WEBVTT - Howard Lutnick Talks Non-Tariff Barriers 0:00:02.360 --> 0:00:06.680 Bloomberg Audio Studios, podcasts, radio news. 0:00:06.840 --> 0:00:09.399 As you know our top story worldwide, President Donald Trump 0:00:09.560 --> 0:00:12.920 and leashing a major tariff push, imposing levies on all 0:00:13.200 --> 0:00:16.200 of America's major trade partners. The COMMA Secretary Howard Latnik 0:00:16.320 --> 0:00:19.200 playing a key role in President Trump's tariff announcement just 0:00:19.280 --> 0:00:21.439 last night. The COMMA Secretary joins us now for more. 0:00:21.640 --> 0:00:23.520 Mister Secretary, thank you for making time for us on 0:00:23.560 --> 0:00:25.479 a busy morning for you and the team appreciate it. 0:00:25.520 --> 0:00:28.640 As always, Let's talk about those deadlines those dates. Baseline 0:00:28.680 --> 0:00:31.840 tariff start on April fifth, higher tarif star on April ninth. 0:00:31.880 --> 0:00:34.040 What happens between now and then. 0:00:36.440 --> 0:00:40.519 Well it really We are talking to all the trade ministers, 0:00:40.560 --> 0:00:44.800 but nothing really happens between now and then. What CEOs 0:00:44.840 --> 0:00:49.120 are thinking about is, finally, let's think about building in America. 0:00:49.360 --> 0:00:54.280 You've got almost five trillion dollars of commitments coming to America. 0:00:53.880 --> 0:00:55.000 To build their factories. 0:00:55.240 --> 0:00:58.400 That number is only going to grow as people realize 0:00:58.440 --> 0:01:02.120 it's time to bring manufactured bring home to America, where 0:01:02.160 --> 0:01:05.200 the greatest economy and the greatest market in the world is. 0:01:05.520 --> 0:01:08.199 It's time for America to stop taking care of every 0:01:08.280 --> 0:01:11.600 other economy in the world and building them up. Let's 0:01:11.600 --> 0:01:15.959 build the American economy up. Let's build American GDP, and 0:01:16.040 --> 0:01:19.119 you're going to see great growth from America. 0:01:18.840 --> 0:01:21.600 Mister Secretary, as you know, capitals around the world watching 0:01:21.600 --> 0:01:24.240 this program right now wants to understand what they can 0:01:24.319 --> 0:01:27.160 do between now and then to avoid those tariffs. What 0:01:27.280 --> 0:01:30.120 do they need to do. Have you communicated any metrics 0:01:30.120 --> 0:01:31.199 to them, whatsoever. 0:01:33.560 --> 0:01:36.120 Well, we've been talking to the trade ministers of the 0:01:36.160 --> 0:01:40.199 major trading partners for more than a month and we've 0:01:40.200 --> 0:01:43.240 been talking to them, and so you have to understand, 0:01:43.440 --> 0:01:46.319 and this is what's difficult for your audience to understand. 0:01:46.400 --> 0:01:48.520 That tariffs are easy to understand. 0:01:48.600 --> 0:01:50.960 Right, we have a two and airf percent tariff on autos, 0:01:51.240 --> 0:01:54.520 and Europe has a ten percent tariff, and other people 0:01:54.600 --> 0:01:58.640 have twenty percent or fifteen percent tariff, and that's sort 0:01:58.680 --> 0:01:59.559 of easy, so they. 0:01:59.440 --> 0:02:00.480 Can all come down. 0:02:00.680 --> 0:02:04.360 But it's the non tariff trade barriers that are the difference. 0:02:04.680 --> 0:02:08.280 Some countries have that and they take that that tax 0:02:08.320 --> 0:02:11.720 of twenty percent and they use it to subsidize the 0:02:11.800 --> 0:02:16.360 production of their domestic industries. That's why we can't sell 0:02:16.440 --> 0:02:19.600 cars there because they give a rebate either they give 0:02:19.639 --> 0:02:23.000 it directly. One country told me yesterday that they give 0:02:23.000 --> 0:02:26.880 it directly to their car manufacturer to make their cars cheaper. 0:02:26.960 --> 0:02:29.840 That's why they sell successfully and we don't. 0:02:29.960 --> 0:02:32.800 Others take the money and use it and give cheap 0:02:33.080 --> 0:02:37.280 energy costs to this production. And that's why the steel industry. 