After ‘beautiful letter’and more N.K. launches, Trump says he’ll meet with Kim again

President Donald Trump on Friday praised a “beautiful letter” from North Korean leader Kim Jong Un. 

Hours later, the regime launched further projectiles as a warning against joint military exercises between the United States and South Korea.

On Saturday, Trump slammed the “ridiculous and expensive” joint exercises in a tweet, indicating he’ll meet with Kim “in the not too distant future.” 

Trump wrote Saturday: “In a letter to me sent by Kim Jong Un, he stated, very nicely, that he would like to meet and start negotiations as soon as the joint U.S./South Korea joint exercise are over. It was a long letter, much of it complaining about the ridiculous and expensive exercises. It was….. …also a small apology for testing the short range missiles, and that this testing would stop when the exercises end. I look forward to seeing Kim Jong Un in the not too distant future! A nuclear free North Korea will lead to one of the most successful countries in the world!”

“I think we’ll have another meeting,” Trump told reporters outside the White House on Friday. “He really wrote a beautiful three-page — I mean right from top to bottom — a really beautiful letter. And maybe I’ll release the results of the letter, but it was very positive.” 

North Korea had five rounds of weapons demonstrations in the past two weeks — including another launch of two projectiles Saturday local time, according to South Korea. 

Trump had dismissed the previous tests, saying they were just for short-range missiles. He added that Kim wrote in the “very personal letter” that he is not happy with the U.S.-South Korea joint exercises. 

“He wasn’t happy with the tests, the war games. The war games on the other side with the United States. And as you know, I’ve never liked it either,” Trump said. “I don’t like paying for it. We should be reimbursed for it, and I’ve told that to South Korea.” 

The missiles North Korea previously tested are able to strike U.S. allies South Korea and Japan as well as U.S. military bases there. But the president said on Friday that Kim sees a “great future” for North Korea, “so we’ll see how it all works out.” 

He pivoted to say the U.S. has routinely been taken advantage of by foreign countries, including its allies “in many cases more than anybody else.” Earlier, he told reporters he hopes South Korea and Japan — which have been locked in an economic feud even during North Korea’s weapons demonstrations — would “start getting along.” 

“You know, they are supposed to be allies. And it puts us in a very difficult position. South Korea and Japan are fighting all the time,” Trump said.

[Politico]

Trump Swipes at Emmanuel Macron Over Attempts to Broker Iran Talks: Nobody Speaks for the US but the US Itself

President Donald Trump said Thursday that the US would not participate in discussions with Iran should France attempt to be the mediator.

” Nobody speaks for the United States but the United States itself. No one is authorized in any way, shape, or form, to represent us!” the president tweeted Thursday. He added that Iran “desperately wants to talk to the US” but is given “mixed signals” by those “purporting to represent” US interests.

The U.S. has been ramping up pressure on Iran in the form of strict sanctions as of late. Sanctions specifically have been imposed upon  Iran’s foreign minister Mohammad Javad Zarif accusing him of being an “apologist” for the Islamic Republic.

Iran’s President Hassan Rouhani has been asking French President Emmanuel Macron to mediate discussions between the US and Iran regarding sanctions. Iran has reacted to renewed US sanctions aimed at strangling its oil trade by retreating from commitments to limit nuclear activity. Since the US pulled out of the nuclear deal last year,France, Britain and Germany have worked to salvage the deal.

Rouhani’s office quoted him as having told Macron, “Concurrent with attempts by Iran and France to reduce tensions and create helpful conditions for lasting coexistence in the region, we are witnessing provocative actions by the Americans,” according to Radio Farda, the Iranian branch of the US government-funded Free Europe/Radio Liberty.

[Mediaite]

Trump administration labels China a currency manipulator

The Trump administration on Monday designated China a “currency manipulator,” after the country’s central bank allowed its currency to weaken amid the ongoing trade dispute.

