How Special Interests Hide the True Costs of Tariffs

Consider how easy it was for Mr. Trump to get a 25 percent tariff on steel imports. His administration simply concocted a fanciful national-security narrative about why the steel industry needed protection from foreign steel imports — this despite the industry’s enjoying a 70 percent share of the United States steel market and despite the Department of Defense finding no national-security harm from global steel imports.

.. For example, for the projected impact of the steel tariffs, numbers produced by the Commerce Department show that they may increase employment in the metals industry by 14,000 jobs. But the report also says that a significantly larger number of jobs will be destroyed, as a result of these tariffs, in industries downstream from metal production.

.. Under the current system, if Commerce Secretary Wilbur Ross decides to protect his friends and business interests in the steel industry, he can ignore the damage that his own data show the tariffs will inflict on some of the 6.5 million workers in America’s steel-consuming industries. His sole lawful obligation is to demonstrate that the economic fortunes of the 140,000 steel employees will be promoted by the tariffs.

.. when I.T.C. commissioners make their determinations in such cases, they’re actually forbidden by statute from considering the impact of these so-called trade remedies on downstream industries — those consumers of goods and services hit by the tariffs.

.. The good news is that there’s an easy fix: Change the statutes so that commissioners are required to consider the effects of trade restrictions on downstream industries and consumers.

.. Today, steel executives have an iron grip on the White House thanks to the deep ties of the president’s advisers to the industry.

  • Mr. Ross made his fortune buying and selling steel companies and was sitting on a steel company’s board until his confirmation as commerce secretary.
  • Robert Lighthizer, a private lawyer who represented the steel industry for years, is now the United States trade representative.
  • The upper levels of both the Office of the United States Trade Representative and the Commerce Department have predictably been populated by other individuals with close ties to Big Steel. And the
  • trade adviser Peter Navarro’s 2012 documentary, “Death by China,” was funded by one of the top beneficiaries of these tariffs — the steel producer Nucor.

This cronyism explains how the steel industry is directly involved in deciding which companies do or don’t receive exemptions from the steel tariffs and why so few exemptions have been granted.

You can tell who Trump is through the company he keeps

what the trial reveals is something very damning, in the ethical if not legal sense: namely, what kind of people Trump surrounds himself with.

There was no secret about Manafort’s record as an influence-peddler on behalf of corrupt dictators and oligarchs when he went to work for Trump. On April 13, 2016, Bloomberg columnist Eli Lake wrote a prescient article headlined: “Trump Just Hired His Next Scandal.” Trump couldn’t have cared less. His whole career, he has surrounded himself with sleazy characters such as the Russian-born mob associate Felix Sater, who served prison time for assault and later pleaded guilty to federal fraud charges, as well as lawyer-cum-fixer Michael Cohen, who is reportedly under investigation for a variety of possible crimes, including tax fraud.

.. These are the kind of people Trump feels comfortable around, because this is the kind of person Trump is. He is, after all, the guy who paid $25 million to settle fraud charges against him from students of Trump University. The guy who arranged for payoffs to a Playboy playmate and a porn star with whom he had affairs. The guy who lies an average of 7.6 times a day.

.. And because everyone knows what kind of person Trump is, he attracts kindred souls. Manafort and Gates are only Exhibits A and B. There is also Exhibit C: Rep. Chris Collins (R-N.Y.), the first member of Congress to endorse Trump, is facing federal charges of conspiracy, wire fraud and false statements as part of an alleged insider-trading scheme. Exhibit D is Commerce Secretary Wilbur Ross, who has been accused by Forbes magazine, hardly an anti-Trump rag, of bilking business associates out of $120 million.

.. In fairness, not all of Trump’s associates are grifters. Some are simply wealthy dilettantes like Trump himself

.. Among the affluent and unqualified appointees Trump has set loose on the world are his son-in-law Jared Kushner and his former lawyer, Jason Greenblatt, who are somehow supposed to solve an Israeli-Palestinian dispute that has frustrated seasoned diplomats for decades. No surprise: Their vaunted peace plan remains MIA.

.. ProPublica has a mind-boggling scoop about another group of dilettantes — a Palm Beach doctor, an entertainment mogul, and a lawyer — whom Trump tasked as an informal board of directors to oversee the Department of Veterans Affairs. None has any experience in the U.S. military or government; their chief qualification was that they are all members of Trump’s golf club, Mar-a-Lago. 

.. Beyond the swindlers and dilettantes, there is a third group of people who have no business working for Trump or any other president: the fanatics. The most prominent of the extremists was Stephen K. Bannon, the notorious “alt-right” leader who was chief executive of Trump’s campaign and a senior White House aide. He may be gone, but others remain. They include Peter Navarro, who may well be the only economist in the world who thinks trade wars are a good thing; Stephen Miller, the nativist who was behind plans to lock immigrant children in cages and bar Muslims from entering the United States, and who is now plotting to reduce legal immigration; and Fred Fleitz, the Islamophobic chief of staff of the National Security Council. They feel at home in the White House because, aside from being a grifter and a dilettante, Trump is also an extremist with a long history of racist, sexist, nativist, protectionist and isolationist utterances

Stephen K. Bannon has won

This is the victory not only of a Trump personality cult, as it has been described, but also of an ideology, one closer to Putinism than Reaganism.

.. Back then, you may recall, some of the “crazies” — such as national security adviser Michael Flynn — had left the White House, and supposed pragmatists had taken charge: H.R. McMaster for national security, Gary Cohn for economics, Jared and Ivanka for — well, for general reasonableness.

