WEBVTT - House Leaders Plan Spending Cuts 0:00:00.080 --> 0:00:10.119 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.119 --> 0:00:13.880 Bloomberg Balance of Power podcast. Catch us live weekdays at 0:00:13.920 --> 0:00:17.119 noon and five pm Eastern on Apple, Cocklay and Android 0:00:17.160 --> 0:00:20.560 Auto with the Bloomberg Business App. Listen on demand wherever 0:00:20.600 --> 0:00:23.760 you get your podcasts, or watch us live on YouTube. 0:00:25.320 --> 0:00:27.360 So a new member joining the Apple family, which I 0:00:27.360 --> 0:00:30.520 guess is probably pretty extensive. We think about a lot 0:00:30.520 --> 0:00:32.600 of things as families in the business and in the 0:00:32.600 --> 0:00:35.639 political world, including for example, the House Republican conference, where 0:00:35.640 --> 0:00:38.480 there's famously what five families that all have to try 0:00:38.520 --> 0:00:41.440 to get their heads together and pursue the same policy. 0:00:41.479 --> 0:00:44.160 And therein lies the challenge that is facing House Republicans 0:00:44.200 --> 0:00:46.000 right now as they try to find a path forward 0:00:46.320 --> 0:00:50.680 on budget reconciliation to achieve the legislative objectives of President Trump, 0:00:50.760 --> 0:00:54.080 which includes steep tax cuts making permanent his twenty seventeen 0:00:54.120 --> 0:00:57.600 tax cuts, specifically energy and border policy, which they're trying 0:00:57.640 --> 0:01:00.120 in the House to roll all into one bill. We 0:01:00.160 --> 0:01:03.040 got the budget outline yesterday's right. It seems things are 0:01:03.080 --> 0:01:05.319 changing though as they mark things up, with the Budget 0:01:05.400 --> 0:01:08.240 chair Jody Errington now saying if they can't reach two 0:01:08.280 --> 0:01:12.440 trillion dollars in tax cuts the maximum allowed or two 0:01:12.440 --> 0:01:15.160 tucks in spending cuts. Rather, the maximum allowed in tax 0:01:15.200 --> 0:01:18.280 cuts would be four trillion dollars. The problem is just 0:01:18.319 --> 0:01:21.240 renewing the twenty seventeen tax cuts is expected to cost 0:01:21.280 --> 0:01:22.960 a bit more than that, So the math. 0:01:22.880 --> 0:01:26.720 Is difficult here. And that's where Congressman Ralph Norman comes in. 0:01:26.760 --> 0:01:29.040 I'm glad that we have the opportunity to bring in 0:01:29.080 --> 0:01:31.760 a member of the aforementioned House Budget Committee representing South 0:01:31.800 --> 0:01:34.560 Carolina's fifth district with his own point of view here. 0:01:34.600 --> 0:01:37.360 And we're told, Congressman, welcome back to Bloomberg TV and Radio, 0:01:37.360 --> 0:01:40.880 that you're one of two potential no's with the numbers 0:01:40.880 --> 0:01:43.319 that we're hearing. So let's we'll update that. Let's say 0:01:43.319 --> 0:01:45.600 it's at least two trillion in spending cuts, four and 0:01:45.640 --> 0:01:48.800 a half trillion dollar cap on tax cuts, a four 0:01:48.880 --> 0:01:51.760 trillion dollar extension of the debt limit. Would you vote 0:01:51.840 --> 0:01:52.800 yes on a bill like that? 0:01:54.240 --> 0:01:57.560 Well, first of all, what we started out with was 0:01:57.920 --> 0:02:01.280 we could not continue to payath of unsustained spending. 0:02:01.640 --> 0:02:04.720 Spending is a problem for inflation. Inflation. It's not income, 0:02:04.760 --> 0:02:05.440 it's it's spending. 0:02:06.000 --> 0:02:09.639 Uh, the base budget. I voted to get out of committee. 0:02:10.280 --> 0:02:12.799 We had the timeline to meet, which is today for 0:02:12.880 --> 0:02:15.799 the markup, which we're doing. To be honest, I'm confident 0:02:15.919 --> 0:02:18.919 that we're going to have the amendments in place that 0:02:19.080 --> 0:02:22.000 will get the job done. And as you mentioned, we've 0:02:22.040 --> 0:02:26.560 got one point five trillion in baseline number with an 0:02:26.560 --> 0:02:30.440 aspiration of two the tax cuts four tree in four 0:02:30.440 --> 0:02:33.000 and a half, and then with three hundred three hundred 0:02:33.040 --> 0:02:38.839 billion four defense and homeland security, and uh, I think 0:02:38.840 --> 0:02:40.840 we're going to get there. I think it's important for 0:02:40.919 --> 0:02:42.720 us to get our own version out. I know the 0:02:42.800 --> 0:02:47.400 Senate is working on one, but you know, all the 0:02:47.600 --> 0:02:50.120 House is responsible for the purse strains. 