The move comes hours after Trump accused Beijing of depreciating its currency on Twitter, adding later that such measures have been used to “steal our business and factories, hurt our jobs, depress our workers’ wages and harm our farmers’ prices. Not anymore!”

The People’s Bank of China allowed its currency to fall below 7 yuan to the American dollar, which is considered to be a psychologically important marker, for the first time in a decade. The move was seen as a retaliatory measure following Trump’s threat to slap a 10% tariff on $300 billion of Chinese goods.

The yuan’s depreciation comes amid a longstanding trade war between Washington and Beijing as each side has slapped economic penalties alongside on-again, off-again negotiations.

Presidents have often used the twice-a-year currency report as a diplomatic tools while engaging with countries that are seen as having exchange rates that harm US jobs and economic growth.

The United States hasn’t labeled a country a currency manipulator since it tagged China in the early 1990s, under President Bill Clinton. Designating a country doesn’t immediately trigger penalties, but it is seen by other governments as a provocation.

Treasury has repeatedly declined to label China a currency manipulator, despite Trump’s pledge to do so during his 2016 campaign. Instead, the country was placed on Treasury’s “monitoring list” in its review of US trading partners along with eight other countries.

Treasury’s report highlighted “significant concerns” over the meaningful depreciation of China’s currency against the US dollar, a critical component of ongoing trade talks, and urged China to take steps to avoid “a persistently weak currency.”

But on Monday Treasury said China’s central bank openly acknowledged that it has “extensive experience manipulating its currency and remains prepared to do so on an ongoing basis,” pointing to an earlier statement released by the People’s Bank of China.

The PBOC’s statement noted that it “has accumulated rich experience and policy tools, and will continue to innovate and enrich the control toolbox, and take necessary and targeted measures against the positive feedback behavior that may occur in the foreign exchange market.”

Trump has repeatedly argued that the Chinese have depreciated their currency slowly in the last year to help offset tariffs on billions of dollars of Chinese goods amid an ongoing trade war between the two major economic superpowers.

[CNN]

Reality

Donald Trump knows nothing about economics and it’s again abundantly clear after he labeled China a currency manipulator after the yuan dropped 1.7 percent, claiming China purposefully forced the yuan down.

The reality is the yuan’s decrease was from three different forces, first trade wars can cause a country’s currency to plunge. For example this happened to Mexico during Trump’s trade war for NAFTA 2.0.
(See: https://www.cnbc.com/2019/05/31/peso-plunges-vs-the-us-dollar-after-trump-announces-mexican-import-tariffs.html)

Second, a stronger dollar causes other countries currencies to devalue in relation. This is basic economics. As a side note Donald Trump doesn’t want a stronger dollar and has tried to get the Fed to artificially weaken the dollar. You know… manipulate currency.
(See: https://www.investopedia.com/terms/d/devaluation.asp)

Finally China had actually been propping up the yuan during Trump’s trade wars, the action China took was to just stop and accepting current market forces. Again, China most likely stopped fighting market headwinds as retaliation to Trump’s escalation of his trade wars, so the correct assessment is they were artificially manipulating the currency before by propping it up, but Trump is saying they are manipulating the currency now, which is just plain incorrect.
(See: https://www.ft.com/content/9d24c1ca-b7cd-11e9-96bd-8e884d3ea203)

Trump is speeding us into a Smoot-Hawley scenario, which exacerbated the Great Depression, and will make the next recession worse than it normally will be with his backwards understanding of basic economics.

Emails show Stephen Miller pressed hard to limit green cards

White House senior adviser Stephen Miller wasn’t getting an immigration regulation he wanted. So he sent a series of scorching emails to top immigration officials, calling the department an “embarrassment” for not acting faster, according to emails obtained by POLITICO.

The regulation in question would allow the Department of Homeland Security to bar legal immigrants from obtaining green cards if they receive certain government benefits. The rule will likely be released in the coming days, according to a pair of current and former Trump officials briefed on the timeline.

