WEBVTT - Gov. Greg Abbott Talks Tariffs and Texas Economy

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

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<v Speaker 2>We're going to turn it over now though to Bloomberg's

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<v Speaker 2>Texas Bureau chief Julie Fine.

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<v Speaker 1>She's live in Dallas for a special interview that's with

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<v Speaker 1>Texas Governor Greg Amos.

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<v Speaker 3>Julie, Governor Abbitt, thank you so much for being with us,

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<v Speaker 3>my pleasure.

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<v Speaker 2>Thank you, Julie, Governor Abbot.

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<v Speaker 3>I do want to start with the news of the morning,

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<v Speaker 3>the presidents saying that he will have some type of

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<v Speaker 3>announcement on reciprocal terrorists in the coming days. Now he

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<v Speaker 3>has paused tariffs for now on Mexico and Canada. Bloomberg

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<v Speaker 3>had a story earlier this week in Laredo. Some port

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<v Speaker 3>cities very concerned about these Are you concerned this will

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<v Speaker 3>affect the Texas economy?

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<v Speaker 2>Not really, And there's a reason for that, and that's

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<v Speaker 2>because he.

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<v Speaker 1>Had these tariff announcements during his first term as president

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<v Speaker 1>and it didn't really impact the Texas economy. Listen, the

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<v Speaker 1>Texas economy is the most powerful kind of in the

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<v Speaker 1>United States, and we're able to withstand all types of

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<v Speaker 1>challenges and we're going to make our way through this.

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<v Speaker 2>And so to be honest, I'm not really concerned about it.

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<v Speaker 1>Also, we've seen as everybody observed, and that is sometimes

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<v Speaker 1>these tariffs are used strategically to achieve certain purposes, like

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<v Speaker 1>what happened with Mexico and Canada, and it worked out

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<v Speaker 1>to the United States advantage that certain border security measures

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<v Speaker 1>were taken, especially by Mexico as well as Finnel issues

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<v Speaker 1>concerning Canada. And so the United States is better now

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<v Speaker 1>because of the use of tariffs and the ability to

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<v Speaker 1>extract changes that are better.

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<v Speaker 2>For the country.

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<v Speaker 1>I have no doubt that'll be one of the goals

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<v Speaker 1>that the President will pursue with regard to other potential tariffs.

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<v Speaker 3>And you met with the President this week, and border

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<v Speaker 3>security of course the topic for you. You said that

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<v Speaker 3>Texas would offer military bases forty two hundred beds for

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<v Speaker 3>troops as well as four thousand jail cells. Now, border

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<v Speaker 3>crossings are down in the state of Texas. What do

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<v Speaker 3>you envision the long term plan for the state when

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<v Speaker 3>it comes to the border.

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<v Speaker 1>So you know, obviously under President of Biden, Texas needed

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<v Speaker 1>to take extraordinary steps because we had more than eleven

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<v Speaker 1>million people across the border, more than during any president

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<v Speaker 1>that see in the history of the United States of America,

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<v Speaker 1>and as a result, we built two military bases.

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<v Speaker 2>On the border, one in Del Rio, one Inegle.

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<v Speaker 1>Pass, and we're working with the Trump administration to provide

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<v Speaker 1>them holding facilities, detention facilities such as jail and prison

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<v Speaker 1>cells as they apprehend people and prepare them for deportation.

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<v Speaker 1>Bottom line, Texas is going to be all in to

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<v Speaker 1>assist the Trump administration.

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<v Speaker 2>But we have seen illegal.

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<v Speaker 1>Crossings decrease to a trickle.

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<v Speaker 2>Here's what we need to see.

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<v Speaker 1>We need to see the ongoing success by the Trump

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<v Speaker 1>administration reducing illegal immigration in a sustainable way, and that

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<v Speaker 1>will help Texas calibrate what our next actions will be. Obviously,

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<v Speaker 1>it should not be incumbent upon Texas taxpayers or any

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<v Speaker 1>state taxpayers to have to put that bill, and as

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<v Speaker 1>a result, that's why I've been working with members of Congress,

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<v Speaker 1>and I'll be back next week to talk to them,

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<v Speaker 1>to them even more about ensuring that Texas is going

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<v Speaker 1>to be able to have the resources we need and

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<v Speaker 1>a reimbursement for some of the costs that we incurred

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<v Speaker 1>to better secure the board.

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<v Speaker 3>I want to turn to the Texas economy, the newly

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<v Speaker 3>formed Texas Stock Exchange just submitted for approval. Now, if

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<v Speaker 3>companies dual list and the New York Stock Exchange and

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<v Speaker 3>the Texas Stock Exchange or the Texas Stock Exchange in NASDAQ,

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<v Speaker 3>how might that be different from other dual listings.

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<v Speaker 1>So it may be similar to what happened historically concerning

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<v Speaker 1>dual listings. But here I think we will see a

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<v Speaker 1>trend change in stock markets the way that we've seen

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<v Speaker 1>a trend change in the economy.

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<v Speaker 2>Now, let's go back to the year two thousand for example.

