The End Really Is Near: Here’s a Play-By-Play of the Coming Economic Collapse as Predicted by 5 Economists

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Recoveries generally don’t die of old age. So what’s going to kill ours? Five economists call it like they see it Since June, 2009, the pit of one of the biggest recessions in American history, the U.S. economy has been growing, slowly but steadily. That’s just over nine years of uninterrupted growth.

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Since June, 2009, the pit of one of the biggest recessions in American history, the U.S. economy has been growing, slowly but steadily. That’s just over nine years of uninterrupted growth. If the good times roll for another year — and most economists expect they will — this expansionary period will go down as the longest ever in American history, surpassing the 120-month-long period during the ‘90s tech boom. But don’t be so quick to pop bubbly and send the confetti raining down. There’s precedence for unprecedented growth: It always ends. The economy, of course, moves in cycles.

And no matter how you slice it, it would seem there’s only so much more climbing before a fall. But what will set off a downturn? How bad will it be? And when will it actually happen? To answer these questions and more, Salon consulted with five economists, three of whom (Peter Schiff, Steve Keen and Dean Baker) predicted the 2008 financial crisis before it hit.

 

— Read on www.alternet.org/end-really-near-heres-play-play-coming-economic-collapse-predicted-5-economists

Posted by The NON-Conformist

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New York becomes first major U.S. city to issue cap on ride-hail vehicles – Chicago Tribune

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New York City is reining in the growth of Uber, Lyft and other app-based ride services with a temporary cap on new cars picking up fares.

The City Council approved a package of bills Wednesday that included a one-year moratorium on new licenses for for-hire vehicles while the city studies the rapidly changing industry.

The Council also voted to set a minimum driver wage equivalent to the yellow cab wage for app-based drivers.

Backers of the proposals said both the traditional yellow cab industry and drivers for app-based services are suffering as Uber cars flood the city’s streets. They said the growth of ride-hailing apps has also worsened traffic congestion.

More from Chicago Tribune

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Now the Trump administration wants to limit citizenship for legal immigrants The most significant change to legal immigration in decades could affect millions of would-be citizens, say lawyers and advocates.

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Image: United States Citizenship Ceremony with Justice GinsbergNew citizens recite the Pledge of Allegiance during a naturalization ceremony in New York on April 10.Justin Lane / EPA file

The Trump administration is expected to issue a proposal in coming weeks that would make it harder for legal immigrants to become citizens or get green cards if they have ever used a range of popular public welfare programs, including Obamacare, four sources with knowledge of the plan told NBC News.

The move, which would not need congressional approval, is part of White House senior adviser Stephen Miller’s plan to limit the number of migrants who obtain legal status in the U.S. each year.

Details of the rulemaking proposal are still being finalized, but based on a recent draft seen last week and described to NBC News, immigrants living legally in the U.S. who have ever used or whose household members have ever used Obamacare, children’s health insurance, food stamps and other benefits could be hindered from obtaining legal status in the U.S.

Immigration lawyers and advocates and public health researchers say it would be the biggest change to the legal immigration system in decades and estimate that more than 20 million immigrants could be affected. They say it would fall particularly hard on immigrants working jobs that don’t pay enough to support their families.

Many are like Louis Charles, a Haitian green-card holder seeking citizenship who, despite working up to 80 hours a week as a nursing assistant, has had to use public programs to support his disabled adult daughter.

Using some public benefits like Social Security Insurance has already hindered immigrants from obtaining legal status in the past, but the programs included in the recent draft plan could mean that immigrant households earning as much as 250 percent of the poverty level could be rejected.

A version of the plan has been sent to the White House Office of Management and Budget, the sources said, the final step before publishing a rule in the federal register. Reuters first reported that the White House was considering such a plan in February.

A spokeswoman for the Department of Homeland Security said: “The administration is committed to enforcing existing immigration law, which is clearly intended to protect the American taxpayer by ensuring that foreign nationals seeking to enter or remain in the U.S are self-sufficient. Any proposed changes would ensure that the government takes the responsibility of being good stewards of taxpayer funds seriously and adjudicates immigration benefit requests in accordance with the law.”