The emails, which POLITICO obtained through the Freedom of Information Act, shed new light on how aggressively Miller has pressured the Department of Homeland Security to move faster on regulations to limit immigration. Critics say the new rule will be used to shore up Trump’s political base in the coming election year, and that it’s an illegitimate tool to reduce legal immigration. 

One former Trump official said Miller has maintained a “singular obsession” with the public charge rule, which he’s argued would bring about a transformative change to U.S. immigration.

At the receiving end of Miller’s pressure campaign was U.S. Citizenship and Immigration Service Director Francis Cissna, an immigration hawk with strong support from restrictionist groups who resigned in May amid a broader Homeland Security Department shakeup that also saw the exit of former Secretary Kirstjen Nielsen and other top officials.

In an email sent on June 8, 2018, Miller lambasted Cissna for the pace of his efforts to implement the public charge rule. “Francis — The timeline on public charge is unacceptable,” Miller wrote. “The public charge reg has been in the works for a year and a half. This is time we don’t have. I don’t care what you need to do to finish it on time. You run an agency of 20,000 people.”

In the message, Miller derided Cissna’s overall performance at USCIS, the agency charged with screening visa applicants and processing immigration paperwork. Cissna was known for his deliberate approach to the regulatory process.

“It’s an embarrassment that we’ve been here for 18 months and USCIS hasn’t published a single major reg,” Miller barked.

According to a version of the rule proposed in October 2018, the regulation would allow federal immigration officials to deny green cards to legal immigrants who’ve received food stamps, welfare, Medicaid, prescription drug subsidies or Section 8 housing vouchers. It could also deny green cards to immigrants deemed likely to receive such government benefits in the future.

With Trump poised to make immigration a centerpiece of his 2020 reelection campaign, a new crackdown on legal immigrants who receive government assistance could energize voters who view immigration — even when done legally — as a fiscal drain and cultural danger.

“This is something that will play well going into the next election, especially considering the prevailing view among the Democratic candidates who are talking about admitting more immigrants and offering more benefits,” said Jessica Vaughan, a director with the Center for Immigration Studies, which pushes for lower levels of both legal and illegal immigration. 

But Miller’s previously undisclosed emails could raise legal questions about whether the public charge rule was rushed to completion. The regulatory process will almost certainly be challenged in court, according to opponents bracing for the change.

In addition, the emails could reinvigorate Democratic efforts to compel Miller to testify before Congress. The White House in April denieda voluntary invitation to testify before the House Oversight Committee, which is chaired by Rep. Elijah Cummings (D-Md.). The committee chairman had pressed Miller to explain his role in the development of what he called “troubling” immigration policies.

Acting USCIS Director Ken Cuccinelli — Cissna’s replacement at the agency and another immigration hawk — said the public charge regulation will demonstrate that Trump remains committed to his immigration agenda.

According to a version of the rule proposed in October 2018, the regulation would allow federal immigration officials to deny green cards to legal immigrants who’ve received food stamps, welfare, Medicaid, prescription drug subsidies or Section 8 housing vouchers. It could also deny green cards to immigrants deemed likely to receive such government benefits in the future.

With Trump poised to make immigration a centerpiece of his 2020 reelection campaign, a new crackdown on legal immigrants who receive government assistance could energize voters who view immigration — even when done legally — as a fiscal drain and cultural danger.

“This is something that will play well going into the next election, especially considering the prevailing view among the Democratic candidates who are talking about admitting more immigrants and offering more benefits,” said Jessica Vaughan, a director with the Center for Immigration Studies, which pushes for lower levels of both legal and illegal immigration. 

But Miller’s previously undisclosed emails could raise legal questions about whether the public charge rule was rushed to completion. The regulatory process will almost certainly be challenged in court, according to opponents bracing for the change.

