WEBVTT - Trump Threatens Canada with Tariffs Over Wildfires; Moonshot Roils Markets 0:00:00.080 --> 0:00:10.160 Bloomberg Audio Studios, Podcasts, Radio News. Welcome to the Bloomberg 0:00:10.240 --> 0:00:15.920 This Weekend Podcast with David Gura, Christina Raffini, and Elisa Matteo. 0:00:17.680 --> 0:00:20.560 Thanks for joining us for today's selection of conversations from 0:00:20.600 --> 0:00:20.959 the show. 0:00:21.200 --> 0:00:23.479 You can listen to our favorite discussions right here on 0:00:23.520 --> 0:00:25.800 the podcast, but also make sure to join us live 0:00:25.960 --> 0:00:29.000 every Saturday and Sunday morning, starting at seven am Eastern. 0:00:29.160 --> 0:00:32.760 We're on Bloomberg Television, Radio and the Bloomberg Business App, 0:00:33.040 --> 0:00:37.600 bringing you unique takes and in depth interviews on news, politics, 0:00:37.680 --> 0:00:39.120 lifestyle and culture. 0:00:41.240 --> 0:00:44.360 This morning, Aron says the United States struck a desalination 0:00:44.440 --> 0:00:47.000 plant in the southern part of the country, leaving twenty 0:00:47.080 --> 0:00:50.400 villages without water. As Alexis mentioned, the intensification comes on 0:00:50.440 --> 0:00:51.680 the seventh night of attacks. 0:00:51.800 --> 0:00:53.800 Bridges and tunnels also targeted. 0:00:54.120 --> 0:00:56.680 Bloomberg White House correspondent Josh wein Grove is in New 0:00:56.760 --> 0:00:59.760 Jersey where the President is waking up this morning. Josh, 0:01:00.440 --> 0:01:02.840 where is the President's head on all this? What have 0:01:02.880 --> 0:01:05.240 you heard from White House officials? Is there a plan 0:01:05.440 --> 0:01:08.959 or is this the new normal for the foreseeable future? 0:01:10.640 --> 0:01:13.840 Well, they're keeping ambiguous. You know, there's some reporting that 0:01:13.920 --> 0:01:18.440 he's considering ramping up options axios, for instance, reporting that 0:01:19.160 --> 0:01:22.720 they've moved tankers air tankers back into the region to 0:01:22.760 --> 0:01:26.120 prepare for a potential escalation of bear strikes. So he 0:01:26.160 --> 0:01:28.560 seems to be keeping options on the table. But where 0:01:28.680 --> 0:01:30.560 we'll see that go, we don't know. As you know, 0:01:30.680 --> 0:01:33.040 we've always been on guard on weekends in particular, it 0:01:33.040 --> 0:01:36.440 seems like that's really when the American attacks seem to 0:01:36.520 --> 0:01:39.240 peek up. So you know, we'll see if we see 0:01:39.240 --> 0:01:41.360 something later today, it's too soon to say. I think, 0:01:41.360 --> 0:01:45.240 more broadly, as we've discussed before, the President sort of 0:01:45.280 --> 0:01:49.640 has been deemphasizing this in his remarks and kind of appears, frankly, 0:01:50.280 --> 0:01:52.800 you know, focus on other things right now. And we've 0:01:52.840 --> 0:01:54.640 seen this before of course with Ukraine as well. He's 0:01:54.640 --> 0:01:56.480 sort of got bored of talking about that and has 0:01:56.600 --> 0:01:59.280 has focused on other things. And so right now, we 0:01:59.360 --> 0:02:02.080 just continue to watching this day by day, and there's 0:02:02.120 --> 0:02:04.680 no kind of end in sight, and it's unclear when, 0:02:05.000 --> 0:02:09.600 if at all, talks may presume, or talks for talks 0:02:09.720 --> 0:02:12.240 may resume. We just start continuing to watch it bit 0:02:12.320 --> 0:02:12.560 by bit. 0:02:13.000 --> 0:02:13.919 I'm thinking about the talks. 0:02:13.919 --> 0:02:16.840 That's talking about the talks under the category of other 0:02:16.880 --> 0:02:19.200 things the President is watching or cares about. There is 0:02:19.240 --> 0:02:24.600 the run Darlene run matter, his embrace of Lindsay Graham's sister, 0:02:24.680 --> 0:02:27.160 now the interim senator from the state of South Carolina. 0:02:27.240 --> 0:02:29.560 The President and a post on truth social encouraging her 0:02:29.600 --> 0:02:32.160 to put her hat in the ring for the primary 0:02:32.160 --> 0:02:33.280 to get the seat permanently. 