U.S. – Japanese trade agreement

Free trade of goods and services produced without government subsidies or restrictions would maximize the incomes of all involved. To promote this result, the World Trade Organization has led the effort to reduce or eliminate tariff and other trade restrictions and has authorized the use of tariffs carefully targeted to nullify the distorting effect of government subsidies or other interferences in the competitive market production of goods and services.

This is not how President Trump has used or threatened in his usual bully style to use tariffs. For Trump, tariffs are not established to improve a level playing field for world trade, and not even always to protect inefficient American manufacturers such as the 50% tariff on imported Steel. An outrageous example was his threat to impose a 50% tariff on all Brazilian imports, effective August 1, 2025, if Brazil went forward with the prosecution of his ally, former President Jair Bolsonaro, who is charged with attempting to stage a coup d’état to overturn the results of the 2022 presidential election in Brazil. Incidentally, the U.S. currently has a trade surplus with Brazil. Go figure.

On July 23, “President Donald J. Trump announced a landmark economic agreement with Japan…. [In exchange for a reduction of US tariffs on all Japanese imports from 25% to 15%, it] will invest $550 billion directed by the United States to rebuild and expand core American industries…. The United States will retain 90% of the profits from this investment…. In addition to raising billions in revenue, this new tariff framework, combined with expanded U.S. exports and investment-driven production, will help narrow the trade deficit with Japan and restore greater balance to the overall U.S. trade position.” “Whitehouse fact-sheets/2025/07/”  

As an aside, Trump has also threated to punish any country that stops using U.S. dollars as its reserve and trade vehicle currency. Somehow, he fails to understand that for a country to acquire these dollars (and for Japan to acquire the $550 billion it is to invest in the US) they must have a trade surplus (US trade deficit). Oh well.

“Japanese officials said there was no written agreement with Washington — and no legally binding one would be drawn up — after Trump administration officials claimed Tokyo would back investments in the US from which American taxpayers would reap nine-tenths of the profits.”  https://www.ft.com/content/c1183b13-9135-41f6-9206-7b52af66f0a5

In addition to the fact that Japanese officials are disputing that they have agreed to such a deal, I hope that you are surprised that the American government is proposing to create new state owned companies. The world’s experience with state own companies has not been good. Our private enterprise dominated economy has served us (our standard of living) very well.

If this all seems rather confusing, welcome to Trump land.

Trump

President Reagan pointed to our beacon on the hill as the foundation of our relationship and leadership with the rest of the world. Soon to be President Trump’s approach is to threaten and bully the rest of the world.

US President-elect Donald Trump’s trade policy challenges the post-war global trading system. By rejecting the World Trade Organization’s principles of non-discrimination and reciprocity, Trump proposes a power-based approach that would fundamentally alter international economic relations, risking the predictability and fairness that have underpinned global trade for seven decades.”  “How Trump threatens the world trading system”

But he hasn’t stopped there.  Though promising to end our “forever wars” and restraint in our international relations, Trump is coming on as the most aggressive President in memory:

“Many people have been understandably astonished by Donald Trump’s recently proclaimed desires to “take back” the Panama Canal “in full, quickly and without question” and to take over the self-governing Danish territory of Greenland.

“While Trump has written that “For purposes of National Security and Freedom around the world, the United States feels that the ownership and control of Greenland is an absolute necessity,” he would at least appear to be willing to pay Denmark for Greenland, as the U.S. paid Denmark for the Danish West Indies, renamed the U.S. Virgin Islands, in 1917.” “A thought on the Panama Canal and Greenland”

A bully, who forces rules on others that he disregards himself, will not serve America’s nor the worlds interests. We all want America to be safe, prosperous, and free. Thus, we must hope for and where possible promote a successful term for this and any other President. An important role can be, and hopefully will be played by the Republicans in Congress, starting with careful vetting of Trumps cabinet nominations. “Trump-bully-world-America-foreign-policy”

America’s Trump style Foreign Policy

The world benefits from rules of interaction that provide peace and cooperation. Rather than building more weapons of war, we could build more temples of beauty. Championing rules most countries respect and aspire to and being the largest (or perhaps second largest) economy in the world, the United States has naturally led such an international order. Retaining that role would be jeopardized if the U.S. did not diplomatically fashion such rules that were embraced and respected by most other countries and if the U.S. did not itself abide by the rules it had championed.

