WASHINGTON — You cannot understand President Trump's so-called "trade war" without acknowledging that it's mostly about politics and not about economics. Trump has embarked on a giant marketing campaign to convince us that foreigners — their exports — are to blame for our economic problems. It's a seductive appeal to nationalism whose main defect is that it's mostly untrue.

To be fair, Trump's message has been consistent since the early days of 2016. He said he would slap our trading partners with high tariffs, and so he has. The campaign continues. Here's a recent tweet: "The U.S. has been ripped off by other countries for years on Trade, time to get smart!"

The standard anti-trade narrative is that U.S. officials have botched trade negotiations, giving too much to foreigners and getting too little for U.S. exporters. Massive trade deficits result and destroy American jobs. The employment loss is aggravated by U.S. multinationals relocating factories to developing countries with their dirt-cheap wages. Low-cost products are then exported back to the United States.

Now, all these statements contain some truth. After World War II, the United States was generous in granting trade concessions to Europe and Japan to help revive their economies. Similarly, many U.S. multinationals do locate factories abroad. These statements are not blatantly false, but their effects are hugely exaggerated.

Take the connection between trade deficits and job loss. Obviously, this occurs for individual factories. But it doesn't exist for the entire economy. Consider: From 2009 to 2017, the annual U.S. trade deficit for goods and services rose from $384 billion to $568 billion. Over the same years, the number of private U.S. payroll jobs increased by 15.5 million, and the unemployment rate fell from 9.3 percent to 4.4 percent.

If trade deficits created huge job losses, this would be impossible. The main explanation for the apparent paradox is, as I've argued for years, that the dollar is the main international currency. Foreigners and investors want dollars to conduct global trade and investment. This keeps the dollar's exchange rate high, making U.S. exports costlier and imports cheaper. The resulting trade deficit is structural; but Americans' spending for domestic products is still the main determinant of U.S. employment.

Or take the notion that U.S. multinationals move factories abroad to exploit cheap labor — say, car plants in Mexico. This clearly happens and is routinely reported by the media.

But it is not the main reason that U.S. multinationals invest abroad: 71 percent of their foreign investments occur in developed countries "where consumer tastes are similar to those in the United States," reports James Jackson of the Congressional Research Service. Europe alone accounted for 59 percent of these investments.

Presumably, it's less expensive to service these foreign markets from local factories, warehouses and offices than to export from the United States. According to Jackson's report, about 60 percent of the sales of foreign affiliates of U.S. multinationals go to local markets — say, France. (The other 40 percent go to exports to other foreign countries or to the United States.)

None of this means that we don't have serious trade problems with some of our partners, most obviously China. But the idea that trade issues lie at the core of our economic shortcomings is somewhere between wild exaggeration and sheer fiction. Trump's policies and rhetoric are meant to turn foreign countries — via their exports and trade practices — into a hateful scapegoat. It's their fault.

The cost of this misguided exercise in misinformation is, as headlines remind us, steep. It has alienated our closest historical allies (including Canada, Mexico, Japan, the United Kingdom, France and Germany) and created enough uncertainty about trade policy to jeopardize worldwide economic growth.

At its best, the imposition of these politically motivated tariffs would raise domestic prices and trigger widespread retaliation against U.S. exports. At its worst, it might result in the collapse of the post-World War II trading system and usher in an era of reconstruction that would be dominated by China as the world's biggest trading nation.</s>This time, Donald Trump says, he really means it.

The billionaire real-estate mogul — long amounting to a one-man circus sideshow in GOP presidential politics — said in an interview Wednesday that he is “more serious” than ever about pursuing a run for the White House in 2016.

In recent days, Trump said, he has hired staffers in key primary states, retained an election attorney and delayed signing on for another season as host of NBC’s “Celebrity Apprentice” because of his political projects.

“Everybody feels I’m doing this just to have fun or because it’s good for the brand,” Trump said in an interview with The Washington Post. “Well, it’s not fun. I’m not doing this for enjoyment. I’m doing this because the country is in serious trouble.”

The moves are the most significant steps yet by Trump, 68, toward a bona fide presidential bid, which he considered briefly and flamboyantly in 2011 before deciding against a run.

