WEBVTT - Bloomberg Surveillance TV: April 3, 2025 0:00:00.080 --> 0:00:06.760 Bloomberg Audio Studios, Podcasts, radio news. 0:00:11.600 --> 0:00:15.440 This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 0:00:15.440 --> 0:00:18.400 with Lisa Bromwitz and a Marie Hordern. Join us each 0:00:18.480 --> 0:00:21.360 day for insight from the best in markets, economics, and 0:00:21.400 --> 0:00:24.720 geopolitics from our global headquarters in New York City. We 0:00:24.760 --> 0:00:27.400 are live on Bloomberg Television weekday mornings from six to 0:00:27.480 --> 0:00:31.000 nine am Eastern. Subscribe to the podcast on Apple, Spotify 0:00:31.200 --> 0:00:33.479 or anywhere else you listen, and as always, on the 0:00:33.479 --> 0:00:37.280 Bloomberg Terminal and the Bloomberg Business app. The Common Secretary 0:00:37.320 --> 0:00:39.440 joins us now for more. Mister Secretary, thank you for 0:00:39.479 --> 0:00:41.040 making time for us on a busy morning for you 0:00:41.120 --> 0:00:43.360 and the team appreciate it. As always, let's talk about 0:00:43.360 --> 0:00:46.720 those deadlines, those dates. Baseline tariff start on April fifth, 0:00:47.000 --> 0:00:49.880 Higher tariff start on April ninth. What happens between now 0:00:50.159 --> 0:00:50.760 and then. 0:00:53.159 --> 0:00:57.280 Well it really We are talking to all the trade ministers, 0:00:57.280 --> 0:01:01.520 but nothing really happens between now and then. What CEOs 0:01:01.560 --> 0:01:05.800 are thinking about is, finally, let's think about building in America. 0:01:06.080 --> 0:01:09.880 You've got almost five trillion dollars of commitments coming to 0:01:10.040 --> 0:01:13.280 America to build their factories. That number is only going 0:01:13.319 --> 0:01:16.920 to grow as people realize it's time to bring manufacturing 0:01:16.959 --> 0:01:20.720 home to America, where the greatest economy and the greatest 0:01:20.760 --> 0:01:23.480 market in the world is. It's time for America to 0:01:23.480 --> 0:01:26.440 stop taking care of every other economy in the world 0:01:26.680 --> 0:01:30.119 and building them up. Let's build the American economy up. 0:01:30.280 --> 0:01:34.000 Let's build American GDP, and you're going to see great 0:01:34.160 --> 0:01:35.400 growth from America. 0:01:35.520 --> 0:01:38.319 Mister Secretary, as you know, capitals around the world watching 0:01:38.319 --> 0:01:40.960 this program right now wants to understand what they can 0:01:41.040 --> 0:01:43.840 do between now and then to avoid those tariffs. What 0:01:44.000 --> 0:01:46.840 do they need to do. Have you communicated any metrics 0:01:46.840 --> 0:01:47.919 to them, whatsoever. 0:01:50.280 --> 0:01:52.840 Well, we've been talking to the trade ministers of the 0:01:52.880 --> 0:01:56.880 major trading partners for more than a month, and we've 0:01:56.920 --> 0:02:00.000 been talking to them, and so you have to understand it. 0:02:00.160 --> 0:02:03.000 And this is what's difficult for your audience to understand. 0:02:03.120 --> 0:02:05.800 That tariffs are easy to understand. Right, we have a 0:02:05.800 --> 0:02:08.520 two and a half percent tariff on autos, and Europe 0:02:08.520 --> 0:02:12.360 has a ten percent tariff, and other people have twenty 0:02:12.400 --> 0:02:15.880 percent or fifteen percent tariff, and that's sort of easy, 0:02:15.919 --> 0:02:18.280 so they can all come down. But it's the non 0:02:18.480 --> 0:02:22.280 tariff trade barriers that are the difference. Some countries have 0:02:22.600 --> 0:02:25.920 that and they take that that tax of twenty percent 0:02:26.320 --> 0:02:29.720 and they use it to subsidize the production of their 0:02:29.880 --> 0:02:34.239 domestic industries. That's why we can't sell cars there because 0:02:34.240 --> 0:02:37.440 they give a rebate either they give it directly. One 0:02:37.520 --> 0:02:40.520 country told me yesterday that they give it directly to 0:02:40.560 --> 0:02:44.160 their car manufacturer to make their cars cheaper. That's why 0:02:44.200 --> 0:02:48.200 they sell successfully and we don't. Others take the money 0:02:48.200 --> 0:02:52.120 and use it and give cheap energy costs to this production. 