Trump HUMILIATED by China & Japan in trade deals

Trump HUMILIATED by China & Japan in trade deals

So recently, Donald Trump claimed he had some sort of trade deal with Japan and immediately my wife and I looked at the details of said thing and it was quite suspicious to be fairly frank. Some things were off about the deal. Uh now we have some more details about this. It looks like our suspicions were correct and it’s even more crazy than we thought which I want to share with you. Plus it looks like Donald Trump is panicking on China trying to get a deal over there. So let’s listen of what’s going on. And first we’ll start with Scott Bessant. Have a watch. Well, there is a photo circulating on Twitter from Dan Scavenino, and you actually see a Sharpie X out of some what looks like preliminary deals for even more concessions with Japan. So, yes, we have Sharpie gate 2.0, I guess. And um effectively what this is is this is a card. Looks like Lenik made the card and then Trump likes to draw all over it. So, that’s Trump’s business ability in these things is drawing on stuff. No, for real. That’s actually I guess his drawings. Um, this is Lutnik talking about that. Have a watch. So, I’m the table setter, if you will, right? I set the table, right? I organize things. I structure things. Uh, you know, there was a picture uh that the president posted over his shoulder with the big board that of course I created the big board and put it there. But the answer is the negotiator chief of the United States of America is sitting behind the desk. You know, Donald Trump is sitting there negotiating the deal. You also created the board on liberation day and we saw the sky high-tech. So I you know and I I had my suspicions that Lutnik was the board maker cuz I saw him before. He’s kind of like Eigor if you know what Eigor from like Young Frankenstein. Yes, master. Yes, master. And he was bringing up the board to Trump. No, seriously, they really did. And so I I guess that’s his role in this stuff. Um but really what we’re talking about here is money. And they had this weird structured thing to where it was like they were saying, “Okay, Japan’s going to put up a bunch of money.” But it’s not exactly the case because there’s they use the phrase loan guarantees. I want you to listen to how they talk about this stuff. And that is a different kind of deal. But the because the Japanese proposed a very innovative solution. We’d been working with them for months, the trade team, myself, Ambassador Greer, Secretary Lutnik, and they came to us with the idea of a Japan US partnership where they are going to provide equity, credit guarantees and funding for major projects in the US. So they got the 15% rate because they were willing to provide this innovative financing uh mechan. So we’re talking about innovative financing mechanism where Japan is like e there’s some equity in there was it credit and loan guarantees and this is the part where I had a lot of questions because it didn’t make sense the way the deal was structured. Um they’re talking about how USA was going to get 90% of the profits and Japan only like 10%. Like it doesn’t make sense. I wonder it’s not specifically but I wonder if this has to do with please Japan don’t sell off US bonds. like I I wonder if this is part of the negotiations. Um if you’re kind of curious, Japan has confirmed it. They were talking about in their news also told us that business risks will remain high if the US continues to stick to an American first policy. Japanese companies may slow their investment pace in the US or focus elsewhere such as Europe. Another economist gave gave this deal high marks. I spoke with MSO security chief economist Kobayun. He says Japanese automakers will have an will have an advantage in the US market over some non US rivals now that old tariffs are set to be lower. We still have to see how this all shakes out. Trump has a history of being unpredictable. Just because he says a deal has been made doesn’t mean that’s the end of the end of the story. Right? So even in Japan they’re talking about that Trump is unpredictable. He can change his mind and even if he says there’s a deal is made doesn’t mean it’s the end of the story. They were also talking about too that um you’re looking at possible slowing growth in Japan. So that’s why the questions were like where does Japan have all this money? Trump was promising 550 billion, but I don’t think it’s that. And this is something that Trump has done before where they’ll work out some sort of deal and it’s like, well, can you make it a bigger number and a nice round number so I can tell the the TV folks at home? So, I started because the Japanese are never going to really open their market the way Donald Trump wants them to open it. I mean, open it, open it, you know. So, what’s happens is they have to come up with another way to really make it work and the tariff model work. So I suggested to them a $400 billion fund where they would give to the president and they would give to America the financing to go build out your