Friday, July 13, 2018
China Vows to Retaliate Against the Trump Administration’s Threat of Another $200 Billion in Tariffs - TIME
China Vows to Retaliate Against the Trump Administration’s Threat of Another $200 Billion in Tariffs
Posted: 11 Jul 2018 07:06 PM PDT
(BEIJING) — China’s government vowed Wednesday to take “firm and forceful measures” as the U.S. threatened to expand tariffs to thousands of Chinese imports like fish sticks, apples and French doors, the latest salvo in an escalating trade dispute that threatens to chill global economic growth.
China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on U.S. imports. There are fears that Beijing could attempt to disrupt operations of American automakers, retailers and others that see China as a key market.
The spiraling conflict stems from Washington’s complaint that Beijing steals or pressures companies to hand over technology and concerns that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership.
A possible second round of tariff hikes announced Tuesday by the U.S. Trade Representative targets a $200 billion list of Chinese goods. That came four days after Washington added 25 percent duties on $34 billion worth of Chinese goods and Beijing responded by increasing taxes on the same amount of American imports.
The abrupt escalation is “totally unacceptable,” said a Commerce Ministry statement. It said Beijing would take unspecified “necessary countermeasures” to protect its “core interests.”
Asked what Beijing would do, foreign ministry spokeswoman Hua Chunying gave no details but said, “We will take firm and forceful measures.”
The USTR, the federal agency that oversees international trade policy and negotiations, said it was responding to Beijing’s decision to retaliate instead of changing its policies. President Donald Trump has threatened higher tariffs on more than $500 billion of goods, or nearly all of China’s annual exports to the United States.
The USTR will accept public comments on the latest round of tariffs and hold hearings Aug. 20-23 before reaching a decision after Aug. 31, according to a senior U.S. official who briefed reporters on condition of anonymity.
The first U.S. tariff list focused on Chinese industrial products, an attempt to reduce the direct impact on American consumers.
The new list includes vacuum cleaners, furniture, auto and bicycle parts, French doors and plywood. It left untouched U.S.-branded smartphones and laptop computers.
That “will hit the Chinese export sector hard,” said Rajiv Biswas of IHS Markit in a report.
China imports far less from the U.S. than the U.S. imports from China. That means China’s imports of U.S. goods are so small that Beijing “cannot match fresh U.S. tariffs,” said Vishnu Varathan of Mizuho Bank in a report.
China bought $130 billion of U.S. goods last year. Both governments have raised tariffs on $34 billion worth of each other’s goods and already said they are considering additional charges on another $16 billion. That would leave China only $80 billion for further retaliation.
Instead, Beijing has other ways to disrupt American companies’ operations. Regulators can deny or cancel licenses or launch lengthy tax, environmental or anti-monopoly investigations.
Companies are watching U.S. chipmaker Qualcomm Inc., which has waited months for Chinese regulators to decide whether to allow its proposed $44 billion acquisition of NXP Semiconductors. All other major governments have approved the deal.
The economic impact of the conflict already is spreading.
The European Union Chamber of Commerce in China said this week its member companies are rearranging the global flow of their goods to make sure any bound for the United States don’t pass through China.
Members of Congress are increasingly questioning Trump’s tactics. They warned tariffs on imports raise consumer prices and expose U.S. farmers and manufacturers to retaliation.
“Tonight’s announcement appears reckless and is not a targeted approach,” said Senate Finance Chairman Orrin Hatch in a statement.
Envoys from the two sides last met June 3 when Commerce Secretary Wilbur Ross visited Beijing for talks with Vice Premier Liu He. They have given no indication when they might meet again.
Chinese leaders have tried without success to recruit support from Europe and other governments. They criticize Trump’s tactics but share U.S. complaints about Beijing’s industrial policies.
Investors had been taking the trade war in stride but Tuesday’s announcement appeared to dent that optimism.
On Wednesday, China’s main stock index lost 1.8 percent and Japan’s market benchmark fell 1.1 percent. Hong Kong’s main index shed 1.3 percent.
The conflict is “far from over,” warned Hannah Anderson of JP Morgan Asset Management in a report, “and the impact will be global.”
London mayor says the UK is not afraid to call out Trump: ‘We think you’re wrong’ - CNBC News
London mayor says the UK is not afraid to call out Trump: ‘We think you’re wrong’
“The great thing about our city is you can have a fraternal and positive relationship with a country and its citizens but disagree in a mature and adult way with the president,” London Mayor Sadiq Khan told CNBC’s Wilfred Frost on Friday morning.
Shortly after arriving in the U.K. on Thursday afternoon, Trump sought to reignite a long-running feud with London’s mayor.
The U.S. president has decided not to tour the U.K.’s capital city during his working visit after hundreds of thousands of Britons vowed to take to the streets to protest against him.