Miller, along with several of his former congressional colleagues who now hold prominent positions in the Trump administration, have long sought to decrease the number of immigrants who obtain legal status in the U.S. each year. And even before the rule is in place, the administration has made it more difficult for immigrants to gain green cards and for green-card holders to gain citizenship.

In fiscal year 2016, the last full fiscal year under the Obama administration, 1.2 million immigrants became lawful permanent residents, or green-card holders, and 753,060 became naturalized U.S. citizens, according to data from U.S. Citizenship and Immigration Services.

Data from the first quarter of fiscal year 2018 indicates that the administration is on track for a decline in immigrants granted green cards by 20 percent. Data for the first two quarters of fiscal year 2018 for immigrants obtaining naturalized citizenship shows little change compared to the same period of 2016. U.S. Citizenship and Immigration Services says they expect naturalization numbers to rise in the latter half of the year based on previous trends.

Four immigration lawyers practicing in Massachusetts, Virginia, Tennessee and California told NBC News they have noticed a spike in the number of their clients being rejected when seeking green cards and naturalized citizenship.

In a statement, agency spokesperson Michael Bars said, “USCIS evaluates all applications fairly, efficiently and effectively on a case-by-case basis.”

“Contrary to open borders advocates, immigration attorneys and activists,” said Bars, “USCIS has not changed the manner in which applications for naturalization have been adjudicated, as the law generally requires that an eligible applicant must have been properly admitted for permanent residence in order to become a U.S. citizen. … We reject the false and inaccurate claims of those who would rather the U.S. turn a blind eye to cases of illegal immigration, fraud, human trafficking, gang activity and drug proliferation at the expense of public safety, the integrity of our laws and their faithful execution.”

“I DID EVERYTHING THEY ASKED ME”

Charles, the Haitian green-card holder who works as a nursing assistant in a psychiatric hospital near Boston, said he was stunned to learn his application for citizenship had been denied. He had used a fake passport given to him by smugglers when he entered the U.S. from Haiti in 1989, but confessed to border officers and received a waiver from USCIS absolving him of his wrongdoing and allowing him to obtain a green card in 2011.

Now 55, Charles is a homeowner and a taxpayer and thought obtaining citizenship would be a smooth process. “I thought in this country everything was square and fair,” Charles said.

But when he went for his citizenship interview in August 2017, the USCIS officers told him they were going to revisit the decision to waive the fake passport incident, meaning he could potentially lose his green card as well

Then he received a letter in September telling him his request for citizenship had been denied.

“I was devastated. And I’m not sure exactly why they did it. I did everything they asked me to.”

He appealed the decision, but as he waits for a final verdict, his lawyer says his green-card status may also now be in question.

In late November, the Trump administration announced they would end temporary protected status for Haitians who came to the U.S. after the deadly 2010 earthquake. Charles’s wife was a recipient of that protection and without him becoming a citizen, he would be unable to vouch for her.

But Charles’s biggest concern is his daughter. Although she is in her 20s and a U.S. citizen, she has severe disabilities that make it impossible for her to live by herself.

Charles is unaware of Miller’s new plan to limit citizenship for immigrants who have used public assistance. But it is likely to affect him because he has used public assistance to help care for his daughter, so she could end up further hurting his chances for citizenship.

Though its effects could be far-reaching, the proposal to limit citizenship to immigrants who have not used public assistance does not appear to need congressional approval. As the Clinton administration did in 1999, the Trump administration would be redefining the term “public charge,” which first emerged in immigration law in the 1800s in order to shield the U.S. from burdening too many immigrants who could not contribute to society.

Rosemary Jenks, executive vice president of NumbersUSA, which promotes limited immigration, said the new rule and the increased scrutiny around green card and citizenship applications are all part of a new focus at DHS on enforcing the law and preventing fraud.

“Applications for renewal or adjustment of status that have been filed with the government before are being re-examined to look for fraud,” Jenks said.