0:02:37.480 --> 0:02:40.120 Why is everybody else so good at steel and we're not. 0:02:40.320 --> 0:02:44.400 It's because their governments subsidize it. So we really need 0:02:44.440 --> 0:02:48.920 to change the way trade works around the world. It's tariffs, 0:02:49.120 --> 0:02:52.760 but don't get confused that these non tariff trade barriers, 0:02:53.080 --> 0:02:55.639 they are the monster that needs to be slaved. 0:02:55.840 --> 0:02:59.840 You've been consistent about this argument. Subsidized production, manipulated currencies, 0:03:00.120 --> 0:03:02.600 and trade barrier is something the President addressed just last night. 0:03:02.639 --> 0:03:04.440 Can we just sit on the numbers just for a moment, 0:03:04.800 --> 0:03:08.000 the EU twenty percent, twenty four percent on Japan, thirty 0:03:08.000 --> 0:03:11.200 four percent on China. Just what exactly was the methodology 0:03:11.560 --> 0:03:14.160 to go through all those different barriers to entry that 0:03:14.280 --> 0:03:15.280 you want to knock down. 0:03:15.400 --> 0:03:16.840 How did you come up with these numbers? 0:03:19.000 --> 0:03:22.720 Well, the Council of Economic Advisors, you know, the PhD 0:03:23.040 --> 0:03:28.880 economists of the administration, coupled with USTR, the United States 0:03:28.960 --> 0:03:32.120 Trade Representative. They publish a book called Trade Barriers about 0:03:32.120 --> 0:03:35.720 this thick right, and they've been analyzing for decades all 0:03:35.800 --> 0:03:40.280 of these different tools that these other economies use to 0:03:40.760 --> 0:03:41.800 hurt America. 0:03:42.200 --> 0:03:42.400 Right. 0:03:42.440 --> 0:03:45.160 They won't take our corn in India, they won't take 0:03:45.200 --> 0:03:49.800 our beef almost anywhere, it's unbelievable. They won't take our 0:03:50.120 --> 0:03:55.600 agricultural products. They just treat us badly because we've allowed 0:03:55.680 --> 0:03:57.160 them to treat us badly. 0:03:57.480 --> 0:03:59.520 And when you finally go back at them and say 0:03:59.680 --> 0:04:00.560 this is it's got. 0:04:00.360 --> 0:04:02.600 To end, it's going to be tough for them because 0:04:02.640 --> 0:04:07.320 they've built their whole social network, their whole economies on 0:04:07.600 --> 0:04:11.880 basically exploiting America. And Donald Trump has said it's time 0:04:11.960 --> 0:04:14.840 for America to change that. It's going to be difficult 0:04:14.920 --> 0:04:17.960 for them to change that. But eventually America is going 0:04:18.000 --> 0:04:23.120 to be treated fairly and the production of American factories 0:04:23.440 --> 0:04:27.200 is going to be incredibly strong growth, and you're going 0:04:27.240 --> 0:04:32.000 to see that growth reverberate through GDP. Remember, people forget 0:04:32.040 --> 0:04:36.400 the d gross domestic production. If you buy a foreign 0:04:36.560 --> 0:04:40.640 made Toyota, that is not domestic production. Making a car 0:04:40.760 --> 0:04:43.000 in America that's domestic. 0:04:42.760 --> 0:04:43.479 It's a secritificate. 0:04:43.600 --> 0:04:45.479 Just sit on the methodology just for a bait longer 0:04:45.520 --> 0:04:48.279 and address it directly. This is what we understand, what 0:04:48.360 --> 0:04:49.200 most people understand. 0:04:49.279 --> 0:04:49.719 You did that. 0:04:49.839 --> 0:04:52.320 Essentially, you divided the country's trade surplus with the United 0:04:52.360 --> 0:04:55.520 States by the total exports and then divided the number 0:04:55.520 --> 0:04:58.919 by two and produce this discounted rate. If you're a 0:04:58.960 --> 0:05:02.760 trade partner right now and you've just watched how America's 0:05:02.760 --> 0:05:05.640 put together that policy, how are you meant to negotiate 0:05:05.680 --> 0:05:06.000 with that? 0:05:06.240 --> 0:05:07.840 What are those countries meant to say? What are they 0:05:07.880 --> 0:05:08.360 meant to do? 0:05:10.839 --> 0:05:17.520 The countries understand that their trade policies were exploited, an 0:05:17.560 --> 0:05:19.200 exploitation of America. 