WEBVTT - Trump Imposes Tariffs; Dollar Surges on New Tariffs

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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, we are seeing a sharp sell off in stocks

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<v Speaker 3>around the world with President Trump set to follow through

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<v Speaker 3>on his threat of tariffs against America's closest trading partners.

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<v Speaker 3>On Saturday, the President announced twenty five percent duties on

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<v Speaker 3>products from Canada and Mexico and ten percent on China,

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<v Speaker 3>starting just after midnight tonight. Trump admits American consumers might

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<v Speaker 3>take a hit.

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<v Speaker 4>We may have short term so a little pain, and

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<v Speaker 4>people understand that.

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<v Speaker 5>But long term, the United States has been.

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<v Speaker 4>Ripped off by virtually every country in the world. We

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<v Speaker 4>have deficits with almost every country, not every country, but allmost.

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<v Speaker 3>And Republican lawmakers are signaling they support the president's efforts.

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<v Speaker 3>Senator Lindsey Graham had this reaction on Fox News Sunday.

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<v Speaker 6>If you want tariffs to go away, Mexico and China,

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<v Speaker 6>stop poising Americans, stop sending ventanyl into America to kill Americans.

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<v Speaker 6>If you want to have a better relationship Mexico with

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<v Speaker 6>the United States, do your report on the other side.

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<v Speaker 3>Of the border, but Democratic Senator Mark Warner says tariffs

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<v Speaker 3>amount to what he calls a Donald Trump Super Bowl

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<v Speaker 3>tax less than a week before the big game. Remember,

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<v Speaker 3>Donald Trump got hired trying to lower grow saying he

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<v Speaker 3>was going to lower grocery prices.

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<v Speaker 4>Right two weeks in, He's doing something that's going to

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<v Speaker 4>do the absolute opposite.

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<v Speaker 3>Senator Warner spoke to CBS as Margaret Brennan on Face

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<v Speaker 3>the Nation and you can hear both Face the Nation

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<v Speaker 3>and Fox News Sunday every Sunday on Bloomberg Radio.

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<v Speaker 2>Well, Nathan Trump says he will have separate calls this

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<v Speaker 2>morning with Canadian Prime Minister Justin Trudeau as well as

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<v Speaker 2>with the Mexican leadership. The Canadian leader has already pledged

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<v Speaker 2>twenty five percent retaliatory tariffs on one hundred and seven

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<v Speaker 2>billion dollars worth of US goods. Trudeau says Trump's action

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<v Speaker 2>now risks job losses and price rises for Americans.

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<v Speaker 7>If President Trump wants to usher in a new golden

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<v Speaker 7>age for the United States, the better path is to

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<v Speaker 7>partner with Canada, not to punish US.

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<v Speaker 2>Canadian Prime Minister Justin Trude do other Canadian officials announce

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<v Speaker 2>their own measures. David Eby, the Premiere of British Columbia,

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<v Speaker 2>directed the provincially owned liquor distributor to remove some alcohol

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<v Speaker 2>brands made in Republican Led States from the shelves of

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<v Speaker 2>retail stores and to cease further purchases.

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<v Speaker 3>Well, as you mentioned, Karen, the PAESO is dropping to

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<v Speaker 3>its lowest level in almost three years. Mexican President Claudia

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<v Speaker 3>Shanebaum says she'll set out her response to US tariffs

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<v Speaker 3>later today. She says she hopes a resolution can be

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<v Speaker 3>found quickly.

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<v Speaker 8>That's a bit anise Nibo sovereignty is not negotiable to

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<v Speaker 8>this end. Yesterday, in my statement, I proposed to President Trump,

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<v Speaker 8>though we establish a working group, it is not with

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<v Speaker 8>the imposition of tariffs that the problems are resolved, but

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<v Speaker 8>speaking and dialoguing as we did.

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<v Speaker 3>Mexican President Claudia Shanebaum spoke there through an interpreter. President

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<v Speaker 3>Trump has said he may escalate US tariffs further response

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<v Speaker 3>to any retaliations.

