Category: Foreign Policy

Trump says he will withdraw from NAFTA, pressuring Congress to approve new trade deal

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President Donald Trump said he intends to formally notify Canada and Mexico of his intention to withdraw from the nearly 25-year-old NAFTA agreement in six months. The move would put pressure on Congress to approve his new trade deal with the two U.S. neighbors.

“I’ll be terminating it within a relatively short period of time. We get rid of NAFTA. It’s been a disaster for the United States,” Trump said on board Air Force One after departing Buenos Aires, where he signed the U.S.-Mexico-Canada Agreement with the leaders of those two countries.

“And so Congress will have a choice of the USMCA or pre-NAFTA, which worked very well,” Trump added.

Trump’s comments confirmed what many have long suspected — that he would use the act of withdrawing from NAFTA as a cudgel to force Congress into passing the new deal.

But it also could be seen as an admission that the new agreement is not popular enough to be approved on its own merits, so Trump has to use the threat of disrupting the entire North American economy to round up the votes in Congress to get the deal past the finish line.

While a number of business groups do support the new deal because it contains new provisions on digital trade and strengthens intellectual property rights protections, others are simply relieved that it would keep much of the original agreement in place.

House Democrats, who are likely to hold the key to whether the new agreement is approved, have complained that labor and environmental provisions are not strong enough and have signaled they would like those concerns addressed as part of the implementing legislation.

Trump’s untested move would send the administration and Congress into a legal wilderness. The NAFTA deal includes a provision that allows a withdrawal after providing a six-month notice, but opinions differ on whether the president can act on his own.

Lawmakers passed legislation to implement the original deal in 1993. It’s uncertain whether a withdrawal initiated by the president would repeal the law that put the deal into force.

The president needs to take a look at the Constitution — it gives Congress authority over trade,” Sen. Ron Wyden (D-Ore.) said in September. “The president cannot pull America out of NAFTA without Congress’s permission.”

A 2016 report from the Congressional Research Service seems to be back up that position.

“It could be argued that because international trade is an area of shared constitutional authority, Congress must have a role in any decision by the United States to terminate or withdraw from an FTA,” CRS said.

Others argue Congress ceded authority to the executive branch decades ago that would allow Trump to terminate trade deals. They say Section 125 of the Trade Act of 1974 provides the underlying legal basis for a president to terminate or withdraw from an agreement and revoke any tariff reductions.

[Politico]

Trump Organization planned to give $50 million penthouse to Putin amid Moscow deal

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The Trump Organization planned to offer a $50 million penthouse suite to Russian President Vladimir Putin amid negotiations over a real estate deal to build a Trump Tower in Moscow, according to a report by BuzzFeed News. 

The bombshell report includes Felix Sater, a longtime Donald Trump associate accused of having Russian mafia ties, telling BuzzFeed News that he and Michael Cohen, the president’s former attorney and fixer, thought giving the suite to Putin could help sell other apartments.

“In Russia, the oligarchs would bend over backwards to live in the same building as Vladimir Putin,” Sater told BuzzFeed News. “My idea was to give a $50 million penthouse to Putin and charge $250 million more for the rest of the units. All the oligarchs would line up to live in the same building as Putin.”

BuzzFeed notes other unnamed officials confirmed the existence of the plan and the officials said Cohen discussed the idea with a representative of Dmitry Peskov, Putin’s press secretary.

It’s unclear whether Trump was aware of the plan, which never came to fruition due to the Trump Tower deal in Russia falling through.

Sater, a Russian immigrant who spent a year in prison for a 1991 stabbing, told the news organization that Cohen, at the time, remarked that it was a “great idea.”

Cohen’s attorney, Lanny Davis, declined to comment on the report when reached by USA TODAY. Rudy Giuliani, a lawyer for President Trump, said the story was “unknown to the president.”

Giuliani added the project was “too premature for anything like that” and called the idea to give Putin a suite “crazy.”

The revelations come at a time where the president’s Trump Tower deal in Moscow has come under intense scrutiny by special counsel Robert Mueller, who is examining Russian interference in the 2016 election.

