Pentagon sidelined as Trump tariffs worry defense firms, anger allies

PENTAGON HANGING BACK IN TARIFF FIGHT: In February, Defense Secretary Jim Mattis sided with the rest of the Trump administration that steel and aluminum imports are a national security issue. But Mattis wrote in a memo that he was “concerned about the negative impact on our key allies” and that he preferred targeted tariffs. On Thursday, the Pentagon said it was still reviewing President Trump’s decision to go ahead with 25 percent steel and 10 percent aluminum tariffs on Canada, Mexico and the European Union. Trump first authorized the tariffs in March. The move had the U.S. teetering on the edge of a full-blown trade war with Canada and other long-time military allies France, Germany and the UK.

“The secretary’s statement stands, but what I would say is we have to take a holistic view and consider what the impact is. And it’s just too early to say right now,” said Dana White, the chief Pentagon spokesperson.

U.S. defense firms could suffer, Aerospace Industries Association CEO Eric Fanning told reporters Thursday. “We have concerns about tariffs for a number of reasons: Its impact on the global supply chain, what that could mean to our companies. Certainly what escalation might mean in retaliation,” Fanning said, according to Defense News. The Association’s members, he said, rely heavily on exports.

Byron Callan, with Capital Alpha Partners, said U.S. systems that don’t have competition from European firms should be fine. “But if Europe has options, I would expect the U.S. will be its second choice,” Callan told Defense News.

Canadian Prime Minister Justin Trudeau called the tariffs “totally unacceptable” and said they could drive up the cost of military hardware. “Canada is a secure supplier of steel and aluminum to the U.S. defense industry, putting aluminum in American planes and steel in American tanks. … That Canada could be considered a national-security threat to the United States is inconceivable,” Trudeau said during a news conference.

The other allies also reacted angrily to the tariffs. German Chancellor Angela Merkel called the tariffs illegal and the UK said it was very disappointed. The allies were preparing to retaliate with their own tariffs as Commerce Secretary Wilbur Ross said the Trump administration was eager to continue negotiations.

Mattis had advised that Trump hold off on aluminum tariffs, saying a threat alone might be enough to convince “bad actors” in international trade. The administration should have also made clear to allies that the tariffs were not targeting them, Mattis wrote in the February memo. “It is critical that we reinforce to our key allies that these actions are focused on correcting Chinese overproduction and countering their attempts to circumvent existing anti-dumping tariffs — not the bilateral U.S. relationship,” Mattis wrote.

CHANGING OF THE GUARD: Trump will be speaking at today’s change of command ceremony at U.S. Coast Guard Headquarters in Washington at 11 a.m. Commandant Adm. Paul Zukunft will be relieved by Coast Guard Atlantic Area Commander Vice Adm. Karl Schultz. Homeland Security Secretary Kirstjen Nielsen is also expected to attend.

MATTIS IN SINGAPORE: Mattis is in Singapore to attend the Shangri-La Dialogue. His speech on the challenges of Indo-Pacific security is set for Saturday morning, 8:30 p.m. tonight Washington time. Full agenda and live stream info here.

Good Friday morning and welcome to Jamie McIntyre’s Daily on Defense, compiled by Washington Examiner National Security Senior Writer Jamie McIntyre (@jamiejmcintyre), National Security Writer Travis J. Tritten (@travis_tritten) and Senior Editor David Brown (@dave_brown24). Email us here for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. And be sure to follow us on Twitter @dailyondefense.

HAPPENING TODAY: The North Korean delegation that landed in New York this week is expected to travel to Washington, D.C., today to bring Trump a personal letter from Kim Jong Un, Trump told reporters at Joint Base Andrews before departing for Houston yesterday. He added that Secretary of State Mike Pompeo’s meetings this week with the delegation had gone “very well.”

Former North Korean military intelligence chief Kim Yong Chol, who is on a Treasury Department sanctions list, had to get another special waiver to travel beyond New York City to hand deliver the letter to Trump.

BUT WILL THE SUMMIT HAPPEN? “I don’t know the answer to that,” Pompeo said in New York, after his talks with Kim, but he did say there was reason for optimism.

“We’ve made real progress in the last 72 hours towards setting the conditions” for the summit to take place, he said. “The conditions are, putting President Trump and Chairman Kim Jong Un in a place where we think there can be real progress made by the two of them meeting.”