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<v Speaker 2>Well Nathan China's reaction to Trump's tariffs, which come in

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<v Speaker 2>the middle of Lunar New Year holiday celebrations, has been

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<v Speaker 2>more muted. The country's Commerce Ministry issued a statement expressing

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<v Speaker 2>strong dissatisfaction and vowing corresponding countermeasures, without elaborating. Our Chief

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<v Speaker 2>North Asia correspondent Stephen Engels says China's reaction could yet

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<v Speaker 2>ramp up.

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<v Speaker 9>This is going to be a protracted process, So Beijing

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<v Speaker 9>has to process exactly what's going to be the end

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<v Speaker 9>result of tariffs.

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<v Speaker 10>Is it going to go up to sixty percent?

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<v Speaker 9>It's ten percent right now, and there's going to be

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<v Speaker 9>an economic impact to that. And I think right now,

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<v Speaker 9>especially as they're coming out of the long Lunar New

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<v Speaker 9>Year holiday, kind of crafting their message obviously, and.

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<v Speaker 2>Mutz Bloomberg Steven Angel reporting from Hong Kong.

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<v Speaker 3>And after announced those duties on China, Mexico, and Canada, Karen,

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<v Speaker 3>President Trump also ramped up threats to the European Union,

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<v Speaker 3>citing that block's large surplus with the US.

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<v Speaker 4>It will definitely happen with the European Union, I can

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<v Speaker 4>tell you that, because they've really taken advantage of us,

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<v Speaker 4>and you know, we have over three hundred billion dollar deficit.

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<v Speaker 4>They don't take our cars, they don't take our.

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<v Speaker 5>Farm products, they take almost nothing. Can we take everything

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<v Speaker 5>from them?

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<v Speaker 4>Millions of cars tremendous amounts of food and farm product.

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<v Speaker 3>President Trump's remarks came after an EU spokesperson said that

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<v Speaker 3>the BLOCK would respond firmly to any trading partner that

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<v Speaker 3>unfairly or arbitrarily imposes tariffs on EU goods.

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<v Speaker 2>Well, Nathan, President Trump's tariffs against Canada and Mexico may

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<v Speaker 2>result in consumers paying more for cars, and we get

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<v Speaker 2>that angle up the tariff story with Bloomberg's John Tucker

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<v Speaker 2>and John how much are we talking about here?

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<v Speaker 11>Well, Karen Research from automotive consultant Alex Partners says the

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<v Speaker 11>tariffs will add sixty billion dollars in cost to the

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<v Speaker 11>auto industry, a lot of which likely to be passed

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<v Speaker 11>on to consumers. Wolf Research analysts, so the average price

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<v Speaker 11>of a new car may climb by about three thousand dollars.

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<v Speaker 11>The duties would immediately hit almost a quarter of this

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<v Speaker 11>sixteen million vehicles that are sold in the US every year,

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<v Speaker 11>as well as the parts and components that go into them. Now,

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<v Speaker 11>car components can make their way back and forth across

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<v Speaker 11>US borders as many as eight times during the production

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<v Speaker 11>of the car. Automakers in Mexico they've been preparing by

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<v Speaker 11>preemptively importing both more components and vehicles that could ease

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<v Speaker 11>the blow in the first few weeks. But Flavio Volpi,

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<v Speaker 11>he's the president of Canada's Automotive Parts Manufacturers Association, predicts

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<v Speaker 11>his words now the auto sector is going to shut

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<v Speaker 11>down within a week. This morning, shares of GM down

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<v Speaker 11>seven percent, Stalantes is off almost six percent, and Ford

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<v Speaker 11>is down four percent. John Tucker, Bloomberg Radio.