In addition, the emails could reinvigorate Democratic efforts to compel Miller to testify before Congress. The White House in April denieda voluntary invitation to testify before the House Oversight Committee, which is chaired by Rep. Elijah Cummings (D-Md.). The committee chairman had pressed Miller to explain his role in the development of what he called “troubling” immigration policies.

Acting USCIS Director Ken Cuccinelli — Cissna’s replacement at the agency and another immigration hawk — said the public charge regulation will demonstrate that Trump remains committed to his immigration agenda.

[Politico]

Trump praises North Korean dictator’s ‘great and beautiful’ vision for his country

Donald Trump has heaped fresh affection on North Korea’s Kim Jong-un– praising his “great and beautiful” vision for the country.

Earlier this week, the US president played down the significance of a series of short-range missile tests carried out by Pyongyang, saying they were “very standard” and would not impact his ongoing diplomatic engagement with Mr Kim.

Speaking to reporters before he left the White House for a rally in Ohio, Mr Trump was asked about the missile tests, the latest of which was fired from North Korea’s South Hamgyong province.

“I think it’s very much under control, very much under control,” he said, saying the tests were of short-range missiles. “We never made an agreement on that. I have no problem. We’ll see what happens. But these are short-range missiles. They are very standard.”

Mr Trump, who in June made history by becoming the first sitting US president to visit North Korea when he met Mr Kim at the demilitarised zone between the two countries on the Korean peninsula and stepped into the north, on Friday repeated his claim the missile tests were not a problem.

“Kim Jong-un and North Korea tested 3 short range missiles over the last number of days. These missiles tests are not a violation of our signed Singapore agreement, nor was there discussion of short range missiles when we shook hands,” he said on Twitter. 

He added: “I may be wrong, but I believe that chairman Kim has a great and beautiful vision for his country, and only the United States, with me as president, can make that vision come true.

“He will do the right thing because he is far too smart not to, and he does not want to disappoint his friend, president Trump!”

Mr Trump’s outreach to the North Korean dictator, accused of overseeing widespread human rights abuses, has divided opinion. 

Some have accused the president of giving legitimacy to the North Korean regime, while securing little in return. 

Others, including some of those who frequently criticised the president, have praised his outreach, and said it is better the nuclear-armed nations are talking to each other, after decades of hostility and mutual suspicion.

[The Independent]

US formally withdraws from nuclear treaty with Russia and prepares to test new missile

The United States formally withdrew from the Intermediate-Range Nuclear Forces Treaty with Russia Friday, as the US military prepares to test a new non-nuclear mobile-launched cruise missile developed specifically to challenge Moscow in Europe, according to a senior US defense official.

The US withdrawal puts an end to a landmark arms control pact that has limited the development of ground-based missiles with a range of 500 to 5,500 kilometers and is sparking fears of a new arms race.

“Russia is solely responsible for the treaty’s demise,” Secretary of State Mike Pompeo said in a statement Friday announcing the US’ formal withdrawal from the Cold-War era nuclear treaty.

Pompeo said, “Russia failed to return to full and verified compliance through the destruction of its noncompliant missile system.”

NATO Secretary General Jens Stoltenberg told CNN’s Hala Gorani that the treaty’s end is a “serious setback.”

‘A bad day’

“The fact that we don’t have the INF Treaty anymore, the fact that the Russians over the years have deployed new missiles, which can reach European cities within minutes, which are hard to detect, are mobile and are nuclear capable, and therefore reduce the threshold of any potential use of nuclear weapons in an armed conflict — of course that’s a bad day for all of us who believe in arms control and stability in Europe,” Stoltenberg said.”At the same time, NATO is there to protect all our allies and we will take the necessary measures to retain credible defense,” he added.The new US missile test, which CNN reported Thursday, is expected to take place in the next few weeks and will essentially be the Trump administration’s answer to Russia’s years-long non-compliance with the INF treaty, the senior US defense official said.A senior administration official told reporters that the US will be testing the cruise missiles that were forbidden by the INF treaty because “Russia cannot maintain military advantage,” but claimed that it will take years for the US to deploy those weapons.