On Thursday, Cohen pleaded guilty in federal court in New York to lying to Congress about the plan to build a Trump Tower in Russia all in the hope of shielding Trump from criticism.

Court documents filed as part of Cohen’s plea deal detailed Trump’s business dealings in Russia lasted longer during his campaign than previously acknowledged.

Federal prosecutors said Cohen lied when he submitted an Aug. 28, 2017, letter to the Senate and House intelligence committees. The letter said the project had ended by January 2016, when planning continued months longer during the presidential campaign.

Prosecutors said that Cohen lied to the committees to “minimize links between the Moscow Project and (Trump) and give the false impression that the Moscow Project ended before the Iowa caucus and the very first primary in hopes of limiting the ongoing Russia investigations.”

Sater, who had a large role in developing the Trump SoHo Hotel in New York, is also under scrutiny in Mueller’s investigation.

He wrote an email to Cohen in 2015 bragging about his ties to Putin, according to the New York Times. “Our boy can be president of the USA and we can engineer it,” Sater wrote in one of the emails. “I will get all of Putin’s team to buy in on this.”

The Times noted that Cohen never replied to the emails and viewed them as “puffery.” Sater, who spent a year in prison for stabbing a man and later scouted for Trump investments in Russia, said he was simply expressing “enthusiasm” for the Trump Organization.

[USA Today]

Trump tweets that tariffs are making the US “richer than ever before.” They’re not.

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Either President Donald Trump isn’t sure how tariffs work or he’s being deliberately misleading about them.

The president fired off an early-morning tweet on Thursday declaring that billions of dollars are “pouring into the coffers of the United States” because of the tariffs his administration has put on some $250 billion in Chinese imports.

“If companies don’t want to pay Tariffs, build in the U.S.A.,” Trump wrote. “Otherwise, lets just make our Country richer than ever before!”

But that’s not really how tariffs work: The US may be generating some revenue from tariffs, but billions of dollars aren’t pouring in. Moreover, a lot of the money that is made off of tariffs comes from US consumers — not Chinese companies.

“If you think about who’s actually paying the tax, it’s like a sales tax. It’s like saying, ‘I put a sales tax on producers, isn’t this great we’re getting all this money?’ And then consumers say, ‘Wait, that’s from my wallet,’” said Michael Klein, a professor of international economic affairs at the Fletcher School at Tufts University and founder of the nonpartisan economics publication Econofact. “It’s just another example of taking where there’s a tiny germ of truth and blowing it up to the point where it’s absurd, for his own political purposes.”

On Thursday, Trump will travel to Buenos Aires for the G20 summit, where, among other agenda items, he’s expected to meet with Chinese President Xi Jinping for a working dinner to discuss the countries’ relations, including trade. The sit-down is seen as high-stakes, given that the US has placed nearly $250 billion in tariffs on Chinese goods and China has levied retaliatory tariffs of its own. The escalating trade war poses a threat to both nations’ economies.

Tariffs don’t really work this way

The Trump administration has shown itself to be pretty into the idea of tariffs. It’s put tariffs on steel and aluminum imports from multiple countries as well as on several billion dollars of Chinese goods. The way tariffs work is that the goods marked for tariffs face a border tax when they’re imported into the US.

As Vox’s Matt Yglesias recently explained, the US government with its initial rounds of China tariffs was careful to make sure the products it targeted had foreign-made alternatives:

When that happens, US purchasers switch to non-Chinese alternatives, and then consumers from outside the US tend to switch around and start buying the Chinese products. The overall impact is slightly less efficient global supply chains, some real pain to Chinese firms that need to find new customers, and a limited impact on American prices.

In other words, thus far, things have been relatively tame. A recent study from EconPol Europe found that Trump’s first round of tariffs have increased the prices US buyers pay for Chinese-made goods by 4.5 percent and decreased the prices received by Chinese sellers of US-bound goods by 20.5 percent.

That means that thus far, the tariffs have been mostly, but not entirely, paid for by China, but it’s not going great for anyone. And if Trump’s meeting with Xi doesn’t go well and the trade war escalates, the economic effects of tensions could worsen.

