Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: President Donald Trump signing an executive order putting his trade
Speaker 2: deal with Japan into place. The agreement will apply a
Speaker 2: baseline fifteen percent off on nearly all Japanese imports entering
Speaker 2: the US, including automobiles. The government of Japan has also
Speaker 2: agreed to invest five hundred and fifty billion dollars in
Speaker 2: the United States, joining US. Now, I'm very pleased to say,
Speaker 2: is the United States Secretary of Commas, Howard Luttnet missed
Speaker 2: the Secretary. Welcome to the program, Sir. I know you
Speaker 2: wanted to talk about Japan, so let's do that. I
Speaker 2: want you to share with us the terms of this
Speaker 2: five hundred and fifty billion dollar investment fund, a core pillar,
Speaker 2: of course, of the negotiations that you've been helping to
Speaker 2: lead with the Japanese. Can you share with us the
Speaker 2: details this morning, sir.
Speaker 3: Sure.
Speaker 4: So this is a completely different kind of trade deal
Speaker 4: than anyone's ever seen before. So the idea is that
Speaker 4: Japanese government will give five hundred and fifty billion dollars
Speaker 4: two Dollarsald Trump to invest as the United States and
Speaker 4: Donald Trump sees fit in America. So the Japanese will
Speaker 4: get back their money and ninety percent of the profits
Speaker 4: will go to the American citizens, the American taxpayer.
Speaker 3: So Donald Trump, I'll give you an example.
Speaker 4: We buy all of our antibiotics, generic antibiotics in China.
Speaker 3: So Donald Trump can.
Speaker 4: Say, let's go build generic pharmaceuticals in America. Let's build
Speaker 4: those antibiotics in America. The Japanese will fund it, and
Speaker 4: then we will have generic antibiotics in America, will no
Speaker 4: longer be reliant on China.
Speaker 3: So it's in his hands to invest.
Speaker 4: This is not ordinary foreign companies investing. This is not
Speaker 4: Midsubishi building a plant in America. This is five hundred
Speaker 4: and fifty billion dollars buy the Japanese government put in
Speaker 4: the hands of Donald Trump that he can then invest
Speaker 4: in America. It's amazing. I mean, it's the thing. I
Speaker 4: am proud of it. It's the most proud of ever
Speaker 4: been on a business deal I've ever done.
Speaker 2: So it sounds amazing. Do the Japanese think it's amazing?
Speaker 2: And have they codified this agreement?
Speaker 3: They have so yesterday it was all signed.
Speaker 4: So the President signed the EO, I signed the MoU
Speaker 4: with Minister Akazawa in the Commerce Department.
Speaker 3: This is signed, it is written.
Speaker 4: So what happens is Donald Trump can select the project
Speaker 4: that he wants, We put a capitol call into the Japanese,
Speaker 4: they send in the money, and we build the project
Speaker 4: in America. So if you think about this, five hundred
Speaker 4: and fifty billion dollars invested during Donald Trump's term is
Speaker 4: a half a point of GDP given to the United
Speaker 4: States of America's president by the Japanese government. I mean,
Speaker 4: this is amazing in order to have a fifteen percent
Speaker 4: tariff and so they can keep making their cars in Japan.
Speaker 2: Let's just downd the details, mister secretary. So the timeline
Speaker 2: you talked about, the sort of president's term is the
Speaker 2: reclear timeline here? And what's the enforcement mechanism to make
Speaker 2: sure it happens.
Speaker 3: Well, two things.
Speaker 4: Number one, they've committed that they will meet the capitol call.
Speaker 3: So when we're building a.
Speaker 4: Project, they will fund the project's building during the term.
Speaker 4: This investment lasts through, meaning they will put out the money.
Speaker 3: Through the rest of Donald Trump's term.
Speaker 4: So January twenty twenty nine and let's say halfway through,
Speaker 4: and they've invested two hundred and fifty billion dollars. They
Speaker 4: stop saying, I don't want to send you any more money.
Speaker 4: The tariffs pack, you know, pop right back up, and
Speaker 4: they no longer receive the cash flow from these projects.
Speaker 4: They would all just stay with the United States of America.
Speaker 4: So there is just no way they're going to not
Speaker 4: fund these projects. And Donald Trump is going to deliver
Speaker 4: to the American people.
Speaker 3: And this deal is really it's.
Speaker 4: Just, if you think about it, five hundred and fifty
Speaker 4: billion million dollars of Japanese government's money in order to
Speaker 4: buy down their tariff in Donald Trump's hands for his
Speaker 4: availability to invest and build in America. Alaska pipeline scale
Speaker 4: fifty billion, one hundred billion. Donald Trump wants to unleash
Speaker 4: the Alaska pipelines. The Japanese will finance it, and it's
Speaker 4: great for America.
Speaker 2: It's fantastic, mister Secretary, you'll appreciate. We've got a number
Speaker 2: of topics to get through with you in a short
Speaker 2: amount of time, so I wanted to turn to other
Speaker 2: issues in India. This came from the President this morning
Speaker 2: on social media. It looks like we've lost India and
Speaker 2: Russia for that matter, to deepest, darkest China may they
Speaker 2: have a long and prosperous future together. This relationship between
Speaker 2: the US and India has clearly soured. You your South
Speaker 2: said earlier this year that India rubbed the US the
Speaker 2: wrong way. There's an understandable tension that continues to build.
