March 5, 2025 • 16 mins
US Commerce Secretary Howard Lutnick discusses reciprocal tariffs and whether there will be a compromise reached between Trump, Mexico, and Canada. He speaks with Bloomberg's Jonathan Ferro, Lisa Abramowicz, and Annmarie Hordern.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Markets, bouncin as the Trump administration signals a deal could
be reached to relieve tariffs on Mexico and Canada joining
US now is the man behind the negotiations, the forty
first United States Secretary of Commas, Howard Lantnik missed the
Secretary before we get go in a warm congratulations from
the team here at Bloomberg Surveillance on your confirmation.
Speaker 1 (00:26):
Oh thanks so much.
Speaker 3 (00:27):
It wasn't last night's speech amazing. I really I could
have been more proud of President Trump.
Speaker 2 (00:33):
We'll get into the niceties on that in just a moment.
Let's kick it off, sir with a question about your
comments yesterday when you suggested that maybe there could be
a compromise on trade between the United States, Mexico and
Canada and maybe we'd hear more about that today. Has
the President confirmed that is that still the plan?
Speaker 1 (00:52):
Well?
Speaker 3 (00:52):
I think what happened is you have the trade ministers
and all the people from Canada really working hard with
our homeland security people.
Speaker 1 (01:01):
Remember, this is not a trade war. This is a
drug war.
Speaker 3 (01:05):
We've got fentanyls still pouring into the country, and it's
got to stop.
Speaker 1 (01:09):
So what's happened is they're showing us even more.
Speaker 3 (01:12):
Ways to try to stop the floor of fentanyl and
if they can stop the floor of fenyl. The President
is open minded. There are going to be tariffs, let's
be clear. But what he is thinking about is which
sections of the market that can maybe maybe he'll consider
giving them relief until we get to, of course, April second,
(01:32):
But I don't want anybody to forget. April second is
the day that we announced our reciprocal tariffs around the world,
and so April second is coming.
Speaker 1 (01:41):
But this is about fentanyl this month.
Speaker 2 (01:43):
Got that. Just want additional clarity, Just to be very
clear on this. Yesterday when you said I think the
President's going to figure out you do more and on
meet you in the middle, we're probably going to announce
that tomorrow as in today, can we no longer respect
that announcement?
Speaker 1 (01:57):
No, no, no, no, I didn't say that.
Speaker 3 (01:59):
I said, is it in is listening to the offers
from Mexico and Canada. He's thinking about trying to do
something in the middle. He's thinking about it, We're talking
about it. We're going to what I leave here, I'm
going to go talk about it with him, and I
think early this afternoon or this afternoon, we expect to
make an announcement. And my my thinking is it's going
(02:19):
to be somewhere in the middle, So not one hundred
percent of all products and not none, somewhere in the middle,
because I think Mexico and Canada are trying the best
and let's see where we end up. So I do
think somewhere in the middle is a likely outcome.
Speaker 2 (02:33):
When you say somewhere in the middle, do you mean
somewhere in the middle on tariffs, as in somewhere between
zero and twenty five or do you mean that certain groups,
certain industries will just get a carve out. And would
that carve out be say the autos, because the President
mentioned last night he'd spoken to the auto's CEOs. It
carve outs we should be thinking about here.
Speaker 3 (02:52):
Yeah, I think I think it's by product and by regent.
Remember the USMCA, right, the United States, Mexico and Canada
agreement set up some policies that said you've got to
have a certain amount of US content in your products
to be USMCA compliant. So I think he's thinking about
those categories. The USMCA compliant and does not make sense
(03:15):
to you. Right, if you complied with the agreement, then
maybe you avoid tariffs. And if you didn't comply with
the agreement, well you did so at your own risk.
Speaker 2 (03:23):
You knew you.
Speaker 3 (03:24):
Weren't complying, and therefore it seems likely that's a place
where the President will go. Again, the President gets to
make the decision. I'm there talking with him about.
Speaker 1 (03:33):
It, and so is the team.