0:02:50.360 --> 0:02:51.840 So I'm confident we'll get it out. 0:02:51.880 --> 0:02:55.079 It's going to be a long day, but we expected 0:02:55.120 --> 0:02:57.560 that a lot of amendments, a lot of Democrat amendments, 0:02:57.639 --> 0:02:59.880 and uh, we'll have our own that I'm confident. 0:03:00.040 --> 0:03:01.680 I add to the value. 0:03:02.280 --> 0:03:05.400 Well, obviously, Congressman, getting it out of committee is one hurdle, 0:03:05.440 --> 0:03:07.760 but getting a package that can actually pass on the 0:03:07.760 --> 0:03:10.480 House floor with what is assumed to be zero Democratic 0:03:10.560 --> 0:03:13.960 votes is another thing. Entirely with this structure, are you 0:03:14.040 --> 0:03:16.240 confident the requisite votes would be there. 0:03:17.680 --> 0:03:18.919 Here's what I'm confident of. 0:03:19.639 --> 0:03:22.880 When it goes to the floor, there'll be a total 0:03:22.880 --> 0:03:26.359 explanation of every cut every committee comes up with and 0:03:26.480 --> 0:03:27.480 where it's coming from. 0:03:28.120 --> 0:03:29.919 Is it going to be easy, No, it's not going 0:03:29.960 --> 0:03:30.200 to be. 0:03:30.280 --> 0:03:32.960 But every dollar in Congress that's spent has got an 0:03:33.040 --> 0:03:35.240 advocate for it, and they're coming out in full force 0:03:36.040 --> 0:03:39.160 as I speak to you right now, Kayley. But yeah, 0:03:39.200 --> 0:03:42.200 I'm confident, and I'm confident because of this it will 0:03:42.200 --> 0:03:45.680 make sense. Everybody agrees that we can't continue the path. 0:03:45.760 --> 0:03:49.320 But I tell you what's got to happen. President Trump, 0:03:49.440 --> 0:03:53.000 who's got a sixty five sixty nine percent approval rating, 0:03:53.120 --> 0:03:56.200 is going to have to get involved. Anybody that at 0:03:56.200 --> 0:03:57.680 the end of the day when he goes to the 0:03:57.680 --> 0:04:01.120 floor that doesn't agree with it or has issues, I 0:04:01.120 --> 0:04:03.840 think he will directly get involved, as he has, and 0:04:03.880 --> 0:04:06.400 he's done a brilliant job of doing that and explaining 0:04:06.440 --> 0:04:08.960 why the tax cuts. We've got to get this out 0:04:09.040 --> 0:04:10.920 because it's going to be a tax it's going to 0:04:10.960 --> 0:04:15.000 be a tax increase for over twenty eight to thirty. 0:04:14.760 --> 0:04:16.400 Five percent for all Americans. 0:04:16.640 --> 0:04:19.920 We can't let that happen. The prosperity that happened under 0:04:19.920 --> 0:04:22.400 his reign. We've got to continue and I think at 0:04:22.400 --> 0:04:24.839 the end of the day, I think we'll pass it. 0:04:24.920 --> 0:04:27.239 Well, we know, Congressman, that President Trump is not above 0:04:27.279 --> 0:04:29.760 picking up the phone when it's time to weigh in 0:04:29.800 --> 0:04:32.159 on things. As I'm sure we all recall from the 0:04:32.160 --> 0:04:35.440 most recent speakers vote. Are you hungry for the president 0:04:35.480 --> 0:04:36.279 to weigh in here? 0:04:37.480 --> 0:04:41.719 Absolutely, he's got away in because we can't afford to 0:04:41.720 --> 0:04:46.360 stumble on this. I mean, you know, it's interesting every politician, 0:04:46.560 --> 0:04:49.040 every four well five hundred and thirty five members of 0:04:49.080 --> 0:04:53.840 Congress campaign on conservatism, cutting the depths that we know 0:04:53.920 --> 0:04:56.960 it's not sustainable. Now when it actually comes down to it, 0:04:57.000 --> 0:04:59.600 that's where he comes into the picture and does it 0:04:59.640 --> 0:05:03.800 put Does it make sense to put work requirements on Medicaid? 