0:02:52.240 --> 0:02:55.399 And that's why the steel industry. Why is everybody else 0:02:55.440 --> 0:02:57.760 so good at steel and we're not, It's because their 0:02:57.800 --> 0:03:02.320 governments subsidize it. We really need to change the way 0:03:02.760 --> 0:03:06.680 trade works around the world. It's tariffs, but don't get 0:03:06.720 --> 0:03:10.520 confused that these non tariff trade barriers, they are the 0:03:10.639 --> 0:03:12.440 monster that needs to be slaved. 0:03:12.560 --> 0:03:16.600 You've been consistent about this argument subsidized production, manipulated currencies, 0:03:16.600 --> 0:03:19.320 foreign trade barriers, something the President addressed just last night. 0:03:19.360 --> 0:03:21.480 Can we just sit on the numbers just for a moment. 0:03:21.520 --> 0:03:24.720 The EU twenty percent, twenty four percent on Japan, thirty 0:03:24.720 --> 0:03:27.920 four percent on China. Just what exactly was the methodology 0:03:28.280 --> 0:03:30.880 to go through all those different barriers to entry that 0:03:30.960 --> 0:03:32.000 you want to knock down. 0:03:32.120 --> 0:03:33.560 How did you come up with these numbers? 0:03:35.680 --> 0:03:39.440 Well, the Council of Economic Advisors, you know, the PhD 0:03:39.760 --> 0:03:45.600 economists of the administration, coupled with USTR, the United States 0:03:45.680 --> 0:03:48.840 Trade Representative, they publish a book called Trade Barriers about 0:03:48.840 --> 0:03:52.440 this thick right, and they've been analyzing for decades all 0:03:52.520 --> 0:03:57.000 of these different tools that these other economies use to 0:03:57.480 --> 0:03:58.520 hurt America. 0:03:58.920 --> 0:03:59.080 Right. 0:03:59.160 --> 0:04:01.880 They won't take our corn in India, they won't take 0:04:01.920 --> 0:04:05.600 our beef almost anywhere, it's unbelievable. 0:04:05.640 --> 0:04:08.080 They won't take our agricultural products. 0:04:08.160 --> 0:04:12.800 They just treat us badly because we've allowed them to 0:04:12.920 --> 0:04:13.880 treat us badly. 0:04:14.160 --> 0:04:16.240 And when you finally go back at them and say 0:04:16.440 --> 0:04:17.200 this has got to. 0:04:17.279 --> 0:04:19.560 End, it's going to be tough for them because they've 0:04:19.560 --> 0:04:24.960 built their whole social network, their whole economies on basically 0:04:25.320 --> 0:04:28.760 exploiting America. And Donald Trump has said it's time for 0:04:28.839 --> 0:04:30.120 America to change that. 0:04:30.440 --> 0:04:32.760 It's going to be difficult for them to change that. 0:04:33.120 --> 0:04:36.320 But eventually America is going to be treated fairly and 0:04:36.400 --> 0:04:42.240 the production of American factories is going to the incredibly 0:04:42.320 --> 0:04:45.560 strong growth and you're going to see that growth reverberate 0:04:45.720 --> 0:04:51.360 through GDP. Remember, people forget the d gross domestic production. 0:04:51.720 --> 0:04:55.120 If you buy a foreign made Toyota, that is not 0:04:55.240 --> 0:04:59.400 domestic production. Making a car in America that's domestics. 0:04:59.480 --> 0:05:01.360 It's a secondar We could just sit on the methodology 0:05:01.520 --> 0:05:03.960 just for a beat longer and address it directly. This 0:05:04.080 --> 0:05:05.920 is what we understand, what most people understand. 