Episode Transcript
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Speaker 1 (00:01):
You're listening to Bill Handle on demand from KFI AM
six forty.
Speaker 2 (00:06):
KFI AM six forty Bill Handle. Here it is a
Monday morning.
Speaker 3 (00:11):
February third, National Carrot Cake Day.
Speaker 2 (00:14):
Yep. Only because the carrot cake is so good from
Stonefire Grill they brought it.
Speaker 3 (00:19):
And all right, enough of that, let's do something that's
not quite as important as today, but still fairly important,
and that is the tariffs that President Trump has put
into place.
Speaker 2 (00:32):
They start tomorrow. And if you remember, of course you
do that.
Speaker 3 (00:37):
Part of the campaign that Donald Trump was running was
the promise that prices would be lowered immediately, Costs would
be lowered, inflation would be gone. Well, he has admitted that,
and this is just a fact, not his issue, but
he's the one that kicked this in.
Speaker 2 (00:58):
Tariffs cause prices to rise. It's just that simple.
Speaker 3 (01:03):
The more a terriff is in place, the more expensive
products are. And that's because so much trade is going on. So,
for example, the car companies, there isn't a car company,
a car manufacturer in the United States that manufact it
doesn't get parts from Canada or Mexico, and all of
a sudden, those parts are going up twenty five percent
which means guess what. Cars are going up, food is
(01:25):
going up, phones are going up because they're all made
in China. And Chinese products are going up because China
has just been hit with a ten percent tariff twenty
five percent tariff against Canada and Mexico, and prices are
it's just that simple tariffs cause prices to go up.
Now the President is doing this well for the fentanyl
(01:46):
that's coming across Mexico and the illegal immigration.
Speaker 2 (01:49):
He says that about Canada too.
Speaker 3 (01:50):
How much illegal immigration is coming from Canada, Not very much,
And so it's going to be financial.
Speaker 2 (01:59):
It's a financial hit, and it's gonna hurt American workers.
Speaker 3 (02:01):
It's gonna hurt well, it's gonna hurt certainly American consumers
long term. The policy is, if it's really expensive to
buy foreign products, that means American manufacturers and workers have
to make up for it because we're not gonna stop consuming.
Speaker 2 (02:20):
And if all things being equal, if the.
Speaker 3 (02:22):
Price is about the same, if it costs twenty five
percent less to buy from Canada and all of a
sudden there's a twenty five percent tariff, then it's gonna
be the same price, right, And if America charges the
same thing American manufacturer.
Speaker 2 (02:35):
We're gonna go to American workers.
Speaker 3 (02:37):
Of course, we are for a whole lot of reasons,
because bringing in from overseas, from China, bringing in from Mexico,
there are all kinds of transport issues, There are all
kinds of.
Speaker 2 (02:50):
Regulations that have to be met America. It's easy.
Speaker 3 (02:53):
You order from Des Moines and you're gonna get a
product three days later and you're not gonna pay tariffs
or any of that.
Speaker 2 (02:59):
It's easy PC stuff.
Speaker 3 (03:01):
So that is the philosophy that tariffs actually long term
are good for the American worker. Yes, no, don't know yet,
but I'll tell you prices are going to go up.
Speaker 2 (03:13):
That is a given.
Speaker 3 (03:15):
And the President has admitted, Okay, it's gonna hurt. It's
going to hurt temporarily. Will this is a quote and
this is what he posted. Will there be some pain, Yes,
maybe maybe not. They'll be pain, believe me, But we
will make America great again, and it will all be
(03:35):
worth the price that must be paid. And he said, Americans,
we will understand that it is important for us to
pay more money for goods and services, goods, particularly.
Speaker 2 (03:48):
To make it long term better for America.
Speaker 3 (03:52):
You know what, there's an argument there, and there is
a philosophy there, and some people agree, some people disagree. However,
when he said prices are going to go down immediately
and costs will be half of what they are now
by the anniversary of his first year January twentieth, twenty
twenty six, well we're going to start the administration with
(04:15):
prices going up.
Speaker 2 (04:17):
I mean, that's the cost of tariffs.
Speaker 3 (04:19):
And if there's going to be a trade war, and Canada,
Mexico already and China already said it's going to be retaliatory.