0:05:04.240 --> 0:05:04.960 I think it does. 0:05:05.080 --> 0:05:08.600 Does it make sense to go down the line and 0:05:08.720 --> 0:05:11.520 let block grants, let states handle some of that funding. 0:05:11.600 --> 0:05:15.600 It's not a cut in medicaid as one example. But yeah, 0:05:15.680 --> 0:05:17.040 I mean, I think he's going to have to get 0:05:17.040 --> 0:05:20.240 involved and he will to pass what he considers this 0:05:20.320 --> 0:05:24.520 is a lynch pin for his whole four years in office. 0:05:24.680 --> 0:05:26.760 Is great to start it now look what he's done 0:05:26.800 --> 0:05:33.560 on the Doe's Commission, and so I'm anxious and I 0:05:33.600 --> 0:05:36.039 think he's going to pass and I'm optimistic. 0:05:37.760 --> 0:05:41.000 Well, and with this structure, you already mentioned potential cuts 0:05:41.040 --> 0:05:44.560 to medicate here. But essentially what this structure will mean 0:05:44.720 --> 0:05:47.440 is that if the cost of Trump's tax cuts go higher, 0:05:47.440 --> 0:05:49.640 if we're adding on things like no tax on tips 0:05:49.720 --> 0:05:52.960 or overtime or social Security, lifting the salt cap, perhaps 0:05:53.080 --> 0:05:55.880 more spending cuts have to come into place. So what 0:05:55.960 --> 0:05:58.159 else is going to have to go on the chopping 0:05:58.360 --> 0:06:02.000 block if Donald Trump the president is to get everything 0:06:02.080 --> 0:06:04.080 he wants here, Well, first of. 0:06:04.080 --> 0:06:06.000 All, it's not cut to medicaid. We're not doing that. 0:06:06.760 --> 0:06:10.200 Is it a reallocation yes. Is it getting people off 0:06:10.200 --> 0:06:15.000 the rows of a healthy Yes. And that's what he 0:06:15.080 --> 0:06:18.680 can sell to anybody who is feeling a lot of pressure, 0:06:18.720 --> 0:06:19.760 which I understand. 0:06:21.400 --> 0:06:23.599 But and you've got to consider the growth rate. 0:06:23.839 --> 0:06:26.200 I think we've got a two point five percent growth 0:06:27.120 --> 0:06:28.400 in the economy of GDP. 0:06:28.640 --> 0:06:31.000 I think that'll happen. That'll make some of the difference up. 0:06:31.240 --> 0:06:33.720 But it's not going to be easy, but it never is. 0:06:34.200 --> 0:06:39.400 But I think we'll get there. And the alternative of 0:06:39.480 --> 0:06:42.520 letting the tax cuts his fire and give Americans that 0:06:42.600 --> 0:06:45.920 kind of a tax increase is not a pretty picture. 0:06:45.640 --> 0:06:46.880 And we're not going to let that happen. 0:06:48.160 --> 0:06:51.479 I'm wondering where you are on the timeline here, Congressman, 0:06:51.520 --> 0:06:52.960 and just how much time there is to work all 0:06:53.000 --> 0:06:55.080 of this out. We've got a funding deadline twenty nine 0:06:55.160 --> 0:06:58.080 days out. Would you support a continuing resolution to keep 0:06:58.120 --> 0:07:01.440 the lights on if negotiations we're moving in the right direction. 0:07:03.400 --> 0:07:04.920 Yeah, I don't like crs. 0:07:05.040 --> 0:07:08.159 I think it needs to be a kind of a 0:07:08.200 --> 0:07:11.000 modified CR as example, the ones that get hit the 0:07:11.040 --> 0:07:14.240 most of the military. I think Pete Hexstath will weigh 0:07:14.280 --> 0:07:16.920 in on what he needs. I think Tom Holman will 0:07:16.960 --> 0:07:19.200 weigh in with what he needs. But yeah, I would 0:07:19.280 --> 0:07:22.760 vote for a CR, depending on what the final conditions 0:07:22.760 --> 0:07:24.840 are as part of it. But you've got to allow 0:07:24.920 --> 0:07:29.320 the continuation of what particularly the military is doing in 0:07:29.440 --> 0:07:32.800 every contract, every lease extension is affected by a CR 0:07:32.880 --> 0:07:35.400 in a negative way. We will have to do some 0:07:35.440 --> 0:07:38.320 carve outs and they will have to tell us what 0:07:38.400 --> 0:07:40.920 they need. We finally got people in office that they 0:07:40.960 --> 0:07:43.880 know it. Pete Hextath knows the military, he knows where 0:07:43.920 --> 0:07:46.520 the money ought to go. The same thing with Tom Holman. 