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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: We were speaking earlier about tariff's. President Trump, answering a

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Speaker 2: wide range of questions, touched on a lot of issues

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Speaker 2: today during the first official cabinet meeting of his second term.

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Speaker 2: They covered the doge, a minerals deal with Ukraine, and yes,

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Speaker 2: a renewed tariff threat.

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Speaker 3: Mister President, can you clarify the Canada mex So Co tariffs?

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Speaker 1: You had put that thirty day pause, but you just

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Speaker 1: referred to a when does it go into event?

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Speaker 3: April second April, Canada mix core and for everything.

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Speaker 2: Joining us now for the latest on these upcoming teriffs

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Speaker 2: and a lot more. Is a man who was sitting

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Speaker 2: right behind President Trump as he was conducting that meeting today,

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Speaker 2: Peter Navarro, White House, Senior Counselor for Trade and Manufacturing

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Speaker 2: with us from the North Lawn. It's great to see you,

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Speaker 2: mister Davara. Welcome back with this little bit of confusion

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Speaker 2: about some of the conversation we heard with reporters today,

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Speaker 2: and so we really appreciate your joining us to maybe

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Speaker 2: clear this up. Are these tariffs still set to take

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Speaker 2: effect next week? Is March fourth the deadline? And what

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Speaker 2: specifically could Canada and Mexico do to keep them from

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Speaker 2: taking effect.

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Speaker 4: Well, First of all, in order to understand the trajectory

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Speaker 4: of the President's trade policy, I'd urge everyone watching this show,

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Speaker 4: and presumably most are investors, to read the Presidential Memorandum

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Speaker 4: of Day one of this administration, which lays out all

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Speaker 4: the different types of actions as for today, I was sitting,

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Speaker 4: as you said, right behind the President. I thought he

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Speaker 4: was quite clear in what he was going to do.

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Speaker 5: For me.

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Speaker 4: I came out here hoping to discuss this week's trade

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Speaker 4: actions kind of in my lane. We did two really

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Speaker 4: important things which for investors really your market moving.

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Speaker 5: In the sense.

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Speaker 4: The first was the digital service tax action we took.

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Speaker 4: The President has directed the US Trade Representative to resume

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Speaker 4: action on these digital service taxes and for the benefit

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Speaker 4: of your viewers. A digital service tax is something that

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Speaker 4: was effectively invented in France in twenty nineteen. It's a

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Speaker 4: tax on things like cloud computing, digital advertise, all of that.

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Speaker 4: But it was done in a way in France which

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Speaker 4: only targeted American companies, specifically the big ones like Amazon, Google, Meta, Netflix,

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Speaker 4: and Microsoft, and essentially the President back in twenty nineteen.

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Speaker 4: Saw immediately that this was both a punishment and a

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Speaker 4: discriminatory way of American companies, but also a tax grab

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Speaker 4: from the US Treasury. And so the way that works

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Speaker 4: is these digital taxes are put on and they gone

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Speaker 4: revenues that is, reduced profits, probably reduced profits, then reduce

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Speaker 4: it's like stock prices, and then also reduce revenues from

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Speaker 4: the corporate tax. And what about Medico, well with respect

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Speaker 4: to digital service taxes, well, Canada has one, Mexico does.

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Speaker 5: We're just trying to.

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Speaker 2: Clear up what we heard today from the President, Peter.

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Speaker 2: I'm sorry, I just we're.

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Speaker 1: Trying to understand what we're going to be across purposes,

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Speaker 1: because I made it clear that what the President said

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Speaker 1: just go back and play the clip, and he gave

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Speaker 1: you a timeline.

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Speaker 5: The underlying issue.

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Speaker 4: There, the underlying the deadline, underlying issues, sir, is that

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Speaker 4: too many Americans anywhere from fifty thousand on the low

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Speaker 4: end of three hundred thousand, which I think is the

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Speaker 4: accurate number for the President die every year from fentanyl

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Speaker 4: that comes in from communist shine and big chemical barrels.

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Speaker 4: It goes to the drug cartels in Mexico and the

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Speaker 4: Mexican cartels then bring some of that up to Canada

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Speaker 4: and it comes across our border and people either take

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Speaker 4: it in in the fentanyl direct form, where it's laced

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Speaker 4: with other drugs like speed or heroin or whatever, and

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Speaker 4: Americans are dying. So to the extent that that problem

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Speaker 4: is going to be dealt with, I'm not in the

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Speaker 4: center of those negotiations that be done by others in

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Speaker 4: the administration. I would think as long as we have

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Speaker 4: some progress, uh, then we'll see what we will see.

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Speaker 5: But it's up to the President.

