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

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 MotorsApple, 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]

Sarah Sanders: Climate change report ‘not based on facts’

White House press secretary Sarah Huckabee Sanders on Tuesday dismissed the findings of a government report that warned of the impending consequences of climate change, claiming it’s “not based on facts.”

“The president’s certainly leading on what matters most in this process, and that’s on having clean air, clean water,” Sanders told reporters at a press briefing. “In fact, the United States continues to be a leader on that front.”

Sanders disputed the report’s findings, claiming it’s “not based on facts” and arguing that modeling the climate “is never exact.” She did not indicate that Trump would call on world leaders at this week’s Group of 20 summit to address the report’s findings.

“We think that this is the most extreme version and it’s not based on facts,” she said. “It’s not data driven. We’d like to see something that is more data driven. It’s based on modeling, which is extremely hard to do when you’re talking about the climate.”

The report was developed by multiple federal agencies. A version of it is mandated to be released every four years under the National Climate Assessment from the multiagency Global Change Research Program.

The hundreds of government and external scientists involved in the research concluded that climate change could cost the United States billions of dollars annually within decades if greenhouse gases aren’t dramatically reduced, and could worsen environmental disasters like wildfires and flooding. Its findings aligned with those of the broader scientific community.

Trump downplayed the report’s findings, telling reporters on Monday’s that he doesn’t “believe” its warnings about the economic impacts of climate change.

The president has long voiced skepticism about the existence of climate change.

Democrats criticized that the report was released on Black Friday, the day after Thanksgiving, saying the timing was meant to bury it. They renewed calls for the use of renewable energy sources and other policies that could mitigate the effects of climate change.

Republican lawmakers have largely acknowledged that the climate is changing but have offered few concrete solutions to address the problem. Some lawmakers have emphasized the need to find innovations that would not adversely affect the economy.

[The Hill]

Trump on dire warnings in climate report: ‘I don’t believe it’

President Trump said Monday that he doesn’t “believe” the findings of a major report his administration released forecasting dire consequences to the United States from climate change.

“Yeah, I don’t believe it,” Trump told reporters as he left the White House for a campaign rally for Sen. Cindy Hyde Smith (R) in Mississippi, when asked about the predictions of economic devastation.

“I’ve seen it, I’ve read some of it, and it’s fine,” Trump said of the report.

The report, part of the fourth congressionally-mandated National Climate Assessment from the multi-agency Global Change Research Program, came out Friday, the day after Thanksgiving and a major shopping day for the United States. That led critics to charge that Trump was trying to bury the findings.

The hundreds of government and external scientists involved in the research concluded that climate change could cost the United States billions of dollars annually within decades if greenhouse gases aren’t dramatically reduced.

“Without substantial and sustained global mitigation and regional adaptation efforts, climate change is expected to cause growing losses to American infrastructure and property and impede the rate of economic growth over this century,” it found.

The conclusions generally align with the scientific consensus on climate change, including that human activity, via greenhouse gases, is the chief cause of global warming and its impacts.

Trump has been outspoken in doubting the scientific consensus on climate. He tweeted in 2012 that “The concept of global warming was created by and for the Chinese in order to make U.S. manufacturing non-competitive.”

His environmental policy since taking office last year has followed that skepticism. Through the Environmental Protection Agency and other agencies, he has sought to significantly roll back or repeal nearly every climate policy former President Obama put into place, including greenhouse gas rules for power plants, cars and oil and natural gas drillers.

Trump’s position that he doesn’t “believe” the report aligns with some other Republicans who sought to discredit its findings.

Former Sen. Rick Santorum (R-Pa.) said on CNN’s “State of the Union” that scientists involved in the research were motivated to get to their conclusions by money. He did not provide any evidence to back the claim.

“If there was no climate change, we’d have a lot of scientists looking for work. The reality is that a lot of these scientists are driven by the money that they receive,” he said.

Former House Majority Leader Tom DeLay (R-Texas) also charged that scientists were motivated by money.

“Through the entire report, there’s no dissenting opinion. They went out and picked out people that would say what their conclusions they already wrote before they did the report,” he said Monday on CNN. “It’s flawed, it’s ridiculous, and frankly, embarrassing.”

[The Hill]

Media

 

 

 

Trump Lies in Tweet Ripping ‘Fake 60 Minutes’ Episode on Child Separation: ‘I Tried to Keep Them Together’

On Sunday, 60 Minutes ran a report on Trump’s family separation policy.

Trump quickly replied by calling the segment “fake news.”

“60 Minutes did a phony story about child separation when they know we had the exact same policy as the Obama Administration,” Trump wrote. “In fact, a picture of children in jails was used by other Fake Media to show how bad (cruel) we are, but it was in 2014 during O[bama] years. Obama separated children from parents, as did Bush etc.. because that is the policy and law.”

He added: “I tried to keep them together but the problem is, when you do that, vast numbers of additional people storm the Border. So with Obama separation is fine, but with Trump it’s not. Fake 60 Minutes!”

Trump’s tweet repeats a claim made by Department of Homeland Security Secretary Kirstjen Nielsen and other Trump officials to defend the child separation policy.

