Donald Trump rebuffed U.S. airlines and trade adviser in a tense Oval Office meeting

The three largest U.S. airlines presumed that President Donald Trump would take their side in a ferocious, yearslong dispute with Persian Gulf-based airlines — if they could just get his attention.

They got his attention, by way of TV ads the president saw on Fox News. But when Trump finally gathered executives from both sides of the dispute this month in the Oval Office for a heated, “Apprentice”-worthy showdown, he ultimately sided against them.

During an hour-long session, the president ribbed American Airlines CEO Doug Parker over his company’s flagging stock price, asking why it’s so low at a time when the stock market is surging. He scolded Delta Airlines, whose CEO Ed Bastian did not attend, for buying billions in planes from the European firm Airbus while Qatar Airways is buying its jets from Chicago-based Boeing Co.

And he repeatedly harped on Bastian’s absence, questioning how he could be a no-show after his airline — more than any other — had been fanning the flames of the fight.

“The president kept going back to it,” one person who attended the meeting told NBC News. “There was a lot of yelling.”

The meeting was a stark illustration of the president’s freewheeling decision-making style, particularly in areas like U.S. business where he is most confident in his own instincts.

It was also a steep blow to Peter Navarro, Trump’s trade adviser, who found himself on the losing end of a tug of war with national security adviser John Bolton, National Economic Council Director Larry Kudlow and others in Trump’s White House.

This account draws on interviews with 10 individuals, including senior Trump administration officials, airline officials, congressional aides and others who attended or were briefed on the unusual July 18 meeting.

Those individuals, who spoke anonymously because the meeting was intended to be kept private, said nobody knew what the president would do when he sat the CEOs or their representatives from both sides of the dispute down in front of the Oval Office’s Resolute desk and asked them one by one to make their case.

For more than four years, the “Big Three” U.S. carriers — American, Delta and United Airlines — have been waging a bitter battle with Qatar Airways and two Emirati airlines over flights between the U.S. and the lucrative European market. The U.S. carriers argue that the Mideast airlines are heavily government-subsidized and are undercutting them by offering below-market fares on flights that never stop in the Middle East.

Most recently, they’ve turned their focus to Air Italy, which added new flights between Milan and the U.S. after Qatar Airways bought a 49 percent stake. The U.S. carriers say it’s a scheme to circumvent restrictions in the U.S.-Qatar “Open Skies” agreement on civil aviation.

Navarro, Trump’s hard-charging trade adviser known for his staunch protectionist views, has kept the issue alive in the White House after overseeing agreements last year to resolve previous grievances by the U.S. airlines, several administration officials said.

But as the Qataris and the U.S. airlines clashed anew this year over Air Italy, Navarro’s campaign thrust him into conflict with the rest of the White House. It drew the attention of Bolton, who enlisted Kudlow and other agencies to wrest back oversight of the issue from Navarro, people familiar with his efforts said.

[NBC News]

Trump Makes All His Senior Officials Take Turns Swearing He Didn’t Throw Tantrum With Pelosi

President Donald Trump has spent much of the past day insisting he’s definitely not mad about the derailed infrastructure meeting with Democratic leaders Nancy Pelosi and Chuck Schumer, which lasted just minutes before the president walked out over Pelosi’s claim he’s engaged in a cover-up on the Russia investigation.

The House Speaker has since been engaged in a very public trolling campaign, telling reporters that Trump had a temper tantrum at the meeting. Pelosi has said that she’s keeping Trump in her prayers and suggested his family stage an intervention.

It’s clearly working. During his speech at the White House to discuss a $16 billion aid package to farmers hurt by the escalating trade war with China, the president raged about Pelosi while insisting he was totally fine.

He also, at one point, asked his top aides what his “temperament” was in the meeting with Pelosi and Schumer.

“Very calm, no temper tantrum,” Kellyanne Conway said dutifully.

Trump then went back to talking about his announcement, briefly, before turning back to Pelosi, calling her “a mess.”

After less than a minute, he turned back to another aide, Mercedes Schlapp, and asked her what his “attitude” was in the meeting.

“You were very calm and you were very direct,” Schlapp said. “You sent a very firm message to the Speaker and to the Democrats. And it’s very discouraging and disgraceful to see that the Speaker would decide an hour before coming to the White House to make those comments, call it — that there’s a cover-up, and then come to the White House and expect it to be a constructive meeting.”

