Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Chicago Public school system is now bankrupt.
Speaker 2 (00:04):
But go ahead, voters, keep voting Democrat and see where
that leads you.
Speaker 3 (00:11):
Time now for the second hour the situation. I'm Jimmy
Sangenberger in for Michael Brown, and ladies and gentlemen, we
need more talkback participation because Alexa is the one person
so far with Jimmy Sangenberger in for Michael Brown, and
it really hurts my feelings.
Speaker 2 (00:29):
Dragon.
Speaker 4 (00:30):
We had an associate producer Alexa and associate producer Agent Jays.
Speaker 2 (00:35):
There you go, all you regular goober's out there.
Speaker 3 (00:38):
You got some work to do, that's right, and we
need more participation so that Alexa is not the only
one standing in the way of the cackle. All right,
let's get to some real topics of the day. Rick
Newman is senior columnists at Yahoo Finance, all around good
guy who offers some interesting perspectives on all things economics,
(01:03):
and he joins me, now, good morning, Rick, how are
you sir?
Speaker 1 (01:07):
Hey, Jimmy, I'm awake.
Speaker 2 (01:09):
You know that's a.
Speaker 3 (01:10):
Good starting point, right, I feel you there, especially with
the whirlwind of everything going on, including on the economic side,
because look, Rick, you and I are both aligned in
terms of tariffs and understanding their impact. We're not fans
of trade wars. I've never been on board with President Trump,
(01:30):
always been very critical in terms.
Speaker 2 (01:32):
Of his trade policies.
Speaker 3 (01:35):
And we see a lot of folks pointing to it
and saying, well, the data is not showing that prices
are rising, So there's no there there. We were told
they were going to go up and it's not happening.
What's the truth here.
Speaker 1 (01:47):
It is going to happen. There's just really no way
around it. But I mean, I sympathize with anybody who
has just tuned out, you know, the never ending developments
in the trade war. Tariffs are on, tariffs are off.
Who can keep track of this? I can tell you
it is a challenge for the best analysts to keep
track of what is happening with the Trump tariffs. But
(02:11):
do not take your eye off this ball, because this
is going to become very important. So the I think
a simple way to think about it now is that
when Trump took office, the average tax on imported goods
was very low. It was about two point five percent,
and right now, with all of the Trump tariffs, the
(02:31):
average tax on imported goods is around let's say fifteen percent,
maybe sixteen or seventeen percent, So that's an increase from
two point five percent to fifteen percent, And people can say, well,
why is that not yet? Show why don't I see
that showing up in price increases the way reporters and
economists have been saying. And the reason is that a
(02:53):
lot of the products on this that are on the
shelves now came into the country before the higher tariffs were.
In a fact, companies that import they saw the tariffs coming.
They massively stocked up before the tariffs so that they
could put off the pain as long as possible. But
the products that importers are bringing into the country now
(03:16):
have those higher tariffs on them. So when those when
the pre tariff inventories run out, and now we have
post tariff products coming out of the market, we are
going to see price increases. And I think we I
think there already are price increases. But companies learned to lesson.
They don't want to announce their raising prices, or if
(03:36):
they are raising prices, they don't want to say it's
because of the tariffs, because then Trump goes after you
and then you have a different problem. So I think
a lot of a lot of the price hikes that
are happening now and will happen in the future. They're
going to be kind of stealthy. But we're going to
have second quarter earning season with companies starting this week,
and they are going to have to They're going to
have to say something to their shareholders about what's happening
(03:59):
with cost and with pricing, and we are going to
see this. It's just taken a little bit longer than
some analysts expected.
Speaker 3 (04:08):
Now there will be listeners Rick Newman hearing our conversation
and going, yeah, you say that, but really, why are
we to count on that. Why doesn't the data give
us any sort of indication of this. What do you
say to someone who's going to be still skeptical and say,
the media kept saying this, kept saying this, It's just
not happened.
Speaker 2 (04:28):
There's no reason for me to think it actually will happen.
Speaker 1 (04:32):
It depends what data you look at. If you look
at data that shows you customs duties paid by importers
to the US Treasury, those are the tariffs that has spiked,
and you have to understand the way the tariffs work.
So if you're a company that imports products, you pay
the tariff as soon as you as soon as that
(04:52):
product arrives in the United States. Don't sell you don't
sell that product. You may not sell that product for
weeks and in sometimes months. I mean, if you're Walmart,
you you have standing inventories. Walmart is an importer, by
the way, so when Walmart imports products, it pays the
tariff upfront. And this is a real problem for small businesses,
(05:13):
by the way. I mean, if you talk to small
business owners that are exposed to the tariffs, it's showing.
It's showing, it has been showing up for three months,
and which you know, I've done reporting on this, and
a lot of them will say, look, I have to
pay this higher tariff up front, and I don't know
if I can pass on the whole cost of this
to my customer or I or the next customer down
(05:35):
the line. So in some cases they are they are
not taking they're not importing those products, even though that's
their business line. It messes up their financing. So if
you think this is not happening in the real world,
you are wrong. And I could set you up with
(05:57):
a bunch of business owners wh would say stop telling
me that this is not a problem. It's a huge problem.
And we're going to see that this is going to
have a real impact, especially on small businesses well.
Speaker 3 (06:07):
And frankly, if you are paying attention to your wallet,
maybe you're more cast strapped, and you go to walmart't
and you look at various things from food to toys
and other products, and you see the prices and you go, well,
that feels like it has increased. You may feel differently
from what the data shows at the moment, and then
(06:27):
you can see it kick. And a lot of it
depends as well on that economic position. Where are you
in terms of your ability to withstand the rising prices,
because you might feel.
Speaker 2 (06:40):
It a little bit more if you are more.
Speaker 3 (06:42):
Cast strapped than somebody who's a little more affluent.
Speaker 1 (06:46):
Yeah, and let me put a few numbers on this,
so you know, inflation is down. I mean, we sort
of solved the problem. And the current inflation rate is
two point three So in twenty twenty two, the inflation
rate peaked at nine percent and everybody felt that. Everybody
(07:07):
saw that. Everybody knows what nine percent inflation is. So
now it's two point three percent. That's pretty close to normal,
and economists think that the Trump tariffs are going to
push the inflation rate up by about one percentage point,
maybe one and a half percentage point, So it's going
to go from two point three to let's say three
point five percent mac you know, maybe four percent, but
(07:29):
that is an average. So some things are going to
go up by more and some things are not going
to go up at all. So you are going to
notice that clothing prices are going to go up, because
that's something we impourt a lot of from China and Vietnam.
Leather goods, what wallets and belts, auto parts, you're the
(07:50):
cost of getting your car fixed is already up by
a lot, and it's going to go up by more.