0:05:19.400 --> 0:05:20.760 Everybody understands. 0:05:21.040 --> 0:05:24.560 One country actually said to me, I was amazed that 0:05:24.600 --> 0:05:25.480 we were able. 0:05:25.240 --> 0:05:27.920 To get away with it for this long. I mean, 0:05:27.960 --> 0:05:28.799 imagine that's. 0:05:30.040 --> 0:05:33.120 Because I never say this on the record. You've got 0:05:33.120 --> 0:05:35.800 the potential, the option, the ability right. 0:05:35.720 --> 0:05:37.359 Now to share. They're not going to say it on 0:05:37.440 --> 0:05:39.200 the who's saying that to you? 0:05:39.880 --> 0:05:41.560 Come on? Oh? Stop? 0:05:41.680 --> 0:05:44.920 I mean the country One country told us that they 0:05:45.040 --> 0:05:48.120 give the subsidy to the car companies. Another country admitted 0:05:48.200 --> 0:05:51.080 that they give their subsidy to their steel companies. I mean, 0:05:51.760 --> 0:05:54.039 they're not going to repeat it on here. What's on 0:05:54.279 --> 0:05:57.200 here is that this is going to change. That it's 0:05:57.320 --> 0:06:00.560 time for these things to change and going to be 0:06:00.600 --> 0:06:03.840 more fair, and America is going to do well. And 0:06:04.120 --> 0:06:07.720 in the middle of that time, all the factories are 0:06:07.760 --> 0:06:09.280 going to come back to America. You're going to see 0:06:09.279 --> 0:06:12.800 an enormous number of factories come back to America, or 0:06:12.920 --> 0:06:13.520 you're going to. 0:06:13.440 --> 0:06:15.960 See incredible change globally. 0:06:16.000 --> 0:06:18.760 It's going to take time, but the factories are going 0:06:18.800 --> 0:06:19.800 to be built in America. 0:06:19.880 --> 0:06:21.279 That's the most important thing. 0:06:21.560 --> 0:06:24.760 Donald Trump wants to see steel, an aluminum made. 0:06:24.560 --> 0:06:26.400 In America so we could defend ourselves. 0:06:26.520 --> 0:06:29.360 He's going to want to see pharmaceuticals made in America. 0:06:29.440 --> 0:06:33.400 Who on your audience doesn't want us to make the 0:06:33.560 --> 0:06:38.480 ingredients for pharmaceuticals Todaybody ever ask themselves why the ingredients 0:06:38.839 --> 0:06:42.440 for our drugs should be made in China? Why is 0:06:42.480 --> 0:06:46.039 that that's not cheap labor, that's factor, that's high tech 0:06:46.160 --> 0:06:51.640 factories in China. Why because their government helped create it. 0:06:51.960 --> 0:06:56.320 They created cheap goods there, they oversupply them, They drive 0:06:56.440 --> 0:06:59.800 the capitalist America who don't think like this out of business, 0:07:00.120 --> 0:07:02.520 and then they make it in China, and Donald Trump 0:07:02.560 --> 0:07:03.599 has said, I've. 0:07:03.440 --> 0:07:07.320 Had nothing, Secretary, most people are totally agree with you. 0:07:07.360 --> 0:07:10.760 They would totally agree with you because China is an adversary. 0:07:11.160 --> 0:07:14.200 It is not a partner for the United States. Europe 0:07:14.200 --> 0:07:17.120 would make a very different argument. And Europe might be 0:07:17.160 --> 0:07:19.240 wondering this morning why they're being thrown into the same 0:07:19.280 --> 0:07:24.480 buncket as the Chinese. What explanation can you give them? 0:07:24.840 --> 0:07:29.360 Europe does not treat our products fairly. They do not 0:07:29.560 --> 0:07:35.440 treat our companies fairly. They treat themselves incredibly well, to 0:07:35.560 --> 0:07:38.760 the detriment of the United States of America. Right, it 0:07:38.880 --> 0:07:42.000 is time for them to treat us fairly. And that 0:07:42.200 --> 0:07:44.880 is the point. This is not it's not free and 0:07:45.000 --> 0:07:48.440 fair trade. Their tariffs are higher, the non tariff trade 0:07:48.480 --> 0:07:52.600 barriers are incredible. Like I'd asked you, why don't they 0:07:52.640 --> 0:07:56.880 take our beef? Why don't they take our agricultural products? 