Episode Transcript
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Speaker 1 (00:00):
They do the big August recess now and Congress, the Senate,
the leader there, Thune, had threatened to keep them to
get some of these Trump nominees confirmed, keep them there
in August, but they didn't. The House didn't have that issue.
And Don Bacon Nebraska, second District joins us for a
(00:20):
few minutes. Don, good morning, Hey, good.
Speaker 2 (00:22):
Morning Gary, and good morning to all your listeners.
Speaker 1 (00:24):
You bet good to have you back here. You were
down in Mexico visiting with, as I understand, the President
and other leaders down there, and this is crucial because
we're in we're in tariff era here with Donald Trump,
and this is our largest trading partner. What is the
latest on our on our relationship trade wise with Mexico.
Speaker 2 (00:46):
I wanted to go down there just to listen and learn.
You know, you read things, you hear, no assumptions, and
I thought, and I get, I get a chance to
talk to the president, the Foreign Minister, the Agriculture secretary,
the two top generals and admirals. Have to spend time
with them. And first of all, they rolled out the
red carpet. They're very they were. They were not icy
(01:06):
like I thought maybe they would be. They were I
know they were very kind of gracious, and you could tell
they know they need America. But I think we also
need Mexico. They are our largest trading partner, the largest
trading partner for Nebraska. I saw a willingness. They want
to work with us, They want trade agreements. And by
the way, this is a win win trade relationship. A
lot of the things they sell to us we don't build.
(01:28):
We don't make enough of, like avocados, coffee, things like that,
and they need our corner soybeans, and so we should
we should have. And by the way, they other than
one little area that I criticized them on, they've looked
up to the trade agreements with US very well, so
we should respect that. I think we should work hard
to get a reasonable fair trade deal because it's win
(01:50):
win and our farmers here needed right now. Our farmers
particularly are our grain farmers. Uh, they need help on
the on trade. They gotta we got to move product.
There's not enough of it right now, so prices are
too low and our farmers are suffering for it. So
we need a trade deal with Mexico.
Speaker 1 (02:06):
Well, the President granted what it was in a ninety
day extension.
Speaker 2 (02:10):
Any day extension, Yes, because.
Speaker 1 (02:13):
He's threatening thirty five percent on Mexican tariffs and we
do have a trade and balance with him product wise,
but I understand and and some items we're actually on
top trade wise.
Speaker 2 (02:28):
Yeah, I think we have a pretty good relationship. I don't.
I think it's always opportunities to to you know, review.
You know, the USMC doesn't cover everything, so we have
an opportunity to add things to the USMCA, like automobile
parts and things like that that we could do. But
by at large, what Mexico sells us we can't make
right and what we and we can produce things that
(02:49):
Mexico needs. So it's generally a win win relationship with them.
And they Mexico's Nebraska's number one buyer of agriculture, and
so I think it's important for us that we get
this done. You know, the Nebraska Examiner put out an
article last week saying the Nebraska's economy shrunk by six percent. Yeah,
this past year, mainly in the agriculture area. That is
(03:14):
recession area numbers for US. And it's all about trade
and being able to get customers for corn and soybeans
and wheat sort of them that's what this six percent
is all about. So we got to get more markets.
That's also why E fifteen and biofuels for aviation or
portcassette helps take some of the burden off of our
(03:35):
grain products and finds new markets for them.
Speaker 1 (03:37):
So what's our vegast export out in Nebraska to Mexico?
You know, say that, what's our vegas export to Mexico
from Nebraska corn and soybeans?
Speaker 2 (03:51):
Well, and that's and tell you trade wars are tough
on farmers. They're the ones who pay for it. So
that's why I hope this parafor gets put put behind us.
And I'm at Milton Friedman type conservative. I believe in
free trade. It provides the best product at the best
price in the best manner possible. It should be fair.
(04:13):
I agree with the President on that. But in the
end of Nebraska, we we went in here in a
free trade environment because nobody could grow corn and soybeans,
beef and pork at the price that we do here.
We're we're machines in this in this mass production of
the basic commodities.
Speaker 3 (04:32):
What about Canada?
