Donald Trump offers Mexico aid against drug cartels
The Latest on the slaying of U.S. citizens in northern Mexico (all times local):7:55 a.m. President Donald Trump is offering Mexico’s government unspecified help to “wage war” on drug cartels after a family from a breakaway faction of the Church of Jesus Christ of the Latter Day Saints was massacred in northern Mexico. “This is the time for Mexico, with the help of the United States, to wage WAR on the drug cartels and wipe them off the face of the earth. We merely await a call from your great new president!” Trump said in a series of tweets addressing the tragedy. Trump added that the U.S. government stands ready to get involved. He said that Andrés Manuel López Obrador has made fighting drug cartels a top issue. “But the cartels have become so large and powerful that you sometimes need an army to defeat an army! “ López Obrador has favored a less militaristic approach to the problem, saying a policy of frontal confrontations by his predecessors led only to more violence. 7:15 a.m. Mexico’s top security official says at least 3 women and 6 children were slaughtered by cartel gunmen and one child is still missing in northern Mexico. Relatives say the victims are U.S. citizens. Security Secretary Alfonso Durazo said Tuesday the gunmen may have mistaken the group’s large SUVs for rival gangs. He said six children were wounded in the attack, and five have been transferred to hospitals in Phoenix, Arizona. Durazo said the Sinaloa cartel has an important presence in the area, but is fighting for the territory with rivals. The chilling attack targeted U.S. citizens who live in a community founded as part of an offshoot of The Church of Jesus Christ of Latter-day Saints. Police and army troops are searching for the missing child. Republished with the permission of the Associated Press.
No sign of Donald Trump-Mexico deal on farm goods
President Donald Trump is bragging about a new deal with Mexico that provides for “large” sales of U.S. farm goods, but it doesn’t appear to exist. In weekend tweets, he announced in all capital letters that he had won the agreement to benefit America’s “great patriot farmers,” and that U.S. sales would begin “immediately.” There isn’t any sign of that happening, however. Mexican officials denied that anything on agriculture was included in the deal on border security reached Friday to avert Trump’s threatened tariffs. Trump also unfairly placed responsibility on Mexico for the entire U.S. drug problem, even though many of the known drug deaths have nothing to do with the country. The statements came in a week where the apportioning of credit and blame often went awry in Trump’s remarks. He hailed pristine air quality that isn’t, wrongly insisted that the U.S. was paying “close to 100%” of NATO and told Puerto Ricans they should love him because he got them hurricane aid that he’s actually been complaining about for months. In the Democratic presidential campaign, meantime, Trump was accused of breaking a gun-control promise that in reality he kept. A look at recent claims and reality: MEXICO DEAL TRUMP: “MEXICO HAS AGREED TO IMMEDIATELY BEGIN BUYING LARGE QUANTITIES OF AGRICULTURAL PRODUCT FROM OUR GREAT PATRIOT FARMERS!” — tweet Saturday, retweeted Sunday. THE FACTS: There’s no evidence that Mexico agreed to “large” purchases of agricultural products from the U.S. as part of the deal to avoid tariffs. Nor did the White House provide any details to show such a deal exists. The joint declaration between the U.S. and Mexico released by the State Department late Friday makes no mention of agriculture. Officials from Mexico deny an agreement was reached on farm goods as part of the talks. “Everything that was negotiated was in the joint statement,” said a Mexican official familiar with the discussions who was not authorized to discuss the matter publicly and spoke on condition of anonymity. When Mexico’s ambassador to the United States, Martha Barcena, was asked repeatedly Sunday on CBS’ “Face the Nation” whether there was a new agricultural deal, she demurred, saying such trade between both countries should increase over time. She referenced instead the potential impact of the separate United States-Mexico-Canada trade deal, which has yet to be approved by Congress. “Is trade on agricultural products going to grow? Yes, it is going to grow, and it is going to grow without tariffs and with USMCA ratification,” Barcena said. According to the office of the United States Trade Representative, Mexico bought $20 billion in U.S. agricultural goods last year, making it the United States’ second-largest ag export market. TRUMP: “Look, I’m dealing with Mexico right now. They send in $500 billion worth of drugs, they kill 100,000 people, they ruin a million families every year if you look at that. That’s really an invasion without the guns. … 100,000 people are killed, dead every year, from what comes through our southern border. They shouldn’t be allowing people to come through their country from Central, from Honduras and Guatemala, El Salvador.” — Fox News interview Thursday. THE FACTS: Trump is inflating the death toll from drug overdoses — more than 70,200 in 2017 — and wrongly blaming all the known deaths on Mexico. Tens of thousands of those deaths have nothing to do with Mexico or Central America. They are from legally made prescription opioids, fentanyl laboratories in China or other sources of international drug smuggling and illicit manufacturing in the U.S. More than 17,000 of the deaths in 2017, for example, were from prescription opioids alone. Mexico is indeed a significant conduit in the drug trade — it’s a leading source of heroin, for example — but it is hardly the only one. DISASTER AID TRUMP, on signing a relief bill for multiple U.S. disasters: “Puerto Rico should love President Trump. Without me, they would have been shut out!” — tweet Thursday. THE FACTS: That’s not likely. The $19.1 billion disaster aid bill, passed by the House on Monday and signed into law by Trump on Thursday, ordinarily would have been approved by Congress months ago. But Trump injected himself into the debate, demanding that money for hurricane-rebuilding efforts that was sought by Puerto Rico’s elected officials, Republicans and Democrats both, be kept out. Trump frequently inflated the amount of aid that Puerto Rico had obtained in previous bills and feuded with the island’s Democratic officials. Congressional Democrats held firm in demanding that Puerto Rico, a territory whose 3 million people are U.S. citizens, be helped by the measure. The legislation ultimately included more money for Puerto Rico, about $1.4 billion, than Democrats originally sought. The relief measure delivers money to states in the South suffering from last fall’s hurricanes, Midwestern states deluged with springtime floods and fire-ravaged rural California, among others. NATO