0:07:57.280 --> 0:08:01.160 Why because they don't want them? Because they want to 0:08:01.200 --> 0:08:04.640 make the money themselves. Why is it okay for every 0:08:04.720 --> 0:08:06.440 other country to feel this way? 0:08:06.800 --> 0:08:09.080 And it's not okay for America. I tell you why. 0:08:09.240 --> 0:08:11.840 Because we were the world's piggybank. 0:08:12.280 --> 0:08:16.200 And Donald Trump has said our thirty six trillion dollar deficit, 0:08:16.440 --> 0:08:20.640 our one point two trillion dollar trade deficit one point 0:08:20.680 --> 0:08:22.080 two trillion dollars. 0:08:22.320 --> 0:08:23.240 We buy other. 0:08:23.040 --> 0:08:27.040 People's things more than we sell them ours. Is got 0:08:27.080 --> 0:08:32.440 to be rebalanced. It's a national emergency. Let's fix America 0:08:32.760 --> 0:08:33.880 and we can. 0:08:34.840 --> 0:08:37.680 Mister Secretary, for you, it's beef for the president. I 0:08:37.679 --> 0:08:40.160 know it's Ford and Berlin's, but there are products that 0:08:40.200 --> 0:08:44.640 Europe takes, things like LNG, things like Microsoft services. Do 0:08:44.720 --> 0:08:47.960 you want to see balance trade product by product? 0:08:50.520 --> 0:08:53.120 No, no, no, it's it's not product by product. It's 0:08:53.600 --> 0:08:56.040 it's a big macro issue. Okay. 0:08:56.559 --> 0:09:01.480 Fairness comes when one decides that they can stop. They 0:09:01.520 --> 0:09:04.000 can't get away with it any longer. So let's make 0:09:04.040 --> 0:09:06.600 a great deal with the United States of America. Okay, 0:09:06.480 --> 0:09:10.200 they've got core issues. They have a that tax of 0:09:10.320 --> 0:09:13.880 twenty percent or twenty Europe has twenty one percent. I mean, 0:09:13.920 --> 0:09:16.440 so when our goods are sold there, we paid twenty 0:09:16.480 --> 0:09:16.960 one percent. 0:09:17.040 --> 0:09:19.440 They say everybody pays that, and then they. 0:09:19.400 --> 0:09:23.280 Use that money to beat us down in other ways. 0:09:23.360 --> 0:09:26.199 I mean, come on, we need to have. 0:09:26.240 --> 0:09:30.600 Fair trade macro, not product by product. But I think 0:09:30.760 --> 0:09:34.400 the way Donald Trump looks at it is country by country, 0:09:34.880 --> 0:09:36.960 and what's going to happen is you're going to see 0:09:37.080 --> 0:09:38.800 domestic production grow. 0:09:39.480 --> 0:09:41.400 You're going to see interest rates come down. 0:09:41.600 --> 0:09:44.960 In America. You're going to see growth in America. Great 0:09:45.040 --> 0:09:48.800 jobs in America. Robotics he's going to come to America. 0:09:48.800 --> 0:09:52.480 It's going to replace cheap labor overseas. Robots can make things, 0:09:52.520 --> 0:09:55.079 you know what. The job there's going to be mechanics 0:09:55.360 --> 0:09:59.880 who fix robots, kind of like a high end BMW robot, 0:10:00.080 --> 0:10:01.800 so are going to need to be fixed and those 0:10:01.880 --> 0:10:04.400 jobs are going to be high paying jobs and they're 0:10:04.440 --> 0:10:05.280 going to be here. 0:10:05.679 --> 0:10:07.520 We're tired of them being overseas. 0:10:09.000 --> 0:10:11.760 For some countries, there's the ten percent base. That's the 0:10:11.800 --> 0:10:13.800 only levee that they were hit with yesterday. I'm think, 0:10:13.800 --> 0:10:16.160 give you United Kingdom and think of Australia. But those 0:10:16.200 --> 0:10:18.720 countries have a trade surplus with the United States. 0:10:19.040 --> 0:10:20.680 So why put the terrified. 