We're going to see probably some of this in the
back to school shopping season which is coming soon. Backpacks,
for example, shoes, so you know, if you need to
buy that stuff and you're on a tight budget, you're
you're going to be affected. It's going to feel like
(08:11):
much more than four percent inflation. And if you know
you're you're comfortable enough that you're saving a lot of
your paycheck, you're probably not going to.
Speaker 2 (08:20):
Care that much.
Speaker 3 (08:22):
Again, Rick Newman, our guest senior columnist at Yahoo Finance.
You know, it's really interesting when you look at data
and how it can be skewed. So there was the
headline CNBC Treasury posts unexpected surplus in June as tariff
receipts surge.
Speaker 2 (08:40):
With government red ink swelling throughout the year.
Speaker 3 (08:43):
June saw a surplus of just over twenty seven billion dollars,
and customs duties totaled about twenty seven billion dollars. So
I had somebody on social media say that Trump outsmarted
you all now with regarded tariffs. The proof is last
month's receipts produced twenty seven point two billion dollars. And
(09:06):
then you had Speaker of the House Mike Johnson yesterday
on Fox News say.
Speaker 5 (09:10):
This, well, and the tariff policy and the other policies
of the Trump administration have been wildly successful. In fact,
we had a budget surplus, as you know, in the
month of June, the first time since twenty seventeen, when
President Trump was last in the White House.
Speaker 3 (09:23):
So more of that as a head and then the
host of that program, Marina Bartoromo, followed up with.
Speaker 6 (09:28):
This, I'm really glad you mentioned the surplus. I was
going to raise that because there was so much hysteria
over President Trump's tariffs. And yet look what it is
getting you, one hundred billion dollars in tariff revenue on
an annualized basis actually creating a surplus for the month
of June. The last time we saw a surplus was
the president's first term in twenty seventeen.
Speaker 3 (09:47):
I don't know about you, Rick Newman, but it's not
every day that you hear Republicans celebrating a tax increase,
which is what tariffs are bringing in more revenue to
the federal government.
Speaker 1 (09:59):
Jimmy, this is just total smoke and mirrors.
Speaker 2 (10:02):
Yes, it is going on.
Speaker 1 (10:03):
This is a tax. This is a tax on Americans.
Is that one Republicans now stand for raising our taxes.
We are gonna we are paying this tariff. And again,
I want people to talk to small business owners. They
are the ones that are first paying the tariffs. And uh,
even and bigger companies that import these products that we
(10:24):
all buy, they are paying the tariffs and we are
going to end up paying the tariffs. So uh and
by the way, I think, I think, I think all
the people celebrating one month of uh of what's happening
with fisclub. They should do a report every month. So
let's do a report every month. Guess what we're no
matter what, we're going to have uh a deficit this
(10:45):
year of around two trillion dollars. You know, federal receipts
that go up and down. I mean, one of the
things that happened is during tax season, they more money
comes in, so the situation looks better. So some of
that could be delayed tax payments. But we're going to
have almost a two trillion dollar deficit this year, and
this is already beginning to show up in financial markets
(11:07):
through higher interest rates. So I hope all the people
celebrating what happened in one month, I hope they do
a monthly report on what's happening with the federal deficit
because it's not going to be that good.
Speaker 2 (11:19):
How about a daily report one day this month.
Speaker 3 (11:22):
Already earlier this month, the debt deficit jumped three hundred
and sixty six billion dollars in one day. It's like
they pushed off the expenses for June into July, and
that sort of, you know, hid the reality of the numbers.
And then there's a celebration that just doesn't belong. But
here's the real question, Rick Newman. One final thing in
(11:43):
regards to tariffs is what kind of a deal big picture?
I mean, there's so many different deals that they're negotiating.
Speaker 2 (11:51):
We have the EU tariffs.
Speaker 3 (11:52):
That are set to go into effect like so many
others on August first, the EU saying we're hoping to
get a deal that will alleviate or prove this, so
we're not going to retaliate at this time. But what
is it that seems to be the goal for the
Trump administration Because on the one hand they celebrate terriffs
bringing in more revenue. Then they talk about, hey, we
(12:13):
want to get parody and have a.
Speaker 2 (12:15):
Fair trade deal.
Speaker 3 (12:16):
But then when asked about using the trade deficit, which
is a bogus statistic in and of itself, as the
basis for these things, they're like, well, we don't really
want to. If they promise to get rid of all tariffs,
that's not good enough.
Speaker 2 (12:30):
What are they even going for here?
Speaker 1 (12:34):
There are two different things going on. At the beginning
of his term, Trump said he wanted more domestic manufacturing
and that was the purpose. Here's what has happened in
the meanwhile. Trump has figured out that tariffs. He basically
has unlimited ability to impose tariffs for any reason he can,
and if he does, if it's not a legitimate reason,
(12:55):
he can just make up a reason. Trump likes this
because it gives him leverage to do almost anything he wants.
This is a power play by Trump, and the best
example of this is what he just did with Brazil,
where he said he's imposing a fifty percent tariff on
imports from from Brazil unless they stop the prosecution of
(13:16):
the former president Balsonaro. Guess what, we have a trade
surplus Brazil. We sell more to Brazil than they sell
to us, so that that is exactly the situation Trump
wants to see everywhere. Yet he is still imposing tariffs
on Brazil, and that tells you this has nothing to
do with economics in this instance. And I don't this
(13:38):
idea that we might get to some end to state
with tariffs where these we have all these deals in place.
I doubt it. I think we're I think Trump is
going to be threatening tariffs for the entirety of this
presidential term because he's figured out that that's a weapon
that he can use to get something from from other
countries or from other people, So he is always going
(13:59):
to be looking for some way he can use the tariffs.
So I think they're here indefinitely.
Speaker 3 (14:05):
I do too, which is why I hope ultimately the
case that was before the US Court of International Trade,
I hope that that gets to the US Supreme Court
and they make the right rulings saying that the President
is overstepped. And even if you were to conclude that
Congress authorize this, which they did not, let's say that
you concluded that that is an improper, unconstitutional delegation of
(14:28):
authority from Congress to the president. Just a couple of
minutes left with our guest Rick Newman, senior columnists that
Yahoo Finance. Let's talk about the stock market for a moment.
We've been seeing the market right and high for a
while now, although this morning in the pre markets, we
are seeing the pre markets down slightly as we are
(14:51):
ten minutes less than ten minutes away for markets opening.
Speaker 2 (14:54):
What do you make of the market right.
