WASHINGTON — President Trump’s tariffs were initially seen as a cudgel to force other countries to drop their trade barriers. But they increasingly look like a more permanent tool to shelter American industry, block imports and banish an undesirable trade deficit.
More than two years into the Trump administration, the United States has emerged as a nation with the highest tariff rate among developed countries, outranking Canada, Germany and France, as well as China, Russia and Turkey. And with further trade confrontations brewing, the rate may only increase from here.
On Tuesday, the president continued to praise his trade war with China, saying that the 25 percent tariffs he imposed on $250 billion worth of Chinese goods would benefit the United States, and that he was looking “very strongly” at imposing additional levies on nearly every Chinese import.
“I think it’s going to turn out extremely well. We’re in a very strong position,” Mr. Trump said in remarks from the White House lawn. “Our economy is fantastic; theirs is not so good. We’ve gone up trillions and trillions of dollars since the election; they’ve gone way down since my election.”
He called the trade dispute “a little squabble” and suggested he was in no rush to end his fight, though he held out the possibility an agreement could be reached, saying: “They want to make a deal. It could absolutely happen.” Stock markets rebounded on Tuesday, after plunging on Monday as China and the United States resumed their tariff war.
Additional tariffs could be on the way. Mr. Trump faces a Friday deadline to determine whether the United States will proceed with his threat to impose global auto tariffs, a move that has been criticized by car companies and foreign policymakers. And despite complaints by Republican lawmakers and American companies, Mr. Trump’s global metal tariffs remain in place on Canada, Mexico, Europe and other allies.
The trade barriers are putting the United States, previously a steadfast advocate of global free trade, in an unfamiliar position. The country now has the highest overall trade-weighted tariff rate at 4.2 percent, higher than any of the Group of 7 industrialized nations, according to Torsten Slok, the chief economist of Deutsche Bank Securities. That is now more than twice as high as the rate for Canada, Britain, Italy, Germany and France, and higher than most emerging markets, including Russia, Turkey and even China, Mr. Slok said.
The shift is having consequences for an American economy that is dependent on global trade, including multinational companies like Boeing, General Motors, Apple, Caterpillar and other businesses that source components from abroad and want access to growing markets overseas.
While trade accounts for a smaller percentage of the American economy than in most other countries — just 27 percent in 2017, compared with 38 percent for China and 87 percent for Germany, according to World Bank data — it is still a critical driver of jobs and economic growth.
Mr. Trump and his economic advisers say the administration’s trade policy is aiding the American economy, companies and consumers. And despite the tough approach, the administration continues to insist its goal is to strike trade agreements that give American businesses better trade terms overseas.
At a briefing last week, Steven Mnuchin, the Treasury secretary, praised the president’s trade policies for helping economic growth thus far and said the administration supports “free and fair reciprocal trade.”
But if the goal really is freer trade, the administration has never been further from achieving that goal than it is today, said Chad Bown, a senior fellow at the Peterson Institute for International Economics.
“They’re heading in the opposite direction,” Mr. Bown said.
Beyond an update to the United States agreement with South Korea, no other free trade deals have been finalized. Mr. Trump’s revisions to the North American Free Trade Agreement with Canada and Mexico still await passage in Congress, while trade talks with the European Union and Japan have been troubled from the start, with governments squabbling over the scope of the agreement.
Mr. Trump came into office fiercely critical of the failure of past administrations and global bodies like the World Trade Organization for failing to police China’s unfair trade practices. He withdrew the United States from multilateral efforts like the Trans-Pacific Partnership, a multicountry trade deal negotiated by President Barack Obama, and the Paris climate accord.
That shift has created an opening for other countries to step forward as global leaders, including Europe, Japan and China, despite its position as one of the world’s most controversial economic actors. On Tuesday, China submitted its proposals for overhauling the World Trade Organization, including broadening the privileges of developing countries, a status that China claims for itself.
