U.S. stock futures fell on Sunday night following the latest escalation in the U.S.-China trade war by President Donald Trump.

Dow Jones Industrial Average futures traded 224 points lower, indicating a drop of 169.90 points at Monday’s open, as of 8:39 p.m. ET Sunday. S&P 500 and Nasdaq 100 futures also pointed to opening declines for both indexes.

Trump tweeted Friday after the market close that the U.S. will raise tariffs on $250 billion worth of Chinese goods to 30% from 25%. Tariffs on another $300 billion in Chinese products will also go up to 15% from 10%, he said. The levies on the $250 billion worth of goods are scheduled to kick in Oct. 1, while the duties on the $300 billion are set to go into effect in two stages on Sept. 1 and Dec. 15.

“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” Trump said in his tweets. “As President, I can no longer allow this to happen!”

Trump later said at the G-7 summit in in Biarritz, France he regrets not raising tariffs on China even more, noting he has “second thoughts about everything.” The president added he could declare the trade war a national emergency.

Trump’s comments and tweets came after China unveiled new tariffs Friday on $75 billion worth of U.S. products, including autos. Trump had also ordered on Friday that U.S. companies move their Chinese operations elsewhere, sending U.S. stocks tumbling.

The major indexes all fell more than 2% on Friday, with the Dow Jones Industrial Average losing 623.34 points. Those declines wiped out the weekly gains the averages had built through Thursday’s close. After Friday’s session, the Dow ended down 1% for the week, while the S&P 500 and Nasdaq Composite concluded the week down 1.4% and 1.8%, respectively. Last week also marked the indexes’ fourth straight weekly loss, their longest since May.

China and the U.S. have been engaged in a trade war since last year. The economic conflict has dampened economic and corporate earnings growth expectations as investors and companies weigh its impact on the global economy. The U.S. and China are the world’s largest economies.

“The ongoing Trade War is redrawing global supply chains, claiming casualties in the process,” Julian Emanuel, chief equity and derivatives strategist at BTIG, said in a note. “As persistent headwinds intersect with traditional seasonal softness, recent volatility can be expected to continue in the near term as markets await policy developments.”

The trade war is taking place against a backdrop of softening economic growth. Germany’s manufacturing sector is contracting while China’s economy grew at its slowest pace in nearly three decades in the second quarter.

The U.S. bond market has also flashed a recession signal recently. The 10-year Treasury yield has dipped below its 2-year counterpart. This phenomenon is known as a yield-curve inversion. Experts fear it because it has historically preceded recessionary periods.

This economic soft patch has led central banks to ease monetary conditions, including the Federal Reserve.

Fed Chairman Jerome Powell said Friday the central bank will “act as appropriate” to sustain the current U.S. economic expansion, which is the longest in history. However, Powell failed to clearly signal that another rate cut was imminent in September.

“The problem facing stocks isn’t restrictive monetary policy but instead Trump’s destructive trade policy,” Adam Crisafulli, executive director at J.P. Morgan, said in a note Sunday. “Rates are already very low and low yields coupled with inverted curves are becoming counterproductive for stocks – as a result, central banks are doing about all they can right now.”

Last month, the Fed cut rates by 25 basis points. Market expectations for a September rate cut are also at 100%, according to the CME Group’s FedWatch tool.

—CNBC’s Michael Bloom and Chris Hayes contributed to this report.

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Source Article from https://www.cnbc.com/2019/08/25/dow-futures-drop-300-points-at-the-open-as-us-china-trade-war-escalates.html

BRASILIA (Reuters) – A record number of fires ravaging the Amazon has drawn international outrage because of the rainforest’s importance to the global environment and prompted Brazilian President Jair Bolsonaro to dispatch the military to assist in firefighting.

Here is what you need to know about the disaster.

WHY DOES THE AMAZON MATTER?

The Amazon – 60% of which is in Brazil – is the world’s largest tropical rainforest. It is considered a biodiversity hot spot, with many unique species of plants and animals.

The dense jungle absorbs a huge amount of the world’s carbon dioxide, a greenhouse gas believed to be the biggest factor in climate change, so scientists say that preserving the Amazon is vital to fighting global warming.

HOW BAD ARE THE FIRES?

Forest fires in all of Brazil have hit the highest level since at least 2013 and are up 84% this year to August 23, compared to the same period a year ago, according to Brazil space research agency INPE. There have been 78,383 fires so far this year, with roughly half of those in August alone.

Eight out of nine Amazon states have seen an increase, with the largest state of Amazonas seeing a 146% rise. Residents on the ground in the states of Rondonia and Amazonas states said while there are fires every year they have never seen it this bad, with clouds of smoke blanketing the region.

WHAT CAUSED THE FIRES?

Fires in the Amazon are often set on purpose to clear land. After loggers extract wood, speculators burn the remaining vegetation to clear it in hopes of selling the land to farmers and ranchers. The Amazon is several months into its dry season during which these fires can more easily spread out of control.

Environmentalists say that those setting the fires have been emboldened because they hear Bolsonaro calling for more development of the Amazon and think they will not be punished.

Deforestation has risen 67% year-on-year in the first seven months of 2019 and more than tripled in July alone. Environmentalists believe those deforesting are the same people starting the fires.

HOW HAS BRAZIL’S GOVERNMENT REACTED?

Bolsonaro initially suggested that the fires were normal, then said that non-government organizations themselves were setting the fires to hurt his government. He did not present any evidence and later backed off from that claim.

Bolsonaro has said that the country does not have the resources to fight the fires in an area as large as the Amazon, while also warning other countries not to interfere, saying that foreign money was aimed at undermining Brazil’s sovereignty.

The government has now decided to mobilize the military to fight the fires and several Amazon states have subsequently requested support. It remains unclear exactly how the armed forces will be deployed and how effective they will be.

WHAT DO WORLD LEADERS SAY?

French President Emmanuel Macron has called the fires an international emergency and “ecocide,” and criticized Brazil’s government for not doing more to protect the rainforest.

Macron’s office said in a statement that it would oppose eventual approval of the free trade deal between the European Union and the South American trade bloc Mercosur, because Bolsonaro lied about environmental concerns at June’s G20 summit when it was first agreed to.

British Prime Minister Boris Johnson and German Chancellor Angela Merkel have said they are concerned about destruction of the Amazon but said that blocking the trade deal was not the right response.

On Sunday, Macron said the leaders of the United States, Japan, Germany, France, Italy, Britain and Canada were finalizing a possible deal at their annual summit on “technical and financial help” for the countries affected by the fires, including Brazil.

President Donald Trump offered Bolsonaro U.S. assistance in a phone call, but Brazilian officials subsequently said they were not working with the United States to combat the fires.

HOW HAS THE PUBLIC REACTED?

Brazilians have taken to the streets to protest government inaction on the fires in more than a dozen cities, shutting down major roads in Brasilia and Sao Paulo. Demonstrations have been held outside of Brazilian embassies in Paris and London.

On social media, #PrayForAmazonas and similar hashtags have been trending on Twitter. Users posting in support of Bolsonaro have also pushed a hashtag translating as “TheAmazonWithoutNGOs” into the trending topics on the platform.

Slideshow (5 Images)

WHAT DOES IT ALL MEAN FOR CLIMATE CHANGE?

Scientists fear that continued destruction of the Amazon could push it toward a tipping point, after which the region would enter a self-sustained cycle of forest dieback as it converts from rainforest into savannah.

Brazilian climate scientist Carlos Nobre believes 15-17% of the entire Amazon has already been destroyed. At first, researchers thought the tipping point would be 40% destruction. But that has changed with global warming raising temperatures in the Amazon and the increasing number of fires. Nobre now says that the tipping point is more likely at between 20-25%.