Speaker 1 (14:55):
Now, Well, it's not flying as high as you might think. So, yes,
we have had a new record highs finally in the
in the US market. But you know what a new
record high is not normally unusual. I mean, you know,
when they helped. When the economy is healthy, stock market
usually goes up, and of course, of course it does
(15:18):
go up over time. If I have recently done a
story comparing the US market to what's happening in other markets,
and guess what, the US stocks are badly trailing almost
every other stock market in the world. We are we
are trailing a global stock index. We are behind uh
(15:38):
South Korea, We're behind Mexico, We're behind Europe. I mean,
European stocks are outperforming US stocks. So what you know,
that has not been the case in UH in a
long time. So what's happened in the United States is
investors think that the tear that the trade war Trump
trade war is I'm going to level out and it's
(16:01):
not going to be that damaging. And so far, you know,
we have seen uh A Corporate America really doing a
pretty good job navigating this. But it is still early.
I mean, so we're gonna get second quarter earnings again
coming coming during the next few weeks, and we're going
to find out is the trade war starting to damage
(16:22):
corporate profits more than investors think, or are the uh
you know, the big companies in the US stock market
finding ways to remain profitable. This is a really good
thing about the United States. Companies are just our companies
are just extraordinarily good at turning turning a profit. So
(16:44):
that let's let's let's hope that continues to last.
Speaker 3 (16:48):
Yes, indeed, Rick Newman, senior columnist at Yahoo Finance, read
his staff, Ladies and gentlemen. Always an interesting perspective, especially say,
if you've been listening to our tariff talk and you did,
and you enjoy disagreement, you might agree, disagree.
Speaker 2 (17:05):
You never know with Rick Newman, Rick, good to talk
with your brother. Thanks for the time.
Speaker 1 (17:09):
Shame Jimmy, see man fie.
Speaker 3 (17:11):
Three oh three seven to one three eighty two fifty
five three oh three seven one three.
Speaker 2 (17:16):
Eighty two fifty five text line.
Speaker 3 (17:18):
Three three one zero three text Mike or Michael first, agree, disagree.
I want to hear from you talkbacks too.
Speaker 4 (17:28):
Good morning, Jimmy. Hey, I love you, but you're incredibly shortsighted.
You're complaining about the short game when Trump's playing the
long game. He's bringing a lot of people, a lot
of countries to the table, whereas we haven't had that
in decades. So take your little cherry picked expert there,
(17:51):
and you guys go play the butt game when it
all comes out on Trump's.
Speaker 3 (17:55):
Side, Jimmy Sangenberger in for Michael Brown.
Speaker 2 (18:00):
For but but but but but but.
Speaker 3 (18:03):
I'll get to the talk back in a moment, don't
you worry. But I'm not gonna leave the goobers hanging.
But I just have to say Buddy Guy when he's
eighty nine, I think, and he's still touring now, He's
not touring as much pull back, but he is the
reigning king of the blues and he's got a brand
new album coming out the end of this month. That
(18:25):
was the latest single from that album. The album entitled
Ain't Done with the Blues, which sounds about right for
the man himself, Buddy Guy, that tune blues chase the
blues away. You know, I have to say this about
Buddy Guy because I've seen him a bunch of concert.
(18:47):
He is the one guy that you will see in
a concert where he will bring his finger up to
his mouth and go sh then have a big old
smile on his face and it is silent. I don't
care how many people are there. He is able to
get everybody to shut up, except for the last show
(19:09):
I went to. There were a few drunkards who were
making obnoxious noises. But other than that, he's able to
silence everybody, which I don't want to silence you. Three
three one zero three is the checks line. Gooper's make
sure to put Mike or Michael in the beginning.
Speaker 2 (19:27):
You can call in as well.
Speaker 3 (19:28):
Three zero three seven one three eight two five five,
And then of course the talkbacks.
Speaker 2 (19:35):
The long game.
Speaker 3 (19:36):
Huh, Trump's always steps ahead. Now. Look, I voted for
President Trump all three times. I support him broadly. There
are just some areas that I disagree, and this.
Speaker 2 (19:48):
Is one of them.
Speaker 3 (19:48):
I am a traditional conservative, small government and free trade,
and I'm not free trade just because it sounds nicer,
because some cherry picn economic ex berts like to say, hey,
this is great. This is an area of study that
I have focused on in depth, understand quite well, and
(20:13):
care about. But here's the thing. The two reasons why
I'm a free trade guy. Number one, because freedom. I
don't believe that government should impede or get in the
way of business except in extraordinary circumstances. And that's an
effect what higher terrorists do. It is a tax increase
(20:34):
and it impacts Americans and causes higher prices. That's number two,
the real world economic impacts. The data is the data
from not just decades, but really centuries in terms of
trade and how when you have free trade that promotes
greater prosperity, an impediment set up.
Speaker 2 (20:56):
By an all knowing, all powerful government get in the
way of that, get in the way of prosperity.
Speaker 3 (21:04):
As for this, I don't know what the hell the
long game is for President Trump.
Speaker 2 (21:09):
Please let me know which is it.
Speaker 3 (21:12):
Is it bringing in higher revenue more money from tariffs,
because that seems to be something Speaker Johnson is celebrating.
Speaker 5 (21:20):
I think the tariff policy and the other policies of
the Trump administration have been wildly successful. In fact, we
had a budget surplus, as you know, in the month
of June, the first time since twenty seventeen, when President
Trump was last in the White House.
Speaker 2 (21:30):
So more of that is a hitty because of tariffs.
Speaker 3 (21:33):
All Republicans, Hey, we raised Texas and it's bringing in
more money.
Speaker 2 (21:36):
Woo. Sorry, that ain't me. I'm a Republican.
Speaker 3 (21:41):
I don't like raising taxes and celebrating more money. But
twenty seven billion dollars. Oh my gosh, ladies and gentlemen,
three hundred and sixty six billion dollars increase in the
debt in one day earlier this month, one single day,
and we're celebrating twenty seven billion dollars in tariff money
(22:01):
coming in in the month of June, because one month
we happen to have a very small surplus that about
equates to the amount brought in from tariffs.
Speaker 2 (22:11):
Is the goal to raise money?
Speaker 3 (22:13):
Is the goal to bring down trade barriers so that
they don't make it more difficult for American goods to
get into those countries other countries, whichever they are. Well,
if that was the objective, then, Everrik Newman pointed out
in the lax last segment, president Trump would not be
taxing Brazil, which we have a surplus more goods going
(22:37):
to Brazil.
Speaker 2 (22:38):
Now.
Speaker 3 (22:39):
I think that Bolsonario's probably getting screwed. It's probably a
witch hunt. I don't know that for sure that's the
former president of Brazil. But even if it was and
is the case, it is not the business of the
president of the United States to say, hey, we want
you to stop tariffs, or rather to this political trial
(23:03):
of a political leader in your own country, and we
are going to tax you out the wazoo fifty percent
tariffs until you comply. That suggests that there's much more
in terms of what he wants. He just wants to
use tariffs as a cudgel for you name it.
