Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is breaking news from Bloomberg. We are seeing a
Speaker 2: sharp cell often stocks around the world with President Trump
Speaker 2: said to follow through on his threat of tariffs against
Speaker 2: America's closest trading partners. On Saturday, the President announced twenty
Speaker 2: five percent duties on products from Canada and Mexico and
Speaker 2: ten percent on China, starting just after midnight tonight. Trump
Speaker 2: admits American consumers might take a hit.
Speaker 3: We may have short term so a little pain, and
Speaker 3: people understand that. But long term, the United States has
Speaker 3: been ripped off by virtually every country in the world.
Speaker 3: We have deficits with almost every country, not every country.
Speaker 2: But all most and Republican lawmakers are signaling they support
Speaker 2: the president's efforts. Senator Lindsey Graham had this reaction on
Speaker 2: Fox News Sunday.
Speaker 4: If you want tariffs to go away, Mexico and China,
Speaker 4: stop poising Americans, stop sending ventanyl into America to kill Americans.
Speaker 4: If you want to have a better relationship in Mexico
Speaker 4: with the United States, do your report on the other
Speaker 4: side of the border.
Speaker 2: But Democratic Senator Mark Warner says tariffs amount to what
Speaker 2: he calls a Donald Trump Super Bowl tax less than
Speaker 2: a week before the big game. Remember, Donald Trump got
Speaker 2: hired trying to lower grow saying he was going to
Speaker 2: lower grocery prices.
Speaker 3: Right two weeks in, He's doing something that's going to
Speaker 3: do the absolute opposite.
Speaker 2: Senator Warner spoke to CBS as Margaret Brennan on Face
Speaker 2: the Nation, and you can hear both Face the Nation
Speaker 2: and Fox News Sunday every Sunday on Bloomberg Radio.
Speaker 5: Well, Nathan Trump says he will have separate calls this
Speaker 5: morning with Canadian Prime Minister Justin Trudeau as well as
Speaker 5: with the Mexican leadership. The Canadian leader has already pledged
Speaker 5: twenty five percent retaliatory tariffs on one hundred and seven
Speaker 5: billion dollars worth of US goods. Trudeau says Trump's action
Speaker 5: now risks job losses and price rises for Americans.
Speaker 6: If President Trump wants to usher in a new golden
Speaker 6: age for the United States, the better path is to
Speaker 6: partner with Canada, not to punish US.
Speaker 5: Canadian Prime Minister Justin Trude do other Canadian officials announce
Speaker 5: their own measures. David Eby, the Premiere of British Columbia,
Speaker 5: directed to provincially owned a liquor distributor, to remove some
Speaker 5: alcohol brands made in Republican led States from the shelves
Speaker 5: of retail stores and to cease further purchases.
Speaker 2: Well, as you mentioned, Karen, the PAESO is dropping to
Speaker 2: its lowest level in almost three years. Mexican President Claudia
Speaker 2: Shanbaum says she'll set out her response to US tariffs
Speaker 2: later today. She says she hopes a resolution can be
Speaker 2: found quickly.
Speaker 1: That's a bit Anian noise.
Speaker 4: Nibo sovereignty is not negotiable to this end.
Speaker 1: Yesterday, in my statement, I proposed to President Trump, though
Speaker 1: we establish a working group, it is not with the
Speaker 1: imposition of tariffs that the problems are resolved, but speaking
Speaker 1: and dialoguing.
Speaker 7: As we did.
Speaker 2: Mexican President Claudia Shanbaum spoke there through an interpreter. President
Speaker 2: Trump has said he may escalate US tariff's further in
Speaker 2: response to any retalients.
Speaker 5: Well Nathan, China's reaction to Trump's tariffs, which come in
Speaker 5: the middle of Lunar New Year holiday celebrations, has been
Speaker 5: more muted. The country's Commerce Ministry issued a statement expressing
Speaker 5: strong dissatisfaction and vowing corresponding countermeasures without elaborating. Our Chief
Speaker 5: North Asia correspondent Stephen Engels says China's reaction could yet
Speaker 5: ramp up.
Speaker 6: This is going to be a protracted process, so Beijing
Speaker 6: has to process exactly what's going to be the end
Speaker 6: result of tariffs. Is it going to go up to
Speaker 6: sixty percent? It's ten percent right now, and there's going
Speaker 6: to be an economic impact to that. And I think
Speaker 6: right now, especially as they're coming out of the long
Speaker 6: Lunar New Year holiday, kind of crafting their message obviously.
Speaker 5: And Leutz Bloomberg Steven Angel are reporting from Hong Kong.
Speaker 2: And after he announced those duties on China, Mexico and Canada, Karen,
Speaker 2: President Trump also ramped up threats to the European Union,
Speaker 2: citing that block's large surplus with the US.
Speaker 3: It will definitely happen with the European Union, I can
Speaker 3: tell you that because they've taken advantage of US. Said,
Speaker 3: you know, we have over three hundred billion dollar deficit.
Speaker 3: They don't take our cars, they don't take our farm products.
Speaker 3: They take almost nothing, and we take everything from the
Speaker 3: millions of cars, tremendous amounts of food and farm product.
Speaker 2: President Trump's remarks came after an EU spokesperson said that
Speaker 2: the BLOCK would respond firmly to any trading partner that
Speaker 2: unfairly or arbitrarily imposes tariffs on EU goods.
Speaker 5: Well, Nathan, President Trump's tariffs against Canada and Mexico may
Speaker 5: result in consumers paying more for cars, and we get
Speaker 5: that angle up the tariff story with Bloomberg's John Tucker
Speaker 5: and John how much are we talking about here?
