WEBVTT - Trump Tariffs: Everything You Need to Know

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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<v Speaker 2>are the stories we're following today.

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<v Speaker 3>Karen, the Global Sella follows the announcement that Wall Street

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<v Speaker 3>and the world had been waiting for four weeks. President

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<v Speaker 3>Trump is raising tariffs around the world on a day

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<v Speaker 3>he is dubbed Liberation Day for America.

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<v Speaker 4>April second, twenty twenty five will forever be remembered as

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<v Speaker 4>today American industry was reborn, the day America's destiny was reclaimed,

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<v Speaker 4>and the day that we began to make America wealthy again.

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<v Speaker 3>In remarks from the White House Rose Garden heard here

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<v Speaker 3>on Bloomberg, the President announced at least a ten percent

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<v Speaker 3>tariff on all exporters to the US. About sixty nations

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<v Speaker 3>will see even higher duties. The biggest target of all

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<v Speaker 3>is China. The President says, Beijing charges the US an

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<v Speaker 3>effective sixty seven percent rate.

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<v Speaker 4>So sixty seven percent, so we're going to be charging

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<v Speaker 4>a discounted reciprocal tariff of thirty four percent.

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<v Speaker 1>I think.

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<v Speaker 4>In other words, they charge us we judge m chuge mls.

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<v Speaker 4>So how could anybody be upset?

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<v Speaker 3>President Trump is also slapping higher duties on the European Union, Japan, Vietnam,

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<v Speaker 3>and more. All together, Bloomberg Economics estimates the effective tax

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<v Speaker 3>rate on more than three trillion dollars in imported goods

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<v Speaker 3>could rise to about twenty three percent. That is the

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<v Speaker 3>highest in more than a century.

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<v Speaker 2>Well iven, President Trump's tariffs have drawn a sharp reaction

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<v Speaker 2>on Capitol Hill. House Minority Leader Hankem Jeffries spoke out

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<v Speaker 2>even before the president's announcement, this is not liberation Day,

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<v Speaker 2>It's recession day.

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<v Speaker 5>In the United States of America.

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<v Speaker 6>That's what the Trump tariffs are going to do, crash

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<v Speaker 6>the economy.

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<v Speaker 2>How's Minority Leader Hankem Jeffries. Republicans are mostly standing behind

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<v Speaker 2>the president. Ashley Davis is a GEOP. He's strategist and

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<v Speaker 2>partner at S three Group.

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<v Speaker 7>He's ran on this for the last four years.

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<v Speaker 2>Really is that he needs to make sure that the

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<v Speaker 2>other countries are paying what they deserve Republicans strategist Ashley Davis.

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<v Speaker 2>But not every Republican is on board. Kentucky Senator Ran

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<v Speaker 2>Paul says tariffs are just another tax on Americans.

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<v Speaker 4>Republicans used to be in Conservatives and particularly used to

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<v Speaker 4>be against new taxes. I don't think it's going to

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<v Speaker 4>be good for us politically, but it's not good for

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<v Speaker 4>the country either.

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<v Speaker 2>Senator Ran Paul and three other Republicans joined with Democrats

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<v Speaker 2>on a bill opposing President Trump's tariffs on Canada. The

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<v Speaker 2>bill is not likely to pass in the House.

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<v Speaker 3>Well, Karen, President Trump's historic action risks inducing a worldwide

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<v Speaker 3>trade war marked by tit for tax strikes. We spoke

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<v Speaker 3>with Treasury Secretary Scott Besson, who urged other countries not

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<v Speaker 3>to fight back.

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<v Speaker 6>I would advise none of the countries to panic. I

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<v Speaker 6>wouldn't try to retaliate because as long as you don't retaliate,

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<v Speaker 6>this is the high end of the number, and I

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<v Speaker 6>think there could have certainty that this is the number

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<v Speaker 6>barring retaliation.

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<v Speaker 3>Treasury Secretary Scott Besson went on to leave the door

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<v Speaker 3>open to negotiations, telling Bloomberg quote, We'll see with regard

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<v Speaker 3>to further talks. You can hear the full interview with

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<v Speaker 3>Scott Besant on the Bloomberg Talks podcast and watch it

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<v Speaker 3>on the Bloomberg podcast page on YouTube.