Speaker 2 (23:21):
There's no consistency. So how is a country?
Speaker 3 (23:24):
How are businesses supposed to plan and to make decisions?
You talk about a big business, you talk about a
small business. They're making decisions that are not just day
to day, month to month, but years out, five, ten years. Sometimes,
if you don't have some consistency or understanding of what
(23:47):
the goals are, how are you supposed to plan? That's
the problem here, And it's any number of reasons for
the tariffs. One day, it's we want to bring and
more tax revenue to the federal government. It's some people
will say, well, we want to replace the income tax
(24:08):
with terrists.
Speaker 2 (24:08):
Let's do that, never.
Speaker 3 (24:10):
Mind the fact that the income tax ain't going anywhere,
and you're just going to end up with higher taxes
into perpetuity if you go on that route, And tariffs
will never bring in enough to cover more than a
fraction even if you bought one hundred percent tariffs all
over a fraction of the federal government's budget every year
(24:35):
just won't happen. But then there's oh, well, we want
to bring down trade barriers, except when we don't. Testimony
from top Trump officials were like, ah, no, who was it.
Speaker 2 (24:51):
Oh his name escapes me.
Speaker 3 (24:52):
It was testifying before Congress a couple months back and
was asked by Senator John Kennedy about a scenario with Vietnam,
and basically they said, oh, we're not going to take
the deal. Wouldn't just take it if they were to
say we'd get rid of all trade barriers. Is it
that we want to export more American products over there? No,
(25:13):
it's oh, we want to bring back manufacturing into the
United States. That's the other objective at times, but it depends.
Speaker 2 (25:23):
Sometimes it's with a particular industry.
Speaker 3 (25:24):
You look at copper and the fifty percent tariff set
to go in effect on August first for copper, Copper
prices already have hit a record because, oh, look, we
can raise prices now because we're going to be protected
by the government, by the Feds. I'm sorry, this long
(25:47):
game concept just doesn't fly.
Speaker 2 (25:50):
Yeah, we have.
Speaker 3 (25:51):
Some some businesses that are bringing manufacturing here that you
could make the case or influence to an extent by
the Trump tariff policies. But you can cherry pick examples
of that from certain companies. Okay, but that's very different
from a massive shift to making the United States a
(26:13):
manufacturing based economy. Again, that ain't happening. We've moved on.
Three three one zero three is the text line talkbacks
as well on the iHeartRadio app.
Speaker 2 (26:30):
And three zero three seven one three eighty two fifty five.
Speaker 3 (26:33):
If you are ticked off enough by yours truly to
actually call in, I'm sorry, It's just that's how I
see it. Sorry, not sorry. Jimmy Sangenberger in for Michael Brown,
cherry picked co guest host today as we continue on
Denver's talk station at six thirty.
Speaker 1 (26:54):
Gay out, Jimmy, I'm confused the twenty seven billion dollars
surface that Mike.
Speaker 4 (26:59):
Johnson spoke about yesterday, that's not a positive for the
American people.
Speaker 3 (27:06):
First of all, I literally was applauding during that bumper
choice when I throw it to Dragon and say, hey, Dragon,
brother plugging the bumper here.
Speaker 2 (27:16):
He never fails, You never fail. And that was picking Stevie.
Speaker 3 (27:20):
A beautiful one of the best covers you could imagine
of that tune things I used to do amazing Jimmy
Sangenberger in for Michael Brown.
Speaker 2 (27:29):
And yeah, it isn't a good thing.
Speaker 3 (27:33):
Very clearly, it is not a good thing because what
that means is the American people are paying higher prices.
Speaker 2 (27:41):
That's just that's what's going on. We're paying for it.
Speaker 3 (27:45):
You think the tariffs are just magically paid the companies
reading them as long as possible, particularly because of inventories
that they have imported already, but that ain't gonna last.
Number one and number two American companies are the ones
(28:05):
doing the importing and paying the tariffs.
Speaker 2 (28:10):
It is.
Speaker 3 (28:11):
It is astonishing to think otherwise, and to think that
it is a good thing to raise taxes.
Speaker 2 (28:19):
On the private sector and say, oh.
Speaker 3 (28:21):
Yay, it's got more revenue coming into the federal government
from raising taxes.
Speaker 2 (28:26):
Wohoo, What good are we getting?
Speaker 3 (28:28):
What are we actually getting from the higher tariffs? Tony's
even billion dollars is a rounding, not even not even close.
It's a fraction of a fraction of a rounding error
in the federal budget. I did get a text here
from Goober four three four four. I agree with you,
(28:50):
Harmonica Guy. By the way, I appreciate that. The first
person do call me Harmonica guy or Jimmy the Harmonica
Guy was the late Judge Ken Starr, who I had
in studio on an old show of mine several years back,
and he called me that Jimmy the Harmonica Guy. But
I digress. Trump's tariffs and trade wars and taxes and
the big beautiful Bill of reinforced my decision to tear
(29:13):
up my voting card.
Speaker 2 (29:14):
Republicans are dead to me.
Speaker 3 (29:16):
This is what I expect from Democrats, which makes it
even more disappointing coming from so called conservatives and the
sycophants that continue to support Trump. So Guber forty three
forty four is gamer Gault, then we've got Goober eighty
two thirteen.
Speaker 2 (29:32):
Free trade is a two way street.
Speaker 3 (29:35):
Other countries have over tariffed US goods for years, Yes.
Speaker 2 (29:38):
Some have, but Canada and Mexico.
Speaker 3 (29:41):
President Trump negotiated his team negotiated the US Mexico Canada
Agreement the USMCA in his presidency. It was good enough
for him. He touted it when he ran for president
and said, but I'm going to get an even better deal. Now, well,
we haven't got gotten a better deal of any kind
(30:01):
with Canada and Mexico, but they're not over tariffing us.
In fact, for example, on dairy Okay, yeah, once you
there is a certain quota in terms of tariffs on
dairy products going into Canada.
Speaker 2 (30:21):
But it isn't until you get to that amount. I
forget what it is.
Speaker 3 (30:25):
However much imported into Canada that these two hundred percent
tariffs are something kick in. So they can say, oh
my gosh, our dairy products are being tariffed, taxed two
hundred percent, But we don't even come close to importing
enough for that tariff amount to kick in. So there's
(30:49):
there's a lot more to it. But we live, unfortunately
in a world where nuance isn't allowed. Now, on the
other side, just wait until you hear my Epstein take.
Speaker 2 (31:00):
Trump bondy are they right? Huh?
Speaker 3 (31:04):
Will you agree with Trump or will you agree with
somebody else? Because I agree with Trump, stay with us.