The talks were expected to go into the afternoon, but ended around 11:30 a.m. “We didn’t end the talks early,” Pompeo said. “We had a set series of items that we wanted to make sure we covered — topics which would make sure that we were clear on the terms of what our expectations were, and their expectations in return of us. We achieved that.”

FAILURE WOULD BE ‘TRAGIC WASTE’: “Our two countries face a pivotal moment in a relationship in which it could be nothing short of tragic to let this opportunity go to waste,” Pompeo said. “I’ve been very clear that President Trump and the United States’ objective is very consistent and well known: the complete, verifiable, and irreversible denuclearization of the Korean Peninsula.” In return, Pompeo promises “a brighter path” for North Korea.

“We envision a strong, connected and secure prosperous North Korea that maintains its cultural heritage, but is integrated into the community of nations. We think that working together, the people of the United States and North Korea can create a future defined by friendship and collaboration, not by mistrust, and fear and threats. We sincerely hope that Chairman Kim Jong Un shares this positive vision for the future.”

ASSAD WINNING IN SYRIA: In a friendly interview with RT, Russia’s state-owned international new channel, Syrian President Bashar Assad says he is closer to total victory over opposition forces, and would have won already if not for the interference by the West, specifically the United States.

Assad also warned the United States to get out of Syria before it is forced to leave. “The Americans should leave somehow. They are going to leave,” Assad said. “We are going to resort to liberating the area by force, with the Americans or without the Americans.”

Assad is seeking to reassert control over his entire country after seven years of civil war. “I think the best choice is to make reconciliation. This is our plan,” Assad told RT. “But when it doesn’t work, the only measure to resort to is the force.”

At the Pentagon yesterday, Lt. Gen. Frank McKenzie had a warning of his own for Assad. “Any interested party in Syria should understand that attacking U.S. forces or our coalition partners will be a bad policy.”

Meanwhile, he says, U.S.-backed Syrian Democratic Forces are continuing mop-up operations against the last remnants of Islamic State fighters in eastern Syria. “We wouldn’t want to put a timeline on that, but we’re making progress, and, in concert with our SDF partners, I think that, you know, we’re beginning to clear out the final pockets of ISIS,” McKenzie said.

McKenzie said it won’t be possible to kill every last ISIS fighter, because some will go underground. “But what we want to do is leave behind … security elements that are going to be able to maintain it at the local level.”

WHAT MAN HAS MADE, MAN CAN PUT ASUNDER: With all the hand-wringing over China’s militarization of islands it’s constructed in the South China Sea, one reporter asked McKenzie at yesterday’s regular Thursday briefing, “What’s the ability of the United States military to blow apart one of these man-made islands?” After the laughter subsided, McKenzie said, “I would just tell you that the United States military has had a lot of experience in the Western Pacific, taking down small islands.”

Worried the quip might be interpreted as a military threat, another reporter asked for a clarification to make sure that McKenzie was referring to World War II, and wasn’t sending a message to China. “It’s just a fact,” McKenzie said. “We have a lot of experience, in the Second World War, taking down small islands that are isolated. So that’s a core competency of the U.S. military that we’ve done before. You shouldn’t read anything more into than a simple statement of historical fact.”

BOEING WINS THE CASTING CALL: When Tom Cruise brings “Maverick” back to the silver screen, he’ll be snubbing the most expensive U.S. fighter jet in history, Lockheed Martin’s F-35, for a Boeing F/A-18 Super Hornet.

Cruise, who played Lt. Pete “Maverick” Mitchell in 1986’s “Top Gun,” tweeted a picture of himself looking at the Boeing fighter used in the upcoming “Top Gun 2” with the caption “Feel the Need.”

The choice of Boeing’s jet is a PR win for the Chicago-based company, as once-stagnant sales of the Super Hornet to the federal government begin to heat up. The starring role for the F/A-18 is likely particularly satisfying for Boeing because it lost the lucrative Joint Strike Fighter contract to Lockheed in 2001, the first year of George W. Bush’s presidency.

“This line was in danger several years ago of starting to shut down, and they’ve stabilized,” said Mackenzie Eaglen, national security analyst at the American Enterprise Institute. “While the line has stabilized on its own, this doesn’t hurt in general in helping to bolster the opinion of the aircraft.”

