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President Trump said that Sears had been mismanaged for years before it declared bankruptcy, Bloomberg reports.
Said Trump: “Sears has been dying for many years. It’s been obviously improperly run for many years and it’s a shame.”
Among those responsible for its management: Treasury secretary Steven Mnuchin, who was a member of Sears’s board from 2005 until December 2016.
The unemployment rate fell to 3.7%, down from 3.9% in August, its lowest level since 1969, the Wall Street Journal reports.
“The United States and Canada reached a last-minute deal to salvage the North American Free Trade Agreement on Sunday, overcoming deep divisions to keep the 25-year-old trilateral pact intact,” the New York Times reports.
“The deal came after a weekend of frantic talks to try and preserve a trade agreement that has stitched together the economies of Mexico, Canada and the United States but that was on the verge of collapsing. After more than a year of tense talks and strained relations between President Trump and Prime Minister Justin Trudeau of Canada, negotiators from both sides came to a resolution just ahead of a midnight deadline set by the White House.”
“The 11th-hour agreement was punctuated by a frenetic Sunday, with Canada’s leaders teleconferencing throughout the day with top American officials in Washington.”
Bloomberg: “Some people familiar with the talks credited Trump senior adviser Jared Kushner for helping smooth the path toward a deal.”
President Trump’s trade battles “are already triggering economic warnings — and rising danger for Republicans just ahead of the midterm elections,” Politico reports.
“As fresh U.S. tariffs on $200 billion in Chinese imports take effect Monday, surveys show consumers growing increasingly worried about higher prices this fall. Giant retailers such as Walmart are warning of price increases for manufactured goods. And smaller businesses in swing states and districts from Washington state to Iowa to Tennessee are complaining bitterly about big hits to their exports.”
President Trump named retiring Rep. Darrell Issa (R-CA) to head the U.S. Trade and Development Agency, “setting up what could be a contentious confirmation battle in the Senate,” Politico reports.
“As former House Oversight Committee chairman, the nine-term congressman built a name for himself by dogging the Obama Administration for years… That’s left him virtually friendless on the left, which could be problematic for his confirmation in a chamber with a very slim GOP majority.”
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“President Trump, emboldened by America’s economic strength and China’s slowdown, escalated his trade war on Monday, saying the United States would impose tariffs on $200 billion worth of Chinese goods as punishment over Beijing’s trade practices,” the New York Times reports.
“The fresh round of tariffs comes on top of $50 billion worth of Chinese products already taxed earlier this year, meaning nearly half of all Chinese imports into the United States will soon face tariffs.”
President Trump “has decided to impose tariffs on $200 billion in Chinese goods, two people briefed on the decision said, one of the most severe economic restrictions ever imposed by a U.S. president,” the Washington Post reports.
“An announcement is expected to come within days… The new tariffs would apply to more than 1,000 products, including smartphones, televisions and toys. These penalties could drive up the cost of a range of products ahead of the holiday shopping season, though it’s unclear how much.”
New York Times: “As Democrats enter the fall midterm campaign with palpable confidence about reclaiming the House and perhaps even the Senate, tensions are rising between the White House and congressional Republicans over who is to blame for political difficulties facing the party, with President Trump’s advisers pointing to the high number of G.O.P. retirements and lawmakers placing the blame squarely on the president’s divisive style.”
“Yet Republican leaders do agree on one surprising element in the battle for Congress: They cannot rely on the booming economy to win over undecided voters.”
“To the dismay of party leaders, the healthy economy and Mr. Trump have become countervailing forces. The decline in unemployment and soaring gross domestic product, along with the tax overhaul Republicans argue is fueling the growth, have been obscured by the president’s inflammatory moves on immigration, Vladimir V. Putin, and other fronts, party leaders say.”
Wall Street Journal: “The U.S. economy is roaring like it hasn’t in many years, which ought to be good news for the Republican Party in the run-up to the midterm elections. A deeper look at the economic data by congressional district reveals a less even picture. Data assembled for The Wall Street Journal by the Institute of International Finance shows that the economy is booming in some GOP-held battleground districts.”
“At the same time, a sizable number of competitive districts — almost all currently Republican—are vulnerable to new tariffs, a new cap on deductions for state and local income taxes, or a jobs picture worse than the national average.”