In light of this, immigration attorneys are cautioning their clients before moving from green-card status to citizenship.

Rose Hernandez is the supervising attorney at the Tennessee Immigrant and Refugee Rights Coalition’s naturalization clinic. She said the clinic’s model has completely changed in light of the crackdown. She now sends six information requests to government agencies to check on green-card holders’ backgrounds before she advises them to file for citizenship. If the government finds something she doesn’t, the fear is the applicants could lose their green cards and be sent home.

And other immigration attorneys are preparing to push back fiercely against the public charge rule.

“Any policy forcing millions of families to choose between the denial of status and food or health care would exacerbate serious problems such as hunger, unmet health needs, child poverty and homelessness, with lasting consequences for families’ wellbeing and long-term success and community prosperity,” said the National Immigration Law Center in a statement.

By Julia Ainsley/NBC
Posted by The NON-Conformist

Donald Trump’s feud with Charles Koch widens as GOP chair joins fray

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The Republican National Committee is diving into President Trump’s battle with Charles Koch, warning GOP donors to stay away from the billionaire.

It’s official: With less than 100 days to go before the November midterms, the war within the Republican party just got a lot bigger.

The Republican National Committee is diving into President Donald Trump’s battle with Charles Koch, warning GOP donors to stay away from the conservative billionaire.

“Some groups who claim to support conservatives forgo their commitment when they decide their business interests are more important than those of the country or Party,” RNC chair Ronna Romney McDaniel wrote in a Thursday afternoon email to contributors. “This is unacceptable.”

The letter also made a point to underscore that the GOP is the president’s party, in a potential warning shot to other conservatives who might be considering publicly distancing themselves from Trump during the midterms

The implied threat to GOP candidates – the RNC “is the only entity which can be trusted with the data” needed to win, Romney wrote – follows a week-long exchange of critical comments between Trump and Koch officials.

Posted by Libergirl

In Latest Attempt to Harm Struggling Families, Trump Urges Lawmakers to Push One Million Americans Off Food Stamp Program

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With both houses of Congress preparing to merge their two versions of the farm bill, President Donald Trump announced his hope on Thursday that lawmakers will reach an agreement that kicks one million Americans off the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps.

In the House’s version of the farm bill, adults between the ages of 19 and 59 would be required to either work or be enrolled in a job training program 20 hours per week to qualify for assistance.

The Senate did not include work requirements in its bill. Trump’s declaration that the Senate “should go to 51 votes” signaled the White House’s hope that Senate Majority Leader Mitch McConnell (R-Ky.) will abandon the filibuster, making it easier for Republicans to pass a farm bill that would cut down on food stamp recipients.

Work requirements for SNAP benefits are expected to reduce government spending by $20 billion over the next decade. Trump is pushing Congress to pass the measure seven months after passing the GOP tax law, which the Congressional Budget Office (CBO) projects will add nearly $2 trillion to the federal deficit within 10 years.

The Republican Party is currently working to expand on its tax legislation, with the Trump administration willing to bypass Congress in order to cut taxes on capital gains, according to the New York Times.

More from Common Dreams

Posted by Libergirl

 

The facts about Trump’s policy of separating families at the border

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“I hate the children being taken away. The Democrats have to change their law. That’s their law.”
— President Trump, in remarks to reporters at the White House, June 15

“We have the worst immigration laws in the entire world. Nobody has such sad, such bad and actually, in many cases, such horrible and tough — you see about child separation, you see what’s going on there.”
— Trump, in remarks at the White House, June 18

“Because of the Flores consent decree and a 9th Circuit Court decision, ICE can only keep families detained together for a very short period of time.”
— Attorney General Jeff Sessions, in a speech in Bozeman, Mont., June 7

“It’s the law, and that’s what the law states.”
— White House press secretary Sarah Huckabee Sanders, at a news briefing, June 14

“We do not have a policy of separating families at the border. Period.”
— Homeland Security Secretary Kirstjen Nielsen, on Twitter, June 17

The president and top administration officials say U.S. laws or court rulings are forcing them to separate families that are caught trying to cross the southern border.

