1 00:00:02,520 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,280 --> 00:00:09,360 Speaker 2: So here's the nightstest. This morning, the President of the 3 00:00:09,440 --> 00:00:12,200 Speaker 2: United States, Donald Trump canceling European tariffs that were sent 4 00:00:12,240 --> 00:00:15,920 Speaker 2: to begin February first. After reaching a framework deal over Greenland. 5 00:00:16,120 --> 00:00:19,319 Speaker 2: The US COMMAS Secretary Howard Latnik joined us. Now making 6 00:00:19,440 --> 00:00:21,599 Speaker 2: some waves of the World Economic Forum over the last 7 00:00:21,600 --> 00:00:23,319 Speaker 2: couple of days. Mister secretary is going to see you. 8 00:00:23,440 --> 00:00:24,040 Speaker 3: Great to see you. 9 00:00:24,160 --> 00:00:26,000 Speaker 2: Let's cut through the drama. Let's get to the big 10 00:00:26,040 --> 00:00:28,280 Speaker 2: point in the elephant in the room. What happened at 11 00:00:28,320 --> 00:00:30,800 Speaker 2: dinner time the other night. I've heard all kinds of 12 00:00:30,840 --> 00:00:34,320 Speaker 2: stories booming, Legarde storming at the room. What happens? 13 00:00:34,440 --> 00:00:35,479 Speaker 3: Oh, this is so silly. 14 00:00:35,520 --> 00:00:37,800 Speaker 4: So at the end of the evening they called on me. 15 00:00:37,880 --> 00:00:41,160 Speaker 4: I just published an op ed in the Financial Times, 16 00:00:41,680 --> 00:00:44,960 Speaker 4: and so they called on me. I gave two three 17 00:00:45,040 --> 00:00:51,080 Speaker 4: minutes of my ft, which basically said that globalization right 18 00:00:51,120 --> 00:00:54,520 Speaker 4: and the outsourcing of your industry to the lowest cost 19 00:00:54,600 --> 00:00:58,040 Speaker 4: in the world right, had really left, had really harmed 20 00:00:58,080 --> 00:01:01,280 Speaker 4: American and had harmed Europe, and it had failed, and 21 00:01:01,400 --> 00:01:03,760 Speaker 4: it failed us, and that we need to reshure, need 22 00:01:03,800 --> 00:01:05,399 Speaker 4: to take care of our own citizens. 23 00:01:05,560 --> 00:01:06,959 Speaker 3: So that's basically the model. 24 00:01:07,200 --> 00:01:10,000 Speaker 4: And when I was done with that two or three minutes, 25 00:01:10,800 --> 00:01:13,600 Speaker 4: one person of the two hundred odd people in the 26 00:01:13,680 --> 00:01:17,200 Speaker 4: room booed, and I felt honored because it was Al 27 00:01:17,280 --> 00:01:21,280 Speaker 4: Gore on alcore Bood, and I was like, really, so. 28 00:01:23,000 --> 00:01:25,000 Speaker 2: I wasn't throwing bread rolls a year from the bank. 29 00:01:25,040 --> 00:01:26,840 Speaker 2: That wasn't happening nout it. 30 00:01:26,920 --> 00:01:28,960 Speaker 4: I put it in the ft. I mean, I wasn't 31 00:01:28,959 --> 00:01:30,840 Speaker 4: like trying to be quiet about it. I mean I 32 00:01:30,959 --> 00:01:36,039 Speaker 4: think that globalization, right, and the idea of global supply 33 00:01:36,240 --> 00:01:39,120 Speaker 4: chains and finding the lowest cost, I mean, that is 34 00:01:39,280 --> 00:01:43,320 Speaker 4: just not the way to take care of your auto workers, right, 35 00:01:43,440 --> 00:01:46,520 Speaker 4: who are in Ohio and Michigan. And so we're bringing 36 00:01:46,520 --> 00:01:49,240 Speaker 4: that back. So think about this. When we were done 37 00:01:49,280 --> 00:01:51,440 Speaker 4: with we started auto tariffs. We started working on it 38 00:01:51,480 --> 00:01:54,280 Speaker 4: in March and we finished in November, and we were 39 00:01:54,320 --> 00:01:57,440 Speaker 4: done the last day. When we finished, General motives in 40 00:01:57,520 --> 00:02:00,960 Speaker 4: Ford stocks each went up ten percent. General Motives end 41 00:02:00,960 --> 00:02:03,040 Speaker 4: of the year of sixty percent. If I told you 42 00:02:03,240 --> 00:02:05,840 Speaker 4: on January first that General Motives was going to be 43 00:02:05,840 --> 00:02:07,880 Speaker 4: on sixty percent, you would all say, oh, stop