And it’s not going to be making the US significantly richer, because the more tariffs, the less incentive to import the goods affected, and therefore the less money being collected.

“If the point of tariffs is to reduce what you’re buying, that means you’re not going to make that much money,” Klein said.

And much of the money that does come in will be from Americans themselves. Tariffs are often passed on to consumers, therefore driving up prices and, ultimately, inflation.

Trump, who is personally very wealthy, has been rather cavalier about the potential for prices going up. In an interview with the Wall Street Journal this week in which he appeared to float the idea of putting tariffs on iPhones and laptops, he said, “I mean, I can make it 10 percent, and people could stand that very easily.”

“Made in the USA” isn’t as easy as Trump makes it out to be

President Trump often makes the case that many of the United States’ trade and economic problems could be solved if companies would just do all of their manufacturing here. He’s attacked General Motors, Apple, and Harley-Davidson, among others, for having operations outside the US.

But “build in America” (which, by the way, many of Trump’s companies didn’t) isn’t as easy as it sounds. Supply chains are global, so even when Trump thinks he’s hitting back at China over, say, the iPhone, he’s missing the fact that the product is sourced from a lot of places, and its supply chain spans many countries.

In an Econofact analysis last year, Klein and Harvard political economist Marc Melitz estimated that each iPhone 7 imported to the US was recorded as a $225 import from China, but of that amount, only $5 represents work performed in China, largely assembly. The remaining $220 corresponds to other parts of Asia, Europe, and the Americas.

“It always sounds good when a president sounds tough on trade and issues protectionist policies,” Wayne Lam, a principal analyst at the information and analytics firm IHS Markit, told me when discussing the iPhone earlier this year. “We just don’t have the sheer workforce size nor skill set to be good at consumer electronics manufacturing.”

[Vox]

Trump floats new auto tariffs in response to GM layoffs

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President Trump on Wednesday hinted he may support new tariffs on auto imports as his latest response to General Motors’ decision to shutter U.S. factories and lay off workers.

In a series of tweets, Trump argued that a longstanding 25 percent tariff on light trucks has boosted U.S. auto manufacturers and that the same approach could work for cars.

”If we did that with cars coming in, many more cars would be built here and G.M. would not be closing their plants in Ohio, Michigan & Maryland. Get smart Congress,” Trump wrote.

The president said major auto exporting countries “have taken advantage of the U.S. for decades” and warned “that the president has great power on this issue.”

”Because of the G.M. event, it is being studied now!” he wrote.

The comments follow a report in the German media that Trump is considering slapping a 25 percent tariff on car imports from all countries aside from Mexico and Canada. Trump previously decided to put off auto tariffs on Europe in exchange for the European Union agreeing to purchase more American soybeans.

General Motors’ announcement this week angered Trump, who views the U.S. economy as a reflection of his presidency. The plant closures and layoffs, combined with a sputtering stock market and rising interests rates, appear to have sparked fears of an economic downturn and prompted Trump to lash out.

Trump blamed Federal Reserve Chairman Jerome Powell for the stock-market slide and the GM layoffs, citing his decision to raise interest rates. The president said he also spoke to GM CEO Mary Barra to relay his unhappiness with the decision and threatened to end GM’s federal tax credit for electric vehicles.

GM has said slow demand for cars in the U.S. market, combined with tariffs on Chinese steel and aluminum, have hurt sales and forced the company to shutter plants in Lordstown, Ohio; Detroit-Hamtramck, Mich.; and White Marsh, Md.

The U.S. imposed a 25 percent tariff on imported light trucks in 1964 after France and West Germany imposed tariffs on U.S. chicken, hence the name ”chicken tax.”

[The Hill]

Trump says May’s Brexit plan could hurt UK-US trade deal

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Donald Trump has suggested Theresa May’s Brexit agreement could threaten a US-UK trade deal.

The US president did not specify which aspect of the deal concerned him but told reporters the withdrawal agreement “sounds like a great deal for the EU”.

No 10 insisted the deal is “very clear” the UK would have an independent trade policy so that it can sign trade deals with countries around the world”.