TRUMP: “We were paying so much. I think we were really paying close to 100% of NATO. So we were paying to protect all of these European nations. And it’s just not fair.” — interview Thursday with Fox News. THE FACTS: It’s not true that the U.S. was paying “close to 100%” of the price of protecting Europe. NATO does have a shared budget to which each member makes contributions based on the size of its economy. The United States, with the biggest economy, pays the biggest share, about 22%. Four European members — Germany, France, Britain and Italy — combined pay nearly 44% of the total. The money, about $3 billion, runs NATO’s headquarters and covers certain other civilian and military costs. Defending Europe involves far more than that fund. The primary cost of doing so would come from each member country’s military budget, as the alliance operates under a mutual defense treaty. The U.S. is the largest military spender but others in the alliance obviously have armed forces, too. The notion that almost all costs would fall to the U.S. is false. In fact, NATO’s Article 5,
Del Marsh pre-files bill to allow Alabamians to donate state income tax return monies to fund border wall
As federal lawmakers face a Feb. 15 deadline for reaching a deal on border security, an Alabama state senator has a solution of his own. Anniston-Republican, Senate President Pro Tempore Del Marsh on Tuesday announced that he has pre-filed legislation that would allow taxpayers to check a box on their Alabama tax returns to donate to We Build the Wall, Inc. “As I talk to people in my district and around the state, border security is the number one thing I hear about,” Marsh explained. “This is obviously an issue that has people very concerned and one that needs to be addressed.” Under Marsh’s proposal, if an individual desired to donate to We Build the Wall they would be able to check a box on their state income tax return and designate the amount of their tax return they wished to donate. Currently, Alabamians have the ability to check off contributions on their tax returns for many different entities including the Alabama 4-H, Alabama Aging program, Arts Development Fund, and USS Alabama Battleship Commission. “It is obvious that many people in the Federal government have little desire to address border security, so this is an easy way for people in Alabama, if they choose, to check a box and make a donation in support of building a border wall,” Marsh add. We Build the Wall, Inc. is a Florida-based non-profit raising funds to build the wall along the United States border with Mexico for national security purposes. It was launched in December by 37-year-old Brian Kolfage, a triple amputee who received a Purple Heart while serving in Iraq. At the time of publishing it has raised over $20 million through a GoFundMe campaign. The 2019 Regular Session of the Alabama Legislature begins March 5.
Donald Trump: ‘I can’t tell you when’ government will reopen
President Donald Trump said Tuesday that parts of the federal government will stay closed until Democrats agree to put up more walls along the U.S.-Mexico border to deter criminal elements. He said he’s open to calling the wall something else as long as he ends up with an actual wall. In a Christmas Day appearance in the Oval Office, Trump issued a lengthy defense of his desire for a wall, saying it’s the only way to stop drugs and human traffickers from entering the country. In a nod to the political stakes he’s facing, Trump said he wants the wall by “election time” in 2020. The promise of a border wall was a central component of Trump’s presidential campaign. “I can’t tell you when the government’s going to be open. I can tell you it’s not going to be open until we have a wall or fence, whatever they’d like to call it,” Trump said, referring to Democrats who staunchly oppose walling off the border. “I’ll call it whatever they want, but it’s all the same thing,” he told reporters after participating in a holiday video conference with representatives from all five branches of the military stationed in Alaska, Bahrain, Guam and Qatar. Trump argued that drug flows and human trafficking can only be stopped by a wall. “We can’t do it without a barrier. We can’t do it without a wall,” he said. “The only way you’re going to do it is to have a physical barrier, meaning a wall. And if you don’t have that then we’re just not opening” the government. Democrats oppose spending money on a wall, preferring instead to pump the dollars into fencing, technology and other means of controlling access to the border. Trump argued that Democrats oppose a wall only because he is for one. The stalemate over how much to spend and how to spend it caused the partial government shutdown that began Saturday following a lapse in funding for departments and agencies that make up about 25 percent of the government. Some 800,000 government workers are affected. Many are on the job but must wait until after the shutdown to be paid again. Trump claimed that many of these workers “have said to me and communicated, ‘stay out until you get the funding for the wall.’ These federal workers want the wall. The only one that doesn’t want the wall are the Democrats.” Trump didn’t say how he’s hearing from federal workers, excluding those he appointed to their jobs or who work with him in the White House. But many rank-and-file workers have gone to social media with stories of the financial hardship they expect to face because of the shutdown, now in its fourth day. Sen. Chuck Schumer of New York and Rep. Nancy Pelosi of California, the Democratic leaders of Congress, said Trump “wanted the shutdown, but he seems not to know how to get himself out it.” Trump had said he’d be “proud” to shut down the government in a fight over the wall. He also had said Mexico would pay for the wall. Mexico has refused. Trump followed up on a Monday tweet in which he said he “just gave out a 115 mile long contract for another large section of the Wall in Texas.” Neither the White House nor the Department of Homeland Security responded to follow-up questions, despite repeated requests. The reference to 115 miles was unclear. Trump may have been referring to 33 miles of construction in the Rio Grande Valley that is set to begin in February, part of a total of 84 miles that Congress funded in March, according to the Department of Homeland Security. Asked who received the contract, Trump replied: “Different people, different people.” He did say he envisions a wall so tall, “like a three-story building,” that only an Olympic champion would be able to scale it. He also compared Democrats’ treatment of him over the wall to their defense of James Comey after Trump fired him as FBI director. “It’s a disgrace what’s happening in our country but, other than that, I wish everybody a very merry Christmas,” he said. Republished with permission from the Associated Press.