Speaker 3 (03:34):
But our expectation is that it'll be categories. It will
be twenty five percent, but it'll be there will be
some categories left out. It could well be autos, could
be others as well. USMCA go look at that. That
was the agreement we made with US, Mexico and Canada
saying those products are exempt.
Speaker 1 (03:54):
Everyone who didn't.
Speaker 3 (03:56):
Live under those terms and did so at their own
risk knew they were doing it at their own risk.
Speaker 1 (04:01):
Always.
Speaker 4 (04:03):
Secretary Latna, good morning. Would you say right now that
you think that US autos like GM and Ford are
compliant under USMCA.
Speaker 3 (04:13):
That is my understanding is the Big Three say they
produce cars that are compliant under US MCA, which means
they have sufficient US content in them to be part
of the US MCA agreement. So I think that's part
of our discussion and the president's really thinking about that.
Speaker 4 (04:34):
So it's fair to assume then, especially given the constituencies
of auto workers that the President was able to pick
up in this past election, that it is the auto
industry that can potentially get that exemption later this afternoon.
Speaker 3 (04:47):
It's not really the deceemption, remember, it's it's we're trying
to end fetanyl.
Speaker 1 (04:53):
Coming into the country.
Speaker 3 (04:54):
So we're trying to set a message that fetanyl has
got to end coming in from Mexico and and it
just has to end. And they've done a reasonable job
on the border, and they're going to do a better
job on the border.
Speaker 1 (05:06):
But this is memory.
Speaker 3 (05:07):
It's a key about fentanyl for this month April. Second,
we could talk about the rest, but this month it's
about fentanyl, and the President's trying to give.
Speaker 1 (05:16):
Mexico and Canada some statement, some move.
Speaker 3 (05:19):
Forward because they are doing they are trying their hardest,
and we believe they're trying their hardest. But the fact
is that we're got to put something on because deaths
in America have not decreased in a way that is sufficient.
Speaker 4 (05:35):
Deaths of in America many families will sympathize with this,
remarks me myself, I know families who have been at
the end of the suffering when it comes to fentanyl.
But yesterday though, the President questioned the fairness of Canadian banks,
So what is it about. Is it about Canada's banking
system or is it really about fentanyl?
Speaker 3 (05:59):
So this month, right now, is about fentanyl. When we
talk about April second, we will talk about the bigger
trade picture between our trading partners Canada and our trading
parts of Mexico. So April second, I'll be happy to
come on and talk to you about our thinking and
our thoughts about a broad trading model. But right now
(06:22):
it's about fentanyl. This is a drug related issue. Drugs
coming into the United States of America have got to
stop the border. It's got to remain closed. That's the
key of how you treat your great trading partner. You
treat your great trading partner with respect, and you stop
letting fentanyl into the country. So my view is the
(06:43):
President is thinking about it. He's thinking about autos, he's
thinking about USMCA. He's going to come up with a plan.
This afternoon, We're going to announce that plan. I think
it's going to be in the middle somewhere. There's going
to be twenty five percent tariffs. It's not the middle
as in a number. I think it's a middle in
terms of USMCA, not USMCA. But the President will decide
(07:04):
that this afternoon and then we'll go on from there.
Speaker 1 (07:07):
But think about that.
Speaker 3 (07:08):
If you were compliant with USMCA, you did with President
Trump asked in his last term, and if you weren't compliant,
you did that at your own risk.
Speaker 5 (07:17):
Secretary Lutnik, I just want to make sure that I
understand this correctly. You're talking about the idea that this
all has to do with the drug wars, and at
the same time, some people have speculated this could lead
to a renegotiation of USMCA that would lead all around
to even lower tariffs than before. Are you saying that's
off the table. The tariffs are still part of this
(07:37):
at the twenty five percent level.
Speaker 3 (07:40):
Well, remember April second, we begin our reciprocity model, which
is how you treat us as how we treat you,
and that is going to be part of this exception
part of his tarr policy. And then he's got industries, autos, semiconductors, pharmaceuticals,
steal and aluminum and copper lumber. These issues need to
(08:04):
come home. We need to help our domestic industries grow
and flourish, and so we called out those product sets
for extra focus.