Mrs May fought off heavy criticism of her Brexit deal from MPs on Monday.

Insisting the agreement “delivered for the British people” by regaining control of laws, money and borders, she said it would be put to an MPs vote on 11 December.

Hours later, Mr Trump told reporters outside the White House: “We have to take a look seriously whether or not the UK is allowed to trade.

“Because right now if you look at the deal, they may not be able to trade with us. And that wouldn’t be a good thing. I don’t think they meant that.”

It would appear Mr Trump was suggesting the agreement could leave Britain unable to negotiate a free-trade agreement with the United States.

However, responding to Mr Trump’s comments, a Downing Street spokesman said the Brexit withdrawal agreement struck on Sunday would allow the UK to sign bilateral deals with countries including the US.

“We have already been laying the groundwork for an ambitious agreement with the US through our joint working groups, which have met five times so far,” the spokesman added.

The BBC’s North America Editor Jon Sopel said Mr Trump’s comments were provocative, given trade would “carry on in much the same way as before” for the time being.

“Donald Trump knew exactly what he was doing with these remarks,” he said.

“There is a very open line of communication between senior members of his administration and prominent Eurosceptics.”

During Mr Trump’s UK visit in July – days after the British prime minister unveiled the proposals that formed the basis of the Brexit agreement – the US president had suggested an “ambitious” US-UK trade deal would “absolutely be possible”.

Billions of pounds in trade already flows between the UK and US – Britain’s largest single export market.

EU trade rules currently prevent the UK forging what some might view as a more advantageous bilateral trade deal with Washington.

Under the deal agreed in Brussels, the UK would continue to trade with the US under EU rules until at least the end of the “transition period” in December 2020.

During this transition – designed to allow businesses and others to prepare for the moment new post-Brexit rules kick in – the UK will be able to negotiate and strike deals with the US.

However, they will be unable to come into force until 1 January 2021 and could be delayed further if the backstop is triggered.

Tory Brexiteers fear the “backstop” written into the withdrawal agreement – which aims to prevent the return of customs posts on the Irish border in the event no UK-EU post-Brexit trade deal being agreed – could result in Britain being tied to EU rules for the long term.

In the Commons on Monday, Mrs May acknowledged the backstop was an “insurance policy no-one wants to use” but insisted the UK would have the right to determine whether it came into force.

She faced sustained criticism of the deal from MPs on all sides of the Commons.

Labour leader Jeremy Corbyn said Mrs May had brought home a “botched deal” that would “leave the UK worse off”.

The SNP’s Iain Blackford said the agreement was “full of ifs and buts” which would result in Scottish fishermen being “sold out” while the Lib Dem leader Sir Vince Cable and Green Party MP Caroline Lucas both called for another referendum.

And the DUP’s Nigel Dodds said the backstop “was bad for the United Kingdom and bad for the economy” and absolute certainty was needed over its legal application.

Tory backbencher Mark Francois was among a host of MPs to urge PM to think again, claiming the agreement was “as dead as a dodo” and “would not get through” Parliament.

[BBC]

Trump Wanted To Illegally Steal Iraqi Oil To Pay for Wars

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President Trump twice raised to the Iraqi prime minister the idea of repaying America for its wars with Iraqi oil, a highly controversial ask that runs afoul of international norms and logic, sources with direct knowledge tell me.

  • Trump appears to have finally given up on this idea, but until now it hasn’t been revealed that as president he’s raised the concept twice with Iraq’s prime minister and brought it up separately in the Situation Room with his national security team.

In March last year, at the end of a White House meeting with Iraq’s then-Prime Minister Haider al-Abadi, Trump brought up the subject of taking oil from Iraq to reimburse the United States for the costs of the war there.

  • “It was a very run-of-the-mill, low-key, meeting in general,” a source who was in the room told Axios. “And then right at the end, Trump says something to the effect of, he gets a little smirk on his face and he says, ‘So what are we going to do about the oil?'”

Between the lines: On the campaign trail, Trump complained that the U.S. had spent trillions in Iraq and lost thousands of lives but got “nothing” in return. He lamented that usually in war “to the victor belong the spoils” and he repeatedly said the U.S. should have seized Iraq’s oilfields as reimbursement for the steep costs of the war.