0:05:06.000 --> 0:05:06.440 You did that. 0:05:06.560 --> 0:05:09.080 Essentially, you divided the country's trade surplus with the United 0:05:09.080 --> 0:05:12.240 States by the total exports and then divided the number 0:05:12.240 --> 0:05:15.640 by two and produce this discounted rate. If you're a 0:05:15.680 --> 0:05:19.440 trade partner right now and you've just watched how America's 0:05:19.480 --> 0:05:22.359 put together that policy, how are you meant to negotiate 0:05:22.400 --> 0:05:22.720 with that? 0:05:22.960 --> 0:05:24.560 What are those countries meant to say? What are they 0:05:24.600 --> 0:05:25.040 meant to do? 0:05:27.560 --> 0:05:33.120 The country is understand that their trade policies were exploited, 0:05:34.040 --> 0:05:35.920 in exploitation of America. 0:05:36.120 --> 0:05:37.479 Everybody understands. 0:05:37.760 --> 0:05:41.279 One country actually said to me, I was amazed that 0:05:41.320 --> 0:05:43.719 we were able to get away with it for this long. 0:05:44.360 --> 0:05:45.280 I mean, imagine that. 0:05:45.560 --> 0:05:48.680 We share that country, Because they don't. They never say 0:05:48.680 --> 0:05:51.640 this on the record. You've got the potential, the option, 0:05:51.760 --> 0:05:55.359 the ability right now to share say it who's saying 0:05:55.400 --> 0:05:55.920 that to you? 0:05:56.600 --> 0:05:58.239 Come on, oh stop. 0:05:58.400 --> 0:06:02.080 I mean the country told us that they give the 0:06:02.160 --> 0:06:03.560 subsidy to the car companies. 0:06:03.600 --> 0:06:04.320 Another country he. 0:06:04.400 --> 0:06:07.200 Admitted that they give their subsidy to their steel companies. 0:06:07.480 --> 0:06:10.159 I mean, they're not going to repeat it on here. 0:06:10.200 --> 0:06:13.200 What's on here is that this is going to change. 0:06:13.560 --> 0:06:16.800 That it's time for these things to change, and they're 0:06:16.800 --> 0:06:19.920 going to be more fair and America is going to 0:06:19.920 --> 0:06:20.400 do well. 0:06:20.440 --> 0:06:23.640 And in the middle of that time, all the. 0:06:23.600 --> 0:06:25.719 Factories are going to come back to America. You're going 0:06:25.760 --> 0:06:29.320 to see an enormous number of factories come back to America, 0:06:29.440 --> 0:06:33.120 or you're going to see incredible change globally. It's going 0:06:33.120 --> 0:06:35.680 to take time, but the factories are going to be 0:06:35.680 --> 0:06:36.520 built in America. 0:06:36.600 --> 0:06:38.000 That's the most important thing. 0:06:38.279 --> 0:06:41.359 Donald Trump wants to see steel and aluminum made in 0:06:41.400 --> 0:06:43.840 America so we could defend ourselves. He's going to want 0:06:43.880 --> 0:06:47.799 to see pharmaceuticals made in America. Who on your audience 0:06:47.880 --> 0:06:52.640 doesn't want us to make the ingredients for pharmaceuticals todaybody 0:06:52.640 --> 0:06:56.799 ever ask themselves why the ingredients for our drugs should 0:06:56.880 --> 0:07:00.680 be made in China? Why is that that's not labor, 0:07:01.200 --> 0:07:05.680 that's factor, that's high tech factories in China. Why because 0:07:05.720 --> 0:07:10.800 their government helped create it. They created cheap goods there, 0:07:11.200 --> 0:07:15.000 they oversupply them, They drive the capitalist American who don't 0:07:15.040 --> 0:07:17.520 think like this out of business, and then they make 0:07:17.560 --> 0:07:18.280 it in China. 0:07:18.400 --> 0:07:20.840 And Donald Trump has said, I've had nothing. 0:07:21.440 --> 0:07:24.040 It was the secretary. Most people weren't totally agree with you. 0:07:24.080 --> 0:07:27.440 They would totally agree with you because China is an adversary. 0:07:27.840 --> 0:07:30.920 It is not a partner for the United States. Europe 0:07:30.920 --> 0:07:33.840 would make a very different argument. And Europe might be 0:07:33.880 --> 0:07:35.960 wondering this morning why they're being thrown into the same 0:07:36.000 --> 0:07:41.280 bunket as the Chinese. What explanation can you give them? 0:07:41.560 --> 0:07:46.080 Europe does not treat our products fairly. They do not 0:07:46.280 --> 0:07:52.160 treat our companies fairly. They treat themselves incredibly well, to 0:07:52.280 --> 0:07:54.640 the detriment of the United States of America. 