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<v Speaker 1>You know, New York City was still the home of

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<v Speaker 1>finance at that time, and other states were larger than

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<v Speaker 1>Texas economically. These days, Texas has the most powerful economy

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<v Speaker 1>in the United States. As well as we have more

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<v Speaker 1>people moving here at than any other state. We have

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<v Speaker 1>the fastest growing financial sector in the United States. Add

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<v Speaker 1>to that, the way you could subdivide the United States

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<v Speaker 1>into quadrants. If you look at the Southeastern quadrant from

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<v Speaker 1>Texas up to Oklahoma, over to the East Coast down

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<v Speaker 1>to Florida, then back over to Texas, that quadrant represents

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<v Speaker 1>almost all of the positive GDP growth in the United

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<v Speaker 1>States of America, and as a result, there would be

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<v Speaker 1>a kinship in that region for businesses that will be

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<v Speaker 1>far more likely to be aligned with the stock exchange

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<v Speaker 1>that we have in Texas than stock ex changes up

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<v Speaker 1>in New York. One last thing about that is we

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<v Speaker 1>need to ensure access to capital or oil and gas businesses,

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<v Speaker 1>businesses that are unique and important to just not only

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<v Speaker 1>the state of Texas, but also to this entire region.

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<v Speaker 1>We think that with the growing financial expertise that's going

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<v Speaker 1>to be taking place in Dallas in Texas, as well

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<v Speaker 1>as the growing accounting in the Southeastern quadrant, we're going

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<v Speaker 1>to see a lot of businesses that are interested in

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<v Speaker 1>locating here for access to capital. And know this, You've

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<v Speaker 1>already seen this jeerly with regard to incorporation. You've seen

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<v Speaker 1>Space ex for example, move their in corporation from Delaware

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<v Speaker 1>to Texas. We're seeing a lot of that take place

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<v Speaker 1>across the board with businesses because they see Texas as

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<v Speaker 1>a more business friendly state, especially after math of a

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<v Speaker 1>new law that assigned two years ago creating business course

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<v Speaker 1>in the state of Texas that now rival and some

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<v Speaker 1>businesses feel are superior to the business course in Delaware.

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<v Speaker 3>President Trump has a very broad education agenda, so do you,

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<v Speaker 3>thirty three states have some form of school choice. If

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<v Speaker 3>it happens in Texas, it would be the biggest. You've

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<v Speaker 3>tried to get this done for several sessions this time around.

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<v Speaker 3>Do you think Texas will have school choice at the

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<v Speaker 3>end of the session.

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<v Speaker 2>I really do, and there's several reasons for it, one

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<v Speaker 2>as you know, but others may not.

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<v Speaker 1>I campaigned this last election cycle to ensure that we

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<v Speaker 1>elect to the Texas House representatives who are going to

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<v Speaker 1>support school choice, and we were successful in that effort

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<v Speaker 1>and now should have more than enough posts of the

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<v Speaker 1>Texas House to get it passed. It's already passed the

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<v Speaker 1>Texas Senate, it passed the Texas Senate just this week,

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<v Speaker 1>and so we are on a pathway where it should

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<v Speaker 1>get passed.

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<v Speaker 2>And know this, as you.

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<v Speaker 1>Pointed out, the school choice in one form or another

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<v Speaker 1>exists in more than thirty states, and in those thirty

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<v Speaker 1>states there's not been a collapsing of the public school

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<v Speaker 1>system and said the public school system gets more competitive

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<v Speaker 1>while at the very same time giving parents' ability to

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<v Speaker 1>choose the school dis best for their child.

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<v Speaker 3>You were with the President earlier this week as he

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<v Speaker 3>signed some executive orders along the lines of the Texas legislature.

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<v Speaker 3>You have signed one as well regarding DEI that would

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<v Speaker 3>be in public offices. There is also a ban on

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<v Speaker 3>DEI in public universities. Are you hearing any feedback? What

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<v Speaker 3>are companies saying to you about this?

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<v Speaker 1>I think companies are tired of having dictate some posts

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<v Speaker 1>of them, such as DEI mandates, because their real goal

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<v Speaker 1>is to be a success for their shareholders, and the

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<v Speaker 1>way they can do that is to increase their paternal

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<v Speaker 1>investment without having to invest in social programs.

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<v Speaker 2>That may not be beneficial to.

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<v Speaker 1>The bottom line. And so I will say I've heard

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<v Speaker 1>nothing negative about it. I've heard many positive things about it.

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<v Speaker 1>We need to get back to core value sets. But

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<v Speaker 1>understand this also, and that is what di I programs

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<v Speaker 1>often promote is discrimination. Is a violation of the US Constitution,

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<v Speaker 1>of the Texas Constitution, of the civil rights laws to

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<v Speaker 1>discriminate on the basis of race.

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<v Speaker 2>What many d I programs do.

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<v Speaker 1>They promote one race while not advancing others, and that

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<v Speaker 1>violates the Constitution of Texas and federal laws.

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<v Speaker 3>In the very short time I have left with you, you

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<v Speaker 3>touched on this earlier elon Musk arguably texas most well

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<v Speaker 3>known residents. What do you think of his influence right now?

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<v Speaker 1>Listen, he's doing to the government sector what he's done

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<v Speaker 1>in the private sector, and he's going to have success

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<v Speaker 1>in the government sector like he has in the private sector.

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<v Speaker 1>One thing we desperately need in our country is to

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<v Speaker 1>shrink government. The government has grown too large, and one

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<v Speaker 1>way to save money for taxpayers and make government more

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<v Speaker 1>efficient is to do exactly what Elon is doing. And

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<v Speaker 1>I think most Americans are very proud of what he's acomplishing.

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<v Speaker 3>Governor Rabbits, see you in Austin soon. Thanks so much

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<v Speaker 3>for your time.