Sam Meredith | @smeredith19
Published July 13, 2018
CNBC.com
President Donald Trump should understand the U.K. will always be prepared to challenge his views in a respectful way — regardless of whether his feelings get hurt, London Mayor Sadiq Khan told CNBC Friday.
“The great thing about our city is you can have a fraternal and positive relationship with a country and its citizens but disagree in a mature and adult way with the president,” London Mayor Sadiq Khan told CNBC’s Wilfred Frost on Friday morning.
“One of the great things about having a best friend as we do with America is we can call you out when we think you’re wrong … I think we shouldn’t be afraid of doing so,” he added.
The U.S. president is currently visiting the U.K. as part of a working visit to meet with Prime Minister Theresa May, Queen Elizabeth II and several other business leaders. He is then expected to travel to Scotland for a weekend of golf.
Long-running feud
Shortly after arriving in the U.K. on Thursday afternoon, Trump sought to reignite a long-running feud with London’s mayor.
“Take a look at the terrorism that is taking place. Look at what is going on in London. I think (Khan) has done a very bad job on terrorism,” Trump told The Sun newspaper in an interview published late Thursday.
“I used to love London as a city. I haven’t been there in a long time … But when they make you feel unwelcome, why would I stay there?”
The U.S. president has decided not to tour the U.K.’s capital city during his working visit after hundreds of thousands of Britons vowed to take to the streets to protest against him.
The main “Stop Trump” rally is expected to attract around 70,000 people on the streets of London on Friday.
Khan: Trump’s presidency is ‘interesting’
When asked what one word he would use to describe Trump’s time in office, Khan replied: “Interesting.”
He went onto add: “It is not for me to respond to the tweets President Trump sends or some of the interviews he gives where he mentions me and he talks about me in ways which I find surprising.”
Meanwhile, a “Trump Baby” blimp was seen flying beside U.K. Parliament on Friday morning, after organizers raised more than £30,000 ($40,000) to pay for its manufacture and inflation.
A 20-foot-tall blimp depicting President Donald Trump as a baby in London on Friday July 13, 2018.
CNBC's Hollie Wong
A 20-foot-tall blimp depicting President Donald Trump as a baby in London on Friday July 13, 2018.
Khan has since defended his decision to grant permission for it to be flown as part of a protest against Trump’s visit.
The balloon depicting the U.S. leader as giant baby is tethered to the grounds of Parliament Square Gardens and will be restricted from floating higher than 30 meters (98 feet). It will fly between 9:30 a.m. and 11:30 a.m London time.
“The great thing about our city is you can have a fraternal and positive relationship with a country and its citizens but disagree in a mature and adult way with the president,” London Mayor Sadiq Khan told CNBC’s Wilfred Frost on Friday morning.
Shortly after arriving in the U.K. on Thursday afternoon, Trump sought to reignite a long-running feud with London’s mayor.
The U.S. president has decided not to tour the U.K.’s capital city during his working visit after hundreds of thousands of Britons vowed to take to the streets to protest against him.
Sam Meredith | @smeredith19
Published July 13, 2018
CNBC.com
President Donald Trump should understand the U.K. will always be prepared to challenge his views in a respectful way — regardless of whether his feelings get hurt, London Mayor Sadiq Khan told CNBC Friday.
“The great thing about our city is you can have a fraternal and positive relationship with a country and its citizens but disagree in a mature and adult way with the president,” London Mayor Sadiq Khan told CNBC’s Wilfred Frost on Friday morning.
“One of the great things about having a best friend as we do with America is we can call you out when we think you’re wrong … I think we shouldn’t be afraid of doing so,” he added.
The U.S. president is currently visiting the U.K. as part of a working visit to meet with Prime Minister Theresa May, Queen Elizabeth II and several other business leaders. He is then expected to travel to Scotland for a weekend of golf.
Long-running feud
Shortly after arriving in the U.K. on Thursday afternoon, Trump sought to reignite a long-running feud with London’s mayor.
“Take a look at the terrorism that is taking place. Look at what is going on in London. I think (Khan) has done a very bad job on terrorism,” Trump told The Sun newspaper in an interview published late Thursday.
“I used to love London as a city. I haven’t been there in a long time … But when they make you feel unwelcome, why would I stay there?”
The U.S. president has decided not to tour the U.K.’s capital city during his working visit after hundreds of thousands of Britons vowed to take to the streets to protest against him.
The main “Stop Trump” rally is expected to attract around 70,000 people on the streets of London on Friday.
Khan: Trump’s presidency is ‘interesting’
When asked what one word he would use to describe Trump’s time in office, Khan replied: “Interesting.”