0:07:55.120 --> 0:07:57.720 Right, it is time for them to treat us fairly. 0:07:58.240 --> 0:08:01.560 And that is the point, is not it's not free 0:08:01.560 --> 0:08:04.760 and fair trade there. Tariffs are higher, the non tariff 0:08:04.800 --> 0:08:09.120 trade barriers are incredible. Like I'd asked you, why don't 0:08:09.160 --> 0:08:13.600 they take our beef? Why don't they take our agricultural products? 0:08:14.000 --> 0:08:14.360 Why? 0:08:14.640 --> 0:08:18.160 Because they don't want them? Because they want to make 0:08:18.200 --> 0:08:21.680 the money themselves. Why is it okay for every other 0:08:21.800 --> 0:08:25.040 country to feel this way, and it's not okay for America. 0:08:25.080 --> 0:08:28.560 I tell you why, because we were the world's piggybank. 0:08:29.000 --> 0:08:32.880 And Donald Trump has said our thirty six trillion dollar deficit, 0:08:33.160 --> 0:08:37.360 our one point two trillion dollar trade deficit, one point 0:08:37.400 --> 0:08:41.520 two trillion dollars. We buy other people's things more than 0:08:41.559 --> 0:08:45.559 we sell them. Ours has got to be rebalanced. It's 0:08:45.600 --> 0:08:50.559 a national emergency. Let's fix America and we can. 0:08:51.559 --> 0:08:54.240 Mister Secretary, for you, it's beef for the president. 0:08:54.280 --> 0:08:55.600 I know it's Ford and Berlin's. 0:08:55.600 --> 0:08:58.760 But there are products that Europe takes, things like LNG, 0:08:59.320 --> 0:09:02.640 things like Microsoft services. Do you want to see balance 0:09:02.760 --> 0:09:04.680 trade product by product? 0:09:07.240 --> 0:09:10.640 No? No, no, it's not product by products. It's a 0:09:10.679 --> 0:09:12.800 big macro issue. Okay. 0:09:13.280 --> 0:09:18.200 Fairness comes when one decides that they can stop. They 0:09:18.240 --> 0:09:20.719 can't get away with it any longer. So let's make 0:09:20.760 --> 0:09:23.320 a great deal with the United States of America. Okay, 0:09:23.200 --> 0:09:26.920 They've got core issues. They have a that tax of 0:09:27.040 --> 0:09:30.600 twenty percent or twenty Europe has twenty one percent. I mean, 0:09:30.640 --> 0:09:33.160 so when our goods are sold there, we pay twenty 0:09:33.200 --> 0:09:33.680 one percent. 0:09:33.720 --> 0:09:36.160 They say, everybody pays that, and then they. 0:09:36.120 --> 0:09:40.000 Use that money to beat us down in other ways. 0:09:40.080 --> 0:09:42.480 I mean, come on, we need to. 0:09:42.480 --> 0:09:47.080 Have fair trade macro, not product by product. But I 0:09:47.120 --> 0:09:49.880 think the way Donald Trump looks at it is country 0:09:50.240 --> 0:09:51.119 by country. 0:09:51.600 --> 0:09:53.680 And what's going to happen is you're going to see 0:09:53.800 --> 0:09:55.480 domestic production grow. 0:09:56.200 --> 0:09:59.079 You're going to see interest rates come down in America. 0:09:59.320 --> 0:10:02.920 You're going to see growth in America, great jobs in America. 0:10:03.440 --> 0:10:05.520 Robotics is going to come to America. 0:10:05.520 --> 0:10:09.200 It's going to replace cheap labor overseas. Robots can make things, 0:10:09.240 --> 0:10:11.800 you know what, the job there's going to be mechanics 0:10:12.080 --> 0:10:16.040 who fix robots, kind of like a high end BMW. 0:10:16.280 --> 0:10:18.520 Robots are going to need to be fixed, and those 0:10:18.600 --> 0:10:21.120 jobs are going to be high paying jobs, and they're 0:10:21.160 --> 0:10:22.000 going to be here. 0:10:22.400 --> 0:10:24.240 We're tired of them being overseas. 0:10:25.679 --> 0:10:28.480 For some countries, there's the ten percent base. That's the 0:10:28.520 --> 0:10:30.520 only levee that they were hit with yesterday. I'm think, 0:10:30.520 --> 0:10:32.880 give you United Kingdom. I think of Australia. But those 0:10:32.880 --> 0:10:35.439 countries have a trade surplus with the United States. 