  • Top national security figures from both parties condemned Trump’s idea, calling it outrageous and unworkable — a violation of international law that would fuel the propaganda of America’s foes.

In the March meeting, the Iraqi prime minister replied, “What do you mean?” according to the source in the room. “And Trump’s like, ‘Well, we did a lot, we did a lot over there, we spent trillions over there, and a lot of people have been talking about the oil.'”

Al-Abadi “had clearly prepared,” the source added, “and he said something like, ‘Well, you know Mr. President, we work very closely with a lot of American companies and American energy companies have interests in our country,'” the source added. “He was smirking. And the president just kind of tapped his hand on the table as if to say ‘I had to ask.'”

  • “I remember thinking, ‘Wow. He said it. He couldn’t help himself,'” the source said.
  • A second source who was in the room confirmed this account. “It was a look down and reach for your coffee moment,” the second source said.
  • A third source, who was briefed at the time on the conversation between Trump and al-Abadi, told me the back and forth “made its rounds” around the National Security Council. “It was still early on in the administration, and we were all still trying to figure out how this was going to go, and so it was one of those horror stories … he’s really going to do this.”

Why it matters: Trump’s desire to raid Iraq’s oil is illegal and unworkable. But it reveals a great deal about his approach to the Middle East. Trump remains hellbent on extracting payments from Middle Eastern countries, in the form of natural resources, for the trillions of dollars America has spent since the early 2000s. Bob Woodward and others have reported on the formal steps Trump took to push his team to extract rare minerals from Afghanistan as repayment for the war. (Security concerns have stymied that effort; though Afghan’s leadership was more open to Trump’s pitch than Iraq’s leaders have been.)

Trump’s national security team has mostly pushed back on or ignored these desires to raid Middle Eastern natural resources. The president raised the issue of oil again with al-Abadi on a phone call in the summer of 2017. The conversation was vague and didn’t go anywhere, but H.R. McMaster admonished Trump afterward, according to a source with direct knowledge.

  • In the source’s recollection, the former national security adviser said to Trump, “We can’t do this and you shouldn’t talk about it. Because talking about it is just bad,” the source said, channeling McMaster, “It’s bad for America’s reputation, it’ll spook allies, it scares everybody, and it makes us look like — I don’t remember if he used words this harsh — like criminals and thieves, but that was the point he was trying to get across.”
  • “You won’t be able to do it anyway and you’ll harm our reputation and your own reputation just from talking about it.”

Trump did not react kindly, the source said. “It was frustration that he was trying to get his advisers to do things that he wanted them to do and they were just pushing back.”

The bottom line: It’s not a one-time thing. Two sources described being in the Situation Room in 2017 with Trump, Defense Secretary Mattis and national security officials discussing Iraq. Both said Trump brought up the prospect of seizing Iraq’s oil, and Mattis pushed back.

  • “Trump was like, ‘We’re idiots,'” recalled one of the sources who was in the Situation Room for the conversation. “[Trump] was like, ‘What are we doing there, what do we get out of this, why don’t we take the oil?’… And then Mattis spoke up. Made the same point that H.R. made. There’s no physical way to do it. It would be a violation of international law, it would be demoralizing for allies in the region, it would give our enemies propaganda — they’d be able to accuse us of theft.”

Asked about our reporting, Pentagon chief spokeswoman Dana White said, “We do not discuss internal deliberations, and the secretary’s advice and counsel to the president is private.” And an NSC spokesperson said, “We do not comment on the details of the president’s conversations with foreign leaders.”

[Axios]

Trump disputes CIA findings in Khashoggi killing, says too much at stake to punish ally

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Responding to questions about Saudi Arabia’s role in the murder of Washington Post journalist Jamal Khashoggi, President Donald Trump suggested Thursday that the U.S. can’t afford to punish foreign nations for killing people.

“Do people really want me to give up hundreds of thousands of jobs?” he said. “And frankly, if we went by this standard, we wouldn’t be able to have anybody who’s an ally, because look at what happens all over the world.”