He went onto add: “It is not for me to respond to the tweets President Trump sends or some of the interviews he gives where he mentions me and he talks about me in ways which I find surprising.”
Meanwhile, a “Trump Baby” blimp was seen flying beside U.K. Parliament on Friday morning, after organizers raised more than £30,000 ($40,000) to pay for its manufacture and inflation.
A 20-foot-tall blimp depicting President Donald Trump as a baby in London on Friday July 13, 2018.
CNBC's Hollie Wong
A 20-foot-tall blimp depicting President Donald Trump as a baby in London on Friday July 13, 2018.
Khan has since defended his decision to grant permission for it to be flown as part of a protest against Trump’s visit.
The balloon depicting the U.S. leader as giant baby is tethered to the grounds of Parliament Square Gardens and will be restricted from floating higher than 30 meters (98 feet). It will fly between 9:30 a.m. and 11:30 a.m London time.
Just wait – Trump's trade war will soon have fallout - Guardian
Just wait – Trump's trade war will soon have fallout
Barry Eichengreen
As with Brexit, the economic effects of uncertainty over tariffs will take time to appear
Fri 13 Jul 2018 19.16 AEST Last modified on Fri 13 Jul 2018 19.35 AEST
An employee welds the joint on a steel pipe at the SAW Pipe Mills
Donald Trump’s trade war, which began with steel and aluminium tariffs, may end up having wider economic fallout. Photograph: Bloomberg via Getty Images
Donald Trump’s phony, blowhard’s trade war just got real.
The steel and aluminium tariffs that the Trump administration imposed at the beginning of June were important mainly for their symbolic value, not for their real economic impact. While the tariffs signified that the US was no longer playing by the rules of the world trading system, they targeted just $45bn of imports, less than 0.25% of GDP in an $18.5tn US economy.
On 6 July, however, an additional 25% tariff on $34bn of Chinese exports went into effect, and China retaliated against an equivalent volume of US exports. An angry Trump has ordered the US trade representative to draw up a list of additional Chinese goods, worth more than $400bn, that could be taxed, and China again vowed to retaliate. Trump has also threatened to impose tariffs on $350bn worth of imported motor vehicles and parts. If he does, the EU and others could retaliate against an equal amount of US exports.
Could Trump's tariff race shift the global economic balance?
Mohamed El-Erian
We are now talking about real money: nearly $1tn of US imports and an equivalent amount of US export sales and foreign investments.
The mystery is why the economic and financial fallout from this escalation has been so limited. The US economy is humming along. The purchasing managers’ index was up again in June. Wall Street has wobbled, but there has been nothing resembling its sharp negative reaction to the Smoot-Hawley Tariff of 1930. Emerging markets have suffered capital outflows and currency weakness, but this is more a consequence of Federal Reserve interest rate hikes than of any announcements emanating from the White House.
There are three possible explanations. First, purchasing managers and stock market investors may be betting that sanity will yet prevail. They may be hoping that Trump’s threats are just bluster, or that the objections of the US Chamber of Commerce and other business groups will ultimately register.
But this ignores the fact that Trump’s tariff talk is wildly popular with his base. One recent poll found that 66% of Republican voters backed Trump’s threatened tariffs against China. Trump ran in 2016 on a protectionist vow that he would no longer allow other countries to “take advantage” of the US. His voters expect him to deliver on that promise, and he knows it.
Second, the markets may be betting that Trump is right when he says that trade wars are easy to win. Other countries that depend on exports to the US may conclude that it is in their interest to back down. In early July, the European commission was reportedly contemplating a tariff-cutting deal to address Trump’s complaint that the EU taxes American cars at four times the rate the US taxes European vehicles.
But China shows no willingness to buckle under US pressure. Canada, that politest of countries, is similarly unwilling to be bullied; it has retaliated with 25% tariffs on $12bn of US goods. And the EU would contemplate concessions only if the US offers some in return – such as eliminating its prohibitive tariffs on imported light pick-up trucks and vans – and only if other exporters like Japan and South Korea go along.
Third, it could be that the macroeconomic effects of even the full panoply of US tariffs, together with foreign retaliation, are relatively small. Leading models of the US economy, in particular, imply that a 10% increase in the cost of imported goods will lead to a one-time increase in inflation of at most 0.7%.
This is simply the law of iterated fractions at work. Imports are 15% of US GDP. Multiply 0.15 by 0.10 (the hypothesised tariff rate), and you get 1.5%. Allow for some substitution away from more expensive imported goods, and the number drops below 1%. And if growth slows because of the higher cost of imported intermediate inputs, the Fed can offset this by raising interest rates more slowly. Foreign central banks can do likewise.
