Lance Thrailkill - Expert On Manufacturing, Business, and Tariffs Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
Yeah, the price of eggs is painful, that's for sure,
and terrass I guess could be at least temporarily painful
if they do end up triggering some sort of a recession.
I haven't heard too many people say that they thought
that's what's likely to happen, but I did hear new
US Commerce Secretary Howard Lutnick saying that it would be
worth it. A recession would be worth it because we

(00:24):
need to get control over our trade imbalance with other nations,
among other things. Lance thrill Kill joins US expert on manufacturing,
business and tariffs. Under what circumstances, Lance, would you see
tariffs potentially leading to a recession?

Speaker 2 (00:42):
Well, I mean I think that if it's a long
drawn out process. First off, I mean, so that stock
market is kind of, you know, the biggest indicator for
a recession. The stock market's supposed to be looking six
months forward, which is kind of what's concerning about it
right now with the recent you know, tanking. So I

(01:03):
would say that, you know, I think that it's a
critical that we get some agreements, particular with Canada and
Mexico locked in as soon as possible. But if this
thing gets drawn out potentially, I guess it could cause
a recession. That was the first i'd heard of it
as well.

Speaker 1 (01:19):
Yeah, it's got It's kind of interesting to me that,
you know, I think the Trump tactic, and it's usually
worked too great effect, is to propose these tariffs and
then the country you're proposing the tariffs to immediately backs
down and what it is you want them to back
down on, and that's the end of the tariff. We're
kind of struggling right now to get the cooperation we're
looking for from the Canadian government and they kind of

(01:43):
it seems they've kind of taken this whole tariff thing
kind of personally. How do you think it's going to
work out between US and Canada?

Speaker 2 (01:51):
Well, yeah, I think you're right that it's it's been
a little bit, for lack of a better way to
describe a pissing contest. I think it certainly didn't help
all the narrative about Canada becoming the first come to
our state. Rather, I think they took that personally, and
then you know, it's kind of been one thing after

(02:11):
another with you know, who can puff their chest out
further so, you know, which is all part of negotiations.
There's different styles and tactics and negotiations, and it appears
to this one both both parties are taking the hardball approach,
which has led to it, you know, not going in
the right direction thus far.

Speaker 1 (02:29):
Yeah. I think it's also kind of interesting. I think
one of the reasons why President Trump loves the idea
of tariff so much is that he realizes, of course,
it was a different world, but before the before we
had an internal revenue service and a national income tax,
that was the way the United States made money was
through tariffs, and at one point in time it was

(02:50):
enough money to actually fund the government without taxing Americans.

Speaker 2 (02:55):
Yeah, it wouldn't that be incredible? Yeah, I think that
would be ideal. And it's funny that that's now the
narrative kind of talking about. I was on a podcast
a couple of months ago and one of the other
manufacturing business owners suggested that type of vision as a
possibility and that he was thinking about. And you know,

(03:16):
I think where we landed on that was in order
to get there, it would takes such a long term vision,
you know, and with how the White House turns over
from you know, Democratic Party to Republican party, you know,
back and forth and has you know for a long time. Uh,
there's never been one long run of either party, which

(03:36):
I think is good and healthy for balance. But it
would take that type of vision, you know, to accomplish
such a thing. For example, you know, bringing American mills
back to the United States, which currently we're heavily dependent
on h you know, importing raw material to the United

(03:57):
States and then it going to distribution centers which and
slit the coils in the sheets and so, you know,
like in his last presidential term, I think they built
three or four new mills, which was a massive effort
and a lot of money. And so you know, you
can see if they only built three or four and

(04:17):
a four year period with a you know, significant capital investment,
then you know, doing it to be completely you know
independent and be able to support the United States manufacturing
would be such a more massive effort. Yeah, in decades.

Speaker 1 (04:33):
As you said, it would take the political will and
consistency of decades, not just a four year term or
an eight year term. Lance, Thanks for joining us personally
to talk to you, sir, appreciate it. Expert on manufacturing,
business and terrorists, that is Lance Thrill kill. It is
seven twenty seven