NEW: By Trump’s own benchmarks, his approach to trade hasn’t worked. Here’s my story about what he set out to do, the guy he chose to do it, the agency that carried it out, and the result so far. It’s the most complex, hard-to-balance piece I’ve ever written. This is why. 1/
I talked to dozens of former & current USTR employees, their foreign counterparts, and interest groups. USTR has long been seen as a special agency. Consistently across administrations, about 250 experts & lawyers considered it their mission to break down trade barriers overseas.
Enter Robert Lighthizer, probably the perfect person to carry out Trump’s agenda. He shared the president’s views, but had a much deeper understanding of arcane trade law and how negotiations work from his decades representing the steel industry. 3/
But from the start, Lighthizer was hampered by the impetuous tendencies of his boss, who alienated allies and was so relentlessly focused on trade deficits and tariffs that American diplomats had little room to maneuver. Many said they lost credibility with negotiating partners.
Lighthizer earned a grudging respect for his professionalism & skill, but many career staff said that decisionmaking was concentrated in a small group around him. Some couldn’t bear the confrontational attitude they were forced to bring to relationships with allies. 5/
They wanted to believe that the get-tough approach would work. And it did send a signal to corporate America that sending jobs to China would no longer be easy. But so far, those jobs have flowed instead to China’s neighbors, not the U.S., as companies sought to avoid tariffs. 6/
If you look at the difference between America’s exports and its imports—which is what Trump does—the approach hasn’t worked. Manufacturing output and employment flatlined in 2019 as retaliatory tariffs took a toll, as did the duties on imports needed to make U.S. products.
As for China, which targeted U.S. agricultural industries with retaliatory tariffs: The “phase 1” deal avoided most of the hard issues and there likely won’t be a phase 2. China is far behind on its promised $200 billion in purchases, so few U.S. businesses are better off. 8/
Re-negotiating NAFTA was a Lighthizer triumph in that it made enough upgrades to labor standards that Democrats felt like it set a new bar for future trade deals. Many found Lighthizer’s dismissive approach to business, which is used to running trade policy, refreshing. 9/
Congress is annoyed that the administration hasn’t sought its approval for its other “mini-deals” with other countries, which means they could essentially be ripped up by the next administration. But lawmakers haven’t taken any steps to curtail the White House’s trade powers. 10/
Meanwhile, Lighthizer essentially drove out the head of the WTO and strangled its highest judicial body, leaving it unable to arbitrate disputes. While previous administrations had problems with the WTO, it’s unclear whether the version that emerges from this will solve them. 11/
(USTR says that multiple headwinds were impacting manufacturing, that its China deal made important advances in market access for U.S. crops and other products that will pay off over the long run, that it still pursues WTO cases, and that Lighthizer values staff input.) 12/
Anyway, we’re left with a profoundly shifted landscape in trade politics and policy, with few tangible benefits so far. Theoretically, that could change, if the disruption persuades more companies to make their goods domestically over the long term. But that’s far from certain.
That’s the short version of the story I’m trying to grapple with here, which will probably be the subject of multiple books. Here’s the longer version: propublica.org/article/robert…
If you're a trade professional with insight on the consequences of all this, I'd be interested in your thoughts -- drop me a note at lydia.depillis@propublica.org, or I'm at 202-913-3717 on Signal.
And my colleagues put out amazing work every damn day. If you want more of ProPublica’s best stuff, sign up for our Big Story newsletter: go.propublica.org/bigstory-social

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More from @lydiadepillis

12 Sep
Happy Saturday. It’s 169 days since the CARES Act passed. As Congress dithers on another relief package, I want to show you what the stimulus has done for people, from the lowest-paid worker to the most profitable Fortune 500 company.

It’s time for a trip to Cleveland. (THREAD)
While reporting on the stimulus’s effects, one truth has jumped out: An outpouring of cash kept many small businesses afloat temporarily, but the law’s most generous, least conditional support went to large companies & the investors who back them.