Speaker 1 (08:14):
But that's April second.
Speaker 3 (08:16):
So on April second, our reciprocal trade policy will come out.
In twenty twenty six, we renegotiate USMCA with Canada and Mexico,
and we're going to have really clear analysis and clear
focus on how that changes. But right today, let's be clear,
today is about fentanyl.
Speaker 5 (08:36):
We heard from last night the President. He said that
he was fine with a little disturbance, but going forward
there will be all of these gains realized. Secretary Lutnik,
are you concerned about the level of uncertainty express not
just in markets, but just even from people who you
used to work with, where they're saying, we don't have
a clear sense of what the goal is. And I
(08:56):
understand you're saying it'll come on April second, but in
the meantime people are just putting all plans on hold.
Speaker 3 (09:03):
Well, I'm not seeing all plants at all. In fact,
I'm seeing the opposite. Right, we saw Apple commit to
five hundred billion dollars. We saw open Ai an oracle
commit to five hundred billion dollars of investments. TSMC just
the other day saying one hundred billion dollar investment in America.
Sawt Bank two hundred billion dollar investment in America.
Speaker 1 (09:26):
So a trillion, three hundred billion dollars.
Speaker 3 (09:28):
And you think people are waiting on the sidelines, We
feel it every day. All these companies are coming, they're
building in America, they're committing to America.
Speaker 1 (09:37):
We agree April second is coming.
Speaker 3 (09:39):
We have to do our work before we announce our
plans on April second. Of course, we have to do
our work and do it properly and do it thoughtfully.
Speaker 1 (09:48):
But in this period of time, America needs.
Speaker 3 (09:51):
A president to protect people from fentanyl that shouldn't be
killing people in our country. China still has fentanyl as
a highest list of subsidies.
Speaker 1 (10:03):
Subsidies.
Speaker 3 (10:04):
They subsidize the production of precursors, the ingredients to fetanol.
They send it to Mexico and Canada and into the
country it comes. So our president has said enough already,
enough already, and that's why he's come up with this
tariff plan today. April second will be a fairness plan,
(10:24):
and fairness plan is not that hard to figure out if.
Speaker 1 (10:28):
You have a look it.
Speaker 4 (10:29):
Can I jump in there on the on the fairness plan,
is that an initial, partial assessment and response or will
tariffs actually hit on April second?
Speaker 3 (10:40):
Well, there are a whole variety of laws in the
United States of America that we will follow with precision.
Speaker 1 (10:46):
Some tariffs will come on right away, and then some.
Speaker 3 (10:49):
Tariffs will go be registered and they will take three
weeks or four weeks, and they will come on in
due course.
Speaker 1 (10:55):
So there's a process for tariffs in America.
Speaker 3 (10:58):
But we will announce them and we will be negotiating
with all these countries thereafter, and then they go into
effect over a period of months, so basically April second. No,
we'll announce them and then they come in.
Speaker 4 (11:11):
Because there's months of studies, massive report, public opinion. This
can take a very long time. So legally there's no
law that's short enough really to put tariffs in place
on the second. So how long between April second till
the tariffs actually hit do you think we'll see?
Speaker 3 (11:30):
As I said there, we launched our studies on January twentieth,
so April second, those studies are done. Some tariffs can
come straight away, some can come weeks later, some can
some can take over a month or two to come online.
Speaker 1 (11:45):
But it will be very, very.
Speaker 3 (11:48):
Thoughtful, very organized, and we begin on April second. We've
announced it from January twentieth that April second was the day.
We're sticking with our day. We're sticking with reciprocity. It
is time for America to be treated fairly. And that's
what the President Trump is going to do. He's going
to make sure we are treated fairly. He's talked about
(12:10):
it last night. He's made this clear. So Mexico and
Canada is about fentanyl today for the month of March,
but on April second, it's about fairness. And yes, that
is a process that comes in that is strictly specific
to the laws, but it'll.
Speaker 1 (12:24):
Take over a month or two months to come in.
Speaker 3 (12:26):
But once it's in, they will stick, which is treat
us fairly, treat us properly, or don't trade with us.