0:07:46.640 --> 0:07:50.720 He's got this deportation down, but the agency is at 0:07:50.720 --> 0:07:53.840 the end of the day, the appropriations are going to 0:07:53.920 --> 0:07:56.240 have to come up with the money. And that's where 0:07:56.240 --> 0:07:58.800 Donald Trump comes in to make the case. And I 0:07:58.840 --> 0:08:01.880 think there's no one better they can do it, that 0:08:02.040 --> 0:08:04.280 can present the case than he can. 0:08:05.680 --> 0:08:05.760 Do. 0:08:05.920 --> 0:08:09.880 Democrats come in somewhere, Congressman on this when we're talking 0:08:09.920 --> 0:08:15.840 about just keeping the government funded beyond March specifically, they don't. 0:08:15.640 --> 0:08:19.240 Come into the solution. I mean, we're not gonna have 0:08:19.280 --> 0:08:20.400 to deal with them, hopefully. 0:08:20.480 --> 0:08:20.960 I mean. 0:08:22.400 --> 0:08:24.400 Some of the things that we've heard they're going to 0:08:24.480 --> 0:08:28.640 ask for, like the elimination of Elon Musk, like the 0:08:28.800 --> 0:08:32.520 end to deportation. It's ludicrous. People are excited about what 0:08:32.559 --> 0:08:35.120 Elon Musk is doing, and if you have to deal 0:08:35.160 --> 0:08:38.800 with them, they're so it's just two different universes with 0:08:38.840 --> 0:08:42.120 them today. And I mean, look at the demonstrations they've 0:08:42.160 --> 0:08:45.960 done on against what Elon Musk is doing. He's not 0:08:46.000 --> 0:08:49.200 getting paid, he's an investigator. He's supplying the numbers that 0:08:49.240 --> 0:08:50.920 we should have had years ago. 0:08:51.120 --> 0:08:53.920 So no, I don't think we'll have to deal with them. 0:08:53.920 --> 0:08:55.719 And I don't think we'll need their vote at the 0:08:55.800 --> 0:08:58.600 end of the day, they're not going to vote with us. 0:08:58.600 --> 0:09:01.079 When you watch watch the here in the budget committee, 0:09:01.080 --> 0:09:02.400 I don't think any of them going to vote for 0:09:02.440 --> 0:09:02.959 this budget. 0:09:03.000 --> 0:09:04.720 And we've got a good budget and I think we'll 0:09:04.720 --> 0:09:05.079 pass it. 0:09:06.200 --> 0:09:10.440 Realizing you support the spirit of Elon Musk's mission here, Congressman, 0:09:10.520 --> 0:09:13.720 as a lawmaker in the House of Representatives, do you 0:09:13.760 --> 0:09:16.720 worry when we talk about xing out entire agencies without 0:09:16.720 --> 0:09:17.800 the approval of Congress? 0:09:20.000 --> 0:09:24.520 Absolutely not let the money flow, which has never been discovered. 0:09:24.800 --> 0:09:29.280 People are asking, maybe why didn't Congress discover these abuses 0:09:29.360 --> 0:09:32.160 of where our money goes? The reason is we couldn't 0:09:32.160 --> 0:09:34.680 get to it. He's the only one that had the 0:09:34.720 --> 0:09:37.760 brain power and the bandwidth to get to where to 0:09:37.800 --> 0:09:40.000 follow the checks to where they actually ended up. 0:09:41.080 --> 0:09:43.359 The money is one thing, though, but the actual existence 0:09:43.360 --> 0:09:46.440 of the agency just just if they blow them out. 0:09:46.640 --> 0:09:48.360 You don't think Congress should have a say in that. 0:09:50.040 --> 0:09:52.520 I think when yeah, at the end of the day, 0:09:52.600 --> 0:09:55.559 we'll have to vote on it. But through his executive 0:09:55.600 --> 0:09:59.040 powers and through the Constitution, he can cut the funding off, 0:09:59.080 --> 0:10:01.440 which he's doing. And you know, if let's say an 0:10:01.440 --> 0:10:06.480 agency that has some good parts in it. President Trump 0:10:07.080 --> 0:10:12.080 will recognize those that need to be continued. But the 0:10:12.320 --> 0:10:15.160 money is where it all ends up showing whether an 0:10:15.400 --> 0:10:17.240 agency should continue. 