0:10:22.520 --> 0:10:26.080 Well, I think the President understands that all of these countries, 0:10:26.120 --> 0:10:28.040 even if they have a trade surplus, if you dig 0:10:28.080 --> 0:10:31.160 into it, like for instance, the UK, they are trade 0:10:31.200 --> 0:10:35.000 surplus counts that they have this London Medals exchange. 0:10:34.760 --> 0:10:38.319 And so gold and silver bullion going in counts. I mean, 0:10:38.480 --> 0:10:40.200 come on, that doesn't really count. 0:10:40.440 --> 0:10:44.400 So and Australia, which is a wonderful partner of ours, 0:10:44.559 --> 0:10:46.720 they buy a lot of our planes, right, and if 0:10:46.760 --> 0:10:49.400 you buy our commodity gas, I mean, that's really what 0:10:49.480 --> 0:10:51.840 you need, not really what we need to sell you. 0:10:51.920 --> 0:10:52.720 It's not the same. 0:10:53.120 --> 0:10:57.040 So the President decided, why don't we have a baseline 0:10:57.040 --> 0:11:02.319 of ten percent to really understand that everybody needs our economy. 0:11:02.400 --> 0:11:05.120 Our economy is the magnet of the world. 0:11:05.480 --> 0:11:06.800 Everybody needs our economy. 0:11:06.880 --> 0:11:11.400 Let's them pay coming in and let's change that deficit 0:11:11.480 --> 0:11:15.040 of one point two trillion dollars and let's make America's 0:11:15.120 --> 0:11:16.599 economy grow. 0:11:16.600 --> 0:11:20.679 And let's balance that out. Let's fix that first, and. 0:11:20.679 --> 0:11:22.720 Then we'll go and readdress the rest of the world. 0:11:22.760 --> 0:11:25.240 But we need to fix our trade deficit one point 0:11:25.280 --> 0:11:26.800 two trillion dollars. 0:11:27.160 --> 0:11:28.920 It's unbelievable. 0:11:29.000 --> 0:11:31.640 Why we don't have those jobs and the rest of 0:11:31.640 --> 0:11:32.200 the world does. 0:11:33.440 --> 0:11:36.360 Treasury Secretary Scott Besson told me last night, this is 0:11:36.400 --> 0:11:39.439 a ceiling. Potentially we can see a different floor. Are 0:11:39.480 --> 0:11:43.480 you prepared to negotiate all of these rates? Is this 0:11:43.600 --> 0:11:45.199 truly the start of a negotiation? 0:11:47.960 --> 0:11:51.200 Well, it's the start of a rebalancing of the way 0:11:51.200 --> 0:11:55.360 the world works. I agree with the Secretary that our 0:11:55.520 --> 0:11:58.440 view is that the only way these rates are going 0:11:58.559 --> 0:12:02.040 up is if countries decide to retaliate. But why would 0:12:02.080 --> 0:12:05.920 you retaliate against your biggest client, your biggest clients is 0:12:05.960 --> 0:12:08.280 I want to reorder things. I mean, the United States 0:12:08.320 --> 0:12:11.160 of America is the largest client in the world. And yes, 0:12:11.280 --> 0:12:13.080 of course the countries are going to talk to us, 0:12:13.320 --> 0:12:16.560 but they talk too casually. They always talk about their 0:12:16.720 --> 0:12:19.400 tariff rates. I mean it's it's like they say, oh, 0:12:19.400 --> 0:12:20.640 I'm going to cut my tariff. 0:12:20.679 --> 0:12:22.640 Right. You think the reason we don't sell. 0:12:22.480 --> 0:12:25.520 A car is because Europe charges a ten percent tariff 0:12:25.520 --> 0:12:27.120 and we were only charging two and a half. 0:12:27.520 --> 0:12:30.719 That was outrageous. But the key is they have. 0:12:30.800 --> 0:12:34.679 All these rules, rules and rules and rules. Like one 0:12:34.720 --> 0:12:37.680 of my favorites is the Koreans. When we made a 0:12:37.720 --> 0:12:40.000 deal with them in twenty twelve, we took their cars, right, 0:12:40.080 --> 0:12:42.600 Kia and Hundai, and we were going to sell. 0:12:42.440 --> 0:12:44.640 Agricultural products to them, right. 