NBC and other outlets have reported that the CIA recently determined, reportedly with “high confidence,” that Saudi Crown Prince Mohammed bin Salman ordered the murder of Khashoggi at a Saudi consulate in Turkey in early October.

Trump rejected that characterization in an exchange with reporters in Palm Beach, Fla., where he is spending the Thanksgiving holiday at his Mar-a-Lago resort, but said the American relationship with Riyadh wouldn’t be affected even if the crown prince is responsible for Khashoggi’s death.

“Whether he did or whether he didn’t, he denies it vehemently,” Trump said. “The CIA doesn’t say they did it. They do point out certain things, and in pointing out those things, you can conclude that maybe he did or maybe he didn’t.”

The aftermath of the killing bothered him, he said, but he argued the CIA gave him conflicting information about the act.

“I hate the cover-up. And I will tell you this, the crown prince hates it more than I do,” he said. “And they have vehemently deny it. The CIA points it both ways. As I said, maybe he did, maybe he didn’t. But I will say very strongly that it’s a very important ally.”

By design, intelligence community analyses don’t reach conclusions. Instead, analysts provide evidence and a degree of confidence about their judgments, along with information about any uncertainties.

After Trump tweeted a statement of support for Saudi rulers Wednesday, Washington Post publisher and CEO Fred Ryan slammed Trump in an op-ed.

“A clear and dangerous message has been sent to tyrants around the world: Flash enough money in front of the president of the United States, and you can literally get away with murder,” Ryan wrote.

Pressed Thursday on whether his message to foreign leaders is that they can act with impunity, Trump said “no.”

“Not at all,” he said. ” Saudi Arabia has been a longtime strategic partner. They’re investing hundreds of billions of dollars in our country. I mean hundreds of billions. They’re keeping the oil prices low.”

The U.S Bureau of Economic Analysis does not report figures for Saudi Arabia’s direct investment in the U.S. to avoid revealing information about specific companies. While overall data is not available, the office of the U.S. Trade Representative reports that “Saudi Arabia’s direct investment in the U.S. is led by real estate, information services, and retail trade.”

Financial transactions between the two countries amounted to a negative number in 2017 — about $161 million in Riyadh’s favor — according to BEA.

Saudi Arabia spent about $9 billion on U.S. arms between 2013 and 2017, according to the Stockholm International Peace Research Institute, but Trump has said erroneously that Saudi rulers are ready to spend many multiples of that in the coming years — up to $450 billion in goods, including $110 billion in military equipment. Saudi Arabia’s annual gross domestic product has been below $700 billion in each of the last three years.

[NBC News]

Trump Thanks Saudi Arabia for…Making America Great Again With Lower Oil Prices?

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After more or less excusing Saudi Arabia’s alleged murder of a journalist, President Trump is showing praise on them over lower gas prices.

In his first tweets of the day, Trump celebrated the fact that oil prices are falling on the market amid fears of a global slowdown in economic growth. In any case, he’s giving thanks to the Saudis over this news and finishing it off with “MAKE AMERICA GREAT AGAIN!” for good measure.

Trump’s tweets come a day after he released a statement declaring he will take Saudi Arabia’s side over the controversy of whether their royal family was directly involved in Jamal Khashoggi‘s gruesome murder in Turkey. Trump justified his decision by declaring “America first,”embraced Saudi Arabia’s smears of Khashoggi for being a political dissident, and he also ignored reported evidence collected by the intelligence community that Crown Prince Mohammad bin Salman ordered Khashoggi’s killing.

[Mediaite]

Reality

We only get 10% of our imported oil from Saudi Arabia, which is already a fraction of the oil we generate ourselves.

OPEC has recently called for a drop in oil production because of a looming glut on the market and a fear that oil prices were going to fall lower. There are also links to the economy that a possible slow down in economic growth has been signaled by a drop in oil prices.

These are things that have nothing to do with the US government’s relationship with Saudi Arabia.

Trump, When Asked Why He Sided With Saudi Arabia Over CIA: ‘Because It’s America First!