whatever you think for national security. Go build it. We’ll back you and that’s the model. And it was funny the reporters even like given a weird look cuz like what the heck are you talking about? Um now remember Trump was promising that they’re going to build a bunch of factories but I don’t think it’s going to be that. It it sounds like to me Trump’s just uh I mean Japan is just going to be the bank I guess in this case the financier um the money it looks like it’s maybe going into Trump’s pocket per se. So I’m kind of curious on this stuff and you have to remember Japan’s prime minister is looking most likely to resign although he’s denying it recently. There’s a lot of shady things going on with this. That’s why I want to go over it with you guys. I want to pick up this idea of innovative financing mechanisms and this $550 billion fund the Japanese are going to be investing into. What exactly is that fund going to look like? So the Japanese are going to give America the ability to choose the projects, decide the projects and execute the projects. So let’s say we want to build um generic pharmaceuticals, right? We don’t make antibiotics in America. So the president says, “Let’s go make antibiotics in America.” The Japanese will finance the project. They will finance the project and then we’ll give it to an operator who’ll run it and the profits will be split 90% to the taxpayers of the United States of America and 10% to the Japanese. So they basically bought down their tariff rate by this commitment of we will back what you the president want and you America want to build in America that are key to national security concerns will back that see where it doesn’t make sense. Okay. So if if Japan is is taking on the risk, why would they only do that for only 10% of the profits and then they’re talking about Japan’s going to back whatever Trump decides to do and then act as a financeier. Um, my initial reaction to stuff and we’ll watch some more though is I I think are we are we talking about American companies getting loans from Japan or are we talking about specifically Trump getting loans from Japan or I mean or or guarantee would be like are we talking about American companies getting loans from Trump and if then the companies can’t pay it back or Trump can’t pay himself back because I guess you could do this sort of insider loan trading thing then Japan would theoretically guarantee said loans. I mean, how is this going to be structured? That’s why I’m showing you guys this stuff. It’s it’s a bit strange. I haven’t heard of of this before. This is the first time this stuff they started mentioning this stuff. That’s why it was it was bizarre because Trump’s been promising all along that the um you know, other countries are going to come in and build factors in USA. But it doesn’t sound like that to me. The reports the prime minister though may be resigning. Could this deal transcend domestic politics in Japan? Of course. I mean, it’s vital. You saw what happened to their car companies. They were all up more than 10% today. So a 25% tariff delivers what Donald Trump said. Build it in America. A 15% is right on the edge. It’s right on the edge. So the Japanese car manufacturers can still produce in Japan. And that’s what the Japanese wanted to buy. They wanted to buy that line where they could stay in Japan for some cars, build of course huge amounts here, but also what they did is they’ll It’s strange, right? So they were promising you that Japan was going to build a bunch of factories, but then literally they’re talking about, oh no, no, well, Japan wanted to keep their factories in Japan. They’ll build cell. Yes, they’ll build still build still build stuff in USA. Um, but like I said, I think like quote all of these, you know, jobs that Trump is promising coming, you know, to the USA and USA is going to gonna be a big manufacturing hub. I just don’t see it developing. I that’s why I’m showing you guys the stuff to see it with your own eyes. They’re trying to claim victory here, but it doesn’t sound as good as as they’re painting it out to be. The prime minister, Oshiba, says these are loan guarantees. Is it more than that? Of course, it’s more than that. It’s it’s equity, loans, and loan guarantees. They have to deliver the project. So we say let’s build semiconductors. We want to build a hundred billion dollar worth of semiconductor fabs is what you call them cuz we want to make those chips in America. The Japanese will finance that whole project. They’ve got to put down equity loans loan whatever they want to do. They have to deliver the hundred billion or Japanese companies. J oh no no anybody does it. It’s the Japanese are the financer. They’re the banker. They’re not the operator. It’s not Japanese companies. So what people get confused, this isn’t like uh a Japanese company like like H, you know, like uh Toyota coming in and building a factory. No, that’s Toyota. This is literally America saying we want to build uh generic pharmaceuticals, semiconductors. Did you guys see this? So like I