WEBVTT - US Commerce Secretary Howard Lutnick Talks New US-China Trade Truce

0:00:02.520 --> 0:00:07.040
<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

0:00:07.760 --> 0:00:11.240
<v Speaker 2>I'm Kaylee Lines alongside Joe Matthew in Washington, and we

0:00:11.320 --> 0:00:12.960
<v Speaker 2>want to go live to the north lawn of the

0:00:12.960 --> 0:00:15.800
<v Speaker 2>White House now where we're joined in an exclusive conversation

0:00:16.200 --> 0:00:20.080
<v Speaker 2>by the US Commerce Secretary Howard Lutnik. Mister Secretary, welcome

0:00:20.079 --> 0:00:22.360
<v Speaker 2>back to Bloomberg TV and Radio. You, of course, just

0:00:22.480 --> 0:00:25.439
<v Speaker 2>left the East Room where President Trump held this one big,

0:00:25.480 --> 0:00:29.080
<v Speaker 2>beautiful event celebrating a bill that has yet to pass

0:00:29.480 --> 0:00:32.919
<v Speaker 2>the Senate or repass the House. And obviously the parliamentarian

0:00:32.960 --> 0:00:35.720
<v Speaker 2>and the Senate has thrown up some hurdles today. Is

0:00:35.760 --> 0:00:39.559
<v Speaker 2>the parliamentarian making this effort harder, making it harder to

0:00:39.560 --> 0:00:42.000
<v Speaker 2>meet the president's deadline of July fourth.

0:00:43.520 --> 0:00:47.760
<v Speaker 3>I think reconciliation has a process, and we all respect

0:00:47.800 --> 0:00:50.440
<v Speaker 3>the process. So I think they're just going through the

0:00:50.479 --> 0:00:52.159
<v Speaker 3>way they do things in the Senate, and I think

0:00:52.159 --> 0:00:53.800
<v Speaker 3>it's going to work out great for the president.

0:00:55.000 --> 0:00:57.040
<v Speaker 4>Secretary, It's good to see it. Welcome to balance and

0:00:57.080 --> 0:01:00.280
<v Speaker 4>power once again. Your thoughts on some of the complicatedtions

0:01:00.280 --> 0:01:03.080
<v Speaker 4>that we're hearing about. Beyond the parliamentarian, we've got the

0:01:03.120 --> 0:01:05.880
<v Speaker 4>Salt Caucus to satisfy. There are still questions about the

0:01:05.959 --> 0:01:11.440
<v Speaker 4>level of cuts in the President's big, beautiful bill. Timeline

0:01:11.840 --> 0:01:16.200
<v Speaker 4>is one thing, the final results is another. Here, when

0:01:16.840 --> 0:01:19.240
<v Speaker 4>you consider what we just saw there in the East room,

0:01:19.360 --> 0:01:20.800
<v Speaker 4>what is there to celebrate today?

0:01:22.000 --> 0:01:24.040
<v Speaker 1>Well, I think today was motivational.

0:01:24.080 --> 0:01:26.760
<v Speaker 3>You know, what we're doing is we're getting everybody together

0:01:26.840 --> 0:01:29.759
<v Speaker 3>and saying, let's go, let's go pass this bill. Right,

0:01:29.959 --> 0:01:32.280
<v Speaker 3>there's lots of people, as the President said, there's lots

0:01:32.319 --> 0:01:35.720
<v Speaker 3>of people who are grand standards. A few people they

0:01:35.720 --> 0:01:37.759
<v Speaker 3>want to make their point, they want to get their

0:01:37.800 --> 0:01:40.839
<v Speaker 3>moment in the sun, you know, their big moment of fame.

0:01:41.200 --> 0:01:44.120
<v Speaker 3>But in the end of the day, the Republican Party

0:01:44.360 --> 0:01:45.640
<v Speaker 3>is behind Donald Trump.

0:01:45.800 --> 0:01:47.160
<v Speaker 1>They're going to pass this bill.

0:01:47.440 --> 0:01:50.080
<v Speaker 3>It'll be the largest tax cut in the history of

0:01:50.080 --> 0:01:53.120
<v Speaker 3>the United States of America. Or imagine if they didn't

0:01:53.160 --> 0:01:56.160
<v Speaker 3>pass it, it would be the largest tax increase. So

0:01:56.320 --> 0:01:59.280
<v Speaker 3>who isn't going to back the largest tax cut in

0:01:59.320 --> 0:02:03.200
<v Speaker 3>the history of no tax on tips, no tax on overtime,

0:02:03.560 --> 0:02:06.600
<v Speaker 3>really delivering on his promises. So I think we're all

0:02:06.640 --> 0:02:09.080
<v Speaker 3>really excited about what's coming, and it's coming in the

0:02:09.120 --> 0:02:09.840
<v Speaker 3>next week or two.