Still, one worries, because the standard economic models are notoriously bad at capturing the macroeconomic effects of uncertainty, which trade wars create with a vengeance. Investment plans are made in advance, so it may take, say, a year for the impact of that uncertainty to materialise – as was the case in the UK following the 2016 Brexit referendum. Taxing intermediate inputs will hurt efficiency, while shifting resources away from dynamic hi-tech sectors in favour of old-line manufacturing will depress productivity growth, with further negative implications for investment. And these are outcomes that the Fed cannot easily offset.
So, for those who observe that the economic and financial fallout from Trump’s trade war has been surprisingly small, the best response is: just wait.
• Barry Eichengreen is professor of economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund.
Barry Eichengreen
As with Brexit, the economic effects of uncertainty over tariffs will take time to appear
Fri 13 Jul 2018 19.16 AEST Last modified on Fri 13 Jul 2018 19.35 AEST
An employee welds the joint on a steel pipe at the SAW Pipe Mills
Donald Trump’s trade war, which began with steel and aluminium tariffs, may end up having wider economic fallout. Photograph: Bloomberg via Getty Images
Donald Trump’s phony, blowhard’s trade war just got real.
The steel and aluminium tariffs that the Trump administration imposed at the beginning of June were important mainly for their symbolic value, not for their real economic impact. While the tariffs signified that the US was no longer playing by the rules of the world trading system, they targeted just $45bn of imports, less than 0.25% of GDP in an $18.5tn US economy.
On 6 July, however, an additional 25% tariff on $34bn of Chinese exports went into effect, and China retaliated against an equivalent volume of US exports. An angry Trump has ordered the US trade representative to draw up a list of additional Chinese goods, worth more than $400bn, that could be taxed, and China again vowed to retaliate. Trump has also threatened to impose tariffs on $350bn worth of imported motor vehicles and parts. If he does, the EU and others could retaliate against an equal amount of US exports.
Could Trump's tariff race shift the global economic balance?
Mohamed El-Erian
We are now talking about real money: nearly $1tn of US imports and an equivalent amount of US export sales and foreign investments.
The mystery is why the economic and financial fallout from this escalation has been so limited. The US economy is humming along. The purchasing managers’ index was up again in June. Wall Street has wobbled, but there has been nothing resembling its sharp negative reaction to the Smoot-Hawley Tariff of 1930. Emerging markets have suffered capital outflows and currency weakness, but this is more a consequence of Federal Reserve interest rate hikes than of any announcements emanating from the White House.
There are three possible explanations. First, purchasing managers and stock market investors may be betting that sanity will yet prevail. They may be hoping that Trump’s threats are just bluster, or that the objections of the US Chamber of Commerce and other business groups will ultimately register.
But this ignores the fact that Trump’s tariff talk is wildly popular with his base. One recent poll found that 66% of Republican voters backed Trump’s threatened tariffs against China. Trump ran in 2016 on a protectionist vow that he would no longer allow other countries to “take advantage” of the US. His voters expect him to deliver on that promise, and he knows it.
Second, the markets may be betting that Trump is right when he says that trade wars are easy to win. Other countries that depend on exports to the US may conclude that it is in their interest to back down. In early July, the European commission was reportedly contemplating a tariff-cutting deal to address Trump’s complaint that the EU taxes American cars at four times the rate the US taxes European vehicles.
But China shows no willingness to buckle under US pressure. Canada, that politest of countries, is similarly unwilling to be bullied; it has retaliated with 25% tariffs on $12bn of US goods. And the EU would contemplate concessions only if the US offers some in return – such as eliminating its prohibitive tariffs on imported light pick-up trucks and vans – and only if other exporters like Japan and South Korea go along.
Third, it could be that the macroeconomic effects of even the full panoply of US tariffs, together with foreign retaliation, are relatively small. Leading models of the US economy, in particular, imply that a 10% increase in the cost of imported goods will lead to a one-time increase in inflation of at most 0.7%.
This is simply the law of iterated fractions at work. Imports are 15% of US GDP. Multiply 0.15 by 0.10 (the hypothesised tariff rate), and you get 1.5%. Allow for some substitution away from more expensive imported goods, and the number drops below 1%. And if growth slows because of the higher cost of imported intermediate inputs, the Fed can offset this by raising interest rates more slowly. Foreign central banks can do likewise.
Still, one worries, because the standard economic models are notoriously bad at capturing the macroeconomic effects of uncertainty, which trade wars create with a vengeance. Investment plans are made in advance, so it may take, say, a year for the impact of that uncertainty to materialise – as was the case in the UK following the 2016 Brexit referendum. Taxing intermediate inputs will hurt efficiency, while shifting resources away from dynamic hi-tech sectors in favour of old-line manufacturing will depress productivity growth, with further negative implications for investment. And these are outcomes that the Fed cannot easily offset.
