Trump’s top economic adviser departs, and the administration’s grown-ups worry.
Mr. Trump’s washing-machine and solar-panel salvo was to be followed by a focus on China’s unfair trade practices, namely intellectual-property theft. The president would announce narrowly targeted trade actions against that country, while holding aluminum and steel tariffs in reserve. All this would be choreographed around renegotiation of the North American and Korea-U.S. free trade agreements.
.. Mr. Ross took advantage of the situation last week to get the president’s ear, and back we were to the days of Mr. Trump spinning out on the advice of the last person in the room.
.. few know that he spent this past weekend talking the president down from an even more Planet Mars idea from Team Ross —to set tariffs closer to 50%.
.. Mr. Ross (a former steel executive) and the nativist Peter Navarro have driven out their biggest free-market opponent, increasing their ability to wreak harm on the economy.
The voices of those who actually understand economic policy are greatly diminished, as evidenced this week by the administration’s endless loop of fact-free and near fantastical claims about the effects of the tariffs.
His shabby treatment has more than a few of the grown-ups now actively considering their own exit plans. It’s one thing to do battle daily; it’s another to watch months of work get flushed on a whim, and get publicly branded a “globalist” to boot. Mr. Cohn’s top deputy, Jeremy Katz, departed just as soon as the tax deal passed, and watch for other Cohn staffers—many of them important free-market voices—to follow.
.. Imagine a Trump presidency without Mr. Kelly, H.R. McMaster, Jim Mattis, Don McGahn, Mick Mulvaney, Kevin Hassett. Consider, too, that no one as good is likely to replace them—now having seen how the White House works.
And don’t forget congressional Republicans, whom Mr. Trump has potentially set up for a midterm rout.
Many are furious that he has forced them to call him out, splitting the party. But they are also legitimately fearful the tariffs will spark trade war and destroy tens or hundreds of thousands of jobs, neutralizing the benefits of the hard-won tax reform.
The economy is the best thing Republicans have going for them in November, and the Trump-Ross-Navarro trio just embraced the only policy that could kill it.
Just how bad it is will depend hugely on Mr. Cohn’s successor.
.. Besides, who in his right mind would even want the job?
Select the Worst Trump Minion
Just this week we had a top aide with multiple domestic abuse allegations, plus a chief of staff who never seemed to bother to pursue the matter. And a communications director — third one in a little over a year — who helped write the statement defending said aide, whom she happened to also be dating.
.. Tenure is irrelevant. Kirstjen Nielsen has only been secretary of homeland security for a couple of months, but we already know her as the woman who tried to support her boss by claiming she wasn’t sure whether Norway was a predominately white country.
.. Secretary of Health and Human Services Alex Azar .. Azar’s mission is supposed to be bringing down prescription prices, and his main qualification is having run the American division of a drug company during the five years when the price of its insulin rose from $122 to $274 a vial.
.. Secretary of Education Betsy DeVos .. “The bureaucracy is much more formidable and difficult than I had anticipated,” she complained.
.. Scott Pruitt, head of the Environmental Protection Agency
.. “Do we really know what the ideal surface temperature should be in the year 2100? … That’s fairly arrogant for us to think that we know exactly what it should be in 2100.”
.. Attorney General Jeff Sessions is busy pushing the federal death penalty and trying to prosecute the marijuana industry in states where grass is legal.
.. U.S. Trade Representative Robert Lighthizer is trying to dismember the World Trade Organization. Smaller minds are fascinated by reports that Lighthizer has a life-size portrait of himself hanging on the wall at home.
.. Secretary of Commerce Wilbur Ross is in charge of the upcoming census, which is underfunded, and rumors are that the chief candidate for deputy director is a highly partisan Texas professor whose book on reapportionment is subtitled “Why Competitive Elections Are Bad for America.”