0:02:34.000 --> 0:02:34.720 What do you make of this? 0:02:34.760 --> 0:02:36.880 I confess I didn't know much about Lindsay Graham's sister 0:02:36.880 --> 0:02:38.919 before she was elevated to this position. But the President 0:02:38.960 --> 0:02:42.720 emphasizing his long relationship with her, his confidence in her. 0:02:43.080 --> 0:02:45.160 How is the President looking at her prospects and the 0:02:45.200 --> 0:02:46.960 importance of this race in particular. 0:02:46.639 --> 0:02:52.120 Josh President likes loyalty in senators, and in her speech 0:02:52.200 --> 0:02:54.640 when she became the senator, she talked about the importance 0:02:54.639 --> 0:02:59.800 of upholding his agenda. So if she's a trusted ally, 0:03:00.040 --> 0:03:02.200 perhaps not the surprise of the President, who is of 0:03:02.200 --> 0:03:06.360 course primaried or supported the primaries against a couple members 0:03:06.360 --> 0:03:10.200 of this current Senate conference, would value that. And so 0:03:11.000 --> 0:03:13.040 if he's with his endorsement, I think he is sort 0:03:13.040 --> 0:03:18.240 of taking a burden hand approach with taking backing her 0:03:18.320 --> 0:03:21.960 and his endorsements have, of course, been very influentially, if 0:03:22.000 --> 0:03:25.640 not decisive, across you know, basically every state over the 0:03:25.680 --> 0:03:27.720 course of this cycle. And I think that's important to 0:03:27.720 --> 0:03:30.399 remember it too, because you know, in other countries, maybe 0:03:30.440 --> 0:03:33.840 ones that are having trade tensions or whatnot, you're starting 0:03:33.840 --> 0:03:36.880 to see people talk look over the horizon, right, Oh, well, 0:03:37.360 --> 0:03:39.480 you know, Trump will be gone in two and a 0:03:39.520 --> 0:03:42.600 half years and weather the storm until then, and this 0:03:42.680 --> 0:03:45.800 and that, and maybe the Republican Party will shift. President 0:03:45.840 --> 0:03:48.480 Trump will continue to have a very very strong influence 0:03:48.480 --> 0:03:50.920 over the party, over its primaries, over the actions its 0:03:51.000 --> 0:03:54.920 leaders take, whether he's president or not, for quite some time. 0:03:54.960 --> 0:03:56.440 And so I think we're seeing that with this. And 0:03:56.440 --> 0:03:59.760 there's some reporting that other major candidates are now sort 0:03:59.800 --> 0:04:03.040 of considering or still considering, whether they will jump into 0:04:03.040 --> 0:04:05.360 the race, because running against the Trump endors candidate would 0:04:05.360 --> 0:04:07.120 be a significantly uphill battle. 0:04:07.960 --> 0:04:11.080 Josh, since you are our senior Canadian correspondent, I do 0:04:11.160 --> 0:04:12.000 want to go back. 0:04:11.840 --> 0:04:13.720 To sorry, sorry about them. 0:04:14.720 --> 0:04:15.400 Of course, of. 0:04:15.360 --> 0:04:16.919 Course you just did that. 0:04:18.080 --> 0:04:24.279 No, no, no, are you you know, even though I'm 0:04:24.360 --> 0:04:27.120 still upset that David went to Aspen without me, he 0:04:27.200 --> 0:04:29.320 did talk to James and grew there talking about. 0:04:29.120 --> 0:04:29.920 The trade policies. 0:04:29.920 --> 0:04:31.600 In the last hour, we were talking about kind of 0:04:31.640 --> 0:04:34.520 the incrementalism of having to negotiate one on one with 0:04:34.560 --> 0:04:36.080 all these countries the way they're trying to do this 0:04:36.120 --> 0:04:38.719 next round of tariffs. And the President is now threatening 0:04:38.760 --> 0:04:42.279 new tariffs on Canada because of the wildfires. He posted 0:04:42.600 --> 0:04:45.839 Canada has refused to engage in basic forge management and 0:04:45.880 --> 0:04:48.720 debris removal. Sounds familiar to what he said with California 0:04:48.800 --> 0:04:51.480 last year, knowing that such refusal will lead to exactly 0:04:51.520 --> 0:04:54.480 this result. This is willful negligence that's capitalized and becoming 0:04:54.480 --> 0:04:57.080 a yearly occurrence cost the United States billions of dollars. 