These claims are false. Immigrant families are being separated primarily because the Trump administration in April began to prosecute as many border-crossing offenses as possible. This “zero-tolerance policy” applies to all adults, regardless of whether they cross alone or with their children.

The Justice Department can’t prosecute children along with their parents, so the natural result of the zero-tolerance policy has been a sharp rise in family separations. Nearly 2,000 immigrant children were separated from parents during six weeks in April and May, according to the Department of Homeland Security.

The Trump administration implemented this policy by choice and could end it by choice. No law or court ruling mandates family separations. In fact, during its first 15 months, the Trump administration released nearly 100,000 immigrants who were apprehended at the U.S.-Mexico border, a total that includes more than 37,500 unaccompanied minors and more than 61,000 family members.

Children continue to be released to their relatives or to shelters. But since the zero-tolerance policy took effect, parents as a rule are being prosecuted. Any conviction in those proceedings would be grounds for deportation.

We’ve published two fact-checks about family separations, but it turns out these Trumpian claims have a zombie quality and keep popping up in new ways.

In the latest iteration, Homeland Security Secretary Kirstjen Nielsen tweeted and then said at a White House briefing that the administration does not have “a policy of separating families at the border.” This is Orwellian stuff. Granted, the administration has not written regulations or policy documents that advertise, “Hey, we’re going to separate families.” But that’s the inevitable consequence, as Nielsen and other Trump administration officials acknowledge.

“Operationally what that means is we will have to separate your family,” Nielsen told NPR in May. “That’s no different than what we do every day in every part of the United States when an adult of a family commits a crime. If you as a parent break into a house, you will be incarcerated by police and thereby separated from your family. We’re doing the same thing at the border.”

Although we’ve fact-checked these family-separation claims twice, we hadn’t had the opportunity to assign a Pinocchio rating yet. We’ll do so now.

The Facts

Since 2014, hundreds of thousands of children and families have fled to the United States because of rampant violence and gang activity in El Salvador, Guatemala and Honduras. U.S. laws provide asylum or refugee status to qualified applicants, but the Trump administration says smugglers and bad actors are exploiting these same laws to gain entry. Nielsen says the government has detected hundreds of cases of fraud among migrants traveling with children who are not their own. President Trump says he wants to close what he describes as “loopholes” in these humanitarian-relief laws.

The Central American refugee crisis developed during President Barack Obama’s administration and continues under Trump. The two administrations have taken different approaches. The Justice Department under Obama prioritized the deportation of dangerous people. Once he took office, Trump issued an executive order rolling back much of the Obama-era framework.

Obama’s guidelines prioritized the deportation of gang members, those who posed a national security risk and those who had committed felonies. Trump’s January 2017 executive order does not include a priority list for deportations and refers only to “criminal offenses,” which is broad enough to encompass serious felonies as well as misdemeanors.

Then, in April 2018, Attorney General Jeff Sessions rolled out the zero-tolerance policy.

When families or individuals are apprehended by the Border Patrol, they’re taken into DHS custody. Under the zero-tolerance policy, DHS officials refer any adult “believed to have committed any crime, including illegal entry,” to the Justice Department for prosecution. If they’re convicted, that triggers deportation proceedings.

Illegal entry is a misdemeanor for first-time offenders, and a conviction is grounds for deportation. Because of Trump’s executive order, DHS can deport people for misdemeanors more easily, because the government no longer prioritizes the removal of dangerous criminals, gang members or national-security threats. (A DHS fact sheet says, “Any individual processed for removal, including those who are criminally prosecuted for illegal entry, may seek asylum or other protection available under law.”)

Families essentially are put on two different tracks. One track ends with deportation. The other doesn’t.

After a holding period, DHS transfers children to the custody of the Office of Refugee Resettlement (ORR) in the Department of Health and Human Services. They spend an average 51 days at an ORR shelter before they’re placed with a sponsor in the United States, according to HHS. The government is required to place these children with family members whenever possible, even if those family members might be undocumented immigrants. “Approximately 85 percent of sponsors are parents” who were already in the country “or close family members,” according to HHS. Some children have no relatives available and in those cases the government may keep them in shelters for longer periods of time while suitable sponsors are identified and vetted.