Chicago Public school system is now bankrupt.
Speaker 2 (00:04):
But go ahead, voters, keep voting Democrat and see where
that leads you.
Speaker 3 (00:11):
Time now for the second hour the situation. I'm Jimmy
Sangenberger in for Michael Brown, and ladies and gentlemen, we
need more talkback participation because Alexa is the one person
so far with Jimmy Sangenberger in for Michael Brown, and
it really hurts my feelings.
Speaker 2 (00:29):
Dragon.
Speaker 4 (00:30):
We had an associate producer Alexa and associate producer Agent Jays.
Speaker 2 (00:35):
There you go, all you regular goober's out there.
Speaker 3 (00:38):
You got some work to do, that's right, and we
need more participation so that Alexa is not the only
one standing in the way of the cackle. All right,
let's get to some real topics of the day. Rick
Newman is senior columnists at Yahoo Finance, all around good
guy who offers some interesting perspectives on all things economics,
(01:03):
and he joins me, now, good morning, Rick, how are
you sir?
Speaker 1 (01:07):
Hey, Jimmy, I'm awake.
Speaker 2 (01:09):
You know that's a.
Speaker 3 (01:10):
Good starting point, right, I feel you there, especially with
the whirlwind of everything going on, including on the economic side,
because look, Rick, you and I are both aligned in
terms of tariffs and understanding their impact. We're not fans
of trade wars. I've never been on board with President Trump,
(01:30):
always been very critical in terms.
Speaker 2 (01:32):
Of his trade policies.
Speaker 3 (01:35):
And we see a lot of folks pointing to it
and saying, well, the data is not showing that prices
are rising, So there's no there there. We were told
they were going to go up and it's not happening.
What's the truth here.
Speaker 1 (01:47):
It is going to happen. There's just really no way
around it. But I mean, I sympathize with anybody who
has just tuned out, you know, the never ending developments
in the trade war. Tariffs are on, tariffs are off.
Who can keep track of this? I can tell you
it is a challenge for the best analysts to keep
track of what is happening with the Trump tariffs. But
(02:11):
do not take your eye off this ball, because this
is going to become very important. So the I think
a simple way to think about it now is that
when Trump took office, the average tax on imported goods
was very low. It was about two point five percent,
and right now, with all of the Trump tariffs, the
(02:31):
average tax on imported goods is around let's say fifteen percent,
maybe sixteen or seventeen percent, So that's an increase from
two point five percent to fifteen percent, And people can say, well,
why is that not yet? Show why don't I see
that showing up in price increases the way reporters and
economists have been saying. And the reason is that a
(02:53):
lot of the products on this that are on the
shelves now came into the country before the higher tariffs were.
In a fact, companies that import they saw the tariffs coming.
They massively stocked up before the tariffs so that they
could put off the pain as long as possible. But
the products that importers are bringing into the country now
(03:16):
have those higher tariffs on them. So when those when
the pre tariff inventories run out, and now we have
post tariff products coming out of the market, we are
going to see price increases. And I think we I
think there already are price increases. But companies learned to lesson.
They don't want to announce their raising prices, or if
(03:36):
they are raising prices, they don't want to say it's
because of the tariffs, because then Trump goes after you
and then you have a different problem. So I think
a lot of a lot of the price hikes that
are happening now and will happen in the future. They're
going to be kind of stealthy. But we're going to
have second quarter earning season with companies starting this week,
and they are going to have to They're going to
have to say something to their shareholders about what's happening
(03:59):
with cost and with pricing, and we are going to
see this. It's just taken a little bit longer than
some analysts expected.
Speaker 3 (04:08):
Now there will be listeners Rick Newman hearing our conversation
and going, yeah, you say that, but really, why are
we to count on that. Why doesn't the data give
us any sort of indication of this. What do you
say to someone who's going to be still skeptical and say,
the media kept saying this, kept saying this, It's just
not happened.
Speaker 2 (04:28):
There's no reason for me to think it actually will happen.
Speaker 1 (04:32):
It depends what data you look at. If you look
at data that shows you customs duties paid by importers
to the US Treasury, those are the tariffs that has spiked,
and you have to understand the way the tariffs work.
So if you're a company that imports products, you pay
the tariff as soon as you as soon as that
(04:52):
product arrives in the United States. Don't sell you don't
sell that product. You may not sell that product for
weeks and in sometimes months. I mean, if you're Walmart,
you you have standing inventories. Walmart is an importer, by
the way, so when Walmart imports products, it pays the
tariff upfront. And this is a real problem for small businesses,
(05:13):
by the way. I mean, if you talk to small
business owners that are exposed to the tariffs, it's showing.
It's showing, it has been showing up for three months,
and which you know, I've done reporting on this, and
a lot of them will say, look, I have to
pay this higher tariff up front, and I don't know
if I can pass on the whole cost of this
to my customer or I or the next customer down
(05:35):
the line. So in some cases they are they are
not taking they're not importing those products, even though that's
their business line. It messes up their financing. So if
you think this is not happening in the real world,
you are wrong. And I could set you up with
(05:57):
a bunch of business owners wh would say stop telling
me that this is not a problem. It's a huge problem.
And we're going to see that this is going to
have a real impact, especially on small businesses well.
Speaker 3 (06:07):
And frankly, if you are paying attention to your wallet,
maybe you're more cast strapped, and you go to walmart't
and you look at various things from food to toys
and other products, and you see the prices and you go, well,
that feels like it has increased. You may feel differently
from what the data shows at the moment, and then
(06:27):
you can see it kick. And a lot of it
depends as well on that economic position. Where are you
in terms of your ability to withstand the rising prices,
because you might feel.
Speaker 2 (06:40):
It a little bit more if you are more.
Speaker 3 (06:42):
Cast strapped than somebody who's a little more affluent.
Speaker 1 (06:46):
Yeah, and let me put a few numbers on this,
so you know, inflation is down. I mean, we sort
of solved the problem. And the current inflation rate is
two point three So in twenty twenty two, the inflation
rate peaked at nine percent and everybody felt that. Everybody
(07:07):
saw that. Everybody knows what nine percent inflation is. So
now it's two point three percent. That's pretty close to normal,
and economists think that the Trump tariffs are going to
push the inflation rate up by about one percentage point,
maybe one and a half percentage point, So it's going
to go from two point three to let's say three
point five percent mac you know, maybe four percent, but
(07:29):
that is an average. So some things are going to
go up by more and some things are not going
to go up at all. So you are going to
notice that clothing prices are going to go up, because
that's something we impourt a lot of from China and Vietnam.
Leather goods, what wallets and belts, auto parts, you're the
(07:50):
cost of getting your car fixed is already up by
a lot, and it's going to go up by more.