So, for those who observe that the economic and financial fallout from Trump’s trade war has been surprisingly small, the best response is: just wait.
• Barry Eichengreen is professor of economics at the University of California, Berkeley, and a former senior policy adviser at the International Monetary Fund.
China industrial park explosion kills 19 - BBC News
July 13, 2018
China industrial park explosion kills 19
The blast occurred at a plant which makes chemicals for the food and pharmaceutical industries
An explosion at an industrial park in China's Sichuan province has left 19 people dead and 12 others injured, officials say.
In a statement quoted by Reuters, the authorities in Jiang'an county said the blast happened at a chemical plant run by Yibin Hengda Technology.
Photos on Chinese social media showed a huge fire and plumes of smoke rising from the facility.
It is not clear what caused the explosion.
According to Xinhua the fire, which broke out on Thursday evening, had been put out early on Friday. Those injured in the blast were in a stable condition.
Authorities have begun an investigation, the news agency said.
The cause of the blast is not yet known
Yibin Hengda makes chemicals for the food and pharmaceutical industries.
According to local media reports, the three-storey buildings of the factory burnt down to their steel frames and nearby buildings had their windows shattered.
The accident follows previous high-profile disasters at chemical plants in China.
In 2015, 173 people died in an explosion at a chemical warehouse in the north-eastern port city of Tianjin.
An official investigation into the blast found that corruption, political connections and official collusion allowed corners to be cut and safety systems to be overridden.
China industrial park explosion kills 19
The blast occurred at a plant which makes chemicals for the food and pharmaceutical industries
An explosion at an industrial park in China's Sichuan province has left 19 people dead and 12 others injured, officials say.
In a statement quoted by Reuters, the authorities in Jiang'an county said the blast happened at a chemical plant run by Yibin Hengda Technology.
Photos on Chinese social media showed a huge fire and plumes of smoke rising from the facility.
It is not clear what caused the explosion.
According to Xinhua the fire, which broke out on Thursday evening, had been put out early on Friday. Those injured in the blast were in a stable condition.
Authorities have begun an investigation, the news agency said.
The cause of the blast is not yet known
Yibin Hengda makes chemicals for the food and pharmaceutical industries.
According to local media reports, the three-storey buildings of the factory burnt down to their steel frames and nearby buildings had their windows shattered.
The accident follows previous high-profile disasters at chemical plants in China.
In 2015, 173 people died in an explosion at a chemical warehouse in the north-eastern port city of Tianjin.
An official investigation into the blast found that corruption, political connections and official collusion allowed corners to be cut and safety systems to be overridden.
Why Brussels is keeping quiet on May's White Paper - BBc News
July 13, 2018
Why Brussels is keeping quiet on May's White Paper
Katya Adler
Europe editor
@BBCkatyaadler on Twitter
PM Theresa May has set out her plans for Brexit - but EU bigwigs are in no hurry to comment for now
Even the president of the United States now sees fit to weigh in on the Brexit path Theresa May is taking.
Donald Trump has said, amongst other things, that if the prime minister is successful in her plan - formalised on Thursday in a White Paper - then that would make a future trade deal with the US far less likely.
So how come key player Brussels remains so uncannily quiet about the paper?
Brussels badgered the UK for months and months and months about coming up with a detailed proposal on how it envisions the future EU-UK relationship after Brexit. Now they have it, surely they have an opinion about it?
As far as official responses go, the most we got from Michel Barnier, the EU's chief Brexit negotiator, was that he and his colleagues now need time to analyse the White Paper in detail.
On the one hand: fair enough. It is a very dense document.
But I feel the EU is hiding behind the paper's 98 pages of Brexit tech-talk.
In private, EU diplomats make no secret at all of their rejection of large chunks of the White Paper.
Plan 'delivers the Brexit UK voted for' - May
Trump: Brexit plan could kill US trade deal
Brussels has said since the beginning of Brexit negotiations that the UK can't pick and choose the "best parts" of EU membership and walk away from the rest when it leaves. Yet that's exactly how the White Paper is interpreted in EU circles.
There is no way Michel Barnier will accept it as is.
Michel Barnier, the EU's chief Brexit negotiator, must calculate the best time to criticise the White Paper
For Theresa May to get that "deep and special" access to the EU in trade terms, Brussels will certainly expect more concessions. But EU leaders are biding their time. Trying to calculate not if, but when, and how to get their criticisms across.
They're very aware of the febrile political atmosphere in the UK and think if they make a quick comment or criticism of the White Paper, they'd be adding fuel to the fire.
So if the EU is so keen for a soft Brexit - (of course we know, deep down, it would prefer no Brexit at all) - what concessions is Brussels prepared to make now to help shore up the prime minister's position in the political maelstrom at home?