0:10:17.480 --> 0:10:18.680 It shouldn't go overseas. 0:10:18.800 --> 0:10:21.640 It shouldn't go for Sesame Street books for the June 0:10:21.640 --> 0:10:24.319 to twenty million, It shouldn't go on to sixteen million 0:10:24.600 --> 0:10:27.360 to Vietnam for inclusion. 0:10:28.040 --> 0:10:28.839 Things like that. 0:10:29.880 --> 0:10:31.600 We the people are going to weigh in on, and 0:10:31.679 --> 0:10:34.920 they already have. But some agencies will need to be modified. 0:10:35.280 --> 0:10:38.960 Some agencies will need to be scaled down. Department of 0:10:39.040 --> 0:10:42.520 Education is one of them. Social Security is another one. 0:10:42.679 --> 0:10:45.320 When you find out from what I'm hearing, people are 0:10:45.360 --> 0:10:48.640 getting four and five checks. He's investigating all that and 0:10:48.760 --> 0:10:51.880 let the American people decide. It's not their money, it's 0:10:51.960 --> 0:10:54.760 the facts payer's money. 0:10:55.000 --> 0:10:55.400 All right. 0:10:55.640 --> 0:10:58.120 Congressman, thanks very much for joining us live today from 0:10:58.160 --> 0:11:02.199 Capitol Hill. That's Republican Congressman Norman of South Carolina, of course, 0:11:02.240 --> 0:11:04.760 member of the House Budget Committee. As that markup is 0:11:04.840 --> 0:11:05.800 still underway. 0:11:08.080 --> 0:11:11.560 You're listening to the Bloomberg Balance of Power podcast. Catch 0:11:11.640 --> 0:11:15.079 us Live weekdays at noon and five pm Eastern on Apple, 0:11:15.120 --> 0:11:18.160 Cocklay and Android Auto with the Bloomberg Business app. You 0:11:18.200 --> 0:11:21.679 can also listen live on Amazon Alexa from our flagship 0:11:21.720 --> 0:11:26.280 New York station, Just say Alexa play Bloomberg eleven thirty. 0:11:27.160 --> 0:11:28.840 It's great to have you with us on the Thursday 0:11:28.960 --> 0:11:32.040 edition here on Bloomberg Radio, on the satellite radio, and 0:11:32.080 --> 0:11:33.719 on YouTube, where you can find us right now by 0:11:33.720 --> 0:11:36.839 searching Bloomberg Business News Live. We're standing by to hear 0:11:37.040 --> 0:11:40.800 news at least we're told on reciprocal tariffs today from 0:11:40.800 --> 0:11:42.120 the White House. A little more than a half an 0:11:42.160 --> 0:11:44.240 hour from now, President Trump will be back in the Oval. 0:11:44.640 --> 0:11:46.360 This is like a daily thing, right. I mean, I 0:11:46.360 --> 0:11:47.880 don't even need to tell you. They're going to bring 0:11:47.880 --> 0:11:49.520 the press pool in the Oval office and he's going 0:11:49.600 --> 0:11:52.080 to start talking when he feels like it. That'll be 0:11:52.200 --> 0:11:54.920 sometime in the next hour. There's an executive action that's 0:11:54.920 --> 0:11:57.600 supposed to be on the table that will involve reciprocal tariffs. 0:11:57.720 --> 0:12:01.319 The President talking about it earlier, promising the big one, right, 0:12:01.360 --> 0:12:04.600 he said, this is the big day. We'll see what 0:12:04.640 --> 0:12:06.760 that involves. There's the tweet for you if you're with us, 0:12:06.880 --> 0:12:09.000 or the truth right if you're with us on YouTube. 0:12:09.640 --> 0:12:12.199 Three great weeks perhaps the best ever, but today is 0:12:12.240 --> 0:12:14.640 the big one. He writes reciprocal tariffs. We'll find out. 0:12:14.640 --> 0:12:16.520 We don't know. We've heard a lot of tariff threats. 0:12:17.040 --> 0:12:19.840 Of course, he's already threatened twenty five percent tariffs against Canada, 0:12:19.840 --> 0:12:23.520 and Mexico backed away from the line. There were some concessions. 0:12:23.520 --> 0:12:26.440 As we discussed. You're involving troops on the border. He's 0:12:26.440 --> 0:12:29.720 promised additional tariffs to go into effects soon on steel 0:12:29.760 --> 0:12:33.240 and aluminum. And here's the news. Our trading partners are 0:12:33.240 --> 0:12:36.599 not waiting around to find out. Enter the Premiere of Saskatchewan. 