Trump 2.0 official thread

MortyandRick

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Wow, why would they agree to such a lopsided deal?

Make me wonder if Trump can strong arm these counties to make such lopsided deals can't china do the same? I know china doesn't want to be the bully but still they need to guard against anything that's totnhr detriment of china. What's their definition of transshipment?
 

00CuriousObserver

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Trump Softens Tone on China to Secure Xi Summit, Trade Deal

  • President Donald Trump has dialed down his confrontational tone with China in an effort to secure a summit with counterpart Xi Jinping and a trade deal with the world’s second-largest economy, people familiar with internal deliberations said.
  • Trump is now focused on cutting purchase deals with Beijing and celebrating quick wins instead of addressing root causes of the trade imbalances, people said.
  • Trump's gentler handling of China is causing a rift among his advisers, with some members of his trade team wanting to hold a tough line against Beijing, people familiar with their deliberations said.
... In meetings with his staff, Trump is often the least hawkish voice in the room, some of the people said.
 

CMP

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Trump Softens Tone on China to Secure Xi Summit, Trade Deal

  • President Donald Trump has dialed down his confrontational tone with China in an effort to secure a summit with counterpart Xi Jinping and a trade deal with the world’s second-largest economy, people familiar with internal deliberations said.
  • Trump is now focused on cutting purchase deals with Beijing and celebrating quick wins instead of addressing root causes of the trade imbalances, people said.
  • Trump's gentler handling of China is causing a rift among his advisers, with some members of his trade team wanting to hold a tough line against Beijing, people familiar with their deliberations said.
... In meetings with his staff, Trump is often the least hawkish voice in the room, some of the people said.
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IMO this article was written in collaboration with dissenting officials in the Trump administration to try and pressure him to cancel the concessions in the trade deal. Given the US has already started stockpiling a significant amount of rare earth magnets at 3x the import volumes compared to same time last year, if the deal collapses, China will have less leverage compared to in June.

I hope they manage to get Trump in Beijing for September 3 to watch the parade before the summit. It'll be wild to see Trump there with Putin, Kim, etc.
 
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Wrought

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Unusually positive comments from Trump, but it corroborates the previous Bloomberg piece.

US President Donald Trump said on Wednesday that Beijing is “making big steps” in efforts to control the flow of fentanyl, an issue that the American leader has used to justify tariffs that he has slapped on imports from China. “I think China has been helping out,” Trump told reporters in the Oval Office. “I mean, it’s been a terrible situation for many years with fentanyl, but since I came here, we’re talking to them, and they’re making big steps ... You know that they’re being penalised with tariffs because of the fentanyl but they want to do something.”

Trump’s positive assessment differs sharply the strident tone that he used when announcing in February that the US would not only impose his originally outlined 10 per cent tariffs on all Chinese imports beginning on Tuesday, but that these were now being doubled for an effective rate of 20 per cent.

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CMP

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Unusually positive comments from Trump, but it corroborates the previous Bloomberg piece.



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"We have a 20 per cent [tariff], so they pay billions of dollars and billions of dollars in damages for what they’ve done, and I think we’re going to work it out so that China is going to end up going from that to giving the death penalty to the people that create this."

Sounds like the 20% tariffs on China could go away. If that happens, the US could end up having the lowest tariff rate on China, killing the transshipment business. My guess is Trump really doesn't want Vietnam and Mexico benefiting from transshipment.

Getting everything direct from China with lowest tariffs possible will kill any inflation, so I can see the appeal.
 
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GiantPanda

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"We have a 20 per cent [tariff], so they pay billions of dollars and billions of dollars in damages for what they’ve done, and I think we’re going to work it out so that China is going to end up going from that to giving the death penalty to the people that create this."

Sounds like the 20% tariffs on China could go away. If that happens, the US could end up having the lowest tariff rate on China, killing the transshipment business. My guess is Trump really doesn't want Vietnam and Mexico benefiting from transshipment.

Prepare for a great big helping of TACO!
 

CMP

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Prepare for a great big helping of TACO!
I can't be sure it's even just TACO alone. Though it's probably at least 75% TACO. A huge part of the inflation thesis for the next 12 months is that US tariffs on China and all major transshipment points (Mexico, Vietnam, India) will jack up costs for US companies and consumers. If you instead lower tariffs for just China, that kills the inflation thesis entirely. Low inflation and higher than normal unemployment (exacerbated by the government layoffs) means it's time to lower interest rates, a huge Trump agenda item. That could then juice the stock market.
 

GiantPanda

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I can't be sure it's even just TACO alone. Though it's probably at least 75% TACO. A huge part of the inflation thesis for the next 12 months is that US tariffs on China and all major transshipment points (Mexico, Vietnam, India) will jack up costs for US companies and consumers. If you instead drop tariffs on just China, that kills the inflation thesis entirely. Low inflation and higher than normal unemployment (exacerbated by the government layoffs) means it's time to lower interest rates, a huge Trump agenda item. That could then juice the stock market.

True. From China's standpoint, it's a win either way. China increased overall exports during the trade and tariff wars and that only normalizes more with everyone US tariffs moving to China's.
 

zyklon

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Do you know if this fellow has any written articles that might be perused? Am curious about these 'viable' plans. Haven't seen one yet from the Americans.

No one ever became Under Secretary of Defense for Policy by being completely candid about their views, preferences and expectations. This is especially true when it comes to unpalatable, if not outright bitter truths about America's sole pacing threat: a nation state that many Americans despise for its supposedly communist regime, despite widespread inability to so much as even define said form of governance.

As you can imagine, there is no singular document attributable to Elbridge Colby laying out the entirety of his containment strategy against China in a way that is detailed, candid, current and publicly accessible, at least to the best of my knowledge.