If the tipping point is triggered, the dieback will take 30 to 50 years, in which time 200 billion tonnes of carbon dioxide would be released into the atmosphere, Nobre said, making it far harder for the world to keep temperature rises below 1.5 to 2 degrees Celsius – the goal to avoid the most devastating effects of climate change.

Reporting by Jake Spring; Editing by Sonya Hepinstall

Source Article from https://www.reuters.com/article/us-brazil-environment-amazon-explainer-idUSKCN1VF0TX

French President Emmanuel Macron (left) and President Trump participate in a G-7 working session. Trump is in Biarritz, France, for the G-7 summit of the world’s biggest economic powers.

Andrew Harnik/AP


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French President Emmanuel Macron (left) and President Trump participate in a G-7 working session. Trump is in Biarritz, France, for the G-7 summit of the world’s biggest economic powers.

Andrew Harnik/AP

President Trump is meeting with his counterparts at the G-7 summit in France, where he walked back previous statements on trade with China.

On Friday, Trump hiked tariffs on Chinese imports and threatened to invoke a 1977 act authorizing the president emergency powers to force U.S. businesses out of China.

On Sunday in Biarritz, France, Trump affirmed that he has the right to force American companies out of China but said, “I have no plan right now. Actually, we’re getting along very well with China right now. We’re talking.”

Asked if he had second thoughts about tariffs on Chinese goods, Trump said, “Yeah, sure, why not? Might as well. Might as well. I have second thoughts about everything.”

He also told reporters that allies were not pressuring him on trade with China. “I think they respect the trade war,” Trump said. “I can’t say what they’ve been doing to the U.K. and to other places, but from the standpoint of the United States, what [China] has done is outrageous.”

About five hours after Trump’s statements, White House press secretary Stephanie Grisham said reporters were misinterpreting them.

“This morning in the bilat with the UK, the President was asked if he had ‘any second thought on escalating the trade war with China’. His answer has been greatly misinterpreted. President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” Grisham said in a statement emailed to reporters.

The G-7 summit is a meeting of the world’s biggest economic powers, including the United States, Germany, France, Japan, Italy, Canada and the United Kingdom.

Trump met Sunday with Britain’s new prime minister, Boris Johnson, who says he will withdraw Britain from the European Union by the scheduled date of Oct. 31, with or without an agreement with the EU.

A trade deal with the U.S. would replace weakening trade ties with the EU and attempt to shore up Britain’s economy. Trump called Johnson “the right man” to deliver Brexit and said he planned to form “a very big trade deal” with Britain.

On Sunday, Trump also said he is working on “a very big deal” with Japan, saying, “It will be one of the biggest deals we’ve ever made with Japan.”

Iranian Foreign Minister Mohammad Javad Zarif arrived in Biarritz on Sunday, but his spokesman said he did not plan to meet with U.S. officials. NPR’s Jake Cigainero reports that French officials say Zarif was invited to meet with his French counterpart, Jean-Yves Le Drian, after meeting with President Emmanuel Macron in Paris just days ago.

Macron has tried to take the diplomatic lead in saving the 2015 Iran nuclear agreement, which Trump pulled the U.S. out of in 2018. Tensions between the U.S. and Iran have risen in recent years over Iran’s nuclear program and its role in Syria and other conflicts in the Middle East.

Source Article from https://www.npr.org/2019/08/25/754159657/president-trump-walks-back-statements-on-china-white-house-reverses-him

WASHINGTON, Aug 25 (Reuters) – Joe Walsh, a conservative former U.S. congressman turned talk show host, on Sunday became the second Republican to challenge President Donald Trump for the party’s 2020 White House nomination.

Walsh criticized Trump, who has strong support among Republicans, as a bully who is unfit for office as he announced his long-shot bid.

“I’m running because he’s unfit,” Walsh, 57, told ABC’s “This Week” program. “Somebody needs to step up.”

FILE – In this Nov. 17, 2010 file photo, then-Rep.-elect Joe Walsh, R-Ill., speaks on Capitol Hill in Washington. The Chicago Sun-Times reports Thursday, July 28, 2011, that Walsh’s ex-wife, Laura Walsh has sued her ex-husband for more than $117,000 in what she says is unpaid child support and interest. Laura Walsh filed the claim in December in their divorce case. (AP Photo/Manuel Balce Ceneta, File)




“He’s a bully and he’s a coward and somebody needs to call him out,” Walsh said. “The bet … of my campaign is that there are a lot of Republicans that feel like I do. They’re afraid to come forward.”

Walsh won a House of Representatives seat from Illinois as a candidate of the Republican Party’s fiscally conservative Tea Party movement in 2010 but was defeated by Democrat Tammy Duckworth in his 2012 re-election bid. After leaving Congress, he became a Chicago-area radio talk show host.

William Weld, a former Massachusetts governor, had been the only Republican trying to unseat Trump, but his candidacy has so far failed to gain traction.

Former U.S. Representative and South Carolina Governor Mark Sanford said in July he was considering a primary challenge because of the rising federal debt.

Any Republican challenger will face a formidable re-election effort mounted by Trump, who has consolidated his grip on the party’s national and state machinery. A Reuters/Ipsos poll conducted Aug. 19-20 showed 87% of Republicans approve of his performance in office.

Walsh said he was undeterred. “I think this thing … will catch on like wildfire,” he said. (Reporting by Doina Chiacu and Tim Ahmann; Editing by Lisa Shumaker and Sonya Hepinstall)

Source Article from https://www.aol.com/article/news/2019/08/25/joe-walsh-becomes-second-republican-to-challenge-trump-for-white-house/23801024/

BIARRITZ, France (Reuters) – Iran’s foreign minister paid a visit to a G7 summit in France on Sunday, an unexpected twist to a meeting already troubled by differences between U.S. President Donald Trump and Western allies over a raft of issues, including Iran.

A White House official said France’s invitation to Mohammad Javad Zarif for talks on the sidelines of the gathering in the southwestern beachside town of Biarritz was “a surprise”.

Zarif met his French counterpart to assess what conditions could lead to a de-escalation of tensions between Tehran and Washington, a French official said.

Zarif also saw French President Emmanuel Macron during his brief stay, but the White House official said the Iranian minister did not meet any U.S. officials before he flew out of Biarritz airport.

European leaders have struggled to calm a deepening confrontation between Iran and the United States since Trump pulled his country out of Iran’s internationally brokered 2015 nuclear deal last year and reimposed sanctions on the Iranian economy.

Earlier on Sunday, Trump appeared to brush aside French efforts to mediate with Iran, saying that while he was happy for Paris to reach out to Tehran he would carry on with his own initiatives.

Macron has taken the lead in trying to defuse tensions, fearing that a collapse of the nuclear deal could set the Middle East ablaze. He met Zarif on Friday ahead of the G7 summit to discuss ways of easing the crisis, including reducing some U.S. sanctions or providing Iran with a compensation mechanism.

Iran wants to export a minimum of 700,000 barrels per day of its oil and ideally up to 1.5 million bpd if the West wants to negotiate with Tehran to save the 2015 deal, two Iranian officials and one diplomat told Reuters on Sunday.

However, Trump’s fellow G7 leaders failed on Saturday to persuade the U.S. president to reissue oil sanction waivers that were granted last year to some buyers, but which came to end in May, a European diplomat familiar with the discussion said.

‘DIFFICULT’ DINNER

Trump, a turbulent presence at last year’s G7 gathering, insisted on Sunday that he was getting along well with other leaders of a group that also includes Britain, Canada, France, Germany, Italy and Japan.