NO POINTS FOR 2ND PLACE: Cruise’s tweet also sparked a Twitter dogfight between the official U.S. Air Force and Navy accounts. The Air Force tweeted, “If Maverick really had a need for speed, he could hop into one of our F-15E Strike Eagles! #DYK: They have a top speed of 1,875 miles per hour.”

To which the Navy tweeted back, “Replying to @usairforce: Remember, boys, no points for second place. @flynavy,” a reference to an iconic line in the original 1986 movie.

McRAVEN’S PARTING WORDS: Adm. William McRaven, the former head of U.S. Special Operations Command, who went on to serve as chancellor of the University of Texas System, has written a farewell letter to his colleagues on his final day on the job.

“The future of our nation rests, not solely, with the quality of our education or the effectiveness of our care. The future rests with whether we have taught our young men and women the importance of being noble, the power of the noble deed. If we have taught them well, those who have achieved much will give back to those who struggle. If we have taught them well, the strong of spirit will stand tall with the weak and downtrodden. If we have taught them well, they will understand the importance of honesty and integrity, two qualities that will define their legacy in life. If we have taught them well, they will see that true courage is confronting the injustices, big and small, that leave many less fortunate than ourselves. And, if we have taught them well, they will find faith in mankind, and know that there is nothing more honorable, nothing more noble, than doing good for others.”

McRaven, who was the commander of the operation that killed Osama bin Laden, is also the author of Make Your Bed: Little Things That Can Change Your Life … And Maybe the World, an inspirational book that grew out of a 2014 commencement speech he gave at the University of Texas at Austin about 10 lessons he learned in Navy SEAL training.

THE RUNDOWN

Bloomberg: Disputed Pentagon Cloud Proposal to Be Delayed for More Study

Breaking Defense: The Navy’s Potential New Frigate Connects Crew, Lots of Space for Commandos

Reuters: U.S. withdrawal may halt nuclear nonproliferation work in Iran: diplomats

Task and Purpose: You Can Always Tell When Generals Don’t Have A Good Answer: They Invoke 9/11

Defense One: The Status Quo Killed 17 US Sailors. The Navy Must Change.

Defense One: Back Off, Congress: Don’t Meddle With the US Navy’s Command Philosophy

New York Times: What Is Terrorism? Attacks in Canada and Belgium Reflect Uncertain Definition

DoD Buzz: F-22 Raptors Replace F-35As in Pacific for Theater Security Mission

The Hill: US-led coalition acknowledges more civilian deaths in war against ISIS

USNI News: Pentagon Pledges More Freedom of Navigation Operations in South China Sea

Reuters: China Says Carrier Group Has Reached ‘Initial’ Combat Readiness

Calendar

FRIDAY | JUNE 1

8:15 a.m. 775 12th St. NW. Truman Center and Truman Project TruCon18 Annual Conference. trumanproject.org

8:45 a.m. 2301 Constitution Ave. U.S.-North Korea Media Roundtable Breakfast and Conference Call. usip.org

9 a.m. 1789 Massachusetts Ave. NW. Military challenges in the Asia Pacific: US responses to regional competition. Aei.org

11 a.m. Coast Guard Headquarters, Washington. Commandant Adm. Paul F. Zukunft will be relieved by U.S. Coast Guard Atlantic Area Commander Vice Adm. Karl L. Schultz in a change of command ceremony.

MONDAY | JUNE 4

10 a.m. 1616 Rhode Island Ave. NW. Maritime Security Dialogue: Innovation and the Marine Air-Ground Task Force with Lt. Gen. Brian Beaudreault, Deputy Commandant of Plans, Policies, and Operations; Lt. Gen. Robert Hedelund, Commanding General of II Marine Expeditionary Force; and Lt. Gen. Robert Walsh, Commanding General of Marine Corps Combat Development Command. csis.org

11 a.m. 1152 15th St. NW. “Technology Roulette: Managing Loss of Control as Many Militaries Pursue Technological Superiority” Report Launch. cnas.org

12:15 p.m. 740 15th St. NW. From Revolution Muslim to Islamic State: The American Roots of ISIS’ Online Prowess. newamerica.org