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<v Speaker 3>John, thanks now the latest on another hot button issue

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<v Speaker 3>for President Trump, Panama. It's now promising free passage for

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<v Speaker 3>US warships through the Panama Canal and also says it

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<v Speaker 3>will withdraw from China's Belton Road initiative, making Panama the

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<v Speaker 3>first Latin American country to do so. The concessions came

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<v Speaker 3>after a Secretary of State Marco Rubio visited Panama over

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<v Speaker 3>the weekend.

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<v Speaker 12>Over time, it's the relationship had its ups and downs,

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<v Speaker 12>and today it's one of our strongest economic partners, certainly

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<v Speaker 12>in the hemisphere, and an important catalyst for so much

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<v Speaker 12>trade and commerce that happens in the United States that

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<v Speaker 12>effects and impacts so many people both going out and

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<v Speaker 12>coming in.

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<v Speaker 10>And that was Secretary of State Marco Rubio speaking over

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<v Speaker 10>the weekend.

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<v Speaker 3>The US built the Panama Canal at the start of

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<v Speaker 3>the twentieth century and seated it back in nineteen ninety

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<v Speaker 3>nine under a treaty signed by President Jimmy Carter in

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<v Speaker 3>nineteen seventy seven.

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<v Speaker 2>Nathan, we're also learning more about Elon Musk's plans for

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<v Speaker 2>government efficiency. He's sketching out plans for aggressive cuts that

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<v Speaker 2>include wiping out the US Agency for International Development. Much

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<v Speaker 2>said he has the President's blessing to end the US

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<v Speaker 2>Agency for International Development and fold what's left into the

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<v Speaker 2>State Department. The Tesla CEO says this move from his

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<v Speaker 2>Doze initiative should instill confidence in the Treasury market.

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<v Speaker 10>Well, let's check the markets once again, Karen raf. Stocks

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<v Speaker 10>are falling.

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<v Speaker 3>The dollar is rallying after President Trump and post tariffs

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<v Speaker 3>on Canada, Mexico, and China. The dollars up to its

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<v Speaker 3>highest level in more than two years. Checking it against

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<v Speaker 3>the euro right now, the euros at one point zero

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<v Speaker 3>two three seven, down one point two percent, the Mexican

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<v Speaker 3>peso down two percent, while the Canadian dollar is weaker

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<v Speaker 3>against the US dollar by about one percent.

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<v Speaker 10>Futures are sliding.

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<v Speaker 3>The S and P futures down one point six percent,

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<v Speaker 3>Down futures one point four percent lower, and Nasdaq futures

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<v Speaker 3>on the decline by one point eight percent. Oil is

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<v Speaker 3>rallying nine x, crudes up two and a half percent

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<v Speaker 3>seventy four dollars thirty two cents a barrel, and Bitcoin

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<v Speaker 3>is falling as well, down one point eight percent at

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<v Speaker 3>about ninety five thy three hundred dollars.

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<v Speaker 2>Well Nathan Earnings will also be in focus this week,

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<v Speaker 2>as two more members of the Magnificent Seven or pourt

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<v Speaker 2>quarterly results, and Bloomberg's Tom Busby has a preview.

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<v Speaker 7>Google parent Alphabet out with earnings is Tuesday. It's expected

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<v Speaker 7>to see revenue grow double digits thanks to ad sales

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<v Speaker 7>on its Google Search Engine, growth in its services and

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<v Speaker 7>cloud computing, and advancements in its generative AI capabilities. Also

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<v Speaker 7>expending its way moow robotaxi business to more cities. On Thursday,

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<v Speaker 7>we hear from Amazon. It's expected to benefit from a

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<v Speaker 7>burst of consumer spending ahead of the holidays and a

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<v Speaker 7>head of tariffs imposed by the Trump White House. Also

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<v Speaker 7>solid revenue from its Amazon Web Services cloud division. I'm

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<v Speaker 7>Tom buzzby Bloomberg Radio.

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<v Speaker 2>Time no offer look at some of the other stories

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<v Speaker 2>making news in New York and around the world, and

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<v Speaker 2>for that we're joined by Bloomberg's Michael Barr Michael.