.. There was talk of working with Democrats on infrastructure. Trump wanted to help the “dreamers,” those blameless young immigrants brought to this country as children. It seemed that existing international agreements — NATO, the North American Free Trade Agreement, the Paris climate accord — might be preserved, with some face-saving adjustments. Trump was still the politician who had spoken tolerantly on LGBT issues.

..  The White House defines itself and prepares to motivate its voters by the “enemies” it constantly creates, refines and rediscovers, including African American athletes, the press (“Our Country’s biggest enemy,” in a recent Trump tweet), Canadian Prime Minister Justin Trudeau (“very dishonest & weak”), and special counsel Robert S. Mueller III (directing a “Witch Hunt, led by 13 very Angry and Conflicted Democrats”). Also: Sen. Jeff Flake (R-Ariz.), German Chancellor Angela Merkel, Democratic leaders in the Senate and House, former FBI director James B. Comey, his own attorney general, his deputy attorney general . . . The list will never end.

.. But Bannonism is not just a snarling attitude. It encompasses a contempt for democracy and a respect for authoritarianism. When Trump refused to sign a statement of solidarity with the world’s other six leading industrial democracies and then proceeded to slather praise on North Korea’s dictator (“a tough guy . . . a very smart guy”), this was not just a sign of personal pique or favoritism: The U.S. president raised questions in the minds of other leaders about whether the concept of the West itself can survive his presidency.

.. It encompasses an “America First,” for-me-to-win-you-have-to-lose philosophy

.. It encompasses a contempt for immigrants, for outsiders of any kind. Certainly it is possible to support lower levels of immigration without being a racist. But to countenance the deliberate policy of tearing away small children from their parents that we are seeing today on the U.S.- ­Mexico border is consistent only with a worldview that deems Mexicans and Salvadorans somehow less human, less worthy, than white Americans.

..it’s no coincidence that Trump, who boasted about being the first Republican to say LGBTQ in his convention acceptance speech in 2016, has, as The Post’s James Hohmann noted last week, tried to ban transgender people from the military, removed protections for transgender inmates, employees and students, failed to acknowledge Pride Month and disbanded the Presidential Advisory Council on HIV/AIDS. As in Vladimir Putin’s Russia, this revival of bigotry dovetails with an effort to woo the conservative Christian establishment.

.. Finally, Bannonism encompasses contempt for the government itself.

.. his constant disparagement of the Justice Department and the FBI; his at times insultingly unsuitable appointments (such as his personal physician to head the mammoth Department of Veterans Affairs); and his generally cavalier attitude toward staffing. Even today, 17 months into his first term, fewer than half of the 667 key positions tracked by The Post in collaboration with the Partnership for Public Service are filled, and for almost 200 there are no nominees.

.. How has Bannonism prevailed without Bannon? In part, with the help of true believers who remain in the White House, including Stephen Miller (on immigration) and Peter Navarro (on trade).

.. But another answer came from Trump himself, who said after Bannon’s firing: “Steve Bannon has nothing to do with me or my presidency. . . . Steve was a staffer.”

Even discounting for Trump’s normal petulance and self-aggrandizement, there may have been an element of truth in what he said. The anti-democratic, protectionist, anti-immigrant, pro-authoritarian administration that has now taken shape, in other words, is not only Bannonism. It is raw and unvarnished Trumpism, too.

Trump’s Canada Feud Signals Weakness, Not Strength

Picking a fight with Justin Trudeau on the eve of the North Korea talks sent the wrong message to America’s enemies.

..  White House trade adviser and apparent theologian Peter Navarro said on Fox News Sunday that “there’s a special place in Hell for any foreign leader that engages in bad-faith diplomacy with President Donald J. Trump and then tries to stab him in the back on the way out the door.”

Navarro was talking about Trudeau’s decision to hold a press conference in which he calmly, quietly, and politely — which is to say, Canadianly — explained that America’s neighbors to the north would be responding to the White House’s imposition of aluminum and steel tariffs with tariffs of their own, something the Canadian government had said it would do all along.

.. Kudlow, a friend of mine (who suffered a thankfully mild heart attack Monday night), went on to claim that the real reason Trump attacked our ally was to offer a show of strength before the Singapore summit.

.. “POTUS is not going to let a Canadian prime minister push him around,” Kudlow told CNN’s Jake Tapper. “He is not going to permit any show of weakness on the trip to negotiate with North Korea. . . . Kim must not see American weakness.”

.. Traditionally, the president of the United States is considered the leader of the free world. Well, being the leader of a coalition of powerful and rich countries is a stronger position than leader of America alone.

.. By throwing Canada under the bus — with language we rarely use about our actual adversaries — Trump and his subalterns were sending a message of American weakness, not strength.

Sucking up to Russian president Vladimir Putin while hippie-punching Trudeau doesn’t make Trump himself look stronger, either.

..  One unnamed senior Trump adviser told The Atlantic’s Jeffrey Goldberg that the Trump Doctrine could be summarized as “We’re America, Bi***.” That may not be an official policy statement, but that is the impression our allies are getting.

.. Trump is profoundly unpopular and distrusted among the electorates of many of our allies. When Pew asked about public confidence in Trump’s ability to handle world affairs, 22 percent of Canadians expressed confidence in the president (compared with 83 percent for Obama). In Germany, only 11 percent trust Trump.

That’s not a problem if you think we don’t need allies, because they’re all going to Hell anyway. But don’t be surprised if other world leaders decide it’s in their interest to behave antagonistically toward America now that Trump has decided it’s in his interest to do so to them.