“The result is a midterm election that reflects not a single nationwide picture, but a disparate series of miniatures. The upshot: The same accelerating national economy that could save a vulnerable Republican in the Virginia suburbs might hurt an at-risk GOP candidate in Kansas or Kentucky.”
President Trump threatened to push Canada out of the North American Free Trade Agreement if he doesn’t get the concessions he wants.
Said Trump: “There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere with these negotiations or I will simply terminate NAFTA entirely and we will be far better off.”
However, ABC News notes “it’s not clear whether the Trump administration has the authority to strike a deal with just Mexico, as it announced Monday, and exclude Canada.”
“The United States and Mexico reached a deal on Monday to replace the North American Free Trade Agreement (NAFTA) and talks with Canada were expected to begin immediately in the hopes of reaching a final agreement by Friday,” Reuters reports.
Said one Trump administration official: “We are now inviting the Canadians in as well and hope that we can reach a fair and successful conclusion with them as well.”
“The United States’ trade war with China is likely to last much longer than originally thought — extending well into the second half of next year and perhaps beyond,” Axios reports.
“The main reason: Neither side is prepared to appear politically weak at home, and both are ready to absorb economic pain.”
“The winners of a one-year or longer trade war without resolution are not clear, but here are some of the probable losers: In the U.S.: Farmers, users of steel, and consumers… In China: Manufacturers of all types will see business leave to neighbors like Vietnam and Malaysia.”
Federal Reserve Chairman Jerome Powell seemed to brush off recent complaints from President Trump about the pace of interest-rate increases, signaling in a speech that he expects the Fed to continue raising interest rates gradually if the U.S. economic expansion remains strong, CBS News reports.
“The Trump administration is moving closer this week to levying tariffs on nearly half of Chinese imports despite broad opposition from U.S. business and the start of a fresh round of talks between the U.S. and China to settle the trade dispute,” the Wall Street Journal reports.
“The twin administration initiatives—pursuing tariffs on $200 billion of Chinese goods while relaunching talks to scrap tariffs—underscore a split within the U.S. administration, with negotiators in the U.S. Treasury Department offering a carrot, while the office of the U.S. trade representative threatens with a stick, both with the approval of President Trump.”
Axios: “For West Wing policy advisers, China has become a rare unifying issue, while deep rifts remain on other trade issues, especially the wisdom of Trump’s plan to impose massive tariffs on car imports.”
President Trump’s budget director, Mick Mulvaney, “is trying to use his influence to help a South Carolina business that could be badly wounded by the White House’s trade policies,” McClatchy reports.
“Mulvaney, a former South Carolina Republican congressman, has been making personal pleas to administration officials to protect the viability of Element Electronics, a television assembly plant in his old district that has said it will halt operations because of tariffs.”
Heather Long: “First, there’s the Trump factor. This is a personality-driven election. In places where Trump is popular, candidates are focused on acting like Trump’s BFF. In places where he’s not, candidates promote themselves as the anti-Trump. Second, when the economy is good, it takes a back seat. People start thinking of other issues like education, health care and immigration. This is particularly true for the most critical swing group this year: college-educated white women. Third, there’s a noticeable gender gap in how men and women are approaching this election.”
“Still, strategists on both sides tell me they are advising their candidates to talk up the economy more, despite how unusual this year is.”
“One of the biggest supporters of President Trump’s trade policies, according to the president, is the unnamed chief executive officer of a mystery company,” Bloomberg reports.
Said Trump, at a recent rally: “I was with one of the greatest companies in the world. The chief executive officer. Very short while ago. And it really affects him. He said ‘You know what, this does affect our company. But, Mr. President, keep going. You’re doing the right thing.”’
“Trump didn’t identify his supporter, and the White House won’t say who it is. Trade groups representing the largest U.S. businesses and CEOs have almost universally opposed Trump’s disruptive approach to trade. But the person fits a model: an anonymous figure — important and powerful — who invariably supports the president’s position, according to Trump himself.”
“The confidence indices are telling a very important story, and POTUS is polling in the low to mid fifties on the economy. The great blue wall has crashed. I think GOP will lose seats but keep the House.”
— White House economic adviser Larry Kudlow, quoted by Politico.
Taegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt and the Political Dictionary.
Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.
Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.
Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.
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