Speaker 2 (12:34):
Miss the Secretary, I was a man of my word.
I am a man of my word, and I promise
we'd come back to the address last night. So let's
finish there. The President of the United States talked about
a big, beautiful drop in interest rates. A lot of
people in this market are curious whether the president is
no longer sensitive to the deadI girations of the equity market.
The focus, the emphsis now is on the bondom market.
Is that the shift is that the way to understand things.
Speaker 1 (12:57):
Well, I think that is too specific.
Speaker 3 (13:00):
I mean, let's face it, if we balance the budget
of the United States of America, interest rates are going
to come smashing down. And I don't mean ten basis points,
I mean one hundred and fifty basis points. You're going
to have an explosion in the housing market. You're going
to have an explosion in the equity markets. Because this
is not a manufactured cut in the interest rates like
(13:21):
you saw last time with this huge money supply which
created the vast inflation.
Speaker 1 (13:26):
This is the right way to do it.
Speaker 3 (13:28):
You stop printing money, you stop running deficits, You balance
the budget of the United States of America. You smash
interest rates down, you produce enormous amounts of energy, drive
those prices down, and you will see the greatest equity
market and the greatest economy in the United States of America. Now,
remember this president is worried about the United States of America.
(13:51):
Sometimes I can asked questions about am I worried about
Canadam I worried about Mexican And am I worried about
the EU? My president is worried about the United States
heats of America. And you are going to see the
greatest equity market and buyd markets under President Trump.
Speaker 1 (14:06):
Well, let's you.
Speaker 2 (14:06):
Worry about the American data right now because equities have
rolled over just a little bit, you know, the market. Well,
I won't make a big deal of it. We're just
a bit softer at the back of this data from ADP,
which is a downside surprise at seventy seven K. The
estimate was one forty. So with sub one hundred, we'll
see what we get on the m later on this
morning and on payrolls on Friday. But as you know,
mister Secretary, the data over the last few weeks hasn't
(14:29):
been great. The survey data has been softer, and a
lot of these companies in these surveys have pointed to
tariff uncertainty. Do you accept that the business community needs
some clarity or whether it's twenty five, fifteen, ten, whatever,
the number is going to be that the volatility around
the trade story, the cumulative effect of persistent uncertainty is
(14:49):
starting to wink into this economy a little bit.
Speaker 1 (14:52):
No way.
Speaker 3 (14:53):
I mean, the President spoke about him last night. He
said Biden left them a pile a poop. He left
him allows the economy that he's trying to fix. You're
looking at data that's Biden data. Do not try to
besmirch my President Trump with Biden's nonsense.
Speaker 2 (15:12):
Do you hear the manufacturing number is Biden data? I
just want to be very clear, that's your opinion. You're
entitled to it. You think that's his dates, not your
my opinion.
Speaker 1 (15:20):
Okay, what possible could change? Seriously, we are in early March.
My president took over January twentieth.
Speaker 3 (15:29):
You think economic data coming out in early March is
Donald Trump related data?
Speaker 1 (15:35):
Monthly?
Speaker 2 (15:37):
MISSUS Secretary? Are you okay? Are you suggesting we don't
have to get into an argument about it? You suggesting
so when bone yields drop in a market that's worth
trillions of dollars and investor's place bets off the back
of that economic data, that that data doesn't count front
of think that that data somehow misleading.
Speaker 1 (15:56):
I think that.
Speaker 3 (15:57):
Data is leading you to understand. If Joe Biden was
still in charge, you'd be in trouble. But you have
a new president. There's a new sheriff in town, and
I would bet, I would bet on the economic growth
that is coming from Donald Trump.
Speaker 1 (16:11):
You see the investments. You see it already.
Speaker 3 (16:15):
There's trillions of dollars of manufacturing moving to America. It's
moving to America. That means the cavalry is coming. For
every trillion dollars that invests in the United States of America,
that produces one percent of GDP growth, imagine that you
have a president bringing GDP growth directly to his economy.
Speaker 1 (16:37):
That's amazing.