it, 44 00:02:08,000 --> 00:02:11,040 Speaker 4: and how about this. On that same day, Sean Fame, 45 00:02:11,440 --> 00:02:13,960 Speaker 4: who runs the United Auto Workers called me and said, 46 00:02:14,000 --> 00:02:17,840 Speaker 4: I can't believe I'm calling a Republican Secretary of Commerce 47 00:02:17,880 --> 00:02:21,360 Speaker 4: to say thank God for you and your administration. The 48 00:02:21,360 --> 00:02:24,720 Speaker 4: first administration is actually taking care of the auto. 49 00:02:24,520 --> 00:02:26,400 Speaker 3: Workers of America. So think about that. 50 00:02:26,440 --> 00:02:29,720 Speaker 4: You can, if you really think it through, you can 51 00:02:29,760 --> 00:02:32,920 Speaker 4: take care of the company and the worker. You don't 52 00:02:32,960 --> 00:02:37,280 Speaker 4: have to pick sides because we want union labor growth 53 00:02:37,320 --> 00:02:37,800 Speaker 4: in America. 54 00:02:37,880 --> 00:02:40,919 Speaker 3: These are great jobs. Why wouldn't we want them in America. 55 00:02:41,000 --> 00:02:44,760 Speaker 4: So that's why Donald Trump wins the union vote, because 56 00:02:44,760 --> 00:02:50,040 Speaker 4: he's actually pro these workers. He literally is pro these workers. 57 00:02:50,120 --> 00:02:52,760 Speaker 4: It's not a political thing. It's these are great jobs 58 00:02:52,760 --> 00:02:54,600 Speaker 4: for Americans. Let's go get more of them. 59 00:02:54,680 --> 00:02:56,000 Speaker 2: There's a lot of money set to come into the 60 00:02:56,040 --> 00:02:58,400 Speaker 2: United States and big bets, a ton of FDM. We 61 00:02:58,440 --> 00:02:59,720 Speaker 2: could get into that in just a moment. I just 62 00:02:59,720 --> 00:03:02,800 Speaker 2: want to stay on G seven, allies, this week's been 63 00:03:02,880 --> 00:03:05,680 Speaker 2: quite a week. Emmanuel Macron, the French president, has said 64 00:03:06,040 --> 00:03:09,079 Speaker 2: basically accused of the US of trying to subordinate the Europeans. 65 00:03:09,480 --> 00:03:11,680 Speaker 2: The Prime Minister of Canada, I'm sure you heard his speech, 66 00:03:11,720 --> 00:03:13,920 Speaker 2: Mark Conney the other day, said this is not a 67 00:03:13,960 --> 00:03:17,600 Speaker 2: transition it's a rupture. How would you describe relations with 68 00:03:17,600 --> 00:03:18,680 Speaker 2: those countries at the moment. 69 00:03:19,240 --> 00:03:22,320 Speaker 3: I think our relations are perfectly fine. Right. 70 00:03:22,480 --> 00:03:26,840 Speaker 4: I described the relationship with respect to the whole when 71 00:03:27,400 --> 00:03:29,960 Speaker 4: Greenland was going back and forth before we sort of 72 00:03:29,960 --> 00:03:31,679 Speaker 4: settled it with a framework agreement. 73 00:03:32,040 --> 00:03:34,400 Speaker 3: Right, I called it a kerf fluffle. Right. 74 00:03:34,440 --> 00:03:37,200 Speaker 4: It's basically like if you have an argument with your 75 00:03:37,240 --> 00:03:39,120 Speaker 4: spouse that's not real. 76 00:03:39,360 --> 00:03:40,840 Speaker 3: You know, it's not a real one. It's like a 77 00:03:40,880 --> 00:03:41,440 Speaker 3: small thing. 78 00:03:41,480 --> 00:03:43,320 Speaker 2: My spouse doesn't go out there and deliver a speech 79 00:03:43,320 --> 00:03:45,800 Speaker 2: after that argument. It's the end of the relationship. 80 00:03:45,840 --> 00:03:48,760 Speaker 4: Fair enough, But you're right, and I think they overreacted. 81 00:03:49,000 --> 00:03:51,240 Speaker 4: And it's proof that they overreacted because a day or 82 00:03:51,240 --> 00:03:53,200 Speaker 4: two later, there's a framework that makes sense. 83 00:03:53,480 --> 00:03:53,640 Speaker 3: Right. 