We're going to see probably some of this in the
back to school shopping season which is coming soon. Backpacks,
for example, shoes, so you know, if you need to
buy that stuff and you're on a tight budget, you're
you're going to be affected. It's going to feel like
(08:11):
much more than four percent inflation. And if you know
you're you're comfortable enough that you're saving a lot of
your paycheck, you're probably not going to.
Speaker 2 (08:20):
Care that much.
Speaker 3 (08:22):
Again, Rick Newman, our guest senior columnist at Yahoo Finance.
You know, it's really interesting when you look at data
and how it can be skewed. So there was the
headline CNBC Treasury posts unexpected surplus in June as tariff
receipts surge.
Speaker 2 (08:40):
With government red ink swelling throughout the year.
Speaker 3 (08:43):
June saw a surplus of just over twenty seven billion dollars,
and customs duties totaled about twenty seven billion dollars. So
I had somebody on social media say that Trump outsmarted
you all now with regarded tariffs. The proof is last
month's receipts produced twenty seven point two billion dollars. And
(09:06):
then you had Speaker of the House Mike Johnson yesterday
on Fox News say.
Speaker 5 (09:10):
This, well, and the tariff policy and the other policies
of the Trump administration have been wildly successful. In fact,
we had a budget surplus, as you know, in the
month of June, the first time since twenty seventeen, when
President Trump was last in the White House.
Speaker 3 (09:23):
So more of that as a head and then the
host of that program, Marina Bartoromo, followed up with.
Speaker 6 (09:28):
This, I'm really glad you mentioned the surplus. I was
going to raise that because there was so much hysteria
over President Trump's tariffs. And yet look what it is
getting you, one hundred billion dollars in tariff revenue on
an annualized basis actually creating a surplus for the month
of June. The last time we saw a surplus was
the president's first term in twenty seventeen.
Speaker 3 (09:47):
I don't know about you, Rick Newman, but it's not
every day that you hear Republicans celebrating a tax increase,
which is what tariffs are bringing in more revenue to
the federal government.
Speaker 1 (09:59):
Jimmy, this is just total smoke and mirrors.
Speaker 2 (10:02):
Yes, it is going on.
Speaker 1 (10:03):
This is a tax. This is a tax on Americans.
Is that one Republicans now stand for raising our taxes.
We are gonna we are paying this tariff. And again,
I want people to talk to small business owners. They
are the ones that are first paying the tariffs. And uh,
even and bigger companies that import these products that we
(10:24):
all buy, they are paying the tariffs and we are
going to end up paying the tariffs. So uh and
by the way, I think, I think, I think all
the people celebrating one month of uh of what's happening
with fisclub. They should do a report every month. So
let's do a report every month. Guess what we're no
matter what, we're going to have uh a deficit this
(10:45):
year of around two trillion dollars. You know, federal receipts
that go up and down. I mean, one of the
things that happened is during tax season, they more money
comes in, so the situation looks better. So some of
that could be delayed tax payments. But we're going to
have almost a two trillion dollar deficit this year, and
this is already beginning to show up in financial markets
(11:07):
through higher interest rates. So I hope all the people
celebrating what happened in one month, I hope they do
a monthly report on what's happening with the federal deficit
because it's not going to be that good.
Speaker 2 (11:19):
How about a daily report one day this month.
Speaker 3 (11:22):
Already earlier this month, the debt deficit jumped three hundred
and sixty six billion dollars in one day. It's like
they pushed off the expenses for June into July, and
that sort of, you know, hid the reality of the numbers.
And then there's a celebration that just doesn't belong. But
here's the real question, Rick Newman. One final thing in
(11:43):
regards to tariffs is what kind of a deal big picture?
I mean, there's so many different deals that they're negotiating.
Speaker 2 (11:51):
We have the EU tariffs.
Speaker 3 (11:52):
That are set to go into effect like so many
others on August first, the EU saying we're hoping to
get a deal that will alleviate or prove this, so
we're not going to retaliate at this time. But what
is it that seems to be the goal for the
Trump administration Because on the one hand they celebrate terriffs
bringing in more revenue. Then they talk about, hey, we
(12:13):
want to get parody and have a.
Speaker 2 (12:15):
Fair trade deal.
Speaker 3 (12:16):
But then when asked about using the trade deficit, which
is a bogus statistic in and of itself, as the
basis for these things, they're like, well, we don't really
want to. If they promise to get rid of all tariffs,
that's not good enough.
Speaker 2 (12:30):
What are they even going for here?
Speaker 1 (12:34):
There are two different things going on. At the beginning
of his term, Trump said he wanted more domestic manufacturing
and that was the purpose. Here's what has happened in
the meanwhile. Trump has figured out that tariffs. He basically
has unlimited ability to impose tariffs for any reason he can,
and if he does, if it's not a legitimate reason,
(12:55):
he can just make up a reason. Trump likes this
because it gives him leverage to do almost anything he wants.
This is a power play by Trump, and the best
example of this is what he just did with Brazil,
where he said he's imposing a fifty percent tariff on
imports from from Brazil unless they stop the prosecution of
(13:16):
the former president Balsonaro. Guess what, we have a trade
surplus Brazil. We sell more to Brazil than they sell
to us, so that that is exactly the situation Trump
wants to see everywhere. Yet he is still imposing tariffs
on Brazil, and that tells you this has nothing to
do with economics in this instance. And I don't this
(13:38):
idea that we might get to some end to state
with tariffs where these we have all these deals in place.
I doubt it. I think we're I think Trump is
going to be threatening tariffs for the entirety of this
presidential term because he's figured out that that's a weapon
that he can use to get something from from other
countries or from other people, So he is always going
(13:59):
to be looking for some way he can use the tariffs.
So I think they're here indefinitely.
Speaker 3 (14:05):
I do too, which is why I hope ultimately the
case that was before the US Court of International Trade,
I hope that that gets to the US Supreme Court
and they make the right rulings saying that the President
is overstepped. And even if you were to conclude that
Congress authorize this, which they did not, let's say that
you concluded that that is an improper, unconstitutional delegation of
(14:28):
authority from Congress to the president. Just a couple of
minutes left with our guest Rick Newman, senior columnists that
Yahoo Finance. Let's talk about the stock market for a moment.
We've been seeing the market right and high for a
while now, although this morning in the pre markets, we
are seeing the pre markets down slightly as we are
(14:51):
ten minutes less than ten minutes away for markets opening.
Speaker 2 (14:54):
What do you make of the market right.
