By on July 26, 2018

President Donald Trump agreed on Wednesday to refrain from imposing car tariffs while the United States launches negotiations to cut other trade barriers with the European Union. After a meeting at the White House, Trump and European Commission President Jean-Claude Juncker agreed to begin talks that would also seek to resolve U.S. tariffs on steel and aluminum, as well as retaliatory duties from Europe.

It’s the first lull we’ve seen in the trade war in a while. Meanwhile, Chinese trade relations remain as bitter as ever. 

According to Reuters, Juncker described Trump’s decision to postpone auto tariffs a “major concession,” saying that the meeting was highly constructive overall. However, automobiles weren’t the primary focus of the discussion. Cars were just a bargaining chip, put aside momentarily as the pair work toward a common goal.

In a joint statement following the meeting, the United States and European Union acknowledged their $1 trillion bilateral trade relationship — noting that it was the largest economic relationship in the world — emphasizing a new focus to further strengthen trade in a manner beneficial to both parties.

“This is why we agreed today, first of all, to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods. We will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans,” the statement elaborated. It also noted that both sides would work to better protect American and European companies from unfair global trade practices — a not-so-subtle reference to China.

While the U.S. import tariffs of 25 percent on steel and 10 percent on aluminum will remain in place during the talks, Juncker remained optimistic. “It is the first time that the Americans agreed to reassess the measure that they have taken in the steel and aluminum sector,” he said.

There’s a lot of elements in this arrangement, but the hold on new car tariffs is a huge deal and a major victory for both the European Union and automakers across the globe. The Alliance of Automobile manufacturers said the announcement “demonstrates that bilateral negotiations are a more effective approach to resolving trade barriers, not increasing tariffs.”

President Trump took to Twitter to praise the meeting. “Obviously the European Union, as represented by [Juncker] and the United States, as represented by yours truly, love each other,” he said while posting a photo of the two men kissing.

“I had one intention today, to make a deal, and we made a deal. We have a number of areas on which to work together,” Juncker said.

[Image: Twitter]

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78 Comments on “Trump Puts Hold on New Auto Tariffs; Trade Negotiations Commence With Europe...”


  • avatar
    Carroll Prescott

    For years our administrations have just accepted the way things have been done; thankfully now even our allies know we aren’t pushovers – either deal with us on an equal basis or you pay through the nose.

    • 0 avatar
      Arthur Dailey

      Actually for decades the administration of the USA used its economic clout as part of its military strategy to create an American hegemony over much of the world. I am sure that you are aware of the phrase ‘military-industrial complex’.

      With the demise of the Soviet Union, there was no single military opponent large enough for this strategy to remain valid. And many nations no longer felt the need for American military ‘protection’.

      This policy (Pax Americana) did however allow American corporations to dominate a great many industries. Until globalization of capital and economic concentration allowed these American corporations to become multinationals, often based in tax havens, and no longer under American control.

      However a great deal of the wealth in America circa 1946 to 1991 was due to this ‘economic imperialism’.

      • 0 avatar
        Art Vandelay

        “And many nations no longer felt the need for American military ‘protection’.”

        Interesting…they sure get bent out of shape when we mention leaving NATO.

        • 0 avatar
          Arthur Dailey

          @ Art: Do you recollect CENTO, SEATO, ANZUS, NORAD, Inter-American Treaty of Reciprocal Assistance or a number of other military or political alliances? Many nations, particularly in the developing world either no longer want or have purposely removed American military presences or promises.

          Sorry if I can’t post any responses to any rebuttals (which I am sure some of you won’t mind), but I no longer trust this site’s log-in process.

    • 0 avatar
      Astigmatism

      “Either deal with us on an equal basis or you pay through the nose.”

      Does this mean we’ll be dropping the Chicken Tax and tariffs on Canadian lumber and steel?

      • 0 avatar
        DenverMike

        The European Chicken tax would need to be dropped in accordance.

        • 0 avatar
          ect

          DenverMike, your comment is a complete red herring. The EU tariff on US chicken is half of what it was in 1962, and inflation has further reduced it (in constant dollars) to less than 5% of the 1962 rate.

          In addition, US chicken is allowed into the EU, while EU chicken is barred from the US market.