0:04:57.279 --> 0:05:00.000 Which cost of this pollution must of necessity be added 0:05:00.120 --> 0:05:02.640 to the tariffs Canada is currently paying. 0:05:03.520 --> 0:05:05.880 Does a complicated clause by the way, Yes. 0:05:05.760 --> 0:05:07.159 That's not easy to read. 0:05:07.240 --> 0:05:09.080 That's my second time, and I did no better this 0:05:09.160 --> 0:05:09.760 second time. 0:05:10.360 --> 0:05:11.440 Josh, what is going on here? 0:05:11.480 --> 0:05:14.080 Does the President really need another foreign policy fight, especially 0:05:14.080 --> 0:05:17.719 one that could impact how much Americans pay for things, 0:05:17.760 --> 0:05:20.920 including cars and other items that come across the border. 0:05:22.400 --> 0:05:26.360 I mean the notion of Canada, you know, vacuuming the 0:05:26.400 --> 0:05:29.040 floor of its boreal forest or whatever. I mean obviously, 0:05:29.240 --> 0:05:32.599 like that's always that much you can do to take 0:05:32.600 --> 0:05:38.239 this seriously though, I mean a Canadian national died sighting 0:05:38.279 --> 0:05:41.440 a forest fire this month in Colorado. Is long standing 0:05:41.480 --> 0:05:46.400 cooperation between these two countries. In the those infamous California fires, 0:05:46.400 --> 0:05:49.560 it was Canadian water bombers. You saw some of the stuff. 0:05:49.640 --> 0:05:51.760 Trump says, it sort of goes off the back of 0:05:51.800 --> 0:05:56.159 Canada and Canadians other stuff they find particularly insulting. And 0:05:56.200 --> 0:05:59.040 I think this risks being in that second bucket because 0:05:59.040 --> 0:06:02.240 the country has been so much time helping America fight 0:06:02.279 --> 0:06:06.080 its forest fires that you know, the notion that this 0:06:06.120 --> 0:06:08.320 is sort of like their fault. No one wants to 0:06:08.320 --> 0:06:11.320 smoke over it. It's over Canada too, of course, is 0:06:11.400 --> 0:06:14.520 I think going to prompt and blowback. Frankly is already 0:06:14.560 --> 0:06:16.960 prompting blowback from Canadian officials. And so whether we see 0:06:16.960 --> 0:06:19.400 this factor into these negotiations or whatever is unclear. Just 0:06:19.440 --> 0:06:23.240 to remember where we are on this, much most of 0:06:23.279 --> 0:06:25.920 the trade between Canada and US right now is terror 0:06:25.960 --> 0:06:29.480 free because it's exempted under KUSMA, or as the Canadians 0:06:29.480 --> 0:06:32.240 call it in USMC after the Americans call it. And 0:06:32.320 --> 0:06:34.880 so Trump could adjust that exemption. That's a big fear 0:06:34.920 --> 0:06:38.040 of industries in the US and in Canada. He could 0:06:38.080 --> 0:06:41.520 raise the baseline tariff through these three oh one investigations, 0:06:41.520 --> 0:06:43.080 one of which is done, one of which is still 0:06:43.800 --> 0:06:46.200 in the hopper, or you could try to adjust the 0:06:46.279 --> 0:06:49.640 sectoral tariffs to crank up tariffs on autos or steel, 0:06:49.720 --> 0:06:51.320 which are the two ones that are biting the Canadian 0:06:51.320 --> 0:06:54.280 economy in particular. So he does have avenues here if 0:06:54.279 --> 0:06:56.160 he wants. But it's also true that Canada has one 0:06:56.200 --> 0:06:58.640 of the lowest effective terraf rates in the world right 0:06:58.680 --> 0:07:00.720 now when it comes to accessing the US market, and 0:07:00.800 --> 0:07:03.080 so if the price of that is looking the other 0:07:03.120 --> 0:07:05.040 way when the President gives upset every now and then, 0:07:05.800 --> 0:07:06.400 maybe that's. 0:07:06.240 --> 0:07:10.040 What the Cheenians are going to do. Kusma kusma is 0:07:10.040 --> 0:07:15.400 what they call it. Did use usmc A, I. 0:07:15.360 --> 0:07:20.000 Bet I bet he did. Yeah, I'm mad you did. 0:07:20.000 --> 0:07:21.320 But you made a lot of news in that interview, 0:07:21.560 --> 0:07:22.520 complicated my evenings. 