You hit us with twenty five percent taxes, We're gonna
hit you at tariffs.
Speaker 2 (04:30):
We're gonna hit you with twenty five percent tariffs.
Speaker 3 (04:33):
So all of a sudden, it becomes super expensive to
buy products that are manufactured overseas, which is what we
buy overseas products by the hundreds of billions of dollars,
where trillion dollars. Maybe because it's cheaper. It's all about money.
It's about quality too, but it's mainly about money. We vote,
(04:56):
we go through life based on our our wallets. That's
the reality. We're a consumer nation. And so prices are
going to go up. There's no way around it, and
we have to understand. But wait a minute, you said.
Speaker 2 (05:12):
Prices are going to go down.
Speaker 3 (05:14):
Well, prices are going to go up, but you understand
that prices are going to go up. That's the problem
I have. I would have been far far It would
have been far better, in my opinion, had Candidate Trump said,
here's what I want to do.
Speaker 2 (05:28):
I want to raise prices.
Speaker 3 (05:29):
Or I want to invoke or kick in tariffs for
the long term of American workers, because tomorrow prices go up,
the tariffs kick in tomorrow.
Speaker 2 (05:42):
How long do you think it takes to build a
factory all of a.
Speaker 3 (05:46):
Sudden, chips have gone up twenty five percent or ten
percent from China, Okay, So that means it's going to
be feasible for us to build a chip factory because
we're now going to compete and all things being equal,
we're going to buy chips here.
Speaker 2 (06:03):
How long does it take to build a factory? Two years?
Three years? And can you do it without subsidies from
the government.
Speaker 3 (06:11):
Probably not, because it's so damn expensive and it's a
national security issue. So teriffts may very well be good
and in many cases I'm okay, with teriffs because they
do in the long term.
Speaker 2 (06:22):
Exactly what the President I think is pushing for.
Speaker 3 (06:25):
A lot of people believe that, but come on, really,
prices are going down while they're going up. Inflation is
out of control. It's a two percent I mean, what
do you do that? Okay, So we talk about it
becomes more expensive to buy products when the president kicks
(06:48):
in a tariff against the country. So a product from
Canada that costs one hundred dollars a manufacturer pays and
not gonna be one hundred and twenty five dollars, So
the manufacturer's paying a lot more money.
Speaker 2 (06:58):
In the end, we do because it's the cost is
moved on to us. Of course.
Speaker 3 (07:04):
Now here is something you may not realize is that
every tax on imports is also a tax on exports.
It's a tax on us. How does that work? All right,
let me give you an example. The most popular beer
in America right now is Modelo especial brood in Mexico.
(07:27):
All Right, you put a twenty five percent tariff on
Modello and slay sales are going to slide. Of course
they are, because it's that much more expensive now Modello
imports American barley from US.
Speaker 2 (07:40):
We export American barley.
Speaker 3 (07:42):
Because and they buy virtually all of their barley from
US for brewing.
Speaker 2 (07:49):
And so all of a sudden, we're buying less.
Speaker 3 (07:55):
They're buying they they're selling less because they can only
sell at a higher price because of the tariffs. And
guess what both get screwed, Well, not both of them,
We get screwed because all of a sudden we're in
a worse position. You know, all of the manufacturing or
(08:16):
the processing of barley, we're selling less, and it's costing
us more for theirs, all of it. It's all connected
by the way. Barley growers don't care about how much
they sell, They prepare about what price they sell it at.
So a tariff raises prices of both every imported good
(08:38):
and every good that goes out.
Speaker 2 (08:40):
And competes with imporse.
Speaker 3 (08:42):
So if Modelo is more expensive, American beer also becomes
more expensive. The tariff on Modello allows American beer to
increase market share because all of a sudden, people aren't
buying modello and we're selling more and the competition is less,
which means the prices.
Speaker 2 (09:02):
Can go up. Why because it's supply and demand.
Speaker 3 (09:05):
If Americas rink a pile of beer, and now they
don't buy Medello and they buy American beer. All of
a sudden, American beer is more deer, and the prices
go up supply and demand, so everything gets more expensive
for everybody, and national incomes lower and prices just are
(09:28):
more expensive. Trade wars, that's what this is about. And
let me give you an example real quickly. It's not direct,
but it's indirect. The largest glassmaker in North America is
a Mexican company and it operates plants in the US
and Canada, but the center is in Mexico. Now, most
of us don't buy big sheets of industrial glass.