But rifts emerged on issues from his intensifying trade war with China to the nuclear ambitions of both Iran and North Korea, and the question of whether Russian President Vladimir Putin should be readmitted to the group.

Russia was excluded from what used to be the G8 in 2014 after it annexed Ukraine’s Crimea and then backed an anti-Kiev rebellion in the industrial region of Donbas in eastern Ukraine.

A European official who declined to be named said Russia was the thorniest issue discussed over dinner on Saturday.

“(The conversation) became a bit tense over this idea of the G7 being a club of liberal democracies … that point was clearly not shared by the U.S. president,” the official said.

Trump’s argument was that on a number of issues, like Iran and Syria, it made more sense to have Putin involved in the talks given that Russia is a key player there.

New British Prime Minister Boris Johnson on Sunday congratulated Macron for hosting a difficult encounter.

“You’re doing well,” Johnson said on the sidelines of the summit. “You did very well last night, my God, that was a difficult one, you did really, you did really well.”

The G7 gathering is taking place against a backdrop of worries that a global economic downturn could be exacerbated by the escalating tariff war between Washington and Beijing.

Britain’s Johnson voiced concern on Saturday about creeping protectionism and said those who support tariffs “are at risk of incurring the blame for the downturn in the global economy”. Sitting across from Trump on Sunday, he said: “We’re in favor of trade peace on the whole, and dialing it down if we can.”

Italian Prime Minister Giuseppe Conte warned other leaders of the dangers of protectionism and urged Washington not to carry through on its threat to impose tariffs on German autos.

However, the White House doubled down on its aggressive stance toward trade with China.

White House spokeswoman Stephanie Grisham, explaining what Trump meant when he said earlier on Sunday that he had had second thoughts after announcing more tariff raises on Chinese goods last week, said that he simply regretted not hiking them higher.

‘NICHE ISSUES’

Looking to broaden the gathering, Macron invited several African leaders to discuss problems facing their continent, while leaders from India, Australia, Chile and Spain joined the group for dinner on Sunday where the focus was on the environment and other issues.

However, senior U.S. officials accused Macron of looking “to fracture the G7” by focusing on “niche issues” rather than major global concerns.

France denied this, pointing to Sunday’s initial session covering the economy, trade and security – areas that used to draw easy consensus but are now sources of great friction.

Trump up-ended last year’s G7 meeting in Canada, walking out early and disassociating himself from the final communique.

Amid the wrangling this time around, some potential positives emerged, with Trump and Japanese Prime Minister Shinzo Abe agreeing in principle to core elements of a trade deal.

“It’s billions and billions of dollars. Tremendous for the farmers,” Trump said.

However, the two men appeared at odds over North Korea’s series of short-range missile launches.

Slideshow (35 Images)

Trump, who prizes his relationship with North Korean leader Kim Jong-un, said the launches did not violate an agreement and were in line with what others were doing. Abe, sitting across from him, said they breached U.N. resolutions.

At the start of the day, Trump said Britain would have a major trade deal with Washington after it leaves the European Union. Asked what his advice on Brexit was for Johnson, he replied: “He needs no advice, he is the right man for the job”.

While the transatlantic rift is the most stark, there are also deep divisions within the European camp, with Johnson making his G7 debut at a time when he is struggling to persuade EU capitals to renegotiate Britain’s exit from the bloc, which Johnson has said will happen on Oct. 31 come what may.

Reporting by Richard Lough, John Irish, Crispian Balmer, Marine Pennetier, John Chalmers, Jeff Mason, William James, Andreas Rinke and Michel Rose; Writing by John Chalmers; Editing by William Maclean, Crispian Balmer and Frances Kerry

Source Article from https://www.reuters.com/article/us-g7-summit/shock-at-g7-summit-as-irans-zarif-lands-in-biarritz-idUSKCN1VE0VM

The White House was blindsided by the arrival of Iranian Foreign Minister Mohammad Javad Zarif on Sunday in the coastal French town where President Donald Trump and other world leaders are meeting this weekend, according to three U.S. officials.

It’s unclear how much notice Trump had of Zarif’s arrival in Biarritz, France, the site of this year’s Group of Seven summit. When asked about it, the president told reporters he had no comment.

A spokesman for Zarif announced Zarif had arrived in Biarritz at the invitation of the French foreign minister “to continue talks” between the Iranian and French governments. The statement followed reports of an Iranian government plane landing in Biarritz.

Zarif had intended to travel to China today — the first stop of an Asia swing to canvass support for the nuclear deal. An Iranian source said the switch to the French resort was a last minute decision after Zarif’s French counterpart extended the invitation.

“No one was expecting it,” one U.S. official said of Zarif’s arrival. “It was a surprise.”

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U.S. officials said some in the administration were furious at the French government’s decision to invite Zarif to Biarritz without significant advance notice. But they could not characterize the president’s views.

French President Emanuel Macron has been urging Trump and the Iranians toward a dialogue. France, Germany and the U.K. have tried to salvage the Iranian nuclear deal since Trump withdrew the U.S. from the pact last year.

Trump met privately with Macron for 90 minutes over lunch on Saturday after arriving in Biarritz.

Last month, the Trump administration imposed sanctions on Zarif. Treasury Secretary Stephen Mnuchin said at the time that the Iranian foreign minister “spreads the regime’s propaganda and disinformation around the world.”

Asked Sunday in Biarritz about Zarif’s arrival there, Mnuchin said to the extent Iran wants to negotiate, Trump has said he won’t set any preconditions to talks.

In his tweet confirming the trip, a spokesman for the country’s foreign ministry stressed that “there will be no meetings or negotiations” with U.S. officials during the visit.

Trump has signaled a willingness to meet with Iranian officials, but Tehran has resisted talks amid what the White House dubs the president’s “maximum pressure” campaign aimed at squeezing the Iranian economy.

“Iran wants to make a deal because the sanctions are not good for them,” Trump said recently at a rally in New Hampshire. “They are not happy.”

Zarif arrived as fissures emerged among G-7 leaders over how to deal with Iran, as well as the threat of a global recession and China.

Zarif was due to travel to Asia in the coming days as part of his tour to get support for Iran amid rising tensions with the U.S. since Trump withdrew America from Tehran’s 2015 nuclear deal with world powers.

He told NBC News last month that the door is “wide open” to diplomacy if Trump removes the array of sanctions he has imposed since 2017 that have slashed the country’s oil exports and damaged its economy.

Iran announced sanctions on Saturday against the hawkish Washington-based think tank Foundation for Defense of Democracies, which spent years arguing against the Iran nuclear deal, and its CEO, Mark Dubowitz. Iran accused the group of “economic terrorism” and threatened possible action by Iran’s “security apparatuses” against those who work there.

A State Department spokesman responded to the move on Twitter, writing that the administration “takes the regime’s threats seriously” and would “hold Iran responsible for directly or indirectly compromising the safety of any American.”

On Sunday, Dubowitz criticized the idea of Zarif “being welcomed” to Biarritz, writing on Twitter that he hopes Trump and Macron are “making clear to him that further threats will lead to his banishment,” including from the United Nations General Assembly next month.

Source Article from https://www.cnbc.com/2019/08/25/white-house-blindsided-by-iranian-foreign-minister-zarifs-g7-appearance.html



Tropical storm warnings and watches have been posted for the eastern Caribbean islands.

The fourth named storm of the 2019 hurricane season continued to churn toward the eastern Caribbean on Sunday.

Tropical storm warnings have been issued for Barbados and St. Vincent and the Grenadines. A tropical storm watch has been issued for St. Lucia.

The 11 a.m. advisory from the National Hurricane Center said maximum sustained winds are near 40 mph with higher gusts. Hurricane experts expect some strengthening during the next 48 hours.