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<v Speaker 13>Good Morning, Good morning, Karen. Authorities say they have recovered

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<v Speaker 13>the remains of fifty five of the sixty seven people

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<v Speaker 13>killed in last week's plane crash in the nation's capital.

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<v Speaker 13>John Donnelly of the Washington DC Fire and Ems Department

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<v Speaker 13>says they are committed to the dignified recovery of remains

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<v Speaker 13>as they prepare to lift wreckage from the Potomac River

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<v Speaker 13>as early as this morning. Don Lee also says he

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<v Speaker 13>has spoken with the families and kept them informed of

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<v Speaker 13>the timeline and the operations as they work. They are

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<v Speaker 13>a strong group of families that are focused on getting

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<v Speaker 13>their the ones back and I think that's the appropriate

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<v Speaker 13>place to be at this point. Officials in Philadelphia have

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<v Speaker 13>now located the black box of the medical flight that

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<v Speaker 13>crashed in a crowded city neighborhood Friday night. All six

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<v Speaker 13>people on the plane were killed, and one person on

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<v Speaker 13>the ground also died. At least twenty two people now

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<v Speaker 13>reported injured, including three in critical condition. Mayor Jael Parker

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<v Speaker 13>says federal, state, and local investigators have been working around

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<v Speaker 13>the clock at the scene.

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<v Speaker 11>This remains an ongoing investigation.

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<v Speaker 10>The situation is fluid and it is active.

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<v Speaker 13>The plane was on its way to Missouri and was

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<v Speaker 13>only in the air for a short time before it crashed.

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<v Speaker 13>Beyonce finally won air Grammy that has eluded her g

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<v Speaker 13>one Album of the Year, the sixty seventh Grammy Awards

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<v Speaker 13>last night, for the Country music song cow Boy Carter.

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<v Speaker 10>I just feel very full and very honored. It's been many,

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<v Speaker 10>many years.

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<v Speaker 13>To see of CBS Recording, Academy, Global News twenty four

0:10:03.480 --> 0:10:05.560
<v Speaker 13>hours a day and whenever you want it with Bloomberg

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<v Speaker 13>News Now Michael Barr, and this is Bloomberg Karen.

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<v Speaker 2>All right, Michael Barr, thank you any time now for

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<v Speaker 2>the Bloomberg Scores update. Brought to you by Tri State Outy.

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<v Speaker 2>Here's John stash Hour, John, good morning.

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<v Speaker 14>Good morning. Carry the NBA trade dadline now until Thursday.

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<v Speaker 14>But what a weekend it was. Saturday night brought the

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<v Speaker 14>stunning blockbuster Luca Donci to the Lakers, Anthony Davis to

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<v Speaker 14>Dallas last night, not to that level, but the Aaron

0:10:31.720 --> 0:10:34.880
<v Speaker 14>Fox and Zach Lamine, good players who've been All Stars,

0:10:34.920 --> 0:10:38.720
<v Speaker 14>and Fox was moved from Sacramento to San Antonio. Lavine

0:10:38.760 --> 0:10:41.880
<v Speaker 14>goes from Chicago to Sacramento. I mean, while Donsi released

0:10:41.880 --> 0:10:44.520
<v Speaker 14>a statement and said he thought he'd spent his entire

0:10:44.600 --> 0:10:48.240
<v Speaker 14>career in Dallas every one day. Last season, Doncis averaged

0:10:48.280 --> 0:10:51.520
<v Speaker 14>thirty four points a game, nine rebounds in ten assisted.

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<v Speaker 14>He led the Maps to the NBA Finals. So why

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<v Speaker 14>trade him? The Dallas Genteral manager is Nico Harrison.