Speaker 8: Well, Karen Research from automotive consultant Alex Partners says the
Speaker 8: tariffs will add sixty billion dollars in cost to the
Speaker 8: auto industry, a lot of which likely to be passed
Speaker 8: on to consumers. Wolf Research analysts so the average price
Speaker 8: of a new car may climb by about three thousand dollars.
Speaker 8: The duties would immediately hit almost a quarter of the
Speaker 8: sixteen million vehicles that are sold in the US every year,
Speaker 8: as well as the parts and components that go into them. Now,
Speaker 8: car components can make their way back and forth across
Speaker 8: the US borders as many as eight times during the
Speaker 8: production of the car. Automakers in Mexico they've been preparing
Speaker 8: by preemptively importing both more components and vehicles that could
Speaker 8: ease the blow in the first few weeks. But Flavio Volpi,
Speaker 8: he's the president of Canada's Automotive Parts Manufacturers Association, predicts
Speaker 8: his words now the auto sector is going to shut
Speaker 8: down within a week. This morning, shares of GM down
Speaker 8: seven percent, Stalantes is off almost six percent, and Ford
Speaker 8: is down four percent. John Tucker Bloomberg Radio.
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Speaker 2: Good morning, I'm Nathan Hager. President Donald Trump's promise of
Speaker 2: tariffs on America's closest trading partners is rippling through markets.
Speaker 2: After announcing twenty five percent duties on Canada and Mexico
Speaker 2: and ten percent on China, the President says the European
Speaker 2: Union is next.
Speaker 3: They don't take our cars, they don't take our farm products,
Speaker 3: they take almost nothing. Can we take everything?
Speaker 5: From?
Speaker 2: The President spoke to reporters outside Washington last night. Joining
Speaker 2: us this morning from the nation's capital, Terry Haynes, the
Speaker 2: founder of Pangaea Policy. As we watch stocks sell off
Speaker 2: and the dollar rally this morning, Terry, Should the market
Speaker 2: have seen this coming?
Speaker 7: Good morning, Hi, Good morning, Nathan, And yes, I think
Speaker 7: they should have. Markets have spent the last few months
Speaker 7: talking themselves into a gradualistory even you know, this isn't happening.
Speaker 7: It's all negotiation stance, and yes it is negotiation, but
Speaker 7: it's negotiation based not from a trade war perspective, but
Speaker 7: I think from an overall conflict perspective, a broader geopolitical context,
Speaker 7: among others.
Speaker 2: So what is the chance, then, Terry, that the president
Speaker 2: that it actually does follow through on these He announced
Speaker 2: they're going to kick in just after midnight tonight. At
Speaker 2: the same time he's saying that he will have discussions
Speaker 2: with Canada and Mexico today.
Speaker 7: I think the markets should assume that some tariffs are coming.
Speaker 7: I think the size and shape are still very much
Speaker 7: up in the air, and markets are going to have
Speaker 7: to get used to volatility here. Frankly, in the realm
Speaker 7: of political decision making. You know, my instinct, and it
Speaker 7: is only instinct, is that it's not at all beyond
Speaker 7: the question that the tariffs go in as announced. It's
Speaker 7: also not beyond the question that they go in with
Speaker 7: some lowered modifications. You can look One way you can
Speaker 7: look at this is Trump testing the markets on reaction,
Speaker 7: and he's also testing politically the reaction of our border
Speaker 7: partners to do specific things to actually improve the border
Speaker 7: and stop the flow of fentanyl.
Speaker 2: Is this a test on fellow Republicans as well?
Speaker 7: It is to some extent, yes, but I think it's
Speaker 7: in so far they've been supportive. But what you got
Speaker 7: to remember over the last decade, and it's been a
Speaker 7: decade since since tariff policy became part of geopolitical policy
Speaker 7: in the United States, is that Congress has has supported
Speaker 7: the means in which the how Trump imposes these tariffs,
Speaker 7: whether it was Trump won, whether it was Biden when
Speaker 7: then now whether it's Trump too. You know, Congress supports
Speaker 7: the how. There will be some dissent on the when
Speaker 7: or why. That's rooted as much in the partisan politics
Speaker 7: as anything else. But there's not going to be any
Speaker 7: serious move to try to stop Trump from doing any
Speaker 7: of these things.
Speaker 2: Do you think there are any further concessions that Canada
Speaker 2: or Mexico could make after the concessions that they've say
Speaker 2: that they have made even before the President announced these duties,
Speaker 2: over the weekend.
Speaker 7: My unsolicited advice to those countries is very simple is
Speaker 7: that as you get as specific if they want to
Speaker 7: stop the tariffs, get as specific, and to talk about
Speaker 7: how well and how much you can partner as possible.
Speaker 7: If Trump realizes, I think, unlike the first that he's
Speaker 7: going to need support from his border partners and very
Speaker 7: much wants those things.
Speaker 2: And in just thirty seconds, is this about partnerships? Is
Speaker 2: this about the fentanyl and immigration flows or is this
Speaker 2: more about the trade deficits.
Speaker 7: I think it's about both. But at root, you know,
Speaker 7: Trump always says that his top priority is securing the border,
Speaker 7: and I think you have to take the border strategy
Speaker 7: both seriously and literally as part of the broader geopolitical
Speaker 7: strategy and the broader economic strategy which are out there,
Speaker 7: which exists, even if they're being ignored by markets.
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