          • 0 avatar
            ajla

            “The EU tariff on US chicken is half of what it was in 1962, and inflation has further reduced it (in constant dollars) to less than 5% of the 1962 rate.”

            So, you are saying it would be fairly painless for them to drop it then?

          • 0 avatar
            DenverMike

            This isn’t about “chickens” anymore. Europe also has a Chicken tax on pickup and van imports, even though it’s never talked about here, just the US is the Bad Guy.

            Ignorance, biases or both?

            The European Chicken tax targets real and potential import pickups, since EU “domestic” automakers don’t sell pickups of their own. Imports and import pickup brands are the only way to get them legitimately in Europe.

            All the US Chicken tax “targets” (and that’s a stretch) is potential pickup imports from Chinese and Indian automakers, meaning there’s virtually no victims, just a lot of hot air.

          • 0 avatar
            Big Al from Oz

            ajla,
            To correct the fake news from DiM;

            1. Spain: Manufactures the NP300 (new Frontier) in Barcelona. It would be great to have a new Frontier of this Century ….. almost.

            2. Mercedes-Benz X-Class luxury pickup truck is also manufactured in Spain. Another worthy pickup to have in the US.

            3. The Renault Alaskan is also manufactured in Spain. Another nice pickup.

            4. The Volkswagen Amarok is manufactured in Germany.

            5. The Izuzu D-Max is manufactured in Portugal.

            These would make great competitive alternatives to add to the rather limited US pickup lineup.

          • 0 avatar
            DenverMike

            @BAFO – I know exactly what’s going on. Europe is its own “NAFTA” zone for “import pickup brands” to avoid the European Chicken tax like Nissan and Isuzu do, but I guess you missed that part.

            As far as the US having “a rather limited pickup lineup”, what other market has 4 classes of pickups for you to choose?

            Yeah if we only had one “class” of pickups, that would be extremely strangling, if not depressing, and sure more brands might need to be added, but no doubt, most US pickup buyers would stick to the existing core brands.

            And there’s really no evidence French, Chinese or Indian pickup makers would have any intentions of pursuing US sales and their pesky, overbearing Lemon Laws!

          • 0 avatar
            Art Vandelay

            @Big Al, I got my first “hands on” with the new Navarra while traveling in Arizona (a Mexican truck). Honestly, it felt equally cheap. We may very well be be missing out on some good global trucks, but the Nissan isn’t one of them.

          • 0 avatar
            Big Al from Oz

            Art,
            Which Navara did you get?

            There are two versions, one leaf sprung in the rear end the other coils?

            Which engine? The 4 cyl diesel comes with various tunes, right up to a twin turbo unit.

            Which model?

            I’m not a Navara fan, but there seems to be a few at work. I’m hoping Nissan can find a better engine.

          • 0 avatar
            Art Vandelay

            @al, not sure. I wasn’t aware there were multiple ones. It was a basic work truck though so I’d assume the leaf sprung variant. It wasn’t bad and was likely a solid work truck, just wasnt anything special either but I didn’t get to spend a ton of time with it.

    • 0 avatar
      Lockstops

      It’s been worse than that. Past administrations have shafted the people they’re supposed to represent in order to get their own personal kickbacks.

      • 0 avatar
        CaddyDaddy

        Guy from Oz. “Mercedes-Benz X-Class luxury pickup truck is also manufactured in Spain. Another worthy pickup to have in the US.”. Huh. I think this comment shows your bent against anything USA and everything else good. The Nissan made badge engineered MB P/U is about as un premium as you can get, see Metris / Vito van. Both. Garbage.

        Trump is doing the job the states that sent him there to do. Finally standing for the USA instead of selling off its largess to the highest foreign country or global trade corporate Lobbiest.
        Remove all tariffs and lets have true free trade.

        • 0 avatar
          Big Al from Oz

          Caddy,
          The X Class is as similar to the Navara as an Escalade to a Silverado.

          As for Trump. He has little idea on economics and business.

        • 0 avatar
          Big Al from Oz

          Oh, Daddy,
          The EU allows US regulated pickups on its roads and their sale within the EU.

          How many EU pickups are on US roads? None. This is called a non tariff barrier.