Speaker 2 (16:38):
Mister Secretary. We appreciate your time and your opinion. As always, Sir,
the US Commerce Secretary, how would love maca on the
economic data, financial markets, and what's going to happen with
trade
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
Markets, bouncin as the Trump administration signals a deal could
be reached to relieve tariffs on Mexico and Canada joining
US now is the man behind the negotiations, the forty
first United States Secretary of Commas, Howard Lantnik missed the
Secretary before we get go in a warm congratulations from
the team here at Bloomberg Surveillance on your confirmation.
Speaker 1 (00:26):
Oh thanks so much.
Speaker 3 (00:27):
It wasn't last night's speech amazing. I really I could
have been more proud of President Trump.
Speaker 2 (00:33):
We'll get into the niceties on that in just a moment.
Let's kick it off, sir with a question about your
comments yesterday when you suggested that maybe there could be
a compromise on trade between the United States, Mexico and
Canada and maybe we'd hear more about that today. Has
the President confirmed that is that still the plan?
Speaker 1 (00:52):
Well?
Speaker 3 (00:52):
I think what happened is you have the trade ministers
and all the people from Canada really working hard with
our homeland security people.
Speaker 1 (01:01):
Remember, this is not a trade war. This is a
drug war.
Speaker 3 (01:05):
We've got fentanyls still pouring into the country, and it's
got to stop.
Speaker 1 (01:09):
So what's happened is they're showing us even more.
Speaker 3 (01:12):
Ways to try to stop the floor of fentanyl and
if they can stop the floor of fenyl. The President
is open minded. There are going to be tariffs, let's
be clear. But what he is thinking about is which
sections of the market that can maybe maybe he'll consider
giving them relief until we get to, of course, April second,
(01:32):
But I don't want anybody to forget. April second is
the day that we announced our reciprocal tariffs around the world,
and so April second is coming.
Speaker 1 (01:41):
But this is about fentanyl this month.
Speaker 2 (01:43):
Got that. Just want additional clarity, Just to be very
clear on this. Yesterday when you said I think the
President's going to figure out you do more and on
meet you in the middle, we're probably going to announce
that tomorrow as in today, can we no longer respect
that announcement?
Speaker 1 (01:57):
No, no, no, no, I didn't say that.
Speaker 3 (01:59):
I said, is it in is listening to the offers
from Mexico and Canada. He's thinking about trying to do
something in the middle. He's thinking about it, We're talking
about it. We're going to what I leave here, I'm
going to go talk about it with him, and I
think early this afternoon or this afternoon, we expect to
make an announcement. And my my thinking is it's going
(02:19):
to be somewhere in the middle, So not one hundred
percent of all products and not none, somewhere in the middle,
because I think Mexico and Canada are trying the best
and let's see where we end up. So I do
think somewhere in the middle is a likely outcome.
Speaker 2 (02:33):
When you say somewhere in the middle, do you mean
somewhere in the middle on tariffs, as in somewhere between
zero and twenty five or do you mean that certain groups,
certain industries will just get a carve out. And would
that carve out be say the autos, because the President
mentioned last night he'd spoken to the auto's CEOs. It
carve outs we should be thinking about here.
Speaker 3 (02:52):
Yeah, I think I think it's by product and by regent.
Remember the USMCA, right, the United States, Mexico and Canada
agreement set up some policies that said you've got to
have a certain amount of US content in your products
to be USMCA compliant. So I think he's thinking about
those categories. The USMCA compliant and does not make sense
(03:15):
to you. Right, if you complied with the agreement, then
maybe you avoid tariffs. And if you didn't comply with
the agreement, well you did so at your own risk.
Speaker 2 (03:23):
You knew you.
Speaker 3 (03:24):
Weren't complying, and therefore it seems likely that's a place
where the President will go. Again, the President gets to
make the decision. I'm there talking with him about.
Speaker 1 (03:33):
It, and so is the team.
Speaker 3 (03:34):
But our expectation is that it'll be categories. It will
be twenty five percent, but it'll be there will be
some categories left out. It could well be autos, could
be others as well. USMCA go look at that. That
was the agreement we made with US, Mexico and Canada
saying those products are exempt.