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<v Speaker 2>So, Nathan, let's get the reaction from other countries around

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<v Speaker 2>the world. Our first stop brings US to Asia, where

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<v Speaker 2>China has been the biggest target of Trump tariffs, and

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<v Speaker 2>Bloomberg deal Desis joins US from Hong Kong with more Jill.

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<v Speaker 7>Yes, well, I think it's a lot to really digest

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<v Speaker 7>here out of Asia. On the one hand, you do

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<v Speaker 7>see those really high tariffs on China. This thirty four

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<v Speaker 7>percent increase that Trump is now putting on China. If

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<v Speaker 7>you were to take that into tality with all of

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<v Speaker 7>the other levees that Trump has put on China that

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<v Speaker 7>the US has put on China over the last several

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<v Speaker 7>months years, you're looking at somewhere in the neighborhood of

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<v Speaker 7>the average US tariff on Chinese goods being at least

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<v Speaker 7>sixty five percent according to some economists. Bloomberg Economics estimates

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<v Speaker 7>that as a result, that could lead to a one

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<v Speaker 7>to two percentage point loss to growth in China. So

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<v Speaker 7>certainly a big metric there that you're really looking at.

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<v Speaker 7>Of course, we haven't really heard from China yet what

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<v Speaker 7>their definitive actions will be to counter these tariffs. The

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<v Speaker 7>Ministry of Foreign Affairs has said that there are going

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<v Speaker 7>to be measures coming, we're just waiting to see them.

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<v Speaker 7>But I would draw your attention, Karen too, elsewhere in

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<v Speaker 7>Asia where you're also seeing incredibly high rates and likely

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<v Speaker 7>even you know, higher economic shocks. Vietnam, for example, they

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<v Speaker 7>were hit with a forty six percent tariff in this

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<v Speaker 7>latest round. I mean, this is a country that you

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<v Speaker 7>know is incredibly export dependent. They're among the world's most

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<v Speaker 7>trade dependent nations. Or exports were equivalent to nearly ninety

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<v Speaker 7>percent of economic output. I think that's why you're seeing

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<v Speaker 7>such a big market reaction in that particular country today. So,

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<v Speaker 7>you know, just a couple of examples there, but obviously

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<v Speaker 7>all across Asia, we're seeing a lot of different economic shocks,

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<v Speaker 7>just as nations respond to these tariffs that just been announced.

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<v Speaker 3>Jill desis with the reaction from Hong Kong. Jill, thank you.

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<v Speaker 3>Now let's head to Europe get the reaction there. Bloomberg Daybreak,

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<v Speaker 3>you're a banker. Caroline Hepger is in London with the latest.

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<v Speaker 3>Good morning, Caroline, good morning, Nathan and Karen.

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<v Speaker 8>President Trump called the EU pathetic again and that the

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<v Speaker 8>block rips off the US, as he imposed twenty percent

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<v Speaker 8>tariffs on EU goods exported to America. The EU argues

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<v Speaker 8>that America exports plenty of its services to the block

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<v Speaker 8>and that it is the biggest single market in the

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<v Speaker 8>world now. EU trade ministers are due to meet on

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<v Speaker 8>Monday to discuss their response. Meanwhile, in the early hours

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<v Speaker 8>this morning, Commissioned President as to Leavondeline warned that US

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<v Speaker 8>actions would deal a blow to the global economy, and

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<v Speaker 8>she urged further negotiations.

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<v Speaker 9>We have always been ready to negotiate with the United

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<v Speaker 9>States to remove the remaining barriers to transatlantic trade. At

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<v Speaker 9>the same time, we are prepared to respond. We are

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<v Speaker 9>already finalizing the first package of countermeasures in response to

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<v Speaker 9>tariff's on steel, and we're now preparing for further countermeasures

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<v Speaker 9>to protect our interests and our businesses.