Dorian could be near hurricane strength by Tuesday over the warm eastern Caribbean Sea, the NHC said.

Dorian is moving toward the west near 14 mph and speed and path should

continue through Sunday. A turn toward the west-northwest is expected on Monday and continue through Tuesday night. By late Monday, Dorian’s center is expected to Windward Islands.

The storm would stay to the southwest of Puerto Rico before making landfall in the Dominican Republic on Friday.

Tropical Storm Dorian grew from the fifth tropical depression of the 2019 season, which had formed early Saturday.

This weekend, however, South Florida residents were spared the brunt of a tropical disturbance that brewed late last week over the Bahamas. That storm drifted northeast, taking heavy rains and wind with it.

That said, Palm Beach County forecasters are calling for mid-afternoon thunderstorms in Palm Beach County, with a high temperature of 89.

Dorian’s trek is expected to follow a north-northwest direction through the remainder of this week. That path would have it cross the Lesser Antilles between Monday and Tuesday.

Source Article from https://www.palmbeachpost.com/news/20190825/tropical-storm-dorian-storm-could-reach-hurricane-status

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Source Article from https://www.bloomberg.com/news/articles/2019-08-25/u-s-corporate-chiefs-sound-alarm-on-trump-s-threats-over-china

President TrumpDonald John TrumpGraham: America must ‘accept the pain that comes in standing up to China’ Weld ‘thrilled’ more Republicans are challenging Trump New data challenges Trump’s economic narrative MORE has repeatedly said the U.S. economy under his watch has been extraordinary.

His tweeted descriptors have included “BOOMING,” “GREAT,” “stronger than ever” and “perhaps the greatest ECONOMY and most successful first two years of any President in history.”

But a slew of recent data suggests the Trump economy has fared no differently than other expansions at this stage. And those same numbers indicate the president’s economy may be headed toward a downturn.

“I would actually say it’s been a weaker recovery than what we’ve seen previously, particular in comparison to the expansions of the ’80s and ’90s,” said PNC Bank Chief Economist Gus Faucher.

That viewpoint has been shaped by figures like the ones released by the Bureau of Labor Statistics on Thursday. The agency issued a downward revision showing the economy added 500,000 fewer jobs from January 2018 through March 2019.

What was once an impressive 223,000 jobs added each month last year, on average, may have been closer to 191,000, according to the new data.

Even before the revision, average monthly job growth since Trump took office has been 193,000, below the 208,000 average in former President Obama’s second term. The recent revision puts Trump’s overall monthly average at 177,000.

“We thought we had a bit of acceleration in job growth in 2018, but it looks like instead what we had was roughly the same trend we had before,” Faucher said.

Economic growth has exhibited a similar pattern.

A downward revision in gross domestic product by government economists robbed the Trump administration of a talking point that it had achieved four consecutive quarters of growth averaging 3 percent, a threshold Trump has long argued is sustainable over a 10-year period.

Goldman Sachs now estimates that growth will slow to 1.8 percent in the fourth quarter of 2019, a figure Trump is unlikely to trumpet.

“If you judge the economy based on how he’s judged the economy, it’s pretty mixed,” says Mark Zandi, chief economist at Moody’s Analytics, referring to Trump. “He took a lot of credit on the stock market, but it’s gone nowhere since January of 2018.”

Indeed, when it comes to the markets, Trump’s first year set him apart from his predecessors. Twelve months into his presidency, the Dow Jones Industrial Average had soared 31.6 percent, more than any other president, and nearly 6 percentage points better than Obama’s first year, when the economy was still in recession.

But 31 months into his presidency, Trump now lags previous Democratic presidents when it comes to the Dow’s performance. At this point in Obama’s first term, the Dow was up 45.2 percent since he took office. For former President Clinton, it was up 39.3 percent. Trump clocks in at 32.2 percent.

In fact, the Dow’s performance under Trump is closest to former President George H.W. Bush, who lost his reelection bid after the economy slipped into a recession.

Trump also came into office promising to wipe out the national debt and lower the trade deficit. Instead, the opposite has happened.

The federal deficit this year is expected to hit close to $1 trillion, up some 70 percent from its 2016 level of $587 billion. Meanwhile, the trade deficit, which stood at $502.3 billion before Trump came into office, has also ballooned.

“Notwithstanding the White House’s focus on shrinking the trade deficit, expect it to widen by 7 percent to 8 percent for all of 2019, to about $670 billion,” Kiplinger projected earlier this month in its economic forecast. “It’s up by 8 percent already in the first half of this year from the comparable first six months of 2018.”

But that’s not say the economy is in dire straits. Some bright spots stand out.

“In terms of unemployment levels, the economy looks great,” said Barry Bosworth, a senior fellow in the Economic Studies program at the Brookings Institution.

He noted that the jobless rate is near 50-year lows, more people are working and wages have even started ticking up.

“But if you’re looking at growth rates, it’s unusually slow,” Bosworth added. “This is the longest economic expansion in history, but it’s also the slowest.”

Economists point to lower productivity as one reason growth has not accelerated.

Then there are the concerns that a downturn could be on the horizon. In recent weeks, yields on long-term bonds have risen higher than those on short-term ones, creating what’s known as “an inverted yield curve.” It’s considered one of the best predictors of a recession, though on average the events are separated by 22 months.

“I would expect to see growth slow in the next couple of years, even if there’s not a recession,” said Faucher.

With the stimulus of the 2017 tax law wearing off and a trade war with China escalating almost monthly, Trump may have to answer for a slowing economy as he seeks a second term in office.

“I would say his economy is on borrowed time,” said Zandi. “He bought himself some time by borrowing lots of money and cutting a big check to business and high-income households, but I think his policies are driving the economy into the ditch.”

Source Article from https://thehill.com/policy/finance/458634-new-data-challenges-trumps-economic-narrative

CLOSE

US President Donald Trump and French President Emmanuel Macron had a private lunch before the start of the Group of Seven summit in Biarritz on Saturday. (August 24)
AP, AP

BIARRITZ, France – President Donald Trump denied reports Sunday of tension among world leaders at the G-7 summit in southwest France, insisting that he was having “good meetings” and that everyone was getting along well.

“From the moment we got here, we’ve been treated beautifully,” he said during a meeting with Japanese Prime Minister Shinzo Abe.

But behind the scenes, there were signs of discord.

Trump aides complained to reporters that French President Emmanuel Macron had arranged the agenda to focus on issues like climate change that would play well in his home country and make Trump look bad , given Trump’s decision to pull the U.S. out of an international climate accord.

At one point on Sunday morning, the discord spilled into the public over France’s claim that the G-7 leaders had authorized Macron to send a joint message to Iran on their behalf.

Trump said he never signed off on any such statement.

“No, I haven’t discussed that,” he told reporters at his meeting with Abe.

Asked if he supported Macron’s outreach to Iran, Trump said “sure” but stressed that the United States would speak for itself.

“We’ll do our own outreach,” he said. “But, you know, I can’t stop people from talking. If they want to talk, they can talk.”

A few hours later, Iran’s Foreign Ministry spokesman said the Islamic Republic’s top diplomat, Foreign Minister Mohammad Javad Zarif, had landed in the French city hosting the G-7 summit, although he won’t be negotiating nor meeting with U.S. officials while there.

Asked to confirm whether Zarif was coming to Biarritz and if he’d be meeting with him, Trump responded curtly: “No comment.”

The G-7 gathering, which is unfolding over three days at a French coastal resort at the foot of the Pyrennes, comes as Trump is facing pressure from other world leaders on a number of fronts, particularly his escalating trade war with China.

Even one of Trump’s closest allies in the group, British Prime Minster Boris Johnson, suggested a “dialing down” of the tensions with Beijing.

