Donald Trump is lashing out at Mexico but his real fight is at home

[nitpicker]

https://www.theguardian.com/business/2019/jun/02/donald-trump-lashing-out-mexico-real-fight-home-democrats

Donald Trump is lashing out at Mexico but his real fight is at home

Democrats are turning a president enraged at the blocking of his border wall into an unhinged beast
Phillip Inman

Sun 2 Jun 2019 13.49 BST Last modified on Sun 2 Jun 2019 22.44 BST

Donald Trump’s threats of higher import tariffs against Mexican goods can be better understood not as an escalation of his trade war with the rest of the world, but as the act of a desperate man, prepared to upset most US business leaders to achieve his aim of building a border wall with the country’s southern neighbour.

His anger, which he will bring with him on a state visit to London on Monday, is not so much with Andrés Manuel López Obrador’s administration in Mexico City as with Congress, which has blocked the border wall, or at least restricted funding to such an extent that its completion is unlikely before the next presidential race gets under way.

Like a frustrated bull, taunted by his new Democratic masters in the House of Representatives, he is going beyond the aggressive tactics honed on his reality TV show, the Apprentice, which he hosted in its first 14 seasons. Trump is now fighting back with a carefully arranged display of unhinged belligerence that appears to tell the House Democrats he is prepared to wreck his own mini economic boom to secure victory.
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The Mexican president is probably going to need to deliver some concessions to persuade Trump to back off. He is in a difficult position when trade with the US is the lifeblood of the Mexican economy. So there will, no doubt, be some proposals in the next few days for tighter migration rules. López Obrador said as much in a speech delivered a day later in the eastern city of Veracruz after he had calmed down.

Yet it’s difficult to see what he can do when Trump’s real battle is with Nancy Pelosi in the house. She is playing a game with Trump much like a toreador toys with his prey, frustrating him with eloquently argued objections to each of his initiatives, rather than going for the kill.

Pelosi is under pressure from her left flank to move more forcefully against Trump and, in particular, to begin impeachment proceedings. Alexandria Ocasio-Cortez is among many leftists who want to move more quickly against the president to drum him out office without further delay.

That’s not Pelosi’s way. With an eye on next year’s race, the Democratic leadership has decided the best tactic should be to provoke Trump and turn him into a frothing wounded beast unable to see through the red mist, kicking against his friends and enemies alike as he tries to stave off defeat.
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[OnDoutside]

1. Isn't the truth a little more obvious ? He stirs the shit with

Mexico to get Mueller out of the headlines ? He's done this many times before.

[JustAnotherGen]

3. Yep

I know for a fact that Robert Mueller gave an 8 minute televised speech last week that reiterated folks need to read his report, the President was not cleared/exonerated of anything, and the AG is liar and Trump heel licker.

[nitpicker]

2. More from Business Insider

https://www.businessinsider.com/trump-trade-policy-mexico-tariffs-worsening-trade-war-hurting-economy-2019-5

Trump's latest trade-war grenade has the global economy heading toward a scenario where no one wins

Joe Ciolli

May 31, 2019, 1:38 PM


Donald Trump has done it again. With his latest decree that the US will impose tariffs of 5% on Mexican imports starting June 10, the president has shifted the sights of his ever-escalating global trade war.

Per usual, Trump delivered the news in the form of a tweet, saying tariffs would be in place "until such time as illegal migrants coming through Mexico, and into our Country, STOP." Trump said he'd boost the initial 5% tariff all the way up to 25% — in five-point increments — if people don't stop flowing over the border.

This decision may ultimately boost the anti-immigration platform that will be crucial for Trump's 2020 reelection chances, but it's threatening to destabilize some of the world's biggest economies. This is especially true since Trump is already pushing a major trade conflict with China.

In the US, JPMorgan estimates that new tariffs will reduce third-quarter gross domestic product by a quarter-point, from 1.75 to 1.5%. The firm warns that a much bigger downward revision may be necessary if a corporate spending slowdown impacts hiring, which could then hurt consumer spending.
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There's also the matter of US companies that operate heavily in Mexico, most notably automakers. They're directly in the line of fire, and a squeeze will be felt on both sides of the border — by both US consumers and the firms with extensive Mexican supply chains.
"The integrated supply chain between the US and Mexico sees manufacturing components, particularly for autos, cross and re-cross the border numerous times," McIntyre at Brandywine Global said. "On average, the price of a new car might increase by $1,500 or more, which could trigger a drop-off in US auto sales."

The Mexico tariffs being floated would be in addition to the China tariffs that have already been enacted. Trump has been engaged with his Chinese counterparts for well over a year at this point, with tensions reignited in recent weeks.

And the trade war's impact so far hasn't been pretty. It's gotten so bad that corporations have started warning investors about the potential downside they face in the event of a prolonged conflict.
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