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<v Speaker 8>If negotiations fails, Vonderline speaking there the tariffs could wipe

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<v Speaker 8>out the growth forecast by the ECB for this year

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<v Speaker 8>and in twenty twenty six. Markets now see another rate

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<v Speaker 8>cut in April as likely. Bloomberg Economics sees the tariffs

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<v Speaker 8>cutting EU goods exports to the US by half in

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<v Speaker 8>the medium term. By comparison, here in the UK, we

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<v Speaker 8>were dealt with a bit more leniently, a ten percent tariff.

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<v Speaker 8>Some including business lobby see it as a benefit from

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<v Speaker 8>Prime Minister Keir Starmer's pragmatic approach to the White House.

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<v Speaker 8>The UK Trade Secretary Jonathan Reynolds has told Bloomberg just

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<v Speaker 8>this morning that Britain is still confident that tariffs will

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<v Speaker 8>come off, and yet the US is inflicting pain on

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<v Speaker 8>some of its closest allies. All told, it's more than

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<v Speaker 8>just an economic shock.

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<v Speaker 2>All right, Caroline, thank you well early Trump to targets

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<v Speaker 2>hitded On in Mexico escaped the new round of tariff announcements.

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<v Speaker 2>We spoke with Ontario Premier Doug Ford.

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<v Speaker 1>I would highly recommend to the Prime Minister not the

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<v Speaker 1>retaliate and let's carry on a strong relationship. Let's build

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<v Speaker 1>the aim can fortress American Canadian fortress around both countries

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<v Speaker 1>and be the wealthiestmans, prosperous, safest two countries in the world.

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<v Speaker 2>Ontario Premier Doug Ford, speaking of the Bloomberg's Balance of power.

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<v Speaker 2>While no new tariffs were announced to other levies Trump

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<v Speaker 2>has already imposed on Canadian and Mexican goods remain intact.

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<v Speaker 3>And Karen Well stocks are selling off around the world.

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<v Speaker 3>The US has been the hardest hit so far. Let's

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<v Speaker 3>continue our coverage now with Bloomberg's John Tucker.

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<v Speaker 10>John, all right, Nathan, Let's do the biggest losers in

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<v Speaker 10>the US. These are the companies most exposed in that

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<v Speaker 10>source a lot of their products from Asia, such as

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<v Speaker 10>Apple and some of its magnificent seven cohorts of the

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<v Speaker 10>new tariffs will reach thirty four percent for China. Apple

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<v Speaker 10>still produces the mudjority of its US OL devices in

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<v Speaker 10>Chinese factories. India, where Apple's increasingly building iPhones and air pods,

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<v Speaker 10>that's getting a twenty six percent TEARFF. And then there's Vietnam,

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<v Speaker 10>where the company now makes air pods, iPads, Apple watches,

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<v Speaker 10>and max that'll be hit with a forty six percent tax.

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<v Speaker 11>Now.

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<v Speaker 10>Apple shares this morning in the pre market down close

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<v Speaker 10>to seven percent. Then there's in Vidia. In Vidia the

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<v Speaker 10>most actively traded pre market. It relies on China for

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<v Speaker 10>AI Chip sales of those shares right now down three

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<v Speaker 10>point three percent. Let's move on to the world's largest

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<v Speaker 10>footwear and apparel companies also facing a shock to their

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<v Speaker 10>supply chains. Nike makes many of its sneakers in Vietnam,

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<v Speaker 10>and Nike shares pre market they are down eight point

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<v Speaker 10>four percent. Lululemon Athletico, which makes forty percent of its

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<v Speaker 10>products in Vietnam seventeen percent in Cambodia, tumbled almost ten

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<v Speaker 10>percent in late trading. Shares of Abercrombie and Fitch, they

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<v Speaker 10>get thirty five percent of their merchandise from Vietnam A

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<v Speaker 10>fell seven point seven percent. And then Gap, which buys

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<v Speaker 10>twenty seven percent of its goods from Vietnamese factories at

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<v Speaker 10>nineteen percent from Indonesia. That's slid about eleven percent. You

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<v Speaker 10>know you yor income, John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, John, thank you well. Shortly after midnight, US

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<v Speaker 2>auto import tariffs went into effect. Meanwhile, one industry was

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<v Speaker 2>spared for now, and Bloomberg Lisa Matteo joins us with

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<v Speaker 2>the very latest Lisa, Hey there, Karen.

