Should we believe Trump? These are the 3 times that he had to retract this month

Listen to this article

 

Suspending the veto against Huawei is the third time this month that Trump has had to contradict his statements and opt for alternatives

On May 30 of this year, the president of the United States, Donald Trump, issued a message to the Mexican government: if they did not do their part to control the immigration problem at the border, the United States would introduce a 5% tariff to all goods coming from the country south of the border. One month after this decision, we will see what happened on the border with Mexico and in other two scenarios that forced Trump to contradict his original position.

Leer en español: ¿Qué tanto se le debe creer a Trump? Estas son las 3 veces que se tuvo que retractar este mes

1. Tensions with Mexico

Given the possibility of introducing tariffs of 5% on all merchandise from Mexico to the United States, the industrial sectors of both economies raised red flags.

While Trump saw the introduction of tariffs as a way to encourage the Mexican government to fight against illegal migration and drug trafficking, as well as a way to force the automotive industry to stop producing in Mexico, his critics assured that the decision would harm both economies.

Economist Dan Ikenson, who studies international trade at the Cato Institute, told Vox about the impact that the resolution would have on the automotive industry, saying that "tariffs will increase the production costs of American vehicles and reduce their competitiveness compared to vehicles imported from other countries. It's a lose-lose strategy. "

Moreover, Mexican President Andres Manuel López Obrador criticized the decision arguing that "social problems are not solved with taxes or coercive measures."

Just 10 days after the announcement, Trump suspended the introduction of tariffs on Mexican goods indefinitely, after reaching an agreement with Mexico regarding the protection of the border.

This agreement, however, remains unknown, since the objectives that Mexico has to meet with regard to illegal immigration have not been made public. It became even more complicated when Trump suggested that, part of the agreement, is Mexico purchasing "large quantities" of US agricultural products.

2. Tension with Iran is increasing

After the knock down of an American drone that flew over the Strait of Hormuz, where there is one of the most important oil trade routes in the world, presumably at the hands of Iran, President Trump strongly expressed his willingness to retaliate on several occasions.

Also read: Is there any winner in the 'Technologic Cold War'?

He assured that Iran had committed a "big mistake". Later, when asked what would be the response of the United States, he replied that "they would find out soon". Trump also assured, through his Twitter account, that any aggression committed by Iran would be answered with "enormous and overwhelming force" and "obliteration".

Finally, Trump acknowledged his readiness to war by declaring that "we (the United States) would love to be able to negotiate an agreement, if they (Iran) want it. If they do not want to, that's fine with us too. "

Just days later, in an interview with Fox News, Trump announced that he would suspend the planned attacks against Iran.

"I decided not to kill many Iranians. I like Iranians," he said on this occasion. He also added that if there is a war between the two countries, this "would not be very long".

3. Restoring USA's relationship with China

So far, the economic event of the year has been the ongoing trade war between China and the United States. In just six months, the two countries have introduced a huge amount of tariffs, with the United States imposing the majority of them to products from China.

The tariff escalation was promoted by President Trump, who identifies a situation of disadvantage of his country in its commercial relationship with China. To overcome the disadvantage, Trump led the introduction of tariffs that would make more expensive the access to the US market for China, putting pressure on the dismantling of many Chinese business practices considered "unfair" by the Trump government.

A major player in the commercial war was China's largest technology company, Huawei. In the same way he did with Venezuela, Trump barred all US companies from doing business with Huawei. Among many technology manufacturers and telecommunications providers in the United States, the decision provoked uncertainty, as Huawei was a key tech supplier.

According to Huawei founder, Ren Zhengfei, the veto imposed on his company will cost around $ 30,000 million dollars over the next two years.

However, during G20 summit, which is taking place this weekend in Osaka, Japan, Trump backed down his previous opinion. Now, all US firms are allowed to sell to Huawei. The decision will help the world's third-largest cellphone maker, but will also improve the situation for firms such as Google.

Google, which provides Android for Huawei devices, was drastically affected by the veto. Many of its microchip-making partners, including Qualcomm and Intel, froze their relationship with Google because of their continued links to Huawei and the danger they represent under the Trump administration.

LatinAmerican Post | Pedro Bernal
Translated from "¿Qué tanto se le debe creer a Trump? Estas son las 3 veces que se tuvo que retractar este mes"