Speaker 2: But they're not the only ones buying Russian energy. The
Speaker 2: Chinese are buying Russian energy, and for that matter, of
Speaker 2: the Europeans too. And I think there's a sense from
Speaker 2: the Indian side, mister se that they feel singled down,
Speaker 2: perhaps unfairly. What's your comment, your message for them this morning.
Speaker 4: Well, remember before the Russian conflict, the Indians bought less
Speaker 4: than two percent of their oil from Russia, less than
Speaker 4: two percent, and now they're buying forty percent of their
Speaker 4: oil from Russia. What they're doing is because the oil
Speaker 4: is sanctioned, it's really really cheap, because the Russians are
Speaker 4: trying to find people to buy it, and so the
Speaker 4: Indians have just decided, ah, the heck with it, let's
Speaker 4: buy it cheap and make a ton of money. But
Speaker 4: you know what, that is just plain wrong. It's ridiculous,
Speaker 4: and they either need to decide which side they want
Speaker 4: to be on, you know, what's funny is remember the
Speaker 4: Chinese sell the Chinese, Well.
Speaker 3: We're always willing to talk.
Speaker 4: The Chinese sell to us, the Indians sell to us.
Speaker 4: To be able to sell to each other. We are
Speaker 4: the consumer of the world. People have to remember it's
Speaker 4: our thirty trillion dollar economy that is the consumer of
Speaker 4: the world. So eventually they all have to come back
Speaker 4: to the customer, because we all know, eventually the customer
Speaker 4: is always right.
Speaker 1: When you are talking with India, mister Secretary, I know
Speaker 1: a lot of companies in the US have shifted manufacturing
Speaker 1: to India from China, so there's a real interest in
Speaker 1: this in terms of their costs. How much do you
Speaker 1: feel like you've lost leverage as a result of the
Speaker 1: court case that came out fairly recently.
Speaker 4: We haven't lost any thing with respect to the court case.
Speaker 4: If you look at the descent, right, it was seven
Speaker 4: to four.
Speaker 3: Read the descent.
Speaker 4: The current Chief Justice sided with President Trump, the former
Speaker 4: Chief Justice sided with President Trump, and the incoming Chief
Speaker 4: Justice sided with President Trump. And the smartest guy on
Speaker 4: the band, which is well known who this water's ky
Speaker 4: on the bench is he sided with Donald Trump. So
Speaker 4: I think you are going to see the Supreme Court
Speaker 4: side with Donald Trump, and I don't think we've lost leverage.
Speaker 4: What we've lost is that India doesn't yet want to
Speaker 4: open their market. Stop buying Russian oil, right, and stop
Speaker 4: being a part of bricks. Right, they're the vowel between
Speaker 4: Russia and China. If that's who you want to be,
Speaker 4: go be it. But either support the dollar, support the
Speaker 4: United States of America, support your biggest client, who is
Speaker 4: the American consumer, Or I guess you're gonna pay a
Speaker 4: fifty percent tariff and let's see how long this lasts.
Speaker 1: It seems like there's been a hardening of the line,
Speaker 1: both with President Trump as well as Mody, and a
Speaker 1: sense that there isn't really a coming together. In fact,
Speaker 1: that meeting with Jujen Pang and Vladimir Putin and frim
Speaker 1: mister Mody seem to indicate a coalescing of the bricks.
Speaker 1: Do you see anywhere in the next month two months
Speaker 1: any type of deal or backing down to a lower
Speaker 1: rate with India, I.
Speaker 3: Would expect like you saw it in Canada. Right.
Speaker 4: The Carney got elected with this term elbows up, meaning
Speaker 4: let's fight with America.
Speaker 3: They put on retaliatory tariffs. They were all bravado, and
Speaker 3: what happened?
Speaker 4: Their GDP negative one point six percent, unemployment rocketing towards
Speaker 4: eight percent, and what did Carney just do?
Speaker 3: He just finally finally dropped his retaliatory tariffs.
Speaker 4: So I think what happens is it's all bravado because
Speaker 4: you think it feels good to fight with the biggest
Speaker 4: client in the world. But eventually your businesses are going
Speaker 4: to say, you've got to stop this and go make
Speaker 4: your deal with America. So I think yes, in a
Speaker 4: month or two months, I think India is going to
Speaker 4: be at the table and they're going to say they're sorry,
Speaker 4: and they're going to try to make a deal with
Speaker 4: Donald Trump. And it will be on Donald Trump's desk
Speaker 4: how he wants to deal with Mody, and we leave
Speaker 4: that to him. That's why he's the.
Speaker 2: President, speaking of making a deal. I understand the Swiss
Speaker 2: are in town, just tearing that the Swiss Vice president
Speaker 2: has turned up in the United Stice again. Is the
Speaker 2: a meeting on the agenda for today going into the weekend.
