While I have been preoccupied with the seditious scandal being exposed with facts from DNI Tulsi Gabbard, the wheels of negotiation have continued to churn. The clock has been ticking down to deadlines set by PDJT. Word has been leaking out that China and the EU are working hard to come to a deal before the deadlines expire.
On Wednesday the White House announced that Japan has come to a trade agreement with America.
Let’s be reminded that Japan essentially did not want to face a 25% tariff on automobiles exported to the USA. At the same time, they did not want to permit full USA access to several sectors of their market. The solution that the Commerce Department has come up with is quite remarkable.
Commerce Secretary Howard Lutnick:
What Lutnick is saying is that Japan has agreed to bankroll projects in the US that are of national security interest. Those projects will be determined by PDJT. The amount is $550 billion. In return for doing this, Japan gets a 15% tariff on automobiles. Apparently, this is a line that was determined by their auto industry experts that Japan could still make autos in Japan and be competitive in the US. Japan also gets a 10% return on the profit of the businesses they finance in the U.S. Japan is essentially purchasing a lower tariff rate.
Lutnick gave an example of how this might work:
President Trump wants generic drug manufacturing in the USA. Keep in mind that today most drug manufacturing in done in India. U.S. company ‘Main Street Drugs’ agrees to build a $100 billion manufacturing plant. Japan finances the building and company creation. Main Street Drugs owns and operates the business, keeps 90% of the profits, Japan gets 10%.
Japan has also agreed to open their markets as well. This includes cars and truck as well as rice and other agricultural products.
This is a huge win for America. Hundreds of thousands of Jobs will be the result. We are six months into this administration and every day still feels like Christmas.
As many people may know PDJT traveled to Scotland this past week. On Sunday, PDJT and Ursula von der Leyen, President of the EU Commission, announced a trade deal. It is similar to the Japan deal without the banking aspect.
The EU will face (and accept) a 15% tariff rate for most exports to the USA including autos even with some zero-for-zero tariff sectors outlined. The primary motivating factor for the EU was to avoid the 35% tariff rate scheduled for August 1st and provide the EU corporations with certainty in their tariff rate as applied by the USA (15%).
I wonder what those elites think now about TACO (Trump Always Chickens Out). This is a bigger win than the Japan deal. Essentially this ends the Marshall Plan. While the aid portion of the Marshall Plan was ended many decades ago, the tariff structure remained that provided privileged access to US markets without allowing reciprocal access to European markets.
That is now gone. Trump has said from the very beginning of his run for President in 2015 that he believes in the American worker. Trump believes that Americans can compete with anyone around the world if the playing field is level. This is what he is accomplishing, that is, he is leveling the playing field.
China is next!