0:10:35.760 --> 0:10:36.880 So why put the terrify on. 0:10:39.240 --> 0:10:42.320 Well, I think the President understands that all of these 0:10:42.360 --> 0:10:44.520 countries even if they have a trade surplus, if you 0:10:44.559 --> 0:10:47.480 dig into it, like for instance, the UK, there are 0:10:47.520 --> 0:10:52.000 trade surplus counts that they have this London Medals exchange. 0:10:51.480 --> 0:10:55.040 And so gold and silver bullion going in counts. I mean, 0:10:55.200 --> 0:10:56.920 come on, that doesn't really count. 0:10:57.160 --> 0:11:01.120 So and Australia, which is one wonderful partner of ours, 0:11:01.280 --> 0:11:03.440 they buy a lot of our planes, right, and if 0:11:03.480 --> 0:11:06.120 you buy our commodity gas, I mean, that's really what 0:11:06.200 --> 0:11:08.560 you need, not really what we need to sell you. 0:11:08.600 --> 0:11:09.439 It's not the same. 0:11:09.840 --> 0:11:13.719 So the President decided, why don't we have a baseline 0:11:13.760 --> 0:11:18.199 of ten percent? Okay, to really understand that everybody needs 0:11:18.280 --> 0:11:21.840 our economy. Our economy is the magnet of the world. 0:11:22.200 --> 0:11:23.520 Everybody needs our economy. 0:11:23.600 --> 0:11:28.120 Let's them pay coming in and let's change that deficit 0:11:28.200 --> 0:11:31.719 of one point two trillion dollars, and let's make America's 0:11:31.800 --> 0:11:36.840 economy grow and let's balance that out. Let's fix that first, 0:11:37.240 --> 0:11:39.400 and then we'll go and readdress the rest of the world. 0:11:39.480 --> 0:11:41.960 But we need to fix our trade deficit one point 0:11:42.000 --> 0:11:47.079 two trillion dollars. It's unbelievable. Why we don't have those 0:11:47.200 --> 0:11:48.920 jobs and the rest of the world does. 0:11:50.160 --> 0:11:53.080 Treasury Secretary Scott Besson told me last night, this is 0:11:53.120 --> 0:11:56.160 a ceiling. Potentially we can see a different floor. Are 0:11:56.200 --> 0:11:59.440 you prepared to negotiate all of these rates? 0:11:59.520 --> 0:11:59.760 Is that? 0:12:00.080 --> 0:12:01.920 Is this truly the start of the negotiation. 0:12:04.640 --> 0:12:07.880 Well, it's the start of a rebalancing of the way 0:12:07.920 --> 0:12:12.040 the world works. I agree with the Secretary that our 0:12:12.200 --> 0:12:15.160 view is that the only way these rates are going 0:12:15.280 --> 0:12:18.760 up is if countries decide to retaliate. But why would 0:12:18.800 --> 0:12:22.520 you retaliate against your biggest client, your biggest clients? 0:12:22.600 --> 0:12:23.840 Is I want to reorder things. 0:12:23.880 --> 0:12:26.160 I mean, the United States of America is the largest 0:12:26.160 --> 0:12:28.840 client in the world. And yes, of course the countries 0:12:28.840 --> 0:12:31.640 are going to talk to us, but they talk too casually. 0:12:31.679 --> 0:12:34.679 They always talk about their tariff rates. I mean it's 0:12:35.400 --> 0:12:37.360 like they say, oh, I'm going to cut my tariff. 0:12:37.400 --> 0:12:37.559 Right. 0:12:37.679 --> 0:12:40.080 You think the reason we don't sell a car is 0:12:40.120 --> 0:12:42.600 because Europe charges a ten percent tariff and we were 0:12:42.600 --> 0:12:43.760 only charging two and a half. 0:12:44.240 --> 0:12:47.400 That was outrageous. But the key is they. 0:12:47.280 --> 0:12:51.040 Have all these rules, rules and rules and rules. Like 0:12:51.240 --> 0:12:54.280 one of my favorites is the Koreans. When we made 0:12:54.320 --> 0:12:56.079 a deal with them in twenty twelve, we took their 0:12:56.120 --> 0:12:58.839 cars right, Kia and Hundai, and we were going to 0:12:58.920 --> 0:13:02.760 sell agricultural products to them, right, And when McDonald's went to. 0:13:02.760 --> 0:13:05.120 Send in French fries, they wouldn't. 0:13:04.840 --> 0:13:08.079 Let them go in because we couldn't prove the origin 0:13:08.360 --> 0:13:09.240 of the potato. 