Advocates of free trade fear that governments in India, China, South Africa and elsewhere might find Mr. Trump’s model of protectionism appealing and erect even higher barriers to foreign companies.
While the United States and China could still strike a trade deal that would roll back many of their tariffs, that likelihood has appeared to diminish in recent weeks.
Progress toward a deal came to a sudden halt this month when China backtracked on certain commitments and Mr. Trump threatened to move ahead with higher tariffs.
“We had a deal that was very close, and then they broke it,” he said on Tuesday.
The two sides continue to disagree over whether the deal’s provisions must be enshrined in China’s laws. But they are also arguing over Mr. Trump’s tariffs, which were intended to prod the Chinese to agree to more favorable trade terms for the United States. China insists those tariffs must come off once a deal is reached, but the Trump administration wants some to remain in place, to ensure China abides by its commitments.
In an interview on Tuesday on CNBC, Senator Marco Rubio, Republican of Florida, supported the administration’s tactics.
“Ideally, you wouldn’t have tariffs,” he said. But the United States already faces “all kinds of impediments” to gaining access to the Chinese marketplace, including tariffs, subsidization of industries and theft of intellectual property.
“We already have a series of hundreds of billions of dollars of Chinese penalties against the United States which are threatening our long-term viability,” Mr. Rubio said.
Canada and Mexico have repeatedly pressed the administration to lift its tariffs on steel and aluminum now that negotiations over the Nafta revision are done. The three countries signed the United States-Mexico-Canada Agreement in November, but the pact awaits passage in all three legislatures.
The Trump administration still views the tariffs as a source of leverage in case it needs to demand final changes to the deal from Canada and Mexico. But Canadian and Mexican officials — as well as many in Congress — say the levies are actually an impediment because all three legislatures will refuse to finalize the deal while they are in place.
A similar standoff could soon unfold with the European Union, which Mr. Trump has accused of being a “brutal trading partner” and being “tougher than China.”
The president, who wants Europe to open its markets to American farmers and companies, has already imposed tariffs on European metals and is threatening to levy a 25 percent tax on imports of European cars and car parts if the bloc does not give the United States better trade terms.
Europe has absorbed Mr. Trump’s steel and aluminum tariffs without too much damage. But car tariffs would strike the most important industry in Germany, which has the Continent’s biggest economy. European officials would regard car tariffs as a breach of a truce they worked out last year with Mr. Trump, and they have said they would refuse to negotiate as long as car tariffs were in place.
Cecilia Malmstrom, the European commissioner for trade, repeated on Monday that the European Union had prepared a list of American products worth $22.5 billion — including ketchup, suitcases and tractors — that would face immediate retaliatory tariffs.
“We’re prepared for the worst,” Ms. Malmstrom said in an interview with the Süddeutsche Zeitung newspaper in Germany.
European officials still hold out hope that Mr. Trump will see them as allies and not geopolitical rivals like the Chinese. And he could ultimately delay the decision and extend the Friday deadline for countries that are in trade talks with the United States.
But the president shows no signs of backing away from his stance that tariffs have helped the United States.
On Tuesday morning, Mr. Trump posted on Twitter that tariffs had rebuilt America’s steel industry and were encouraging companies to leave China, making it “more competitive” for buyers in the United States.
“China buys MUCH less from us than we buy from them, by almost 500 Billion Dollars, so we are in a fantastic position,” Mr. Trump tweeted. “Make your product at home in the USA and there is no Tariff.”
WASHINGTON — In the middle of his crowded dinner in Buenos Aires with President Xi Jinping of China, President Trump leaned across the table, pointed to Robert Lighthizer, the United States trade representative whose skepticism of China runs deep, and declared, “That’s my negotiator!”
He then turned to Peter Navarro, his even more hawkish trade adviser, adding, “And that’s my tough guy!” according to aides with knowledge of the exchange.
Now, with talks between China and the United States set to begin this week in Beijing, Mr. Lighthizer, aided by Mr. Navarro, faces the assignment of a lifetime: redefining the trade relationship between the world’s two largest economies by Mr. Trump’s March 2 deadline to reach an agreement.