Worryingly few, is the answer if you're a fan of Theresa May or her White Paper.
The EU still believes it holds pretty much all the cards in Brexit negotiations. I don't expect real whiffs of EU concessions before the last minute of the 11th hour this autumn.
Can Theresa May hang on till then? And if she can, is she politically strong enough to strike a deal with Brussels and then sell it back home?
Frankly, no one knows - and in the meantime, Brussels is stepping up contingency plans for a no-deal Brexit. Not because the EU or Downing Street wants that - they really do not - but because the time allotted under EU law for a withdrawal agreement to be agreed and signed off by both parties is fast running out.
In the meantime, EU diplomats try to sound upbeat: the White Paper is a great springboard from which to re-start face-to-face Brexit negotiations, they say.
Those talks begin again behind closed doors on Monday.
Why Brussels is keeping quiet on May's White Paper
Katya Adler
Europe editor
@BBCkatyaadler on Twitter
PM Theresa May has set out her plans for Brexit - but EU bigwigs are in no hurry to comment for now
Even the president of the United States now sees fit to weigh in on the Brexit path Theresa May is taking.
Donald Trump has said, amongst other things, that if the prime minister is successful in her plan - formalised on Thursday in a White Paper - then that would make a future trade deal with the US far less likely.
So how come key player Brussels remains so uncannily quiet about the paper?
Brussels badgered the UK for months and months and months about coming up with a detailed proposal on how it envisions the future EU-UK relationship after Brexit. Now they have it, surely they have an opinion about it?
As far as official responses go, the most we got from Michel Barnier, the EU's chief Brexit negotiator, was that he and his colleagues now need time to analyse the White Paper in detail.
On the one hand: fair enough. It is a very dense document.
But I feel the EU is hiding behind the paper's 98 pages of Brexit tech-talk.
In private, EU diplomats make no secret at all of their rejection of large chunks of the White Paper.
Plan 'delivers the Brexit UK voted for' - May
Trump: Brexit plan could kill US trade deal
Brussels has said since the beginning of Brexit negotiations that the UK can't pick and choose the "best parts" of EU membership and walk away from the rest when it leaves. Yet that's exactly how the White Paper is interpreted in EU circles.
There is no way Michel Barnier will accept it as is.
Michel Barnier, the EU's chief Brexit negotiator, must calculate the best time to criticise the White Paper
For Theresa May to get that "deep and special" access to the EU in trade terms, Brussels will certainly expect more concessions. But EU leaders are biding their time. Trying to calculate not if, but when, and how to get their criticisms across.
They're very aware of the febrile political atmosphere in the UK and think if they make a quick comment or criticism of the White Paper, they'd be adding fuel to the fire.
So if the EU is so keen for a soft Brexit - (of course we know, deep down, it would prefer no Brexit at all) - what concessions is Brussels prepared to make now to help shore up the prime minister's position in the political maelstrom at home?
Worryingly few, is the answer if you're a fan of Theresa May or her White Paper.
The EU still believes it holds pretty much all the cards in Brexit negotiations. I don't expect real whiffs of EU concessions before the last minute of the 11th hour this autumn.
Can Theresa May hang on till then? And if she can, is she politically strong enough to strike a deal with Brussels and then sell it back home?
Frankly, no one knows - and in the meantime, Brussels is stepping up contingency plans for a no-deal Brexit. Not because the EU or Downing Street wants that - they really do not - but because the time allotted under EU law for a withdrawal agreement to be agreed and signed off by both parties is fast running out.
In the meantime, EU diplomats try to sound upbeat: the White Paper is a great springboard from which to re-start face-to-face Brexit negotiations, they say.
Those talks begin again behind closed doors on Monday.
Trump: Brexit plan 'will probably kill' US trade deal - BBC News
July 13, 2018
Trump: Brexit plan 'will probably kill' US trade deal
Mr Trump's interview comes as protesters - both anti and pro-Trump - prepare to march on Friday
Donald Trump has said the UK will "probably not" get a trade deal with the US, if the prime minister's Brexit plan goes ahead.
He told The Sun the PM's plan would "probably kill the deal" as it would mean the US "would be dealing with the European Union" instead of with the UK.
Downing Street has not yet reacted to Mr Trump's remarks.
Theresa May has been making the case for a US free trade deal with Mr Trump, on his first UK visit as president.
She said Brexit was an "unprecedented opportunity" to create growth in the UK and US.
Mr Trump also said that former Foreign Secretary Boris Johnson - who disagrees with the PM on Brexit and resigned this week - would make a "great prime minister", adding "I think he's got what it takes".
In his interview, he also renewed his criticism of London Mayor Sadiq Khan over last year's terror attacks in London, saying he had done "a terrible job".
