The American people are collateral damage in the president’s trade conflicts.
The Trump administration has been trying out a fresh line with the American public of late: Patriotism requires sacrifice.
As the president’s trade wars drag on, putting the economic bite on a growing number of Americans, his team is scrambling to put a nationalist gloss on his protectionist gamble, spinning it as a noble crusade in which the individual interest must be subordinated to the greater good.
Sure Americans “pay a little bit,” Mr. Trump acknowledged in a speech to real estate professionals in mid-May. “But it’s worth it.”
Concerned about losing support among rural voters caught in the tariff crossfire, he recently issued a Twitter proclamation that America’s “Patriot Farmers” would eventually be “the biggest beneficiaries of what is happening now.” Until then, he plans to subsidize impacted producers. Last Thursday, the Agriculture Department announced that it would provide up to $16 billion in farm aid, to be financed, the president has said, using the “massive Tariffs being paid to the United States for allowing China, and others, to do business with us.”
Mr. Trump failed to mention who pays those “massive Tariffs.” (Hint: Americans.) But he has never been one to let details get in the way of a good plotline.
The president’s chief economic adviser, Larry Kudlow, has been more frank about the United States-China showdown. “Both sides will suffer,” he said after trade talks with China broke down earlier this month. But the “possible improvement in trade and exports and open markets” make the suffering “worthwhile,” he added. “You’ve got to do what you got to do.”
Republican lawmakers, usually a free-trade-loving bunch, have taken up the cause as well. Senator Pat Toomey of Pennsylvania allowed that tariffs are “absolutely painful and dislocating,” but he reasoned that, someday, Americans might look back and say they were “worth the price.”
And when it comes to wrapping tariffs in the flag, no one can touch Senator Tom Cotton of Arkansas. Yes, the trade war will require “some sacrifices on the part of Americans,” he said, but the costs “will be pretty minimal” compared with those paid by American troops serving overseas and our “fallen heroes.”
Give Mr. Cotton debate points: Few would dispute that being killed in action is more of a hardship than paying a little extra for spark plugs or baseball mitts or live eels.
Fewer still would make such a tasteless comparison.
Previous presidents have appealed to Americans’ patriotism in wartime. In peacetime, President Kennedy’s 1961 inaugural entreaty — “Ask not what your country can do for you. Ask what you can do for your country.” — inspired an entire generation.
The Trumpian call to duty, however, is a particularly bold — even counterintuitive — choice for a president whose core message has always been that he can save anxious Americans from having to make tough choices, to adapt to economic changes or to face scary cultural shifts. His pledge to Make America Great Again has never been about helping move the nation into the future, but about easing it back into a more comforting past. In his capacity as Strong Leader, he has vowed to take care of everything, and it is all going to be “so easy.”
There is, in fact, no problem so big or so complex that Mr. Trump has not boasted of his ability to fix it quickly and painlessly.
- Repealing and replacing Obamacare with a better, cheaper system? Easy.
- Returning domestic manufacturing to its heyday? Easy.
- Lowering gas prices?
- Ending the drug problem?
- Dealing with China? Easy, easy and easy.
- Restoring cultural and economic security by erecting a big, beautiful border wall that Mexico will pay for? Piece. Of. Cake.
Of all Mr. Trump’s grandiose claims, his pledge to restore lost manufacturing jobs remains among the most heartbreaking. “Don’t move. Don’t sell your houses,” he soothed voters in the Rust Belt town of Youngstown, Ohio, in 2017. “They’re all coming back,” he promised of the jobs and prosperity.
In the meantime, Mr. Trump has no intention of abandoning his penchant for making impossible promises. At a rally in Montoursville, Pa., last week, he went on and on about how he had saved American industry, saying, “Remember the old days, we actually made our own product.” The president lamented the tens of thousands of factories that have been shuttered post-Nafta, before proclaiming triumphantly, “They’re all coming back!”
Are they, Mr. President?
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?”