0:12:37.160 --> 0:12:38.600 I told you he was coming to talk to us 0:12:38.600 --> 0:12:40.960 here in person. Scott Mowe is one of thirteen premiers 0:12:41.000 --> 0:12:45.200 down from our neighbor from the North to make the 0:12:45.240 --> 0:12:49.199 case for ongoing trade partnerships here in North America. It's 0:12:49.200 --> 0:12:50.640 great to have you with us at the table. Thank 0:12:50.679 --> 0:12:53.280 you for making part of us, part of your day 0:12:53.280 --> 0:12:54.040 here in Washington. 0:12:54.200 --> 0:12:55.000 Thank you for making time. 0:12:55.160 --> 0:12:57.520 You're meeting with a lot of stakeholders. You had spoken 0:12:57.559 --> 0:13:00.679 before you left Canada about meeting with law Mamansker, senators, 0:13:00.679 --> 0:13:04.560 maybe governors, but also and maybe most importantly, cabinet officials, 0:13:04.559 --> 0:13:06.920 members of the administration was the White House accommodating. 0:13:07.280 --> 0:13:11.640 Yeah, no, certainly, And again from Saskatchewan's perspective, these relationships 0:13:11.640 --> 0:13:15.720 with policymakers, whether they be in Congress, in the Senate 0:13:16.080 --> 0:13:19.680 or part of the administration. We've made it a priority 0:13:19.679 --> 0:13:22.080 for the last decade and a half to be in 0:13:22.160 --> 0:13:24.160 DC a number of times throughout the year and to 0:13:24.520 --> 0:13:27.079 foster these relations because they're important to us, and I 0:13:27.080 --> 0:13:29.040 think they're important really to what our goal is is 0:13:29.080 --> 0:13:32.400 for Saskatchewan to be part of creating that continental energy, 0:13:32.400 --> 0:13:34.280 food and manufacturing security system. 0:13:34.800 --> 0:13:36.760 I want the whole elevator pitch. I want to hear 0:13:36.760 --> 0:13:39.640 what you're telling people in these meetings. But first, what 0:13:39.679 --> 0:13:42.680 does the administration want from you? You put ten thousand 0:13:42.720 --> 0:13:44.880 troops on the border, You've made an agreement to crack 0:13:44.920 --> 0:13:47.920 down on fentanel illegal border crossings. What else would remove 0:13:47.960 --> 0:13:49.280 this threat from hanging over your head? 0:13:49.360 --> 0:13:52.120 Well, I think when it comes to priorities that have 0:13:52.160 --> 0:13:54.320 been raised by the President, when it whether it be 0:13:54.320 --> 0:13:57.440 fentanyl or securing our border, whether it be our forty 0:13:57.520 --> 0:14:00.640 ninth parallel or mutually our North American ports, we need 0:14:00.679 --> 0:14:02.800 to always be looking to do better. And when it 0:14:02.840 --> 0:14:04.640 comes to fentanyl. That's not a drug at all. It's 0:14:04.640 --> 0:14:07.600 a poison. It's killing people north end south of the 0:14:07.600 --> 0:14:09.560 forty ninth parallel, and we need to do our level 0:14:09.600 --> 0:14:12.560 best to eradicate it from our communities and eradicate it 0:14:12.600 --> 0:14:15.760 from the hands and pockets of friends and all too 0:14:15.800 --> 0:14:19.080 often family members. And so we're committing to do that 0:14:19.120 --> 0:14:22.960 in Saskatchewan and pushing our federal government and our the 0:14:23.000 --> 0:14:25.920 provincial efforts. Were part of the ten thousand folks on 0:14:25.960 --> 0:14:27.920 the board of the security officials on the border, and 0:14:27.920 --> 0:14:31.120 so we're working together, not just because it's a priority 0:14:31.160 --> 0:14:32.920 the president, but it's a priority of all of us 0:14:32.920 --> 0:14:33.800 that live in North America. 0:14:33.880 --> 0:14:35.600 I get that, and I also feel like it wouldn't 0:14:35.640 --> 0:14:36.880 be that hard of a job for you. What I 0:14:37.000 --> 0:14:40.400 understand was forty something pounds of fentanyl across the northern 0:14:40.400 --> 0:14:44.880 border last year versus twenty one thousand through our southern border. 