0:02:11.360 --> 0:02:14.120
<v Speaker 2>Well, when we consider who might not be super eager

0:02:14.160 --> 0:02:17.919
<v Speaker 2>to vote on this package, mister Secretary, the aforementioned Joe

0:02:18.000 --> 0:02:21.120
<v Speaker 2>Caucus that or Salt Caucus that Joe was just referring to,

0:02:21.680 --> 0:02:25.720
<v Speaker 2>is still threatening basically not to support this measure. They

0:02:25.720 --> 0:02:27.880
<v Speaker 2>found the first offer from the Treasury Department on some

0:02:27.960 --> 0:02:31.440
<v Speaker 2>kind of compromise unsatisfactory. We understand there will be more

0:02:31.480 --> 0:02:33.840
<v Speaker 2>meetings happening today, but are you, as a New Yorker

0:02:33.880 --> 0:02:36.680
<v Speaker 2>going to have to get involved in this as well?

0:02:36.680 --> 0:02:38.280
<v Speaker 2>You know how close to home this issue is for

0:02:38.320 --> 0:02:38.880
<v Speaker 2>those members.

0:02:40.040 --> 0:02:42.679
<v Speaker 3>Sure, but you know what's going to happen is these

0:02:42.760 --> 0:02:46.320
<v Speaker 3>members and the senators they are talking, they're pounding it out,

0:02:46.360 --> 0:02:49.320
<v Speaker 3>they're working it out, and I am confident they're going

0:02:49.360 --> 0:02:51.560
<v Speaker 3>to reach a consensus and this.

0:02:51.440 --> 0:02:53.560
<v Speaker 1>Bill is going to pass. You know, look, this is

0:02:53.600 --> 0:02:54.240
<v Speaker 1>hard fought.

0:02:54.360 --> 0:02:58.240
<v Speaker 3>It's one big, beautiful bill, which means.

0:02:58.040 --> 0:02:59.240
<v Speaker 1>The keyword is big.

0:03:00.320 --> 0:03:03.160
<v Speaker 3>All of the things that the President promised, and that's

0:03:03.200 --> 0:03:05.559
<v Speaker 3>a huge amount of things to get accomplished.

0:03:05.720 --> 0:03:09.640
<v Speaker 1>And I think we're feeling positive and we're feeling optimistic.

0:03:09.080 --> 0:03:11.320
<v Speaker 3>And sure, is it a lot of work, Oh my gosh,

0:03:11.320 --> 0:03:14.000
<v Speaker 3>it's a lot of work. Speaker Johnson and Senator Thuna

0:03:14.080 --> 0:03:16.400
<v Speaker 3>doing a great job. And I think you're going to

0:03:16.440 --> 0:03:19.640
<v Speaker 3>see this pass. It's hard work, but it's coming our way.

0:03:20.800 --> 0:03:24.520
<v Speaker 4>Secretary, I'm really interested in exploring the relationship between the

0:03:24.560 --> 0:03:27.360
<v Speaker 4>tax bill and tariffs, if you can maybe take us

0:03:27.400 --> 0:03:29.880
<v Speaker 4>by the hand here, Does the tax bill only work

0:03:30.360 --> 0:03:33.400
<v Speaker 4>when you have the revenue coming from tariffs? And we're

0:03:33.400 --> 0:03:36.360
<v Speaker 4>of course having this conversation as we walk ever closer

0:03:36.360 --> 0:03:39.440
<v Speaker 4>to July ninth, the deadline here for the reciprocals. If

0:03:39.440 --> 0:03:42.800
<v Speaker 4>the bill alters anymore, does the tariff program need to

0:03:42.880 --> 0:03:43.480
<v Speaker 4>change with it?

0:03:44.760 --> 0:03:45.800
<v Speaker 1>Not at all.

0:03:45.920 --> 0:03:50.640
<v Speaker 3>The tariff program is in the power of the presidency, right.

0:03:50.720 --> 0:03:54.040
<v Speaker 3>Congress has given the president the power to work on

0:03:54.120 --> 0:03:55.880
<v Speaker 3>these tariffs and to set these tariffs.

