Trump Threatens NAFTA and Government Shutdown in Phoenix Over Border Wall.
Trump’s comments in his rally on Tuesday, August 22nd, 2017 in Phoenix, Arizona where he suggested that he might terminate Nafta at some point caused the yen to strengthen, while the Mexican peso weakened 0.2 percent. In his speech, he called Democrats obstructionists and said that Democrats want to cause everyone to be unsafe. The stock market has viewed his comments with concern.
“His comments on the NAFTA negotiations once again brings the general direction toward obstructing free trade, and raises concerns over its impact on global trade,” said Hideyuki Ishiguro, a senior strategist at Daiwa Securities Co. in Tokyo.
Trump been putting pressure on Congress to act soon — requesting $1.6 billion to begin construction of the wall, with Congress under pressure to pass some kind of spending bill to keep the government open after Sept. 30. It remains to be seen as to whether or not Trump will get his request — his political capital is falling with people such as Sen. John McCain (AZ) going after him and Sen. Jeff Flake (AZ) both opposing him — making it harder for him to try to keep his campaign promises. Trump Threatens Government Shutdown Over Border Wall Funding.
In the same speech, Trump asked for tax-cuts and asked for Democrats to support him. Mitch McConnell said there’s a 0% chance that Congress won’t come to an agreement about the shutdown. He seems to be optimistic. Mitch McConnell has said that he sees a zero percent chance that congress won’t come to an agreement about shut-down.
According to CNN, Speaker of the House Paul Ryan has been approaching the government shut-down situation cautiously — with not trying to force things as he knows that with Republicans controlling the House, the Senate and the WH for government to shut-down would be a disaster — it’s one thing when a Democrat controls the Presidency and Republicans are trying to force a shut-down, but another thing when Republicans control all branches of the government Trump’s shutdown threat could make history — and not in a good way.
According to the facts from CNN, government shut-downs do not last very long. Government shut-downs during the Reagan and Bush years only lasted for a few days, the shut-downs in the Clinton administration only lasted for a week and the second one was done in 3 weeks, then the one in the Obama administration in 2013 when the government refused to sign a deal on the budget — it shut down for 16 days.
In this case, with Trump having far less political capital than he used to — why is he picking a fight with Congress now? Secondly, could his most recent pardon of Joe Arpaio — a hardliner anti-immigrant law-enforcement personnel in Arizona be trying to tell Congress a lesson as to how he sees he wants to get things done — through the stroke of a pen rather than just through Congressional action? Paul Ryan has a different message Trump was wrong to pardon controversial US sheriff, Ryan says.
“Law-enforcement officials have a special responsibility to respect the rights of everyone in the United States. We should not allow anyone to believe that responsibility is diminished by this pardon,” Ryan said in a statement.
“The speaker does not agree with the decision,” Ryan’s spokesman Doug Andres said.
I will continue to look for updates as to whether or not Trump will pull out of NAFTA or shut down the government. On July 17th, 2017 — Trump said that he would renegotiate NAFTA and the White House sent a letter of notice to Congress to renegotiate it Trump administration unveils goals in renegotiating NAFTA.
Ideally, he would want to revise NAFTA to balance the trade-deficit — if he is going back to his campaign rhetoric, that could mean either he wants to use his campaign rhetoric at rallies, or, something went south during his thinking and he wants to change his stance. Trump said that he would not pardon the immigration hard-liner either during the rally Trump will not pardon Arpaio at Phoenix rally,
White House says then did so a few days later. We have a President who isn’t afraid to say what he thinks and isn’t afraid to follow-through on it. So, if he’s changed his mind — then based on the events that have happened recently, it would be interesting to see whether or not he follows through on shutting down NAFTA as well. Time will tell.