The looming question, however, is whether he can convince Republicans that he is more than a celebrity bomb-thrower and instead is sincere in his consideration of a campaign. Trump is slated to appear ahead of former Florida governor Jeb Bush on Friday at the Conservative Political Action Conference, an annual gathering of conservatives near Washington.

Trump in recent years has served largely as a provocateur and carnival barker on the sidelines of Republican politics, flirting with “birtherism” and making other remarks casting doubt on President Barack Obama’s credentials and love of country. GOP nominee Mitt Romney frequently shared the stage with Trump in often awkward appearances during the 2012 campaign, providing ample fodder for Democratic attack ads.

At a meeting Monday in New York with Reince Priebus, the chairman of the Republican National Committee, Trump said he was actively mulling a presidential run and acknowledged the necessity of formalizing his interest, according to people familiar with the conversation. Priebus, who will remain neutral in the 2016 primaries, took the meeting because of Trump’s status as a prominent donor to the RNC.

For the moment, Trump’s just-tapped consultants will be employed by his personal office, but they are likely to transition over to a new political group in the coming weeks. Donald McGahn, a partner at Jones Day, is counseling the businessman as he takes further steps.

Corey Lewandowski, a former director of voter registration at Americans for Prosperity, a group backed by conservative industrialists Charles and David Koch, has been asked by Trump to serve as his senior political adviser and manager for the campaign-in-waiting.

Alan Cobb, a former political adviser at Koch Industries, is another Republican who has signed on with Trump and is assisting with recruitment.

Based in New Hampshire, Lewandowski will direct Trump’s efforts in the first presidential primary and nationally if Trump jumps into the race later this year.

Lewandowski, in an interview Wednesday, said he was hired by Trump in January and has since been quietly working with him to map out a strategy for the 2016 primaries that would enable Trump to run as a political outsider with a coalition of disaffected conservatives.

“The dysfunction of Washington and politics as usual drew me away from other candidates and toward someone who’s gotten something done in the business world,” Lewandowski said. To doubters, he said, “Wait and see. Mr. Trump is going to reintroduce himself to the American public. This is going to be a real contest and no one wants to see a coronation.”

Chuck Laudner, who advised former Pennsylvania senator Rick Santorum’s 2012 victory in the Iowa presidential caucuses, will lead Trump’s expected campaign there. Laudner’s hire was first reported Tuesday by the conservative Breitbart news website.

And in South Carolina, Ed McMullen, a political operative who assisted Arizona Sen. John McCain’s previous presidential campaigns, has agreed to serve as Trump’s state chairman and political adviser. Also on board is state Rep. James Merrill.

Advising Trump on communications is Sam Nunberg, a political operative who is an associate of Roger Stone, the famed New York-based GOP opposition researcher.

Trump would face steep challenges entering a field that is almost certain to include Bush and Wisconsin Gov. Scott Walker, among a dozen others, including many conservative hopefuls who have built their own networks.

The billionaire’s entry would infuse the field with a large and colorful personality, as well as a national following and media coverage, forcing others to respond to him and his views.

Trump was in Charleston, S.C., on Sunday, for a speech at the Citadel. While he was there, he met with Sen. Tim Scott, R-S.C., a rising political player in the early primary state.

Last month, Trump was in Des Moines for a conservative summit hosted by Rep. Steve King, R-Iowa, where he made headlines by bashing both Romney and Bush. “The last thing we need is another Bush,” Trump said.

Laudner, who was also being courted by Santorum and Gov. Bobby Jindal, R-La., said he signed on after driving through the state with Trump during that visit, when he said he became convinced that Trump was not leading him on.

In March, Trump will travel to Iowa once again for an agriculture summit and to New Hampshire.

“I am more serious about this than I’ve ever been before,” Trump said in the interview. “I made the deal with Chuck and Corey and some more we’ll be announcing soon because I’m serious and I want to focus on connecting with people. I don’t need to be out there raising money.”

On the television front, Trump said he is keeping his options open and holding off on signing on for another season as host of “Celebrity Apprentice,” which NBC renewed earlier this month for a 15th season.

Nunberg said while Trump is open to doing the show, he has told NBC he cannot commit to hosting it.

Trump said his pitch is straightforward and meant to reach voters who are fed up with the political system, mixing conservative populism and a blunt message about leadership.