Adding it all up, this means the Trump administration is operating a system in which immigrant families that are apprehended at the border get split up, because children go into a process in which they eventually get placed with sponsors in the country while their parents are prosecuted and potentially deported.

ENOUGH of the misinformation. This Administration did not create a policy of separating families at the border. pic.twitter.com/y0uuYUkSEL

— The White House (@WhiteHouse) June 18, 2018

This is a question of Trump and his Cabinet choosing to enforce some laws over others. The legal landscape did not change between the time the Trump administration released nearly 100,000 immigrants during its first 15 months and the time the zero-tolerance policy took effect in April 2018.

What changed was the administration’s handling of these cases. Undocumented immigrant families seeking asylum previously were released and went into the civil court system, but now the parents are being detained and sent to criminal courts while their kids are resettled in the United States as though they were unaccompanied minors.

The government has limited resources and cannot prosecute every crime, so setting up a system that prioritizes the prosecution of some offenses over others is a policy choice. The Supreme Court has said, “In our criminal justice system, the government retains ‘broad discretion’ as to whom to prosecute.” To charge or not to charge someone “generally rests entirely” on the prosecutor, the court has said.

Katie Waldman, a spokeswoman for Nielsen, said the administration does not have a family-separation policy. But Waldman agreed that Trump officials are exercising their prosecutorial discretion to charge more illegal-entry offenses, which in turn causes more family separations. The Obama administration also separated immigrant families, she said.

“We’re increasing the rate of what we were already doing,” Waldman said. “Instead of letting some slip through, we’re saying we’re doing it for all.”

Waldman sent figures from fiscal 2010 through 2016 showing that, out of 2,362,966 adults apprehended at the southern border, 492,970, or 21 percent, were referred for prosecution. These figures include all adults, not just those who crossed with minor children, so they’re not a measure of how many families were separated under Obama.

“During the Obama administration there was no policy in place that resulted in the systematic separation of families at the border, like we are now seeing under the Trump administration,” said Sarah Pierce, a policy analyst at the Migration Policy Institute. “Our understanding is that generally parents were not prosecuted for illegal entry under President Obama. There may have been some separation if there was suspicion that the children were being trafficked or a claimed parent-child relationship did not actually exist. But nothing like the levels we are seeing today.”

Trump administration officials say they’re trying to keep parents informed about their kids.

But some families instead have wound up in wrenching scenarios.

“Some of the most intense outrage at the measures has followed instances of parents deported to Central America without their children or spending weeks unable to locate their sons and daughters,” The Washington Post’s Nick Miroff reported. “In other instances, pediatricians and child advocates have reported seeing toddlers crying inconsolably for their mothers at shelters where staff are prohibited from physically comforting them.”

Administration officials have pointed to a set of laws and court rulings that they said forced their hand:

  • A 1997 federal consent decree that requires the government to release all children apprehended crossing the border. The “Flores” consent decree began as a class-action lawsuit. The Justice Department negotiated a settlement during President Bill Clinton’s administration. According to a 2016 decision by the U.S. Court of Appeals for the 9th Circuit, the Flores settlement requires the federal government to release rather than detain all undocumented immigrant children, whether they crossed with parents or alone. The agreement doesn’t cover any parents who might be accompanying those minors, but it doesn’t mandate that parents be prosecuted or that families be separated. Moreover, Congress could pass a law that overrides the terms of the Flores settlement. Waldman said the Flores settlement requires the government to keep immigrant families together for only 20 days, but no part of the consent decree requires that families be separated after 20 days. Courts have ruled that children must be released from detention facilities within 20 days under the Flores consent decree, but none of these legal developments prevents the government from releasing parents along with children.
  • A 2008 law meant to curb human trafficking called the Trafficking Victims Protection Reauthorization Act (TVPRA). This law covers children of all nationalities except Canadians and Mexicans. Central American children who are apprehended trying to enter the United States must be released rather than detained under the terms of the TVPRA, and they’re exempt from prompt return to their home countries. The law passed with wide bipartisan support and was signed by a Republican president, George W. Bush. No part of the TVPRA requires family separations.
  • The Immigration and Nationality Act of 1952. This comprehensive law governs U.S. immigration and citizenship and makes a person’s first illegal entry into the United States a misdemeanor. Clinton, Bush and Obama — the presidents who were in office during the immigration boom of the past few decades — never enforced the INA’s illegal-entry provision with the Trump administration’s zeal. The INA says nothing about separating families. It was sponsored by Democrats and passed by a Democratic-held Congress. President Harry Truman, also a Democrat, tried to veto the bill, describing it as a reactionary and “un-American” measure meant to keep out immigrants from Eastern Europe. Congress overrode his veto.