The closest thing to what you're looking for would be his 2021 book: "
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."

This text contains a fairly comprehensive and detailed framework, if not instructions for containing the rise of China. However, this book is fundamentally defense and broadly hard power centric. As such, lacking in coverage of certain facets of Sino-American competition and conflict, and applicable approaches for those domains.

Moreover, this book was written prior to the events of October 7, 2023 when "shit hit the fan" in Israel and then across the region; the start of the full scale Russo-Ukrainian War on February 24, 2022; and the Biden administration's intensified and multipronged efforts to strangle China's semiconductor industry. So in a certain context it's more theoretical than current, but it does communicate the essence of Mr. Colby's vision and framework — specifically what he terms an "anti-hegemonic coalition," rather ironically assembled under American hegemony — for denying the emergence of a Chinese alternative.

On top of that, the 2025 National Defense Strategy, which is currently being drafted under his purview, should provide a more current picture of Mr. Colby's and the broader administration's (likely idealized, but TBA) approach toward China, even in its unclassified or summarized rendition.



Moving forward, if you have the appetite for digesting a broader set of Mr. Colby's
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,
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and current policymaking, you should be able to achieve a reasonable degree of clarity on just what the sitting USDP is aiming for.

That is absolutely not to say the political will will be there and the requisite leadership will magically, if ever manifest for Mr. Colby to meaningfully pursue his agenda against China, absent a truly extraordinary black swan event or series of black swan events.

If so, I would recommend reviewing some of the
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as they considered his nomination for USDP. Though do keep in mind that such nominees, however senior and pedigreed, still have to be cautious with their words before legislators — to get confirmed and to maintain a healthy working relationship with those who hold the power of the purse over their parent agencies — even if Mr. Colby is arguably more blunt than most SES level officials serving in similarly politicized capacities.

Happy to check my notes if you want additional relevant materials to churn through, but best to start with the aforementioned linked texts and videos.



As far as ongoing policymaking intended for contesting the rise of Pax Sinica goes, you may wish to consider the following in terms of Mr. Colby's lines of effort:

(1) Dumping all non-pacing threats (e.g. Russia, Iran, North Korea, Venezuela, etc.) on allies or in totality. This is why
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obsessing over the exaggerated Iranian threat, as well as both
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and
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eager to continue the proxy war against Russia via Ukraine are less than fond of Elbridge Colby.


Not to say I agree with the sitting USDP on his policy preferences, but senior officials who are this unpopular are usually more principled than ambitious, which makes them arguably decent human beings vis-a-vis their typical peers.

(2) Reprioritizing finite American resources toward peer competition in general, and around Chinese containment in particular. This would include deprioritizing CT and COIN capabilities; the potential, if not probable
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; and reinvigorating American nuclear deterrence, inevitably at immense expense, among other things.

Guy is even
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, and sees it as a mechanism for reducing South Korean dependency on its American security guarantees, so Washington can concentrate finite resources against Beijing! TBF, it's an aggressive, if not provocative and dangerous proposal, but it's arguably better reasoned and more logical than what the US has been doing for the last decade or two.

(3) Impressing US allies like Japan and Australia, and should the opportunity arise even neutral regional players, into an overt "anti-hegemonic coalition" against China, which translate into persuading, if not strong-arming technically sovereign countries into
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and
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targeting China.

Interestingly, in his 2021 book, not only did Mr. Colby envision every country from Vietnam and South Korea to Malaysia and India joining his notional "anti-hegemonic coalition," but he even believed it would be plausible to pull Russia to the anti-China side of the ledger!

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However, he appears to have since tampered his wild dreams of an alliance with Russia, and has even openly rejected notions of an "Asian NATO." Guess Bridge must have realized that Trumpian tariff wars, and assembling an "anti-hegemonic coalition" don't mix. :D

In addition, the sitting USDP is reportedly not actively courting NATO countries to confront China, at the current juncture, even though some NATO member states have conducted naval deployments to the Pacific in recent years to metaphorically shake their fists at Beijing, and/or feigned willingness to confront the Celestial Empire. Mr. Colby is likely wise to not count on the Europeans: he knows that if they're reluctant to send troops to somewhere as close to home as Ukraine, they're not going to want to commit forces on the other side of the world against China.

(4) Convincing, if not outright forcing the current DPP-led regime in Taipei to significantly and quantifiably increase its commitment to the military defense of Taiwan, should they expect US intervention in the event of hostilities against the PLA.

To this end,
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from the current level of <3% of GDP. :cool:



To be totally fair and candid, and let's not mince words here: Elbridge Colby should know with complete clarity that the Trump administration will fail to assemble the grand anti-China coalition he has proposed. The current administration is too disliked, if not despised by allies and adversaries alike to cultivate the complex alignments and unpalatable commitments needed to even reasonably experiment with Mr. Colby's approach.

However, what is viable(-ish) if we're to be generous about Mr. Colby's approach is that it is founded upon clarity — in particular in its recognition of both the limits of American power and the might of extant and emerging Chinese capabilities — whereas the current US approach is one of make belief: the DoD pretend to make progress in deterring China, while Congress pretend to parameterize and resource the DoD for deterring China.

Even though the Trump administration will be unable to realize Mr. Colby's vision, his approach imbue clarity in the broader USG that gives Washington a chance, however slim, to maintain its hegemony, or more likely, a semblance thereof.

At a minimum, clarity will discourage Washington from entering a conflict it can't win, and preserve finite capabilities for another day or a lesser adversary. OTOH, continuing the status quo is a guaranteed dead end for Pax Americana.
 
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