“People around the world are laughing at us,” he said. “Look at China, they’re killing us, taking our jobs. We have weakness in the Middle East and with ISIS. We have incompetent people running the country and I’m tired of it.”</s>WASHINGTON, June 7 (Reuters) - U.S. President Donald Trump said he planned to discuss American purchases of Japanese automobiles and other sensitive trade issues with Japanese Prime Minister Shinzo Abe during their meeting at the White House on Thursday.

Trump, at the start of the meeting with Abe, said he also would raise the U.S. trade deficit with Japan, a key American ally that was among countries hit by the metal tariffs Trump imposed this spring.

"Obviously, we buy a lot of things from Japan - in particular, automobiles. We'll have to talk about that," Trump told reporters, adding that Japan also buys a lot of military equipment from the United States.

Abe, who is in Washington to meet with Trump ahead of the U.S. president's historic summit next week with North Korean leader Kim Jong Un, praised Trump and said he also wanted to talk about investment.

Their meeting comes as Trump prepares to attend the G7 summit on Friday and Saturday in Canada, where a cool reception may await him following his tariffs on steel and aluminum that also were levied on Japan, Canada, European nations and others.

The G7 group includes Canada, the United States, Japan, Britain, Italy, France and Germany. The EU also attends. (Reporting by James Oliphant Writing by Susan Heavey Editing by Bill Trott)</s>WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday after White House talks with Japanese Prime Minister Shinzo Abe that the two leaders were working together to improve trading relations and that Abe promised new Japanese investment in the United States.

At a joint news conference, Trump said Abe told him Japan was buying “billions and billions of dollars of additional products of all kinds - military jets, airliners from Boeing, lots of farm products.”

“We’re working hard to reduce our trade imbalance which is very substantial, remove barriers to U.S. exports and to achieve a fair and mutually beneficial economic partnership,” Trump said.

Japan, a key American ally, is among a number of countries hit by metal tariffs Trump has imposed this year. The Trump administration has also threatened levies on imports of Japanese cars.

Trump has made clear he prefers a bilateral deal to reduce the U.S. trade deficit with Japan, while Abe’s government says multilateral agreements would be best.

“The United States seeks a bilateral deal with Japan that is based on the principle of fairness and reciprocity,” Trump said on Thursday.

Abe said he had a detailed and candid exchange of views with Trump and the discussions focused on North Korea.

Trump said his administration encouraged Japanese investment in new plants in the United States.

“The prime minister told me that will happen,” he said. “We want new auto plants going into Michigan and Pennsylvania and Ohio.”</s>WASHINGTON (Reuters) - U.S. President Donald Trump said on Thursday after White House talks with Japanese Prime Minister Shinzo Abe that the two leaders were working together to improve trading relations and that Abe promised new Japanese investment in the United States.

At a joint news conference, Trump said Abe told him Japan was buying “billions and billions of dollars of additional products of all kinds - military jets, airliners from Boeing, lots of farm products.”

“We’re working hard to reduce our trade imbalance which is very substantial, remove barriers to U.S. exports and to achieve a fair and mutually beneficial economic partnership,” Trump said.

Japan, a key American ally, is among a number of countries hit by metal tariffs Trump has imposed this year. The Trump administration has also threatened levies on imports of Japanese cars.

Trump has made clear he prefers a bilateral deal to reduce the U.S. trade deficit with Japan, while Abe’s government says multilateral agreements would be best.

“The United States seeks a bilateral deal with Japan that is based on the principle of fairness and reciprocity,” Trump said on Thursday.

Abe said he had a detailed and candid exchange of views with Trump and the discussions focused on North Korea.

Trump said his administration encouraged Japanese investment in new plants in the United States.

“The prime minister told me that will happen,” he said. “We want new auto plants going into Michigan and Pennsylvania and Ohio.”</s>President Donald Trump's views on foreign policy -- and, really, everything -- are surprisingly simple: He likes people who are nice to him and do things he wants and he doesn't like people who aren't nice to him and don't do things he wants.

So, his views on any given issue or foreign leader are largely informed by how that person has treated Trump in their last interaction -- and how much of what he wants that they are willing to give him.