        • 0 avatar
          Big Al from Oz

          Caddy,
          The EU imports, Rangers, Colorados and Mitsubishi/Fiat midsizers.

          How many pickup imports from from Asia, EU, Sth America, Thailand, India, China are there on US roads?

          This is called trade.

          • 0 avatar
            DenverMike

            @BAFO – The EU only allows “grey market”, US (regulated) pickups on EU roads.

            That’s good, *unless* you were hoping to get a “warranty”, dealer sales/support/parts/service. Instead you get a mountain of paperwork, fees and taxes.

            That’s what grey market “deals” are all about. You’re paying up to 2X more than the US price. If it’s a Right-hand-drive country, expect to pay 10s of thousands in addition to.

            Yes yes, you’re gonna go off about the lack of a grey market “loophole” in the US. The thing is, we don’t need one. We have almost all viable autos and trucks the world has to offer. Yes the biggest selection and segments of any meaningful market in the world.

            Then think about all the grief, agony, expense and red tape, global “grey market” buyers go through for USA “exclusive” Pony Cars, “Big 3” pickups and SUVs. Some from Toyota, Nissan, etc…

            If that doesn’t spell D E M A N D, I don’t know what does!

            Yep! If say the grey market was available again in the US, who the heck would put themselves through any of that for any of the global trucks you’ve mentioned? Most would be redundant and or of much lesser quality.

            Face it BAFO. Anything we don’t have, we probably wouldn’t buy much of anyway.

    • 0 avatar
      rushn

      You might want to dig into the very non-specific non-agreements that were discussed and find that if there is any winner here so far at all, it’s Juncker/EU. The upfront concession is that automotive tariffs are not even being discussed and whenever they do come around to talking about them, zero tariffs will benefit EU much more than US.

      Not being a pushover doesn’t mean being smart.

    • 0 avatar
      Robbie

      “Men are nearly always willing to believe what they wish”, Caesar said. And those who think that there is anything positive coming from this administration, or that any coherent thinking or sensible strategy underlies its tweets, should really contemplate the quote for a day or two.

      This administration is the total end of America’s position in the world, in the economic and moral sense. The American century was 1916-2016, from entry into World War 1 to Trump’s election.

      • 0 avatar
        Hummer

        Men are nearly always willing to believe what they wish”, Caesar said.

        Wise words indeed.

      • 0 avatar
        Lorenzo

        The American Age (not century) began in 1898 and is continuing, but wasn’t recognized by European leaders (except Churchill and DeGaulle) until 1945. The Roman Century actually lasted from 200 BC to 400 AD, 600 years. Even the British Age lasted from 1700 to 1945, overlapping the American Age.

        We’ve seen challenges from the Kaiser’s Germany, Hitler’s Germany, the Soviet Union, Japan Inc., and now China. None have replaced America as the economic driving force for the world. China looks imposing, but like India, it’s a first world nation of about 300 million embedded in a much larger third world nation.

      • 0 avatar
        Lockstops

        Robbie: oh, so the sky is falling?

    • 0 avatar
      Big Al from Oz

      Carol,
      Very short sighted, your comment. Believe it or not there is little overall difference in the way in which the US and EU use tariff to protect certain industries. Even the total amount of tariffs is similar.

      Where the US wins hands down in import barriers is via the use of non tariff barriers. This needs to be addressed as well.

      TW5 and his goons need to read and understand how the US could be viewed as needing a jolt to become competitive, instead of whining. Try winning instead or whinning.

      https://www.washingtonpost.com/news/fact-checker/wp/2018/03/08/trumps-trade-war-does-the-u-s-have-the-lowest-tariffs-in-the-world/?noredirect=on&utm_term=.128085ab558c

      • 0 avatar
        Art Vandelay

        So, just to be clear, based on yesterday’s comments…Luxo over the top F150 = stupid. Nissan based Mercedes truck = worthy. Got it.

        • 0 avatar
          Big Al from Oz

          Art,
          I like all high end pickups. I actually own a high end pickup, leather and all the crap that goes with it, plus some, ie ARB lift and snorkel for driving around Brisbane city centre.