Speaker 1 (03:54):
Everyone who didn't.
Speaker 3 (03:56):
Live under those terms and did so at their own
risk knew they were doing it at their own risk.
Speaker 1 (04:01):
Always.
Speaker 4 (04:03):
Secretary Latna, good morning. Would you say right now that
you think that US autos like GM and Ford are
compliant under USMCA.
Speaker 3 (04:13):
That is my understanding is the Big Three say they
produce cars that are compliant under US MCA, which means
they have sufficient US content in them to be part
of the US MCA agreement. So I think that's part
of our discussion and the president's really thinking about that.
Speaker 4 (04:34):
So it's fair to assume then, especially given the constituencies
of auto workers that the President was able to pick
up in this past election, that it is the auto
industry that can potentially get that exemption later this afternoon.
Speaker 3 (04:47):
It's not really the deceemption, remember, it's it's we're trying
to end fetanyl.
Speaker 1 (04:53):
Coming into the country.
Speaker 3 (04:54):
So we're trying to set a message that fetanyl has
got to end coming in from Mexico and and it
just has to end. And they've done a reasonable job
on the border, and they're going to do a better
job on the border.
Speaker 1 (05:06):
But this is memory.
Speaker 3 (05:07):
It's a key about fentanyl for this month April. Second,
we could talk about the rest, but this month it's
about fentanyl, and the President's trying to give.
Speaker 1 (05:16):
Mexico and Canada some statement, some move.
Speaker 3 (05:19):
Forward because they are doing they are trying their hardest,
and we believe they're trying their hardest. But the fact
is that we're got to put something on because deaths
in America have not decreased in a way that is sufficient.
Speaker 4 (05:35):
Deaths of in America many families will sympathize with this,
remarks me myself, I know families who have been at
the end of the suffering when it comes to fentanyl.
But yesterday though, the President questioned the fairness of Canadian banks,
So what is it about. Is it about Canada's banking
system or is it really about fentanyl?
Speaker 3 (05:59):
So this month, right now, is about fentanyl. When we
talk about April second, we will talk about the bigger
trade picture between our trading partners Canada and our trading
parts of Mexico. So April second, I'll be happy to
come on and talk to you about our thinking and
our thoughts about a broad trading model. But right now
(06:22):
it's about fentanyl. This is a drug related issue. Drugs
coming into the United States of America have got to
stop the border. It's got to remain closed. That's the
key of how you treat your great trading partner. You
treat your great trading partner with respect, and you stop
letting fentanyl into the country. So my view is the
(06:43):
President is thinking about it. He's thinking about autos, he's
thinking about USMCA. He's going to come up with a plan.
This afternoon, We're going to announce that plan. I think
it's going to be in the middle somewhere. There's going
to be twenty five percent tariffs. It's not the middle
as in a number. I think it's a middle in
terms of USMCA, not USMCA. But the President will decide
(07:04):
that this afternoon and then we'll go on from there.
Speaker 1 (07:07):
But think about that.
Speaker 3 (07:08):
If you were compliant with USMCA, you did with President
Trump asked in his last term, and if you weren't compliant,
you did that at your own risk.
Speaker 5 (07:17):
Secretary Lutnik, I just want to make sure that I
understand this correctly. You're talking about the idea that this
all has to do with the drug wars, and at
the same time, some people have speculated this could lead
to a renegotiation of USMCA that would lead all around
to even lower tariffs than before. Are you saying that's
off the table. The tariffs are still part of this
(07:37):
at the twenty five percent level.
Speaker 3 (07:40):
Well, remember April second, we begin our reciprocity model, which
is how you treat us as how we treat you,
and that is going to be part of this exception
part of his tarr policy. And then he's got industries, autos, semiconductors, pharmaceuticals,
steal and aluminum and copper lumber. These issues need to
(08:04):
come home. We need to help our domestic industries grow
and flourish, and so we called out those product sets
for extra focus.
Speaker 1 (08:14):
But that's April second.
Speaker 3 (08:16):
So on April second, our reciprocal trade policy will come out.