Speaker 1 (14:55):
Now, Well, it's not flying as high as you might think. So, yes,
we have had a new record highs finally in the
in the US market. But you know what a new
record high is not normally unusual. I mean, you know,
when they helped. When the economy is healthy, stock market
usually goes up, and of course, of course it does
(15:18):
go up over time. If I have recently done a
story comparing the US market to what's happening in other markets,
and guess what, the US stocks are badly trailing almost
every other stock market in the world. We are we
are trailing a global stock index. We are behind uh
(15:38):
South Korea, We're behind Mexico, We're behind Europe. I mean,
European stocks are outperforming US stocks. So what you know,
that has not been the case in UH in a
long time. So what's happened in the United States is
investors think that the tear that the trade war Trump
trade war is I'm going to level out and it's
(16:01):
not going to be that damaging. And so far, you know,
we have seen uh A Corporate America really doing a
pretty good job navigating this. But it is still early.
I mean, so we're gonna get second quarter earnings again
coming coming during the next few weeks, and we're going
to find out is the trade war starting to damage
(16:22):
corporate profits more than investors think, or are the uh
you know, the big companies in the US stock market
finding ways to remain profitable. This is a really good
thing about the United States. Companies are just our companies
are just extraordinarily good at turning turning a profit. So
(16:44):
that let's let's let's hope that continues to last.
Speaker 3 (16:48):
Yes, indeed, Rick Newman, senior columnist at Yahoo Finance, read
his staff, Ladies and gentlemen. Always an interesting perspective, especially say,
if you've been listening to our tariff talk and you did,
and you enjoy disagreement, you might agree, disagree.
Speaker 2 (17:05):
You never know with Rick Newman, Rick, good to talk
with your brother. Thanks for the time.
Speaker 1 (17:09):
Shame Jimmy, see man fie.
Speaker 3 (17:11):
Three oh three seven to one three eighty two fifty
five three oh three seven one three.
Speaker 2 (17:16):
Eighty two fifty five text line.
Speaker 3 (17:18):
Three three one zero three text Mike or Michael first, agree, disagree.
I want to hear from you talkbacks too.
Speaker 4 (17:28):
Good morning, Jimmy. Hey, I love you, but you're incredibly shortsighted.
You're complaining about the short game when Trump's playing the
long game. He's bringing a lot of people, a lot
of countries to the table, whereas we haven't had that
in decades. So take your little cherry picked expert there,
(17:51):
and you guys go play the butt game when it
all comes out on Trump's.
Speaker 3 (17:55):
Side, Jimmy Sangenberger in for Michael Brown.
Speaker 2 (18:00):
For but but but but but but.
Speaker 3 (18:03):
I'll get to the talk back in a moment, don't
you worry. But I'm not gonna leave the goobers hanging.
But I just have to say Buddy Guy when he's
eighty nine, I think, and he's still touring now, He's
not touring as much pull back, but he is the
reigning king of the blues and he's got a brand
new album coming out the end of this month. That
(18:25):
was the latest single from that album. The album entitled
Ain't Done with the Blues, which sounds about right for
the man himself, Buddy Guy, that tune blues chase the
blues away. You know, I have to say this about
Buddy Guy because I've seen him a bunch of concert.
(18:47):
He is the one guy that you will see in
a concert where he will bring his finger up to
his mouth and go sh then have a big old
smile on his face and it is silent. I don't
care how many people are there. He is able to
get everybody to shut up, except for the last show
(19:09):
I went to. There were a few drunkards who were
making obnoxious noises. But other than that, he's able to
silence everybody, which I don't want to silence you. Three
three one zero three is the checks line. Gooper's make
sure to put Mike or Michael in the beginning.
Speaker 2 (19:27):
You can call in as well.
Speaker 3 (19:28):
Three zero three seven one three eight two five five,
And then of course the talkbacks.
Speaker 2 (19:35):
The long game.
Speaker 3 (19:36):
Huh, Trump's always steps ahead. Now. Look, I voted for
President Trump all three times. I support him broadly. There
are just some areas that I disagree, and this.
Speaker 2 (19:48):
Is one of them.
Speaker 3 (19:48):
I am a traditional conservative, small government and free trade,
and I'm not free trade just because it sounds nicer,
because some cherry picn economic ex berts like to say, hey,
this is great. This is an area of study that
I have focused on in depth, understand quite well, and
(20:13):
care about. But here's the thing. The two reasons why
I'm a free trade guy. Number one, because freedom. I
don't believe that government should impede or get in the
way of business except in extraordinary circumstances. And that's an
effect what higher terrorists do. It is a tax increase
(20:34):
and it impacts Americans and causes higher prices. That's number two,
the real world economic impacts. The data is the data
from not just decades, but really centuries in terms of
trade and how when you have free trade that promotes
greater prosperity, an impediment set up.
Speaker 2 (20:56):
By an all knowing, all powerful government get in the
way of that, get in the way of prosperity.
Speaker 3 (21:04):
As for this, I don't know what the hell the
long game is for President Trump.
Speaker 2 (21:09):
Please let me know which is it.
Speaker 3 (21:12):
Is it bringing in higher revenue more money from tariffs,
because that seems to be something Speaker Johnson is celebrating.
Speaker 5 (21:20):
I think the tariff policy and the other policies of
the Trump administration have been wildly successful. In fact, we
had a budget surplus, as you know, in the month
of June, the first time since twenty seventeen, when President
Trump was last in the White House.
Speaker 2 (21:30):
So more of that is a hitty because of tariffs.
Speaker 3 (21:33):
All Republicans, Hey, we raised Texas and it's bringing in
more money.
Speaker 2 (21:36):
Woo. Sorry, that ain't me. I'm a Republican.
Speaker 3 (21:41):
I don't like raising taxes and celebrating more money. But
twenty seven billion dollars. Oh my gosh, ladies and gentlemen,
three hundred and sixty six billion dollars increase in the
debt in one day earlier this month, one single day,
and we're celebrating twenty seven billion dollars in tariff money
(22:01):
coming in in the month of June, because one month
we happen to have a very small surplus that about
equates to the amount brought in from tariffs.
Speaker 2 (22:11):
Is the goal to raise money?
Speaker 3 (22:13):
Is the goal to bring down trade barriers so that
they don't make it more difficult for American goods to
get into those countries other countries, whichever they are. Well,
if that was the objective, then, Everrik Newman pointed out
in the lax last segment, president Trump would not be
taxing Brazil, which we have a surplus more goods going
(22:37):
to Brazil.
Speaker 2 (22:38):
Now.
Speaker 3 (22:39):
I think that Bolsonario's probably getting screwed. It's probably a
witch hunt. I don't know that for sure that's the
former president of Brazil. But even if it was and
is the case, it is not the business of the
president of the United States to say, hey, we want
you to stop tariffs, or rather to this political trial
(23:03):
of a political leader in your own country, and we
are going to tax you out the wazoo fifty percent
tariffs until you comply. That suggests that there's much more
in terms of what he wants. He just wants to
use tariffs as a cudgel for you name it.