Speaker 2 (09:50):
You know that's way out there.
Speaker 3 (09:52):
But do you care about the rent of a brand
new apartment, that department or that apartment. Well, the price
to p on the cost of construction, how much it
cost to build the apartment, which depends on the price
of window systems that the developer pays.
Speaker 2 (10:10):
That depends on the price of glass.
Speaker 3 (10:12):
And by the way, we're talking about lumber which comes
in from Canada too, I mean.
Speaker 2 (10:17):
Across the board.
Speaker 3 (10:18):
By the way, all of that Trump just raised twenty
five percent put tariff on aluminum. The cost of manufacturing
airplanes and cars go up, and so guess what happens.
The cost of airplanes go up manufacturing. Therefore the airlines
have to make that up. And you wonder what's going on. Now,
here's the weird one. The Trump administration renegotiated NAFTA North
(10:43):
America Free Trade Agreement.
Speaker 2 (10:44):
Which got rid of tariffs, and his new deal.
Speaker 3 (10:50):
In the US Mexico Canada trade deal quote was based
on the principle of fairness and reciprocity, which.
Speaker 2 (10:56):
By the way, he can't do that. It's illegal under
the tree D rules. But the US stopped obeying treaty
rules a while back.
Speaker 3 (11:05):
Twenty eighteen, the Trump administration imposes tariffs on steel and aluminum,
and so the affected countries take their case to the
World Trade Organization. Four years later, December of twenty twenty two,
the World Trade Issue, the World Trade Organization issued its judgment.
The US lost at every single point. So what did
(11:27):
the Biden administration say, We're going.
Speaker 2 (11:29):
To ignore it?
Speaker 3 (11:30):
The Biden administration said, we're ignoring it. We don't care.
Trump has pulled us out of the WTO. Biden just
ignored the WTO. They're both on the same page. And
here's how they did it. In twenty seventeen, the Trump
administration blocked new appointments to the WTO's Appellate Court, effectively
(11:54):
the Supreme.
Speaker 2 (11:54):
Court of World Trade.
Speaker 3 (11:56):
The Biden administration continued the embargo. Today all seven seats
on the panel are empty. And here's the clever part
is that right now all seven seats of the appellate
Court are non existent. They're empty, and they're the ones
that make the decision. If there is no court, there
is no decision.
Speaker 2 (12:15):
And that's both Biden and Trump.
Speaker 3 (12:19):
The point is free trade agreements, which it helps everybody
the Biden administration and the Trump administration shut down. But
here's the problem with free trade agreements. Right, no tariffs,
so China subsidizes the manufacturing of steel, and no tariffs,
so it is far cheaper to buy steel from China
(12:42):
than it is to manufacture here under any free trade agreements.
Speaker 2 (12:47):
Because they're not fair. And Trump is right, they're not fair.
Speaker 3 (12:51):
If everything was equal, if China didn't subsidize, if China
didn't pay forty cents an hour to its people, didn't
have its own version of OSHA, it would be fair.
Speaker 2 (13:03):
The reality is it's not, and so what do you do?
Speaker 3 (13:08):
You let it happen and American steel workers are put
out of work because there's no steel being manufactured because
all being pot in China.
Speaker 2 (13:16):
Or do you put teriffs on there?
Speaker 3 (13:18):
So American steel workers do compete, but everything goes up
in price. It's really complicated, and I want to share
with you what's happening to me, My dear one of
my best friends, Savil, and I own a business together
and it's cookware that we import from China. And I
(13:39):
don't want to pitch the company. It's Lake Industries dot com.
Lake Industries dot com. You want to look at Platinum cookware. Okay,
enough of that.
Speaker 2 (13:51):
It's good stuff, Savile, thanks for joining us.
Speaker 4 (13:54):
Good morning, Good morning Bill, How are you?
Speaker 2 (13:57):
I'm good? All right? Get him up, Actually he wakes
up really early.
Speaker 3 (14:01):
But I wanted to talk about our company and we
import from China. Now, huge companies have very deep pockets
and they can switch over companies like ours.
Speaker 2 (14:12):
Small companies.
