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New trade wars on the horizon: Trump signals return of ‘isolationist’ Lighthizer

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Robert Lighthizer, who served as U.S. Trade Representative (USTR) during Donald Trump’s first term and was instrumental in initiating the U.S.-China trade war, has been offered a return to the same role.

Sources familiar with Trump’s transition team discussions told Financial Times (FT) that Lighthizer has been asked to resume the USTR position, despite his interest in other posts, including a possible role at the Department of Commerce.

Lighthizer has also expressed interest in the Treasury Secretary position, though this role is expected to go to a financial sector expert, with candidates including hedge fund managers Scott Bessent and John Paulson.

Given Lighthizer’s influence in shaping trade policy during Trump’s first term, particularly with his “isolationist” stance, his potential reappointment could raise concerns in Beijing and among U.S. allies. Trump has previously pledged to impose high tariffs on imported goods, especially those from China.

Although Trump considered Lighthizer for Commerce Secretary, insiders suggest he is more likely to offer this position to Linda McMahon, the billionaire co-chair of Trump’s presidential transition team.

Democrats support Lighthizer’s appointment

Representative Brendan Boyle of Philadelphia, the ranking Democrat on the House Ways and Means Committee—which oversees trade—expressed support for Lighthizer’s appointment. “I worked with Bob Lighthizer on the US-Mexico-Canada Agreement (USMCA) during his tenure as USTR. He was bipartisan in his approach and respected across the political aisle,” Boyle commented.

With three decades at Wall Street firm Skadden Arps, Lighthizer fought for U.S. steel interests against imports from China, representing companies like U.S. Steel. In a recent book, he even praised aspects of Biden’s trade policies, noting, “Our success explains why the Biden administration has continued many of the U.S. trade policy changes that President Trump, and I initiated.”

The ‘missile man’ who faced Japan

Lighthizer was also instrumental in the U.S.-Japan trade war of the 1980s, earning the nickname ‘Missile Man’ for his aggressive negotiation style. During heated talks, he famously folded one of Japan’s proposals into a paper airplane and launched it back at the Japanese delegation. Appointed Deputy USTR in 1983, Lighthizer played a critical role in pressuring Japan to limit exports of steel, cars, and other goods—a strategy he later adapted for renegotiating NAFTA and other trade agreements.

Criticism of free trade and industrial job losses

In the early 2000s, Lighthizer advocated for tariffs on steel imports to protect U.S. industries. Shortly before the recent U.S. election, he wrote an opinion piece in Financial Times blaming free trade for manufacturing job losses and describing the U.S. trade deficit as “alarming.” “Facing a system that is fundamentally failing our country, Trump has resolved to take decisive action,” Lighthizer wrote.

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Trump continues to fill his cabinet with Israel supporters

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President-elect Donald Trump continues to shape his cabinet, set to take office in January. Trump has nominated South Dakota Governor Kristi Noem to lead the Department of Homeland Security. She will work closely with Border Czar Tom Homan to “secure the border and ensure that our American homeland is safe from our enemies,” Trump stated.

Kristi Noem, a devout Christian and the first woman elected governor of South Dakota, is now in her second term. Reflecting on her leadership in South Dakota, Trump highlighted Noem’s dedication to border security: “Kristi has been very strong on border security. She was the first governor to send National Guard troops to aid Texas during the Biden Border Crisis—a commitment she’s upheld eight times.”

Noem has faced criticism for controversial remarks suggesting South Dakota’s indigenous tribes benefit from the drug cartel industry. This statement led to her being banned from all nine reservations in the state.

Although not a border state governor, Noem has consistently taken a tough stance on immigration. In 2010, she supported an effort to block the Obama administration’s lawsuit against Arizona’s immigration law. During Trump’s first term, she called for punitive actions against sanctuary cities that refuse to cooperate with federal immigration authorities.

Noem is also known as a strong supporter of Israel. Earlier this year, she signed a bill mandating that the International Holocaust Remembrance Alliance’s (IHRA) definition of anti-Semitism be used in discrimination investigations. The bill, titled “Ensuring the Safety of God’s Chosen People,” garnered praise from former Israeli Foreign Minister Israel Katz, who called Noem a “true friend of Israel.”

In March 2024, Noem faced a lawsuit from Travelers United, a consumer advocacy group, after endorsing a Texas-based cosmetic dentist without disclosing a financial relationship. Travelers United claimed Noem had begun “working as a social media influencer,” promoting services without transparency. Noem clarified on X (formerly Twitter) that she “never received any money” for these alleged endorsements.