And he must do it in a way that tilts the balance of power toward the United States. His approach will have significant ramifications for American companies, workers and consumers whose fortunes, whether Mr. Trump likes it or not, are increasingly tied to China.
First, however, Mr. Lighthizer will need to keep a mercurial president from wavering in the face of queasy financial markets, which have suffered their steepest annual decline since 2008. Despite his declaration that trade wars are “easy to win” and his recent boast that he is a “Tariff Man,” Mr. Trump is increasingly eager to reach a deal that will help calm the markets, which he views as a political electrocardiogram of his presidency.
Mr. Trump has repeatedly told his advisers that Mr. Xi is someone with whom he can cut a big deal, according to people who have spoken with the president. On Saturday, Mr. Trump called Mr. Xi to discuss the status of talks, tweeting afterward that good progress was being made. “Deal is moving along very well,” Mr. Trump said.
The administration has tried to force China to change its ways with stiff tariffs on $250 billion worth of Chinese products, restrictions on Chinese investment in the United States and threats of additional levies on another $267 billion worth of goods. China has responded with its own tit-for-tat tariffs on American goods. But over a steak dinner during the Group of 20 summit meeting in Argentina, Mr. Xi and Mr. Trump agreed to a 90-day truce and to work toward an agreement that Mr. Trump said could lead to “one of the largest deals ever made.”
Mr. Lighthizer — whose top deputy will meet with Chinese officials this week ahead of more high-level talks in February — has played down any differences with Mr. Trump and views his role as ultimately executing the directive of his boss. But the trade representative, who declined to be interviewed, has told friends and associates that he is intent on preventing the president from being talked into accepting “empty promises” like temporary increases in soybean or beef purchases.
Mr. Lighthizer, 71, is pushing for substantive changes, such as forcing China to end its practice of requiring American companies to hand over valuable technology as a condition of doing business there. But after 40 years of dealing with China and watching it dangle promises that do not materialize, Mr. Lighthizer remains deeply skeptical of Beijing and has warned Mr. Trump that the United States may need to exert more pressure through additional tariffs in order to win true concessions.
When Mr. Lighthizer senses that anyone — even Mr. Trump — might be going a little soft on China, he opens a paper-clipped manila folder he totes around and brandishes a single-page, easy-reading chart that lists decades of failed trade negotiations with Beijing, according to administration officials.
“Bob’s attitude toward China is very simple. He wants them to surrender,” said William A. Reinsch, a former federal trade official who met him three decades ago when Mr. Lighthizer was a young aide for former Senator Bob Dole of Kansas. “His negotiating strategy is simple too. He basically gives them a list of things he wants them to do and says, ‘Fix it now.’”
Mr. Trump’s selection of Mr. Lighthizer last month to lead the talks initially spooked markets, which viewed the China skeptic’s appointment as an ominous sign. It also annoyed Chinese officials, who had been talking with the Treasury secretary, Steven Mnuchin, a more moderate voice on trade and the primary point of contact for Liu He, China’s top trade negotiator. Mr. Mnuchin has urged the president to avoid a protracted trade war, even if that entails reaching an interim agreement that leaves some issues unresolved.
Mr. Mnuchin, who attended the G-20 dinner, helped Mr. Trump craft an upbeat assessment declaring the Buenos Aires meeting “highly successful” in the presidential limousine back to the airport, according to a senior administration official.
The disparate views among Mr. Trump’s top trade advisers have prompted sparring — both publicly and behind the scenes.
During an Oval Office meeting with the trade team the fall of 2017, Mr. Lighthizer accused Mr. Mnuchin and Gary D. Cohn, the former National Economic Council director, of bad-mouthing him to free-trade Republican senators.
The argument grew so heated that the White House chief of staff, John F. Kelly, quickly pulled the combatants into the nearby Roosevelt Room and away from the president, where the argument raged on for a few more minutes, according to two witnesses.