That worldview is important to keep in mind as Trump travels to Canada to attend the G7 summit on Friday, a trip which he has already tried to wiggle out of, is cutting a day short and, if Twitter is any indication, is assuming will be a total and complete disaster.

"The European Union treats us very unfairly," Trump said as he left the White House Friday morning to head to the G7. "Canada [treats us] very unfairly."

That's the latest in a series of increasingly frustrated and angry comments coming out of the White House over the past few days, as its become more and more clear that leaders Trump thought were his friends -- French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau -- have pushed back on his demands, particularly on tariffs.</s>WASHINGTON, June 7 (Reuters) - U.S. President Donald Trump said on Thursday after White House talks with Japanese Prime Minister Shinzo Abe that the two leaders were working together to improve trading relations and that Abe promised new Japanese investment in the United States.

At a joint news conference, Trump said Abe told him Japan was buying "billions and billions of dollars of additional products of all kinds - military jets, airliners from Boeing, lots of farm products."

"We're working hard to reduce our trade imbalance which is very substantial, remove barriers to U.S. exports and to achieve a fair and mutually beneficial economic partnership," Trump said.

Japan, a key American ally, is among a number of countries hit by metal tariffs Trump has imposed this year. The Trump administration has also threatened levies on imports of Japanese cars.

Trump has made clear he prefers a bilateral deal to reduce the U.S. trade deficit with Japan, while Abe's government says multilateral agreements would be best.

"The United States seeks a bilateral deal with Japan that is based on the principle of fairness and reciprocity," Trump said on Thursday.

Abe said he had a detailed and candid exchange of views with Trump and the discussions focused on North Korea.

Trump said his administration encouraged Japanese investment in new plants in the United States.

"The prime minister told me that will happen," he said. "We want new auto plants going into Michigan and Pennsylvania and Ohio." (Reporting by James Oliphant; Writing by Mohammad Zargham Editing by James Dalgleish)</s>WASHINGTON (Reuters) - U.S. President Donald Trump said he planned to discuss American purchases of Japanese automobiles and other sensitive trade issues with Japanese Prime Minister Shinzo Abe during their meeting at the White House on Thursday.

Trump, at the start of the meeting with Abe, said he also would raise the U.S. trade deficit with Japan, a key American ally that was among countries hit by the metal tariffs Trump imposed this spring.

"Obviously, we buy a lot of things from Japan - in particular, automobiles. We'll have to talk about that," Trump told reporters, adding that Japan also buys a lot of military equipment from the United States.

Abe, who is in Washington to meet with Trump ahead of the U.S. president's historic summit next week with North Korean leader Kim Jong Un, praised Trump and said he also wanted to talk about investment.

Their meeting comes as Trump prepares to attend the G7 summit on Friday and Saturday in Canada, where a cool reception may await him following his tariffs on steel and aluminum that also were levied on Japan, Canada, European nations and others.

The G7 group includes Canada, the United States, Japan, Britain, Italy, France and Germany. The EU also attends.

This story has not been edited by Firstpost staff and is generated by auto-feed.</s>WASHINGTON (Reuters) - U.S. President Donald Trump said he planned to discuss American purchases of Japanese automobiles and other sensitive trade issues with Japanese Prime Minister Shinzo Abe during their meeting at the White House on Thursday.

Trump, at the start of the meeting with Abe, said he also would raise the U.S. trade deficit with Japan, a key American ally that was among countries hit by the metal tariffs Trump imposed this spring.

“Obviously, we buy a lot of things from Japan - in particular, automobiles. We’ll have to talk about that,” Trump told reporters, adding that Japan also buys a lot of military equipment from the United States.

Abe, who is in Washington to meet with Trump ahead of the U.S. president’s historic summit next week with North Korean leader Kim Jong Un, praised Trump and said he also wanted to talk about investment.

Their meeting comes as Trump prepares to attend the G7 summit on Friday and Saturday in Canada, where a cool reception may await him following his tariffs on steel and aluminum that also were levied on Japan, Canada, European nations and others.

The G7 group includes Canada, the United States, Japan, Britain, Italy, France and Germany. The EU also attends.</s>Deadspin The NFL Is Too Dumb To Realize That Donald Trump Is Never Going To Stop With This Shit | Th
Donald Trump and Shinzō Abe discuss improving trade relations between the two countries.