Speaker 3 (14:14):
You know, we have a couple of dozen people that
work for us, and our business is coming in from China.
Speaker 2 (14:19):
What is going on? Since it's just hit us, what
do you do?
Speaker 5 (14:23):
Well?
Speaker 4 (14:24):
It was announced on Friday, as you know. And the
first thing we did is we sent a letter out
to all of our clients and dealers and said, hey,
this is probably going to happen on Monday or Tuesday,
and we are going to impose a temporary tariff search
arge on all of your invoices beginning Monday or Tuesday
of five percent. We did five percent for a couple
(14:46):
of reasons. Number one, we wanted to kind of help
our dealers feel the pain and what are they going
to do? They just going to pass it on to
the end consumer. And a lot of.
Speaker 5 (14:57):
The dealers already wrote back to us.
Speaker 4 (14:59):
Bill and said that's fine, We're going to pass the
five percent onto the dealers. And we fully understand the
situation you in. We've been watching the news.
Speaker 5 (15:08):
We've expected this. Probably the toughest.
Speaker 4 (15:10):
Decision for us was when to impose the tariffs, because
obviously we have goods already in the warehouse that don't
have tariffs. So do you wait three months and say
let's get rid of those goods and then impose tariffs.
And we spoke to a couple of our key dealers
and said no, because then you'd have to delay removing
the temporary tariffs surcharge three months down the roads.
Speaker 5 (15:33):
So they said, we're okay with this.
Speaker 4 (15:36):
The minute the president or the government announces the five
percent tariff.
Speaker 2 (15:40):
Let's go.
Speaker 4 (15:41):
Then the minute they stop, let's stop.
Speaker 5 (15:44):
Then the rights of fact, we had a plan for.
Speaker 4 (15:46):
Monday, and we now realize the executive order is only
going to be signed.
Speaker 5 (15:50):
Today, so we've delayed it the day until Tuesday.
Speaker 3 (15:53):
Okay, So let's talk about all of a sudden, And
it was ten percent, which we're sucking up half of that,
So it's five percent right off the bottom line for US.
Tariffs are going to kick in. It's going to be
a trade war. Trump has said the tariffs are going
to go up, which I believe, which we believe completely.
Speaker 2 (16:11):
So what do you do? So do we leave China?
Speaker 3 (16:15):
Are we now looking or are you now looking because
you obviously we're in the business, But are we looking
at Vietnam, looking at the Philippines where there are no tariffs?
Speaker 2 (16:25):
Yep?
Speaker 4 (16:25):
So we actually the funny thing is we were looking
at Mexico and that just didn't pan out, and thank
god it didn't, because that's twenty five percentence, you know.
We then looked at Vietnam and our friends.
Speaker 5 (16:37):
Over there said to us, we're a little.
Speaker 4 (16:39):
Concerned because the balance of trade between Vietnam and China,
excuse me, between Vietnam and the USA is shrinking every day.
So at some point in time they're going to be
next on the hit list for the USA. So we've
come to the conclusion the best countries for us right now,
the second best countries Thailand, and our best option right
(17:00):
now is Cambodia, of all places. So we have moved
some tooling from China to Cambodia to test a couple
of units out to make sure the quality is the same.
And we believe the balance of trade with Cambodia is
just fine, and we want to see tariffs there for
maybe five ten years.
Speaker 3 (17:19):
Yeah, and keep in mind that, as I said earlier,
the prices are going to go up, and one of
the reasons, and it's not the fentanyl for Mexico, and
it's not the immigration from Canada.
Speaker 2 (17:29):
I mean, the real issue is financial and.
Speaker 3 (17:32):
The more we buy from a country, the more imbalance
there is, and the more Trump wants to put tariffs
until it reached the point where there's zero now. But
the disparity grows and grows and grows, and we buy
too much from them, and boom, it's tariff time.
Speaker 2 (17:51):
And we're looking at Cambodia now.
Speaker 3 (17:53):
Who would have ever thought Cambodia where we'd be manufacturing
our cookwar at Lake Industries dot com. That's Lake Industries
dot com. Got I'm such a such.
Speaker 4 (18:08):
A fantastic This is the greatest segment of the whole morning.
Speaker 2 (18:11):
Thank you for this.