0:03:55.880 --> 0:03:57.520
<v Speaker 1>So that's presidential power.

0:03:57.720 --> 0:04:02.200
<v Speaker 3>So what's really interesting, This big, beautiful bill does not

0:04:02.480 --> 0:04:07.560
<v Speaker 3>count the eighty eight billion dollars of tariff revenue we've received,

0:04:07.640 --> 0:04:09.320
<v Speaker 3>and now we're earning.

0:04:09.320 --> 0:04:12.160
<v Speaker 1>Up to thirty billion a month in.

0:04:12.160 --> 0:04:15.160
<v Speaker 3>Tariff revenue so far, and as you get to July ninth,

0:04:15.160 --> 0:04:17.560
<v Speaker 3>that number is only going to go higher.

0:04:17.680 --> 0:04:18.640
<v Speaker 1>We're going to announce a.

0:04:18.640 --> 0:04:20.960
<v Speaker 3>Whole bunch of deals over the next week or so,

0:04:21.320 --> 0:04:23.200
<v Speaker 3>and then we're just going to send letters out to

0:04:23.240 --> 0:04:26.960
<v Speaker 3>everybody who's responded to us put them in the right category.

0:04:26.560 --> 0:04:27.200
<v Speaker 1>And awful go.

0:04:27.400 --> 0:04:30.640
<v Speaker 3>So there's going to be tens of billions per month,

0:04:30.920 --> 0:04:33.280
<v Speaker 3>and that it's not included in the bill.

0:04:33.360 --> 0:04:35.839
<v Speaker 1>So when they talk about the deficit, when they're.

0:04:35.720 --> 0:04:39.000
<v Speaker 3>Talking about the bill, they're only talking about the things

0:04:39.040 --> 0:04:43.480
<v Speaker 3>that that bill touches. The extra four hundred or five

0:04:43.560 --> 0:04:46.960
<v Speaker 3>hundred billion dollars a year that the tariffs bring in,

0:04:47.040 --> 0:04:49.719
<v Speaker 3>the new tariffs bring in, that just doesn't count for

0:04:49.760 --> 0:04:53.120
<v Speaker 3>the bill. But of course, of course that kash counts

0:04:53.160 --> 0:04:54.839
<v Speaker 3>for America.

0:04:55.320 --> 0:04:57.560
<v Speaker 2>Mister Secretary, you just said that you're going to announce

0:04:57.560 --> 0:04:59.200
<v Speaker 2>a whole bunch of deals over the course of the

0:04:59.240 --> 0:05:02.080
<v Speaker 2>next week with what countries, And does that include the

0:05:02.200 --> 0:05:06.000
<v Speaker 2>China deal the President suggested was signed yesterday? What is that?

0:05:07.040 --> 0:05:10.440
<v Speaker 1>So the China deal? We inked the deal.

0:05:10.600 --> 0:05:15.279
<v Speaker 3>You remember, we had a trip to Geneva and then

0:05:15.320 --> 0:05:18.000
<v Speaker 3>that was being slow played. We got back together in

0:05:18.000 --> 0:05:22.040
<v Speaker 3>London and that deal was signed and sealed two days ago.

0:05:22.320 --> 0:05:25.640
<v Speaker 3>President just said it just the other just you know,

0:05:25.920 --> 0:05:28.279
<v Speaker 3>I don't know, fifteen minutes ago. And then he also

0:05:28.360 --> 0:05:31.440
<v Speaker 3>suggested that we are, of course at the very close

0:05:31.440 --> 0:05:34.240
<v Speaker 3>finish line with India. Of course, the way these deals

0:05:34.279 --> 0:05:37.400
<v Speaker 3>happen is their prime minister and their parliament have to

0:05:37.440 --> 0:05:40.600
<v Speaker 3>approve it. And the President likes to close these deals himself.

0:05:40.640 --> 0:05:42.680
<v Speaker 3>I mean, he's the deal maker. He loves to close it.