Donald Trump on verge of giving up best chance to secure wall money
Donald Trump‘s loyal supporters cried “Build the wall!” throughout his 2016 presidential campaign. Come 2020, they may well still be chanting for Trump to make good on his signature campaign promise as prospects dim for him to deliver on a wall along the U.S.-Mexico border. Trump appears likely to give up his last, best chance to secure money from Congress for the “beautiful” wall he’s long promised to construct, as he backs away from his threat to partially shut down the government on Friday. Now, with the Senate having passed a temporary funding measure to keep the government open through Feb. 8, Trump’s mission will go from difficult to near-impossible when Democrats take control of the House on Jan. 3. The unfulfilled pledge also threatens to hang over his re-election campaign, potentially depressing his base and dealing his political rivals a powerful talking point. “I thought if you’re going to have a fight, now’s the time to have it,” said Sen. Lindsey Graham, a close ally of the president who warned that it’s only going to get more difficult to get the money when Democrats take over. “When you draw lines in the sand like this, it ends up haunting you in the future,” the South Carolina Republican warned. Rep. Mark Meadows, R-N.C., called on Trump to veto the temporary funding bill, warning that it would cause “major damage” to the president’s re-election effort. “The base will just go crazy,” he said, referring to Trump’s most loyal backers. Trump is hardly the first president to be confronted with the challenges of passing a legislative priority through Congress, but the lack of progress on an issue so closely identified with his bid for the White House may prove to be a costly failure. He had promised to begin working on an “impenetrable physical wall” along the southern border on his first day in office, but little headway has been made. A March funding bill included money for 33 miles (53 kilometers) of barrier construction in South Texas’ Rio Grande Valley, but work there has yet to begin. Other work has merely replaced existing barriers that had been deemed “ineffective,” not added miles. The president’s allies expressed anxiety Wednesday that Trump was, in the words of some, “caving” on the wall and warned of the potential backlash from his supporters and the impact it could have on his re-election effort. The failed promise, they argued, could weaken turnout and leave him more vulnerable to challengers. Conservative commentator Ann Coulter published a column that called Trump “gutless” and said in a radio interview that she won’t vote for Trump in 2020 if he doesn’t deliver on the wall. “Nor will, I think, most of his supporters. Why would you?” she asked, arguing that Trump’s time in office will one day go down as “a joke presidency that scammed the American people.” Some within the administration cautioned that it was still possible Trump would change his mind and end up rejecting the stopgap funding bill, prompting a holiday shutdown that could also be politically damaging. Trump had said last week that he would be “proud” to have a shutdown to get Congress to approve a down payment on the wall. Trump had originally demanded $5 billion to begin building the wall this year, but the White House acknowledged this week that he is willing to settle for far less. The temporary measure offers just $1.3 billion for border security fencing and other improvements. That money cannot be used for new wall construction. The president had little choice. Even in the GOP-controlled House, Trump did not have the votes to get $5 billion in wall money, and House Speaker Paul Ryan declined to bring it to the floor. The White House is instead putting its faith in a potential work-around, with Trump telling allies he’ll be able to make an end-run around lawmakers by using the military to fund and carry out construction, though such a move would face significant pushback from Congress as well as legal challenges. “Because of the tremendous dangers at the Border, including large scale criminal and drug inflow, the United States Military will build the Wall!” he tweeted Wednesday. White House press secretary Sarah Huckabee Sanders said Tuesday that the president had also directed every one of his Cabinet secretaries “to look and see if they have money that can be used” for wall construction. But Rep. Adam Smith, D-Wash., the incoming chairman of the House Armed Services Committee, told MSNBC that there has been strong opposition to using Defense Department dollars for border wall construction. And he said that Trump can’t do so without lawmakers’ signoff. “Congress, both Republicans and Democrats, do not think the DoD money should go towards building a wall on the border,” he said. “We have many other national security priorities that are vastly more important.” The president’s conservative backers insist that Trump should not back down from his demand for $5 billion from Congress. “Trump should not sign this bill and leave for Mar-a-Lago, and tell them it’s not gonna get signed and their precious government’s not gonna get back up and running ’til there’s $5 billion,” wrote radio host Rush Limbaugh. On “Fox & Friends,” Trump’s favorite and most-tweeted-about morning show, conservative blogger Michelle Malkin described his latest move as a “cave” and a “blink.” Questioning White House counselor Kellyanne Conway, “Fox & Friends” host Brian Kilmeade said the president has “no leverage,” while co-host Ainsley Earhardt asked why Trump was “softening” his position. “The president is not softening his stance. He has a responsibility to keep the government moving forward and he has a responsibility to get border security,” Conway responded. Former Trump campaign adviser Barry Bennett said it was too soon to panic. “He must have a trick up his sleeve because I can’t imagine he would just walk away from it,” Bennett said. Former Republican House Speaker Newt Gingrich said that while the base would be “unhappy” if border
Bradley Byrne looks to fund Trump’s border wall through budget reconciliation process