More: ‘Right man for the job’: Trump talks trade with Boris Johnson at G-7 summit in France

For a while on Sunday, Trump seemed to soften his tone, signaling to reporters that he regrets how the trade war with China has escalated into the two nations slapping tariffs on each other’s imported goods.

A few hours later, however, the White House backtracked and claimed that he had been “greatly misinterpreted.” White House spokeswoman Stephanie Grisham said the only thing Trump regrets is that he didn’t place higher tariffs on Chinese imports.

For the most part, the tensions between the G-7 members – which besides the U.S. includes the leaders of France, Germany, Canada, the United Kingdom, Italy and Japan – have managed to keep their disagreement behind closed doors and out of the views of television cameras.

Though Trump and Canadian Prime Minister Justin Trudeau have had a rocky relationship, there were no open signs of tension between the two leaders when they sat down for a meeting on Sunday.

In brief remarks to reporters, Trump and Trudeau both focused on a new trade agreement the two countries struck last year with Mexico.

“We have a deal that we were able to negotiate that’s good for our workers, good for our citizens, good for the middle class,” Trudeau said. “And that’s the kind of thing that we need to see more of around the world.”

Trump’s public interactions with Macron also have appeared cordial, even warm.

Trump described an impromptu luncheon with the French leader on Saturday as “the best hour and a half I’ve ever spent with him.”

Later that night, Trump and Macron patted each other on the shoulder several times as they stood outside a mid-19th century lighthouse with views of the French coast and posed for photos with their wives before the summit’s opening night dinner.

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President Donald Trump and Melania Trump arrive at the airport in Biarritz, France for the G7 summit.
WOCHIT

Early Sunday morning, Trump took to Twitter and accused the media of trying to stir up trouble among G-7 leaders.

“Before I arrived in France, the Fake and Disgusting News was saying that relations with the 6 others countries in the G-7 are very tense, and that the two days of meetings will be a disaster,” he wrote.

But, “we are having very good meetings, the Leaders are getting along very well, and our Country, economically, is doing great – the talk of the world!” he said.

A few hours later, he again slammed the press for what he said was “inaccurate reporting” of tensions during the G-7 leaders’ opening dinner.

“We had a really good dinner last night,” Trump insisted. “You can write whatever you want to write. But it was false reporting.”

Yet despite Trump’s claim that all is well, the summit is expected to end on Monday without a formal agreement from the G7 leaders – the first time that has happened in the group’s 44-year history.

Trump refused to sign the joint agreement at last year’s summit in Canada and then attacked Canadian Prime Minister over trade.

Given the group’s differences on issues such as climate change, Macron said such an agreement would be pointless.

More: At G7, EU warns it will respond ‘in kind’ if Trump puts tariff on French wine

Contributing: John Fritze

Source Article from https://www.usatoday.com/story/news/politics/2019/08/25/trump-g-7-president-denies-behind-scenes-discord-summit/2114533001/

Former Illinois Congressman Joe Walsh announced Sunday morning that he is running for president as a Republican, challenging President Trump in the GOP primary race, while delivering a blistering attack on the president’s character and qualifications.

Walsh blasted the president for his social media habits and general behavior.

NEWEST ANTI-TRUMP REPUBLICAN JOE WALSH TRIES TO SHED HISTORY OF INCENDIARY REMARKS

“I’m running because he’s unfit; somebody needs to step up and there needs to be an alternative,” Walsh said. “The country is sick of this guy’s tantrum — he’s a child.”

At the same time, Walsh recognized that he himself is guilty of the same behavior as the president, and even played a part in the division in Washington that led to Trump’s election.

“I helped create Trump,” the Tea Party favorite told ABC News‘ George Stephanopoulos in an interview that aired Sunday morning. “I feel responsible for that.”

Walsh claimed that Trump was “tweeting us into a recession” and warned that “he’ll tweet us into war.”

Stephanopoulos called out Walsh for making outlandish statements of his own, including calling former President Barack Obama a Muslim and an enemy. Walsh said Trump “made me reflect on some of the things I’ve said in the past,” acknowledging that at times he “went beyond the policies and idea” and “said some ugly things about President Obama that I regret.”

When asked if he truly believes what he said about Obama, Walsh responded, “God no, and I have apologized for that.”

During the same interview, however, Walsh made a series of personal attacks against President Trump.

“He’s nuts, he’s erratic, he’s cruel, he stokes bigotry,” Walsh said. He accused Trump of not caring about America, saying, “the only thing he cares about is Trump.”

Walsh also cited Trump’s 2016 campaign promise to build a wall along the southern border and to have Mexico pay for it, which has not happened.

“He’s incompetent. He has no freakin’ clue what he’s doing,” Walsh said.

The Trump campaign had far fewer words in response to Walsh’s announcement.

“Whatever,” campaign communications director Tim Murtaugh said to ABC.

CLICK HERE TO GET THE FOX NEWS APP

Walsh, who served one term in Congress, acknowledged that he has very little chance of defeating the president in the primaries, but said he wants to promote a different direction for the Republican Party. Earlier in August, Walsh published a New York Times op-ed about the need for Trump to face a primary challenge. He said the positive response to the piece inspired his decision to run.

Former Massachusetts Governor Bill Weld has previously announced that he is running against Trump in the primaries.

Source Article from https://www.foxnews.com/politics/joe-walsh-announces-trump-primary-challenge-im-in

Iranian Foreign Minister Mohammad Javad Zarif made a surprise visit to the city hosting the Group of Seven summit Sunday, a move that caught President Trump off-guard and added another element of tension to the meeting of world economic leaders.

Zarif’s arrival in Biarritz appeared to be a covert initiative by French President Emmanuel Macron, a senior European official said, and other leaders were not informed ahead of time. There was no immediate plan for the Iranian foreign minister to meet anyone other than French officials, officials said.

 President Trump, whose antics have often left other world leaders searching for words, had little to say when asked about the unexpected guest.

“No comment,” Trump told reporters.

Zarif came to Biarritz on the invitation of his French counterpart, Jean-Yves Le Drian, Iranian Foreign Ministry spokesman Abbas Mousavi wrote on Twitter. The aim of the visit was to “continue discussions about recent initiatives between the presidents of Iran and France,” Mousavi said. He said there would be no meetings or negotiations with the U.S. delegation during the trip.

Zarif’s only confirmed meeting in Biarritz was with Le Drian, a French diplomat said, speaking under ground rules of anonymity.

White House officials have complained for weeks that Macron was trying to forcefully broker talks between the Trump administration and Iran, which the U.S. president has branded a “number one terrorist nation.”

Trump pulled the United States from a landmark nuclear deal between Iran and world powers in May 2018. The deal, negotiated by the Obama administration, restricted Iran’s nuclear capabilities in exchange for the easing of sanctions.

French officials have said Trump’s “maximum pressure” approach against Iran is doomed to fail. They have sought to persuade the White House to change course and accept a new deal with the Iranians. 

Trump’s pressure campaign has involved a mix of sanctions and public threats aimed at crippling Iran’s economy — and, recently, new sanctions and travel restrictions on Zarif.

The foreign minister’s presence in Biarritz — at the invitation of the French president during a summit of world leaders who know Zarif well — was a reminder of how isolated the Trump administration has become in its approach to Iran.

Even as Iranian forces have stepped up their aggression by seizing several tankers in the Strait of Hormuz, European leaders have sought to maintain the 2015 nuclear deal without the United States. Zarif’s visit to the G-7 site appeared to be an unconventional gambit aimed at breaking the logjam.

Previous discussions on Iran during the summit have shown little progress, as leaders could not agree publicly about even the terms of their talks.