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President Donald Trump was asked by a reporter on Tuesday why he sided with Saudi Arabia over his own intelligence agencies regarding who is responsible for the murder or Jamal Khashoggi.

Trump issued a bizarre statement on Tuesday announcing the U.S. would stand by Saudi Arabia regardless of whether Crown Prince Mohammed bin Salman ordered the murder of the Washington Post writer in Turkey, as the CIA has reportedly concluded.

“It’s a shame, but it is what it is,” Trump told reporters as he made his way from Washington D.C. to his Mar-a-Lago resort for Thanksgiving.

“Why are you siding with Saudi Arabia over your own intelligence community?” a reporter asked.

“Because it’s America First,” Trump replied. “It’s all about American First. We’re not going to give up hundreds of billions of dollars in orders, and let Russia and China have them.”

(The Washington Post called Trump’s claims about the jobs and revenue created by Saudi investment in the U.S. a “fantasy” in their report on his statement.)

“We are with Saudi Arabia, we’re staying with Saudi Arabia,” Trump added.

Trump’s statement drew criticism for its apparent defense of Saudi Arabia’s actions and questioning of its leader’s culpability in the gruesome murder of a dissident who resided in the United States.

“Our intelligence agencies continue to assess all information, but it could very well be that the Crown Prince had knowledge of this tragic event – maybe he did and maybe he didn’t!” Trump wrote in his statement. “That being said, we may never know all of the facts surrounding the murder of Mr. Jamal Khashoggi. In any case, our relationship is with the Kingdom of Saudi Arabia. They have been a great ally in our very important fight against Iran.”

[Mediaite]

Trump says U.S. will stand by Saudi Arabia, despite CIA’s conclusion about Khashoggi killing

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President Trump vowed to stand by Saudi Arabia, whatever the CIA concludes about the involvement of Saudi Crown Prince Mohammad bin Salman in the killing of Saudi journalist Jamal Khashoggi.

Mr. Trump released a statement Tuesday afternoon saying, “Our intelligence agencies continue to assess all information, but it could very well be that the Crown Prince had knowledge of this tragic event – maybe he did and maybe he didn’t!”

He added, “That being said, we may never know all of the facts surrounding the murder of Mr. Jamal Khashoggi…the United States intends to remain a steadfast partner of Saudi Arabia to ensure the interests of our country, Israel and all other partners in the region.”

The CIA has intelligence substantiating an assessment that the crown prince ordered Khashoggi’s killing. The CIA’s assessment appeared to be largely based on the control held by bin Salman. In other words, the thinking is the murder could not have been carried out without the knowledge of bin Salman, often referred to by his initials, MBS.

A U.S. intelligence official says the president has been provided with the intelligence community’s assessment on the matter.

Mr. Trump conceded that the “crime against Jamal Khashoggi was a terrible one, and one that our country does not condone.” And he said the U.S. has taken “strong action” against alleged participants, pointing to the recent sanctions announced against 17 Saudis “known to have been involved.”

But he allowed that “representatives of Saudi Arabia say that Jamal Khashoggi was an “enemy of the state” and a member of the Muslim Brotherhood.” However, he added, “[M]y decision is in no way based on that – this is an unacceptable and horrible crime.”

The president argued that the relationship with Saudi Arabia is vital to U.S. interests and national security and important to the U.S. economy. The president pointed to Iran as a force to be kept in check — and Saudi Arabia’s role in helping do that.

Mr. Trump also repeated assertions that the Kingdom agreed to spend $450 billion in the U.S., with $110 billion to be spent on military equipment from U.S. defense contractors.

“If we foolishly cancel these contracts, Russia and China would be the enormous beneficiaries – and very happy to acquire all of this newfound business,” the statement said. “It would be a wonderful gift to them directly from the United States!”

The president also said that he understood there were lawmakers in Congress “who would like to go in a different direction — and they are free to do so.” He said he would consider ideas presented to him, “but only if they are consistent with the absolute security and safety of America.”

On Saturday, the president had said his administration would release a “full report” on Khashoggi’s death in the next two days. But three days later, his administration has no details on what such a report will entail or when it would be released — or even confirmation that such a report exists.

[CBS News]

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