It comes ahead of a day of planned, and widespread, anti-Trump protests across the UK, including one in Parliament Square which involves a giant inflatable of Mr Trump as a baby. Some pro-Trump events are also taking place.
The US president and his wife, Melania, were given a red carpet reception at Blenheim Palace, Oxfordshire on Thursday evening.
They were at a black-tie dinner with Mrs May as news broke of his interview with the newspaper, which said it was conducted while he was in Brussels.
After it was published, White House spokeswoman Sarah Sanders said the president "likes and respects Prime Minister May very much", adding that he had "never said anything bad about her".
Mays greet Trumps for UK black-tie dinner
Mr Trump - who has been a long-time supporter of Brexit - told The Sun that the UK's blueprint for its post-Brexit relations with the EU was "a much different deal than the people voted on".
He said the Brexit proposals Mrs May and her cabinet thrashed out at the PM's country house Chequers last week "would probably end a major trade relationship with the United States."
"We have enough difficulty with the European Union," he said, saying the EU has "not treated the United States fairly on trading".
'I told May how to do it'
He also said Mrs May had not listened to his advice on how to do a Brexit deal, saying: "I would have done it much differently.
"I actually told Theresa May how to do it but she didn't agree, she didn't listen to me. She wanted to go a different route," he said.
Tom Newton Dunn, the Sun journalist who interviewed Mr Trump, said the US president seemed "sensitive" and knew about the "Trump baby" inflatable.
"He's really quite stung by the criticism he's been getting," said Mr Newton Dunn. "He knew all about the baby blimp. I think it hurt him."
The Sun journalist who interviewed Donald Trump says the president "really cares" what people in Britain think of him.
The BBC's political editor, Laura Kuenssberg, said Mr Trump's interview had "driven a bulldozer" through Mrs May's claim that the UK would be able to get decent trade deals with the wider world, while sticking to the EU rules.
But Foreign Office minister Sir Alan Duncan said things had "moved on" since Mr Trump's interview - which was carried out before he arrived in the UK - and the mood at Thursday night's dinner was "fantastically positive and did focus a lot on trade".
The government does not see Mr Trump's behaviour as "rude", said Sir Alan, adding: "Donald Trump is a controversialist. That's his style."
Trump raises questions over Brexit plans
How we're welcoming Donald Trump to the UK
Queen and US presidents through history
And Chancellor Philip Hammond said he is sure there will be "very positive" talks between Mr Trump and the PM later today.
Protesters near Blenheim Palace making their feelings known on Thursday
Mayor of London Sadiq Khan defended his decision to allow the giant Trump baby inflatable to fly over London, saying: "The idea that we limit the right to protest because it might cause offence to a foreign leader is a slippery slope".
And, responding to Mr Trump's criticism of his response to terrorism, Mr Khan said it was "interesting" that he "is not criticising the mayors of other cities" which have also experienced terror attacks.
Meanwhile, Shadow Foreign Secretary Emily Thornberry said the PM "should be standing up to [Mr Trump]" after he "slagged her off", instead of holding his hand.
Mr Trump briefly held Mrs May's hand as they went up the stairs
Mr Trump's comments came on the same day the UK government published its proposal for its long-term relationship with the EU.
The plan is aimed at ensuring trade co-operation, with no hard border for Northern Ireland, and global trade deals for the UK. Mrs May said the plan "absolutely delivers on the Brexit we voted for".
But after ministers reached an agreement on the plan at Chequers a week ago, leading Brexiteers Boris Johnson and David Davis resigned from the cabinet.
Reality Check: The rules on protest balloons
'Trump Baby' balloon banned from Turnberry
Why US presidents love the home of golf
Some of Mr Trump's supporters and protesters have been explaining their motivation
Mrs May and Mr Trump are watching a joint counter-terrorism exercise by British and US special forces at a military base.
The pair will then travel to Chequers - the PM's country residence in Buckinghamshire - for talks also being attended by Foreign Secretary Jeremy Hunt.
Extra security is in place to police protests planned for the second day of Mr Trump's visit.
The president and first lady will travel to Windsor on Friday afternoon to meet the Queen, before flying to Scotland to spend the weekend at Mr Trump's Turnberry golf resort. This part of the visit is being considered private.
Trump: Brexit plan 'will probably kill' US trade deal
Mr Trump's interview comes as protesters - both anti and pro-Trump - prepare to march on Friday
Donald Trump has said the UK will "probably not" get a trade deal with the US, if the prime minister's Brexit plan goes ahead.
He told The Sun the PM's plan would "probably kill the deal" as it would mean the US "would be dealing with the European Union" instead of with the UK.
Downing Street has not yet reacted to Mr Trump's remarks.