Alabama 1st District U.S. Congressman Bradley Byrne announced Monday he has introduced legislation that would help President Donald Trump secure the necessary funding to build the border wall with Mexico. Byrne’s bill, H.R. 7073, better known as the 50 Votes for the Wall Act, would use the budget reconciliation process secure the necessary $25 billion needed to build the wall, which would side-step a threatened filibuster by Senate Democrats. Budget reconciliation allows bills to pass out of the Senate with only 50 votes, while almost all other Senate bills require 60 votes. Budget reconciliation was the same process used to pass tax reform last year. The bill would also fully fund the border wall, eliminating the possibility that Democrats could bottle up funding in future appropriations bills, and direct the Secretary of Homeland Security to finalize construction before the beginning of President Trump’s second term. “Border security is national security, and we cannot allow Democrats to continue to block our efforts to build a wall along our southern border,” explained Byrne. “That is why I am introducing the 50 Votes for the Wall Act, which creates a process to overcome the Democrat obstruction and move forward with plans to construct President Donald Trump’s border wall. He continued, “Sixty-three million Americans voted for President Trump with the promise of building a wall because they want us to finally secure our borders. With the 50 Votes for the Wall Act, we can make the wall a reality and ensure the safety of the American people.” The bill would create Border Wall and Security Trust Fund, allowing it to be filled with up to $25 billion “out of any money in the Treasury not otherwise appropriated, such sums as the Secretary of Homeland Security may request of the Secretary of Treasury on or after October 1, 2018,” reads the bill’s text. The authority for the trust fund will be terminated on September 30, 2028. The unobligated balance of any amounts fund on such date will be returned to the general fund of the Treasury. Byrne’s bill has earned the support of Federation for American Immigration Reform (FAIR), a leading immigration reform organization. “Even though President Trump and Congressional Republicans have a clear mandate from the American people, Democrat obstructionists have repeatedly blocked border wall funding and are once again threatening to do so in December,” said AIR Government Relations Director RJ Hauman. “This is why it is important to pursue other avenues to ensure that the border wall is funded once and for all. One such avenue is Congressman Bradley Byrne’s Fifty Votes for the Wall Act – which provides a unique and filibuster-proof funding mechanism for the border wall. FAIR applauds Congressman Byrne for introducing this legislation, and recognizing that Democrat obstruction poses a significant national security risk.” Congressman Byrne’s bill is sponsored by fifteen of his Republican colleagues, including two fellow members of the Alabama delegation: 5th District U.S. Rep. Mo Brooks and 3rd District U.S. Rep. Mike Rogers. Other sponsors include U.S. Reps. Kevin Cramer (R-ND), Michael Burgess (R-TX), Francis Rooney (R-FL), Brian Babin (R-TX), Jim Banks (R-IN), Paul Gosar (R-AZ), Matt Gaetz (R-FL), Ralph Norman (R-SC), Andy Biggs (R-AZ), Bill Posey (R-FL), Alex Mooney (R-WV), Scott DesJarlais (R-TN), and Lamar Smith (R-TX).
Donald Trump revives fiery immigration talk for ‘caravan’ election
Donald Trump fueled his 2016 campaign with fiery immigration rhetoric, visions of hordes flowing across the border to assault Americans and steal their jobs. Now, in the final weeks before midterm elections, he’s back at it as he looks to stave off Democratic gains in Congress. It’s an approach that offers both risks and rewards. He could energize Democratic foes as well as the Republicans he wants to rouse to the polls. But for the president, the potential gains clearly win out. In campaign stops and on Twitter in recent days, he has seized on a huge caravan of Central American migrants trying to reach the United States through Mexico as fresh evidence that his tough immigration prescriptions are needed. He tweeted that the caravan was an “assault on our country at our Southern Border.” Then, Thursday night in Montana, he told cheering supporters, “This will be an election of Kavanaugh, the caravan, law and order and common sense. … Remember it’s gonna be an election of the caravan.” His assertions got a visual boost Friday when some members of the caravan broke through a Guatemalan border barrier with Mexico. A few then got through to Mexican territory, but most were repelled by police with riot shields and pepper spray. On an aggressive campaign blitz, Trump has sought to cast the midterms as a referendum on his presidency, believing that he must insert himself into the national conversation in order to bring Republicans out to vote. Perhaps no issue was more identified with his last campaign than immigration, particularly his much-vaunted — and still-unfulfilled — promise to quickly build a U.S.-Mexico border wall. To Trump, his pledges are still rallying cries. “I think it’s a big contrast point. All the Democrats are refusing to build the wall. It’s a good contrast,” said former Trump campaign aide Barry Bennett, who said the caravan was “perfectly timed” for Trump’s midterm pitch. But some warn that as Trump seeks to pump up his base, he could energize opposition. Matt Barreto, co-founder of the research firm Latino Decision, said an elevated immigration message could hurt Trump, too. “I think you run the risk of angering minority voters across the board, Latino, black and Asian-Americans and also alienating and distancing from whites, including conservatives and moderates, now that they see what’s happening with the family separations,” said Barreto, a professor at the University of California, Los Angeles. Thursday night, the migrant caravan of at least 3,000, many waving Honduran flags and chanting slogans, arrived at the Guatemalan border with Mexico. On Friday, they broke down Guatemalan gates and streamed toward a bridge to Mexico. Most were repelled by Mexican police, but about 50 got through. Mexico’s dispatching of additional police to its southern border seemed to please Trump. On Thursday night, he retweeted a BuzzFeed journalist’s tweet of a video clip showing the police deployment, adding his own comment: “Thank you Mexico, we look forward to working with you!” Earlier in the day, Trump railed against the caravan on Twitter and declared it was “Democrats fault for weak laws!” He also threatened to deploy the military to the border if Mexico did not stop the migrants and appeared to threaten a revamped trade deal with Canada and Mexico. Until days ago, immigration appeared to be unlikely to repeat its central role of 2016, as Trump heeded congressional Republican requests to avoid a government shutdown over funding for the border wall ahead of the midterms. And an internal GOP poll presented to the White House