0:14:45.200 --> 0:14:46.120 You can get your arms. 0:14:45.960 --> 0:14:47.880 Around that can Yeah, well, all of those pounds are 0:14:47.880 --> 0:14:50.080 problem or a problem. And so what I would say 0:14:50.280 --> 0:14:53.000 is when you look at the you know, the fentanyl 0:14:53.040 --> 0:14:56.120 deaths in Saskatchewan communities or Canadian communities, it's very similar 0:14:56.200 --> 0:14:58.120 per capita to what we're seeing in the US, and 0:14:58.200 --> 0:15:01.200 so we need to work together to get that drug 0:15:01.280 --> 0:15:04.480 out of the hands of anyone that lives in North America. 0:15:04.920 --> 0:15:09.520 Your biggest trading partner as a province is the United States. 0:15:10.280 --> 0:15:13.240 The most important thing you sell the US is crude oil. 0:15:14.240 --> 0:15:16.880 If these tariffs take effect, if we get into some 0:15:16.960 --> 0:15:18.960 kind of a trade work, can you replace that business? 0:15:19.000 --> 0:15:20.400 Can you sell that oil to someone else? 0:15:20.720 --> 0:15:22.880 The crude oil is a little more difficult. We sell 0:15:22.920 --> 0:15:27.160 crude oil, potash, uranium, agri food products, and our goal 0:15:27.200 --> 0:15:29.800 is always to create that continental energy and food security. 0:15:29.840 --> 0:15:33.680 From our province's perspective, it will those products will start 0:15:33.720 --> 0:15:36.360 to float to other places around the world. But at 0:15:36.360 --> 0:15:38.360 the end of the day, not only is the United 0:15:38.360 --> 0:15:41.520 States of America our largest trading partner North and South. 0:15:42.200 --> 0:15:45.200 There are most trusted and important ally as Canadians and 0:15:45.240 --> 0:15:48.000 as fellow North Americans, and so our goal isn't to 0:15:48.000 --> 0:15:50.960 sell those products somewhere else. Our goal is to continue 0:15:50.960 --> 0:15:54.560 with the relationship with the United States because quite honestly, 0:15:54.920 --> 0:15:59.000 that oil is coming to US refineries and it's creating 0:15:59.080 --> 0:16:03.880 jobs in places like Ohio, Iowa, Illinois, down into Louisiana 0:16:03.880 --> 0:16:07.760 and Texas. So the trade relationship is strong. We understand 0:16:07.840 --> 0:16:10.760 there's some some discussion about you know what that's going 0:16:10.800 --> 0:16:12.600 to look like moving forward, and that's why we're here. 0:16:12.680 --> 0:16:15.560 You can mention potash. Yeah, you put out a tweet 0:16:15.720 --> 0:16:18.400 that got our attention here with a nice shot of 0:16:18.440 --> 0:16:20.200 a big mac on it. You must have gotten Donald 0:16:20.240 --> 0:16:22.480 Trump's attention with this. From growing wheat, you say, for 0:16:22.560 --> 0:16:25.920 the bun to corn, for the cattle. It turns out 0:16:25.960 --> 0:16:28.440 the secret ingreding into the big mac is potash. A 0:16:28.520 --> 0:16:32.840 tariff on Canadian potash is attacks on American's food. Is 0:16:32.840 --> 0:16:34.960 that part of your argument when you sit down in 0:16:35.040 --> 0:16:35.560 these meetings? 0:16:35.680 --> 0:16:36.280 What's a fact? 0:16:36.880 --> 0:16:38.480 You know how much he likes a big mac. You're 0:16:38.520 --> 0:16:39.960 not going to raise the price on this, are you. 0:16:40.000 --> 0:16:41.840 I think there's about nine Well we're not going to. 0:16:42.640 --> 0:16:44.600 But there's about nine million tons of potash that come 0:16:44.640 --> 0:16:47.280 down into the corn belt in the US. Ninety that 0:16:47.280 --> 0:16:50.120 comes from Saskatchewan. Thirty five percent of the world's potash 0:16:50.200 --> 0:16:54.280 comes from Saskatchewan. There really is no other market for 0:16:54.320 --> 0:16:57.960 that product unless you want to start purchasing from Russia. 0:16:58.200 --> 0:17:01.040 So you know, here in lies the importance of the 0:17:01.080 --> 0:17:04.159 trading relationship we have we understand, you know that the 0:17:04.920 --> 0:17:08.959 President has is making some efforts to reset trade relationships, 0:17:09.000 --> 0:17:11.000 and it starts with Canada and Mexico, but likely going 0:17:11.040 --> 0:17:11.680 to extend beyond. 