America’s leadership role is being jeopardized by our hypocrisy, such as condemning Russia’s invasion of Ukraine while given a blank check and American weapons for Israel’s invasion of Gaza and Lebanon and ignoring its abuse of its occupied territories in the West Bank of Palestine. America’s embrace of the International Criminal Court’s (ICC’s) arrest warrant for Vladimir Putin for Russia’s invasion of Ukraine and America’s condemnation of the ICC’s arrest warrant for Israel’s PM Benjamin Netanyahu’s and its former Defense Minister Yoav Gallant is the very definition of hypocrisy.  

President elect Donald Trump’s style of negotiating international agreements reflects more the behavior of a bully than a diplomat. Last Monday Trump threatened to levy a 25% percent tariff on all imports from Mexica and Canada, despite the large economic harm to the US as well as Mexica and Canada and despite the laws and agreements it would violate, if they did not stop the illegal drugs and aliens entering the US across their borders. WC: “tariffs”

“Trump’s threat spurred outrage across the northern and southern U.S. borders, prompting backlash and warnings of retaliatory tariffs from both Mexico and Canada.”  The Hill: “Takeaways from trumps new tariff threat”

“Donald Trump’s angry threat to impose 25 percent tariffs on all U.S. imports from Mexico… is widely being depicted as a bluff….

“But amid all this parsing of Trump’s intentions, a crucial fact about his new move is getting lost: At the center of it is a lie. This lie is hiding in plain sight: It’s the underlying suggestion that Mexico is not doing anything to stop migrants from coming and that Trump’s threat of tariffs is needed to change that….

“All this is laid bare by the sharp response to Trump’s threat that new Mexican President Claudia Sheinbaum issued Tuesday. Her statement is getting attention for its barbed claim that American guns trafficked to Mexico are fueling crime and violence there among gangs supplying U.S. markets with drugs. ‘Tragically, it is in our country that lives are lost to the violence resulting from meeting the drug demand in yours,’ Sheinbaum noted acidly, suggesting that the two countries’ interrelated national challenges underscore the need for cross-border cooperation rather than Trumpian confrontation.”

She further noted that: “You may not be aware that Mexico has developed a comprehensive policy to assist migrants from different parts of the world who cross our territory en route to the southern border of the United States. As a result, and according to data from your country’s Customs and Border Protection (CBP), encounters at the Mexico-United States border have decreased by 75% between December 2023 and November 2024….

“What this polite (and euphemistic) language says is that Mexico is already acting extensively to thwart migrants who travel through that country—originating south of Mexico—so they don’t reach our own southern border. As Sheinbaum notes, this is partly why border apprehensions in the United States have dropped sharply of late.” New Republic: “Mexico’s Sheinbaum responds to Trump tariffs”

So, what did our bully in chief do next?  “President-elect Donald Trump has said he had a “wonderful” conversation with Mexico’s President Claudia Sheinbaum, in an apparent easing of the tensions raised this week over trade tariffs….  After Wednesday’s phone call, both leaders described the conversation in positive terms. Trump said on Truth Social, his social media platform, that it was a ‘very productive conversation’ and thanked Mexico for its promised efforts.”

Perpetuating his original lie, “Trump indicated that Sheinbaum would stop migration through Mexico, ‘effectively closing the southern border’.

“Sheinbaum said she had explained her country’s efforts to deal with migrants and that her position would ‘not be to close borders but to build bridges’”.  https://on.ft.com/49czcol

Trump may or may not be a good negotiator (6 of his businesses have filled for bankruptcy) but his approach is that of a bully. Given America’s dominant status in the world, bullying rather than leading and negotiating in the search for mutually beneficial compromises will hasten American decline from leadership.

Is Huawei a Security Risk?

This question is quite beyond my technical competence to answer.  Even the experts disagree amongst themselves.  President Trump thinks it is too risky to use Huawei equipment and insists that Britain and our other allies not use Huawei equipment for building out their 5G telephone infrastructures. British Prime Minister Boris Johnson thinks its OK (plus it is available and cheaper than its potential future competitors) for many but not all uses.  President Trump, who likes to think he is protecting American jobs even though our economy is fully employed, was so angry at Johnson’s unwillingness to bow to his demands that he hung up on Johnson in their most recent phone conversation.  Johnson promptly cancelled his planned trip to the White House. Ukraine President, Volodymyr Zelensky, must be shaking his head in disbelief.