“What has changed is that we no longer exempt entire classes of people who break the law,” Nielsen said at a White House briefing June 18. “Everyone is subject to prosecution.”

It’s unclear whether 100 percent of adults are being prosecuted. Experts on the ground say there are not enough resources on the border to process all these cases. Trump administration officials say immigrants should show up at a port of entry to request asylum if they want to avoid prosecution, but there’s usually a big crowd and people often get turned away at these entry points, according to reporting from Texas Monthly.

It’s strange to behold Trump distancing himself from the zero-tolerance policy (“the Democrats gave us that law”) while Nielsen claims it doesn’t exist (“it’s not a policy”) and Sessions defends it in speech after speech.

“We do have a policy of prosecuting adults who flout our laws to come here illegally instead of waiting their turn or claiming asylum at any port of entry,” Sessions said in a speech on June 18 in New Orleans. “We cannot and will not encourage people to bring children by giving them blanket immunity from our laws.”

In a June 7 speech, he said: “I hope that we don’t have to separate any more children from any more adults. But there’s only one way to ensure that is the case: it’s for people to stop smuggling children illegally. Stop crossing the border illegally with your children. Apply to enter lawfully. Wait your turn.”

The attorney general also suggested on June 7 that legal developments are forcing his hand. “Because of the Flores consent decree and a 9th Circuit Court decision, ICE can only keep families detained together for a very short period of time,” he said. But as we’ve explained, this is misleading. Neither the consent decree nor the court ruling forces the government to separate families. What they do provide is accommodations for children that the government could extend to parents if it wanted to.

For Trump, the family-separation policy is leverage as he seeks congressional funding for his promised border wall and other immigration priorities, according to reporting by The Washington Post. Top DHS officials have said that threatening adults with criminal charges and prison time would be the “most effective” way to reverse the rising number of illegal crossings.

The Pinocchio Test

The doublespeak coming from Trump and top administration officials on this issue is breathtaking, not only because of the sheer audacity of these claims but because they keep being repeated without evidence. Immigrant families are being separated at the border not because of Democrats and not because some law forces this result, as Trump insists. They’re being separated because the Trump administration, under its zero-tolerance policy, is choosing to prosecute border-crossing adults for any offenses.

This includes illegal-entry misdemeanors, which are being prosecuted at a rate not seen in previous administrations. Because the act of crossing itself is now being treated as an offense worthy of prosecution, any family that enters the United States illegally is likely to end up separated. Nielsen may choose not to call this a “family separation policy,” but that’s precisely the effect it has.

Sessions, who otherwise owns up to what’s happening, has suggested that the Flores settlement and a court ruling are forcing his hand. They’re not. At heart, this is an issue of prosecutorial discretion: his discretion.

The Trump administration owns this family-separation policy and its spin deserves Four Pinocchios.

Four Pinocchios

by Salvador Rizzo/WAPO
Posted by The NON-Conformist

U.S. and China announce new tariffs in escalation of trade war

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President Trump followed through Friday on his threat to crack down on China for its “very unfair” trade practices, imposing a 25 percent tariff on $50 billion in Chinese imports.