last month found that other issues — particularly opposing the “Medicare for All” policy of some Democrats — would better resonate with voters. While Trump did focus for a time on some Democrats calling for the abolition of the Immigration and Customs Enforcement agency, he largely discussed it as a warning against Democratic control of Washington. But the renewed embrace of the polarizing issue reflects a consensus view in both parties that control of Congress will be determined more by turning-out party loyalists than winning over centrist voters. A vigorous immigration push will likely be well-received in many of the deep-red areas where Trump is campaigning, like his stop in Montana Thursday night. Republicans acknowledge it could play differently in other parts of the country — and might even harm GOP candidates in some selected districts — but they are wagering that as in 2016 it is still a net-win issue for the president’s party. Trump campaigns Friday night in Arizona, an increasingly competitive state where the message could have a mixed result. He won Arizona by 3.5 percentage points two years ago, compared with Republican Mitt Romney’s 9-point margin in 2012. Ahead of the midterms, polls continue to show that voters consider immigration among the most important issues, though generally falling behind the economy and health care. However, Republican and Democratic voters have distinctly different views of immigration as a problem facing the country. A recent Pew Research Center survey found a majority of Democratic voters — 57 percent — think the treatment of immigrants in the country illegally is a very big problem in the U.S., compared with just 15 percent of Republican voters who say the same. By contrast, three-quarters of Republican voters call illegal immigration a very big problem, ranking the highest for Republicans among the long list on Pew’s survey, while just 19 percent of Democratic voters say the same. Recently, surveys from CNN and The Washington Post/ABC News found voters were slightly more likely to think the Democratic Party would do a better job handling immigration than the Republican Party. Republished with permission from the Associated Press.
Gulf Coast ports fear tariffs could reduce ship traffic and jobs
Ports and ground terminals in nearly every state handle goods that are now or will likely soon be covered by import tariffs. Port executives worry that this could mean a slowdown in shipping that would have ripple effects on truckers and others whose jobs depend on trade. The Associated Press analyzed government data and found that from the West Coast to the Great Lakes and the Gulf of Mexico, at least 10 percent of imports at many ports could face new tariffs if President Donald Trump’s proposals take full effect. Since March, the U.S. has applied new tariffs of up to 25 percent on nearly $85 billion worth of steel and aluminum and various Chinese products, mostly goods used in manufacturing. Trump said in a recent tweet, “Tariffs are working big time.” He has argued that the tariffs will help protect American workers and force U.S. trading partners to change rules that the president insists are unfair to the United States. In New Orleans, port officials say a tariff-related drop in shipments is real, not merely a forecast. Steel imports there have declined more than 25 percent from a year ago, according to the port’s chief commercial officer, Robert Landry. The port is scouting for other commodities it can import. But expectations appear to be low. “In our business, steel is the ideal commodity,” Landry said. “It’s big, it’s heavy, we charge by the ton so it pays well. You never find anything that pays as well as steel does.” The port of Milwaukee imports steel from Europe and ships out agricultural products from the Midwest. Steel imports haven’t dropped yet because they are under long-term contracts, said the port director, Adam Schlicht. But there has been “an almost immediate halt” in outbound shipments of corn because of retaliatory duties imposed by the European Union on American products. Much of the corn, he said, “is just staying in silos. They are filled to the brim.” Many other ports have been humming along and even enjoyed an unexpected bump in imports during June and July as U.S. businesses moved up orders to ship before the new tariffs took effect. That started with manufacturing goods and is now spreading to retail items for back-to-school and Christmas. “Some of my retail customers are forward-shipping the best they can to offset proposed tariffs,” says Peter Schneider, executive vice president of T.G.S. Transportation, a trucking company in Fresno, California. Port officials were encouraged by this week’s announcement that the United States and Mexico had reached a preliminary agreement to replace the North American Free Trade Agreement, hoping it might lead to reduced trade barriers. Canada’s participation in any new deal to replace NAFTA, though, remains a major question mark. The port officials continue to worry, though, that Trump will make good on a plan to expand tariffs to an additional $200 billion in Chinese imports — a list that includes fish and other foods, furniture, carpets, tires, rain jackets and hundreds of additional items. Tariffs would make those items costlier in the United States. And if Americans buy fewer of those goods, it would likely lead to fewer container ships steaming into U.S. ports. The impact will be felt keenly at West Coast ports like Los Angeles and Long Beach. Los Angeles Mayor Eric Garcetti, relying on information from his port officials, said his port — the biggest in the United States — could suffer a 20 percent drop in volume if the additional $200 billion in tariffs are imposed against Chinese goods. Jock O’Connell, an economist in California who studies trade, said he doubts a downturn would be so severe — that would match the slump that accompanied the global recession of 2008 — “but we will see a definite impact.” Here are some of the key findings from the AP analysis: — U.S. tariffs will cover goods that are imported at more than 250 seaports, airports and ground terminals in 48 states. — At 18 of 43 customs districts — including those representing ports around Los Angeles, San Francisco, New Orleans and Houston — at least 10 percent of their total import value could be covered by new tariffs if all Trump’s proposals take effect. — Retaliatory duties by China and other countries cover $27 billion in U.S. exports. Eugene Seroka, executive director of the Los Angeles port, worries that “if tariffs make