Deployment

“We are literally years away before we would be at a point where we would talk about basing of any particular capability. Because of our steadfast adherence to the treaty over 32 years, we are barely, after almost a year, at a point where we are contemplating initial flight tests,” explained the senior administration official, noting that the US would only look at deploying conventional weapons, not nuclear weapons.

But the Pentagon said in March that this ground launched missile could be ready for deployment within 18 months. The administration’s budget request for fiscal year 2020, released in February, included $96 million for continued research and development on INF range missile systems.

And arms control experts say it’s not difficult to convert existing air- or sea-based systems into the ground-based missile the Pentagon plans to test. “It is not a significant engineering task,” said Jon Wolfsthal, director of the Nuclear Crisis Group and a former nuclear expert for the National Security Council under the Obama administration. “It’s well within the capability of major defense contractors and the army to pull off.”

The end of the INF pact leaves the US and Russia with just one nuclear arms agreement, the New START Treaty, which governs strategic nuclear weapons and delivery systems for each side. If New START isn’t renewed or extended by 2021, the world’s two largest nuclear powers would have no limits on their arsenals for the first time in decades.

President Donald Trump’s ambivalent comments about New START and national security advisor John Bolton’s well-known dislike for arms control treaties have given rise to deep concern about a new nuclear arms race.

UN Secretary General Antonio Guterres told reporters Thursday that the INF Treaty’s expiry means “the world will lose an invaluable brake on nuclear war. This will likely heighten, not reduce, the threat posed by ballistic missiles.”

He urged the US and Russia to “urgently seek agreement on a new common path for international arms control.”

Retired Gen. Wesley Clark, a former NATO supreme allied commander, said on CNN “New Day” that the termination of the treaty also marks “one more ratchet up on the movement towards a more adversarial relationship with Russia.”

But he added that the US “really didn’t have a choice” because the treaty wasn’t effective.

‘A competition with nuclear arms’

“We’re going into a new competition, a military competition, including a competition with nuclear arms against development that Russia, and to some extent, China are making,” Clark said. “No one wants to do this. It’s expensive, it’s dangerous, but it’s necessary if we’re going to maintain our security in an uncertain world.”The Trump administration casts the forthcoming test of the new ground-based missiles as necessary to US national security, even as it seeks to tamp down any suggestion that the US is triggering an arms race, a claim that’s met with skepticism in the arms control community.When asked if the US will commit to maintaining some kind of arms control despite this treaty being defunct, the official largely put the onus on Russia.”I can’t speak for the Russian federation so I can’t promise that they will be amenable to additional arms control,” the official said. “I can only tell you that the US, from the President on down, is interested in finding an effective arms control solution.”On Friday, Russia said it is inviting the US and NATO to join them in declaring a moratorium on deployment of intermediate-range and shorter-range missiles.

‘Not credible’

“We invited the US and other NATO countries to assess the possibility of declaring the same moratorium on deploying intermediate-range and shorter-range equipment as we have, the same moratorium Vladimir Putin declared, saying that Russia will refrain from deploying these systems when we acquire them unless the American equipment is deployed in certain regions,” Russian Deputy Foreign Minister Sergei Ryabkov said, Russian state news agency TASS reported.Stoltenberg on Friday dismissed Russia’s offer of a moratorium as “not credible,” because Russia has been deploying missiles for years.”There is zero credibility in offering a moratorium on missiles they are already deploying,” he said. “There are no new US missiles, no new NATO missiles in Europe but there are more and more Russian missiles,” Stoltenberg said in a press conference at NATO headquarters in Brussels.International allies, including the United Kingdom, emphasized their support for the US’ move to withdraw from the INF treaty.NATO allies said in a statement that Russia remains in violation of the INF Treaty, “despite years of U.S. and Allied engagement,” adding that they fully support the US’ decision.

