Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: So here's the lightsus this morning, President elec Donald Trump
Speaker 2: vowing to impose a twenty five percent tariff on products
Speaker 2: from Mexico and Canada and an additional ten percent terif
Speaker 2: on goods from China, calling it necessary to clamp down
Speaker 2: on the flow of migrants and illegal drugs crossing America's borders.
Speaker 2: Let's loop in Congress right now we can speak to
Speaker 2: the Republican Congressman Frendshill of Arkansas. Congressman here, welcome back
Speaker 2: to the show, sir. It's always wonderful to hear your
Speaker 2: perspective on things. We want your reaction to this. How
Speaker 2: credible is this thread from President elect Donald Trump overnight?
Speaker 3: Well, Jonathan, good morning, Happy Thanksgiving week to you and
Speaker 3: everybody at Bloomberg. This is a critical threat by President
Speaker 3: Trump because we have unprecedented border problems with particularly Mexico
Speaker 3: on Fitnall and nearly nine million people that are cross
Speaker 3: the border. We've not been able to secure the border
Speaker 3: under the Biden hears at menas for This was a
Speaker 3: main major campaign point for President Trump, and so I
Speaker 3: believe that he's stepping up and making this statement about
Speaker 3: tariffs to tell both Canada and Mexico we have got
Speaker 3: to get our border security in the United States States
Speaker 3: squared away. And then secondarily, I think he's very concerned
Speaker 3: about imports from other countries that are going to try
Speaker 3: to take advantage of the USMCA and bring in products
Speaker 3: through manufacturing in Mexico that may skirt some of the
Speaker 3: requirements of USMCA. So both those things I think are
Speaker 3: on the table, border security and trying to strengthen the
Speaker 3: parameters of usmcaa for some exports from outside manufacturing companies.
Speaker 4: Congressman, So President like Trump sees immigration and legal immigration
Speaker 4: as the problem in tariffs as the remedy. But you
Speaker 4: just mentioned USMCA. If we have an executive order with
Speaker 4: these tariffs that overrides USMCA, should President elect be getting
Speaker 4: Congress on board members like yourself.
Speaker 3: It's important to bring Congress into the discussion with the
Speaker 3: President as soon as possible. But remember when he was president,
Speaker 3: he worked very hard with Canada and Mexico to renegotiate
Speaker 3: the North American Free Trade Agreement and create the USMCA.
Speaker 3: During that time, he also had strong cooperation from Mexico
Speaker 3: on his remain in Mexico policy, which was to say, look,
Speaker 3: if you're seeking asylum in the United States, our loss,
Speaker 3: as you had to do that from a third country.
Speaker 3: President Biden has just waived that rule and allowed millions
Speaker 3: of people to come into the US while they seek asylum.
Speaker 3: Probably ninety percent will be required to be deported because
Speaker 3: they're not eligible to seek asylum. So I believe President
Speaker 3: Trump's also using this tariff threat to tell the new
Speaker 3: government in Mexico City, let's get serious about the migrant
Speaker 3: flows across Mexico's border and get back to our remain
Speaker 3: in Mexico policy or remain in a third country policy.
Speaker 4: So is it just that a threat or do you
Speaker 4: think come January he's going to follow through with ten
Speaker 4: percent on tariffs on China on top of others he
Speaker 4: says in twenty five percent when it comes to imports
Speaker 4: from Mexico and Canada.
Speaker 3: Well, we know from his first term in office that
Speaker 3: he's willing to deliver on his threats on tariffs to
Speaker 3: bring other countries to the negotiating table, both on economic
Speaker 3: and trade issues as well as other matters. And I
Speaker 3: certainly consider border security a top issue coming out of
Speaker 3: this election. People are sick and tired of the crime impact,
Speaker 3: the ftanyl impact, the death in our communities, and the
Speaker 3: overwhelming loss of control from Tijuana to Browns Bow of
Speaker 3: the Mexican American border. So I believe that yes, he
Speaker 3: would deliver on this, but he's also using it as
Speaker 3: a lever to get serious conversations in Ottawa and Mexico
Speaker 3: City with Washington. As we turn the page and have
Speaker 3: a new presidential administration.