Speaker 4 (18:14):
We never thought. We never thought Cambodia for a minute.
As a matter of fact, the bigger companies who anticipated
this long before us because of the deeper pockets that
you mentioned, they've been at Vietnam for years right now.
Hence the balance of trade. I mean, the thing we need,
and I know you've mentioned this morning, is we.
Speaker 5 (18:30):
Need stable trade policies. That's what we need.
Speaker 4 (18:33):
When I was fortunate enough to emigrate to this country,
you know, Ronald Reagan was in power, and he was
the best at it. And if you think about it,
the American manufacturers that survived made.
Speaker 5 (18:45):
The best products in the world.
Speaker 4 (18:47):
When I first emigrated, the American cars were lousy, and
then we had this flood of Japanese cause Korean cars,
and guess what the American cars caught up, and arguably
they're as good, if not better. So free trade in
a lot of ways is a good thing. I do
understand what the Trump administration's doing because this is going
(19:09):
to have an impact positively immediately, you know, a positive
impact immediately. Long term, I'm not so sure.
Speaker 3 (19:16):
Now I'm going to argue the other side that short
term it's going to have a negative impact because prices
are going up tomorrow. And like many companies, since we
manufacture or we buy from manufacture overseas, switching to a
different company means the dies that stamp out our cookwar
(19:40):
the companies that manufacture this. How long does it take
to switch from Chinese factories and you find someone in
Cambodia that's willing to do this, what is that timeline?
Speaker 4 (19:54):
That is a long one. So it's not as long
as it takes to both factories in America, of course,
which is anyway from two years to five years in
our case to get full production going, it's at least
a year to get it going. We're testing it now,
but it's at least a year.
Speaker 2 (20:10):
Yeah, And that's the point, that's the point I am making.
Speaker 3 (20:13):
Where we want American workers, we want factories here the
problem is it takes a long.
Speaker 2 (20:19):
Time to bring the jobs over. All, right, Savil, thank
you and you're welcome. Yeah, I appreciate that. Do I
pitch one more time our company?
Speaker 1 (20:27):
Na?
Speaker 4 (20:29):
Okay, sure please, I'm on my knees.
Speaker 3 (20:31):
Okay, Lake Industries dot com. Lake Industries dot com the
best cook wear in the world. All right, thanks Savil.
Speaker 2 (20:38):
Thanks, But by the way.
Speaker 3 (20:40):
Am I in trouble with I don't think so, because
as long as I disclose that I am a principal,
I can pitch the product.
Speaker 2 (20:48):
Right.
Speaker 1 (20:49):
Why are you looking at me?
Speaker 2 (20:51):
Because you know the rule used to be in management?
You know the rules more.
Speaker 1 (20:54):
You know I've forgotten everything.
Speaker 2 (20:57):
Okay, fair enough, it's.
Speaker 1 (20:59):
The first time on his knees for you, right, Bob.
Speaker 2 (21:01):
Oh Well said, give me a break. Now, it's a
lot of fun.
Speaker 3 (21:05):
We spend a lot of time talking about the cost
of manufacturing, especially now that terrff world is coming in.
Speaker 2 (21:12):
All right, did I just.
Speaker 3 (21:13):
Hear amy I was putting together the next segment that
the tariff was supposed to kicking tomorrow has now been
delayed thirty days.
Speaker 6 (21:21):
Yes, apparently, Claudia Scheinbaum from Mexico and President Trump had
a phone call. And after the phone call, they said, okay,
we're going to put these on hold for one month.
And Mexico is sending ten thousand troops to the border.
Speaker 3 (21:37):
Now the tariff is it just on Mexico? Do the
tariffs on Canada and China remaining place?
Speaker 6 (21:45):
As far as we know, yes, this is this information
is just getting into the KFI newsroom. Trump is expected
to talk to Canada's Prime minister today at three, which
I believe is Eastern time.
Speaker 3 (21:58):
Okay, case in point. This is Donald Trump at his best.
As he says, he is going and I'm going to
do it right now because I'm not happy with the border.
Speaker 2 (22:10):
And when you straighten it out, I will go back
on the tariffs. Boom.
Speaker 3 (22:16):
She's sending ten thousand troops to the border to stop
illegal immigration.
Speaker 2 (22:22):
Is exactly what Trump does.
