Tariff Time for China

Tariff Time for China

It sure is hard to keep pace with Donald Trump. He proved it again yesterday by replacing National Security Advisor HR McMaster with the hawkish John Bolton.


A few quick thoughts:

  1. In 2005, to sidestep a vote in the Senate, President George W. Bush used a recess appointment to make John Bolton his ambassador to the United Nations, because he didn’t believe a Republican Senate would approve him.
  2. Three years ago, Bolton wrote an op-ed in the New York Times under the headline “To Stop Iran’s Bomb, Bomb Iran.
  3. Three weeks ago, Bolton wrote an op-ed for The Wall Street Journal under the headline “The Legal Case for Striking North Korea First.”
  4. Trump is a punch thrower. He will now be taking national security advice from a punch thrower.

More to say on that in future editions. Today we want to focus on yesterday’s big trade news.

Trump wasn’t kidding when he pledged to get tough with the world’s largest emerging economy. Senior advisors have reportedly recommended US tariffs on Chinese exports of about $30 billion, but Trump decided to push that up to $60 billion. More than 1,000 products could be affected. We’re also likely to see new restrictions on Chinese investment in the US.

Another few thoughts:

  • China will move quickly to retaliate. For a glimpse of the anxiety this will cause US farmers, check out this piece from the Des Moines Register, which warns that China’s response will directly target states that Trump considers part of his political base.
  • China may also target the US auto sector for the same reason. (Michigan might be the most closely watched state on the electoral map as 2020 approaches.)
  • This gets to a point we’ve made before: Trump believes the Chinese economy is more vulnerable than the US economy, while China’s Xi Jinping believes he is stronger politically than Trump. They’re both right, and this confidence on both sides creates a risk of escalation that neither side wants.
  • To try to avoid that escalation, China will probably signal that it means to match Trump’s actions without exceeding them. We’ll hear the word “proportional” a lot in coming days.

Building on its previous commitment, Walmart is investing an additional $350 billion in products made, grown and assembled in America - supporting more than 750,000 new jobs by 2030. This pledge will aim to avoid more than 100M metric tons of CO2 emissions, advance the growth of U.S. based suppliers, and provide opportunities for more than 9,000 entrepreneurs to become Walmart suppliers and sellers through Walmart's annual Open Call.

"The people are stronger," pro-democracy demonstrators chanted as news broke that the Sudanese military had staged a coup Monday, overthrowing the joint civilian-military government and dashing hopes of democracy in the war-torn country.

The backstory. In 2019, Omar al-Bashir – a despot who ruled Sudan with an iron fist for 30 years – was deposed after a months-long popular uprising.

Al-Bashir was a bad guy: he cozied up to terrorists like Osama bin Laden and dropped barrel bombs on his own people. He also embezzled truck loads of money from oil production while millions of Sudanese went hungry, and oversaw a genocide in the Darfur region that left 300,000 people dead and displaced 1.6 million.

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Sort of, but governments haven't lost all control yet. On the one hand, The Atlantic CEO Nicholas Thompson says that governments can still push tech companies for transparency in their algorithms, while Microsoft has partnered with the US government to together fight hackers "so the company is seen as a champion for freedom and democracy." On the other, over time Thompson expects tech firms in the US and China to gradually become more powerful as the state becomes less powerful toward them. Watch his interview with Ian Bremmer on the latest episode of GZERO World.

Watch this episode of GZERO World with Ian Bremmer: Big Tech: Global sovereignty, unintended consequences

As COP26 nears, the need for real climate action has never been more urgent. There are reasons for hope, but many scientists believe the ambitious goal of net zero emissions by 2050 is unattainable without immediate and significant change. Governments, financial institutions, and private sector companies alike have all recognized the need for a multistakeholder approach to solving this crisis of a lifetime.

Watch "Climate Crisis: Is net zero really possible?" a one-hour virtual livestream, hosted by GZERO Media and Microsoft as part of the Global Stage series, to hear scientists, corporate leaders and policymakers debate this question and offer critical perspectives on the way forward. Live on Tuesday, November 2nd at 11am ET, we'll break down what "net zero" means, take stock of where the world is on the path to carbon neutrality, and discuss critical steps needed to make real progress.

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Ian Bremmer's Quick Take:

Hey everybody and happy Monday. Back in the office, getting a little cool. So I've got my sweater going on. It's the first time I've had a sweater on. What do you do with that? Discussing fashion, as I talk to you about what is on my mind this week?

And what's on my mind this week, Facebook. Facebook is on my mind. It's a tough week for Facebook. There are all sorts of whistleblowers out there. There's testimony going on. There's calls for regulation. Everybody seems unhappy with them. Indeed, you even got the government relations types, Nick Clegg, who I've known for a long time back when he was a policymaker in the UK saying that the headlines are going to be rough, but we're are going to get through it. But I will say, first of all, I'm kind of skeptical that any of this goes anywhere in terms of impact on how Facebook actually operates.

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Turkey's Erdogan ups the ante with the West: Turkey's President Recep Tayyip Erdogan has declared diplomats from 10 Western countries "persona non-grata" after the group — which includes the US, France, and Germany — called on Ankara to release Osman Kavala, a Parisian-born Turkish businessman who's been held in jail since 2017 but hasn't been charged with a crime. Erdogan says that Kavala was involved in an attempted coup against the government in 2016. This latest move is a sign of Turkey's authoritarian drift in recent years, which has seen Erdogan's government increasingly crack down on opposition members as well as journalists. It also reflects Turkey's increasingly fraught relations with the West: things got particularly bad between Washington and Ankara after Turkey purchased missile defense systems from the Russians in 2019. The Council of Europe (the continent's leading human rights organization) had previously warned that Ankara has until November to release Kavala or it would impose "infringements," though it's unclear what those would be.

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ASEAN gets tough(ish) with Myanmar: The leaders of the 10-member Association of Southeast Asian Nations meet Tuesday for their annual summit with one notable absence: the head of Myanmar's military junta. It's a rare snub from ASEAN, a regional bloc that's gotten a lot of heat in the past for giving tyrants a free pass. The junta says ASEAN violated its traditional principles of deciding by consensus by disinviting its leader, and non-interference in domestic affairs for demanding the bloc's special envoy meet detained former leader Aung San Suu Kyi. For their part, the other ASEAN members have grown visibly alarmed at Myanmar's rapidly deteriorating political and economic situation since the February coup, and they're worried about the spillover effects of Myanmar becoming a failed state. More importantly, Myanmar is a big thorn in ASEAN's side as it walks a fine line between keeping warm ties with the US — which most members want cash and security from — and getting along with China, one of Myanmar's few remaining friends and viewed with suspicion by most ASEAN members over its South China Sea shenanigans.

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149: The concentration of carbon dioxide in the atmosphere reached a record-high 413.2 parts per million in 2020, 149 percent above pre-industrial levels. A new report by the UN weather agency released ahead of the COP26 climate summit found that last year's lower emissions due to COVID-related lockdowns had no impact on the overall amount of greenhouse gases causing global warming.

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