0:17:11.800 --> 0:17:13.560 So what do you get in the other direction when 0:17:13.560 --> 0:17:15.160 you sit down on these meetings? Do you feel good? 0:17:15.160 --> 0:17:17.400 Were you were you guys high fiving leaving the White House? 0:17:17.720 --> 0:17:21.480 I don't know for high fiving, but certainly encouraged. And again, 0:17:21.520 --> 0:17:23.679 this is building on relationships that are not new for 0:17:23.760 --> 0:17:26.640 us from Saskatchewan. We've been down here for fifteen years. 0:17:26.680 --> 0:17:28.399 It's roll of deecks. You're calling the same people you 0:17:28.440 --> 0:17:29.840 were meeting a couple of months ago. 0:17:29.760 --> 0:17:32.960 And more and more, and we've you know, we've we've 0:17:32.960 --> 0:17:35.359 engaged throughout that decade and a half and so you know, 0:17:35.480 --> 0:17:37.960 we feel positive on the relationship. Yeah, there's there's going 0:17:38.000 --> 0:17:40.240 to be some you know, some words and some rhetoric 0:17:40.320 --> 0:17:42.720 back and forth in the meantime, but at the end 0:17:42.760 --> 0:17:44.280 of the day, we have a goal on this to 0:17:44.320 --> 0:17:46.480 get back to that strong trading relationship and we feel 0:17:46.480 --> 0:17:46.919 we can get there. 0:17:47.000 --> 0:17:48.960 The words and the rhetoric of been something the fifty 0:17:49.040 --> 0:17:55.080 first states. Governor Trudeau, where where are we in our relationship? Culturally, 0:17:55.480 --> 0:17:58.160 teach me something about this. You hear the jokes right 0:17:58.240 --> 0:18:02.679 the apartment upstairs above the part America's hat. What do 0:18:02.760 --> 0:18:07.000 Americans need to understand about our most important trade partner. 0:18:07.119 --> 0:18:09.240 Well, I'd say a couple of things. First is Canada 0:18:09.240 --> 0:18:11.560 isn't going to be the fifty first state. That's some 0:18:11.680 --> 0:18:14.000 of the rhetoric that we hear back and forth. That 0:18:14.080 --> 0:18:17.720 being said, Canada and the US are what I think 0:18:17.800 --> 0:18:21.359 has had and will continue to have post this discussion, 0:18:21.720 --> 0:18:25.320 the strongest economic trading relationship in the world, one that 0:18:25.400 --> 0:18:28.880 keeps our continents secure. From time to time, you know, 0:18:29.440 --> 0:18:32.360 the President is raising some topics, whether it be fentanyl, 0:18:32.400 --> 0:18:35.600 whether it be our military commitments, where Canadians have to 0:18:35.640 --> 0:18:37.280 have a look in the mirror and make sure that 0:18:37.320 --> 0:18:39.760 we're doing what we say we were going to do 0:18:40.240 --> 0:18:43.080 and make sure that we certainly are contributing as a 0:18:43.080 --> 0:18:46.440 full partner into that relationship. And so we're doing that, 0:18:46.800 --> 0:18:48.600 as you see, with ten thousand troops on the border, 0:18:48.600 --> 0:18:50.360 We're going to secure that border. We're going to make 0:18:50.400 --> 0:18:53.800 every effort to eradicate fentanyl out of our province. So 0:18:54.160 --> 0:18:56.920 the discussion will go on, but I think our goals 0:18:56.920 --> 0:18:57.360 are the same. 0:18:57.560 --> 0:18:59.280 It's not only a question about what happens at the 0:18:59.359 --> 0:19:02.439 end of this thirty A review however, that is going 0:19:02.520 --> 0:19:05.880 to be rolled out right, but also a full renegotiation, 0:19:06.000 --> 0:19:09.360 it seems of the us mc A. Are these negotiations, 0:19:09.359 --> 0:19:10.920 these talks happening in tandem. 0:19:11.520 --> 0:19:13.920 I wouldn't say they're happening in tandem. You know, we 0:19:14.240 --> 0:19:18.200 have to you know, make decisions and have discussions as 0:19:18.480 --> 0:19:22.560 as they come. Today there's no Secretary of Commerce for 0:19:22.680 --> 0:19:24.760 Canada taxs and negotiate with US, so we have some 0:19:24.800 --> 0:19:27.879