          • 0 avatar
            Art Vandelay

            @AL, yeah I wasn’t directing that at you so much…just general. My truck is actually closer to the bottom end than top…XLT with cloth seats and a column mounted shifter. I would buy a King Ranch though…love the seats and would have no issue with the purchase price, just was a little more limited at the time.

  • avatar
    Arthur Dailey

    Is it just me or does that picture look like it could be an outtake from Goodfellas or Casino?

  • avatar
    PrincipalDan

    But Donald, we’ll always have the Oval Office… ;-)

    Keep making deals and dragging people to the negotiating table, lets see what it takes to make China come calling.

    FYI even liberally slanted outlets (like Slate.com) have commented that the idea of reforming the WTO (which also came out of these meetings) could be the most significant thing. China has been finding loopholes in the WTO rules left and right and the organization was not designed to be able to deal with the sort of economy China has now.

  • avatar
    srh

    I loathe Trump and much of what he stands for (the destruction of the GOP, for one…)

    But I will give credit where it is due. /If/ and with this President it’s a big if, these talks result in freer trade then huzzah.

    • 0 avatar
      ect

      It will take a while. The US and EU started negotiating a free trade agreement in 2013 (the Transatlantic Trade and Investment Partnership). Negotiations were still going on when Trump was elected, but there has been no further negotiation since then. The original target was to sign an agreement by the end of 2019, but the pause in negotiation will doubtless extend that deadline.

      If and when an agreement is negotiated, it will have to be ratified by Congress, and by all EU members – every single one. In some countries (e.g., Belgium) this includes unanimous agreement by all provinces/states.

      The Trump/Juncker announcement is just political optics, devoid of any real substance.

      But, having agreed not to impose tariffs on EU-made vehicles, it will be more difficult for Trump to justify imposing tariffs on vehicles made in Canada and Mexico.

    • 0 avatar
      TW5

      How do you suppose you get freer trade if not by pointing your cannons at your trading partners and telling them to open their ports?

      Commodore Trump is a student of history. Our previous presidents have been clowns who spent most of their time cowtowing to corrupt lobbyists who synthesized our perpetual trade deficit with the help of foreign governments.

      The sellout of the American people was so extreme, and our electorate was so dumb that Europe actually decided to align with China because they didn’t suppose they should work with people who were destroying themselves.

      • 0 avatar
        JimZ

        “How do you suppose you get freer trade if not by pointing your cannons at your trading partners and telling them to open their ports?”

        First thing is to step back and realize they know damn well your cannons aren’t loaded. Because it’s not 1967 and China holds as much or more trade power than you do.

        • 0 avatar
          28-Cars-Later

          The Chinese are overdue for societal upheaval and See Aye Eye has a track record of color revolutions. Emperor Xi is not going to poke the bear, his vision extends decades beyond now. In the end though, I suspect the Soviets are the ones who will win out in whatever world awaits.

        • 0 avatar
          TW5

          @ JimZ

          Yes, that a very dangerous assumption our trading partners are making, and they will find out in time, if they have not found out already, that our cannons are loaded and still hot from range practice.

          This is not George W Bush’s America. If foreign countries do not open their markets and remove tariffs, we will cut them off from the American market. It will be good fun watching the world turn into Venezuela on the nightly news.

          Or they can stop wasting our time, and we can trade.

          Juenker made the right decision. Whether or not he follows through remains to be seen, but this movement isn’t going anywhere. I would advise him not to antagonize the United States into a contest of mercantile empires.

          • 0 avatar
            Big Al from Oz

            TW5,
            Trump didn’t make a deal as you will find out.

            The deal he made was to sell more soyabeans to fix the fnckup he made with the Chinese.

            No tariffs have been removed or adjusted in the EU on US goods.

            You live in a dream.

  • avatar
    Big Al from Oz

    Trump got nothing, except the sale of a few tons of soybeans.

    The tariff on US whiskey, Levis, Harleys, etc remain.

    US auto manufacturers are still penalised with higher raw material costs and reduced competition and profits with all other US manufacturers.

    Smart fellow this Trump man is. Not.

    • 0 avatar
      xtoyota

      Big Al from Oz:

      The expert has spoken

    • 0 avatar
      mason

      Big Al from Oz,the wizard of Oz, the land of the Mickey’s and Roofies.