0:12:44.679 --> 0:12:48.479 And when McDonald's went to send in French fries, they wouldn't. 0:12:48.120 --> 0:12:50.079 Let them go in because we couldn't. 0:12:49.760 --> 0:12:53.920 Prove the origin of the potato I mean, you don't 0:12:54.040 --> 0:12:57.760 understand the scale and depth of how they keep our 0:12:57.800 --> 0:13:01.720 products out. And Donald Trump is I've had enough. We 0:13:01.800 --> 0:13:04.440 are going to be treated better. America is going to 0:13:04.440 --> 0:13:07.120 be treated better, and that starts. 0:13:06.760 --> 0:13:10.000 Today, missus Sancrigary, Why exactly wasn't Russia on that list yesterday? 0:13:12.360 --> 0:13:18.920 Because we have sanctions against Russia, North Korea, Belarus, and Cuba, 0:13:19.360 --> 0:13:21.680 and so we're not supposed to be trading with them. 0:13:21.800 --> 0:13:22.760 Thanks for clearing that up. 0:13:22.800 --> 0:13:25.600 The additional question that other people had too about Mexico 0:13:25.640 --> 0:13:27.959 and Canada, they were also noticeably absent. 0:13:28.160 --> 0:13:33.160 Why would they absent, Well, they are operating under a 0:13:34.120 --> 0:13:37.439 rule that was set on for fentanyl right that they 0:13:37.440 --> 0:13:40.360 needed to close the border and stop fentanyl. And what 0:13:40.480 --> 0:13:46.080 that rule is that USMCA, right, the major trading is exempt, right, 0:13:46.240 --> 0:13:49.360 and the other products that they do have a twenty 0:13:49.360 --> 0:13:52.640 five percent tariff when that is resolved, So we're not 0:13:52.679 --> 0:13:53.800 going to double counted. 0:13:53.960 --> 0:13:55.680 That's just not the way it works. 0:13:56.160 --> 0:13:59.679 When that's resolved, they will fall into a model like this. 0:14:00.120 --> 0:14:04.040 But I think USMCA in the order, USMCA continues to 0:14:04.080 --> 0:14:08.040 be exempted, so car parts, for instance, are don't come 0:14:08.120 --> 0:14:11.280 with a tariff. If they end up being finished in 0:14:11.400 --> 0:14:14.720 American car. So if you're building your car in America 0:14:15.320 --> 0:14:18.560 and you're getting parts from Canada and Mexico, that's fine. 0:14:18.600 --> 0:14:21.480 The American cars still come with no. 0:14:21.600 --> 0:14:22.840 Tarr Okay, that's how full. 0:14:22.880 --> 0:14:24.760 The additional question we had on just a few numbers 0:14:24.760 --> 0:14:26.080 because we're all trying to make sense of this in 0:14:26.120 --> 0:14:28.800 real time, and you've got the numbers. What's the tariff 0:14:28.840 --> 0:14:31.680 on China? Now, the complete tariff including everything? What is 0:14:31.680 --> 0:14:32.120 that number? 0:14:32.120 --> 0:14:32.280 Now? 0:14:34.520 --> 0:14:37.720 Well, there was a twenty percent tariff because they continue 0:14:38.080 --> 0:14:42.120 to make the ingredients for fentanel and send them out right, 0:14:42.240 --> 0:14:47.680 and those ingredients have the highest subsidy rate in China, 0:14:48.000 --> 0:14:52.440 meaning the Chinese government is pay these factories to make 0:14:52.640 --> 0:14:58.720 these goods that the ingredients for fentanyl, which is killing Americans. Right, So, 0:14:59.080 --> 0:15:02.120 Donald Trump, twenty percent taff on that and now the 0:15:02.320 --> 0:15:07.360 regular trade deficit number, right, the analysis by the Council 0:15:07.400 --> 0:15:10.760 of Economic Advisors and the United States Trade Representative, we 0:15:10.880 --> 0:15:13.920 have a thirty four percent TAFT. So it's fifty four percent. 0:15:14.240 --> 0:15:17.520 But when they stop making the ingredients for fentanyl, and 0:15:17.560 --> 0:15:20.680 I want to point out in twenty nineteen, President she 0:15:21.120 --> 0:15:24.800 told President Trump that he would put the death penalty 0:15:24.840 --> 0:15:30.360 on anyone who made fentanyl, and now he's actually subsidizing them. 0:15:30.600 --> 0:15:34.600 And that's just it's just so so so. 0:15:35.120 --> 0:15:38.480 Wrong that Donald Trump is just he's not going to 0:15:38.520 --> 0:15:40.000 stand for it, and he's got to hit them with 0:15:40.000 --> 0:15:40.640 the only thing. 