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Speaker 4: But the underlying probably the thing is, sir, It's like

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Speaker 4: whenever I talk to people in the news about tariffs,

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Speaker 4: they also want to cut to this chase over here

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Speaker 4: about what's going to happen, or like I was raising inflation,

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Speaker 4: and they never ask why the terriffs. In this case,

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Speaker 4: it is feminel's killing Americans. It's slaughtered.

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Speaker 2: A good conversation with you, and we understand, but we

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Speaker 2: just want to get some answers for our listeners and

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Speaker 2: viewers about when these might take effect. This isn't about inflation,

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Speaker 2: and it's not about the why. We just want to know.

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Speaker 4: When asked an answer, I told you you will go

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Speaker 4: listen to what the President had to say. It's contingent

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Speaker 4: on Mexico's cooperation in Canada's cooperation in terms of killing

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Speaker 4: Americans with fentanyl. What I'm trying to share with you,

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Speaker 4: which I think is for the for the longer term

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Speaker 4: more germane, is this copper proclamation we did yesterday and

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Speaker 4: the one earlier in the week on digital service taxes

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Speaker 4: has tremendous importance for people.

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Speaker 3: We like to talk about that. We would love to

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Speaker 3: talk to you. We would love to talk to people.

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Speaker 3: I'm trying to ask you about them right now. I

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Speaker 3: like to talk about the copper Executive Order specifically, when

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Speaker 3: we're talking about a commodity like that, do we have

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Speaker 3: the capacity domestically to make up for anything that may

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Speaker 3: be offset by not being able to import or as

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Speaker 3: much If all of this is about trying to protect

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Speaker 3: American commodity production to what degree into how quickly can

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Speaker 3: that be ramped up to make sure that it's still

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Speaker 3: able to meet demand.

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Speaker 4: So this is never a question of not being able

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Speaker 4: to have enough. It's just a question of what kind

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Speaker 4: of steps we take to protect the domestic copper industry

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Speaker 4: across the smelting and refining process in the mining, so

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Speaker 4: we don't really have to worry about We're not putting

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Speaker 4: up a wall to imports themselves. We're just trying to

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Speaker 4: deal with this central problem now and it's a problem

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Speaker 4: across a lot of commodities we have right now. We

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Speaker 4: have a very large over capacity in copper world raw wide.

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Speaker 4: That results in significant dumping into the marketplace here in

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Speaker 4: America and thereby suppresses our ability to open new minds,

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Speaker 4: which we have and there's two.

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Speaker 5: Great ones in Arizona we get developed. One up in.

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Speaker 4: Alaska we get developed the smelting itself, which we haven't

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Speaker 4: opened any new smelters in a long time, and others

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Speaker 4: are being open around the world, and we're simply not

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Speaker 4: having enough refining capacity. That's what we're trying to establish.

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Speaker 4: And the problem is, if you look at the curves,

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Speaker 4: we got a tremendous surge in demand for copper over

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Speaker 4: the next decade because of the electrification of our economy,

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Speaker 4: in part due to things like AI and so when

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Speaker 4: you charge well.

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Speaker 3: And that's why I asked you the question about whether

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Speaker 3: shortages could result if you do see that increase in.

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Speaker 4: Industry pay we'll just pay the terroriffs will be paid.

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Speaker 4: We'll get whatever we need. And in the meantime, as

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Speaker 4: we saw with steel and aluminum, we went from a

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Speaker 4: seventy percent capacity utilization in the first Trump term to

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Speaker 4: eighty in profitability.

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Speaker 5: We had fifteen billion.

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Speaker 4: Dollars of new investment, we had new mills built. And

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Speaker 4: then in the four years of Biden, we lost two

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Speaker 4: aluminum foundries and capacity utilization went back down to the

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Speaker 4: low seventies. So what we're trying to do is build

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Speaker 4: a sustainable investment environment for key commodities and products which

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Speaker 4: are critical to our national security. And by the way,

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Speaker 4: why copper, I mean it seems well, copper is like

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Speaker 4: the second most important thing that Defense Department uses for

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Speaker 4: its weapon systems, and it's also part of everything that's

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Speaker 4: high technology, is part of the electrification of the grid.

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Speaker 4: And we've had a situation where we used to have

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Speaker 4: zero import dependence. We're up to about fifty percent now.

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Speaker 4: And if you just keep those lines going, that import

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Speaker 4: dependence is going to increase and increase, and we're going

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Speaker 4: to be vulnerable to shocks and geopolitical problems. And President

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Speaker 4: Trump says that's not the world we're going to live

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Speaker 4: in We're going to live in one.

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Speaker 5: It's a safe, secure, and prosperous.

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Speaker 4: All right.

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Speaker 3: Peter Navarro, White House, Senior Counselor for Trade and Manufacturing,

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Speaker 3: appreciate the time