’ me.

Oh the winnamin. Perfect.

Now, EU-Germany specifically- might seem like they are attempting to gain some leverage equity here; but really they don’t

14) get any. U.S. automakers gain no short-term benefit from EU dropping restrictive trade tariffs because Ford, GM were forced to open plants in EU to sell vehicles (prior best interests). The benefit to dropping the 10% tariff on American autos is really non-existent; it’s

15) the threat of the 25% Trump tariff on German autos that has the entire sector panicked.

Jaw agape Merkel never thought vulgarian Trump would ever follow through on the 25% auto tariff, until she just saw Trump go from $50 billion against China to the whopping $200 billion

16) tariff he just announced.

When you plant your tree in another man’s orchard, you might end up paying for your own apples; it’s a risk you take…

Gadzooks, that, that, that Trump, he’s serious.

However, as mentioned, there’s no gained leverage for Germany in putting dropped

17) tariffs on U.S. autos on the table. Almost all of the benefit is on EU side of that proposal; U.S. auto workers won’t gain. Fraulein Merkel better quickly start adding to her NATO defense funding & reconsider her opposition to Iran deal withdrawal.

Commerce Sec Ross is the

18) one handling EU trade discussion; while Lighthizer/Navarro focus on NAFTA (all three involved in China). It is going to take much more equity on the table from EU side for Sec Ross to take a deal.

Hilariously, in response to Merkel’s proclaiming a zero tariff proposal;

19) CEO of Volvo, Swedish brand owned by Chinese, is well positioned to benefit because Volvo are about to launch production inside the U.S. w/plans of export to EU. Conversely, on losing side, GM shifted to making cars in China (Buick Encore), -Trump nailing them w/25% tariff.

20) Strategery.
Actions have consequences.
Leverage; he is the master at it.

#TrumpCheckmate!

"Unroll" @threadreaderapp