said, it sounds like to me the plan is American companies are going to borrow money from Japan. I guess I guess that’s the plan. um and supposedly build factories. But wouldn’t this also predicate that that the American company would want to do said thing? That’s why the stuff doesn’t really make sense. Um other than we know that a lot of the stuff wants to go into Trump’s pocket and there’s always Trump trying to write a way to grift this stuff. That’s why I want to get you guys opinion. Also, critical minerals. Do you feel like this exists now? Like what could we think of and model after that? That’s why you have someone like me who joins the government. Uh this is Bessant more on this stuff. As I’ve said many times, there is the potential for a big, beautiful rebalancing between the US and China. President Trump is committed to bringing back precision manufacturing to the US. And as we become more of a manufacturing economy, China is highly imbalanced. They account for 30% of all the manufacturing output in the world. That’s not sustainable. uh we believe they should become more of a consumption economy. If they are willing to go down that route, then we could actually do it together. So if you listen to what he was saying, he’s talking about a sort of rebalancing and switching of roles. Is then China going to be all the consumers uh essentially the wealthier consumers and then USA wants to be effectively the poor manufacturers, right? The factory workers. Is is that the world that Besset and Trump want? I mean, if you had to, you know, get my opinion, I’d say yes. That’s what it sounds like. But we also know that Trump wants to replace workers with robots and AI. So, that’s where this stuff doesn’t make sense. And and I don’t think he’ll tell this to his followers. Hey guys, you know, we’re going to be making tons of stuff. We’re going back to the factory workers and and that’s what you want, right? And then the other countries are are going to buy stuff from us because they’re going to be the rich consumers. Fantastic, right? And then we’re going to get Japan to be the bank. Oh, great. You know there is a lot of Japanese FDI into the United States already. Is this new capital? Oh no. This is all new capital. This is this is all new capital and it is going to be targeted at the strategic industries. The President Trump and this administration believe we have to derisk on during COVID. We saw our vulnerabilities whether it was in medicines semiconductors. So, we are going all in over the next few years to derisk our supply chains and this deal thanks to President Trump is going to be part of that. Um, and I think I think a lot of this is going to go to the sovereign wealth fund thing. That’s my thoughts on this stuff. Um, they announced it before back in February, but it’s sort of what it feels like and because they keep sort of emphasizing that Trump, you know, can decide where he wants his money to go, etc. Um, if you’re curious about the sovereign wealth fund before, they’re also talking about using the uh tariff money uh to um go into some sort of slush fund, which is again the sovereign wealth fund. They were also talking about ex making this external revenue service to collect said money. Um, a lot of this is a grift. Um, and it looks like Trump is now going to be possibly begging China uh to, you know, come to the table or something. This was the headlines. Trump may travel to China to meet she not too distant future. I don’t think she’s coming to the USA. So that’s would put Trump in a weaker position. Um right, whoever goes to whose house. Now we both sides have deescalated and I think we can get into a very good cadence of regular meetings with them. And look, we’re the two largest economies in the world. We do not want to decouple with the Chinese. We just need to derisk part of our supply chain. Does regular incremental meetings include a meeting between President Trump and Xi Jinping this fall? Uh, I do know that party chair Xi has invited President Trump to visit China. I don’t know. I don’t have dates on that. I don’t know if the president’s accepted. I know they have a fantastic relationship on a personal level, which I think forms the basis of everything between the US and China. Local reports in China were talking about the two meeting on the sidelines of the Apac summit in South Korea this fall. It’s end of October, early November. or maybe President Trump going to China first. Could we see a meeting that soon? You think a meeting within this year can happen? I I again I’m not privy to the president’s travel schedule beyond September. So, we’ll see. That’s what they want to do, right? It looks like China’s running the house, running the rules, however you want to say it. And then Trump’s going to have to go to them. I mean, that’s how I read that. Um, also any sort of uh deal or whatever they’re going to make with Japan. Remember, Japan’s prime minister may be on his way out. Um, plus they’re gonna have to get this passed through the parliament in Japan and then also through Congress