Yet, the administration cannot provide statistics to back up their claim that Trump’s policy was the same as Obama’s or other presidents.

In addition, Theresa Cardinal Brown, director of immigration and cross-border policy at the Bipartisan Policy Center noted to FactCheck.org that previous administrations used “family detention facilities, allowing the whole family to stay together while awaiting their deportation case in immigration court, or alternatives to detention, which required families to be tracked but released from custody to await their court date,”  making it clear Trump’s policy is indeed not the “exact same” policy as Trump claimed in his Sunday night tweet.

[Mediaite]

Trump Announces All Asylum Seekers Must Now ‘Stay in Mexico’ Until Claims Approved in Court

On Saturday, President Donald Trump announced via a pair of tweets that migrants seeking asylum will now have to remain in Mexico until their claims are approved in court.

“Migrants at the Southern Border will not be allowed into the United States until their claims are individually approved in court. We only will allow those who come into our Country legally. Other than that our very strong policy is Catch and Detain. No ‘Releasing’ into the U.S.,” Trump wrote.

He then added in a second tweet: “All will stay in Mexico. If for any reason it becomes necessary, we will CLOSE our Southern Border. There is no way that the United States will, after decades of abuse, put up with this costly and dangerous situation anymore!”

Trump’s announcement comes just days after the Washington Postreported on plans to implement the policy as early as Friday.

According to DHS memos obtained by The Washington Post on Wednesday, Central American asylum seekers who cannot establish a “reasonable fear” of persecution in Mexico will not be allowed to enter the United States and would be turned around at the border.

The plan, called “Remain in Mexico,” amounts to a major break with current screening procedures, which generally allow those who establish a fear of return to their home countries to avoid immediate deportation and remain in the United States until they can get a hearing with an immigration judge. Trump despises this system, which he calls “catch and release,” and has vowed to end it.

At the time, Department of Homeland Security spox Katie Waldman said the policy will not start “this week.”

Yet, Trump also teased plans to close the entire border while speaking with reporters on Thanksgiving Day.

Earlier today, WaPo also reported that the Trump administration had reached a deal with Mexico to allow migrants to wait in the country. However, incoming Interior Minister Olga Sanchez has since deniedsuch deal exists.

The ‘Remain in Mexico’ policy is likely to meet court challenges in the days ahead especially since just this past Monday a San Francisco judge ruled Trump may not rewrite immigration laws.

[Mediaite]

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

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

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]

Trump Boasts He Knew of Bin Laden Before 9/11 Attacks: ‘I Pointed Him Out in My Book’

President Donald Trump took to Twitter this morning to claim that he called for the capture of late al-Qaeda founder Osama bin Laden years before the terrorist group’s 9/11 attacks.

“Of course we should have captured Osama bin Laden long before we did. I pointed him out in my book just BEFORE the attack on the World Trade Center. President Clinton famously missed his shot. We paid Pakistan Billions of Dollars & they never told us he was living there. Fools!” Trump tweeted, after he bashed the U.S. military in an interview on Fox News Sunday for not killing bin Laden sooner.

“We no longer pay Pakistan the $Billions because they would take our money and do nothing for us, Bin Laden being a prime example, Afghanistan being another,” he added. “They were just one of many countries that take from the United States without giving anything in return. That’s ENDING!”

However, the president’s claims that he called for the capture of bin Laden are questionable at best.

In his book The America We Deserve, which Trump referenced as proof that he was onto al-Qaeda before 9/11, but the following passage — the only time bin Laden is mentioned, per Politifact — shows that he did not have a specific intuition about bin Laden, and was instead criticizing America’s erratic policies in the Middle East at the time:

“Instead of one looming crisis hanging over us, we face a bewildering series of smaller crises, flash points, stand offs, and hot spots. We’re not playing the chess game to end all chess games anymore. We’re playing tournament chess – one master against many rivals. One day we’re assured that Iraq is under control, the UN inspectors have done their work, everything’s fine, not to worry. The next day the bombing begins. One day we’re told that a shadowy figure named Osama bin Laden is public enemy number one, and U.S. jet fighters lay waste to his camp in Afghanistan. He escapes back under some rock, and a few news cycles later, it’s on to a new enemy and a new crisis.”

During the early days of his 2016 campaign, Trump repeated the same claim, saying, “Remember that in The America We Deserve, I wrote that book in 2000, I wrote about Osama bin Laden: ‘We’ve got to take him out,’” Trump said during a Dec. 2 rally for his presidential campaign.

Last night, Trump attacked retired admiral William McRaven for not getting to bin Laden sooner.

“Wouldn’t it have been nice if we got Osama bin Laden a lot sooner than that, wouldn’t it have been nice?” Trump said to Fox News. “You know, living — think of this — living in Pakistan, beautifully in Pakistan, in what I guess they considered a nice mansion, I don’t know, I’ve seen nicer, but living in Pakistan right next to the military academy. Everybody in Pakistan knew he was there.”