Speaker 2 (04:35):
Canada is our second biggest market and they're uh. And
again I would say they've lived up to our US
m C A trade deal effect. I don't. I can't
think of one violation they've made. So they've been They've
lived by their agreements and by the way, we when
you put in services, we have a trade surplus with them.
When when you look at just strictly manufacturing, we have
a slight deficit. But when you add everything in like services,
(05:00):
we actually have a trade surplus. And what I'm worried
about is that, you know, we have a lot of
fortune five hundred companies here in Omaha. I get to
meet these people. The Canadian customers are dropping us, but
out of anger right now. That's why I'm hearing from
the business leaders in Omaha. They're losing contracts and contracts
(05:20):
they've had for a long time. Canadians are refusing to renew,
mainly out of anger towards the president and for why
Canada has always been a good neighbor. There's no reason
to detegrate them. That's my concern. I do think they
should spend more on defense. I think we can handle
that with them, But we've created an angry neighbor to
(05:41):
the north. But you'll find a lot of them are
coming to America on vacation right now, and I don't
know for what purpose. I don't see it has served
any purpose.
Speaker 1 (05:51):
Yeah, well that Canada can stick. And I'll tell you something.
The neighbor wise, yes, we have a good relationship. Trade wise,
we don't. They've been unfair and they take all of
the all of the protection the United States and their
proximity of the United States offers, and then try to
abuse us on trade. I'm tired of it. And I
think that's what President Trump was saying.
Speaker 2 (06:12):
Yeah, well, I agree that they don't spend enough on defense.
That's that's an issue that we should put in the forefront.
But Gary, if you're throwing services, we have a trade
surplus with Canada and they come to America a lot
more on tourism. I just I think it's a fairly
equal trade a financial relationship, maybe with America having a
slight advantage, But I don't disagree they should be spending
(06:33):
more of defense.
Speaker 1 (06:34):
And hoping it's a neighborhood.
Speaker 3 (06:36):
The viable topic, well, it's I think it's about fentanyl.
I think the President's pretty upset that they aren't a
lot more determined to close down the border for the
for the drug trade because you know the drug guys
are smart. Okay, you've shut off the southern border, we'll
come through the northern border. But uh, I got to
be honest with you, don I really don't understand why
they're reporting on the US m C A trade agreement
(06:59):
has not been better. The truth of the matter is
very few products get a tariff as a result of USMCA,
either Mexico or Canada. So there's this big flap about
a massive tariff that's going to go on on Canada
and Mexico. No, it's not if you unless you start
untiffing the MCA products because that most of them are
(07:21):
not tariffed.
Speaker 2 (07:22):
Correct, right, it's the areas that aren't covered by USMCA.
We will get the fifteen to thirty five percent tariff
depending whatever the Kurt story is. But it affects things
like automobiles. So Canada and Mexico both helped produce car parts.
Sometimes they put them together here, sometimes they put together
in Mexico or Canada. But any car that we buy here,
(07:43):
it's about fifty to fifty made in America, fifty to
fifty made in Mexico and Canada, and the car parts
will be an area that we'll see tariffs right now,
maybe the President will back off that and that will
show itself from the price of cars. But to your point,
Gary or Jim, is that you're right, the USMC stuff
will not be terri if it's the non ussmciate stuff.
(08:06):
But there's there's a there's an opportunity to expand U
assomciate and get this stuff put in and I think
that would be a good I think that would be great.
Speaker 1 (08:14):
Hey, just a minute left here. What's the reaction been
like among your colleagues since you announced you're not you're
you're you're You're going to retire at the end of
this term.
Speaker 2 (08:22):
Oh. I had a lot of folks say, don you
gotta run? I say, yeah, I could say that every time.
I could do that for twenty years, right, And you know,
I spent four days a week in Washington last It'll
be ten years, and I'd like to be home more.
I'd like to hopefully come home every night, commute back
from Omaha to Surphie County and be part of this community.
(08:44):
I just think ten years is enough.
Speaker 1 (08:45):
So people people tried to talk end to stay on.
Speaker 3 (08:48):
You did your part. Trust me, you did your part.
No guilt, you put it in man. You fought a
ten year war back there.
Speaker 1 (08:55):
That's enough. Don. Thanks good to have you on always,
Congress been Don Bacon