Emily Davis, a spokeswoman for the United States trade representative, disputed the account.
Mr. Lighthizer has since worked to increase his own face time with Mr. Trump. He has joked to colleagues that he has more influence with Mr. Trump during winter months because he is able to hitch a ride on Air Force One during the president’s flights down to Mar-a-Lago, which is several miles from Mr. Lighthizer’s own $2.3 million waterfront condo in Palm Beach, Fla.
He used that access to argue to Mr. Trump that the United States has never had more leverage to extract structural reforms on intellectual property, forced transfer of technology from American companies and cybercrime. But while Mr. Trump has jumped at the chance to claim victory in changing China’s ways, experts say that what Mr. Lighthizer is demanding would require significant shifts in how Beijing’s central government and its manufacturing sector coordinate their activities, and that might simply not be possible in the short term.
“Good luck with that,” Mr. Scissors said.
Those who know Mr. Lighthizer say he will try to force concessions through a combination of pressure tactics, like tariffs, and public condemnation. Mr. Lighthizer — who described his own negotiating style as “knowing where the leverage is” during a 1984 interview — typically presents few specific demands during initial talks while publicly bashing efforts by the other side.
He used that approach during recent talks with Canada and Mexico to revise the North American Free Trade Agreement, criticizing foreign counterparts as intransigent and characterizing complaints by American businesses as pure greed.
Mr. Lighthizer’s unsparing view of China comes, in part, from his childhood in Ashtabula, Ohio, an industrial and shipping town on the Great Lakes hit by the offshoring of steel and chemical production. For much of his career, Mr. Lighthizer was a lonely protectionist voice in a Republican Party dominated by free traders, alternating between jobs in government and a lucrative private law career representing large American corporations like United States Steel in trade cases against China.
Mr. Lighthizer found his way into Mr. Trump’s orbit through his work in the steel industry, where he gained prominence by filing lawsuits accusing Japan and China of dumping metals into the United States, in violation of trade laws. In 2011, Mr. Lighthizer caught Mr. Trump’s eye with an opinion piece in The Washington Times, in which he defended Mr. Trump’s approach to China as consistent with conservative ideology and compared the future president to Republican icons like Ronald Reagan.
Taciturn in public and self-deprecating in private, Mr. Lighthizer sees himself as a serious player on the world stage: Two recent guests to Mr. Lighthizer’s Georgetown townhouse were greeted by the stern visage of their host staring down at them from an oil portrait on the wall.
The trade adviser is guarded around Mr. Trump, often waiting until the end of meetings to make his points and quietly nudging the president away from actions he views as counterproductive, current and former officials said. That was the case in mid-2017 when he cautioned the president against withdrawing unilaterally from the World Trade Organization, adding for emphasis, “And I hate the W.T.O. as much as anybody.”
He does not always get his way. In the wake of a new trade agreement with Mexico and Canada this fall, Mr. Lighthizer urged Mr. Trump to consider easing steel and aluminum tariffs on those countries and replacing them with less burdensome quotas. Mr. Trump rejected his plan, according to negotiators from all three countries.
A poker-faced Mr. Lighthizer broke the news to his Mexican and Canadian counterparts by declaring the proposal was inoperative, one of the officials said.
The president also ignored Mr. Lighthizer’s advice in early December when he announced that he intended to begin the six-month process of withdrawing the United States from Nafta in order to pressure House Democrats into passing the new United States-Mexico-Canada Agreement.
That threat undermined months of quiet negotiations between Mr. Lighthizer, labor groups and Democrats like Senator Sherrod Brown of Ohio and Representative Nancy Pelosi of California to try to win their support for the new trade deal. Mr. Trump has yet to follow through on his threat, and Mr. Lighthizer continues trying to work with Democrats to get the new trade deal approved.