New Israeli Ambassador Huckabee: ‘There is no such thing as a Palestinian’

Donald Trump announced that Mike Huckabee, former Arkansas governor, will serve as U.S. ambassador to Israel. A long-time ally of Israeli Prime Minister Benjamin Netanyahu, Huckabee has consistently supported Jewish settlers and backs Israel’s claim to annex parts of the occupied West Bank.

“Mike Huckabee loves Israel and the people of Israel. He will work tirelessly for peace in the Middle East,” Trump stated. Huckabee, an evangelical pastor and host on the Trinity Broadcasting Network (TBN), is a staunch defender of Israel’s historical rights in the West Bank and believes in Israel’s right to annex this region.

Fox News host Hegseth tapped to lead Pentagon

Trump’s selection of Fox News host and former military officer Pete Hegseth as head of the Pentagon surprised many. Hegseth, a vocal America First proponent, lacks traditional government or Pentagon experience, sparking discussion on Trump’s unconventional choice.

“Pete is tough, smart, and a true believer in America First. With Pete at the helm, America’s military will be great again, and our enemies will take notice,” Trump remarked.

Though Hegseth’s selection deviates from Trump’s other traditional security appointments, he has gained Trump’s respect through his book, The War on Our Warriors, which criticizes left-wing attitudes toward U.S. troops. Hegseth is a decorated Army combat veteran and former CEO of Concerned Veterans for America, a group funded by the Koch brothers that advocates for outsourcing veterans’ healthcare.

Hegseth also garnered Trump’s favor through his advocacy for the pardons of service members convicted of war crimes, including 1st Lieutenant Clint Lorance and Major Mathew Golsteyn.

CIA appointment: Ratcliffe’s anti-Iran stance

John Ratcliffe, former Director of National Intelligence, has been appointed CIA Director, reinforcing Trump’s hardline stance against Iran. Ratcliffe replaces Bill Burns, who led Biden’s attempts to broker ceasefires in Gaza.

An outspoken critic of Biden’s foreign policy, Ratcliffe has accused the administration of downplaying intelligence on Hamas to avoid escalation. He argues that deprioritizing Middle Eastern intelligence has left the U.S. vulnerable to terrorist threats. Ratcliffe also alleged Iranian interference in the 2020 election, accusing the regime of trying to “foment social unrest” in the U.S.

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Ukraine offers natural resources to win Trump’s support

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The Ukrainian government’s “victory plan” for the incoming Donald Trump administration seeks to influence the US president-elect by highlighting potential business deals, access to raw materials, and troop deployments.

According to The Financial Times (FT), Ukrainian and European officials report that Ukraine’s allies in Europe and the US, including senior Republicans, are consulting on how best to propose initiatives that encourage closer cooperation with Kyiv rather than cut essential aid to the country.

These proposals stem from concerns among Ukrainian and European officials that Trump may move quickly toward a peace deal with Russia, potentially jeopardizing Western support for Ukraine.

Two of the ideas reportedly presented to Trump are outlined in Volodymyr Zelensky’s “victory plan.” They were later presented to the Ukrainian president during his meeting with Trump in New York in September.

One proposal suggests replacing some US troops stationed in Europe with Ukrainian forces after the war ends. The other, initially conceived by Republican Senator Lindsey Graham, proposes sharing Ukraine’s critical natural resources with Western partners, according to sources involved in drafting Zelensky’s plan.

A source familiar with the meeting said Trump expressed interest in these two points.

Ukrainian business leaders are also in talks with the government about granting Trump “investment screening” powers that would allow him to select who can do business in the country. An insider described this concept as “ABC—anybody but China,” a stance believed to resonate with Trump.

Certain Ukrainian industries, particularly those relying on Chinese technology and materials like telecommunications, could transition to US suppliers, potentially attracting Western investment. While still in its early stages, some business leaders close to the presidential administration believe this idea could appeal to Trump.

After Trump’s re-election last week, Zelensky reported a “great” first phone call. However, officials in Kyiv and its allies worry the US could reduce military support when Republicans take office in January.

Officials added that Ukraine and its allies fear Russian President Vladimir Putin, strengthened by Russia’s battlefield successes, may “drive a hard bargain” and pressure Washington into a peace deal favoring Moscow.

A person involved in drafting Kyiv’s proposal remarked, “The first to blink loses this game. Putin thinks he is on a winning track and can secure everything he wants.”

Meanwhile, European officials are concerned about being excluded from Trump-led negotiations and lacking influence over any potential solutions that could impact European security in the medium term.

Western allies have reacted somewhat indifferently to the “victory plan,” especially regarding the call for NATO membership for Kyiv and advanced weapons support.

An individual involved in the planning stated that Ukraine began drafting its proposals over the summer “to establish our narrative before Trump establishes his.”