Speaker 2 (23:21):
There's no consistency. So how is a country?
Speaker 3 (23:24):
How are businesses supposed to plan and to make decisions?
You talk about a big business, you talk about a
small business. They're making decisions that are not just day
to day, month to month, but years out, five, ten years. Sometimes,
if you don't have some consistency or understanding of what
(23:47):
the goals are, how are you supposed to plan? That's
the problem here, And it's any number of reasons for
the tariffs. One day, it's we want to bring and
more tax revenue to the federal government. It's some people
will say, well, we want to replace the income tax
(24:08):
with terrists.
Speaker 2 (24:08):
Let's do that, never.
Speaker 3 (24:10):
Mind the fact that the income tax ain't going anywhere,
and you're just going to end up with higher taxes
into perpetuity if you go on that route, And tariffs
will never bring in enough to cover more than a
fraction even if you bought one hundred percent tariffs all
over a fraction of the federal government's budget every year
(24:35):
just won't happen. But then there's oh, well, we want
to bring down trade barriers, except when we don't. Testimony
from top Trump officials were like, ah, no, who was it.
Speaker 2 (24:51):
Oh his name escapes me.
Speaker 3 (24:52):
It was testifying before Congress a couple months back and
was asked by Senator John Kennedy about a scenario with Vietnam,
and basically they said, oh, we're not going to take
the deal. Wouldn't just take it if they were to
say we'd get rid of all trade barriers. Is it
that we want to export more American products over there? No,
(25:13):
it's oh, we want to bring back manufacturing into the
United States. That's the other objective at times, but it depends.
Speaker 2 (25:23):
Sometimes it's with a particular industry.
Speaker 3 (25:24):
You look at copper and the fifty percent tariff set
to go in effect on August first for copper, Copper
prices already have hit a record because, oh, look, we
can raise prices now because we're going to be protected
by the government, by the Feds. I'm sorry, this long
(25:47):
game concept just doesn't fly.
Speaker 2 (25:50):
Yeah, we have.
Speaker 3 (25:51):
Some some businesses that are bringing manufacturing here that you
could make the case or influence to an extent by
the Trump tariff policies. But you can cherry pick examples
of that from certain companies. Okay, but that's very different
from a massive shift to making the United States a
(26:13):
manufacturing based economy. Again, that ain't happening. We've moved on.
Three three one zero three is the text line talkbacks
as well on the iHeartRadio app.
Speaker 2 (26:30):
And three zero three seven one three eighty two fifty five.
Speaker 3 (26:33):
If you are ticked off enough by yours truly to
actually call in, I'm sorry, It's just that's how I
see it. Sorry, not sorry. Jimmy Sangenberger in for Michael Brown,
cherry picked co guest host today as we continue on
Denver's talk station at six thirty.
Speaker 1 (26:54):
Gay out, Jimmy, I'm confused the twenty seven billion dollars
surface that Mike.
Speaker 4 (26:59):
Johnson spoke about yesterday, that's not a positive for the
American people.
Speaker 3 (27:06):
First of all, I literally was applauding during that bumper
choice when I throw it to Dragon and say, hey, Dragon,
brother plugging the bumper here.
Speaker 2 (27:16):
He never fails, You never fail. And that was picking Stevie.
Speaker 3 (27:20):
A beautiful one of the best covers you could imagine
of that tune things I used to do amazing Jimmy
Sangenberger in for Michael Brown.
Speaker 2 (27:29):
And yeah, it isn't a good thing.
Speaker 3 (27:33):
Very clearly, it is not a good thing because what
that means is the American people are paying higher prices.
Speaker 2 (27:41):
That's just that's what's going on. We're paying for it.
Speaker 3 (27:45):
You think the tariffs are just magically paid the companies
reading them as long as possible, particularly because of inventories
that they have imported already, but that ain't gonna last.
Number one and number two American companies are the ones
(28:05):
doing the importing and paying the tariffs.
Speaker 2 (28:10):
It is.
Speaker 3 (28:11):
It is astonishing to think otherwise, and to think that
it is a good thing to raise taxes.
Speaker 2 (28:19):
On the private sector and say, oh.
Speaker 3 (28:21):
Yay, it's got more revenue coming into the federal government
from raising taxes.
Speaker 2 (28:26):
Wohoo, What good are we getting?
Speaker 3 (28:28):
What are we actually getting from the higher tariffs? Tony's
even billion dollars is a rounding, not even not even close.
It's a fraction of a fraction of a rounding error
in the federal budget. I did get a text here
from Goober four three four four. I agree with you,
(28:50):
Harmonica Guy. By the way, I appreciate that. The first
person do call me Harmonica guy or Jimmy the Harmonica
Guy was the late Judge Ken Starr, who I had
in studio on an old show of mine several years back,
and he called me that Jimmy the Harmonica Guy. But
I digress. Trump's tariffs and trade wars and taxes and
the big beautiful Bill of reinforced my decision to tear
(29:13):
up my voting card.
Speaker 2 (29:14):
Republicans are dead to me.
Speaker 3 (29:16):
This is what I expect from Democrats, which makes it
even more disappointing coming from so called conservatives and the
sycophants that continue to support Trump. So Guber forty three
forty four is gamer Gault, then we've got Goober eighty
two thirteen.
Speaker 2 (29:32):
Free trade is a two way street.
Speaker 3 (29:35):
Other countries have over tariffed US goods for years, Yes.
Speaker 2 (29:38):
Some have, but Canada and Mexico.
Speaker 3 (29:41):
President Trump negotiated his team negotiated the US Mexico Canada
Agreement the USMCA in his presidency. It was good enough
for him. He touted it when he ran for president
and said, but I'm going to get an even better deal. Now, well,
we haven't got gotten a better deal of any kind
(30:01):
with Canada and Mexico, but they're not over tariffing us.
In fact, for example, on dairy Okay, yeah, once you
there is a certain quota in terms of tariffs on
dairy products going into Canada.
Speaker 2 (30:21):
But it isn't until you get to that amount. I
forget what it is.
Speaker 3 (30:25):
However much imported into Canada that these two hundred percent
tariffs are something kick in. So they can say, oh
my gosh, our dairy products are being tariffed, taxed two
hundred percent, But we don't even come close to importing
enough for that tariff amount to kick in. So there's
(30:49):
there's a lot more to it. But we live, unfortunately
in a world where nuance isn't allowed. Now, on the
other side, just wait until you hear my Epstein take.
Speaker 2 (31:00):
Trump bondy are they right? Huh?
Speaker 3 (31:04):
Will you agree with Trump or will you agree with
somebody else? Because I agree with Trump, stay with us.
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