“Bob is trying to provide stability and focus in a completely chaotic environment,” Mr. Brown said. “I can’t speak for Bob, but I am certain he is frustrated. How could you not be frustrated as the U.S. trade representative for a president who knows what his gut thinks but hasn’t put much of his brains into trade?”
Rep. Jerrold Nadler (D-N.Y.), the incoming chairman of the House Judiciary Committee, said in an appearance on NBC’ News’s “Meet the Press” that Thursday’s guilty plea by Cohen, Trump’s former personal attorney, raises the question of whether Russia continues to have leverage over Trump.
.. “Does the Kremlin have a hold on him over other things?” Nadler said. “There certainly was leverage during the campaign period and until recently because they knew he was lying, they knew he had major business dealings or that Cohen on his behalf had major business dealings.”
.. Sen. Mark R. Warner (D-Va.) said Sunday that “most Republicans who were about to nominate Donald Trump in the summer of ’16 would probably have thought it was a relevant fact” that Trump was still trying to do business with Russia at the time.
.. “What I find particularly interesting with the revelation of Cohen’s plea is that he’s saying he lied to protect then-candidate Trump’s stories that he had nothing to do with Russia,”
.. “So, the president seemed to already be changing his story a little bit and say, ‘well, it was all legal.’ ”
Avenatti was in the best shape of his life: 185 pounds, 9 percent body fat.
.. he still has the bearing of a light-heavyweight brawler.
.. n 2017, a Russian oligarch named Viktor Vekselberg had deposited around $500,000 into the same bank account Michael Cohen, President Trump’s former fixer, used to pay off Avenatti’s client in October 2016.
.. Avenatti, whose ability to steer a news cycle is rivaled by only the president’s, initially hoped to distribute the file that morning, thus ensuring wall-to-wall coverage for the better part of the day.
.. Avenatti had immediately zeroed in on a potential weakness in his strategy: The document wouldn’t stand up for long without independent corroboration, especially not if he insisted on keeping the source of his information anonymous.
.. The Times published an article revealing that Vekselberg had been interviewed by Mueller, the special counsel
.. “He’s smart that way,” a reporter on the Mueller beat told me. “He needs the television for attention, but he leans on print publications to vet the information he uses on TV.”
.. Avenatti does not employ a public relations specialist, preferring to handle all media scheduling himself
.. he was slumped in the makeup chair at the CNN studios in Columbus Circle, where he seemed to know most of the staff by name.
.. Jeff Zucker, president of CNN, appeared in the doorway, grinning. The men exchanged greetings and retreated to a corner of the greenroom to speak privately.
.. Avenatti shot back. “Right before we went live, The Times issued an article where they verified the accuracy of what we’ve released based on an independent review of other documents. There’s no question this is accurate.”
.. Cooper continued to press his guest, pointing out that the payments the document attributed to Vekselberg had actually come from Columbus Nova, an investment firm whose biggest client is a company controlled by Vekselberg. “At the very least, there may be no nefarious reason here at all that this company would have given $500,000 to Michael Cohen,” Cooper said. “They could’ve been hiring him for any number of consulting work — ”
Avenatti cut him off: “For what? For his legal skill and acumen? I doubt that.”
.. Pat Sajak, the “Wheel of Fortune” host and a notable Republican donor, stopped by the table to pay his respects, as did Andrew Napolitano, the Fox News legal analyst, who grabbed Avenatti by the head with both hands and pulled him into an awkward embrace.
.. Several outlets, including The New York Times, had reported that Avenatti was exploring the possibility of hosting his own cable-news program.
According to Avenatti, since early March he has been interviewed more than 200 times on network and cable TV.
.. Avenatti, Comedy Central’s Jordan Klepper has joked, “is on every single network, every hour of the freakin’ day. He’s got a toothbrush at CNN, a cot at MSNBC and a locker at ‘Riverdale.’
.. He has visited the sets of “The View,” “Real Time With Bill Maher” and “Megyn Kelly Today”
he has made two separate trips to Stephen Colbert’s couch at CBS, most recently to spar with the former Trump communications director Anthony Scaramucci.