..Secretary of the Treasury Steve Mnuchin .. The new Trump nominee to lead the I.R.S. is a tax lawyer who specializes in defending wealthy clients against — yes! — the I.R.S. To cheer things up, we can go back to recalling the time Mnuchin posed with his wife, dressed in black opera gloves and a come-hither hairdo, admiring his signature on bills at the Bureau of Engraving and Printing.
Secretary of the Interior Ryan Zinke is well known for his enthusiasm for fossil fuel drilling. But even some of his fans were a little perplexed when he announced a policy for expanding offshore oil and gas drilling, and then abruptly added that there would be an exception for … Florida. Think it was all about Mar-a-Lago?
.. taxpayers paid $6,000 to helicopter Zinke to a critical appointment going horseback riding with Mike Pence.
Sec. Steve Mnuchin Refutes Reporter’s Portrayal of Davos as ‘Hangout for Globalists’
One reporter asked Mnuchin of the Trump administration’s decision to send a large delegation to the event: “What is the point of the Trump administration going to a place that is regarded, usually, as a hangout for globalists?”
“Well, I don’t think it’s a hangout for globalists,” Mnuchin shot back.
.. The secretary said the economic team’s purpose at the high-profile gathering “is going to go over and talk about the America First economic strategy.”
President Donald Trump will attend Davos from January 23 to January 26 and it will be lead by Mnuchin. During Thursday’s briefing, Mnuchin said, “We’re thrilled that the president is coming, and I think what we know is that the economy that’s good for the U.S. is good for the rest of the world.”
Other members of the delegation include Secretary of State Rex Tillerson, Secretary of Commerce Wilbur Ross, Secretary of Labor Alex Acosta, Secretary of Transportation Elaine Chao, Secretary of Energy Rick Perry, Secretary of Homeland Security Kirstjen Nielsen, United States Trade Representative Robert Lighthizer, Assistant to the president for Homeland Security and Counterterrorism Tom Bossert, Assistant to the President and Senior Adviser to the president Jared Kushner, Administrator of the United States Agency for International Development Mark Green, and Commissioner of Food and Drugs Scott Gottlieb.
.. White House Press Secretary Sarah Sanders later released a list of additional members that will travel as part of the delegation to Davos: Chief of Staff John Kelly, National Security Adviser H.R. McMaster, and Director of the National Economic Council Gary Cohn as well as other members of the White House staff. They will be traveling with the president.
Trump Promised to Protect Steel. Layoffs Are Coming Instead.
The layoffs have stunned these steelworkers who, just a year ago, greeted President Trump’s election as a new dawn for their industry. Mr. Trump pledged to build roads and bridges, strengthen “Buy America” provisions, protect factories from unfair imports and revive industry, especially steel.
.. Foreign steel makers have rushed to get their product into the United States before tariffs start. According to the American Iron and Steel Institute, which tracks shipments, steel imports were 19.4 percent higher in the first 10 months of 2017 than in the same period last year.
.. When ArcelorMittal announced the layoffs in Conshohocken, it blamed those imports, as well as low demand for steel for bridges and military equipment.
.. Earlier this year, tariffs seemed imminent. Wilbur Ross, the commerce secretary, said in late May that he expected to conclude the steel investigation by the end of June.
And in early June, Mr. Trump told a crowd in Cincinnati, “Wait till you see what I’m going to do for steel and your steel companies,” vowing that he would “stop the dumping” of products at superlow prices by other countries.
“We’ll be seeing that very soon. The steel folks are going to be very happy,” he said.
.. Some officials, like Mr. Ross — a former steel executive who was on ArcelorMittal’s board until he was confirmed in February — wanted to push ahead with tariffs. But others, including economic and national security advisers, worried about repercussions, trade advisers say.
.. The tariffs had plenty of opponents. Automakers, food processors and companies in other industries that use steel and aluminum in their products complained that tariffs would drive up costs and make them less competitive, ultimately sacrificing more American jobs than they would save.
.. “The president’s own words and lack of action have actually put the industry in a worse position than if he had done nothing at all,”