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<v Speaker 12>So let's start with the most recent chain, the twenty

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<v Speaker 12>five percent tariff on US auto imports. Now, it's expected

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<v Speaker 12>to increase costs and disrupt industry supply chains. But what's

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<v Speaker 12>more certain auto parts will also be hit with a

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<v Speaker 12>similar level no later than May third. And this morning

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<v Speaker 12>you already have Volkswagen already announcing it plans to add

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<v Speaker 12>import fees to the sticker prices of its vehicles that

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<v Speaker 12>are shipped into the US. Now, Volkswagen shares down about

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<v Speaker 12>half a percent. In Germany, you have Ford off about

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<v Speaker 12>half a percent, General Motors down one percent, Tesla is

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<v Speaker 12>lower by three percent. Chrysler Parents still land. It was

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<v Speaker 12>down nearly two percent yesterday. This morning it's up about

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<v Speaker 12>three tens of percent before the belt. The only good

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<v Speaker 12>news is at imported cards and parts, will they escape

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<v Speaker 12>the so called reciprocal tariffs? And speaking of being spared,

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<v Speaker 12>you have the pharmaceutical sector and won this reprieve from

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<v Speaker 12>sweeping tariffs. But here's the thing, it may not last long.

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<v Speaker 12>Sources saying the White House plans to launch an investigation

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<v Speaker 12>into the drug industry other sectors, and that includes semiconductors

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<v Speaker 12>and potentially critical minerals, and that could lead to tariffs

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<v Speaker 12>under the Trade Expansion Act. Now, if we take a

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<v Speaker 12>look at chairs A Pfizer, they're down about two tens

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<v Speaker 12>of percent. Eli Lilly off about two percent. Lisa Matteo, Bloomberg.

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<v Speaker 3>Radio, Lisa, thank you all. In all, it is an

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<v Speaker 3>aggressive suite of tariffs from President Trump, and it will

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<v Speaker 3>significantly complicate the federal reserves job as it struggles to

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<v Speaker 3>question inflation and avoid an economic downturn. This morning, Morgan

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<v Speaker 3>Stanley pushed back. It's called for the next FED rate

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<v Speaker 3>cut to next year. The firm's analysts cite inflation risks

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<v Speaker 3>arising from tariffs. FED Governor Adriana Kougler says it's appropriate

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<v Speaker 3>to keep in restraints unchanged until upside risks to inflation abate.

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<v Speaker 13>I will support maintaining the current policy BRAID for as

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<v Speaker 13>long as this upside race to inflation continue, while economic

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<v Speaker 13>activity unemployment remain the stay.

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<v Speaker 3>No, it was FED Governor Adriana Kugler. The Fed's next

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<v Speaker 3>meeting May seventh.

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<v Speaker 5>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 5>and around the world on Bloomberg dot Com and the

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<v Speaker 5>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning. I'm Karen Moscow alongside Nathan Hager, and we

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<v Speaker 2>continue our coverage on tariffs with a conversation with US

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<v Speaker 2>Treasury Secretary Scott Messant. He spoke with the Bloomberg Televisions

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<v Speaker 2>and Marie hor Dern shortly after the tariffs were announced,

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<v Speaker 2>urging other economies against taking retaliatory steps against the new

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<v Speaker 2>set of America's retaliatory tariffs. Let's listen in.

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<v Speaker 6>What I would say and Marie, I would advise none

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<v Speaker 6>of the countries to panic. I wouldn't try to retaliate

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<v Speaker 6>because as long as you don't retaliate, this is the

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<v Speaker 6>high end of the number, and I think the market

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<v Speaker 6>could have certainty that this is the number barring retaliation.

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<v Speaker 6>So we've got a ceiling and then we can see

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<v Speaker 6>if there's a different floor.

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<v Speaker 14>So you sound like you're ready for a negotiation. A

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<v Speaker 14>number of these partners. Has the European Union, has China?

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<v Speaker 14>Has India? Have these countries reached out?

