Trump presses U.S. companies to close China operations

[rooster59]

Trump presses U.S. companies to close China operations

By David Shepardson and Andrea Shalal

 

FILE PHOTO: U.S. President Donald Trump speaks in front of a portrait of former U.S. President Abraham Lincoln prior to presenting the Presidential Medal of Freedom to Boston Celtics legend and Basketball Hall of Famer Bob Cousy at the White House in Washington, U.S., August 22, 2019. REUTERS/Kevin Lamarque

 

WASHINGTON (Reuters) - President Donald Trump said on Friday he was ordering U.S. companies to look at ways to close their operations in China and make more of their products in the United States instead, sending U.S. markets down sharply in a new rhetorical strike at Beijing as trade tensions mounted.

 

Trump cannot legally compel U.S. companies to abandon China immediately. He gave no detail on how he might proceed with any such order, although he said he would be offering a response later on Friday to tariffs on $75 billion in American products announced by China earlier in the day.

 

The U.S. dollar rose sharply against the Chinese yuan, U.S. stock markets fell 2% and oil prices dropped on Trump's latest salvo against China. Apple Inc fell 4%, while General Motors and Intel Corp <INTC.O> each fell 3%.

 

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," Trump wrote on Twitter. "We don't need China and, frankly, would be far better off without them."

 

The U.S. Chamber of Commerce rebuffed Trump's suggestion and urged China and the United States to quickly reach a deal in the long-running trade issue. "While we share the president’s frustration, we believe that continued, constructive engagement is the right way forward," the group said.

 

Experts said tax policy changes and sanctions could be used to restrict or reduce U.S. business activity in China, but it would take years to disentangle the world’s two largest economies. The consequences of a complete break to the world economy would be severe, they said.

 

China, for instance, holds $1.11 trillion in U.S. Treasury securities.

 

For many products sold in the United States, there are few alternatives to Chinese production, and shifting production for major goods produced there could take years and be expensive.

 

American companies could also sue the U.S. government in response to any order to shutter plants in China. The most effective option for Trump would be to restrict federal procurement from any companies that do business in China.

 

That would hit companies like Boeing Co <BA.N>, Apple and General Motors <GM.N>, which are both big U.S. contractors and have large business interests in China.

 

Bill Reinsch, a former senior Commerce Department official, said Trump had limited options to force U.S. companies to quit China, and it would make little economic sense.

 

"We can’t be a market economy and do that," Reinsch said. "No one’s going to pay attention to it anyway. Companies do what they’re going to do."

 

Many U.S. companies have already begun moving some operations out of China due to rising labor costs. But others, including General Motors, have large plants there to supply the Chinese market. They would resist any pressure to close their facility there, given the size and importance of the Chinese market, Reinsch said.

 

Last week, Trump backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods.

 

The U.S. Trade Representative's Office delayed tariffs on more than half the $300 billion in Chinese-made goods telling companies the delay covered product categories where China supplies more than 75 percent of total U.S. imports.

 

(Reporting by Makini Brice, David Shepardson and Andrea Shalal; editing by Tim Ahmann, Jonathan Oatis and Chizu Nomiyama)

 

-- © Copyright Reuters 2019-08-24

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[mtls2005]

"I hereby order..." 

 

Meltdown in full view. 

 

 

[stevenl]

He is ordering US companies ...?

 

As long as MAGA hats can be cheaply made in China all is well.

[dcutman]

The updated news will start a new conversation with these companies that sold out American workers.

[Berkshire]

1 minute ago, mtls2005 said:

"I hereby order..." 

 

Meltdown in full view. 

 

 

Trump is losing what's left of his mind.  Yet, his brainwashed supporters will still try to defend the indefensible.  Does Trump understand the free market and capitalism? 

[mikebike]

So... the Fed makes a rational statement in the morning and the market stabalizes. Later the same day 45 goes off on the Fed, rants about China, and gives a royal proclamation to corporations and the market panics and drops 600 points. So much winning.

[Blue Muton]

No chance of him leading by example. 

[Blue Muton]

3 minutes ago, dcutman said:

The updated news will start a new conversation with these companies that sold out American workers.

Companies like Trump's?

[dcutman]

2 minutes ago, Berkshire said:

Does Trump understand the free market and capitalism?

Apparently he understands it much better than yourself.

[Berkshire]

1 minute ago, Blue Muton said:

No chance of him leading by example. 

Yeap, Trump is the same with hiring illegals.  "Don't do as I do, do as I say."