0:07:22.560 --> 0:07:23.400 I'm sorry for that. 0:07:23.480 --> 0:07:24.200 We're all mad at him. 0:07:24.200 --> 0:07:28.480 Well, well, these Canadians and Americans are getting along well, 0:07:28.520 --> 0:07:31.120 and all right, our bitterness about your ospin trip. 0:07:30.960 --> 0:07:33.720 Thanks grow At the beginning of cool duty in New Jersey, 0:07:33.720 --> 0:07:34.760 Thank you very much for the time. 0:07:35.160 --> 0:07:37.880 All right, the announcement of a powerful new AI model 0:07:37.920 --> 0:07:40.320 from Chinese startup Moonshot Royal Markets. 0:07:40.320 --> 0:07:44.600 On Friday, Textok specifically semiconductors finished lower over concerns at 0:07:44.600 --> 0:07:47.760 the US maybe losing ground in the global AI race. 0:07:47.960 --> 0:07:50.400 Earlier today, we spoke with Bloomberg's Mike Shephard and mindm 0:07:50.400 --> 0:07:53.840 in Low about China's push to become the new AI leader. 0:07:54.560 --> 0:07:57.920 It's definitely an important priority for the Chinese government. In fact, 0:07:57.920 --> 0:08:01.200 they are grooming this entire AI sector as the next 0:08:01.280 --> 0:08:05.960 big export engine for China as the country transitions away 0:08:06.040 --> 0:08:10.120 from older industries like property, which is really in a 0:08:10.160 --> 0:08:13.120 big slum for several years now. So they're pouring a 0:08:13.120 --> 0:08:17.320 lot of investments to provide the patient capital to groom 0:08:17.400 --> 0:08:19.800 all these startups in this sector. And it's all part 0:08:19.840 --> 0:08:22.080 of the five year plan that China had laid out 0:08:22.200 --> 0:08:24.600 early this year, right in March at the two sessions. 0:08:24.640 --> 0:08:26.760 They have an AI plus plan where they want to 0:08:26.880 --> 0:08:30.440 encourage adoption of AI across all sectors of the economy 0:08:30.440 --> 0:08:33.400 over the next decade or so. And just to give 0:08:33.440 --> 0:08:36.320 you a sense of how important AI is, this World 0:08:36.400 --> 0:08:39.840 AI Conference in Shanghai is in the ninth edition. And 0:08:39.920 --> 0:08:43.280 I remember in the early years not many journalists would 0:08:43.280 --> 0:08:46.280 even bother attending, but now it's a completely different story. 0:08:46.480 --> 0:08:49.920 Even President c himself came to Town to graze the 0:08:49.960 --> 0:08:53.280 event personally, and this really represents an upgrade to the 0:08:53.320 --> 0:08:56.320 status of this event which in previous in the last 0:08:56.320 --> 0:08:59.079 two years, it was attended by Premier Lee Lee Town, 0:08:59.120 --> 0:09:01.839 who is the number two leader in China, and Presidency 0:09:01.880 --> 0:09:04.400 gave this big speech this year. A lot of it 0:09:04.559 --> 0:09:07.120 was of course also a veiled message to the US 0:09:07.160 --> 0:09:09.360 as well, because he talked about how when it comes 0:09:09.400 --> 0:09:11.959 to AI governance, the world needs to take a multi 0:09:11.960 --> 0:09:15.280 electoral approach. The world needs to learn from one another, 0:09:15.360 --> 0:09:19.480 and AI development shouldn't be a solo development of one country. 0:09:19.520 --> 0:09:21.640 And all over Chinese state media, you look at the 0:09:21.640 --> 0:09:24.800 Communist Party mouthpiece People's Daily, they have been publishing editorials 0:09:24.800 --> 0:09:28.079 about how tech and AI should not become a monopoly, 0:09:28.760 --> 0:09:31.720 it should really be treated as a global public good 0:09:31.760 --> 0:09:33.280 that is shared with the rest of the world. So 0:09:33.360 --> 0:09:37.199 again Presidency positioning himself as this leader of the global South, 0:09:37.720 --> 0:09:41.320 advocating for bridging the digital divide. So he announced a 0:09:41.400 --> 0:09:45.160 few key initiatives including offering at least five thousand training 0:09:45.200 --> 0:09:48.560 opportunities in AI for people in the developed countries and 0:09:48.600 --> 0:09:51.800 allowing them some thirty countries to tap into this AI 0:09:51.840 --> 0:09:56.320 powered meteorological system to safeguard their homes for example. So really, 0:09:56.559 --> 0:09:59.000 and also yes, a couple of days ago there were 0:09:59.040 --> 0:10:01.960 some twenty nine was signed up to be part of 0:10:01.960 --> 0:10:05.760 this China led group called the Wollai Cooperation Organization, and 0:10:05.800 --> 0:10:09.560 it's just yet another platform that could give China more 0:10:09.600 --> 0:10:12.040 sway in shaping global AI norms. 