As China Talks Begin, Trump’s Trade Negotiator Tries to Keep President From Wavering

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?

 

Could an Amy Klobuchar Solve Democrats’ Dilemma?

They seek a presidential candidate who appeals to both their liberal coastal base and to Midwestern working- and middle-class voters

When asked recently who Republicans should fear most in the 2020 presidential campaign, two prominent GOP figures, both women speaking independently of each other, gave the same response: Sen. Amy Klobuchar of Minnesota.

A third Republican, a male, asked which kind of candidate Democrats should want, replied: “They need a boring white guy from the Midwest.”

So, there you have it: The dream ticket of Amy Klobuchar and Sen. Sherrod Brown of Ohio. Case closed, cancel the primaries, on to the general election.

So if all that creates an opportunity for Democrats in 2020, here’s their dilemma: Can they pick a candidate who can blend the party’s conflicting impulses?

This may seem a long ways off, but the reality is that most Democrats thinking of running for president—and the number probably runs into the 20s—plan to make their decision over the next several weeks, so they can move out starting in early 2019.

As this drama begins, the key question is whether the party will find somebody who appeals both to its coastal base dominated by progressives, upscale college graduates, millennials and minorities, or choose someone who is more appealing to traditional working- and middle-class voters in industrial Midwest states such as Pennsylvania, Wisconsin and Michigan, all of which helped Democrats reclaim the House in this year’s mid-term elections.

.. The winning lottery ticket, of course, goes to somebody who can appeal to both. And that’s why Ms. Klobuchar’s name—and profile—attract attention. She’s a woman, obviously, which is important at a time when newly energized women are a growing force within the party. She pleased her party base in the hearings on the Supreme Court nomination of Brett Kavanaugh when she challenged him about his use of alcohol, but did so in a sufficiently calm and understated manner that she won an apology from Mr. Kavanaugh after he initially responded angrily.

.. She also won re-election this year with more than 60% of the vote in the one state Trump forces lost in 2016 but think they have a legitimate chance to flip their way in 2020.

.. The question is whether she or anyone can put together a policy agenda that pleases both party liberals, who are pushing for

  1. a Medicare-for-all health system,
  2. the demise of the Immigration and Customs Enforcement system and an
  3. aggressive new climate-change action plan, and more moderate Midwestern voters, who may be scared off by all of those things.

Ms. Klobuchar’s policy priorities may suggest a path. To address health care, the top priority of Democratic voters, she advocates a step-by-step approach, one that seeks to

  • drive down prescription drug costs by opening the door to less-expensive drugs from Canada,
  • protect and improve the Affordable Care Act, and
  • expand health coverage by considering such steps as allowing more Americans to buy into the Medicare system.

.. She’s talked of a push to improve American infrastructure that would include expanding rural Americans’ access to broadband service, paying for it by rolling back some—though not all—of the tax cuts Republicans passed last year. She pushes for more vigorous antitrust enforcement, more protections for privacy and steps to curb undisclosed money in politics

.. For his part, Sen. Brown, a liberal who this year won Ohio as it otherwise drifts Republican, offers a working-class-friendly agenda that combines progressive impulses for government activism to drive up wages with Trumpian skepticism about trade deals and corporate outsourcing.

 

 

 

 

 

Trump begins making overtures to Democrats amid skepticism it will lead to any deals

President Trump, facing a Congress that will become dramatically more antagonistic toward him in January, has begun courting Democrats who could determine whether his next two years are spent scoring legislative deals or staving off an onslaught of congressional investigations.

Trump’s charm offensive was on display Monday when he hosted Sen. Joe Manchin III (D-W.Va.) at the White House for a meeting that the two men had spent days trying to schedule. Over a lunch of chicken, green beans and mashed potatoes, Manchin preached bipartisanship — urging the president to work with lawmakers on ending a pension crisis affecting tens of thousands of coal miners nationwide, said Jonathan Kott, Manchin’s spokesman.