Beijing quickly responded. In a late-night statement, China’s Ministry of Commerce said it would impose trade barriers of the “same scale and the same strength.”

The Chinese government said Trump’s tariffs were “damaging” relations and “undermining the world trade order.”

U.S. and Chinese officials in recent weeks had made progress on a deal that involved up to $70 billion in additional purchases of American products. But the Chinese offer was now “invalid,” the statement said.

Chinese officials, who had signaled their intention to retaliate if Trump went through with his tariff threats, are targeting the president’s supporters in farm states and the industrial Midwest.

Anticipating the Chinese response, the president said the United States would “pursue additional tariffs,” raising the specter of the tit-for-tat trade war that business leaders and many congressional Republicans fear.

In a short White House statement, the president said the import tax would apply to “goods from China that contain industrially significant technologies.”

Friday’s action follows an administration report in March that complained China had forced foreign companies to surrender their technology secrets in return for market access and had pilfered other advanced U.S. technologies through a campaign of cybertheft and investment in Silicon Valley start-ups.

“These practices . . . harm our economic and national security and deepen our already massive trade imbalance with China,” Trump said.

The United States last year ran up a $375 billion deficit in goods trade with China, a figure the president blames on Chinese trade barriers. Most economists say the gap is the result of broader forces such as Americans’ low savings rate.

On April 6, the administration published a proposed list of 1,333 products targeted for tariffs. After hearing objections from business groups, U.S. Trade Representative Robert E. Lighthizer dropped 515 items and added 284 new ones.

As a result, the tariffs will be imposed in two steps. On July 6, customs officers will begin collecting the tax on an initial basket of goods valued at $34 billion, which were on the initial list. The Office of the U.S. Trade Representative (USTR), meanwhile, will field comments on the new items on the list, valued at $16 billion.

“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs,” the president said.

USTR also plans to establish a process for U.S. companies to request permission to continue importing the targeted items on a duty-free basis, if no alternative suppliers exist.

The Chinese government is pursuing a $300 billion program of subsidies to enable its companies to dominate next-generation technologies such as artificial intelligence, robotics and quantum computing, upping the stakes for Trump’s efforts to preserve U.S. technological secrets.

China has a history of targeting industries such as steel or solar energy for growth, which results in excessive investment by its state-led firms. That, in turn, swamps global markets, driving prices to unsustainable levels and making it all but impossible for private companies to compete, a senior administration official said.

Unless the United States can somehow force China to change its industrial policies, American companies will lose out in a range of advanced technology markets, the official said.
“This is not market capitalism,” the official said, speaking anonymously to brief reporters. “These are state policies where they are targeting certain industries.”
Trump’s complaints about China’s trade practices are shared by many business leaders. But there is little support for using import taxes, which are paid by Americans, as a tool against the Chinese.
“Imposing tariffs places the cost of China’s unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers and ranchers. This is not the right approach,” said Tom Donohue, president and chief executive of the U.S. Chamber of Commerce.
The U.S. announcement comes at a complex juncture in U.S.-China relations.
Following a summit in Singapore between Trump and North Korean leader Kim Jong Un, Secretary of State Mike Pompeo stopped in Beijing for meetings with President Xi Jinping and other top Chinese leaders.

On Thursday, Pompeo thanked Xi for China’s help with North Korea and even wished the Chinese president a happy birthday.

But at a news conference with China’s foreign minister, Wang Yi, tension over trade was clear. Pompeo said the U.S. trade deficit with China is still too high, and Wang called for Washington to make a “wise choice” on tariffs.

After Trump’s statement Friday, Lu Xiang, a trade expert at the Chinese Academy of Sciences in Beijing, warned that relations between the two countries were heading to their lowest point since China began its economic reforms in the late 1970s.

“This is like holding up a pistol, putting the finger on the trigger,” he said of Trump’s actions. “It’s just one step away from pulling the trigger and firing the pistol. It’s a very dangerous and sensitive moment now.”

by David J. Lynch and Emily Rauhala/WAPO

Posted by The NON-Conformist

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