0:10:12.440 --> 0:10:14.559 Mike, how does this impact American companies? 0:10:14.600 --> 0:10:16.400 I mean, obviously they're already down the road with a 0:10:16.400 --> 0:10:19.360 lot of these investments. Is there they can't claw them 0:10:19.400 --> 0:10:21.120 back at this point, but they have to be looking 0:10:21.160 --> 0:10:22.640 at this and being very concerned. 0:10:22.679 --> 0:10:24.000 Is there a way for them to pivot? 0:10:24.000 --> 0:10:26.120 And then you also have the Trump administration starting to 0:10:26.160 --> 0:10:30.600 talk about having a new regulatory agency specifically for AA. 0:10:30.640 --> 0:10:34.240 Does that compound the difficulties American AI companies could now face. 0:10:35.280 --> 0:10:38.880 Well, take the second part first, there, Christina, because it's 0:10:39.280 --> 0:10:41.920 the latest and there was a scoop from last night 0:10:41.960 --> 0:10:45.680 from our team here in DC, and the companies actually 0:10:46.040 --> 0:10:50.040 would welcome some sort of a coherent approach to AI 0:10:50.160 --> 0:10:53.600 safety reviews, and at issue is, you know, they did 0:10:53.600 --> 0:10:57.199 not like the way that Anthropics fable five and with 0:10:57.320 --> 0:11:01.840 those five were essentially ordered off THET via export controls 0:11:01.960 --> 0:11:04.760 over concerns that the guardrails on. 0:11:04.760 --> 0:11:05.920 Them weren't adequate. 0:11:05.920 --> 0:11:07.920 And we saw the same sort of pressure put on 0:11:08.040 --> 0:11:10.880 Open AI. But the companies had felt that it was 0:11:11.480 --> 0:11:14.280 overboard and also kind of ad hoc in the approach, 0:11:14.280 --> 0:11:17.000 and they would like to see a more coherent framework. 0:11:17.040 --> 0:11:21.840 And what's taking shape is a Finroom like model, one 0:11:21.880 --> 0:11:25.480 that would resemble what the broker dealer industry on Wall 0:11:25.480 --> 0:11:31.280 Street face is that it's an industry funded and not 0:11:31.400 --> 0:11:34.559 industry run, but industry certainly has a lot of input 0:11:34.760 --> 0:11:37.200 to how the rules of the road are set, and 0:11:37.240 --> 0:11:40.360 in this case it would be the safety testing, and that. 0:11:40.360 --> 0:11:43.520 Would give them a little bit more of, I guess, 0:11:43.600 --> 0:11:46.839 a clear path forward when it comes to dealing with 0:11:46.880 --> 0:11:50.280 the government, how far they can take their models as 0:11:50.360 --> 0:11:54.240 they develop them. More broadly, though, the question of how 0:11:54.360 --> 0:11:57.320 companies are reading this moment, look, many of them are 0:11:57.320 --> 0:12:00.240 playing the long game, and all this week we heard 0:12:00.240 --> 0:12:04.600 from TSMC they were reporting, look, we are seeing demand 0:12:04.720 --> 0:12:09.319 for AI chips and ar hardware going through twenty thirty, 0:12:10.000 --> 0:12:11.440 it is going to be hard to meet. And that 0:12:11.520 --> 0:12:14.719 is a message that was echoed by sk Heinez during 0:12:14.880 --> 0:12:20.079 Ed Ludlow's interview with the CEO just last just a 0:12:20.160 --> 0:12:22.840 little more than a week ago, as they were making 0:12:22.880 --> 0:12:26.160 their public market debut here in the US. And then 0:12:26.160 --> 0:12:29.480 it's a message that's been reinforced by Nvidia Chief executive 0:12:29.559 --> 0:12:33.280 Officer Jensen Wong. They just see the demand from hyperscalers 0:12:33.320 --> 0:12:36.120 here in the US and even elsewhere as being off 0:12:36.160 --> 0:12:39.240 the charts. And Vidia also caught a bit of a break, 0:12:39.240 --> 0:12:42.440 and some of the other