Trump has reason to be suspicious of foreign produced equipment following the recent disclosure that a CIA owned Swiss company, Crypto AG, sold encryption devises to 120 countries that enabled the U.S. and Germany to “easily break the codes that countries used to send encrypted messages.”  This went on for over 40 years allowing us to spy on our friends and foes alike. “National-security/cia-crypto-encryption-machines-espionage”

But these days security is much more sophisticated and wouldn’t allow such hardware to slip through undetected. On the other hand, the spying technology is more sophisticated too. Britain and other European countries are avoiding Huawei equipment for sensitive applications and using it for the rest. My point is not to join the debate over whether and where to use Huawei equipment but rather to argue that the more promising approach to convincing our friends of potential dangers (the more Adult approach, if I may) is to present our evidence and endeavor to convince them of our views. Trump’s approach, as in so many other areas, is to threaten and bully. “The-basis-of-American-world-leadership”

It is not easy to determine when trade restrictions reflect genuine security concerns and when they are just another manifestation of Trump’s protectionist, central planning direction of our resources.  He has imposed and threatened to impose tariffs with abandon, inflicting harm on our own economy as well as the tariffs’ targets. “Trumps-recent-trade-moves-show-adversarial-approach-has-only-just-begun”  “The United States has also threatened duties of up to 100% on French goods, from champagne to handbags, because of a digital services tax that Washington says harms U.S. tech companies.”  “Trump-threatens-big-tariffs-on-car-imports-from-EU”  This use of tariffs has nothing to do with trade and violates WTO rules, which Trump seems to pay little attention to in any event.

While this type of bully approach might work sometimes, it is unsustainable in the long run.  Needless to say, world confidence in the U.S. to do the right thing has plummeted. While for now other countries bow to and follow orders from the U.S., not out of respect but out of fear of retaliation, they follow a strategic waiting game. They know that Trump will not always be in power. And after he is gone, the U.S. will no longer have allies but adversaries ready to bare their claws for revenge.  https://www”9-charts-on-how-the-world-sees-Trump”

 

 

 

American Exceptionalism—where has it gone?

Americans are among the most generous people in the world.  World Giving Index – published by the Charities Aid foundation – averages the percent of the population giving money to charities, the percent who have volunteered time for an organization in the past month, and the percent who have helped a stranger in the past month. Americans are sixth, tied with Switzerland with a score of 55%. Australia and New Zealand are first and second with 57% followed by Ireland and Canada with 56%. Germany is 19th with 44% and France is 93rd with a score of 27%.

I have always been proud that visitors to the United States have generally found Americans to be friendly, helpful, and good-hearted. I realize that this is a bit hard to imagine these days with the negativism thrown from the right and the left at each other, but we still manage the occasional smile in the grocery store as we wait at the checkout line. However, views of America abroad have been declining for some years and have plummeted this year. http://www.pewglobal.org/2017/06/26/u-s-image-suffers-as-publics-around-world-question-trumps-leadership/

The reasons for this decline that leap out to me reflect the propensity of our government to throw its weight around. We have been at war almost continuously since 9/11 (Afghanistan, Iraq, Somalia, Syria, Libya, Yemen, Nigeria, and who knows where else). The U.S. has 662 overseas bases in 38 foreign countries and military personnel in 130 countries. Most American soldiers are fine young men but no one likes foreign soldiers on their streets for very long, even went they are well behaved most of the time.

I was discussing with a Pakistani friend the “special” qualities of the American government and American people that make us exceptional https://works.bepress.com/warren_coats/35/. He suggested that a growing number of people around the world see the United States as exceptional in the sense that it doesn’t think it needs to follow the rules it sets out for everyone else. We are seen as bullies. Ouch.