0:05:43.000 --> 0:05:46.520
<v Speaker 3>I think we have deal after deal after deal. The

0:05:46.560 --> 0:05:48.839
<v Speaker 3>President's going to make his calls. He's going to decide

0:05:48.880 --> 0:05:51.760
<v Speaker 3>exactly the finishing touches on them, and then what we're

0:05:51.760 --> 0:05:53.520
<v Speaker 3>going to do is we're going to lay out a

0:05:53.600 --> 0:05:58.120
<v Speaker 3>structure of all the different kinds of tariff arrangements with

0:05:58.240 --> 0:06:01.640
<v Speaker 3>different countries. Right, there were countries with huge deficits, there

0:06:01.640 --> 0:06:03.479
<v Speaker 3>are countries that are balanced. We're going to set that

0:06:03.560 --> 0:06:05.920
<v Speaker 3>all up and get that ready for July ninth.

0:06:06.800 --> 0:06:08.920
<v Speaker 4>So it sounds to me the Secretary correct me if

0:06:08.920 --> 0:06:11.440
<v Speaker 4>I'm wrong as I listen to you, that we either

0:06:11.520 --> 0:06:14.080
<v Speaker 4>get eighty eight deals announced in the next two weeks

0:06:14.640 --> 0:06:16.760
<v Speaker 4>or there's going to be action one way or the

0:06:16.800 --> 0:06:19.640
<v Speaker 4>other by this administration that July ninth will be conclusive.

0:06:19.680 --> 0:06:22.320
<v Speaker 4>If there's no deal, here's the newer sick orders tariff.

0:06:22.360 --> 0:06:24.960
<v Speaker 1>Is that right, of course? So what we're going to

0:06:25.040 --> 0:06:28.000
<v Speaker 1>do is we'll announce some deals. But basically the deals we're.

0:06:27.839 --> 0:06:29.800
<v Speaker 3>Going to announce are are sort of the head of

0:06:29.800 --> 0:06:33.000
<v Speaker 3>the class, the structural spot in the line, and then

0:06:33.080 --> 0:06:36.880
<v Speaker 3>all the other countries will fit behind those categories.

0:06:37.120 --> 0:06:38.480
<v Speaker 1>Right, so we're going to do top.

0:06:38.279 --> 0:06:40.600
<v Speaker 3>Ten deals, put them in the right category, and then

0:06:40.640 --> 0:06:43.400
<v Speaker 3>these other countries will fit behind. So you'll have South

0:06:43.440 --> 0:06:45.880
<v Speaker 3>American deals and you'll have African deals. You'll have it

0:06:45.920 --> 0:06:48.960
<v Speaker 3>all structured and set up, and that's the model how

0:06:49.000 --> 0:06:52.960
<v Speaker 3>you do leadership. And we will put these people in

0:06:53.000 --> 0:06:56.440
<v Speaker 3>their proper buckets on July ninth, So those who have

0:06:56.560 --> 0:06:59.600
<v Speaker 3>deals will have deals, and everybody else who's been negotiating

0:06:59.640 --> 0:07:01.880
<v Speaker 3>with us, they'll get a response from US, and then

0:07:01.920 --> 0:07:03.599
<v Speaker 3>they'll go into that package and.

0:07:03.680 --> 0:07:06.520
<v Speaker 1>July ninth will go forward. And as the President said.

0:07:06.400 --> 0:07:08.599
<v Speaker 3>If people want to come back and negotiate further, they're

0:07:08.760 --> 0:07:12.080
<v Speaker 3>entitled to, but that tariff rate will be set and

0:07:12.240 --> 0:07:12.800
<v Speaker 3>off will go.

0:07:14.440 --> 0:07:18.160
<v Speaker 2>Where does Europe fall in that sequence, mister Secretary, There

0:07:18.200 --> 0:07:21.120
<v Speaker 2>was reporting from Politico today that the European Commission has

0:07:21.200 --> 0:07:23.880
<v Speaker 2>received the latest offer from the US. Are you expecting

0:07:23.920 --> 0:07:26.440
<v Speaker 2>that offer to potentially be accepted by next week?

0:07:27.800 --> 0:07:30.640
<v Speaker 1>I think that Europe has done an excellent job.

0:07:30.960 --> 0:07:33.280
<v Speaker 3>They are working hard. They remember it was a very

0:07:33.400 --> 0:07:36.360
<v Speaker 3>very slow process. If you remember and the President put

0:07:36.360 --> 0:07:37.040
<v Speaker 3>out a truth.

0:07:37.360 --> 0:07:38.520
<v Speaker 1>Kind of motivated them.

0:07:38.560 --> 0:07:41.360
<v Speaker 3>With that truth, as Donald Trump is capable of doing,

0:07:41.600 --> 0:07:44.200
<v Speaker 3>they came to the table, then they started negotiating.