NATO added that over the past six months Russia had a “final opportunity” to honor the treaty but failed.UK Foreign Secretary Dominic Raab said Russia caused the INF Treaty collapse, tweeting, “Their contempt for the rules based international system threatens European security.”The senior US defense official said that the US has long had evidence that Russia has developed, tested and fielded “multiple battalions” of non-INF compliant cruise and ballistic missiles. The US believes the deployments are “militarily significant” because the missiles are mobile, allowing Moscow to move them rapidly and making it difficult for the US to track them.The Russian missiles use solid fuel, which also means they can be readied in a very short time frame to be fired at targets, especially in western Europe.Alexandra Bell, senior policy director at the non-partisan Center for Arms Control & Non-Proliferation, explains that “with this type of missile there’s very short warning, attacks are harder to spot by radar, so it’s just more destabilizing. They made the situation in Europe more dangerous.”

Russian targets

The Pentagon has been working on the new missile system’s very initial phases, which will lead to the first test in the coming weeks, the defense official said. The official emphasized there is no formal program yet to develop the missile, because the INF treaty has been in effect.The US also has yet to formally discuss and commit to firm basing options, the defense official said. The concept, the official said, would be to position the missiles in militarily advantageous positions from which they could fire past Russian defenses and target ports, military bases or critical infrastructure.But no NATO member “has said it would be willing to host new US intermediate range missiles,” Kingston Reif, director for disarmament and threat reduction policy at the Arms Control Association.Indeed, several NATO members, including Poland, have made clear that any deployment of the missiles in Europe would have to be approved by all NATO members. Stoltenberg has emphasized that NATO will respond to the end of the INF Treaty as an alliance and would not be amenable to US missile deployments on its border.”What we will do will be measured, it will be coordinated as a NATO family, no bilateral arrangements, but NATO as an alliance,” Stoltenberg said last month. “We will not mirror what Russia is doing, meaning that we will not deploy missiles,” the NATO chief said.

[CNN]

Trump Ratchets Up U.S.-China Trade War With More Tariffs; Stocks Slide

President Trump announced Thursday that the United States will impose a new 10% tariff on $300 billion worth of products imported from China, saying Beijing had broken some of the promises it made in trade negotiations.

The new tariffs, which are set to take effect Sept. 1, represent another ratcheting up in trade tensions between the countries and sent stocks falling sharply. 

Major U.S. stock indexes fell about 1% and the Dow Jones Industrial Average closed down 280 points. Oil prices tumbled about 8% after Trump’s announcement on concerns that the tariffs would hurt demand.

The move comes days after U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin traveled to Shanghai for a brief meeting about trade with Chinese officials.

The White House said the meeting was “constructive” and negotiations were scheduled to resume in September in Washington, D.C.

But Trump indicated he was disappointed by the lack of progress in the talks, saying China had failed to follow through on promises to curb the sale of fentanyl and buy more products from U.S. farmers.

“Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!” Trump said in a tweet.

Still, the president tried to strike a more positive tone than he has in the past, saying, “We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”

The president has already imposed 25% tariffs on $250 billion in Chinese imports. In May, Trump had threatened additional tariffs but suspended them at the last minute.

Now, he is going ahead with tariffs after all, though at a lower rate than before.

On Wednesday, the Federal Reserve cut interest rates for the first time since 2008 amid signs that the economies of the United States and other countries are slowing. The central bank also cited the uncertainty created by the standoff with China.

“Certainly, we’ve seen … that when there’s a sharp confrontation between two large economies, you can see effects on business confidence pretty quickly and on financial markets pretty quickly,” Fed Chairman Jerome Powell said in a news conference after the interest rate announcement.

Industry groups said the new tariffs will hurt shoppers and threaten jobs.

“We are disappointed the administration is doubling-down on a flawed tariff strategy that is already slowing U.S. economic growth, creating uncertainty and discouraging investment,” David French, vice president of government relations at the National Retail Federation, said in a statement. “These additional tariffs will only threaten U.S. jobs and raise costs for American families on everyday goods.”