0:13:09.840 --> 0:13:12.800 I mean, you don't understand the scale and. 0:13:12.840 --> 0:13:15.400 Depth of how they keep our products out. 0:13:15.760 --> 0:13:18.640 And Donald Trump has said I've had enough. We are 0:13:18.679 --> 0:13:19.959 going to be treated better. 0:13:20.120 --> 0:13:24.280 America is going to be treated better, and that starts today. 0:13:24.000 --> 0:13:26.720 Missus Sancrigy, Why exactly wasn't Russia on that list yesterday? 0:13:29.080 --> 0:13:35.640 Because we have sanctions against Russia, North Korea, Belarus, and Cuba, 0:13:36.080 --> 0:13:38.400 and so we're not supposed to be trading with them. 0:13:38.520 --> 0:13:39.480 Thanks for clearing that out. 0:13:39.520 --> 0:13:42.320 The additional question that other people had too about Mexico 0:13:42.360 --> 0:13:44.679 and Canada, they were also noticeably absent. 0:13:44.880 --> 0:13:45.800 Why would they absent? 0:13:47.800 --> 0:13:51.880 Well, they are operating under a rule that was set 0:13:52.200 --> 0:13:54.960 on for fentanyl, right that they needed to close the 0:13:55.000 --> 0:13:58.160 border and stop fentanyl. And what that rule is that 0:13:58.360 --> 0:14:05.080 USMCA major trading is exempt, right, and the other products 0:14:05.080 --> 0:14:07.600 that they do have a twenty five percent tariff when 0:14:07.840 --> 0:14:10.600 that is resolved, So we're not going to double count it. 0:14:10.679 --> 0:14:12.400 That's just not the way it works. 0:14:12.880 --> 0:14:16.440 When that's resolved, they will fall into a model like this. 0:14:16.800 --> 0:14:20.760 But I think USMCA in the order, USMCA continues to 0:14:20.800 --> 0:14:24.920 be exempted. So car parts, for instance, don't come with 0:14:25.080 --> 0:14:26.600 a tariff if they end. 0:14:26.560 --> 0:14:29.240 Up being finished in American car. 0:14:29.160 --> 0:14:32.360 So if you're building your car in America and you're 0:14:32.440 --> 0:14:35.280 getting parts from Canada and Mexico, that's fine. 0:14:35.320 --> 0:14:38.520 The American cars still come with no terror. 0:14:38.720 --> 0:14:40.800 Okay, that's how full The additional question we had on 0:14:40.880 --> 0:14:42.320 just a few numbers because we're all trying to make 0:14:42.320 --> 0:14:44.240 sense of this in real time, and you've got the numbers. 0:14:44.760 --> 0:14:48.120 What's the tariff on China? Now, the complete tariff including everything? 0:14:48.120 --> 0:14:48.840 What is that number? 0:14:48.840 --> 0:14:53.760 Now, Well, there was a twenty percent tariff because they 0:14:53.840 --> 0:14:57.640 continue to make the ingredients for fentanel and send them 0:14:57.680 --> 0:15:03.640 out right, and those ingredients have the highest subsidy rate 0:15:03.800 --> 0:15:08.560 in China, meaning the Chinese government is paying these factories 0:15:08.640 --> 0:15:12.800 to make these goods that the ingredients for fentanyl, which 0:15:12.840 --> 0:15:16.880 is killing Americans. Right, So Donald Trump put a twenty 0:15:16.880 --> 0:15:22.200 percent taff on that, and now the regular trade deficit number. 0:15:22.600 --> 0:15:22.800 Right. 0:15:22.800 --> 0:15:25.440 The analysis by the Council of Economic Advisors and the 0:15:25.480 --> 0:15:29.160 United States Trade representative, we have a thirty four percent TAFT, 0:15:29.200 --> 0:15:32.520 so it's fifty four percent. But when they stop making 0:15:32.560 --> 0:15:35.120 the ingredients for fentanyl. And I want to point out, 0:15:35.120 --> 0:15:40.040 in twenty nineteen, President Chi told President Trump that he 0:15:40.040 --> 0:15:43.120 would put the death penalty on anyone who made fentanyl, 0:15:43.760 --> 0:15:47.080 and now he's actually subsidizing them. 0:15:47.320 --> 0:15:51.320 And that's just it's just so so so. 0:15:51.840 --> 0:15:55.200 Wrong that Donald Trump is just he's not going to 0:15:55.240 --> 0:15:56.720 stand for it, and he's got to hit them with 0:15:56.760 --> 0:15:59.960 the only thing you get, which is economic. 