Speaker 4: Yes, So I'm going to meet with the Swiss delegation.
Speaker 4: They're coming in to make a new proposal and the
Speaker 4: Trump administration is always willing to listen. But you have
Speaker 4: to remember, you know, the Swiss like to say they're
Speaker 4: a small country of only nine million people, a small
Speaker 4: rich country, and how do they become so rich? They
Speaker 4: sell us pharmaceuticals like it's going out of style, all right.
Speaker 4: They make so much money off of America. That's why
Speaker 4: they're rich. So let's hear what they have to say.
Speaker 4: We'll discuss it with the president. You know, I'm not optimistic,
Speaker 4: but I'm always willing to listen, and Donald Trump is
Speaker 4: always why are you not optimistic?
Speaker 2: Traditionally there's been a decent relationship. Then the president's first
Speaker 2: term reliant on the Swiss a lot when it came
Speaker 2: to foreign policy and developments in places like Iran. What's
Speaker 2: happened this time?
Speaker 4: Well, you just consider trade, right, you know, the European Union, Right,
Speaker 4: they open their market four hundred and fifty million people,
Speaker 4: twenty trillion dollar economy, and they say, well, take our
Speaker 4: tariffs down to zero. You the American exporters can sell
Speaker 4: us everything. I mean, how fantastic is that? And they
Speaker 4: say we'll pay you fifteen percent and you pay us nothing.
Speaker 4: I mean, that is really really attractive. Now you go
Speaker 4: to Switzerland nine million people. I mean, what are they
Speaker 4: going to offer the American exporter as compared to the
Speaker 4: size and scale by which they export and earn money
Speaker 4: off of us. So the idea is we need balanced
Speaker 4: in fair trade, and that's a difficult thing. Now you
Speaker 4: saw the Japanese. They decided to take a completely different path,
Speaker 4: and what they said is we will we will give
Speaker 4: Donald Trump the power to invest five hundred and fifty
Speaker 4: billion dollars as he at his direction, for the benefit
Speaker 4: of America. Now that's a different way of thinking. Now,
Speaker 4: if the Swiss come out of the box with a
Speaker 4: whole new way of thinking, I'm open minded. But if
Speaker 4: they just say, our rich companies are going to buy
Speaker 4: more of America.
Speaker 3: I mean, that's what Donald Trump is complaining about.
Speaker 4: You realize, in nineteen eighty five, we America owned more
Speaker 4: of the rest of the world. We owned one hundred
Speaker 4: and just about one hundred and fifty billion of the
Speaker 4: rest of the world. And you know in twenty twenty five,
Speaker 4: when Donald Trump takes office, the rest of the world
Speaker 4: owns twenty six trillion more of us because they just
Speaker 4: use all the money they make off of us to
Speaker 4: buy us, and sooner or later, they're just going to
Speaker 4: own us. And Donald Trump has said enough of this.
Speaker 4: We are going to own ourselves going forward.
Speaker 2: Mister Secretary, I know you're your own bus on your
Speaker 2: own time, but your team is telling us we've got
Speaker 2: to go shortly. So I'm going to squeeze out a
Speaker 2: few more minutes if I can. At eight thirty Eastern time,
Speaker 2: we're meant to get a job's number. This is what
Speaker 2: we heard from the BLS just moments ago that the
Speaker 2: Bureau of Labors TOSTIC says it's experiencing a technical problem
Speaker 2: and data retrieval tools are currently not available on the website. Sir,
Speaker 2: are we going to see a number in ten minutes time?
Speaker 4: I don't know if we're going to see a number,
Speaker 4: but I tell you it makes it crystal clear you
Speaker 4: should have fired the person who was running that group
Speaker 4: right Because it didn't fire them two weeks ago.
Speaker 3: You sure heck would be firing them today. So they
Speaker 3: need new.
Speaker 4: Leadership in BLS, that's for sure. They need new tech
Speaker 4: and BLS, that's for sure. And Donald Trump needs to
Speaker 4: rely upon the numbers. America needs to rely upon the numbers.
Speaker 4: You can't have these bent former administration people who have
Speaker 4: a view and who.
Speaker 3: Want to harm the president.
Speaker 4: We need accurate numbers coming from BLS and finally, we'll
Speaker 4: have new leadership to deliver it.
Speaker 1: Mister secretary, you're also going to promise new resources for
Speaker 1: them to increase their collection and increase some of their
Speaker 1: staff to go out and make this data accurate.
Speaker 3: Yeah.
Speaker 4: Can you imagine they had people calling around. I mean,
Speaker 4: come on, computers, computers, Wow, it's twenty twenty five and
Speaker 4: a half. Computers, new resources, new technology, wildly better information.
Speaker 4: That's what America demands. That's what Donald Trump's going to
Speaker 4: give them. And you just need to change leadership every
Speaker 4: once in a while and make sure we get it right.
Speaker 4: I'm excited about what's coming. Of course, you fire the person,
Speaker 4: what do you learn? You learn that their technology is
Speaker 4: just a bully. But we'll fix it. We'll fix it.