The Wars Fighting Back.

Trade wars are mostly made up of fightbacks. It is what everyone knows and so it is a surprise that President Trump is querying the decision of the motorbike manufacturer, Harley Davidson, to move some production abroad. It is only fair that the EU should effect retaliatory tariffs in response to the ones imposed by the US government on steel and aluminum products from Europe and elsewhere and in trade wars, it is usual to counter where it hurts most. It is unfortunate that Harley Davidson should be a victim of the reprisals but this is the age of globalization and outsourcing and it is inevitable it should switch to plants outside the US where lower wages and general costs will help to offset some of the slide in turnover expected from prices of its bikes going up in the EU, an important market. This is a common economic move that is vital in order to survive: at least in the long run. Trump cannot complain. He fired the first shot.
A sensible move as opposed to Trump's rationale of 'safeguarding national security', a bye-slang for old, turgid protectionism. How much of the steel and aluminum consumption in the US goes into national security? Are US metal plants at par with Chinese variants in efficiency? Isn' t it more profitable to concentrate energy on reforming labour and wages? Someone said Trump has to fulfil his promises to American workers, a sizable component of his political base. Such political promises often turn out to be rash. Too bad economics does not often work well with promises.
And on another front, the president's peremptory annulment of the Iran deal is having a bit of boomerang now. Ramping up sanctions would ultimately lead to cuts in Iranian oil production and that was going to push up oil prices, resulting in higher energy costs in the US. Unless production is increased quickly elsewhere to bridge supply gaps. Oil prices inching towards $80pb is a mayhem the delicate economy can gladly do without and so worrying is the scenario that the president had to resort to some fake tweeting: announcing that Saudi Arabia has promised to ramp up production. News that turned out to be false.

G-7 Minus One Gentleman.

Disputes are not new to the G-7, a group of wealthy, industrialized and advanced nations that is made up of the US, Canada, Britain, France, Germany, Italy and Japan. Being an association of countries with diverse economic, social and political histories, disagreements were bound to be plenty and loud but the good news was that they always managed to resolve them, or at least paper over the cracks. Simply because it was supposed to be a club of gentlemen well-versed in boardroom antics of compromise and hand-shaking. National leaders who must carry with them the negotiating skills and dignity of their respective countries The not-so-good news now is that the good news seem to be finding it very difficult and awkward to fan out. All because one of them does not now care a hoot about being a gentleman, cracking up huge fissures in the organization.
It is well-known President Trump of the US has a predilection for prowling on the battlefield, not in the boardroom, despite his corporate background, and, not surprisingly, did not think it twice before firing hefty salvos at gentlemen supposed to be his comrades in the G-7, slapping huge tariffs on steel and aluminum imports from Europe, Canada and Mexico. The president argued the move would protect domestic producers of such commodities and help to boost national security. He conveniently forgot to add most of those home producers were struggling. And his colleagues in the EU, still smarting from his unilateral and very peremptory abrogation of the Iran deal which they helped to bring to the table with a great deal of effort and to which they were signatories, wasted no time in retaliating, announcing counter-tariffs on a wide range of goods from the US. In fact, the G-7 now looks like a madhouse, with a huge madcap of retaliations reminiscent of cold war battles. The schism has been widening since last year over conflicting positions on climate change, differences that came to a head with Trump's subsequent announcement to unilaterally withdraw from the landmark Paris agreement on climate change. This year G-7 summit in Canada is even expected to generate less agreement. Meetings have been at best fractious with leaders speaking loudly and unreservedly about divisions and Trump's body language suggesting his forthcoming June 12 summit with the North Korean leader, Kim Jong-un in Singapore was of far greater interest to him than sitting down in Canada to resolve a host of differences with his G-7 allies. Which is as well, as he has long been suspected of being uncomfortable at negotiating with groups as opposed to one-on-one, man-to-man, mano-o-mano negotiations that the summit with Kim envisages. And he has just dropped a cat in the cage of pigeons by suggesting Russia should be readmitted into the body. He knows it is a suggestion that will raise the decibel of commotion a shade further, giving him ample cover to sneak out of Canada.
As for the G-7 itself, the convulsions extend beyond Trump and may take some time quietening. It is too exclusive a club, practically needing the Crown Jewels for admittance. Requirements will have to be lowered and there is no reason for countries like South Korea and China and India and indeed Russia not to come in. The body might corner 60% of global wealth now but it is a share that is not going to increase in the near future. Many nations are coming up and a rival body might not be out of place. It is instructive to note that as the summit in Canada taking place, China was hosting a meeting of the Shanghai Cooperation Organization, a regional security block, inviting Russia to the event. The G-7 should look over its shoulders in its squabbles.
AND THE GIRL LIFTS IT.
Simona Halep has just won the French Open, beating Sloane Stephens in the process. It would be her first Grand Slam, having lost on all three previous occasions she would reach the final. Still she remained unbowed, just like Chris Evert who faced exactly an ordeal in her career,

Simona Halep

and has just confirmed the suspicion that despair and defeat are not always linked. Congrats, girl.

Trump

G-7