84 00:03:53,840 --> 00:03:55,720 Speaker 4: What did we say? We said we cared about it 85 00:03:55,760 --> 00:03:58,400 Speaker 4: for national security. Right, we said we care about a 86 00:03:58,480 --> 00:04:01,000 Speaker 4: national security. I mean, it's obvious we care about it 87 00:04:01,000 --> 00:04:02,840 Speaker 4: for national security. Because if you're going to build a 88 00:04:02,880 --> 00:04:06,960 Speaker 4: golden dome over the United States of America, right, wouldn't 89 00:04:07,000 --> 00:04:10,480 Speaker 4: you prefer the golden dome cover Greenland? So when you're 90 00:04:10,520 --> 00:04:12,920 Speaker 4: knocking out the missiles, you're not knocking them out right 91 00:04:12,960 --> 00:04:15,080 Speaker 4: over your head like we've all seen Israel like knocking 92 00:04:15,120 --> 00:04:17,560 Speaker 4: out the missiles right over their head with their iron dome. 93 00:04:17,760 --> 00:04:20,120 Speaker 4: Wouldn't you prefer to knock out the missiles if you 94 00:04:20,160 --> 00:04:21,920 Speaker 4: live on the East coast of the United States of 95 00:04:21,960 --> 00:04:24,640 Speaker 4: America over Greenland, a couple of thousand miles away where 96 00:04:24,640 --> 00:04:27,240 Speaker 4: there's no people, right, does not sound better. So this 97 00:04:27,400 --> 00:04:30,400 Speaker 4: is sort of where we're thinking about it and how 98 00:04:30,880 --> 00:04:33,360 Speaker 4: our national security team is thinking about it. Let's actually 99 00:04:33,400 --> 00:04:36,880 Speaker 4: the framework, Well, the framework is a national security based 100 00:04:36,880 --> 00:04:39,240 Speaker 4: framework that that's what the United States cares about. We 101 00:04:39,279 --> 00:04:42,599 Speaker 4: care about our national security, and we care about the 102 00:04:42,600 --> 00:04:45,520 Speaker 4: shipping lanes. So let's talk about the national security and 103 00:04:45,560 --> 00:04:47,880 Speaker 4: shipping lanes and let's see if we can't figure out 104 00:04:47,920 --> 00:04:50,279 Speaker 4: a framework to do that together. And I think that's 105 00:04:50,279 --> 00:04:52,400 Speaker 4: what the President truthed about. He said, we're going to 106 00:04:52,480 --> 00:04:54,839 Speaker 4: try to figure that out together because those were the 107 00:04:54,880 --> 00:04:58,320 Speaker 4: key points that the States of America cared about. And 108 00:04:58,560 --> 00:05:00,960 Speaker 4: I think the President's been clear about and he just 109 00:05:01,040 --> 00:05:04,520 Speaker 4: wants people at the table dealing with it swiftly. I 110 00:05:04,560 --> 00:05:07,120 Speaker 4: mean to think about this, he sends out a truth 111 00:05:08,080 --> 00:05:11,279 Speaker 4: and like within four days, right, we have a framework 112 00:05:11,320 --> 00:05:13,760 Speaker 4: agreement Like that's by the way, it's a pretty effecise. 113 00:05:13,800 --> 00:05:16,240 Speaker 3: We had TIFFs, we had tariffs on tariff's off. 114 00:05:16,320 --> 00:05:18,200 Speaker 1: They were never as to do, they were never on 115 00:05:18,400 --> 00:05:20,360 Speaker 1: the threat of them, were coming on for February first. 116 00:05:20,400 --> 00:05:22,760 Speaker 1: What does this do now for the agreement you were 117 00:05:22,760 --> 00:05:25,560 Speaker 1: and your team struck with Brussels because the legal implementation 118 00:05:25,640 --> 00:05:26,800 Speaker 1: has now been put on hold. 119 00:05:27,080 --> 00:05:30,640 Speaker 4: Oh, I think it'll be put on unhold probably tomorrow. 120 00:05:30,760 --> 00:05:33,520 Speaker 4: I mean, come on, That's why I said it's an overreaction. 121 00:05:33,960 --> 00:05:37,520 Speaker 4: I mean, they know when the President says, this is 122 00:05:37,560 --> 00:05:39,560 Speaker 4: what's going to happen. I mean what provoked the president. 123 00:05:39,600 --> 00:05:43,080 Speaker 4: What provoked the President was that they sent military people 124 00:05:43,080 --> 00:05:47,080 Speaker 4: to Greenland. I mean, they didn't send military people to Ukraine. Like, 125 00:05:47,120 --> 00:05:50,080 Speaker 4: why aren't they sending military people to Greenland? 126 00:05:50,520 --> 00:05:52,760 Speaker 3: You know, it was so it seemed like a provocation. 