Speaker 1 (22:26):
And yeap with Columbia as well.
Speaker 2 (22:28):
Yep, with Columbia.
Speaker 3 (22:29):
He succeeds beyond success when it comes to this.
Speaker 2 (22:33):
This is the art of the deal.
Speaker 3 (22:35):
This is a businessman which underlying a lot of his
issues with the border. Frankly, business doesn't really care about
the border. You're talking about big business. They couldn't care less.
The reality is is illegal. Migrants do not take American jobs.
It doesn't really do anything for the economy. Tariffs do
(22:58):
big time. And this is a business issue, and this
is where the business world is looking at Trump and
put into place a business leader.
Speaker 2 (23:10):
I heard a.
Speaker 3 (23:11):
Lot about that. I mean the popular though. The rest
of US, Yeah, we care about immigration. It really doesn't
affect us. It really doesn't to make big picture, tariffs
do as I said that. So Trump has said, tariffs
start tomorrow unless you straighten out the border, and I mean,
you do it now.
Speaker 2 (23:28):
Ten thousand troops.
Speaker 3 (23:30):
Are coming from Mexico to be along the US Mexican border.
Absolutely what he promised to do. And it's working. It
is working.
Speaker 1 (23:41):
You have a little just a tiny bit of crow
in your teeth.
Speaker 3 (23:45):
No, no, no, not at all, not at all. I
said that this is a man whose agenda is not
hidden at all.
Speaker 2 (23:52):
And I said, this is a man who what he
does is go way beyond.
Speaker 3 (23:58):
He says things that appear to be kind of crazy,
and what he does is and he read his book
It's a negotiating ploy. And everybody said, no, it's not
a negotiating ploy. It was a negotiating ploy. It is
a negotiating ploy and it has worked.
Speaker 2 (24:15):
It has worked.
Speaker 1 (24:16):
How did Americans respond to JFK and the Bay of Pigs.
Speaker 3 (24:19):
They Americans thought, well, the Bay of Pigs, the whole
situation with Bay of.
Speaker 2 (24:25):
Pigs, and he Kennedy inherited. The CIA lied to him.
Speaker 1 (24:29):
They think he was crazy when he stood fast.
Speaker 3 (24:35):
No, because JFK didn't stand fast. It failed miserably. The
Bay of Pigs invasion, the quote the the let's how
do I put this? The anti crat Castro Cubans actually
put it together. It was the CIA that came out
and Kennedy said, this is my fault. I let it happen.
(24:58):
He sucked it up. He said, yeah, it.
Speaker 1 (25:05):
Could have gone south. Oh it did go south, and
it just I'm talking nuclear south.
Speaker 2 (25:11):
That was with Russia, that is Russia. And there Kennedy
stood fast. There he stood fast.
Speaker 3 (25:18):
And the reason that Russia was moving nuclear weapons into
Cuba is because Kennedy was so inexperienced and got killed
in the Bay of Pigs. And then Kennedy stood up
and stood fast. Uh so you got it sort of,
But it's as always more complicated than that.
Speaker 2 (25:36):
By the way, just a quick one about Kennedy. Now
that you bring it up, do.
Speaker 3 (25:39):
You know he was as cold war as cold a
cold warrior as it gets. He was the most anti
Russia president that we've ever had. He he what he
cared about was stopping Russia.
Speaker 2 (25:55):
That was it a very interesting story.
Speaker 3 (25:57):
I'll have to do that when we talk about the
birth of JFK or when he was assassinated, because there's
a whole story there.
Speaker 1 (26:05):
That kind of stuff.
Speaker 2 (26:06):
I love when you do that.
Speaker 1 (26:07):
Oh yeah, that's my favorite Handle stuff is when you
go deep dives down history.
Speaker 2 (26:11):
Yeah, I thank you for that.
Speaker 3 (26:13):
Okay, coming up, the World Cup and the LA Olympics
could lose millions of dollars and I'll explain why, and
it's nothing that you what you're thinking about now?
Speaker 2 (26:25):
And then another personal story I want to share with you.
KF I am sixty. You've been listening to the Bill
Handle Show.
Speaker 3 (26:33):
Catch my show Monday through Friday, six am to nine am,
and anytime on demand on the iHeartRadio app.