Trump claimed Sunday to have not discussed a joint approach to Iran. French officials insisted an agreement had been reached among leaders Saturday night.

“I haven’t discussed that,” Trump said. “We will do our own outreach, but I can’t stop people from talking. If they want to talk, they can talk.” 

Administration officials have criticized the French for talking to Iran.

When leaders discussed Iran over dinner on Saturday, they agreed broadly that Iran should not be allowed to develop nuclear weapons and that they should work to de-escalate the ongoing crisis, according to officials who were briefed on the closed-door talks.

Macron pushed Trump to allow Iran to export a limited amount of oil — a nonstarter with the White House.

Zarif’s sudden arrival in Biarritz took at least some of the other delegations by surprise, even those aligned with France in its commitment to preserve the nuclear deal, according to a senior European official.

The official said it was not immediately clear why Zarif had been invited. The official called it “a flashy move.”

Because the Iranian diplomat was parachuting into an already packed weekend, it was unclear what his presence would accomplish, unless it was a French effort to jump-start U.S.-Iran talks by putting Trump and Zarif in the same small city.

But even if a meeting with Trump were to take place, the official was skeptical that anything would come of it. Trump would need to offer some carrots to encourage Iran to come back into compliance with the deal. He has shown little inclination to do so, the official said.

Also, since Europe’s strength on the Iran deal has been its unity, the official said, the unilateral move to call in Zarif may prove counterproductive.

Zarif was in Paris on Friday for discussions with Macron and other French officials. He had been scheduled to travel in Asia this weekend, according to his Twitter account. It was unclear how long he planned to stay in the French resort town.

His arrival in Biarritz appeared to take the State Department by surprise, as well. A spokeswoman, noting the agency’s absence from the summit, referred questions to the White House.

Trump is traveling in Biarritz with national security adviser John Bolton, one of the administration’s fiercest critics of Iran.

Secretary of State Mike Pompeo has complained that Zarif has used media appearances to spread Iranian “propaganda” against the United States.

Zarif criticized the Trump administration after it pulled out of the nuclear deal, and again after the administration announced sanctions against him last month.

“The US’ reason for designating me is that I am Iran’s ‘primary spokesperson around the world’,” he tweeted. “Is the truth really that painful? It has no effect on me or my family, as I have no property or interests outside of Iran. Thank you for considering me such a huge threat to your agenda.”

Zarif has been meeting with other world leaders, including Macron, about the nuclear issue. He has tweeted pictures of himself shaking hands with top officials and sought to contrast his embrace of diplomacy with the Trump administration’s unilateral pressure campaign. 

“Despite US efforts to destroy diplomacy, met with French President @EmmanuelMacron and @JY_LeDriane in Paris today,” the Iranian foreign minister tweeted Friday. “Interviewed with Euronews, AFP, & France24. Multilateralism must be preserved. Next stops Beijing, Tokyo & KL after a day in Tehran.”

He did not mention that he would be stopping in Biarritz.

 Treasury Secretary Steven Mnuchin indicated that Trump might be willing to meet with Zarif. 

“The president has said before that to the extent that Iran wants to sit down and negotiate we would not set preconditions to those negotiations,” he told reporters in France on Sunday.

He declined to comment further.

Josh Dawsey and Damian Paletta in Biarritz and Carol Morello in Washington contributed to this report. 

Source Article from https://www.washingtonpost.com/politics/irans-javad-zarif-makes-surprise-trip-to-g-7-catching-trump-off-guard/2019/08/25/e339df7c-c742-11e9-8067-196d9f17af68_story.html

LONDON (Reuters) – British Prime Minister Boris Johnson has asked his attorney general whether parliament can be shut down for five weeks from Sept. 9 in what appears to be an attempt to stop lawmakers forcing a further extension to Brexit, The Observer reported.

An email from senior government advisers to an adviser in Johnson’s office written in the last ten days says the prime minister recently requested guidance on the legality of such a move, known as proroguing, the newspaper said.

The legal guidance given in the email is that shutting parliament may well be possible, unless the courts agree to demands by anti-Brexit campaigners to block such a move, the Observer reported.

“The claim that the government is considering proroguing parliament in September in order to stop MPs debating Brexit is entirely false,” a government spokesman said.

Reporting By Andrew MacAskill; Editing by Daniel Wallis

Source Article from https://www.reuters.com/article/us-britain-eu-parliament/uk-pm-johnson-seeks-legal-advice-on-five-week-parliament-closure-the-observer-idUSKCN1VE0SF

A sheriff’s deputy in Los Angeles County, California, admitted to investigators that he lied about being shot by a sniper while walking to his car Wednesday.

Angel Reinosa, 21, had said he was shot in the shoulder of his ballistic vest, which led to a massive manhunt that included a helicopter with police snipers.

“Reinosa admitted he was not shot at as he previously claimed,” L.A. County Homicide Capt. Kent Wegener said late on Saturday. “He also told investigators he had caused the holes in his uniform by cutting it. There was no sniper, no shots fired, and no gunshot injury sustained to his shoulder.”

Reinosa confessed to fabricating the story about being shot after several inconsistencies were found in the course of the investigation. Officials say the young sheriff’s deputy did not provide a reason for making up the shooting.

“Much of his statement was self-serving,” Wegener said. “[It] didn’t make a whole lot of sense … There were several things that were curious,” the Homicide Bureau captain also said. “There was no ballistic evidence in the parking lot at all. No bullet was recovered … There were many things that didn’t add up.”

A criminal investigation into the matter has also been launched and Reinosa has been let go from the department, according to the L.A. County Sheriff’s Department Assistant Sheriff Robin Limon, who also said the department was “incredibly disappointed” in Reinosa’s behavior.

Source Article from https://www.washingtonexaminer.com/news/there-was-no-sniper-california-sheriffs-deputy-made-up-story-about-shooting

President TrumpDonald John TrumpGraham: America must ‘accept the pain that comes in standing up to China’ Weld ‘thrilled’ more Republicans are challenging Trump New data challenges Trump’s economic narrative MORE said Sunday that the U.S. and Japan have agreed “in principle” to a bilateral trade deal involving agriculture and digital products.

Trump told reporters during a meeting with Japanese Prime Minister Shinzo Abe on the sidelines of the Group of Seven summit that he expected the two countries to officially sign the pact during the United Nations General Assembly meeting in September.

“We have been working on a deal with Japan for a long time,” Trump said. “It involves agriculture. It involves e-commerce. It involves many things. We’ve agreed in principle.”

“We’ve agreed to every point, and now we’re papering it and we’ll be signing it at a formal ceremony,” Trump said, adding that the Japanese will be buying significant amounts of U.S. corn.

The deal focuses on agriculture, industrial tariffs and digital trade, U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerOn The Money: Economy adds 164K jobs in July | Trump signs two-year budget deal, but border showdown looms | US, EU strike deal on beef exports Chinese, US negotiators fine-tuning details of trade agreement: report The Trump economy keeps roaring ahead MORE said. It will open up markets to an additional $7 billion in agricultural products, he said, calling it “very good news” for American farmers and ranchers.

Abe said the two sides had agreed on the “core principles” but that some specific language in the deal still needs to be worked out. He said Japan has a need for corn imports because of pest problems with some Japanese-grown products.

“We still have some work that needs to be done … but we would like to make sure that our teams would accelerate the remaining work so as to achieve the goal of signing this agreement on the margins of the UN General Assembly in September,” Abe said through an interpreter.

The two sides have been in negotiations for months brokering a bilateral trade deal. The Trump administration has been seeking access to the Japanese agricultural sector, and the president had threatened on multiple occasions to impose tariffs on Japanese automobiles if they were unable to come to an agreement.