it too expensive to import, there will be an impact on jobs.” Seroka and others don’t expect layoffs on the docks. Union longshoremen — whose average pay last year on the West Coast was $163,000, according to the Pacific Maritime Association, which negotiates for the ports — often have contract provisions ensuring that they are paid even if there’s no work. And there are fewer of them than there were a few decades ago because the advent of shipping containers has reduced the need for people on the docks. Dwayne Boudreaux, an International Longshoremen’s Association official in Louisiana, said, though, that his stevedores are handling about 10 percent less steel from Japan because of the new tariffs. “We don’t think it’s going to (get) worse,” he said. But, he added, “who knows — that could change from the next press conference.” The impact might be greater on truck drivers and warehouse workers. Fewer will be needed, according to O’Connell. Many drivers who deliver shipping containers from the dock to warehouses are independents contracted by trucking companies, and they don’t get paid if there is nothing to haul. Some might leave the profession, said Weston LaBar, CEO of the Harbor Trucking Association in Long Beach, California. “It’s hard to retain drivers,” he said. “If we don’t have work for those drivers, we’re worried they will leave for some other segment of the trucking business or go into another business, like construction.” Less shipping means less revenue for the ports — something that could limit their ability to pay for expansion and improvement projects, according to Kurt Nagle, president of the
Mexico’s victor reaches out to Donald Trump, seeks NAFTA deal
The morning after his crushing election victory, Mexico’s president-elect Andres Manuel Lopez Obrador thanked President Donald Trump for his congratulation message and said he’ll contact the U.S. leader to “reach an understanding.” Lopez Obrador said in an interview Monday with the Televisa news network that Trump’s Tweet Sunday night “was very respectful. That is what we always want to maintain with the U.S. government, that there be mutual respect.” Trump tweeted Sunday that “I look very much forward to working with him. There is much to be done that will benefit both the United States and Mexico!” “We are never going to disrespect the U.S. government, because we want them to respect us,” Lopez Obrador said. “At the appropriate moment, we are going to get in touch, to reach an understanding” with the Trump administration. “We are conscious of the need to maintain good relations with the United States,” he added. Lopez Obrador had been compared to Trump for his populist, nationalist rhetoric and sometimes touchy personality — as well as his past skepticism about the trade deal. But Lopez Obrador said he supports reaching a deal on renegotiating the North American Free Trade Agreement with the United States and Canada. The talks have been stalled over the Trump administration demands for higher U.S. content and a “sunset clause” in the 1994 trade agreement. Lopez Obrador said he will propose that his own team of experts be included in the talks. The winning candidate said he will make that proposal in a meeting Tuesday with current President Enrique Pena Nieto. Lopez Obrador told Televisa that he will respect the current team of negotiators, and let them continue representing Mexico until he takes office Dec. 1. Lopez Obrador said he wants to have information on what’s being discussed and “to help as much as we can.” With just over half of votes counted on Monday, Lopez Obrador had about 53.7 percent of the votes, a remarkable margin not seen in the country for more than three decades. A prominent exit poll predicted his party allies were poised to score big victories in congressional and governorship races. Lopez Obrador, who campaigned on vows to transform Mexico and oust the “mafia of power” ruling the country, rode widespread voter anger and discontent with the governing Institutional Revolution Party, or PRI, of President Enrique Pena Nieto and had led opinion polls since the beginning of the campaign. The PRI, which dominated Mexican politics for nearly the entire 20th century and recaptured the presidency in 2012, was set to suffer heavy losses, not just for the presidency but in other races as well. In brief remarks at a hotel in central Mexico City late Sunday, Lopez Obrador called for reconciliation after a polarizing campaign and promised profound change but with respect for the law and constitutional order. “I confess that I have a legitimate ambition: I want to go down in history as a good president of Mexico,” said Lopez Obrador, who had lost in the previous two presidential elections. “I desire with all my soul to raise the greatness of our country on high.” Lopez Obrador said he would “seek to establish an authentic democracy and we do not intend to establish a dictatorship.” He said, “The changes will be profound, but in accordance with established order.” Conservative Ricardo Anaya of a right-left coalition and the PRI’s Jose Antonio Meade acknowledged defeat shortly after polls closed nationwide. The quick count had them around 22 percent and 16 percent, respectively. Lopez Obrador said individual and property rights would be guaranteed, promised respect for the autonomy of the central Bank of Mexico and said his government will maintain financial and fiscal discipline. He said contracts obtained under energy reforms passed under President Enrique Pena Nieto will be scrutinized for any corruption or illegality, but otherwise contracts will be honored. “There will be no confiscation or expropriation of assets. … Eradicating corruption will be the principal mission,” he said. Lopez Obrador also spoke of reducing Mexican immigration to the United States through economic development. “Mexicans will be able … to work and be happy where they were born,” he said. And rather than the use of force to fight spiraling violence, he will look to fix root causes such as inequality and poverty. Partial vote counts also showed probable gubernatorial wins for allies of Lopez Obrador’s Morena party in at least four of eight state races on the ballot plus for the head of government in Mexico City. The central state of Guanajuato was expected to go to a candidate of the conservative National Action Party. The polling firm Consulta Mitofsky predicted Morena allies would take between 56 and 70 seats in the 128-member Senate and between 256 and 291 spots in the 500-seat lower house. Republished with permission from the Associated Press.