0:10:57.480 --> 0:11:00.000
<v Speaker 1>You know, there's some unique things about his his contray

0:11:00.960 --> 0:11:03.200
<v Speaker 1>that we had to pay attention to. You know, there's

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<v Speaker 1>there's other teams that were flowing up. You know that

0:11:05.760 --> 0:11:07.040
<v Speaker 1>he was going to have he was gonna be able

0:11:07.080 --> 0:11:09.240
<v Speaker 1>to decide to make his own decision at some point

0:11:09.320 --> 0:11:11.480
<v Speaker 1>and whether he wants to be here or not, whether

0:11:11.679 --> 0:11:13.480
<v Speaker 1>we want a super maxim or not, or whether he

0:11:13.559 --> 0:11:15.439
<v Speaker 1>wants to opt out. So I think we had to

0:11:15.520 --> 0:11:18.320
<v Speaker 1>take all that into consideration and feel like we got

0:11:18.360 --> 0:11:20.319
<v Speaker 1>out in front of what could have been in tromoltuous summer.

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<v Speaker 14>Alongside MAV's owner Mark Cuban no longer the majority owner,

0:11:23.880 --> 0:11:26.360
<v Speaker 14>he was not involved in the decision the trade Donson

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<v Speaker 14>Jet the Garden Rangers three goals in the third period

0:11:28.559 --> 0:11:30.920
<v Speaker 14>beat Vegas for to two. The Islanders seven game winning

0:11:30.920 --> 0:11:33.360
<v Speaker 14>street came to an end at Florida six to three.

0:11:33.400 --> 0:11:35.920
<v Speaker 14>The Devils and Buffalo fell behind early three nothing lost

0:11:36.000 --> 0:11:37.199
<v Speaker 14>four to three for the third.

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<v Speaker 10>Time in the last four years.

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<v Speaker 14>Rory McElroy's first term of the year of victory his

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<v Speaker 14>first ever win at pebble Bee finished twenty one hunder

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<v Speaker 14>a par one by two over Shane Lowry. They both

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<v Speaker 14>had holes in one in the opening round. Former Baseball

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<v Speaker 14>Commissioner Fay Vincent has passed away at eighty six. John

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<v Speaker 14>stesha that I want Bloomberg Sports karnon Nathan Coast to

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<v Speaker 14>Coast on Bloomberg Radio nationwide, on Serious Exam and around

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<v Speaker 14>the world on Bloomberg dot Com and the Bloomberg Business app.

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<v Speaker 7>This is Bloomberg Daybreak.

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<v Speaker 10>Good morning, I'm Nathan Hager.

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<v Speaker 3>President Donald Trump's promise of tariffs on America's closest trading

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<v Speaker 3>partners is rippling through markets. After announcing twenty five percent

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<v Speaker 3>duties on Canada and Mexico and ten percent on China,

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<v Speaker 3>the President says the European Union is next.

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<v Speaker 4>They don't take our cars, they don't take our farm products.

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<v Speaker 5>They take almost nothing. Can we take everything?

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<v Speaker 7>From their?

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<v Speaker 3>President spoke to reporters outside Washington last night, joining us

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<v Speaker 3>this morning from the nation's capital, Terry Haynes, the founder

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<v Speaker 3>of Pangaea Policy. As we watch stocks sell off and

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<v Speaker 3>the dollar rally this morning, Terry, should the market have

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<v Speaker 3>seen this coming?

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<v Speaker 10>Good morning?

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<v Speaker 15>Hi, Good morning, Nathan, And yes, I think they should have.

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<v Speaker 15>Markets have spent the last few months talking themselves into

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<v Speaker 15>a GRADUALI history even you know this isn't happening. It's

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<v Speaker 15>all negotiation stance, And yes it is negotiation, but it's

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<v Speaker 15>negotiation based not from a trade war perspective, but I

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<v Speaker 15>think from an overall conflict perspective, a broader geopolitical context,

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<v Speaker 15>among others.

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<v Speaker 3>So what is the chance, then, Terry, that the President

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<v Speaker 3>actually does follow through on these He announced they're going

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<v Speaker 3>to kick in just after midnight tonight. At the same

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<v Speaker 3>time he's saying that he will have discussions with Canada

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<v Speaker 3>and Mexico today.