[soalbundy]

Let's break America again

[Berkshire]

1 minute ago, dcutman said:

5 minutes ago, Berkshire said:

Does Trump understand the free market and capitalism?

Apparently he understands it much better than yourself.

I'd ask you to explain that, but I'm sure your explanation will not make any sense.

[soalbundy]

3 minutes ago, Berkshire said:

Trump is losing what's left of his mind.  Yet, his brainwashed supporters will still try to defend the indefensible.  Does Trump understand the free market and capitalism? 

At least he is consistently stupid, that at least can be counted on

[mtls2005]

6 minutes ago, mikebike said:

So... the Fed makes a rational statement in the morning and the market stabalizes. Later the same day 45 goes off on the Fed, rants about China, and gives a royal proclamation to corporations and the market panics and drops 600 points. So much winning.

 

[scorecard]

11 minutes ago, stevenl said:

He is ordering US companies ...?

 

As long as MAGA hats can be cheaply made in China all is well.

And daughters fashion stuff, exempt from this order of course.

[LomSak27]

Just now, Berkshire said:

Yeap, Trump is the same with hiring illegals.  "Don't do as I do, do as I say."

Dad use to say that a lot heh

 

Looks like my mutual fund will be hurting again. It did so well last year too. ????  

[mtls2005]

8 minutes ago, scorecard said:

And daughters fashion stuff, exempt from this order of course.

 

Hopefully Ivanka has been recalled from vacation in Wyoming to soothe daddy, or at least distract him.

 

 

I suspect Biarritz will go up in flames.

 

trump will storm out and head to Moscow for a warm shower.

 

 

"Trade wars are good, and easy to win."

 

 

 

[WeekendRaider]

so there are still folks who believe a Thai Baht in the 30's is "strong"?

you don't solve a trade deficit..... than is running on a mega fiscal deficit and loose as a goose monetary policy.... by pushing on a string or whatever you want to politely call this or come up with more girlie man narratives along the same lines as Chinese Hoax, Fire and Fury, Mexican Rapists.... or even, or especially, the new but more serious sounding one our media is now peddling along with Trump.... "a recession is possible next year"..... really!..... except what if it ain't a recession?

debt to a tune of $15 trillion US Dollars is suddenly for the first time ever bid and held at negative real rates.  in 2019.  that didn't happen in 2007 or 2008 or 2009.  but began in 2015/2016. 

this will end in a debt crisis.  and that means that it ain't just some all time bond bubbles that go bust.  but what was going up along with bonds, the US dollar and.... spending on what are now "entitlements" in name and reality.... Social Security and military and all other public sector pension benefits.  that not only will need to be cut but are fixed in dollars.

 

be hedged.  be ready.  and not just for money things.  in 2015/2016 as well as 2019, we were not just setting new first time ever records in negatively held debt but also in monthly GISS land temperatures at the very same time that chart of $15 trillion US the Financial Times and others have published in recent weeks... spiked.  it's real obvious.  and it can't be just a coincidence.  it just can't.  and all of these things, the spending, the political show, the "strong" That Baht are trends until shown otherwise.  it's lower and lower bond rates, and higher trade deficits and fiscal deficits that can't stay where they are today let alone be sustainable counter trends.  and those are tied to the US dollar.    

[Roadman]

10 minutes ago, WeekendRaider said:

so there are still folks who believe a Thai Baht in the 30's is "strong"?

you don't solve a trade deficit..... than is running on a mega fiscal deficit and loose as a goose monetary policy.... by pushing on a string or whatever you want to politely call this or come up with more girlie man narratives along the same lines as Chinese Hoax, Fire and Fury, Mexican Rapists.... or even, or especially, the new but more serious sounding one our media is now peddling along with Trump.... "a recession is possible next year"..... really!..... except what if it ain't a recession?

debt to a tune of $15 trillion US Dollars is suddenly for the first time ever bid and held at negative real rates.  in 2019.  that didn't happen in 2007 or 2008 or 2009.  but began in 2015/2016. 

this will end in a debt crisis.  and that means that it ain't just some all time bond bubbles that go bust.  but what was going up along with bonds, the US dollar and.... spending on what are now "entitlements" in name and reality.... Social Security and military and all other public sector pension benefits.  that not only will need to be cut but are fixed in dollars.

 

be hedged.  be ready.  and not just for money things.  in 2015/2016 as well as 2019, we were not just setting new first time ever records in negatively held debt but also in monthly GISS land temperatures at the very same time that chart of $15 trillion US the Financial Times and others have published in recent weeks... spiked.  it's real obvious.  and it can't be just a coincidence.  it just can't.  and all of these things, the spending, the political show, the "strong" That Baht are trends until shown otherwise.  it's lower and lower bond rates, and higher trade deficits and fiscal deficits that can't stay where they are today let alone be sustainable counter trends.  and those are tied to the US dollar.    