127 00:05:52,880 --> 00:05:54,919 Speaker 2: We spoke to the Finish leader and he suggested that 128 00:05:55,080 --> 00:05:58,160 Speaker 2: was a miscommunication, and he cleared that up pretty quickly. 129 00:05:58,240 --> 00:05:59,599 Speaker 2: There's something I want to get into with you that 130 00:05:59,600 --> 00:06:01,480 Speaker 2: I think is quite important. This, of course, is the 131 00:06:01,600 --> 00:06:02,800 Speaker 2: art of the deal. We talk about it on the 132 00:06:02,800 --> 00:06:05,120 Speaker 2: program all the time. The President anchors the story to 133 00:06:05,160 --> 00:06:07,200 Speaker 2: the extreme and then gets a favorable deal for the 134 00:06:07,279 --> 00:06:10,160 Speaker 2: United States. I think that's whe I understood. Something happened 135 00:06:10,160 --> 00:06:12,279 Speaker 2: though in the last twelve months that I think is 136 00:06:12,320 --> 00:06:15,480 Speaker 2: really interesting. He tried the same thing with Canada and 137 00:06:15,600 --> 00:06:18,880 Speaker 2: totally upended the election in Canada. North of the border. 138 00:06:18,920 --> 00:06:21,280 Speaker 2: POLYEF was going to sail away with that. The reason 139 00:06:21,320 --> 00:06:24,200 Speaker 2: Mark Carney's here as Prime Minister is because the President 140 00:06:24,240 --> 00:06:27,640 Speaker 2: took such an assertive stance on Canada. Now at the time, 141 00:06:27,680 --> 00:06:29,599 Speaker 2: I was finding the humor in the conversation. Then the 142 00:06:29,600 --> 00:06:32,640 Speaker 2: Canadian started lighting up the Bloomberg terminal sending messages. They 143 00:06:32,680 --> 00:06:35,800 Speaker 2: were deeply offended and we've seen that damage the economic 144 00:06:35,839 --> 00:06:39,040 Speaker 2: relationship with Canada and the United States. And the risk 145 00:06:39,080 --> 00:06:40,839 Speaker 2: came mists the Secretary, and I'd love your thoughts on 146 00:06:40,839 --> 00:06:42,240 Speaker 2: it and your reaction, because I think this is really 147 00:06:42,240 --> 00:06:45,239 Speaker 2: important regard to the Europeans. The points you're making about 148 00:06:45,279 --> 00:06:47,960 Speaker 2: Europe and have made over the last week are valid 149 00:06:48,000 --> 00:06:51,080 Speaker 2: points and they're actually well received by a lot of Europeans, 150 00:06:51,360 --> 00:06:53,159 Speaker 2: but the style in which is being delivered at the 151 00:06:53,160 --> 00:06:55,719 Speaker 2: moment some of them are finally get offensive. D you 152 00:06:55,760 --> 00:06:58,120 Speaker 2: think it's a risk here that we damage the economic 153 00:06:58,200 --> 00:07:00,320 Speaker 2: relationship with the Europeans in the same way we do 154 00:07:00,360 --> 00:07:03,720 Speaker 2: with the Canadians, and for that matter, derail the conservative 155 00:07:03,760 --> 00:07:05,400 Speaker 2: movement in Europe as well. 156 00:07:05,480 --> 00:07:07,080 Speaker 3: Underway, I don't. 157 00:07:07,200 --> 00:07:11,080 Speaker 4: I think the fact is that you need to rethink. 158 00:07:11,120 --> 00:07:14,640 Speaker 4: I think Europe is amazing and it's got extraordinary opportunity 159 00:07:14,640 --> 00:07:17,800 Speaker 4: and a twenty trillion dollar economy. But think about this, 160 00:07:18,320 --> 00:07:21,760 Speaker 4: if they had the right digital rules, meaning similar digital 161 00:07:21,840 --> 00:07:25,440 Speaker 4: rules to the United States. We have six trillion dollars 162 00:07:25,640 --> 00:07:28,680 Speaker 4: with the committed investment to build data centers in America, 163 00:07:28,760 --> 00:07:29,280 Speaker 4: and we have a. 164 00:07:29,200 --> 00:07:30,600 Speaker 3: Thirty trillion dollar economy. 165 00:07:30,640 --> 00:07:33,480 Speaker 4: So if they had a twenty trillion dollar economy, you'd say, okay, 166 00:07:34,000 --> 00:07:35,400 Speaker 4: if they had the same rules, they could. 167 00:07:35,200 --> 00:07:37,880 Speaker 3: Get four trillion, or how about two trillion. 