.. Two decades ago, a different Los Angeles lawyer, William Ginsburg, appeared on all five Sunday talk shows on a single morning, in an attempt to vindicate his client, Monica Lewinsky, in the court of public opinion. The feat is known today as “the Full Ginsburg.”
.. Avenatti has taken Ginsburg’s underlying approach — let the American people be the jury — and updated it for the social-media era.
He has learned, with practice, to leverage Twitter in much the same manner as the president:
- as a place to goad (“This is the best Mr. Trump can do?”),
- a venue for self-aggrandizement (“This is getting too easy”) and
- a direct conduit to an adoring base of supporters.
.. we also have Avenatti because the left so desperately desires an anti-Trump: A person who can elicit the same dopamine reaction in his supporters that Trump can from his.”
.. Like Trump, Avenatti is all Freudian id, loudmouthed and cocky. “I’m a mercenary,” he acknowledged to me. “That’s what people hire me for, and I don’t apologize for it.”
.. He traffics primarily in a commodity in short supply among left-leaning voters: hope.
.. Nancy Pelosi, recently told The New Yorker that she doesn’t “like to talk about impeachment,” but Avenatti has gleefully predicted Trump will be out of the office before his term ends.
.. Robert Mueller, no matter the outcome of his investigation, is unlikely to ever call Rudolph Giuliani a “pig” or Michael Cohen a “moron”; Avenatti uses both insults so frequently that they have become a kind of refrain.
.. On paper, at least, Avenatti’s campaign against Trump and his personal attorney, Michael Cohen, is limited to three lawsuits.
- The oldest, from March, seeks to void the 2016 nondisclosure agreement prohibiting Daniels from discussing her supposed affair with Trump, on the grounds that Trump failed to sign the document ..
- .. accuses Trump of defamation for calling Daniels “a total con job” on Twitter, after Daniels said she had been threatened by someone who warned her to “leave Trump alone.”
- .. final suit claims that Daniels’s previous attorney, Keith Davidson, conspired with Michael Cohen and President Trump to keep Daniels quiet
.. the results of the raid have not been made public, the evidence is widely believed to contain files pertaining to the Daniels payout, which Cohen has admitted to orchestrating and which Trump had previously denied knowing anything about
.. Avenatti, for his part, claims to already have all the damning evidence he needs
.. Avenatti often describes his media omnipresence as integral to his long game: It rattles Trump’s defenders — as appeared to happen when the president’s lawyer, Rudolph W. Giuliani, contradicted the White House and acknowledged payment to Daniels.
.. helped bring in almost $600,000 for a CrowdJustice account in Daniels’s name, which Avenatti says is his sole source of financing for the case. It has also generated leads for Avenatti, like the Vekselberg data. “None of this happens if we don’t have a high profile,” Avenatti said.
.. Daniels told me. “People forced to play defense tend to get sloppy, they tend to make mistakes. And look, if I didn’t think Michael was doing a good job, I would fire his ass.” But, she added, “every time I watch him work, I think, This is what it must have been like to see the Sistine Chapel being painted. But instead of paint, Michael uses the tears of his enemies.”
.. litigating a case in the press is not without risk. As one of Avenatti’s former colleagues, the lawyer Brian Panish, pointed out, “Michael is good with the media, but the media isn’t always going to do what he wants them to do.”
.. has seen his personal life and past investments raked over. Fox News tracked down his second wife, Lisa Storie, and elicited her opinions on their acrimonious divorce. (Storie recently told me that they were now on “really good terms.”)
.. CNN recently published a quadruple-bylined expose on bankruptcy proceedings against Eagan Avenatti
.. At times, he has seemed genuinely unsettled by the scrutiny
.. after The Daily Caller published a critical piece, he threatened to sue the conservative site for defamation. “If you think I’m kidding, you really don’t know anything about me,” he wrote to the reporter in a Twitter message, which was denounced by other journalists. “This is the last warning.” For many people, it was the first time Avenatti’s hardball tactics had spilled into public view.
