Economic security is national security. “Economic growth, national security, those are the Presidents’ two most important priorities” ~ Secretary Mnuchin.

Treasury Secretary Steven Mnuchin discusses the ongoing trade negotiation with China and the specifics of sector-by-sector agreements in principle. The overall approach by the Trump administration is to balance the trade relationship through opening of Chinese markets to U.S. exports and retain stability within U.S. manufacturing sectors.

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The dragon is in the details…. and that’s where you find slayer-Secretary Wilbur Ross!

After over a year of discussions and structured way-points, China came into last weeks U.S. trade talks with outstretched steel fists. The delegation they sent to the negotiating table were some of the most loyal and die-hard communist leaders within their national economic team.

It was obvious China is projecting its interests in dragon-mode knowing they are dealing with an entirely different administration than they faced before.

President Trump uses the point of “deficits” because it has a familiar catch and understanding with the U.S. audience. However, President Trump knows the real issue is the amount of domestic production -vs- the amount of imported foreign goods. If the Chinese team frame their analytic offers from deficit reduction pitches, the actual deals will never materialize.

President Trump, Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin, U.S. Trade Rep. Robert Lighthizer, and Trade Adviser Peter Navarro are looking at sector by sector trade issues. It is not simply an import-export equation; it’s about a longer outlook and more balanced and stable manufacturing base.

President Trump is not focused on enhancing interdependency models (deficits), he is looking at expanding independence models sector by sector. Can this sector thrive independent of a need for imported material (raw good, part, service or intellectual property)?

The U.S. goal is for each individual sector (goods or services) not to be necessarily dependent or co-dependent on international import. This America-first approach reduces risk exposure and enhances investment perspectives favorably toward the U.S. by creating long-term economic stability.