168 00:07:38,080 --> 00:07:42,040 Speaker 4: You realized two trillion for their economy, right, would be 169 00:07:42,080 --> 00:07:44,360 Speaker 4: ten points a GDP S right over three or four years. 170 00:07:44,480 --> 00:07:47,360 Speaker 4: I mean, that would produce amazing growth. And let me 171 00:07:47,560 --> 00:07:50,080 Speaker 4: sort of explain how that works. So we did a 172 00:07:50,120 --> 00:07:52,440 Speaker 4: deal with Micron. Right, they're going to build two hundred 173 00:07:52,480 --> 00:07:56,400 Speaker 4: billion dollars in America. So on Friday last Friday, we 174 00:07:56,440 --> 00:08:00,400 Speaker 4: did a ground breaking of their megafab, one hundred billion 175 00:08:00,400 --> 00:08:02,880 Speaker 4: dollar fag fab. And where did they do it? They 176 00:08:02,920 --> 00:08:05,960 Speaker 4: did it in Upstate New York conserractives. Now, there hasn't 177 00:08:05,960 --> 00:08:09,520 Speaker 4: been industrial building in Upstate New York in probably forty years. 178 00:08:09,800 --> 00:08:11,440 Speaker 4: But if you think about it, it had a huge 179 00:08:11,440 --> 00:08:13,080 Speaker 4: industrial base once upon a time. 180 00:08:13,320 --> 00:08:16,280 Speaker 3: So what does it have. It has power because it 181 00:08:16,320 --> 00:08:18,040 Speaker 3: has the power infrastructure for that. 182 00:08:18,320 --> 00:08:22,160 Speaker 4: So what that does is it creates like this enormous uplift. 183 00:08:22,400 --> 00:08:24,200 Speaker 4: And I think Europe can do the same thing. I 184 00:08:24,200 --> 00:08:27,280 Speaker 4: think the UK can do the same thing. And Canada 185 00:08:27,440 --> 00:08:30,119 Speaker 4: is just thinking in this arrogant kind of thought. 186 00:08:30,440 --> 00:08:32,720 Speaker 5: Well, but just to build on what John is talking about, 187 00:08:32,880 --> 00:08:36,000 Speaker 5: it's a style question. Can you get the same results 188 00:08:36,280 --> 00:08:39,680 Speaker 5: without using words like calling leaders week or their economy 189 00:08:39,720 --> 00:08:40,360 Speaker 5: is decaying? 190 00:08:40,640 --> 00:08:40,840 Speaker 3: Right? 191 00:08:40,920 --> 00:08:44,360 Speaker 5: Is it necessary to provoke the visceral feeling that we 192 00:08:44,480 --> 00:08:47,640 Speaker 5: feel among a lot of leaders here and in conversations 193 00:08:47,880 --> 00:08:51,120 Speaker 5: with international investors? I mean, is there any other way? 194 00:08:51,240 --> 00:08:54,280 Speaker 5: Is that style more harmful than it is helpful? 195 00:08:54,679 --> 00:08:55,000 Speaker 3: Well? 196 00:08:55,200 --> 00:08:59,160 Speaker 4: I think it creates listening, Like people pay attention to 197 00:08:59,200 --> 00:09:01,480 Speaker 4: it and listen to it. If you just sort of 198 00:09:01,520 --> 00:09:05,080 Speaker 4: blend in, no one hears anything in Davos, right, everybody 199 00:09:05,080 --> 00:09:07,280 Speaker 4: says the same blah blah blah blah blah. And if 200 00:09:07,320 --> 00:09:09,120 Speaker 4: you need to break out and you need to say it. 201 00:09:09,200 --> 00:09:13,800 Speaker 4: So my view is right that Canada has never expressed 202 00:09:13,800 --> 00:09:16,680 Speaker 4: to the world that they have the best deal, the 203 00:09:16,720 --> 00:09:18,720 Speaker 4: second best deal in the world. The best deal in 204 00:09:18,760 --> 00:09:22,200 Speaker 4: the world is Mexico because remember they have USMCA, which 205 00:09:22,240 --> 00:09:25,640 Speaker 4: means eighty five percent of the Canadian economy comes into 206 00:09:25,640 --> 00:09:29,280 Speaker 4: the United States for zero. And there he is complaining 207 00:09:29,320 --> 00:09:32,320 Speaker 4: that he's going to go to China and improve it. 208 00:09:32,360 --> 00:09:35,600 Speaker 3: What's he going to do? China's delighted to sell to him. 209 00:09:35,800 --> 00:09:38,160 Speaker 4: But do you think China's going to open their economy 210 00:09:38,360 --> 00:09:41,400 Speaker 4: to accept exports from Canada. This is the silliest thing 211 00:09:41,440 --> 00:09:43,760 Speaker 4: I've ever seen. They have the second best deal because 212 00:09:43,800 --> 00:09:46,040 Speaker 4: Mexico's got a little better deal. They have twenty five 213 00:09:46,040 --> 00:09:49,120 Speaker 4: percent on the extra fifteen percent, whereas Canada's got thirty 214 00:09:49,120 --> 00:09:51,560 Speaker 4: five percent on the extra fifteen percent. But give me 215 00:09:51,600 --> 00:09:53,840 Speaker 4: a break. They have the second best deal in the world. 