In twenty twenty six, we renegotiate USMCA with Canada and Mexico,
and we're going to have really clear analysis and clear
focus on how that changes. But right today, let's be clear,
today is about fentanyl.
Speaker 5 (08:36):
We heard from last night the President. He said that
he was fine with a little disturbance, but going forward
there will be all of these gains realized. Secretary Lutnik,
are you concerned about the level of uncertainty express not
just in markets, but just even from people who you
used to work with, where they're saying, we don't have
a clear sense of what the goal is. And I
(08:56):
understand you're saying it'll come on April second, but in
the meantime people are just putting all plans on hold.
Speaker 3 (09:03):
Well, I'm not seeing all plants at all. In fact,
I'm seeing the opposite. Right, we saw Apple commit to
five hundred billion dollars. We saw open Ai an oracle
commit to five hundred billion dollars of investments. TSMC just
the other day saying one hundred billion dollar investment in America.
Sawt Bank two hundred billion dollar investment in America.
Speaker 1 (09:26):
So a trillion, three hundred billion dollars.
Speaker 3 (09:28):
And you think people are waiting on the sidelines, We
feel it every day. All these companies are coming, they're
building in America, they're committing to America.
Speaker 1 (09:37):
We agree April second is coming.
Speaker 3 (09:39):
We have to do our work before we announce our
plans on April second. Of course, we have to do
our work and do it properly and do it thoughtfully.
Speaker 1 (09:48):
But in this period of time, America needs.
Speaker 3 (09:51):
A president to protect people from fentanyl that shouldn't be
killing people in our country. China still has fentanyl as
a highest list of subsidies.
Speaker 1 (10:03):
Subsidies.
Speaker 3 (10:04):
They subsidize the production of precursors, the ingredients to fetanol.
They send it to Mexico and Canada and into the
country it comes. So our president has said enough already,
enough already, and that's why he's come up with this
tariff plan today. April second will be a fairness plan,
(10:24):
and fairness plan is not that hard to figure out if.
Speaker 1 (10:28):
You have a look it.
Speaker 4 (10:29):
Can I jump in there on the on the fairness plan,
is that an initial, partial assessment and response or will
tariffs actually hit on April second?
Speaker 3 (10:40):
Well, there are a whole variety of laws in the
United States of America that we will follow with precision.
Speaker 1 (10:46):
Some tariffs will come on right away, and then some.
Speaker 3 (10:49):
Tariffs will go be registered and they will take three
weeks or four weeks, and they will come on in
due course.
Speaker 1 (10:55):
So there's a process for tariffs in America.
Speaker 3 (10:58):
But we will announce them and we will be negotiating
with all these countries thereafter, and then they go into
effect over a period of months, so basically April second. No,
we'll announce them and then they come in.
Speaker 4 (11:11):
Because there's months of studies, massive report, public opinion. This
can take a very long time. So legally there's no
law that's short enough really to put tariffs in place
on the second. So how long between April second till
the tariffs actually hit do you think we'll see?
Speaker 3 (11:30):
As I said there, we launched our studies on January twentieth,
so April second, those studies are done. Some tariffs can
come straight away, some can come weeks later, some can
some can take over a month or two to come online.
Speaker 1 (11:45):
But it will be very, very.
Speaker 3 (11:48):
Thoughtful, very organized, and we begin on April second. We've
announced it from January twentieth that April second was the day.
We're sticking with our day. We're sticking with reciprocity. It
is time for America to be treated fairly. And that's
what the President Trump is going to do. He's going
to make sure we are treated fairly. He's talked about
(12:10):
it last night. He's made this clear. So Mexico and
Canada is about fentanyl today for the month of March,
but on April second, it's about fairness. And yes, that
is a process that comes in that is strictly specific
to the laws, but it'll.
Speaker 1 (12:24):
Take over a month or two months to come in.
Speaker 3 (12:26):
But once it's in, they will stick, which is treat
us fairly, treat us properly, or don't trade with us.
Speaker 2 (12:34):
Miss the Secretary, I was a man of my word.