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<v Speaker 6>Well, they've all reached out, but it's going to be

0:12:33.480 --> 0:12:36.040
<v Speaker 6>up to President Trump to see what he wants to do.

0:12:36.720 --> 0:12:39.680
<v Speaker 6>I think the mindset might be to let things settle

0:12:39.800 --> 0:12:43.800
<v Speaker 6>for a while. Their terrifts or non tariff barriers have

0:12:43.840 --> 0:12:45.960
<v Speaker 6>been on a long time, so we'll see where it

0:12:46.000 --> 0:12:46.680
<v Speaker 6>goes from here.

0:12:46.840 --> 0:12:49.120
<v Speaker 14>When it comes to China, they have a much higher

0:12:49.240 --> 0:12:52.120
<v Speaker 14>rate on this list. On top of that, there's still

0:12:52.120 --> 0:12:55.360
<v Speaker 14>that twenty percent fentanyl tariff rate. Is all of this

0:12:55.520 --> 0:12:57.880
<v Speaker 14>coming together to be more than a fifty percent tariff

0:12:57.920 --> 0:12:58.760
<v Speaker 14>rate for Beijing?

0:12:59.200 --> 0:13:02.000
<v Speaker 6>Well, yes, I think it is, and I think it's

0:13:02.000 --> 0:13:05.960
<v Speaker 6>a combination of things. And you know again that I

0:13:05.960 --> 0:13:10.440
<v Speaker 6>think China said today that solving the fentanyl crisis depends

0:13:10.480 --> 0:13:13.400
<v Speaker 6>on taking off the fentanyl tariffs, and I'm pretty sure

0:13:13.840 --> 0:13:16.040
<v Speaker 6>that's not the way the sequencing is going to work.

0:13:16.400 --> 0:13:21.960
<v Speaker 6>They're exporting the precursor chemicals, and every every day, every week,

0:13:22.000 --> 0:13:24.040
<v Speaker 6>every month, Americans are dying and it's going to have

0:13:24.080 --> 0:13:24.480
<v Speaker 6>to stop.

0:13:24.679 --> 0:13:26.839
<v Speaker 14>When it comes to places like China, the President has

0:13:26.920 --> 0:13:29.520
<v Speaker 14>mentioned he's willing to even look at things like TikTok

0:13:29.559 --> 0:13:32.520
<v Speaker 14>to potentially do a negotiation with them. When it comes

0:13:32.520 --> 0:13:34.760
<v Speaker 14>to tariffs, I'm sure you're looking at things like the

0:13:34.880 --> 0:13:37.320
<v Speaker 14>u Wan. What's on the table when it comes to

0:13:37.760 --> 0:13:40.720
<v Speaker 14>this trade realignment between Beijing and Washington.

0:13:40.480 --> 0:13:42.800
<v Speaker 6>Well, we have, we haven't started anything yet. We've been

0:13:42.960 --> 0:13:45.400
<v Speaker 6>busy with the with the tariffs. I've been busy, as

0:13:45.440 --> 0:13:48.960
<v Speaker 6>we talked about it earlier. The tax bills going very well.

0:13:49.280 --> 0:13:54.320
<v Speaker 6>So I think that we will move toward the bilateral

0:13:54.440 --> 0:14:00.080
<v Speaker 6>relationship with China now that we've done the multilateral tariffs.

0:13:59.679 --> 0:14:04.520
<v Speaker 14>Plan for conversations or a trip to Beijing. Nothing eminent

0:14:05.200 --> 0:14:09.360
<v Speaker 14>when it comes to this negotiation. April ninth, these tariffs

0:14:09.400 --> 0:14:12.840
<v Speaker 14>come in place, do you plan on having negotiations before

0:14:12.880 --> 0:14:13.400
<v Speaker 14>that date?

0:14:14.240 --> 0:14:17.560
<v Speaker 6>Again, I'm not part of the negotiation, so you know,

0:14:17.920 --> 0:14:21.040
<v Speaker 6>we'll see. I am sure that there's going to be

0:14:21.080 --> 0:14:23.120
<v Speaker 6>a lot of calls. I just don't know if they're

0:14:23.120 --> 0:14:24.200
<v Speaker 6>going to be negotiations.