216 00:09:54,160 --> 00:09:55,640 Speaker 4: And all I got to do is listen to this 217 00:09:55,679 --> 00:09:57,040 Speaker 4: guy wind and complain. 218 00:09:56,760 --> 00:09:59,839 Speaker 5: Mister Secretary. In fairness, you've seen from the airplanes. You've 219 00:09:59,840 --> 00:10:02,400 Speaker 5: seen in about a thirty percent decline in Canadian visitors 220 00:10:02,400 --> 00:10:04,719 Speaker 5: to the United States, if not significantly more. You've seen 221 00:10:04,720 --> 00:10:08,200 Speaker 5: a similar type of decline from China. European travelers inbound 222 00:10:08,240 --> 00:10:10,839 Speaker 5: have come down. There is a sense that people do 223 00:10:10,840 --> 00:10:12,720 Speaker 5: not want to come to the culture of the US, 224 00:10:12,760 --> 00:10:14,880 Speaker 5: and there is this anchor about it. I just wonder 225 00:10:15,280 --> 00:10:18,000 Speaker 5: if you think that that's just temporary, or you just 226 00:10:18,040 --> 00:10:19,960 Speaker 5: sort of dismiss that, or you think it's irrelevant to 227 00:10:20,000 --> 00:10:20,920 Speaker 5: the actual issues. 228 00:10:21,480 --> 00:10:25,400 Speaker 4: I think what that is is political marketing. Right, the 229 00:10:25,480 --> 00:10:28,920 Speaker 4: Canadians have the second best deal in the whole wide world. 230 00:10:29,200 --> 00:10:33,240 Speaker 4: If they continue this path, right, which is a political 231 00:10:33,720 --> 00:10:36,160 Speaker 4: path of a certain thing. I'm going to go fly 232 00:10:36,320 --> 00:10:38,760 Speaker 4: to China. I'm going to open up my markets to China. 233 00:10:38,760 --> 00:10:41,800 Speaker 4: I'm going to take Chinese electric cars and do all 234 00:10:41,840 --> 00:10:47,520 Speaker 4: sorts of this stuff. Then when USMCA gets renegotiated this year, 235 00:10:48,160 --> 00:10:51,040 Speaker 4: this year, sort of like towards the end of the summer, 236 00:10:51,280 --> 00:10:52,880 Speaker 4: in the middle of the summer, do you think the 237 00:10:52,880 --> 00:10:54,880 Speaker 4: President of the United States is going to say you 238 00:10:54,920 --> 00:10:57,360 Speaker 4: should keep having the second best deal in the world. 239 00:10:57,360 --> 00:10:59,520 Speaker 4: I mean, you guys are such great friends. I mean 240 00:10:59,760 --> 00:11:04,199 Speaker 4: they are playing with a except of rules that they 241 00:11:04,200 --> 00:11:05,000 Speaker 4: haven't really thought. 242 00:11:05,080 --> 00:11:06,760 Speaker 2: I can hear it in your voice. You're excited about 243 00:11:06,760 --> 00:11:08,199 Speaker 2: negotiating this aren't you lay this year? 244 00:11:08,200 --> 00:11:11,160 Speaker 4: Well, they've sort of given a sort of a roadmap 245 00:11:11,360 --> 00:11:13,520 Speaker 4: of saying, so I guess we should change the whole deal. 246 00:11:14,000 --> 00:11:15,800 Speaker 3: Right, you want to be like the rest of the world. 247 00:11:16,040 --> 00:11:19,520 Speaker 4: You don't want to be this favored neighbor because you've 248 00:11:19,559 --> 00:11:22,480 Speaker 4: taken it so for granted that you're willing to come 249 00:11:22,679 --> 00:11:26,120 Speaker 4: to Davos and say, there's two higemic powers in the world, 250 00:11:26,559 --> 00:11:28,640 Speaker 4: and we're going to decide which one we're going to 251 00:11:28,720 --> 00:11:30,600 Speaker 4: work with. Really, you're going to either work with the 252 00:11:30,640 --> 00:11:32,600 Speaker 4: United States of America, where seventy five percent of your 253 00:11:32,600 --> 00:11:35,840 Speaker 4: economy is totally tied to it, or China. 