      Keep on preachin’ brother Al.

      Here’s a fun fact for tripndikAl.

      Levi’s haven’t been made in Murica since ought4.
      But I’m sure you knew that.

    • 0 avatar
      TW5

      Trump’s only misstep in this business is that he didn’t hammer Europe with the tariffs he promised. Granted, Juenker’s behavior has been far more mature than Trudeau’s, but Europe should have been subjected to some pain to expedite the process of liberalization.

      Americans would have felt the pain, too, so perhaps Trump felt like he shouldn’t drag American citizens through that mess to make fools of Brussels.

      • 0 avatar
        Arthur Dailey

        So many misconceptions.

        Trump’s trade actions are resulting in Mutually Assured Destruction more than benefiting anyone, except China. The US Government is now preparing a $12 Billion care package for farmers to make up for the damages caused by Trump’s ‘trade war’ with Canada. More will follow.

        As for manufacturing/industrial capacity. Statistics demonstrate that the USA produces as much steel as it ever has, but with approximately 20% of the workforce. As much as you might like it, Ludditism does not work and technology is inexorable.

        As for the ‘help wanted’ signs, @JimZ is correct. Generally a skilled trade, requiring college training and an apprenticeship. We in North America are falling way behind in developing people with these types of skills.

        • 0 avatar
          brettucks

          JimZ is correct – and they are skilled jobs. The problem is young people tend to think ‘degree = good job’. We can see that it isnt true. No one wants ‘their’ kid to go to a ‘trade’. As a result we have to hire and apprentice our own work force (where I work) and there is no quick way to ramp up or grow.

          As far as manufacturing goes we have a robust industry making the things for our military that we dont want out sourced – its how Ive made a living for 25 years so far. We dont want to buy military equipment from any possible future opponent. Your statistic of 20% may be right, but that 20% is getting older and retiring and it takes a while to gain the know-how those employees have. I dont see the qualified replacements. These arent all ‘keyboard’ jobs. I believe our submarine process is kept going even when demand is low just to keep the unique skills that industry requires to remain sharp. A college degree isnt required-Intelligence helps but Im not sure a college degree increases intelligence.

          “We in North America are falling way behind in developing people with these types of skills” – you are spot on correct. About the only people that actively develop those skills are the Germans with a pretty good apprenticeship program.

          As far as the trade deficit – well thats why Im reading the replies – I dont know enough to opine about it.

        • 0 avatar
          TW5

          @ Arthur Dailey

          The misconception is not mine, it’s yours. The US is already being destroyed. Death by 1,000 paper cuts as the trade deficit gets a little bigger, and the capital market bubbles grow a bit more inflated each year in perpetuity. How many Great Recessions do we need to have before you understand what’s going on?

          The Chinese will never admit it, but their trade policy will ultimately going to destroy them the same way it has destroyed Japan.

          Mutually assured destruction is already happening, and you’re complacent. You’re Neville Chamberlain bellyaching about Winston Churchill confronting Hitler. This “trade war” is our chance to make parasitic mercantilists clean up their act, and make a contribution to the human race, rather than robbing the United States and/or stealing intellectual property from the developed world.

          • 0 avatar
            Arthur Dailey

            @TW5: Short of recommending the takeover of ownership, you are merely repeating what Marxists have been stating publicly for decades.

            Do you truly believe that Trump and his Republican followers are going to curtail the power of multinational corporations, and investment houses? For without that your economic utopia cannot be accomplished.

            Corporations and their bought and paid for ‘western’ politicians have only been selling the Chinese ‘the rope that they will use to hang them”.

          • 0 avatar
            TW5

            @ Arthur Dailey

            You can cry “Marxist” as many times as you want, but you are merely proclaiming the weakness of your own hand. What makes someone Marxist is not their acknowledgement of competition between various socio-economic groups of people. Marxism is entirely about recommending public ownership of assets and command of markets.

            To stop corporate/mercantilist looting we simply apply reciprocal tariffs. Why do you think Trump is recommending them? Nothing needs to be nationalized. Just tax the incoming goods, and the house of cards will fall apart. Tariffs are not Marxist.