[Mediaite]

President Trump says raking can prevent fires: Finland’s President Sauli Niinistö denies the conversation

While touring a town ravaged by the Northern California Camp Fire on Saturday, President Trump said Finland’s president claimed the country doesn’t have many problems with forest fires because it spends “a lot of time on raking.” Finland’s President Sauli Niinistö said the topic of raking never came up in their conversation.

Mr. Trump was visiting Paradise, California, this weekend with California Gov. Jerry Brown, California Governor-elect Gavin Newsom and Paradise Mayor Jody Jones when he was asked what could be done to prevent a similar disaster in the future. The wildfire has been called the deadliest and most destructive in the Golden State’s history.

“You gotta take care of the floors. You know? The floors of the forest. Very important,” said Mr. Trump. “I was with the President of Finland and he said, ‘We have a much different — we’re a forest nation.’ He called it a ‘forest nation.’ And they spend a lot of time on raking and cleaning and doing things, and they don’t have any problem. And when it is, it’s a very small problem.”

Niinistö said he doesn’t remember mentioning raking leaves with Mr. Trump, but did say the two leaders spoke about the California wildfires when they met in Paris in early November.

“I mentioned [to] him that Finland is a land covered by forests and we also have a good monitoring system and network,” Niinistö told lta-Sanomat, Finland’s second-largest paper on Sunday. He also told the newspaper that he remembers uttering the phrase “we take care of our forests” during their conversation.

Twitter quickly learned of the raking comments, with many from Finland ridiculing Mr. Trump by tweeting images of themselves or others raking in the forest. Some used the hashtag #haravointi, which is translated to #Raking in english.

The Camp Fire in Butte County in Northern California, one of two major blazes in California, has scorched some 150,000 acres of land, killed 77 people and led to at least 1,000 missing people.

The Woolsey Fire in Southern California has burned 96,949 acres and killed three people.

[CBS News]

Media

Donald Trump heads to California, again blaming fires on forest management

President Donald Trump headed to California on Saturday to see firsthand the grief and devastation from the deadliest US wildfire in a century, as confusion continued over how many people remain unaccounted for.

Authorities confirmed a new death toll of 71 and said they were trying to locate 1,011 people even as they stressed that not all are believed missing.

But Trump has stirred resentment among survivors and many others over comments he made two days after the disaster on Twitter, then reiterated on the eve of his visit.

In an interview scheduled for broadcast on Fox News Sunday, Trump said he was surprised to see images of firefighters removing dried brush near a fire, adding, “This should have been all raked out.”

Asked if he thought climate change contributed to the fires, he said: “Maybe it contributes a little bit. The big problem we have is management.”

Before boarding Air Force One to California on Saturday morning, Trump was asked about forest management again and repeated his stance. “Everybody now knows that this is what we have to be doing … It should’ve been done many years ago,” he said.

Those comments, and those in his Fox interview, echoed his initial reaction to the fires on 10 November when he blamed the wildfires on poor forest management and threatened then to withhold federal payments. His words caused widespread outrage, though Trump subsequently approved a federal disaster declaration and he has since repeatedly praised the work of first responders, including just before leaving Washington DC.

“I want to be with the firefighters and the Fema first responders,” Trump said.

California’s outgoing and incoming governors, both Democrats and vocal critics of Trump, planned to join the president on his trip to the fire-ravaged region in the north of the state. Governor Jerry Brown and governor-elect Gavin Newsom welcomed Trump’s visit, declaring it was time “to pull together for the people of California”.

The blaze that started 8 November all but razed the town of Paradise, population 27,000, and heavily damaged the outlying communities of Magalia and Concow. It destroyed more than 9,800 homes and at its height displaced 52,000 people.

This patch of California, a former Gold Rush region in the Sierra Nevada foothills, is to some extent Trump country, with Trump beating Hillary Clinton in Butte County by 4 percentage points in 2016.

But Trump has stirred resentment among survivors with his comments.

“If you insult people, then you go visit them, how do you think you’re going to be accepted? You’re not going to have a parade,” Maggie Crowder of Magalia said this week outside an informal shelter at a Walmart store in Chico.

But Stacy Lazzarino, who voted for Trump, said it would be good for the president to see the devastation up close: “I think by maybe seeing it he’s going to be like ‘Oh, my goodness,’ and it might start opening people’s eyes.”

Authorities attribute the death toll in part to the speed with which flames raced through the town of 27,000, driven by wind and fueled by desiccated scrub and trees.

Nearly 12,000 homes and buildings burned hours after the blaze erupted, the California department of forestry and fire protection said. Thousands of additional structures are still threatened as firefighters, many from distant states, work to contain and suppress the flames.

The big rise in the number of missing is because of a detailed review of emergency calls and missing people reports, and the extension of the search for victims.

More than 5,500 fire personnel are still battling the blaze that covered 228 square miles (590 sq km) and was 50% contained, officials said.

Firefighters were racing against time with a red flag warning issued for Saturday night into Sunday, including winds up to 50mph (80km/h) and low humidity. Rain was forecast for midweek, which could help firefighters but also complicate the challenging search for remains.

Officials acknowledge that the huge number of missing could easily contain duplicate names and unreliable spellings of names. The roster also probably includes many people who fled the blaze and do not realize they have been reported missing.

[The Guardian]

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