Conway, not to be upstaged, interjected at one point to praise the president’s poise once more.

Trump — and this is not a joke, watch the video above — then proceeded to make Larry Kudlow, his director of the National Economic Council, Sarah Sanders, his press secretary, and Hogan Gidley, his deputy press secretary, all insist that he did not have a melt down at the meeting with Pelosi and Schumer.

[Mediaite]

Media

White House seeks to end subsidies for electric cars and renewable energy

White House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources.

Asked about plans after General Motors Co (GM.N) announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under federal law.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

Asked about a timeline, he said: “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

The tax credits are capped by Congress at 200,000 vehicles per manufacturer, after which the subsidy phases out. GM has said it expects to hit the threshold by the end of 2018, which means under the current law, its tax credit scheme would end in 2020. Tesla Inc (TSLA.O) said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the White House cannot change the cap unilaterally. U.S. President Donald Trump last week threatened to eliminate subsidies for GM in retaliation for the company’s decision.

Kudlow made clear any changes in subsidies would not just affect GM. “I think legally you just can’t,” he said.

Democrats will take control of the U.S. House in January and are unlikely to agree to end subsidies for electric cars and many have been pushing for additional incentives.

Tesla and GM have lobbied Congress for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current Congress expires.

In October, Senator Dean Heller proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

Also in October, Senator John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

[Raw Story]

White House: It’s in ‘Public Interest’ for Staff to Skirt Ethics Rules to Meet With Fox News

It is “in the public interest” for the White House’s top communicator to be excused from federal ethics laws so he can meet with Fox News, according to President Donald Trump’s top lawyer.

Bill Shine, Trump’s newly minted communications director, and Larry Kudlow, the White House’s top economist, who worked at CNBC before his White House post, have both been excused from provisions of the law, which seeks to prevent administration officials from advancing the financial interests of relatives or former employers.

“The Administration has an interest in you interacting with Covered Organizations such as Fox News,” wrote White House counsel Don McGahn in a July 13 memo granting an ethics waivers to Shine, a former Fox executive. “[T]he need for your services outweighs the concern that a reasonable person may question the integrity of the White House Office’s programs and operations.”

Kudlow, a former CNBC host, received a similar waiver allowing him to communicate with former colleagues.

Including Shine and Kudlow, the White House has granted a total of 20 waivers to provisions of various federal ethics laws and the ethics pledge that President Trump instituted by executive order the week he took office. Federal agencies have granted many more such waivers.

The news media has been a particular object of those waivers. Early in the administration, after The Daily Beast questioned the propriety of then-White House chief strategist Steve Bannon’s communications with employees of Breitbart News, the pro-Trump outlet he led before and after his White House tenure, the White House issued a blanket ethics waiver allowing all senior West Wing appointees to freely communicate with the press.

That move was widely seen as an effort to retroactively cover Bannon for previous meetings that would’ve otherwise run afoul of ethics rules—a move that may itself have constituted a violation of those rules.

Kudlow, a former CNBC host, received a similar waiver allowing him to communicate with former colleagues.

Including Shine and Kudlow, the White House has granted a total of 20 waivers to provisions of various federal ethics laws and the ethics pledge that President Trump instituted by executive order the week he took office. Federal agencies have granted many more such waivers.

The news media has been a particular object of those waivers. Early in the administration, after The Daily Beast questioned the propriety of then-White House chief strategist Steve Bannon’s communications with employees of Breitbart News, the pro-Trump outlet he led before and after his White House tenure, the White House issued a blanket ethics waiver allowing all senior West Wing appointees to freely communicate with the press.

That move was widely seen as an effort to retroactively cover Bannon for previous meetings that would’ve otherwise run afoul of ethics rules—a move that may itself have constituted a violation of those rules.

[The Daily Beast]

Kudlow: Trudeau ‘stabbed us in the back’

White House economic adviser Larry Kudlow repeatedly accused Canadian Prime Minister Justin Trudeau of “betrayal” and saying he “stabbed us in the back” for standing up to President Donald Trump after the G-7 meeting.

Speaking hours after Trump ordered the U.S. not to endorse the G-7 communique, Kudlow slammed Trudeau for a “sophomoric play” in holding a press conference after the G-7 meetings and saying Canadians “will not be pushed around.” Soon afterward, Trump tweeted that the U.S. would not participate in the G-7 communique agreed to earlier on Saturday.