Don’t worry the way the clown in charge is going with his winning and making friends skills either Russia with their new arms race, a cornered Iran, a out of control little US the second in Israel, or an idiot little Trump the second boy on the Korean Peninsula will wipe most of us of the face of the world saving Mother Nature the task.

[Tug]

Article 25 anyone?donald is on a mission to kill the goose that laid the golden egg.any republicans grow any balls after todays little episode?eh?and were are all the trump supporters not seeing them here today the guy is pathetic I hope the g7 folks just turn him around and send him home 

[bristolboy]

22 minutes ago, WeekendRaider said:

so there are still folks who believe a Thai Baht in the 30's is "strong"?

you don't solve a trade deficit..... than is running on a mega fiscal deficit and loose as a goose monetary policy.... by pushing on a string or whatever you want to politely call this or come up with more girlie man narratives along the same lines as Chinese Hoax, Fire and Fury, Mexican Rapists.... or even, or especially, the new but more serious sounding one our media is now peddling along with Trump.... "a recession is possible next year"..... really!..... except what if it ain't a recession?

debt to a tune of $15 trillion US Dollars is suddenly for the first time ever bid and held at negative real rates.  in 2019.  that didn't happen in 2007 or 2008 or 2009.  but began in 2015/2016. 

this will end in a debt crisis.  and that means that it ain't just some all time bond bubbles that go bust.  but what was going up along with bonds, the US dollar and.... spending on what are now "entitlements" in name and reality.... Social Security and military and all other public sector pension benefits.  that not only will need to be cut but are fixed in dollars.

 

be hedged.  be ready.  and not just for money things.  in 2015/2016 as well as 2019, we were not just setting new first time ever records in negatively held debt but also in monthly GISS land temperatures at the very same time that chart of $15 trillion US the Financial Times and others have published in recent weeks... spiked.  it's real obvious.  and it can't be just a coincidence.  it just can't.  and all of these things, the spending, the political show, the "strong" That Baht are trends until shown otherwise.  it's lower and lower bond rates, and higher trade deficits and fiscal deficits that can't stay where they are today let alone be sustainable counter trends.  and those are tied to the US dollar.    

Actually negative bond rates would be a good thing as far as US debt is concerned.

[RJRS1301]

34 minutes ago, mtls2005 said:

 

Hopefully Ivanka has been recalled from vacation in Wyoming to soothe daddy, or at least distract him.

 

 

I suspect Biarritz will go up in flames.

 

trump will storm out and head to Moscow for a warm shower.

 

 

"Trade wars are good, and easy to win."

 

 

 

No he will try to buy it

[keemapoot]

Across the corporate board rooms of America there was a collective sigh, laugh and incredulity at this NY bumpkin's latest brilliant idea. Yeah, let's kill globalism and at the same time, kill off competitiveness of US companies. Trump is grasping at ways to keep his bumpkin base together.

[dcutman]

43 minutes ago, Berkshire said:

I'd ask you to explain that, but I'm sure your explanation will not make any sense.

You cant explain anything to a Trump hater, I wouldn't even try. Its like trying to explain the Earth is round to somebody convinced it is flat.

[RJRS1301]

"I hereby order"...…...

He woke up with his dictator pants on , they fit well for a deluded person

 

What will he do if the Chinese government decides to Nationalise all US companies and freeze the accounts and take control of the Intellectual property?

 

Then call in the debts owed to them by the USA??

 

[mtls2005]

"where are the ties made..."

 

First time I've ever seen trump stay silent...

 

A vote is a terrible thing to waste.

 

 

 

 

[dcutman]

25 minutes ago, Tug said:

I hope the g7 folks just turn him around and send him home 

Typical, childish response from a Trump hater. You must feel good you are not alone.

[ylmiri]

51 minutes ago, soalbundy said:

At least he is consistently stupid, that at least can be counted on

I like this . Consistently.

[mtls2005]

"I am the chosen one..."

 

 

[ballpoint]

46 minutes ago, soalbundy said:

At least he is consistently stupid, that at least can be counted on

You are correct in that his stupidity has been with him throughout his presidency, however, the level of it has not been consistent, but rather is increasing exponentially.  Someone should be digging through the constitution to find out the ways of dealing with, and ultimately, removing a president who is plunging into senility at an ever growing rate.