Thursday 29 November 2018

This is the man Australian Prime Minister Scott Morrison admires because of his trade policies



Almost everyone could see this coming except US President Donald Trump and he had been repeatedly warned that his imposition of tariffs, using anti-globalisation sentiment as an excuse, would spring back and hit American manufacturing where it hurts.

Almost everyone – but not Australian Prime Minister and Liberal MP for Cook Scott Morrison who on 17 September 2018 was quoted thus:

Spruiking the kind of populist credentials that swept Trump to power, Morrison said many people in both the US and Australia feel left behind by the powerful economic forces of globalisation, which have brought massive wealth to some but left others feeling poorer and disenfranchised.

“That’s what we get. The president gets that. I get it,” the prime minister told the Times columnist Maureen Dowd.

Morrison described Trump as “very practical” and as someone “who’s not going to waste a day”.

“I like that about him. I like that about him a lot, actually.’’

Here is that oh so “very practical” Donald Trump this week.

The Sydney Morning Herald, 27 November 2018:

On Monday local time, the iconic carmaker announced it would close assembly plants in Ohio, Michigan, Maryland and in the Canadian province of Ontario. The cuts amount to almost 15 per cent of the General Motors workforce.

A big part of Trump's appeal in the so-called "rust belt" in the midwest was his promise to bring back stable and well-paying manufacturing jobs, especially in the auto industry. The General Motors plant at Lordstown, Ohio, is located in a county that recorded a 29 percentage point swing towards Trump at the 2016 election.

So before heading to Mississipi for a campaign rally, Trump said he had expressed his displeasure to General Motors Chief Executive Mary Barra.

"I was very tough," Trump said. "I spoke with her and I said, 'This country has done a lot for General Motors – you'd better get back in there soon.' That's Ohio.

"They say the Chevy Cruze is not selling well. I say, 'Well get a car that is selling well and put it back in' ... I'm not happy about it."

Trump said he expected General Motors to start manufacturing another type of car in Ohio and that it "had better" do so.

In an interview with The Wall Street Journal on Monday, Trump said he told General Motors: "You’re playing around with the wrong person."

Trump will this week travel to Argentina for G20 meetings, where he will hold a highly-anticipated meeting with Chinese President Xi Jinping focussed on trade.

At the height of the Global Financial Crisis, General Motors received a government bailout that eventually cost US taxpayers $US11.2 billion ($15.5 billion in today's money).

But the President has slapped a 25 per cent tariff on imported steel from China, which automakers said has already increased commodity costs, and threatened more including on auto parts. Car manufacturers said earlier in the year that tariffs could bring job losses.

Trump has since boasted about a renaissance in the industry thanks to his tax cuts and the removal of environmental regulations put in place by his Democratic predecessor Barack Obama.

In a tweet about Michigan in August he said: "Lots of car and other companies moving back!"

In 2017 he said high-quality manufacturing jobs were no longer leaving Ohio.

"They’re all coming back," he said at a rally in the state. "Don’t move. Don’t sell your house."

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