            As the current account deficit closes, the capital account surplus will also disappear. Banking/investment community as a whole will have substantially less power.

            Why do you suppose many investment bankers and C-Suite execs are fighting against freer markets and reciprocal trade? Free markets and reciprocal trade don’t deliver a half-trillion dollar capital account surplus for 20 years. Selling America’s industrial base to foreign governments who promise to buy US Dollars, and then importing foreign goods into the low-tariff United States will definitely boost corporate earnings deliver a perpetual banking windfall for 20 years . . . as long as it doesn’t cause a Great Recession. Anyway, that arrangement is not free trade, as if that needs to be explained.

        • 0 avatar
          Manic

          Otherwise right, but these beans were meant for chinese market which erected tariffs after trump started trade war. Ships were turned away, cargoes of soybeans were sold while in transit.
          Farmers to trump: ‘so now you offering us bloody comp. instead of trade what we’d prefer?”
          If I were European buyer, I’d pay less than word market price for the US soy, it just makes sense biz-wise. They can’t be sold on the biggest market there is so f_ck the seller who has not much choice. Trump didn’t tell anything about prices Europeans will pay for LNG and soybeans…
          Epic win for trump in trade war? Pffff. US actually needs some friends in the word, can’t f_ck everyone. Face saved this time.

      • 0 avatar
        Ce he sin

        Actually, it’s Trump’s nearest approximation to sensible decision making. He’s been persuaded to listen to all those voices telling him that a tariff war would benefit nobody (it’s already cost Ford hundreds of millions).

        The average tariff imposed by the EU is 5.2% if sources are to be believed. The average imposed by the US was 3.5% before the current wave of new tariffs. It’s not a significant difference.

        • 0 avatar
          Big Al from Oz

          Ce he sin,
          Junckers made a dozen card with pictures to explain to Trump what will occur if he continues on the path he’s heading down.

          The Europeans even mentioned his name on the cards multiple times so Trump would maintain interest and try to comprehend economics.

  • avatar
    pdog_phatpat

    Still lmfao at all the TDS sufferers today. Kinda quiet arnt ya? All locked away in your safe spaces sobbing uncontrollably hoping your country will still fail? (giggling)

  • avatar
    vehic1

    pdog_phatpat: With only about 3 months ’til the elections, and Bigly’s polls looking feeble – obviously, his people pressured him to “declare victory” of some questionable, indeterminate sort. This photo op/cave hasn’t clearly done much more for anybody than the supposed “denuclearization” he immediately announced – that we’ll wait forever on. But we’re always very happy, whenever he backs down and caves!

    • 0 avatar
      Hummer

      Lol, keep dreaming, your “blue wave” has fizzled to a blue trickle, if not a drought.

      • 0 avatar
        jkross22

        This obsession with ‘your side sucks, my side rules’ is about the most corrosive thing we’re doing to ourselves. It’s not convincing anyone. It’s not persuading anyone. It’s just making people dig in.

        Please stop.

  • avatar
    Arthur Dailey

    U.S. Senate just passes a bill to reduce tariffs on over 1,600 Chinese manufactured products, including home appliances.

    https://www.theglobeandmail.com/world/article-us-senate-quietly-votes-to-cut-tariffs-on-hundreds-of-chinese-goods/

    Winning??????????

    • 0 avatar
      Sub-600

      TDS

      • 0 avatar
        Arthur Dailey

        @Sub-600: Just what in the heck does that mean? And how does it relate to the bill passed by the Senate?

        Tariffs enacted against American allies, based on ‘national security’. $12 billion on ‘bail-out’ money to American farmers damaged by these tariffs. The POTUS admitting to making up figures/lying about trade numbers. But now tariffs are removed from over 1,600 Chinese products?

        Please explain the logic behind this.

    • 0 avatar
      TW5

      It means there is trade liberalization going on behind the scenes, and unlike Obama who brokered trade deals behind Congress’ back illegally, President Trump is asking Congress to pass legislation. More importantly, we are dealing with China directly, rather than trying to deal with China indirectly via NAFTA.

      The situation is a bit scary because we are passing laws and trusting the Chinese to stop their shenanigans. It’s a precarious position because if Beijing do not stop, Congress will have even more power to continue selling off our economy to keep the donors happy.