Kay Ivey says Alabama could lose up to 4,000 jobs due to tariffs
Last week, Alabama governor Kay Ivey released a statement saying the Trump Administration’s new tariffs will cause harm to the Yellowhammer State’s economy. Taking it a step further, she contacted U.S. Secretary of Commerce Wilbur Ross and several members of the Alabama congressional delegation expressing her concerns. “Import tariffs, and any retaliatory tariffs on American made goods, will harm Alabama, the companies that have invested billions of dollars in our state, and the thousands of households which are dependent upon those companies for a good-paying job,” Ivey said in a statement. “I strongly oppose any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy. I am committed to protecting Alabama jobs and consumers, the world over, who are proud to purchase products made in Alabama.” In her letter to Ross, Ivey touted Alabama’s record year in 2017 citing the nearly $3 billion in automotive-related investments, the announcement of a new Mazda-Toyota plant, and the more than 57,000 Alabamians who are already employed by the sates manufacturing sector. “In 2017, Alabama produced almost one million cars and light trucks and 1.7 million engines. However, Alabama’s success relies on access to foreign markets and imports of certain automotive components that become part of the vehicles produced in our state,” Ivey’s letter read. “Last year, Alabama reached a record high of $21.7 billion in exports. Our top export category was automotive, accounting for $10.9 billion of those exports. The largest importers of Alabama made goods and services were Canada, China, Germany, Mexico and Japan – all countries which may be forced to reciprocate in response to any new import tariffs.” Ivey ended her letter to Ross by saying that tariffs places on imported materials used for car manufacturing, and tariffs placed on the state’s exported vehicles would increase costs and cause a high number of Alabamians to lose their jobs. “Estimates show that a ten percent decrease in Alabama-made vehicle exports could result in the loss of approximately 4,000 jobs in Alabama,” the letter continued. “Such a loss would be devastating to thousands of families across our state. These are Alabama families who are dependent on the income from working in these facilities.” “As Governor of the Great State of Alabama, I strongly oppose any efforts that may harm those companies that employ thousands of Alabamians and contribute billions to our economy. I respectfully ask that you not recommend to President Trump the levying of trade tariffs on automobiles and automotive parts.”
In tit-for-tat, Donald Trump threatens more tariffs against China
President Donald Trump has directed the U.S. Trade Representative to prepare new tariffs on $200 billion in Chinese imports as the two nations move closer to a potential trade war. The tariffs, which Trump wants set at a 10 percent rate, would be the latest round of punitive measures in an escalating dispute over the large trade imbalance between the two countries. Trump recently ordered tariffs on $50 billion in Chinese goods in retaliation for intellectual property theft. The tariffs were quickly matched by China on U.S. exports, a move that drew the president’s ire. “China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology,” Trump said in a statement Monday announcing the new action. “Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong.” Trump added: “These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced.” China’s Commerce Ministry on Tuesday criticized the latest threat of tariffs, saying it was an “act of extreme pressure and blackmail that deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the international community.” “If the U.S. becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality,” the ministry statement said. Trump said that if China responds to this fresh round of tariffs, then he will move to counter “by pursuing additional tariffs on another $200 billion of goods.” It wasn’t immediately clear when the new tariffs could be put in place, as the trade office has yet to identify the Chinese goods to be penalized or conduct a legal review. The first round of penalties announced by both nations is set to take effect July 6. The intellectual property sanctions were the latest in a spate of protectionist measures unveiled by Trump in recent months that included tariffs on steel and aluminum imports to the U.S. and a tough rhetoric on trade negotiations from North America to Asia. The escalation in the dispute with China may also serve as a warning to other trading partners with whom Trump has been feuding, including Canada and the European Union. The move quickly drew praise from former Trump senior adviser Steve Bannon, who told The Associated Press: “President Trump told China and the world tonight that America will not back down when it comes to economic aggression.” But Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Trump’s watch. Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.” Trump’s comments came hours after the top U.S. diplomat accused China of engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property. Secretary of State Mike Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the U.S. and China. He said China’s recent claims of “openness and globalization” are “a joke.” He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminum flooding the U.S. market. “Everyone knows … China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.” “Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.” Asked to comment on Pompeo’s remarks, the Chinese foreign ministry in Beijing said in a regular briefing with reporters that the U.S. had lost credibility as a free trader. “We don’t want a trade war, but we’re not afraid of a trade war,” ministry spokesman Geng Shuang said. Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others. “I reminded him that’s not fair competition,” Pompeo said. Trump had announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies. Pompeo on Monday described U.S. actions as “economic diplomacy,” which, when done right, strengthens national security and international alliances, he added. “We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.” In a statement, Trump says he has an “excellent relationship” with Xi, “but the United States will no longer be taken advantage of on trade by China and other countries in the world.” Republished with the permission of the Associated Press.