Long frustrated by President Joe Biden’s reluctance to escalate military support, Kyiv hopes Trump will find the points specifically tailored for him compelling.

“The level of dissatisfaction with the Biden administration had reached a point where they felt it was time for change, and that this change [to Trump] could be beneficial,” the source said.

Oleksandr Merezhko, chairman of the Ukrainian parliament’s foreign affairs committee, described the offer to the incoming US president as “a strategic move to demonstrate that Ukraine is not a burden on the West.”

“Trump wants to be a winner, not a loser. To be a winner, he needs to show Putin his place,” Merezhko added.

Sources also indicate that Kyiv aims to “appease the Trump camp” by replacing Oksana Markarova, its ambassador to Washington. Republican House Speaker Mike Johnson had called for Markarova’s dismissal after she organized an all-Democrat visit to a US munitions factory for Zelensky in September.

Former Foreign Minister Dmytro Kuleba was reportedly offered the post but declined.

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Donald Trump taps Marco Rubio as his Secretary of State and Mike Waltz as National Security Advisor

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President-elect Donald Trump continues to assemble his cabinet, recently filling two critical posts: Secretary of State and National Security Advisor.

Florida Senator Marco Rubio has been appointed U.S. Secretary of State. Known for his tough stance on China, Iran, Cuba, and Venezuela and as a staunch supporter of Israel, Rubio’s appointment highlights a foreign policy direction aligned with Trump’s hardline approach on international issues.

Rubio, who has previously questioned U.S. aid to Ukraine, recently suggested that the war has reached a stalemate and should be “brought to an end”:

“I think the Ukrainians have been incredibly brave and strong in standing up to Russia, but at the end of the day, what we’re funding here is a stalemated war, and it needs to be brought to a conclusion. I think there should be some common sense here,” he added.

Rubio also argued that “you don’t have to be a fan of Vladimir Putin to end the war,” indicating a pragmatic view of the Ukraine-Russia conflict.

Rubio’s ‘axis of evil’: China, Iran, Cuba, Venezuela

Rubio, a prominent China hawk sanctioned by Beijing in 2020 for his stance on Hong Kong protests, has consistently advocated for a firm U.S. stance against Chinese influence. In 2019, he called on the Treasury Department to launch a national security review of TikTok’s acquisition of Musical.ly, leading to an investigation and eventual divestment order.

As the ranking Republican member of the Senate Intelligence Committee, Rubio has also pressured the administration on Huawei, calling for a complete sales block after the sanctioned Chinese tech giant released a new laptop powered by Intel’s AI processor chip.

Waltz: A decorated Green Beret advocating for strong U.S. global role

Mike Waltz, a decorated Green Beret and Army veteran, brings extensive experience to his role as National Security Advisor. Waltz’s military service and work at the Pentagon are detailed in his book, The Warrior Diplomat: The Wars of a Green Beret from Washington to Afghanistan.

Since his election to Congress in 2018, Waltz has served on Armed Services, Foreign Relations, and Intelligence Committees. His views on U.S. national security and foreign policy align with Republican perspectives, affirming the key role of the United States in global affairs.

While Waltz has encouraged NATO allies to increase defense spending, he has refrained from endorsing Trump’s occasional calls for the U.S. to withdraw from NATO. “Look, we can be allies and friends and have tough negotiations,” he stated recently.

Waltz: China hawk and advocate for stronger sanctions on Russia

Waltz believes the U.S. should continue supporting Ukraine, though he recently recommended a reassessment of financial support. Known for his tough stance on China, he has argued that the U.S. should prepare for potential conflict in the Pacific and sponsored legislation to reduce dependence on critical minerals from China and protect American universities from Chinese espionage.

Following the U.S. withdrawal from Afghanistan in 2021, Waltz frequently criticized President Joe Biden and the White House. In a recent NPR interview, he argued that it is “perfectly reasonable” to seek a diplomatic resolution to the war in Ukraine.

Waltz suggested that the U.S. could gain leverage over Russian President Vladimir Putin by imposing energy sanctions on Russia and increasing U.S. energy exports. “His economy and his war machine will dry up very quickly. I think that would bring Putin to the table,” he remarked, hinting that long-range weapons supplied to Ukraine could be used for strikes deeper into Russian territory.

Waltz: Bridging the gap between the Pentagon and Silicon Valley

Waltz’s new role as National Security Advisor could lead to stronger collaborations between the Pentagon and Silicon Valley. He advocates for a cultural shift in defense procurement and innovation, saying, “There are a lot of new technologies coming out of Silicon Valley and elsewhere that are really itching to help with our defense and security problems, and they can’t get through the bureaucracy.”

He concluded, “New leadership is essential, and a cultural change is needed.”

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