      Hopefully we have other forms of leverage.

  • avatar
    Sub-600

    GDP jumps by 4.1%. Donaldus Maximus is getting the job done on all fronts. I don’t see how Americans can find fault with these results. Canadians and Australians are another thing, although I don’t know how U.S. failure would benefit either country. To each his own.

    • 0 avatar
      jkross22

      Because GDP is a part of the story. Here’s another part of the story… the working poor are the ones fueling that GDP growth by borrowing.

      https://www.reuters.com/article/us-usa-economy-consumers-insight/mortgage-groupon-and-card-debt-how-the-bottom-half-bolsters-u-s-economy-idUSKBN1KD0EM

      • 0 avatar
        TwoBelugas

        https://www.npr.org/2015/03/02/390244993/increase-in-subprime-car-loans-could-lead-to-trouble

        No one was making light of GDP growth before Jan 20, 2017 when the subprime car loans increase was in full swing.

    • 0 avatar
      Big Al from Oz

      Sub,
      0.5% was an increase of soyabeans going to China. A once off and that alone makes for 3.6% in real terms.

      The tax fix is another once off.

      The much smaller first 2 quarters has been sapped.

      2.5% in the next quarter. This is telling because the impact of the Trump Tantrum Tariff will start to take effect, with the added burden of more external borrowins by the US government to make up the ever dencreasing tax take.

      Sorry mate. Like business, having a couple of reasonable days a year doesn’t make up for the slow days.

      • 0 avatar
        TW5

        @ BAfO

        You think the soybean business is worth a cool $100B in Q2? Just FYI, in 2017 the US exported an annual total of about $27B in soybeans and soybean products. Total annual US production is less than $50B.

        The Fake News media expects us to believe economic growth was robust because soybean customers demanded 200% of US annual production in a single quarter?

        Embarrassing.

        • 0 avatar
          Big Al from Oz

          https://www.businessinsider.com.au/trump-trade-tariffs-eu-colorful-cards-2018-7

          Incredible the POTUS requires simplistic cards with one or two words and pictures to understand economics! Wow.

          I wonder how he goes about learning geopolitics?

          I hear Trump has Dr Seuss read every night to him as this is the world he lives in. I hear Trump’s favourite book is “One Fish, Two Fish, Red Fish, Blue Fish”.

        • 0 avatar
          Big Al from Oz

          TW5,
          I’ll explain it to you as subjects that has Trump perplexed, like you have with economics;

          1. Trump imposes anti competitive tariffs.

          2. These tariffs are aimed around at friends and foes.

          3. Prior to the taxes taking effect, items are exported.

          4. This artificially inflated (distorted) the quarterly figrues.

          5. Trump dealt tax cuts. These have taken effect during the quarter.

          6. This has a once off impact on results, unless more tax cuts are delivered.

          7. The quarters over the winter months were slow due to climatic events (weather).

          8. So, personal spending went up, primarily by the poorer borrowing money.

          So, now what will occur is;

          1. Less external (exports, hence the deal struck with the EU concerning Soyabeans, Trump was desperate) trade due to tariffs.

          2. Less spending internally due to increased costs of goods due to tariffs on imports and metals used for manufacturing in the US and less exports due to tariffs on US goods.

          3. No more boost due to tax cuts, as they have been dealt, with increased government borrowings to offset tax cuts deliver increasing balance of payments (the EU and Chinese have nothing to do with this one).

          4. Personal spending will not rise and could even drop.

          So, now you have the next couple of quarters. Let’s see how Trump sells his fnck up.

          • 0 avatar
            TW5

            @ BAfO

            .5% of GDP is $100B. Let’s be charitable and suppose the BEA forgot how to do it’s job and $100B is just an extra $25B in soybean contracts Q2. That is twice the US normal rate of export, and it’s more than America’s total annual soybean production.

            Do I need to make you some flash cards so you stop falling for fake news or do you understand it this time? Whatever soybean contract he negotiated is merely a tiny fraction of Q2 GDP, and even if it was .5% annualized, the economy still grew at over 3.5%

            The soybean argument was created by the media to provide cover for intellectual infants who despise the president and the path we are taking to freer trade.


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