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<v Speaker 15>I think the markets should assume that some tariffs are coming.

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<v Speaker 15>I think the size and shape are still very much

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<v Speaker 15>up in the air, and markets are going to have

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<v Speaker 15>to get used to volatility here. Frankly, in the realm

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<v Speaker 15>of political decision making. You know, my instinct, and it

0:13:40.280 --> 0:13:43.360
<v Speaker 15>is only instinct, is that it's not at all beyond

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<v Speaker 15>the question that the tariffs go in as announced. It's

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<v Speaker 15>also not beyond the question that they go in with

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<v Speaker 15>some lowered modifications. You can look one way you can

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<v Speaker 15>look at this is Trump testing the markets on reaction,

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<v Speaker 15>and he's also tested politically the reaction of our border

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<v Speaker 15>partners to do specific things to actually improve the border

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<v Speaker 15>and stop the flow of fentanyl.

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<v Speaker 10>Is this a test on fellow Republicans as well?

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<v Speaker 15>It is to some extent, yes, but I think it's

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<v Speaker 15>in so far they've been supportive. But what you got

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<v Speaker 15>to remember over the last decade, and it's been a

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<v Speaker 15>decade since since tariff policy became part of geopolitical policy

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<v Speaker 15>in the United States, is that Congress has supported the

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<v Speaker 15>means in which the how Trump imposes these tariffs, whether

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<v Speaker 15>it was Trump one, whether it was Biden then now

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<v Speaker 15>whether it's Trump too. You know, Congress supports the how.

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<v Speaker 15>There will be some dissent on the when or why.

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<v Speaker 15>That's rooted as much in the partisan politics as anything else,

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<v Speaker 15>but there's not going to be any serious move to

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<v Speaker 15>try to stop Trump from doing any of these things.

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<v Speaker 3>Do you think there are any further concessions that Canada

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<v Speaker 3>or Mexico could make after the concessions that they've say

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<v Speaker 3>that they have made before the President announced these duties

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<v Speaker 3>over the weekend.

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<v Speaker 15>My unsolicited advice to those countries is very simple is

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<v Speaker 15>that you get as you get as specific. If they

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<v Speaker 15>want to stop the tariffs, you get as specific, and

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<v Speaker 15>to talk about how well and how much you can

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<v Speaker 15>partner as possible. If Trump realizes, I think, unlike the

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<v Speaker 15>first that he's going to need support from his his

0:15:26.680 --> 0:15:29.920
<v Speaker 15>border partners and and very much wants those things.

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<v Speaker 10>And in just thirty seconds, is this about partnerships?

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<v Speaker 3>Is this about the fentanyl and immigration flows or is

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<v Speaker 3>this more about the trade deficits.

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<v Speaker 15>I think it's about both. But at root, you know,

0:15:43.640 --> 0:15:48.840
<v Speaker 15>the Trump always says that his top priority is securing

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<v Speaker 15>the border, and I think you have to take the

0:15:53.240 --> 0:15:57.440
<v Speaker 15>border strategy both seriously and literally as part of the

0:15:57.480 --> 0:16:02.160
<v Speaker 15>broader geopolitical strategy and the broader economic strategy which are

0:16:02.240 --> 0:16:05.360
<v Speaker 15>out there, which exists, even if they're being ignored by markets. Today.

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<v Speaker 2>This is Bloomberg Daybreak, your morning podcast on the stories

0:16:09.280 --> 0:16:12.240
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0:16:30.680 --> 0:16:32.840
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0:16:52.080 --> 0:16:53.040
<v Speaker 10>And I'm Nathan Hager.

0:16:53.200 --> 0:16:55.200
<v Speaker 3>Join us again tomorrow morning for all the news you

0:16:55.320 --> 0:16:58.080
<v Speaker 3>need to start your day right here on Bloomberg Daybreak