Japan, Tariffs, and The Trillion-Dollar Bet

Have you ever thought about tariffs as a "game-changer" rather than just a “political hot button”?

Did you know Japan is quietly investing $1 trillion in U.S. manufacturing—especially in southern and southwestern states? 

That’s right. 

In this new episode, Dan Sullivan and I dive deep into how tariffs, strategic factory moves, and AI-driven audits may soon reduce our taxes (yes, you read that right) while fueling unprecedented economic growth in America.

If that sounds like a Michael Bay movie script, you’re not far off—except this is playing out in real life, right now. We talk about Trump’s “reciprocal tariffs,” Elon Musk’s big-government audit with AI, and why countries like Japan are betting big on producing goods inside the U.S., instead of overseas. 

If you love big-picture, high-stakes drama with real entrepreneurial takeaways, you’ll want to tune in.

KEY INSIGHTS & TAKEAWAYS

1. Tariffs Are Making a Comeback
   • After WWII, the U.S. temporarily abandoned tariffs to rebuild other nations and contain the Soviet threat. Now that era is over, and “reciprocal tariffs” are in play—if you tax American goods, we’ll tax yours. Or you can just move your factories to the U.S.
2. Japan’s $1 Trillion Bet on American Manufacturing
   • Facing a shrinking workforce, Japan decided 30 years ago to build factories where they sell goods. Enter the U.S. south and southwest—lower labor costs, fewer unions, and easier access to American consumers.
3. Moving the U.S. Government to “Warp Speed”
   • Dan and I discuss Trump’s possible plan to use tariffs to fund government operations (hello, “External Revenue Service!”) while simultaneously lowering domestic taxes. If that works, it could trigger an economic boom.
4. AI Audits: Elon Musk’s Government Overhaul
   • Imagine real-time accounting for every federal check ever cut. That’s what happens when you unleash advanced AI to track spending—stopping fraud and inefficiency in its tracks. Lower costs, better governance, fewer excuses.
5. It’s Not Just About Politics
   • The reason these moves are so urgent? The U.S. economy is its greatest weapon and negotiation tool. If the numbers line up, say goodbye to bloated budgets and hello to rapid innovation.
6. The Western Hemisphere Is the New Growth Engine
   • Peter Zeihan’s research suggests that power is shifting west. Europe’s star may be fading, and the big action will be in North and South America—partly because the U.S. can pressure countries with economic, rather than military, force.
7. What It Means for Entrepreneurs (and You)
   • If America becomes the hottest manufacturing hub again, it spells massive opportunity: new factories, high-value jobs, and more disposable income at home. Plus, if government spending shrinks, taxes may drop—fueling startups, scale-ups, and everything in-between.

TIME STAMPS

[00:00:00] Tariffs 101 Dan explains how tariffs helped the U.S. become #1 by 1900, and why after WWII we artificially dropped them to contain the Soviet Union.

[00:03:10] Japan Moves In The backstory behind Japan’s multi-decade strategy: build factories in America to sidestep both tariffs and a shrinking domestic workforce.

[00:10:44] Economic vs. Military Power Mike and Dan explore how the real “weapon” now is the U.S. economy—not battleships. This is reshaping alliances, trade, and even the future of space exploration.

[00:14:26] Union vs. Non-Union States Why overseas giants choose red states over blue to minimize union costs—and how that might transform American politics.

[00:24:19] Elon Musk & Government AI Trump taps Musk to audit the entire U.S. government using advanced AI. The potential outcome? $3 trillion “lost” dollars suddenly reappear, possibly replacing the income tax with tariffs.

[00:32:57] Europe’s Diminish