Matt Priest, head of the Footwear Distributors and Retailers of America, said in a statement: “President Trump is, in effect, using American families as a hostage in his trade war negotiations. Tariffs are taxes and this move will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry.”

Trump has lately indicated that the U.S. can win a trade war with Beijing, pointing out that China’s economy has been slowing after a long period of rapid growth.

U.S. officials want China to address the theft of intellectual property, stop subsidizing its companies and open its markets to more U.S. goods.

[NPR]

Trump Offered Putin U.S. Help Fighting Wildfires, Kremlin Says

Donald Trump called Russian President Vladimir Putin on Wednesday to offer U.S. help fighting Siberian wildfires, the Kremlin said in a statement.

Putin thanked Trump for the offer but said a group of airplanes had been formed in Siberia to fight the fires, according to a translation of the statement. Putin said that Trump’s call was a signal that “in the future, it will be possible to restore full-format relations between the two countries.”

The White House later confirmed the call and said that the two leaders also discussed trade.

Relations between the U.S. and Russia deteriorated after American intelligence agencies determined that the Kremlin interfered in the 2016 election on Trump’s behalf. The U.S. issued sanctions against Russia both for the election interference and the attempted murder of a former Russian spy in the U.K. that the British government blamed on the Kremlin.

Trump has nonetheless tried to maintain a personal friendship with Putin. The two leaders agreed to continue discussions by phone and in meetings, the Kremlin statement said.

Putin ordered the Russian military to help fight the Siberian fires earlier on Wednesday. Russia has declared a state of emergency in four Siberian districts because of the fires. Plumes of smoke visible from space have stretched across the region to the Ural mountains thousands of miles away.

June temperatures in the Siberian districts were about 10 degrees Fahrenheit (6 degrees Celsius) above the 30-year average from 1981 to 2010. About 3 million hectares were burning as of Wednesday, according to the country’s Federal Forestry Agency.

Wildfires in the U.S. haven’t always drawn sympathy from the American president.

Trump sparked outrage last year as wildfires devastated parts of California by insisting that poor forest management by the state’s Democratic leaders was to blame. He threatened to withhold federal money for maintaining the forests even as the fires raged through Butte County north of Sacramento, effectively destroying the town of Paradise and killing dozens of people.

After a backlash, Trump softened his tone and approved an expedited request for disaster aid.

Nevertheless, Trump has proposed cutting the U.S. Forest Service’s funding for the national forest system by as much as 19%. Some of the programs designed to reduce wildfire risk, including restoring forest landscapes and the Integrated Resource Restoration Pilot, would be eliminated altogether.

[Bloomberg]


Trump Just Strong-Armed Guatemala Into a “Safe Third Country” Agreement.

The United States and Guatemala have reached a deal that has the potential to end most asylum seekers’ ability to seek protection at the US-Mexico border.

Under an agreement announced Friday afternoon, asylum seekers who travel through Guatemala on their way to the United States would be returned to Guatemala and forced to seek protection there. That would largely block Salvadorans and Hondurans from receiving asylum in the United States, as well as large numbers of asylum seekers from around the world who travel by land to the US border after flying to South America. Instead, only Mexicans and Guatemalans would be able to seek protection at the border.

The agreement would not apply to children who arrive at the border alone and would remain in effect for two years, according to a copy released by the Guatemalan government (in Spanish).

Acting Homeland Security Secretary Kevin McAleenan said on a press call that he expects the deal, which is known as a safe third country agreement, to take effect in the next few weeks. Earlier this month, Guatemala’s Constitutional Court blocked President Jimmy Morales from unilaterally signing such an agreement. It is still not clear how Morales’ administrations plans to get around that. 

