A: I think NAFTA has been a disaster. I think our current deals are a disaster. I'm a free trader. The problem with free trade is, you need smart people representing you. We have the greatest negotiators in the world, but we don't use them. We use political hacks and diplomats. We use the wrong people. Mexico is smart; they have out-negotiated us to a fare-thee-well. They're going to be the capital of automobiles pretty soon, the way they're going.
Why is our president signing the trade bill that the South Koreans want him to sign instead of the one that gives us maximum advantage?
Fact -Check: Support for USMCA among labor unions was mixed. While the AFL-CIO backed the agreement, others did not. The United Food and Commercial Workers International Union, the International Association of Machinists and Aerospace Workers and the United Auto Workers all expressed disappointment over the deal.
President Trump has shown no sign of stopping the use of tariffs as an economic weapon. Trump has been attempting to renegotiate the North American Free Trade Agreement (NAFTA) with Mexico and Canada. On Friday, Trump tweeted that a trade deal with Mexico was "coming along nicely," but threatened Canada with auto tariffs if Washington and Ottawa can't forge an agreement.
Ford is moving production of the Ford Focus and Ford C-Max from its Michigan Assembly Plant in Wayne to Mexico in 2018. Ford said in April it plans to invest $1.6 billion to build a new plant in Mexico and create 2,800 jobs to build small cars there. However, Ford also plans to replace the products it makes in Wayne with two new vehicles and has repeatedly said no jobs will be lost. Ford's CEO said that "zero" jobs will be lost in the US and said "it is really unfortunate when politics get in the way of the facts."
Trumps' comments also prompted tweets from both Ford and the UAW countering Trump's claims. The automaker also made a commitment in November to invest $9 billion in U.S. plants and creates or retains more than 8,500 jobs as part of a new four-year contract with the UAW.
Bloomberg Fact check: NAFTA had a modest effect on manufacturing jobs. An Economic Policy Institute analysis says manufacturing jobs dropped in the 1990s from 17.9 million to 17.6 million.
Trump said of Hillary, "She's been doing this for 30 years. And why hasn't she made the agreements better? The NAFTA agreement is defective," [implying that Hillary and Bill Clinton held primary responsibility for NAFTA]. Chicago Tribune fact-checkers noted that while NAFTA was signed by former U.S. President Bill Clinton, it was largely negotiated under the administration of George H.W. Bush.
We have to renegotiate our trade deals. They're taking our jobs, they're giving incentives, they're doing things that, frankly, we don't do. Let me give you the example of Mexico. They have a VAT tax. We're on a different system. When we sell into Mexico, there's a tax. When they sell in--automatic, 16 percent, approximately. When they sell into us, there's no tax. It's a defective agreement. It's been defective for a long time, many years, but the politicians haven't done anything about it. But in all fairness to Secretary Clinton, when she started talking about this, it was really very recently. She's been doing this for 30 years. And why hasn't she made the agreements better? The NAFTA agreement is defective. We owe $20 trillion. We cannot do it any longer.
Never again, only the reverse--and I have to say this strongly--never again; only the reverse will happen. We will keep our jobs and bring in new ones. There will be consequences for the companies that leave the United States only to exploit it later. They fire the people. They take advantage of the United States. There will be consequences for those companies. Never again.
"When a car is sent to the United States from China, there is a Tariff to be paid of 2-1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%," Trump tweeted April 9. "Does that sound like free or fair trade. No, it sounds like STUPID TRADE-- going on for years!"
Trump's 25% figure matches up with international trade data: we rate this Mostly True. But economists raised some important details that Trump omitted: Some experts suggested Trump had cherry-picked the facts by singling out "cars" instead of a broader category of automobiles or car parts. The U.S. tariff on light trucks from China is 25%. And Chinese tariffs on American auto parts sent to China are well below 25%. For example, China places a 10% tariff on automobile engines.
KASICH: Trade has to be balanced & we have to make sure that when we see a violation, like some country dumping their products into this country, I will shut down those imports.
Q [to Trump]: Your campaign platform is inconsistent with how you run your businesses: your companies manufacture clothing in China and Mexico.
TRUMP: Because of the monetary devaluations that other countries are constantly doing and brilliantly doing against us, it's very, very hard for our companies in this country, in our country, to compete. So I will take advantage of it; they're the laws. But I'm the one that knows how to change it. Nobody else on this dais knows how to change it like I do, believe me.
KASICH: They can't manipulate their currency. That will not be anything that I would allow them to get away with. And if I saw them doing it, I would take immediate action and make sure that the American worker is protected.
TRUMP: The TPP is horrible deal. It is a deal that is going to lead to nothing but trouble. It's a deal that was designed for China to come in, as they always do, through the back door and totally take advantage of everyone. It's 5,600 pages long, so complex that nobody's read it. This is one of the worst trade deals. And I would, yes, rather not have it. We're losing now over $500 billion in terms of imbalance with China, $75 billion a year imbalance with Japan.
Q: Which are there particular parts of the deal that you think were badly negotiated?
TRUMP: Well, the currency manipulation they don't discuss in the agreement, which is a disaster. If you look at the way China in particular takes advantage of the US--it's through currency manipulation. It's not even discussed in the almost 6,000-page agreement.
Sen. Rand PAUL: Hey, you know, we might want to point out China is not part of this deal.
We can't do anything right. Our military has to be strengthened. Our vets have to be taken care of. We have to end ObamaCare, and we have to make our country great again, and I will do that.
The president will also order a review of existing federal procurement policies. These are statutes and rules instituted over the decades that may bar foreign contractors from bidding for jobs, exclude certain raw materials from abroad, or mandate that international firms deliver projects at reduced prices relative to American firms in order to win contracts.
The administration will also review exceptions to these policies granted under free-trade agreements and the World Trade Organization. While these agreements are designed to give U.S. firms access to foreign governments' contracts in exchange for allowing firms from abroad to bid on federal projects, a senior administration official argued that U.S. bids are treated unfairly overseas.
Let me explain why I say that. First on the economy. If Donald Trump's plans were ever implemented, the country would sink into prolonged recession. A few examples. His proposed 35 percent tariff-like penalties would instigate a trade war and that would raise prices for consumers, kill our export jobs and lead entrepreneurs and businesses of all stripes to flee America.
Now, not every policy that Donald Trump has floated is bad, of course. He wants to repeal and replace ObamaCare. He wants to bring jobs home from China and Japan. But his prescriptions to do those things are flimsy at best. Successfully bringing jobs home requires serious policy and reforms that make America the place businesses want to come, want to plant and want to grow. You can't punish business into doing what you want.