0:14:24.600 --> 0:14:27.640
<v Speaker 2>And that was US Treasury Secretary's god Besson speaking with

0:14:27.680 --> 0:14:30.840
<v Speaker 2>the Bloomberg TVs and Marie hord Durn after President Trump's

0:14:30.880 --> 0:14:33.720
<v Speaker 2>tariff announcement. You can hear the full interview on the

0:14:33.720 --> 0:14:36.840
<v Speaker 2>Bloomberg Talks podcast page and watch it on the Bloomberg

0:14:36.880 --> 0:14:38.640
<v Speaker 2>podcast page on YouTube.

0:14:38.720 --> 0:14:42.560
<v Speaker 3>Nathan Karen, we continue our coverage of these tariffs. We

0:14:42.600 --> 0:14:46.160
<v Speaker 3>are joined now by Bloomberg News Global Trades are Brendan

0:14:46.240 --> 0:14:49.760
<v Speaker 3>Murray and Terry Haynes, the founder of Pangaea Policy, for

0:14:49.800 --> 0:14:52.840
<v Speaker 3>a roundtable this morning after the announcement. Great to speak

0:14:52.880 --> 0:14:54.960
<v Speaker 3>with both of you, and I'll start with you, Brendan,

0:14:55.000 --> 0:14:58.120
<v Speaker 3>because even as Treasury Secretary Scott Bessett is framing this

0:14:58.440 --> 0:15:03.480
<v Speaker 3>as a negotiation, this seems like a really huge start

0:15:03.760 --> 0:15:05.200
<v Speaker 3>to what could be coming.

0:15:05.240 --> 0:15:08.200
<v Speaker 5>Good morning, Yeah, exactly. He said, you know, let's let

0:15:08.240 --> 0:15:11.240
<v Speaker 5>this paraphrasing, he said, let's let this settle in for

0:15:11.280 --> 0:15:13.360
<v Speaker 5>a while, so that you know, that doesn't seem like

0:15:13.720 --> 0:15:16.320
<v Speaker 5>you know, a window for negotiating over the next four

0:15:16.440 --> 0:15:18.920
<v Speaker 5>or five days. So these tariffs are going to take

0:15:18.920 --> 0:15:22.200
<v Speaker 5>effect by early next week and countries are going to

0:15:22.240 --> 0:15:24.960
<v Speaker 5>be scrambling to figure out do we want to retaliate,

0:15:25.440 --> 0:15:28.320
<v Speaker 5>ratchet up the ratchet up the pressure, or do we

0:15:28.360 --> 0:15:31.720
<v Speaker 5>want to you know, take a you know, a more

0:15:31.760 --> 0:15:35.240
<v Speaker 5>negotiating posture and try to work this out. Either way,

0:15:35.880 --> 0:15:38.800
<v Speaker 5>marcuts don't like it, and economists are marking down their

0:15:38.840 --> 0:15:42.040
<v Speaker 5>outlook for growth and marking up their outlook for inflation.

0:15:42.160 --> 0:15:45.280
<v Speaker 5>And you know the aftermath of it here even though

0:15:45.320 --> 0:15:49.480
<v Speaker 5>President Trump said this is simple, reciprocity is about as

0:15:49.520 --> 0:15:52.360
<v Speaker 5>simple as it gets, this still creates a lot of confusion.

0:15:52.960 --> 0:15:56.080
<v Speaker 3>Terry, How does the negotiation go when the president is

0:15:56.160 --> 0:15:59.960
<v Speaker 3>starting with this onslaught.