0:15:59.480 --> 0:16:02.640 China as well, on China as well. What about the 0:16:02.680 --> 0:16:04.560 three oh one terrifs that we're put in place under 0:16:04.560 --> 0:16:06.360 Trump one point zero and then carried on to the 0:16:06.480 --> 0:16:09.840 Biden administration, it's about twenty five percent. Are those still 0:16:09.840 --> 0:16:12.480 in place? Do they get added to this cumulative number? 0:16:14.440 --> 0:16:14.760 They do? 0:16:14.920 --> 0:16:18.560 Indeed, but those are on specific product segments and those 0:16:18.600 --> 0:16:19.680 still are as well. 0:16:19.840 --> 0:16:20.760 Autos are not. 0:16:20.880 --> 0:16:23.440 So we're talking about seventy nine. So we're talking about 0:16:23.480 --> 0:16:27.480 seventy nine percent for some imports cumulative, we're talking about 0:16:27.480 --> 0:16:30.040 a seventy nine percent tariff from China. 0:16:30.120 --> 0:16:31.200 Is that accurate. 0:16:32.920 --> 0:16:35.120 On certain products? That could be true? 0:16:35.280 --> 0:16:37.840 Sure, but they've got to stop the UA All they 0:16:37.880 --> 0:16:40.520 have to have is a phone call. All they have 0:16:40.560 --> 0:16:42.960 to have is a phone call from President She to 0:16:43.040 --> 0:16:46.680 President Trump saying I'm going to in fentnyl production that's 0:16:46.760 --> 0:16:49.880 killing Americans and it drops twenty percent. I mean, that's 0:16:49.920 --> 0:16:52.720 a pretty inexpensive phone call. But you have to make 0:16:52.760 --> 0:16:55.520 the decision. You got to stop killing Americans, and so 0:16:55.680 --> 0:16:56.840 far they haven't. 0:16:56.600 --> 0:16:57.400 Made that decision. 0:16:57.920 --> 0:17:00.560 Shocking that they haven't made that decision, And you really 0:17:00.560 --> 0:17:00.840 got to. 0:17:00.840 --> 0:17:02.880 Think about that for a minute. Think about that for 0:17:02.920 --> 0:17:03.280 a minute. 0:17:03.360 --> 0:17:07.040 A phone call would save them twenty percent on all 0:17:07.119 --> 0:17:10.840 their products, but they'd have to stop making the ingredients 0:17:10.880 --> 0:17:14.639 of fentanyl, and they refuse outrageous. 0:17:14.680 --> 0:17:17.080 Has your counterpart reached out to set up that phone 0:17:17.080 --> 0:17:18.959 call between President Trump and Shojipeing? 0:17:21.480 --> 0:17:24.720 You know, President Trump and President. 0:17:24.320 --> 0:17:27.320 She, they have away, they're not going to be when 0:17:27.320 --> 0:17:29.520 their phone call gets made. I don't think they're asking 0:17:29.560 --> 0:17:31.880 me to set it up. I think that's above. 0:17:31.640 --> 0:17:32.760 Me and missus Secretary. 0:17:32.760 --> 0:17:35.080 Does that tell you something about maybe the lenforce you 0:17:35.160 --> 0:17:37.960 think you have, perhaps you don't have over the Chinese. 0:17:38.000 --> 0:17:39.800 The fact that they aren't reaching down, they aren't doing 0:17:39.840 --> 0:17:42.359 those things, despite the fact you've put taras up as 0:17:42.440 --> 0:17:43.000 much as you have. 0:17:45.800 --> 0:17:46.400 Well, we'll see. 0:17:46.440 --> 0:17:50.119 Remember these tariffs are just going into place, and you know, 0:17:50.440 --> 0:17:53.239 I think they will have that phone call and they 0:17:53.280 --> 0:17:56.520 will have lots of conversation together. I think for me, 0:17:57.440 --> 0:17:59.760 the greatest thing for me is that Donald Trump is 0:17:59.760 --> 0:18:03.000 sitting behind the resolute desk and the Oval office and 0:18:03.080 --> 0:18:05.879 he is the greatest dealmaker and he will decide how 0:18:05.960 --> 0:18:08.600 he wants to play his hand. But the way he's 0:18:08.640 --> 0:18:11.359 played his hand now is he's been talking about this for. 0:18:11.280 --> 0:18:12.199 Thirty five years. 