Theresa May has been making the case for a US free trade deal with Mr Trump, on his first UK visit as president.
She said Brexit was an "unprecedented opportunity" to create growth in the UK and US.
Mr Trump also said that former Foreign Secretary Boris Johnson - who disagrees with the PM on Brexit and resigned this week - would make a "great prime minister", adding "I think he's got what it takes".
In his interview, he also renewed his criticism of London Mayor Sadiq Khan over last year's terror attacks in London, saying he had done "a terrible job".
It comes ahead of a day of planned, and widespread, anti-Trump protests across the UK, including one in Parliament Square which involves a giant inflatable of Mr Trump as a baby. Some pro-Trump events are also taking place.
The US president and his wife, Melania, were given a red carpet reception at Blenheim Palace, Oxfordshire on Thursday evening.
They were at a black-tie dinner with Mrs May as news broke of his interview with the newspaper, which said it was conducted while he was in Brussels.
After it was published, White House spokeswoman Sarah Sanders said the president "likes and respects Prime Minister May very much", adding that he had "never said anything bad about her".
Mays greet Trumps for UK black-tie dinner
Mr Trump - who has been a long-time supporter of Brexit - told The Sun that the UK's blueprint for its post-Brexit relations with the EU was "a much different deal than the people voted on".
He said the Brexit proposals Mrs May and her cabinet thrashed out at the PM's country house Chequers last week "would probably end a major trade relationship with the United States."
"We have enough difficulty with the European Union," he said, saying the EU has "not treated the United States fairly on trading".
'I told May how to do it'
He also said Mrs May had not listened to his advice on how to do a Brexit deal, saying: "I would have done it much differently.
"I actually told Theresa May how to do it but she didn't agree, she didn't listen to me. She wanted to go a different route," he said.
Tom Newton Dunn, the Sun journalist who interviewed Mr Trump, said the US president seemed "sensitive" and knew about the "Trump baby" inflatable.
"He's really quite stung by the criticism he's been getting," said Mr Newton Dunn. "He knew all about the baby blimp. I think it hurt him."
The Sun journalist who interviewed Donald Trump says the president "really cares" what people in Britain think of him.
The BBC's political editor, Laura Kuenssberg, said Mr Trump's interview had "driven a bulldozer" through Mrs May's claim that the UK would be able to get decent trade deals with the wider world, while sticking to the EU rules.
But Foreign Office minister Sir Alan Duncan said things had "moved on" since Mr Trump's interview - which was carried out before he arrived in the UK - and the mood at Thursday night's dinner was "fantastically positive and did focus a lot on trade".
The government does not see Mr Trump's behaviour as "rude", said Sir Alan, adding: "Donald Trump is a controversialist. That's his style."
Trump raises questions over Brexit plans
How we're welcoming Donald Trump to the UK
Queen and US presidents through history
And Chancellor Philip Hammond said he is sure there will be "very positive" talks between Mr Trump and the PM later today.
Protesters near Blenheim Palace making their feelings known on Thursday
Mayor of London Sadiq Khan defended his decision to allow the giant Trump baby inflatable to fly over London, saying: "The idea that we limit the right to protest because it might cause offence to a foreign leader is a slippery slope".
And, responding to Mr Trump's criticism of his response to terrorism, Mr Khan said it was "interesting" that he "is not criticising the mayors of other cities" which have also experienced terror attacks.
Meanwhile, Shadow Foreign Secretary Emily Thornberry said the PM "should be standing up to [Mr Trump]" after he "slagged her off", instead of holding his hand.
Mr Trump briefly held Mrs May's hand as they went up the stairs
Mr Trump's comments came on the same day the UK government published its proposal for its long-term relationship with the EU.
The plan is aimed at ensuring trade co-operation, with no hard border for Northern Ireland, and global trade deals for the UK. Mrs May said the plan "absolutely delivers on the Brexit we voted for".
But after ministers reached an agreement on the plan at Chequers a week ago, leading Brexiteers Boris Johnson and David Davis resigned from the cabinet.
Reality Check: The rules on protest balloons
'Trump Baby' balloon banned from Turnberry
Why US presidents love the home of golf
Some of Mr Trump's supporters and protesters have been explaining their motivation
Mrs May and Mr Trump are watching a joint counter-terrorism exercise by British and US special forces at a military base.
The pair will then travel to Chequers - the PM's country residence in Buckinghamshire - for talks also being attended by Foreign Secretary Jeremy Hunt.
Extra security is in place to police protests planned for the second day of Mr Trump's visit.
The president and first lady will travel to Windsor on Friday afternoon to meet the Queen, before flying to Scotland to spend the weekend at Mr Trump's Turnberry golf resort. This part of the visit is being considered private.
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