During the hour-and-a-half lunch, Manchin also suggested that Trump take a look at a comprehensive immigration bill the Senate passed in 2013 as another area of potential cooperation with Democrats — even though Trump has vehemently opposed the legislation and pursued tougher immigration policies while in office. Trump and Manchin were joined at the beginning of the meeting by Vice President Pence and the president’s daughter and adviser Ivanka Trump.

.. In recent days, Trump has invited the top Democratic congressional leaders to the White House amid a pressing government funding battle and privately told a Democratic senator he would consider legislation to help stem the loss of auto manufacturing jobs in Ohio.

The overtures are a signal that Trump and his White House are at least feeling out whether the self-professed dealmaker can find common ground with Democrats next year even as he faces pressure from Republicans to keep the opposition party at arm’s length.

.. “I’ve seen him when others advise not to make a deal and he moves ahead,” said Marc Short, the former White House legislative affairs director.

But others cautioned that Trump’s bipartisan urges can be episodic and fleeting — a dynamic of which lawmakers and his aides are well aware.

“When he thinks he needs to be bipartisan, he does it for a while,” one adviser said.

.. Trump had requested that Pelosi and Schumer meet with him at the White House this week. Aides said the White House did not specify any agenda, but the meeting has been put off until next week, after memorial services are held for former president George H.W. Bush, who died Friday.

.. In previous interactions with Trump, the two Democratic leaders have shown they can push the president toward their desired policy outcomes — and quickly set the narrative. Last year, Pelosi and Schumer left a White House dinner and eagerly put out word that Trump had agreed to a deal that would combine permanent protections for young undocumented immigrants with border security measures, only to have the administration dispute that any agreement had been reached.

Pelosi and Schumer would often skip the staff and try to meet with Trump, who would welcome a deal and emphatically support one.

“The president would learn the details and then would realize it was a bad deal,” a former administration official said.

Trade is another area that could be ripe for cooperation between Trump and congressional Democrats — leaving GOP leaders increasingly uneasy about Trump’s tendencies.

.. Lighthizer has spoken encouragingly of Pelosi — who has repeatedly bucked presidents, including Barack Obama, on trade — to GOP lawmakers since her views are more likely to align with Trump’s and she could be willing to work with the administration, according to two Republicans briefed on those exchanges.

Last week, Pelosi — joking that the new North American pact “has some kind of gobbledygook name” — said the trade deal “formerly known as Prince” was still a work in progress.

.. Pelosi said. “But what isn’t in it yet is enough enforcement reassurances regarding provisions that relate to workers and to the environment. There also has not been a law passed in Mexico in terms of wages and working conditions in Mexico.”

.. The notion still has plenty of skeptics in the West Wing, with questions over how to pay for new projects. Yet Shahira Knight, Short’s successor as Trump’s main liaison to Capitol Hill, has told one key House Democrat that the president wants to pursue an infrastructure deal and acknowledges that it’ll take real money. 

.. The notion still has plenty of skeptics in the West Wing, with questions over how to pay for new projects. Yet Shahira Knight, Short’s successor as Trump’s main liaison to Capitol Hill, has told one key House Democrat that the president wants to pursue an infrastructure deal and acknowledges that it’ll take real money.

The White House outreach has only gone so far — particularly when it concerns committees and lawmakers more likely to be investigating the administration than cutting deals.

Rep. Bennie Thompson (D-Md.), the likely incoming chairman of the House Homeland Security Committee, has heard “not a word” from the White House as he prepares to lead a panel that plans to scrutinize the administration’s immigration directives and response to natural disasters.

.. Last Wednesday, Trump phoned Sen. Sherrod Brown after the Ohio Democrat requested a call to discuss General Motors’s recent decision to shutter several auto plants, including one in northeastern Ohio. During the call, Brown, who also talks trade with Lighthizer, urged Trump to get behind legislation he drafted that would get rid of tax provisions that could incentivize companies to ship auto manufacturing jobs abroad.

.. Trump said he liked the bill, according to Brown’s retelling, and his office rushed a copy of the legislation over to the White House. But Brown has tried to negotiate with the White House before — notably on the tax legislation last year — only to find that Trump ultimately decided to shun bipartisan dealmaking and go toward a Republican-only approach.

Brown hopes that this time it’s different.