Beyond that it is unclear how Guatemala—which has become the leading sending country of migrants to the United States under Trump—plans to provide refuge for the thousands of asylum seekers who could arrive from El Salvador, Honduras, and elsewhere. As the Washington Post‘s Mexico and Central America bureau chief, Kevin Sieff, pointed out on Twitter, Guatemala doesn’t exactly have much recent experience handling asylum claims.

The deal, if it goes into effect, would be one of Trump’s two most important efforts to undermine the asylum system. The other is the Remain in Mexico program, which is forcing thousands of asylum seekers to wait in Mexico while their asylum claims are pending in US immigration courts. Combined, the two policies could block the vast majority of asylum seekers who come to the southern border from entering the United States. People who fly or travel by sea to the United States would still be eligible to apply for asylum. (The problem for asylum seekers, particularly those who aren’t wealthy, is that it is often impossible to get a visa to fly to the United States, which is why people turn to smugglers instead.)

McAleenan said that by requiring people to apply for asylum in Guatemala, the agreement would “increase the integrity of the [asylum] process, keep vulnerable families that are really economic migrants out of the hands of smugglers, and allow us to reach those with asylum claims more expeditiously.”

Morales was supposed to come to the White House on July 15 to sign a safe third country agreement, but the trip was canceled at the last minute in response to the Constitutional Court decision. Trump responded to the Guatemalan court decision this week by threatening to impose tariffs on Guatemala and ban Guatemalans from entering the United States. 

Like Trump, Morales is a former television personality who ran for president in 2015 as a political outsider. Since then, Morales has worked aggressively to undermine a renowned UN-backed anti-corruption commission that has targeted members of his family. His administration also has gone out of its way to please Trump, moving its Israeli embassy to Jerusalem immediately after the United States did. The Trump administration has been largely silent about Morales’ efforts to undermine the rule of law in Guatemala.

[Mother Jones]

Trump targets French wine to retaliate for France’s digital tax

The United States will announce retaliatory action against France in response to the country’s new tax affecting American technology companies, President Donald Trump said Friday.

He suggested he could target French wine with tariffs — a move experts considered the most likely U.S. response to the French digital services tax.

“I’ve always said American wine is better than French wine!” Trump tweeted.

In the tweet, the president said his administration will unveil “a substantial reciprocal action” following what he called French President Emmanuel Macron’s “foolishness.”

Earlier this month, France passed a 3% tax that will affect firms such as Facebook and Google that draw about $28 million or more in revenue from digital services in France. The Trump administration then started an investigation under Section 301 of the Trade Act of 1974.

If, after the probe, the U.S. determines the tax is discriminatory or unreasonably targets U.S. firms, Trump could respond with tariffs. Trade experts considered Trump’s most likely response a 100% tariff on French wine — one of the country’s signature, symbolic products.

In a statement Friday, White House spokesman Judd Deere criticized France’s tax but did not give any new details on what the U.S. could do to retaliate. He said the administration is “looking closely at all other policy tools” in addition to the already launched investigation as it determines how to respond to France.

“The Trump Administration has consistently stated that it will not sit idly by and tolerate discrimination against U.S.-based firms,” he said.

In a CNBC interview last month, Trump suggested he could put tariffs on French wine. He said California wine producers have complained to him about France putting higher tariffs on imports than the U.S. does. “And you know what, it’s not fair. We’ll do something about it,” he said.

France exported 3.2 billion euros (or about $3.6 billion) in wine to the U.S. last year, according to the Federation of French Wines and Spirits Exporters. The U.S. was France’s biggest wine export market.

Trump does not drink alcohol, but he is familiar with the wine industry. While in office, Trump has touted the Virginia-based Trump Winery operated by his son, Eric.

Tariffs on France would open up another conflict as Trump tries to navigate thorny trade relationships around the globe. Already in the coming months, the White House looks to push a skeptical Congress to approve Trump’s replacement for the North American Free Trade Agreement and strike a trade deal with China.

[NBC News]

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