0:16:00.000 --> 0:16:02.640
<v Speaker 11>Warning, Nathan, you know, the negotiations in a lot of

0:16:02.640 --> 0:16:05.480
<v Speaker 11>ways have already started. My understanding in a lot of

0:16:05.480 --> 0:16:09.880
<v Speaker 11>places is that Secretary of Commerce is the Lutnix team

0:16:10.400 --> 0:16:16.520
<v Speaker 11>had already been giving wish lists, both tariffs and barriers

0:16:17.000 --> 0:16:20.000
<v Speaker 11>to different countries who were already kind of parsing that

0:16:20.760 --> 0:16:23.080
<v Speaker 11>and trying to figure out how they might respond to it,

0:16:24.160 --> 0:16:27.520
<v Speaker 11>and a lot of countries, I mean major countries, both

0:16:27.560 --> 0:16:30.840
<v Speaker 11>allies and non aligned, are going to have to frankly

0:16:30.880 --> 0:16:33.440
<v Speaker 11>work through with their own industries there, whether it be

0:16:33.480 --> 0:16:38.320
<v Speaker 11>agriculture or machine industries, to figure out exactly what they

0:16:38.360 --> 0:16:40.040
<v Speaker 11>want to do and how they want to do it. So,

0:16:41.160 --> 0:16:43.400
<v Speaker 11>you know, I think it's it's correct to say this

0:16:43.440 --> 0:16:48.800
<v Speaker 11>is not going to magically disappear or be mitigated in

0:16:48.840 --> 0:16:52.200
<v Speaker 11>the next few days. But all countries have had an

0:16:52.240 --> 0:16:56.080
<v Speaker 11>advanced warning of what the United States might want and

0:16:56.120 --> 0:16:59.200
<v Speaker 11>what the kind of the parameters for negotiations will be.

0:17:00.200 --> 0:17:02.920
<v Speaker 11>So you know the number one, there's that number two.

0:17:02.920 --> 0:17:06.920
<v Speaker 11>You've seen encouraging responses by a lot of countries. It

0:17:07.080 --> 0:17:09.199
<v Speaker 11>was encouraged. I mean Canada of course got singled out

0:17:09.240 --> 0:17:12.960
<v Speaker 11>for special treatment, but you had Premiere Ford on your

0:17:12.960 --> 0:17:16.560
<v Speaker 11>air last night and he was urging Carneie not to

0:17:16.880 --> 0:17:20.119
<v Speaker 11>retaliate it all. So you know, you'll have a lot

0:17:20.160 --> 0:17:21.320
<v Speaker 11>of those kind of responses.

0:17:21.880 --> 0:17:26.080
<v Speaker 3>Notwithstanding Canada and Mexico being spared at least this round, Brendan,

0:17:26.320 --> 0:17:28.760
<v Speaker 3>just about every other country in the world, even some

0:17:28.960 --> 0:17:32.280
<v Speaker 3>very very small ones, are being targeted in this long

0:17:32.480 --> 0:17:36.720
<v Speaker 3>list that President Trump showed at the Rose Garden last night.

0:17:37.000 --> 0:17:40.560
<v Speaker 3>What could the potential impact be for this kind of

0:17:40.600 --> 0:17:42.880
<v Speaker 3>country by country tariff announcement.

0:17:43.480 --> 0:17:46.119
<v Speaker 5>Well, one of the hardest hit regions was South Asia.

0:17:46.440 --> 0:17:52.119
<v Speaker 5>Countries like Vietnam, Malaysia, Cambodia. These are places where a

0:17:52.160 --> 0:17:55.680
<v Speaker 5>lot of the sort of lower skilled manufacturing has migrated

0:17:55.720 --> 0:17:59.320
<v Speaker 5>from China over the past several years. And you know

0:17:59.359 --> 0:18:02.800
<v Speaker 5>those are places is where you know, close clothes and

0:18:02.840 --> 0:18:05.640
<v Speaker 5>shoes are made. And so you know, there are stories

0:18:05.800 --> 0:18:09.119
<v Speaker 5>that we're reporting today about how you know, Nike, you know,

0:18:09.160 --> 0:18:10.960
<v Speaker 5>you know, Nike tennis shoes and those kinds of things

0:18:11.000 --> 0:18:12.560
<v Speaker 5>that are made in South Asia, you know are going

0:18:12.600 --> 0:18:15.720
<v Speaker 5>to be more expensive. The other the other issue is

0:18:15.840 --> 0:18:19.720
<v Speaker 5>you know electronics, Apple is starting to produce a lot

0:18:19.760 --> 0:18:23.400
<v Speaker 5>more of their phones in India. India you know, got