0:07:44.200 --> 0:07:46.600
<v Speaker 1>They really put it on the table. And I'm actually

0:07:46.840 --> 0:07:48.000
<v Speaker 1>I've become optimistic.

0:07:48.080 --> 0:07:50.400
<v Speaker 3>I think if you had asked me three weeks ago

0:07:50.440 --> 0:07:52.640
<v Speaker 3>before that truth, I would have said no way. But

0:07:53.080 --> 0:07:56.240
<v Speaker 3>since that truth by the President, I really feel I'm optimistic.

0:07:56.560 --> 0:07:58.360
<v Speaker 3>I think we could get a deal done now Europe

0:07:58.360 --> 0:07:59.640
<v Speaker 3>will be right at the end. But you got to

0:07:59.640 --> 0:08:02.600
<v Speaker 3>remember there are largest trading partners. To the fact that

0:08:02.640 --> 0:08:05.200
<v Speaker 3>they come at the very end make some sense. It's deep,

0:08:05.240 --> 0:08:08.080
<v Speaker 3>it's complex, but I'm kind of optimistic now. I wasn't

0:08:08.080 --> 0:08:11.480
<v Speaker 3>optimistic three weeks ago, but now, since the President got involved,

0:08:11.480 --> 0:08:12.360
<v Speaker 3>I'm pretty optimistic.

0:08:12.440 --> 0:08:16.200
<v Speaker 4>Actually, how about that fascinating secretary before you leave us?

0:08:16.360 --> 0:08:19.360
<v Speaker 4>I just went to trump card dot gov says trump

0:08:19.400 --> 0:08:21.720
<v Speaker 4>Card is coming. It's still on the way. When does

0:08:21.760 --> 0:08:24.680
<v Speaker 4>this happen? How many will you sell when this is

0:08:24.720 --> 0:08:27.400
<v Speaker 4>finally available? You've been saying that the phone's ringing off

0:08:27.440 --> 0:08:28.880
<v Speaker 4>the hook. Here where are they coming from?

0:08:29.240 --> 0:08:29.360
<v Speaker 1>All?

0:08:29.440 --> 0:08:32.960
<v Speaker 3>Right? Our waiting list, right, and we've got a sort

0:08:33.000 --> 0:08:36.160
<v Speaker 3>of a filtered waiting list where we go in and

0:08:36.200 --> 0:08:37.360
<v Speaker 3>make sure the emails.

0:08:37.000 --> 0:08:38.360
<v Speaker 1>Are correct, the people are correct.

0:08:38.760 --> 0:08:43.120
<v Speaker 3>Seventy five thousand people online.

0:08:42.520 --> 0:08:45.480
<v Speaker 1>At five million each. Right, we're talking just under four

0:08:45.720 --> 0:08:49.320
<v Speaker 1>hundred billion dollars with the people online waiting for it

0:08:49.360 --> 0:08:49.959
<v Speaker 1>to go live.

0:08:50.040 --> 0:08:52.960
<v Speaker 3>So obviously our focus is the big beautiful bill, and

0:08:53.000 --> 0:08:55.080
<v Speaker 3>once the big beautiful bill comes.

0:08:55.120 --> 0:08:56.600
<v Speaker 1>Off, we're going to go with the Trump card.

0:08:56.840 --> 0:08:59.880
<v Speaker 3>And I'm really really excited for our objectives.

0:09:00.000 --> 0:09:02.280
<v Speaker 1>That has two things. Both it'll bring in hundreds of

0:09:02.320 --> 0:09:02.760
<v Speaker 1>billions of.

0:09:02.760 --> 0:09:05.520
<v Speaker 3>Dollars to reduce the deficit of the United States of America,

0:09:05.600 --> 0:09:09.520
<v Speaker 3>and it brings in great entrepreneurs into America and they'll

0:09:09.520 --> 0:09:11.000
<v Speaker 3>build our economy.

0:09:10.520 --> 0:09:13.360
<v Speaker 1>As well, So you get a double positive from the

0:09:13.400 --> 0:09:14.080
<v Speaker 1>Trump cart.

0:09:15.160 --> 0:09:18.320
<v Speaker 4>Howard Lutnik, US Commerce Secretary, on the north lawn of

0:09:18.320 --> 0:09:20.880
<v Speaker 4>the White House, where it's well in excess of ninety

0:09:20.880 --> 0:09:23.600
<v Speaker 4>degrees today. We appreciate your insights, Secretary,