The most recent and embarrassing example of this was President Trump’s announcement that the United States recognized Jerusalem as the capital of Israel and would move the U.S. Embassy there. As background, on May 14, 1948 the British agreed when Israel declared its independence from the British mandate that ruled Palestine. The State of Israel was immediately recognized by the United States. After several rejections by the UN Security Council, Israel’s UN membership application was accepted by the General Assembly on May 11, 1949 in Resolution 273, which, among other things, defined the new country’s boundaries. Between June 5 to 10, 1967 Israel attacked and captured surrounding territories in Egypt, Jordan and Syria in what became known as the Six-Day War. Except the Gaza Strip and the West Bank most of the captured territory was returned as part of a peace agreement. Israel ended its occupation of the Gaza Strip in August 2005.

The termination of Israel’s “temporary” occupation of the West Bank, including East Jerusalem remains the subject of the Israeli-Palestinian peace negotiations. “Under the 1947 UN Partition Plan to divide historical Palestine between Jewish and Arab states, Jerusalem was granted special status and was meant to be placed under international sovereignty and control. The special status was based on Jerusalem’s religious importance to the three Abrahamic religions.”  “Jerusalem-capital-Israel”

In general, the international community rejects the use of brute force to change borders. Russia’s annexation of Crimea into Russia (though it was previously part of Russia before Khrushchev gave it to Ukraine in 1954) violated this understanding.

President Trump’s announcement about the status of Jerusalem violates standing U.S. and international policy. It was almost universally condemned. The US vetoed a Security Council condemnation of Trump’s action but the General Assembly overwhelmingly (128 to 9, with 35 abstentions) passed a resolution declaring that, “any decisions and actions which purport to have altered the character, status or demographic composition of the Holy City of Jerusalem have no legal effect, are null and void and must be rescinded.” White-House-vows-to-stand-firm-on-trumps-recognition-of-jerusalem-as-israels-capital/2017/12/23/

The General Assembly vote used a rarely exorcised power as explained by Paul Pillar. “Among the principal takeaways from the General Assembly’s action is that an international sense of justice and fairness matters.  Many states reject the notion that might makes right, which is how the Israeli government has treated its relations with the Palestinians, and how the Trump administration approached its lobbying on this resolution.” “Uniting-against-trumps-policies-for-peace”

When the UN voted Thursday (Dec 22) to condemn this action “Only seven countries—Guatemala, Honduras, Togo, Nauru, Palau, Micronesia and the Marshall Islands—were willing to stand with Uncle Sam and Israel and vote against the resolution.” “Next-year-in-Jerusalem”

Aside from keeping the favor Israeli Prime Minister “Bibi” Netanyahu and some wealthy American Jewish donors, there is no upside to this step to be found. The peace talks, such as they were, have been damaged. Even the “Permanent Observer Mission of the Holy See to the United Nations called for maintaining of the status quo of Jerusalem.” In its letter to the President of the General Assembly it stated that: “The unique identity of Jerusalem, which is of universal interest, consists in its particular nature as a Holy City, most sacred to the three monotheistic religions and a symbol for millions of believers worldwide who consider it their “spiritual capital”. Its significance goes beyond the question of borders and this reality should be considered a priority in every negotiation for a political solution.” “Holy-See-supports-Jerusalem’s-historical-status-quo”

Israelis themselves are deeply divided on this issue. The continued and unresolved occupation of the West Bank by Israel has and continues to provoke terrible behavior by both sides. Uri Avnery, an Israeli freedom fighter in his youth, decries acts by his country against occupied Palestinians in passionate terms (email me if you are interested in his email) as does Phillip Weiss: Ending-crisis-Zionism/

But American bullying did not stop there. Nikki Haley, U.S. Ambassador to the UN, delivered a disgusting and threat-filled speech condemning the U.S. rebuke. “The crude tactics included Nikki Haley’s rhetoric about ‘taking names’ and Donald Trump’s bombast about cutting off U.S. aid.  Among the Arab states that supported the resolution were the two states—Egypt and Jordan—that receive more U.S. aid than anyone other than Israel.  The very crudeness of the tactics, and the offense taken to bullying, probably made the tactics counterproductive.” (see Pillar article above).

Good hearted and freedom loving Americans are increasingly represented by governments that push our views and interests on the rest of the world. The rest of the world’s resistance is building. This does not serve our economic or security interests. How did the “essential country”—the “exceptional country”—become a big bully? In recent weeks we have also been asking ourselves how prominent leaders in the media, industry, and Congress have become sexual bullies. It seems that power corrupts. Eternal vigilance is still needed.