Speaker 4: Well, when Congress turns the page, we're going to be
Speaker 4: looking forward to hearing who is going to get the
Speaker 4: top committee post, the chairmanships of these committees, And in
Speaker 4: about two weeks time, we might know that. I know, Congressman,
Speaker 4: you're up for potentially leading the Finance Committee. What's the
Speaker 4: status of that.
Speaker 3: Well, I'm making the case to my colleagues republic and
Speaker 3: colleagues and serve on the House Steering Committee that I
Speaker 3: believe that because of my long standing by Cameral communication
Speaker 3: and collaboration capabilities with the Senate, my leadership in the
Speaker 3: House over the last decade, and probably most importantly, the
Speaker 3: fact that I was in the private sector for decades
Speaker 3: and was regulated mightily by the federal government through both
Speaker 3: the securities regulators and the banking regulators that that private
Speaker 3: sector experience, My experience on Capitol Hill and communication and collaboration,
Speaker 3: and also my work in the executive branch at the
Speaker 3: Treasurer in the White House makes me an ideal candidate
Speaker 3: to serve as the House Financial Services Committee. And Anne Marie,
Speaker 3: what's amazing about this is based on my research, we're
Speaker 3: this theory committee to select me for this important post.
Speaker 3: I would be the first person with a banking and
Speaker 3: finance background before I entered Congress to serve as chairman
Speaker 3: since the Teddy Roosevelt administration, so it's a long time ago.
Speaker 3: So I hope that my background, my resume will be
Speaker 3: carry the day for leading the committee congressman.
Speaker 1: Based on what we've heard from Donald Trump and some
Speaker 1: of his priorities when it comes to the financial sector,
Speaker 1: a lot of people are pointing to the potential for
Speaker 1: crypto being the first and the agenda of any financial
Speaker 1: chairman financial House Services Committee Chairman. Is that your take
Speaker 1: on it as well?
Speaker 3: Well? I think that's very important. If we don't get
Speaker 3: our policies for digital assets market structure completed during the
Speaker 3: lame duck, I think it will be a top issue
Speaker 3: for the House Financial Services Committee and looking forward working
Speaker 3: with a new Banking Committee Chairman Tim Scott of South Carolina,
Speaker 3: we need a market structure bill that gives us the
Speaker 3: framework for digital assets so that innovation, coding, company formation
Speaker 3: can take place here in the United States and not
Speaker 3: push that innovation off shore to other markets. And secondly,
Speaker 3: we do need a dollar back stable coin as a
Speaker 3: tokenized payment of the US dollar for use on a blockchain.
Speaker 3: Both these innovations will help support the future of Web
Speaker 3: three and continue to make the dollar of the strongest
Speaker 3: currency in the world and America the leading technology and
Speaker 3: innovation and capital of the world.
Speaker 5: Is your background in finance an attribute or potentially not
Speaker 5: really even weighing in on this race at a time
Speaker 5: where a lot of people are pointing to simply past
Speaker 5: allegiance to Donald Trump.
Speaker 3: I think the chairmanship is an important issue and back
Speaker 3: and talent, communication, collaboration are all top issues. I've worked
Speaker 3: extensively with the Trump administration previously. In the previous term
Speaker 3: in office, Jay Clayton at the SEC the Bank Supervisors
Speaker 3: were a major source of collaboration for me in reforming
Speaker 3: our regulatory system for both capital markets and the banking system,
Speaker 3: and I believe that'll be the case in the second
Speaker 3: term of Donald Trump. Will I will work very closely
Speaker 3: with what I will presume to be excellent nominees from
Speaker 3: the FDIC to the CFPB to the SEC, and we
Speaker 3: will in fact make community banking great again through that
Speaker 3: regulatory and legislative cooperation.
Speaker 2: A Congressman, I'm not in the endellcement business. I don't
Speaker 2: intend to stop, but it would be nice. I think
Speaker 2: I could say this on the behalf of our audience.
Speaker 2: It would be nice to have someone with financial services
Speaker 2: experience run the House Financial Services Committee, and we appreciate it.
Speaker 2: TIGN this morning, thank you, Congressman French hell there of
Speaker 2: our consult