0:15:40.560 --> 0:15:43.640 You get, Secretary Lutnik, which is economy from China as well. 0:15:44.520 --> 0:15:45.440 On China as well. 0:15:45.480 --> 0:15:47.240 What about the three oh one terrors that were put 0:15:47.280 --> 0:15:49.400 in place under Trump one point zero and then carried 0:15:49.440 --> 0:15:52.120 on to the Biden administration, it's about twenty five percent. 0:15:52.400 --> 0:15:54.600 Are those still in place? Do they get added to 0:15:54.640 --> 0:15:55.760 this cumulative number? 0:15:57.720 --> 0:16:00.960 They do, indeed, but those are on specific product segments 0:16:01.400 --> 0:16:02.960 and those still are as well. 0:16:03.120 --> 0:16:05.880 Autos are not. So we're talking about seventy nine. 0:16:06.080 --> 0:16:10.160 So we're talking about seventy nine percent for some imports cumulative, 0:16:10.160 --> 0:16:13.360 we're talking about a seventy nine percent tariff from China. 0:16:13.400 --> 0:16:14.480 Is that accurate. 0:16:16.200 --> 0:16:19.400 On certain products? That could be true? Sure, But they've 0:16:19.400 --> 0:16:21.400 got to stop the U eight. All they have to 0:16:21.440 --> 0:16:24.040 have is a phone call. All they have to have 0:16:24.160 --> 0:16:27.040 is a phone call from President She to President Trump 0:16:27.080 --> 0:16:31.080 saying I'm going to end fentanyl production that's killing Americans, 0:16:31.360 --> 0:16:33.720 and it drops twenty percent. I mean, that's a pretty 0:16:33.760 --> 0:16:35.280 inexpensive phone call. 0:16:35.240 --> 0:16:36.600 But you have to make the decision. 0:16:36.600 --> 0:16:39.640 You got to stop killing Americans, and so far they 0:16:39.640 --> 0:16:40.720 haven't made that decision. 0:16:41.200 --> 0:16:43.840 Shocking, but they haven't made that decision. And you really 0:16:43.840 --> 0:16:45.960 got to think about that for a minute. Think about 0:16:45.960 --> 0:16:46.560 that for a minute. 0:16:46.640 --> 0:16:50.320 A phone call would save them twenty percent on all 0:16:50.400 --> 0:16:54.120 their products, but they'd have to stop making the ingredients 0:16:54.160 --> 0:16:57.880 of fentanyl, and they refuse outrageous. 0:16:57.440 --> 0:17:00.360 Has your counterpart reached out to set up that phone 0:17:00.360 --> 0:17:02.240 call between President Trump and Shujipeing? 0:17:04.760 --> 0:17:08.000 You know President Trump and President. 0:17:07.600 --> 0:17:10.800 She they have they're not going to be when their 0:17:10.960 --> 0:17:11.880 phone call gets made. 0:17:11.880 --> 0:17:13.720 I don't think they're asking me to set it up. 0:17:13.920 --> 0:17:15.000 I think that's above me. 0:17:15.320 --> 0:17:16.040 Missus Secretary. 0:17:16.040 --> 0:17:18.159 Does that tell you something about maybe the lenfor is 0:17:18.280 --> 0:17:21.200 you think you have perhaps you don't have over the Chinese, 0:17:21.280 --> 0:17:23.080 the fact that they aren't reaching down, they aren't doing 0:17:23.119 --> 0:17:25.680 those things, despite the fact you've put taras up as 0:17:25.720 --> 0:17:26.280 much as you have. 0:17:29.080 --> 0:17:29.680 Well we'll see. 0:17:29.720 --> 0:17:33.399 Remember these tariffs are just going into place, and you know, 0:17:33.720 --> 0:17:36.520 I think they will have that phone call and they 0:17:36.560 --> 0:17:39.800 will have lots of conversation together. I think for me, 0:17:40.720 --> 0:17:43.080 The greatest thing for me is that Donald Trump is 0:17:43.119 --> 0:17:46.320 sitting behind the resolute desk in the Oval Office, and 0:17:46.400 --> 0:17:48.760 he is the greatest deal maker, and he will decide 0:17:48.880 --> 0:17:50.040 how he wants. 