.. the Texas trip bolstered his messianic standing among liberals, and invited claims, from detractors, that he is little more than a flagrant opportunist
.. to the people who know him best, the evolution into partisan firebrand is hardly surprising... “Look, Michael has always been a hard-charging guy,”.. And I think what we’re seeing now is that he’s a perfect foil for Trump, because he actually sees the world just like Trump does. He has that same faith in the spotlight,” Kabateck paused. “In a way, he is sort of is Trump.”.. When Avenatti was 10 years old, his father, an executive at Anheuser-Busch, took him to an off-road car race.. Avenatti was captivated. “The speed, the danger — I couldn’t look away,” he told me recently. “In retrospect, it was the feeling I’d get later on, working on a major legal case. You’re nervous, there’s a sense of fear, and also a sense of intense excitement.”.. he was already incredibly driven, incredibly serious. I don’t think he ever relaxed... To avoid going too deep into student-loan debt, Avenatti, who had long thought about going into politics, took a year and a half off from Penn and accepted a full-time job with Rahm Emanuel’s political-consulting firm, the Research Group... the firm’s leadership soon promoted him to opposition researcher... “This was before the days of the internet, so if you wanted to find clerk records or look up business disputes, you would have to go to the candidate’s jurisdiction,” Avenatti says. “I did a lot of flying around, a lot of gumshoeing.”.. he says he participated in 150 campaigns in 42 states.. It was an exceptionally demanding schedule for someone who had not yet finished his senior year in college, and by 1996, Avenatti was burned out on politics... Daniel Petrocelli. “Dan was the trial guru at O’Melveny,” Avenatti told me: He represented the family of Ron Goldman during the civil suit against O.J. Simpson and once went to battle for Disney over merchandising rights to Winnie the Pooh. “He was a street fighter,”.. “But he was exceptional at speaking to juries, and I’d like to think he saw a little bit of him in me.”.. A lot of what I absorbed from Dan involved his preparation,” Avenatti told me. “He was extremely diligent, and he was able to absorb a lot of information in a short period of time.”.. He wasn’t going to stay at O’Melveny forever, no matter how high the pay. “The drafting, the redrafting of motions, the back and forth, he hated it,” Avenatti-Carlin told me. “He wanted to be more than a paper pusher. He wanted to be a change agent.”.. In 2004, he sued the future president and the producer Mark Burnett for stealing the concept of “The Apprentice” from a client... Avenatti was able to prove his client had pitched a pilot called “C.E.O.” to Burnett’s people. Trump and Burnett settled... But such cases are expensive to litigate and can drag on for years, with little — or, in the event of an adverse verdict, nothing — to show for it. Still, the high-risk-high-reward aspect of the work appealed to Avenatti; it was a good fit, he thought, for his personality... he defining case of his young career, suing the accounting giant KPMG for audit malpractice, for failing to notice or report the some $40 million the chief financial officer had embezzled.. Michael was a force of nature. He was like a little computer: He’d sit there processing, synthesizing. Then he’d sit down with the witness, and you’d watch him set them up, listen to their answers, and set them up again. They didn’t know what hit them... “Michael has lived large for as long as I’ve known him,”.. “The thing with living large, though, is that the highs might be high, but the lows are going to be really low. You can crash hard.”.. Avenatti was dealing with a potentially more costly legal matter, this one involving a former litigator at the firm, Jason Frank. In an arbitration case filed in California, Frank claimed that Avenatti had kept pertinent financial forms from him and generally misstated profits in order to avoid paying Frank millions... A judge in Florida issued what’s called an automatic stay on Eagan Avenatti, a temporary form of bankruptcy that would remain in effect until the debt to Tobin was repaid... which meant Frank could not move forward in his effort to recoup the millions he said he was owed.. judge in charge of adjudicating the bankruptcy. Referring to what she described as a “stench of impropriety,” the judge said it was unclear whether “Tobin had some relationship with the firm that would have induced a collusive filing” or whether “Eagan Avenatti just got plain lucky.”