in the USA. So, a lot of these things are are quite questionable. Think I don’t think anybody uh Europe’s not going to go and give us a trillion dollars to Well, can they get below 15% or is 15% now the floor? I fors I I would I would no for a reciprocal tariff for the European Union. I don’t think at one point they’re willing to accept. I don’t think big countries can get low like that. I think I think small countries have a possibility of being low and that’s up to the president. So the question is as you go through other you know countries in negotiations, Japan has a 15% tariff on Japanese products coming USA and again you’re going to pay it the American consumer. Is that essentially the baseline for all products from other countries and effectively everything’s going to go up in USA in price? Now, Besson’s gonna try to deflect and say, “No, no, no. Uh, it’s not going to go up in price.” Um, listen to what he has to say. And actually, he went on MSNBC and they still threw him softballs. Watch this. And the question is, the one thing I do know, and you mentioning the new Japan trade deal, 15% tariffs. I do know that the tariffs, the cost of tariffs on automobiles, which will begin, I don’t know, August 1st or whatever, will be paid by people like me. the consumer. The question is, does the president realize the consumer pays the tariffs? Well, I I’m going to have to disagree with that. Is uh who pays the tariffs is a choice. And what we’ve seen thus far is that the manufacturers are eating a substantial portion of the tariffs and taking it into their profit margins. So, uh, you might see, for instance, Toyota, uh, h hasn’t raised prices and they they may choose to go for market share. See, and they they keep trying to play down that you’re going to end up paying the tariffs. And this is where it it’s been a lie from the beginning where Trump’s like, “All right, the countries are going to pay the tariffs.” It’s just it’s not true. It’s a tax. The importer pays it. So, the American company and then the American company ultimately pass the price on to you. Um, I’m showing you what they’re saying though because you have to understand if they’re going to be dishonest about this tariff stuff, then how many things are they being dishonest about? And that’s where it’s where it gets tricky, right? Um, this is more and it was it was frustrating because a lot of these reporters don’t push back. I think they’re instructed not to. Um, because these people aren’t dumb, they just don’t push back. Um, watch a little bit more here. Are you confident that even as no new tariffs go into place on August 1st, on August 12th, uh that there will not be an effect that Americans are going to see when they try to buy a car or Christmas goods or toys or dolls or anything else? Well, I I I think what we’ve seen so far is that the manufacturers have been eating it uh a lot or the exporters have been taking a lot of the price uh or the tariff adjustment. I think we’re also seeing a lot of the retailers do it. A lot of the retailers margins got very uh fat during COVID. So, I think some of them are absorbing it. Uh I was with the Amazon CEO last week and he said thus far they’re not seeing any price increases and you thus far we’ve seen very good inflation numbers. So according to him they have good inflation numbers. You’re not seeing any price increases and everything is jolly. Now this is an honest opinion on this stuff. Um, I think what happened was there’s a lot of companies out there that bought a bunch of things pre-tariffs, right, the first quarter because they knew the tariffs were coming, so they try to stock up on inventory as much as they can. So, you know, maybe they didn’t raise prices right away. But now that the tariffs are all kicking in and they have no choice but to import more expensive goods, they’re going to pass the cost on you. Now, he’s saying, “Oh, well, no, they’re going to eat the uh eat the cost.” But I I just don’t think it’s going to play out that way as is if you get more and more tariffs on products from every country coming into the USA. So that’s my thoughts on this stuff. I want to hear yours. Thanks for watching and I’ll catch you on the next

✅ Become a member! ✅
https://www.youtube.com/channel/UCahJ9IsvXnaQiuNyWQSkrkw/join
⭐ Support independent news today! ⭐

🔖 See more on my blog! https://norlund.substack.com

🧋 Buy me a coffee 🧋 https://ko-fi.com/norlund

⭐ Check out my book Positive Angle on Amazon.
https://www.chrisnorlund.com/book
And if you’ve already read the book, I’d love it if you could leave a review 💌

🪁 Our Vlog Channel https://www.youtube.com/@chrisandyeji

🎞️ My youtube gear and movie list https://www.amazon.com/shop/chrisnorlund

🏠 Start Investing! https://www.chrisnorlund.com/invest

Disclaimer: Opinions expressed in this video are my own. Content is for education and entertainment. Make decisions suitable for your particular circumstances.

PS: Affiliate links and cool kids like you help support the channel. This content is provided by a paid influencer of Interactive Brokers.