0:18:23.440 --> 0:18:25.720
<v Speaker 5>hit with a tariff in the twenty five percent range,

0:18:25.760 --> 0:18:30.240
<v Speaker 5>I think, and so you know, if these can't be

0:18:30.480 --> 0:18:34.760
<v Speaker 5>resolved by negotiation, you know, anytime soon, then you know,

0:18:34.880 --> 0:18:40.360
<v Speaker 5>consumer prices could conceivably go up. Interestingly, Switzerland was singled out,

0:18:40.680 --> 0:18:43.040
<v Speaker 5>got a bigger got a bigger tariff level than the

0:18:43.040 --> 0:18:45.520
<v Speaker 5>rest of the than than the European Union around it.

0:18:46.240 --> 0:18:49.239
<v Speaker 5>So you know, Rolex watches come next week are going

0:18:49.280 --> 0:18:51.280
<v Speaker 5>to be about thirty one percent more expensive than they

0:18:51.280 --> 0:18:52.040
<v Speaker 5>otherwise would be.

0:18:52.840 --> 0:18:57.200
<v Speaker 3>Terry, we haven't heard much Republican reaction on Capitol Hill

0:18:57.280 --> 0:19:02.359
<v Speaker 3>besides the four Republicans who voted with Democrats against Canada tariffs.

0:19:02.880 --> 0:19:05.199
<v Speaker 3>What do you think the Republican reaction is going to

0:19:05.240 --> 0:19:09.280
<v Speaker 3>be as these tariffs take a fact.

0:19:08.640 --> 0:19:12.720
<v Speaker 11>I think there'll be two things that happened, David, One

0:19:12.720 --> 0:19:15.800
<v Speaker 11>above board, one below board. The above board will be

0:19:15.880 --> 0:19:21.119
<v Speaker 11>that there will be some concerns from Republicans from based

0:19:21.119 --> 0:19:26.440
<v Speaker 11>on the situation in their own states, about making sure

0:19:26.520 --> 0:19:32.719
<v Speaker 11>that they push Trump to resolve these issues lower tariffs,

0:19:33.520 --> 0:19:36.479
<v Speaker 11>engage in the negotiations, do whatever they can, and frankly,

0:19:36.560 --> 0:19:38.840
<v Speaker 11>you know, work with the other the other country as well.

0:19:39.400 --> 0:19:43.280
<v Speaker 11>That's number one. Number two. I think another impact here

0:19:43.440 --> 0:19:47.800
<v Speaker 11>is that it lights an additional hotfoot under the administration's

0:19:47.840 --> 0:19:52.000
<v Speaker 11>broader economic agenda. And you can hear this from a

0:19:52.000 --> 0:19:54.399
<v Speaker 11>lot of senators. You can also hear from Secretary Vessant,

0:19:54.640 --> 0:19:58.760
<v Speaker 11>who continues to push the idea that the tax cuts

0:19:58.800 --> 0:20:01.320
<v Speaker 11>may show up as soon as July or August or

0:20:01.359 --> 0:20:03.840
<v Speaker 11>September something like that. Now I've got it at eighty

0:20:03.840 --> 0:20:07.959
<v Speaker 11>percent by the end of the calendar year. But there's

0:20:08.000 --> 0:20:11.600
<v Speaker 11>an opportunity should everyone wish on the Republican side to

0:20:11.640 --> 0:20:16.199
<v Speaker 11>move these things along faster, and Besson will also be

0:20:16.280 --> 0:20:18.920
<v Speaker 11>focusing on that. He has said that he's going to

0:20:18.960 --> 0:20:23.200
<v Speaker 11>spend a lot of time pushing exactly that that agenda.

0:20:23.600 --> 0:20:27.640
<v Speaker 11>Think of Bess and broadly, as in twenty twenty five,

0:20:27.720 --> 0:20:31.560
<v Speaker 11>as Gary Cohne was in twenty seventeen, the guy who's

0:20:31.760 --> 0:20:34.520
<v Speaker 11>constantly up there goosing things along, trying to make it

0:20:34.560 --> 0:20:35.720
<v Speaker 11>go as fast as he can.

0:20:37.160 --> 0:20:40.080
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