John Carney - Finance & Economics Editor, Breitbart News Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:00):
To the change. Well, if you're Donald Trump, your tools
of the triter tariffs, right, That's that's how you end
up getting what you want. That's your negotiation tool. John
Carney's with US Financing Economics editor at bright Bard News.
There's still a lot of people are talking tough about
Trump's tariffs. Here is that if they're going to be superinflation, ay,
and this is not going to be good and people
have to spend a lot of more money for a

(00:21):
whole lot of things. But that's not usually what happens
with Trump's tariffs, is it.

Speaker 2 (00:27):
That's correct? Last time, Remember, we already went through a
round of Trump's tariffs and we had almost no inflation
at all, far less than we had under Joe Biden.
So there's no real reason to expect there to be inflation.
And sort of as a matter of economic theory, the

(00:47):
worst thing that could happen would be a one time
move up in prices of a few things, but not
a general increase in the price level. Remember, inflation isn't
the price of one thing going up, it's the price
of everything going up at the same time. That's what
we saw under Biden. We're not going to say that

(01:08):
with Trump's terariffs.

Speaker 1 (01:09):
Now, part of what you say with your article is
this is the path to free Try to explain it
if you would, right.

Speaker 2 (01:15):
So, one of the things Trump has proposed is what
he calls reciprocal tariffs. So these are tariffs where we
more or less mirror the tariffs other countries are imposing
on US. So if Germany imposes a ten percent tariff
on cars made in the US, we will impose a
ten percent terrifying cars made in Germany. What the reason

(01:38):
why this creates a path to free train is that
if Germany doesn't want that ten percent tariff on their cars,
which they don't because the US is a huge market
for them, the natural reaction for them is not to
raise their tariffs in a kind of tariff war tit
for tat, but to lower their tariffs so that we
will lower ours. Because that's what the reciprocal tariff does.

(02:01):
It works in alignment with the tariffs other countries imposed.
So as time goes on, we should start to see
people start to lower their tariffs around the world, making
a fairer, even playing field for US manufacturers, and I
think that will pave the path to free trade.

Speaker 1 (02:22):
Okay, do you think that even works with the Chinese.

Speaker 2 (02:26):
You know, the Chinese are a special case. They have
a problem. Their entire economy is based on rigging the
global trading system. I think that they could if they
were willing to go ahead and lower their tariffs. The
problem is that the Chinese system, even though they call

(02:47):
it communists, is a completely bizarre thing where they intentionally
suppress the wages of their workers. Only government officials and
well connected people. The Chinese oligarchs are able to get
wealthy in China. Everybody else has their wages suppressed, so

(03:07):
that exports can be very large. So what the ad
so that's from Germany is let's have a level playing field.
The ask from China is more like, we need you
to redo your entire economic system. So that could be
a little harder.

Speaker 1 (03:21):
Yeah, just a little. John, thank you, good to talk
to you, sir. Finance and Economics editor, Bright Bart News
That is John Carney, six twenty seven