Abe has sought to build a strong personal relationship with the mercurial Trump, visiting him at his Mar-a-Lago estate in Florida and inviting the president and first lady for a state visit earlier this year.

Trump earlier Sunday met with Abe in a planned meeting, where the president teased the possibility of a trade deal emerging by the end of the discussion. The two leaders met again a second time to announce the tentative deal.

Once finalized, the Japan deal would mark a win for Trump, who has spent much of his presidency promising to secure stronger trade agreements for the U.S. But he has struggled to get Congress to take up his renegotiated version of the North American Free Trade Agreement, and he has ratcheted up the trade war with China with few signs of a resolution in sight.

The president on Sunday signaled he was having second thoughts about raising tariffs on Chinese products in the latest escalation with Beijing, but the White House issued a statement hours later asserting Trump meant his regret was not increasing tariffs more.

Updated at 9:46 a.m.

Source Article from https://thehill.com/homenews/administration/458722-trump-says-us-japan-have-agreed-in-principle-to-bilateral-trade-deal

Chat with us in Facebook Messenger. Find out what’s happening in the world as it unfolds.

Source Article from https://www.cnn.com/2019/08/25/us/tropical-storm-dorian-wxc/index.html

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President Trump’s ‘America First’ approach has relied on slapping tariffs on countries, such as China and Mexico, which have led to current trade wars. What is a tariff and how do they work? We explain.
Just the FAQs, USA TODAY

BIARRITZ, France — President Donald Trump signaled Sunday that he may be having regrets over his trade war with China, but the White House backtracked a few hours later and said he had been misunderstood.

At a breakfast meeting with British Prime Minister Boris Johnson, Trump said “yeah” when a reporter asked if he was having second thoughts about how the trade conflict with China has escalated.

“I have second thoughts about everything,” he said.

White House press secretary Stephanie Grisham later issued a statement seeking to clarify Trump’s comments and suggesting the only thing he regrets is not placing higher tariffs on Chinese goods.

“This morning in the (meeting) with the UK, the president was asked if he had ‘any second thought on escalating the trade war with China,'” Grisham said in a statement. “His answer has been greatly misinterpreted. President Trump responded in the affirmative — because he regrets not raising the tariffs higher.”

A transcript of Trump’s exchange with reporters shows that he was asked three times whether he had any regrets on the trade tensions with China. Each time, he indicated that he did.

Trump’s remarks, on the second day of the annual G-7 gathering of leaders of the world’s most industrialized countries, came just days after he ramped up the trade conflict by raising tariffs on $550 billion in Chinese goods.

Trump said Friday he would raise from 25% to 30% U.S. tariffs on $250 billion in Chinese products and would increase from 10% to 15% new tariffs on a remaining $300 billion in goods — some of which are set to take effect next month. The announcement came shortly after China said it would levy its own tariffs on U.S. imports, prompting a market sell-off.

Though Trump’s remarks on Sunday hinted at regrets, he said the escalating trade war with China is necessary because of what he considers Beijing’s unfair trade practices.

“What (China) has done is outrageous,” he said.

Trump said he has “no plans right now” to follow through on his threat to use a national security law to declare an emergency and force U.S. companies to leave China. But he insisted he has the authority to do so.

“If I want, I could declare a national emergency,” he said. But, “actually, we’re getting along very well with China right now. … So we’ll see what happens.”

Mon dieu!: Trump arrives at G7 summit in France amid tensions, threat of tariffs on French wines

Other G-7 leaders have raised concerns about the trade conflict between China and the U.S.

In what could be read as an effort to put some distance between the U.S. and the U.K. posture on global trade, Johnson told reporters on Saturday that he was concerned about the escalating trade war between the U.S. and China and suggested a “dialing down” of tensions.        

“Just to register the faint, sheep-like note of our view on the trade war, we’re in favor of trade peace on the whole, and dialing it down if we can,” Johnson said at Sunday’s breakfast meeting with Trump.

The two leaders then parried gently on trade.

“On the whole, the UK has profited massively in the last 200 years from free trade, and that’s what we want to see,” Johnson said. “And so we’re keen to see —we don’t like tariffs on the whole.”

“How about the last three years?” Trump interjected, suggesting the approach the west has taken on trade has not been as prosperous recently.

“Don’t talk about the last three,” Trump joked. “Two-hundred, I agree with you.”

U.S.-China trade war: New, higher tariffs could raise the prices of these Chinese-made products

Related: At G7, EU warns it will respond ‘in kind’ if Trump puts tariff on French wine

Source Article from https://www.usatoday.com/story/news/politics/2019/08/25/president-donald-trump-trade-war-china-regrets-g-7-summit/2107246001/

● The White House said President Trump’s earlier suggestion that he regretted escalating the trade war with China was “misintrepeted” and that what he regrets is not raising tariffs higher.

●Trump said North Korea has not violated any rules with recent missile tests, during meeting with Japanese Prime Minister Abe, who said the tests clearly violate U.N. Security Council resolutions.

●Trump said it is “certainly possible” he will invite Russian President Vladimir Putin to next year’s G-7 meeting in the United States, a move that would almost certainly be opposed by allies.

President Trump conceded regret about his escalating trade war with China Sunday morning before reversing course in the afternoon and saying he only wished he’d raised the tariffs higher.

It was a head spinning about-face after the president showed rare second thoughts on a key issue, even as White House officials said his comments had been “misinterpreted.”

“The president was asked if he had ‘any second thought on escalating the trade war with China.’ His answer has been greatly misinterpreted. President Trump responded in the affirmative — because he regrets not raising the tariffs higher,” press secretary Stephanie Grisham said.

Trump, who is acutely attuned to media coverage and public perception of his presidency, makes a usual practice of not ever apologizing or admitting that he was wrong — and prides being seen as “strong” above all, according to current and former administration officials. 

During a morning breakfast with British Prime Minister Boris Johnson, a reporter asked Trump if he had any “second thoughts” regarding his escalating trade war with China. Trump responded “yeah, sure. Why not.”

“Might as well,” he said. “Might as well. I have second thoughts about everything.”

Trump then claimed talks were going well with China and that he planned to back away from some of his recent threats, such as seeking to force companies to leave China. 

The comments drew immediate international attention because Trump had been so defiant with his unilateral decision to engage in a trade war with China.

The confusing change reflects Trump’s wildly shifting approach to China, which has had a major impact on the U.S. economy and could impact his reelection chances next year. But it was also part of a stark counter narrative Trump offered during the summit, as he presented a different version of private talks than virtually every one else attending. And those differences spilled into public view multiple times at the picturesque seaside summit. 

For example, Trump claimed to have not discussed a joint approach to Iran, even though French officials insisted an agreement had been reached between each of the leaders Saturday night. “I haven’t discussed that,” Trump said. “We will do our own outreach, but I can’t stop people from talking. If they want to talk they can talk.” Trump administration officials have previously criticized the French for talking to Iran.

He quipped to reporters that North Korea hadn’t violated any rules by launching missiles, only to be quickly corrected by Japanese leader Shinzo Abe.

“We’re in the world of missiles folks, whether you like it or not,” Trump said, adding he understands how Abe “feels that way.”

 “I’m not happy about it,” he said of North Korea’s launches, but continued to praise Kim Jong Un. 

He suggested that multiple foreign leaders had told him they agreed that Russia should be readmitted to the G-7, when Europeans have been adamant that Russia should remain ostracized and argued with Trump about it at a dinner Saturday evening. Trump declined to specify who had agreed with him. “I could but I don’t believe that’s necessary,” he said.