American companies caught a break 0:12:42.440 --> 0:12:48.000 too with the declassification of the United Arab Emirates, which 0:12:48.040 --> 0:12:51.520 is trying to establish itself as a real center of 0:12:51.600 --> 0:12:54.079 development for AI and they see that as a new 0:12:54.160 --> 0:12:57.000 market that they can break into and try to export 0:12:57.040 --> 0:12:59.880 the American tech stack. But really, do you see this 0:13:00.040 --> 0:13:03.600 contrasted vision so Xhijinping laying out something that is very 0:13:04.320 --> 0:13:07.920 multilateral and President Donald Trump arguing one that is very 0:13:08.000 --> 0:13:11.400 much America first, and it really doesn't have all the 0:13:11.440 --> 0:13:14.280 pieces together in the same way that you do see 0:13:14.360 --> 0:13:15.960 China putting on the table. 0:13:16.040 --> 0:13:16.240 Now. 0:13:17.200 --> 0:13:19.120 I'm just looking at that sell off you saw in video. 0:13:19.200 --> 0:13:21.920 Lose a lot of ground yesterday and Apple gaining a 0:13:21.960 --> 0:13:24.439 lot of ground. These two companies with huge market caps 0:13:24.480 --> 0:13:27.559 really vying for top spot there in the middle of 0:13:27.559 --> 0:13:29.400 are Yeah. Goodh Rning's coming up here, So we'll see 0:13:29.400 --> 0:13:30.040 what happens. 0:13:29.760 --> 0:13:30.480 Here in the weeks ahead. 0:13:32.559 --> 0:13:35.559 Stay with us for more on Bloomberg this weekend. Right 0:13:35.600 --> 0:13:48.200 after this, all right, A. 0:13:48.240 --> 0:13:51.240 Russia sanctions bill to honor the late Senator Lindsay Graham 0:13:51.240 --> 0:13:53.599 now has eighty four co sponsors. It was one of 0:13:53.640 --> 0:13:56.559 Graham's last efforts to find a compromise aimed at trying 0:13:56.600 --> 0:13:59.720 to help end the war in Ukraine, imposing more tariffs 0:13:59.760 --> 0:14:02.560 on injuries that buy Russian oil and gas, and widening 0:14:02.640 --> 0:14:03.800 those mandatory sanctions. 0:14:03.960 --> 0:14:06.640 President Trump appears to be on board with that legislation. 0:14:07.040 --> 0:14:09.600 Seriously, this is in honor of Lindsey. 0:14:10.440 --> 0:14:11.600 This was his thing. 0:14:11.640 --> 0:14:13.960 He wanted this more than any other thing, you know, 0:14:14.160 --> 0:14:16.960 you know how he fell, And there's a good chance 0:14:17.000 --> 0:14:17.760 that he gets done. 0:14:18.800 --> 0:14:21.240 I talked about this with US Trade Representative Jameison Greer 0:14:21.440 --> 0:14:23.640 at the ASK and Security Forum earlier this week. 0:14:24.200 --> 0:14:26.000 There are a lot of elements to this bill. There's 0:14:26.040 --> 0:14:28.840 a teriff element, there's a sanctions element, all of which 0:14:28.880 --> 0:14:33.960 are designed to give the President discretion to deploy pressure 0:14:34.080 --> 0:14:37.440 on Russia and those who are supporting Russia. So we've 0:14:37.440 --> 0:14:39.760 worked very constructively with the Senate on this. There are 0:14:39.760 --> 0:14:41.120 a lot of good things to be said about it. 0:14:41.160 --> 0:14:43.040 I just spoke with the President about it as well, 0:14:43.360 --> 0:14:45.600 so I think there's an openness there. I think we'll 0:14:45.640 --> 0:14:48.000 see within the next couple of days, you know, final 0:14:48.080 --> 0:14:51.120 views from the President on whether he wants to be supportive. 0:14:51.200 --> 0:14:53.520 I think that we have it in a pretty good place. 0:14:54.200 --> 0:14:56.400 I think it's meaningful that this is something that Senator 0:14:56.440 --> 0:14:59.040 Graham and I and Senator Blumenthal and others were working 0:14:59.080 --> 0:15:02.720 on up until his last days, and that's meaningful as well. 0:15:02.760 --> 0:15:04.840 It would give the present the latitude to impose tariff 0:15:04.840 --> 0:15:06.600 of up to one hundred percent, as I understand it, 0:15:07.080 --> 0:15:10.160 on the largest imports of Russian oil. Any indication from 0:15:10.240 --> 0:15:12.600 him if he's prepared to do that, should this be pasted. 