Donald Trump’s goosey claims on trade, jobs
President Donald Trump is using some goosey numbers to rationalize his aggressive rhetoric on trade, disregarding strong points in U.S. competitiveness to paint a dark portrait of a world taking advantage of his country. Conversely, he’s glossing over aspects of the economy that don’t support his faulty contention that it’s the best it’s ever been. The complexities of health care for veterans are also set aside as he hails a new era in the Department of Veterans Affairs’ system. A look at some of his statements over the past week and the reality behind them: TRUMP: “Why isn’t the European Union and Canada informing the public that for years they have used massive Trade Tariffs and non-monetary Trade Barriers against the U.S. Totally unfair to our farmers, workers & companies. Take down your tariffs & barriers or we will more than match you!” — tweet Thursday. TRUMP: “Farmers have not been doing well for 15 years. Mexico, Canada, China and others have treated them unfairly. By the time I finish trade talks, that will change. Big trade barriers against U.S. farmers, and other businesses, will finally be broken. Massive trade deficits no longer!′ — tweet Monday. THE FACTS: Whatever his beef with farm trade with specific countries, he’s wrong in suggesting U.S. agriculture runs a trade deficit. The U.S. exports more food products than it imports, running a $17.4 billion surplus last year. It’s long been a bright spot in the trade picture and it’s why many U.S. farmers are worried about losing markets as Trump retreats from, renegotiates or disparages trade deals. U.S. farmers do brisk business with the three countries he complains about in the tweet, two of them under the umbrella of the North American Free Trade Agreement, which Trump is threatening to leave if it’s not recast to give the U.S. greater advantage. The U.S. exported $20.5 billion in agricultural products last year to Canada, the largest market for U.S. farmers. That made for a modest deficit of $1.8 billion. The U.S. exported $18.6 billion in farm goods to Mexico, running a deficit of $6 billion. The U.S. has a lopsided advantage with China on farm goods, in contrast to manufactured products. It sold $21 billion in agricultural products to China in 2016, for a surplus of $16.7 billion. The Agriculture Department says exports of food products have grown “steadily over the last two decades.” Trump’s unrelievedly negative view of the EU may be grounded in a substantial trade deficit with the continent, but his administration’s trade office takes a longer and more benevolent view of the relationship. “Two-way U.S.-EU trade has been roughly balanced over time,” says the U.S. Trade Representative’s Office, “and the very high levels of foreign investment accounted for by each in the other’s markets means that the transatlantic economy is arguably the most integrated on Earth.” ___ TRUMP: “The EU trade surplus with the U.S. is $151 Billion.” — tweet Thursday. THE FACTS: He’s wrong about the trade deficit with the EU. As he usually does, Trump ignored trade in services in his calculation. The U.S. is more competitive in services than in goods overall, and services are a big part of the trade equation. The U.S. saw a $153 billion trade deficit in goods with the EU last year, but a surplus in services brought the actual trade deficit with the union down to $101 billion. ___ TRUMP: “Best Economy & Jobs EVER, and much more.” — tweet Monday referring to achievement in his first 500 days in office. THE FACTS: May’s unemployment rate of 3.8 percent is not the best ever. And the economy has seen many periods of stronger growth. The lowest unemployment rate since World War II was reached in 1953, when it averaged 2.9 percent, almost a full point lower than today. The job market is certainly strong, with unemployment at an 18-year low, and if it drops another tenth of a point, it’ll be the lowest since 1969. Yet the jobless rate was at or below 4 percent for four straight years back then, from 1966 through 1969, and wages were rising more quickly. The cost of items such as college and health care was much lower then. Overall the economy has yet to show it can sustain growth in excess of 3 percent, as Trump has promised. In the 1990s boom, still the longest on record, the U.S. economy expanded at an average annual pace of 4.3 percent for five years, from 1996 through 2000. In the 1980s, growth averaged 4.6 percent annually from 1983 through 1987. While the economy has picked up from 2016, its best showing since Trump took office was 3.2 percent in last year’s third quarter. ___ TRUMP: “Separating families at the Border is the fault of bad legislation passed by the Democrats. Border Security laws should be changed but the Dems can’t get their act together! Started the Wall.” — tweet Tuesday. THE FACTS: No law mandates that parents must be separated from their children at the border, and it’s not a policy Democrats have pushed or can change alone as the minority in Congress. Children are probably being separated from the parents at the border at an accelerated rate because of a new “zero tolerance policy” being put in place by Trump’s own administration. Announced April 6 by Attorney General Jeff Sessions, the policy directs authorities to prosecute all instances of illegal border crossings, even against people with few or no previous offenses. Administration officials are quick to note that Sessions’ policy makes no mention of separating families. That is correct. But under U.S. protocol, if parents are jailed, their children are separated from them because the children aren’t charged with a crime. So while separating families might not be official U.S. policy, it is a direct consequence of Sessions’ zero-tolerance approach. According to U.S. Customs and Border Protection, more than 650 children were separated from parents at the border during a two-week period in May. ___
