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Trump's return to economic nationalism shakes White House

The president's abrupt bid for a tariff war clashes with Wall Street, the Republican Party and his own cabinet

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Trump's return to economic nationalism shakes White House

It's not just China, Europe, Canada or Mexico anymore. The resistance is right now inside White House. Donald Trump's abrupt return to economic nationalism and his commitment to a tariff war has clashed with Wall Street, Republican Party, and his own cabinet. The fall of influential adviser Gary Cohn, one of most respected figures of executive, is an indicator of this involution. The president again bets on turbulence.

Trump has decided to give battle. He has looked back and has picked up American flag first that so good election result gave him in 2016. The world, so seen, is a place plagued by enemies and time has come to defend itself. As a first strike, it is preparing a tariff rise in steel (25%) and aluminium (10%). Then more will come. The war has only begun.

"We have been mistreated as a country for many years; Everyone has taken advantage of us, and this is never going to happen again. Trade wars are not so bad. Because we are more powerful than y are, " president cried Tuesday afternoon, an hour before Cohn's resignation was made public.

From Bush 1 To present, our Country has lost more than 55.000 factories, 6 million manufacturing jobs and accumulated Trade Deficitss of more than 12 Trillion dollars. Last year we had a Trade Deficit of almost 800 Billion dollars. Bad Policies Leadership. Must WIN again! MAGA

— Donald J. Trump (@realDonaldTrump) March 7, 2018

And for no doubt, he redoubled his offensive on Wednesday morning: "From first Bush to this day, our country has lost 55,000 factories, 6 million of manufacturing jobs and has accumulated a trade deficit of more than 12 trillion dollars. Last year, we had a deficit of almost 800 billion. Bad policies and bad leadership. We have to win again, "tweeted.

Hostilities have started shortly after Trump achieved his greatest political triumph to date. Fiscal reform, with a cut of 1.5 trillion dollars in 10 years, overcame obstacles that led to attempt to annihilate Obamacare. For once, he won support of both chambers and appeared as a leader before his party and nation.

Both Cohn and Treasury Secretary Steven Mnuchin participated in tax plan. During ir design, y both tried to curb Trump's impulses of activating a trade war. In his favor, according to American media, y played two heavyweights of cabinet. The Secretary of Defense, Jim Mattis, and state, Rex Tillerson, who felt that tariff battle would open a period of uncertainty that could end up affecting both national security and diplomatic fluency with allied countries.

The president waited for approval of fiscal project at end of December, and entered new year, returned to charge. On February 12, he called his office to Director of National Council of Commerce, Peter Navarro, and entrusted him to put all firewood possible to fire.

The rise of apocalyptic Navarro, a follower of extremist Steve Bannon who after shining in elections had been relegated to background, was a message to cabinet. The White House was retaking campaign speech. The demonization of deficit and trade treaties were returning to forefront. The first barrage was going to be steel and aluminum. Navarro, along with ruthless negotiator of North American Free Trade Agreement, Robert Lighthizer, and Commerce Secretary Wilbur Ross, were at forefront.

The resistance, so far, has failed. Cohn has resigned and pressures of Mattis and Tillerson have fallen into a broken sack. The downward reaction of Wall Street has not mattered eir. And Republican Party's petitions have been clamorously unheard of, despite damage that trade war may cause in ultra-sensitive legislative elections on 6 November. "We demand caution," leader of Conservative majority in Senate, Mitch McConnell, implored on Thursday. Days before, Republican leader in Congress, Paul Ryan, had urged to backtrack: "We are extremely concerned about consequences of a trade war and do not want it to threaten gains of tax reform."

Nothing seems to stop Trump. "I was elected, at least in part, by this issue and I have been saying it for 25 years," he explained on Tuesday. Empecinado, as it were in campaign, has again represented role of outsider. The politician who alone and against everyone faces world. But this time from White House.

The letter of 100 Republican congressmen

Isolationism is for Donald Trump an article of faith. Their distrust of or countries, wher y are friends or not, is profound. And in his defense of economic nationalism he doesn't mind losing support. One of last to get away from Trump has been president of Senate's powerful finance committee, his former friend, Mr. Boy Hatch. In a bitter letter, this senator reminds him that rise in tariffs will end up being paid by American consumer and that measure undermines success of tax reform. This missive was added by Wall Street Journal, in which 107 members of House of Representatives asked Trump to reconsider rise in tariffs for ir negative consequences and asked him to act against those who do harm to US.


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