It was a big corporate rescue.
This happened because the CARES Act allowed the Fed to purchase virtually unlimited quantities of corporate bonds, fueling a rapid recovery in the ability of corporations to borrow -- especially riskier companies that had already taken on a lot of debt.
Read 17 tweets
27 Jul
NEW from me -- One of the biggest beneficiaries of the Paycheck Protection Program is a type of company that only technically employs most of its workers: Staffing firms, which handle payroll and recruitment for other companies, and got billions of dollars in loans. 1/
Temps are often the first to go in a recession, and the industry did shed hundreds of thousands of positions in April and May. But some sectors did very well, including healthcare and janitorial, as companies needed to bring people on for COVID-related jobs ASAP. 2/
We found that about 11,000 temp agencies got PPP money. A substantial number of those used the money to pay temps who were *still working on contracts,* which means that the bills paid by clients often went straight to the staffing firm’s bottom line. 3/
Read 7 tweets
20 Jul
NEW: I got a couple big FOIA requests back recently for correspondence between members of Congress and @USTradeRep about tariff exclusions. One thing jumped out: The lengths to which Polaris, a Minnesota maker of power sports vehicles, went to get itself off the hook. 1/
@USTradeRep Last year, Polaris was looking at paying $90 million in tariffs. So it launched an aggressive campaign in D.C., involving powerful senators and representatives, who also received campaign donations. The lobbying even reached Sec. Mnuchin’s office at Treasury. 2/
@USTradeRep The emails also show a cozy relationship between Polaris lobbyists and top USTR officials, who forwarded Polaris’ appeals on to their own higher ups. Polaris also reached out via Peter Navarro, who asked USTR's chief of staff for assistance. 3/
Read 8 tweets
26 Apr
Sunday morning study catchup time. Interesting work for journalists: What if the "What's the matter with Kansas" problem is fed by press coverage that focuses on the economic fortunes of the wealthy rather than disaggregating them from those of the poor? equitablegrowth.org/wp-content/upl…
The inexorable force of industrial consolidation: As regulators allow hospital chains to get bigger and bigger, one of the only checks on their pricing power is the monopsony of enormous health insurers. nber.org/papers/w27005.…
By April 20, California's shelter-in-place order saved on the order of 1,600 lives, at the cost of about 400-900 jobs per death averted (though that job loss is likely temporary). nber.org/papers/w26992.…
This is what flattening the curve looks like:
Read 5 tweets
21 Apr
NEW: With COVID19 exposing America's dependence on supply chains that often end in China, calls are mounting to bring medical manufacturing back onshore. But that’s not the only type of critical good people wish was still made here. Let me tell you about how we lost BATTERIES. 1/
Lithium ion batteries were developed in part by U.S. scientists. But American companies never had the patience to commercialize them. During the last economic collapse, Obama tried to turn that around, pouring $2.4b into battery companies that would put people back to work. 2/
Most of those early investments fizzled, however, because the Obama administration didn’t follow up its supply-side stimulus with enough on the demand side -- government procurement, charging infrastructure, more electric vehicle subsidies, aggressive emissions standards, etc. 3/
Read 10 tweets
11 Apr
Catching up on all the crazy stuff my colleagues have been digging into this week. Like this dissection of the way the White House is steering huge no-bid contracts for COVID-19 response outside the normal procurement channels and won't explain why or how: propublica.org/article/the-wh…
More ER staffing companies owned by private equity billionaires are cutting pay for healthcare workers and now want bailout money separate and apart from the money flowing to hospitals, by @iarnsdorf propublica.org/article/medica…
The city of Laredo was so desperate for COVID-19 test kits that it jumped on an offer to get in on a shipment from China -- with the help of @RepCuellar -- that turned out to not be authorized by the FDA and were then seized by DHS, by @JinATX
propublica.org/article/he-spe…
Read 5 tweets

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