0:17:49.760 --> 0:17:50.679 To play his hand. 0:17:51.040 --> 0:17:53.520 But the way he's played his hand now is he's 0:17:53.560 --> 0:17:56.040 been talking about this for thirty five years. He wants 0:17:56.119 --> 0:18:00.480 to reorder trade, to have the world stop exploding us, 0:18:00.480 --> 0:18:02.359 to bring the factories back, to. 0:18:02.280 --> 0:18:03.320 Bring employment back. 0:18:03.359 --> 0:18:05.760 You know, no one thought about when NAFTA, which he 0:18:05.880 --> 0:18:09.080 called yesterday the worst trade deal ever. When NAFTA did 0:18:09.119 --> 0:18:13.720 it gave Canada and Mexico sort of the economic right 0:18:13.840 --> 0:18:16.480 to be a state of the United States without paying 0:18:16.520 --> 0:18:19.960 federal tax and without respecting the Constitution. But you could 0:18:19.960 --> 0:18:23.400 build in Mexico and drive to Texas and build. 0:18:23.119 --> 0:18:25.000 In Canada, just drive across the border. 0:18:25.119 --> 0:18:29.760 Was all fine and no, you know, economically equal to 0:18:29.800 --> 0:18:31.800 being Alabama and Georgia. 0:18:31.960 --> 0:18:33.160 And so what happened is. 0:18:33.400 --> 0:18:37.360 Our manufacturing left America and put those Americans out of jobs. 0:18:37.640 --> 0:18:41.720 And Donald Trump wants to bring back factories, bring back 0:18:41.760 --> 0:18:45.480 those jobs, and they can come back. Five trillion dollars 0:18:45.560 --> 0:18:48.560 worth of commitments to bring back those jobs is pretty 0:18:49.040 --> 0:18:50.639 unbelievably impressive. 0:18:50.920 --> 0:18:52.440 And that's what Donald Trump's capable of. 0:18:52.800 --> 0:18:55.200 Also impressive is the sell of this morning and a 0:18:55.240 --> 0:18:57.600 big question the market's asking how much pain you're willing 0:18:57.640 --> 0:19:00.760 to tolerate. The SMP's down by three p seven percent. 0:19:01.080 --> 0:19:04.320 The dollar is being sold quite aggressively against the euro. 0:19:04.440 --> 0:19:06.560 Was saying one of the biggest moves we've seen in 0:19:06.600 --> 0:19:09.280 the last decade, mister secretary, how much pain are you 0:19:09.320 --> 0:19:11.920 willing to tolerate? How much market pain are you willing 0:19:11.920 --> 0:19:12.440 to tolerate? 0:19:15.040 --> 0:19:18.639 Donald Trump has focused on the economic pain that the 0:19:18.720 --> 0:19:22.760 United States of America has suffered over decades since NAFTA, 0:19:22.920 --> 0:19:29.080 ninety thousand factories, not jobs, factories, five million high paying 0:19:29.200 --> 0:19:34.520 jobs gone overseas. He's focused on the US worker and 0:19:34.560 --> 0:19:38.200 the US economy. And what's going to happen is people 0:19:38.240 --> 0:19:41.719 are going to realize it is the great American economy 0:19:41.800 --> 0:19:45.000 that is the winner here, and anyone who doubts it, 0:19:45.040 --> 0:19:48.320 and anybody who shorts Donald Trump or anybody who doubts 0:19:48.359 --> 0:19:51.479 the strength and the power of the American economy is 0:19:51.560 --> 0:19:53.119 making a foolish bet. 0:19:53.560 --> 0:19:55.680 Sure, importers are going. 0:19:55.520 --> 0:19:57.600 To have a tough time figuring out what to do, 0:19:57.840 --> 0:20:00.679 because they went and found the cheapest production in the world. 0:20:00.920 --> 0:20:04.000 It's time to bring that production home, to have the smart, 0:20:04.160 --> 0:20:07.760 amazing people who run American companies figure it out, bring 0:20:07.880 --> 0:20:11.399 robotics back to America. And I would say that United 0:20:11.480 --> 0:20:16.119 States domestic growth is going to have the greatest resurgence 0:20:16.400 --> 0:20:18.360 ever under Donald Trump. 0:20:18.119 --> 0:20:21.200 And that's what he has set in motion yesterday. 0:20:21.280 --> 0:20:24.480 You'll accept it takes time to engineer a supply side response, though, sir, 0:20:24.880 --> 0:20:27.680 and in the mad time you can see bad things happen. 0:20:27.800 --> 0:20:28.480