0:15:12.360 --> 0:15:15.160 Well, I mean, I think you know, when I talk 0:15:15.240 --> 0:15:18.040 to the President about this kind of issue, he wants 0:15:18.120 --> 0:15:20.200 to be careful about the way he deploys this kind 0:15:20.200 --> 0:15:25.720 of leverage. Geopolitics are very fragile, and this is something 0:15:25.720 --> 0:15:28.600 whether it's a terrif action or sanctions action or anything, 0:15:28.880 --> 0:15:31.000 it's something that the present thinks about very carefully. He 0:15:31.080 --> 0:15:33.040 certainly talks to me, He talks to Secretary Best and 0:15:33.080 --> 0:15:36.040 Secretary Rubio, Secretary Lonik, he talks to everybody. He talks 0:15:36.040 --> 0:15:38.440 to people outside the government wants to He wants to 0:15:38.520 --> 0:15:41.920 hit the right spot of putting pressure on countries and 0:15:41.920 --> 0:15:46.280 putting pressure on Russia without creating more conflict or reducing 0:15:46.320 --> 0:15:47.640 the likelihood of a peace deal. 0:15:48.440 --> 0:15:50.320 The Section one twenty two tariff's set to expire in 0:15:50.360 --> 0:15:52.880 just a couple of days, really few days from now 0:15:53.120 --> 0:15:55.600 July twenty fourth, all but certain that the three one 0:15:55.640 --> 0:15:57.240 tariffs will in effect after that, or we looking at 0:15:57.280 --> 0:15:59.080 perhaps a lapse kind of in coverage. 0:16:00.400 --> 0:16:03.680 Is the Section three oh one investigations I'm doing, where 0:16:03.680 --> 0:16:07.520 we've proposed some tariffs, they're on their own track. We're 0:16:07.560 --> 0:16:10.840 moving quickly, deliberately because we want to resolve the unfair 0:16:10.880 --> 0:16:14.320 trading practices that we're targeting with these investigations. So we're 0:16:14.320 --> 0:16:15.680 going to do them as soon as we can to 0:16:15.680 --> 0:16:18.440 get at these practices. You know, whether they're you know 0:16:18.760 --> 0:16:21.480 day before, a day of day after. That's less important 0:16:21.520 --> 0:16:23.720 to us than making sure we're addressing these unfair trading 0:16:23.720 --> 0:16:25.960 practices and getting the leverage in place we need to resolve. 0:16:26.160 --> 0:16:27.560 Do you have a timetable for one, you're going to 0:16:27.560 --> 0:16:29.960 bring that report to the President when you might see 0:16:29.960 --> 0:16:30.440 them enacted? 0:16:30.680 --> 0:16:32.680 Well, well, we have a couple right, So we have 0:16:32.720 --> 0:16:35.240 a section three oh one on forced labor, targeting countries 0:16:35.240 --> 0:16:37.400 who don't ban the import of forced labor goods. We 0:16:37.480 --> 0:16:39.960 do in America, other countries don't. Some have a law, 0:16:40.120 --> 0:16:42.400 but they don't necessarily enforce it. So we already have 0:16:42.480 --> 0:16:44.760 our report out on that, and so we can take 0:16:44.800 --> 0:16:47.640 action I think fairly quickly on that within the next 0:16:47.640 --> 0:16:51.720 few weeks. We have another investigations targeting a more compact 0:16:51.720 --> 0:16:54.840 group of countries on structural xcess capacity. These are countries 0:16:54.880 --> 0:16:57.400 who have a typically have a big trade deficit with 0:16:57.480 --> 0:17:00.680 the world, or a big sorry big tree surplus with 0:17:00.720 --> 0:17:02.640 the world, or a big trade surplus with US. Or 0:17:02.960 --> 0:17:05.800 even if they don't, they may have practices that generate 0:17:06.480 --> 0:17:09.560 factories or production that are totally out of whack with 0:17:09.600 --> 0:17:14.040 global demand. So this is a quite intense project. I 0:17:14.080 --> 0:17:17.879 have dozens and dozens of attorneys and policy makers working 0:17:17.880 --> 0:17:21.880 on this to really examine all of these practices. So 0:17:21.920 --> 0:17:24.160 it takes a little longer time than doing this forced 0:17:24.200 --> 0:17:26.880 labor one, which is a little bit of a binary 0:17:26.920 --> 0:17:28.800 where you're looking at what do they have in place 0:17:28.840 --> 0:17:30.720 and are they enforcing it? This is more complex. 