254 00:11:36,559 --> 00:11:40,199 Speaker 3: Why would you say that? It just I think it's political, 255 00:11:40,880 --> 00:11:41,120 Speaker 3: you know. 256 00:11:41,240 --> 00:11:44,160 Speaker 4: I think if we take it correctly, we should look 257 00:11:44,160 --> 00:11:46,679 Speaker 4: at it as just political noise coming out of a 258 00:11:46,760 --> 00:11:49,760 Speaker 4: prime minister and maybe this is working for his election, right, 259 00:11:49,840 --> 00:11:52,360 Speaker 4: because I don't think it can be real, Because if 260 00:11:52,400 --> 00:11:56,840 Speaker 4: you took out the math of Canada's economy and doing 261 00:11:56,880 --> 00:12:00,559 Speaker 4: business with the United States of America's thirty trillion dollars economy, 262 00:12:00,840 --> 00:12:04,560 Speaker 4: there's no such thing as changing what they have today. 263 00:12:04,800 --> 00:12:07,160 Speaker 3: No one would vote for changing. 264 00:12:06,840 --> 00:12:09,680 Speaker 4: What they head today now, not think they're marketing as well, 265 00:12:10,000 --> 00:12:12,720 Speaker 4: but they're just for their politics, but they're surely not 266 00:12:12,840 --> 00:12:16,240 Speaker 4: marketing it well for their fundamental economics for long term. 267 00:12:16,320 --> 00:12:18,120 Speaker 1: The United States, the US are doing deals with China, 268 00:12:18,120 --> 00:12:19,400 Speaker 1: and i'd love you to walk us through what's going 269 00:12:19,440 --> 00:12:21,560 Speaker 1: on with the Age twenties. Is it accurate now that 270 00:12:21,679 --> 00:12:24,120 Speaker 1: basically for China to get the Age twenty chips, Taiwan 271 00:12:24,160 --> 00:12:26,640 Speaker 1: needs to send them to America for US to put 272 00:12:26,640 --> 00:12:28,440 Speaker 1: a tariff on them to make money off it, and 273 00:12:28,480 --> 00:12:29,480 Speaker 1: then send to China. 274 00:12:29,960 --> 00:12:31,880 Speaker 3: And is it your understanding that China might. 275 00:12:31,760 --> 00:12:35,240 Speaker 1: Be suspectable now to these chips suspect because they're entering 276 00:12:35,240 --> 00:12:36,240 Speaker 1: through the United States. 277 00:12:36,920 --> 00:12:40,319 Speaker 4: So it's the Age two hundred, right, So that's the 278 00:12:40,400 --> 00:12:43,160 Speaker 4: chip we're talking about. And Jensu Wang came to the 279 00:12:43,160 --> 00:12:46,720 Speaker 4: Oval office and he argued that this is a better 280 00:12:46,840 --> 00:12:49,839 Speaker 4: chip than they can actually make in any scale. Right, 281 00:12:49,920 --> 00:12:53,479 Speaker 4: So if we sell them to China, right, and Chinese businesses, 282 00:12:53,640 --> 00:12:56,920 Speaker 4: then they'll start using them and they'll develop on the 283 00:12:56,960 --> 00:12:59,120 Speaker 4: American tech stack and that will take some money away 284 00:12:59,160 --> 00:13:02,680 Speaker 4: from the Chinese tech stack. And that's it's an interesting argument. 285 00:13:02,679 --> 00:13:04,800 Speaker 4: There are two sides. There are strong two sides. We 286 00:13:04,800 --> 00:13:07,000 Speaker 4: shouldn't sell them any or we should sell them the 287 00:13:07,080 --> 00:13:09,839 Speaker 4: which and I stayed right in the middle. It was 288 00:13:09,880 --> 00:13:13,640 Speaker 4: a really really good discussion, okay. And the President decided 289 00:13:13,880 --> 00:13:16,760 Speaker 4: that fine, we'll sell the h two hundreds to them, okay. 290 00:13:16,960 --> 00:13:18,920 Speaker 3: And he made that decision, and after. 291 00:13:18,679 --> 00:13:20,760 Speaker 4: He was done, he said, and you know what, I 292 00:13:20,800 --> 00:13:22,920 Speaker 4: think if we do that, we should get twenty five 293 00:13:22,920 --> 00:13:26,120 Speaker 4: percent for the American taxpayers, right, because we're creating something. 