“He really kind of stabbed us in the back,” said Kudlow, the White House National Economic Council director, speaking on CNN‘s “State of the Union.“

Kudlow, who said he was in the bilateral meeting with Trudeau and Trump, said the two leaders “were getting along famously.”

“We were very close to making a deal with Canada on NAFTA, bilaterally perhaps, and then we leave and Trudeau pulls this sophomoric, political stunt for domestic consumption.”

Kudlow told Jake Tapper he likes Trudeau personally, but that the Canadian leader was trying to score political points in attacking Trump.

“Trudeau made an error. He should take it back. He should pull back on his statements,” Kudlow said.

[Politico]

Reality

Trump left the G-7 and did a news conference bashing Canada on trade. Then Trudeau did a news conference in which he said the same things about the steel/aluminum tariffs he’s been saying for a week.

They were not close to making a bilateral NAFTA deal. He’s just making things up.

Ah, Kudlow finally explains what’s going on here: “Now, POTUS is not gonna let a Canadian prime minister push him around, push him, POTUS, around, President Trump, on the eve of this — he is not going to permit any show of weakness on a trip to negotiate with North Korea.”

So…per the White House, Trump is insulting the prime minister of Canada because he wants to impress Kim Jong Un.

Kudlow: ‘Don’t blame Trump’ for the trade conflicts he created

Top White House economic advisor Larry Kudlow contended Wednesday that President Donald Trump should not be held responsible for mounting trade conflicts with American allies, as the president gets set to face world leaders angered by tariffs imposed by the U.S.

“Don’t blame Trump. Blame the nations that have broken away” from fair trade practices, he told reporters. The global trade system “is broken and President Trump is trying to fix it. And that’s the key point,” Kudlow added.

The National Economic Council director downplayed concerns about tensions with key American allies ahead of Trump’s trip to Canada at the end of the week for a summit with leaders of the Group of 7 economies. Trump recently imposed tariffs on steel and aluminum imports from countries including the other six members — Canada, FranceGermanyItalyJapan and the United Kingdom — prompting retaliatory measures against the U.S.

The developments have prompted concerns about a trade war that could damage the U.S. economy or cause frayed relations with allies. The tariffs have sparked backlash not only abroad but at home, where Trump is trying to stop an effort from free trade Republicans to push back against the measures. Both U.S. lawmakers and foreign officials have questioned Trump’s national security justification for imposing the tariffs.

Ahead of Trump’s G-7 meetings, Kudlow, a former CNBC senior contributor, downplayed the prospect of a “trade war” with allies — calling the tensions “disputes that need to be solved.” He said he hopes the summit, where Trump will have bilateral talks with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron, will lead to substantive discussions on trade.

Last week, the Trump administration said it would not exempt Canada, Mexico and the European Union from tariffs on steel and aluminum imports. The decision came as the U.S., Canada and Mexico have faltered in efforts to strike a revised North American Free Trade Agreement.

Trump has long pledged to crack down on what he calls unfair trade practices and bad trade deals. He contends foreign countries had punished U.S. companies and stolen jobs away from American workers — one component of the appeal that carried him to the White House. Ultimately, he wants to increase U.S. exports and reduce trade deficits.

While numerous Republicans who support Trump — and Democrats who typically do not — have backed tough responses to alleged trade abuses by China, the tariffs on the key American allies brought the harshest response yet to Trump’s trade actions both domestically and abroad. Trudeau reportedly said he wanted to have “frank” talks with Trump during the G-7 meetings.

Asked whether Trump had damaged relations with Canada, Kudlow answered that he was not worried about temporary tensions.

“I have no doubt the United States and Canada will remain firm friends and allies,” Kudlow said.

The White House economic advisor also denied reports that Treasury Secretary Steven Mnuchin pushed for a tariff exemption for Canada during a meeting this week. Kudlow said both he and the Treasury secretary attended the meeting and did not say a word.

The U.S. has also sought help from allies as it tries to reach a deal to reduce trade deficits with China and stop alleged theft of U.S. intellectual property by Chinese companies. The U.S. has reached neither a broad deal with China to avoid potentially damaging tariffs, nor an agreement to revive Chinese telecommunications company ZTE, according to Kudlow.

He said he believes the rest of the world agrees with Trump about Chinese trade practices.

[CNBC]