0:18:12.359 --> 0:18:16.280 He wants to reorder trade, to have the world stop 0:18:16.400 --> 0:18:20.000 exploiting us, to bring the factories back, to bring employment back. 0:18:20.040 --> 0:18:22.480 You know, no one thought about when NAFTA, which he 0:18:22.600 --> 0:18:25.800 called yesterday the worst trade deal ever. When NAFTA did 0:18:25.840 --> 0:18:30.440 it gave Canada and Mexico sort of the economic right 0:18:30.520 --> 0:18:33.200 to be a state of the United States without paying 0:18:33.240 --> 0:18:36.680 federal tax and without respecting the Constitution. But you could 0:18:36.680 --> 0:18:40.360 build in Mexico and drive to Texas and build in Canada, 0:18:40.480 --> 0:18:43.760 just drive across the border. Was all fine, and no, 0:18:44.920 --> 0:18:48.600 you know, economically equal to being Alabama and Georgia. Yeah, 0:18:48.680 --> 0:18:52.199 And so what happened is our manufacturing left America and 0:18:52.280 --> 0:18:55.440 put those Americans out of jobs, and Donald Trump wants 0:18:55.480 --> 0:18:59.560 to bring back factories, bring back those jobs, and they 0:18:59.600 --> 0:19:03.520 can come back. Five trillion dollars worth of commitments to 0:19:03.600 --> 0:19:07.920 bring back those jobs is pretty unbelievably impressive, and that's 0:19:07.920 --> 0:19:09.120 what Donald Trump's capable. 0:19:09.520 --> 0:19:12.080 Also impressive is the sound of demonic and a big 0:19:12.160 --> 0:19:14.880 question the markets, asking how much pain you're willing to tolerate. 0:19:15.240 --> 0:19:18.200 The SMP's down by three point seven percent, the dollar 0:19:18.280 --> 0:19:21.440 is being sold quite aggressively against the euro. Was saying 0:19:21.440 --> 0:19:24.200 one of the biggest moves we've seen in the last decade, 0:19:24.440 --> 0:19:26.760 mister secretary, how much pain are you willing to tolerate? 0:19:26.760 --> 0:19:29.200 How much market pain are you willing to tolerate? 0:19:31.760 --> 0:19:35.359 Donald Trump has focused on the economic pain that the 0:19:35.440 --> 0:19:39.439 United States of America has suffered over decades since NAFTA, 0:19:39.640 --> 0:19:45.760 ninety thousand factories, not jobs, factories, five million high paying 0:19:45.920 --> 0:19:51.239 jobs gone overseas. He's focused on the US worker and 0:19:51.280 --> 0:19:54.920 the US economy. And what's going to happen is people 0:19:54.960 --> 0:19:58.439 are going to realize it is the great American economy 0:19:58.520 --> 0:20:01.720 that is the winner here, and anyone who doubts it, 0:20:01.760 --> 0:20:05.040 and anybody who shorts Donald Trump or anybody who doubts 0:20:05.080 --> 0:20:08.199 the strength and the power of the American economy is 0:20:08.280 --> 0:20:09.840 making a foolish bet. 0:20:10.280 --> 0:20:14.000 Sure, importers are going to have a tough time figuring. 0:20:13.640 --> 0:20:15.879 Out what to do because they went and found the 0:20:15.960 --> 0:20:18.560 cheapest production in the world. It's time to bring that 0:20:18.640 --> 0:20:22.160 production home, to have the smart, amazing people who run 0:20:22.240 --> 0:20:23.840 American companies figure it out. 0:20:24.200 --> 0:20:26.080 Bring robotics back to America. 0:20:26.119 --> 0:20:30.480 And I would say that United States domestic growth is 0:20:30.560 --> 0:20:34.760 going to have the greatest resurgence ever under Donald Trump, 0:20:34.840 --> 0:20:37.880 and that's what he has set in motion yesterday. 0:20:38.000 --> 0:20:41.160 You'll accept it takes time to engineer a supply side response, though, sir, 0:20:41.600 --> 0:20:44.399 and in the mad time you can see bad things happen. 0:20:44.520 --> 0:20:45.199 Do you accept that? 0:20:47.600 --> 0:20:48.719