.. “At their root, the O’Malley thing and the Frank thing, they were both about Michael not playing nicely with others,”.. “Michael has always been attack, attack, attack. That ability to sit down and calmly settle things behind closed doors, that’s the club missing from his bag. He has no reluctance about letting problems turn into public, very ugly brawls.”.. “The kind of work I do,” Avenatti told me recently, “there’s usually a lot of money on the line, there are jobs on the line. It’s not a world that lends itself to everyone being friendly all the time. We’re certainly not sitting around holding hands, singing ‘Kumbaya.’ ”.. Frank was approved by a bankruptcy judge: Eagan Avenatti was to pay Frank $4.85 million, with $2 million due in May. (That first payment was missed; the parties now dispute the terms of the settlement.).. Around the same time, Avenatti reached out to William Hearon, a lawyer friend, to talk about a new client he was considering representing in a civil suit... Avenatti has taken great pains not to reveal how he was introduced to Stormy Daniels, possibly because he worries the story of their meeting could help fuel persistent suspicions that he is acting on behalf of a Democratic donor.. The Times has reported that Avenatti reached out to major Democratic financial backers, including David Brock, to discuss funding for the lawsuit, but that no money changed hands... “Michael never sought me out,” Daniels told me. “I hate it when people say Avenatti must have persuaded me to do this. I had the same conversation with him I had with other lawyers,” she went on. “Michael was the best choice. He never tried to discredit what I was saying. He believed me. He thought I was speaking the truth.”.. And after Cohen subsequently produced a letter he said was signed by Daniels, denying an affair ever took place, she grew increasingly frustrated... “Part of the reason that we went with a media-heavy strategy,” Avenatti told me, “was because we wanted to reset the narrative around my client. I wanted the American people to see what she’s all about. I wanted them to see her in the way that I had come to know her.”.. Avenatti’s theatrics, and the often-intersecting paths of the Mueller probe and his own legal crusade, have left him vulnerable to the charge that he is merely piggybacking onto an investigation that would move forward with or without his participation. (The Wall Street Journal has reported that Avenatti has “frustrated” the efforts of Mueller’s team to investigate Cohen’s orchestration of the NDA — a charge Avenatti vociferously denies,.. Should Avenatti, for instance, fail in his bid to invalidate the NDA, his client, who described on “60 Minutes” the details of her alleged affair with Trump — down to the precoital spanking and the claim that she could identify his genitals — could be liable for millions in damages... by continuing to appear on television, Avenatti risks annoying jurists on his cases like Kimba Wood, the judge overseeing the federal Cohen probe.. “I either want you to participate or not be in the matter at all,” the judge went on. “I don’t want you to have some existence in a limbo where you’re free to denigrate Mr. Cohen and, I believe, potentially deprive him of a fair trial by tainting a jury pool.”.. “My own personal opinion is he’s getting too much exposure,” says Robert Bennett, President Clinton’s personal lawyer leading up to the 1999 impeachment hearings. “If you want to really win, and not just cause embarrassment to the White House, you should resist the urge to be in the spotlight all the time. You don’t want to overplay your hand.”.. “Here’s the comment: Keith Davidson is a disgrace.”.. I wondered if, given the intense highs of the Daniels case, he could envision himself going back to regular old corporate law in a full-time capacity. Wouldn’t politics be more appealing?.. Using the car’s paddle shifters, Avenatti dropped the car into fifth, and we shot forward down the carpool lane until the surrounding scenery had been reduced to a nauseating blur... “Pull over,” the police cruiser’s loudspeaker crackled.
I sneaked a look at Avenatti. He was smiling. He took the next exit, and drawing to a halt in a strip-mall parking lot, waited for the cop to reach his window. Instead of writing a ticket, the officer gave Avenatti a warning: “Sir, in the future, make sure to stay in your lane.”