And he said his lunch Saturday with French President Emmanuel Macron was “the best hour and half I’ve ever spent with him.” But while they were having lunch by the sea, Trump administration officials were criticizing Macron and France to U.S. reporters, saying there was too much on “niche” issues like climate change and African development instead of on the global economy.

His shifting views on China were striking, though it is unclear what the vacillations will signify. In recent days, China has slapped new tariffs on U.S. goods, and Trump responded by jacking up tariff rates on more than $500 billion in Chinese products. These actions have rattled investors and stoked fears that a prolonged standoff could lead to a global recession.

Despite his brief expressions of regret earlier Sunday, Trump showed no willingness to reverse the tariffs. “I think they respect the trade war,” he said about his G-7 allies, who have urged against their escalation. “It has to happen.”

“I think they want to make a deal much more than I do,” Trump said before a breakfast with British Prime Minister Boris Johnson. Trump claimed negotiations with China were ongoing, but a few days ago he suggested that Chinese leader Xi Jinping was an “enemy” of the United States.

Still, his tactics with China appear to be shifting. On Friday, Trump had said “I hereby order” U.S. companies to prepare to stop doing business with China, a shocking statement that drew rebuke from a range of U.S. firms. When he was pressed on whether he actually had the power to make such a directive, Trump cited a 1977 law that — during an emergency — gives the president broad latitude to intervene.

In a reversal, Trump on Sunday said he had no plans to invoke this law, making it appear that he is also backing down from his push for companies to withdraw from China.

“I have no plans right now,” Trump said. “Actually we’re getting along very well with China right now.”

Trump did appear sensitive to the growing international anxiety about his showdown with China. He told reporters Sunday morning that so far no foreign leader had challenged him on his approach. Second later, Johnson did. 

“Just to register the faint, sheeplike note of our view on the trade war,” the British prime minister said, “we’re in favor of trade peace on the whole. We think that on the whole the U.K. has profited massively in the last 200 years from free trade.”

Other world leaders, including E.U. President Donald Tusk, have repeatedly urged a de-escalation of the trade tiffs.

Britain has long been a free trade superpower, and British diplomats complain as bitterly as their French and German peers about Trump’s tactics on China. But Johnson, who is mired in negotiations to pull his country out of the European Union, desperately wants a trade deal with Trump to bolster his own prospects at home.

It was a rare moment of a foreign leader challenging Trump’s tactics while sitting across the table from the U.S. president, delivered in the gentlest of forms.

At their first joint meeting — a dinner of regional Basque specialties — leaders had “constructive discussions” about Amazonian deforestation and Iran, according to a senior European official. But the conversation turned “rough and tumble” when it started on Trump’s desire to bring Russia back into the group next year.

Russia was kicked out in 2014 after it invaded Ukraine and annexed Crimea.

The other G-7 leaders have been deeply opposed to Trump’s effort to bring Russian President Vladimir Putin back to their table, saying it would reward bad behavior and give a green light to the annexation and ongoing war in eastern Ukraine.

Over dinner, Trump spent some time bashing former president Barack Obama about the decision to kick out Russia, repeating his public statements that Putin had only been kicked out because he outsmarted Obama, according to the official, who spoke on the condition of anonymity to discuss the private meeting.

In a clear sign that their differences were not resolved during the dinner, Trump told reporters on Sunday that it was “certainly possible” that he would invite Putin to the G-7 next year. The G-7 in 2020 is set to be held in the United States, giving Trump more power to decide who is invited.

Aides say Trump was hoping to refocus discussions on the economy and could even skip some of the sessions Macron has planned.

Trump has at times boasted that the U.S. economy is performing much better than other countries, and he has said there is a global recession that is harming most of the major nations except for the United States. Other leaders have countered that Trump’s trade war is causing global supply chains to seize up, and there is evidence the U.S. economy is slowing much more quickly than anticipated. 

Just in the past week, Trump has swung dramatically in his approach to the economy, saying he is contemplating tax cuts, then saying tax cuts aren’t needed, and then on Saturday saying he planned to pursue tax cuts in 2021. 

Trump’s attempt to create a sort of alternate version of the summit came as other world leaders, in public statements, described the global dynamic as being in a state of crisis. 

The G-7 countries include the United States, France, Britain, Germany, Italy, Japan, and Canada. The gatherings are typically capped off with a joint statement, known as a communique, that is meant to reflect the leaders’ shared values and goals.

Early Sunday morning, Trump remarked on his initial meetings at the summit by saying “Progress being made!” He spent considerable time attacking the news media — one of his most frequent activities whether he is home or abroad. 

“Such False and Inaccurate reporting thus far on the G-7. The Fake News knows this but they can’t help themselves!” Trump wrote.

It wasn’t immediately clear what his concerns were, and White House officials did not respond to a request for comment. 

Source Article from https://www.washingtonpost.com/politics/trump-for-first-time-signals-regret-china-trade-war-has-escalated/2019/08/25/c942ea78-c67a-11e9-b5e4-54aa56d5b7ce_story.html

Media captionBoris Johnson: “In the last few days there’s been a sort of dawning realisation in Brussels and other European capitals”

Boris Johnson has said the chances of a Brexit deal are “touch and go” – having previously said the odds of a no-deal Brexit were “a million to one”.

In a BBC interview at the G7 summit in France, he said it “all depends on our EU friends and partners”.

When pressed on the chances, he said: “I think it’s going to be touch and go. But the important thing is to get ready to come out without a deal.”

Mr Johnson has repeatedly said the UK will leave the EU on 31 October.

Asked if people would still be able to get their medicine if there was a no-deal Brexit, the prime minister said: “That is certainly a guarantee that we can make.”

But he added: “I do not want at this stage to say there won’t be unforeseen difficulties.”

Mr Johnson has previously said the UK must leave on 31 October “deal or no deal”, but that the chances of a no-deal Brexit happening are a “million to one”.

Speaking at the G7 summit on Sunday, he said: “I think in the last few days there has been a dawning realisation in Brussels and other European capitals what the shape of the problem is for the UK.”

He said he was an “optimist” and thought the EU would understand there is an “opportunity to do a deal”.

The PM also said if there is no deal, the UK would keep a “very substantial” sum of the £39bn Theresa May had agreed to pay the EU in her withdrawal agreement.

The G7 summit – a get-together of most of the leaders of the world’s largest economies – comes with just over two months until the UK is scheduled to leave the EU at the end of October.

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Reuters

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Mr Johnson and other world leaders have gathered for the G7 summit in Biarritz, France

Mrs May struck a withdrawal agreement with the EU – the so-called “divorce deal” – but British MPs rejected the deal three times.

Mr Johnson wants to remove the Irish backstop from the deal but the EU has consistently ruled this out, saying it will not reopen negotiations over the agreement.

If implemented, the backstop – a last resort should the UK and the EU not agree a trade deal after Brexit – would see Northern Ireland staying aligned to some rules of the EU single market.

It would also see the UK stay in a single customs territory with the EU, and align with current and future EU rules on competition and state aid.

This week German Chancellor Angela Merkel suggested there could be an alternative to the backstop but the onus was on the UK to find it.

But the next day French President Emmanuel Macron said the backstop was “indispensable” to preserving political stability and the single market.

On Sunday, the PM met President Donald Trump to discuss a trade deal between the UK and the US.

Mr Johnson said the US’s aim to strike a deal within a year was “going to be tight”, adding: “These [Americans] are tough guys.”

Meanwhile, former chancellor Philip Hammond has written to the PM about the leaked Operation Yellowhammer documents on preparations for a no-deal Brexit.

He said it was now apparent the document was dated August 2019, and therefore could not have been leaked by a minister from Mrs May’s government.

Source Article from https://www.bbc.com/news/49465298