294 00:13:26,160 --> 00:13:28,320 Speaker 1: I think China wants to buy them, knowing that they're 295 00:13:28,320 --> 00:13:31,080 Speaker 1: going from Taiwan now back to the US. 296 00:13:31,160 --> 00:13:32,600 Speaker 3: Coming to the United States. 297 00:13:32,640 --> 00:13:37,040 Speaker 4: Because in order to collect twenty five percent, right, the 298 00:13:37,280 --> 00:13:41,000 Speaker 4: process matter to do it, right is he imported, put 299 00:13:41,000 --> 00:13:43,720 Speaker 4: a tariff on it, and then export it again. Okay. 300 00:13:44,000 --> 00:13:47,440 Speaker 4: And so that's the model. It's the process model to 301 00:13:47,520 --> 00:13:51,640 Speaker 4: execute a plan that the President United States of America made, right. 302 00:13:51,840 --> 00:13:54,320 Speaker 4: So that's just the execution model of how to do 303 00:13:54,360 --> 00:13:57,200 Speaker 4: it. It's not it's just process, right. And it's the same 304 00:13:57,280 --> 00:14:00,480 Speaker 4: age two hundred chip. And the question will find out 305 00:14:00,920 --> 00:14:04,840 Speaker 4: is that businesses in China want to buy that's for sure. 306 00:14:05,120 --> 00:14:09,559 Speaker 4: The question is does China central government right want you 307 00:14:09,600 --> 00:14:11,480 Speaker 4: know when they have that same argument too, I want 308 00:14:11,480 --> 00:14:14,680 Speaker 4: to give my companies this chip that they're all clamoring for, 309 00:14:15,120 --> 00:14:16,880 Speaker 4: or do I want to force them to take the 310 00:14:16,920 --> 00:14:20,240 Speaker 4: pain of using lesser chips that are domestically made, but 311 00:14:20,400 --> 00:14:22,520 Speaker 4: helping our domestic companies grow. 312 00:14:23,040 --> 00:14:25,440 Speaker 3: And that's a question. We're going to see how it goes. 313 00:14:25,520 --> 00:14:28,280 Speaker 4: But I think the President put that question out there, 314 00:14:28,440 --> 00:14:30,320 Speaker 4: and I think it's a really interesting one. I didn't 315 00:14:30,320 --> 00:14:33,760 Speaker 4: say there's not two sides of that coin, right, but 316 00:14:33,840 --> 00:14:38,600 Speaker 4: the President thought having Chinese developers on the US tech stack, right, 317 00:14:39,120 --> 00:14:42,800 Speaker 4: given sort of the middle, he falls that way. And 318 00:14:43,040 --> 00:14:46,240 Speaker 4: it was really robust discussion. Both sides of the discussion 319 00:14:46,240 --> 00:14:48,760 Speaker 4: were in the room. It was a deep and thoughtful discussion, 320 00:14:48,800 --> 00:14:50,800 Speaker 4: and that's where he came out and that's why. 321 00:14:50,600 --> 00:14:51,280 Speaker 3: He's the president. 322 00:14:51,440 --> 00:14:53,400 Speaker 2: So you know, I'm just a final thought just listening 323 00:14:53,400 --> 00:14:55,840 Speaker 2: to this engaging conversation of the last fifteen minutes or so. 324 00:14:56,120 --> 00:14:58,600 Speaker 2: Do you fancy the FED seat over the Federal Reserve? 325 00:14:58,640 --> 00:15:01,440 Speaker 2: I can see comma section, you can see him in 326 00:15:01,440 --> 00:15:03,920 Speaker 2: the the ecles. Can you imagine the magic of that 327 00:15:03,960 --> 00:15:07,400 Speaker 2: news conference? These news conferences? 328 00:15:07,480 --> 00:15:09,640 Speaker 1: With the news conference, I'd be going. 329 00:15:09,480 --> 00:15:11,080 Speaker 4: I know what I call that. I call that an 330 00:15:11,080 --> 00:15:14,360 Speaker 4: Amy winehouse. No, No, no. 331 00:15:14,840 --> 00:15:18,040 Speaker 2: I call that box office. It's going to see you, 332 00:15:18,960 --> 00:15:22,040 Speaker 2: the Secretary, thank you. I'm just making sure Missus Farrow 333 00:15:22,080 --> 00:15:25,280 Speaker 2: hasn't scheduled a speech. I don't want that, do we, 334 00:15:25,440 --> 00:15:27,680 Speaker 2: Missus Secretary, thank you, appreciate your time.