On Monday President Trump sign an executive order repealing the Trans-Pacific Partnership. This was an 12-nation agreement on trade with mostly Asian “manufacturers.
During the campaign Trump called the TPP “a potential disaster for our country.” The executive order merely stops the Senate from considering the TPP, since it has not been ratified yet.
Although there was not word on it, Trump has also slammed NAFTA, the North American trade pact between Canada, Mexico and the US.
Trump has cited this trade pact signed by former President Clinton as a major reason for the loss of manufacturing jobs in the US.
I assume there will be discussions with Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto soon to go about amending NAFTA.
Following the trade announcement on Monday, Trump met in the White House with a group of construction trade union chiefs including Teamsters chief Jimmy Hoffa, who all praised the TPP announcement.
When was the last time a Republican president had union leaders in the Oval Office to discuss helping their membership with jobs?
This is Trump being the master of the deal, by playing to traditional Democratic Party voting blocs, some of who crossed over to his side at the election. Look at Michigan and Ohio and the breaking of the wall in the upper Midwest.
Personally, I don’t see how a company like Nike can make sneakers for 12 cents a pair in Vietnam and charge $60 here for them. Sure Nike’s margins are fat, but does that benefit workers in Vietnam or consumers in US? Should that be something the US government support that business plan?
No, no matter how you slice it. Make Vietnam bring in industry that will pay its people a decent wage, while making Nike look for a business plan to make those shoes in the US or in Vietnam without the might of the US government defending their manufacturing plans.