12:15 p.m. North Korea’s Smile Diplomacy: Breakthrough or Déjà Vu? defenddemocracy.org

TUESDAY | JUNE 5

8 a.m. 300 First St. SE. The Nuclear Deterrent Breakfast Series: NATO and Extended Deterrence and Missile Defense. mitchellaerospacepower.org

11:30 a.m. 2425 Wilson Blvd. Institute of Land Warfare and the Israeli Institute of Advanced Military Thinking: Lessons from the Yom Kippur War. ausa.org

12:15 p.m. 1800 M St. NW. Iran’s Deceptive Financial Practices with Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Intelligence. defenddemocracy.org

12:30 p.m. 1777 F St. NW. Northern Syria: The United States, Turkey, and the Kurds. cfr.org

1:15 p.m. 1775 Massachusetts Ave. NW. A discussion on priorities for the U.S. Army with Secretary Mark Esper. brookings.edu

1:30 p.m. 214 Massachusetts Ave. NE. U.S.-North Korean Summit: Cancelled or Postponed? heritage.org

3:30 p.m. 1775 Massachusetts Ave. The Marshall Plan’s 70th anniversary and the future of development cooperation. brookings.edu

WEDNESDAY | JUNE 6

8 a.m. 300 First St. SE. The Nuclear Deterrent Breakfast Series: Missile Defense Perspectives. mitchellaerospacepower.org

8:30 a.m. 800 Florida Ave. NE. Agile in Government Summit. ndia.org

10 a.m. Dirksen 342. Hearing on S. 2836, the Preventing Emerging Threats Act of 2018: Countering Malicious Drones. hsgac.senate.gov

11 a.m. 1616 Rhode Island Ave. NW. Why Americans Should Study Military History: A Conversation with Dennis Showalter, Retired Professor of History at Colorado College. csis.org

12 noon. 740 15th St. NW. Countering Disinformation and Violent Extremism in the Digital Age. newamerica.org

12 noon. 1127 Connecticut Ave. NW. The Founding Principles as Pillars of Our Foreign Policy with Rep. Mike Gallagher. fedsoc.org

2 p.m. Rayburn 2154. Hearing on Protecting America from a Bad Deal Ending U.S. Participation in the Nuclear Agreement with Iran. oversight.house.gov

2:30 p.m. Dirksen 342. Subcommittee Hearing on War Powers and the Effects of Unauthorized Military Engagements on Federal Spending. hsgac.senate.gov

5 p.m. 1616 Rhode Island Ave. NW. Book launch of “Peace Works: America’s Unifying Role in a Turbulent World.” csis.org

5:30 p.m. 2425 Wilson Blvd. Institute of Land Warfare Hosts Adm. Kurt Tidd, Commander of U.S. Southern Command. ausa.org

THURSDAY | JUNE 7

8 a.m. 2401 M St. NW. Defense Writers Group Breakfast with Adm. Kurt Tidd.

9 a.m. House Visitor Center 201. Protecting the “Pipeline”: Overcoming the Air Force’s Pilot Shortage with Brig. Gen. Michael Koscheski, Director of Aircrew Crisis Task Force. mitchellaerospacepower.org

9:30 a.m. 1211 Connecticut Ave. NW. An Action Plan on U.S. Drone Policy. stimson.org

12:30 p.m. 1211 Connecticut Ave. NW. The Nonproliferation Treaty at Fifty. stimson.org

1:30 p.m. 2301 Constitution Ave. The Long Search for Peace in Afghanistan. usip.org

FRIDAY | JUNE 8

8 a.m. 300 First St. SE. The Mitchell Space Breakfast Series: Space Rapid Capabilities Office Discussion with Lt. Gen. John Thompson, Commander of Space and Missile Systems Center, Air Force Space Command. mitchellaerospacepower.org

9 a.m. 1616 Rhode Island Ave. NW. Press Briefing: Preview of the Proposed Trump-Kim Summit. csis.org

QUOTE OF THE DAY
“Any interested party in Syria should understand that attacking U.S. forces or our coalition partners will be a bad policy.”
Joint Staff Director Lt. Gen. Frank McKenzie in response to a threat from Syrian President Bashar Assad to force U.S. troops to leave Syria.

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