I am a man of my word, and I promise
we'd come back to the address last night. So let's
finish there. The President of the United States talked about
a big, beautiful drop in interest rates. A lot of
people in this market are curious whether the president is
no longer sensitive to the deadI girations of the equity market.
The focus, the emphsis now is on the bondom market.
Is that the shift is that the way to understand things.
Speaker 1 (12:57):
Well, I think that is too specific.
Speaker 3 (13:00):
I mean, let's face it, if we balance the budget
of the United States of America, interest rates are going
to come smashing down. And I don't mean ten basis points,
I mean one hundred and fifty basis points. You're going
to have an explosion in the housing market. You're going
to have an explosion in the equity markets. Because this
is not a manufactured cut in the interest rates like
(13:21):
you saw last time with this huge money supply which
created the vast inflation.
Speaker 1 (13:26):
This is the right way to do it.
Speaker 3 (13:28):
You stop printing money, you stop running deficits, You balance
the budget of the United States of America. You smash
interest rates down, you produce enormous amounts of energy, drive
those prices down, and you will see the greatest equity
market and the greatest economy in the United States of America. Now,
remember this president is worried about the United States of America.
(13:51):
Sometimes I can asked questions about am I worried about
Canadam I worried about Mexican And am I worried about
the EU? My president is worried about the United States
heats of America. And you are going to see the
greatest equity market and buyd markets under President Trump.
Speaker 1 (14:06):
Well, let's you.
Speaker 2 (14:06):
Worry about the American data right now because equities have
rolled over just a little bit, you know, the market. Well,
I won't make a big deal of it. We're just
a bit softer at the back of this data from ADP,
which is a downside surprise at seventy seven K. The
estimate was one forty. So with sub one hundred, we'll
see what we get on the m later on this
morning and on payrolls on Friday. But as you know,
mister Secretary, the data over the last few weeks hasn't
(14:29):
been great. The survey data has been softer, and a
lot of these companies in these surveys have pointed to
tariff uncertainty. Do you accept that the business community needs
some clarity or whether it's twenty five, fifteen, ten, whatever,
the number is going to be that the volatility around
the trade story, the cumulative effect of persistent uncertainty is
(14:49):
starting to wink into this economy a little bit.
Speaker 1 (14:52):
No way.
Speaker 3 (14:53):
I mean, the President spoke about him last night. He
said Biden left them a pile a poop. He left
him allows the economy that he's trying to fix. You're
looking at data that's Biden data. Do not try to
besmirch my President Trump with Biden's nonsense.
Speaker 2 (15:12):
Do you hear the manufacturing number is Biden data? I
just want to be very clear, that's your opinion. You're
entitled to it. You think that's his dates, not your
my opinion.
Speaker 1 (15:20):
Okay, what possible could change? Seriously, we are in early March.
My president took over January twentieth.
Speaker 3 (15:29):
You think economic data coming out in early March is
Donald Trump related data?
Speaker 1 (15:35):
Monthly?
Speaker 2 (15:37):
MISSUS Secretary? Are you okay? Are you suggesting we don't
have to get into an argument about it? You suggesting
so when bone yields drop in a market that's worth
trillions of dollars and investor's place bets off the back
of that economic data, that that data doesn't count front
of think that that data somehow misleading.
Speaker 1 (15:56):
I think that.
Speaker 3 (15:57):
Data is leading you to understand. If Joe Biden was
still in charge, you'd be in trouble. But you have
a new president. There's a new sheriff in town, and
I would bet, I would bet on the economic growth
that is coming from Donald Trump.
Speaker 1 (16:11):
You see the investments. You see it already.
Speaker 3 (16:15):
There's trillions of dollars of manufacturing moving to America. It's
moving to America. That means the cavalry is coming. For
every trillion dollars that invests in the United States of America,
that produces one percent of GDP growth, imagine that you
have a president bringing GDP growth directly to his economy.
Speaker 1 (16:37):
That's amazing.
Speaker 2 (16:38):
Mister Secretary. We appreciate your time and your opinion. As always, Sir,
the US Commerce Secretary, how would love maca on the
economic data, financial markets, and what's going to happen with
trade
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