0:17:30.760 --> 0:17:32.920 Does that explain the delay entirely or how long it's 0:17:32.960 --> 0:17:35.680 taking or there's been reports that maybe China, that China 0:17:35.720 --> 0:17:37.679 issue is complicating it more than it is with the others. 0:17:38.000 --> 0:17:40.280 No, No, I don't think that's the case at all, right, 0:17:40.280 --> 0:17:43.480 I mean, China is included in this structural Excess Capacity 0:17:43.560 --> 0:17:46.000 Section three oh one. The reality is it's a more 0:17:46.040 --> 0:17:49.439 complex investigation and we have to make sure that we 0:17:49.480 --> 0:17:53.040 are hitting our milestones. We've received a lot of comments 0:17:53.040 --> 0:17:55.320 from the public. We have to analyze those, we have 0:17:55.359 --> 0:17:58.480 to incorporate them into any responsive action we might take. 0:17:58.720 --> 0:18:00.959 So we're trying to make sure that we're we're actually 0:18:00.960 --> 0:18:03.399 living up to the letter of the law and the 0:18:03.400 --> 0:18:04.919 spirit of the law. We want to make sure that 0:18:04.920 --> 0:18:08.840 we're targeting these these unfair trading practices that have led 0:18:08.880 --> 0:18:13.879 to frankly offshoring in the US and an inability to 0:18:13.960 --> 0:18:16.440 build new factories at times when you have other countries 0:18:16.480 --> 0:18:20.399 that are building factories or they're depressing demand in their 0:18:20.440 --> 0:18:23.800 own country. This is not how market economics are supposed 0:18:23.800 --> 0:18:26.520 to work. And it creates a situation where there's not 0:18:26.720 --> 0:18:28.960 enough incentive to build a new factory in America or 0:18:29.000 --> 0:18:32.760 to employ American workers because we have overcapacity elsewhere. So 0:18:32.800 --> 0:18:36.320 we want to make sure that that capacity is restrained, restricted, 0:18:36.440 --> 0:18:38.920 or that we mitigate it somehow in our own economy 0:18:39.000 --> 0:18:41.639 so we can have market incentives to build here and 0:18:41.680 --> 0:18:42.240 to make here. 0:18:42.400 --> 0:18:43.680 I want to ask you about rare earth's and I 0:18:43.720 --> 0:18:45.800 wonder how you would assess China's performance when it comes 0:18:45.840 --> 0:18:48.560 to rare earths And as we get close through October, 0:18:48.640 --> 0:18:51.200 do you anticipate that agreement will be renewed in due course? 0:18:51.600 --> 0:18:55.960 So China's compliance with the rare earth elements of our agreements, 0:18:56.680 --> 0:18:59.679 it's not perfect. I think everyone knows that. You can 0:18:59.720 --> 0:19:02.480 read that in the paper that being said, we are 0:19:02.480 --> 0:19:04.880 getting a flow of rare earth. We don't have factories 0:19:04.880 --> 0:19:07.320 shutting down because they don't have it. But again, we 0:19:07.359 --> 0:19:09.320 really want to be in a position where we were, 0:19:09.800 --> 0:19:12.720 you know, in twenty twenty four and twenty twenty three 0:19:12.720 --> 0:19:15.119 in President Trump's first term, where we had a regular 0:19:15.160 --> 0:19:17.600 flow of rare earths. We also know that the Chinese 0:19:18.119 --> 0:19:20.760 they use rare earth for economic coercion. They did it 0:19:20.760 --> 0:19:22.800 in twenty ten and twenty eleven, they're doing it now, 0:19:22.920 --> 0:19:27.080 so it's not necessarily surprising. But we're continuing to, you know, 0:19:27.119 --> 0:19:29.680 to have some flow and where we have gaps, where 0:19:29.680 --> 0:19:31.760 we have problems the sector of the treasury and I 0:19:32.280 --> 0:19:34.159 you know, we work with our counterpart in China to 0:19:34.200 --> 0:19:36.879 try to loosen that flow up. Sometimes we're more successful 0:19:37.160 --> 0:19:39.720 than others. One important thing is we're moving forward in 0:19:39.720 --> 0:19:42.080 the US on rare earth production. One of the things 0:19:42.119 --> 0:19:44.040 I'm doing on my trip out west here, I'm going 0:19:44.040 --> 0:19:47.720