Tariff Update with Jill on Money

CBS News Business Analyst and host of Jill on Money Jill Schlesinger joins us to discuss the latest on tariffs and negotations. 

Episode Transcript

Speaker 1 (00:00):
Man, I thought, just for a minute, we could take
a week and not talk about tariffs. This is West
Michigan's Boarding News. Teem Kelly and Brett Makitas Schmidti back
with us tomorrow. Then we get word that the president's
writing some letters and Jill, whether it works or not,
it's the initial sort of uncertainty that makes the market react.

(00:21):
And just the end of last week, Brett and I
had the conversation that my four oh one k has
actually eclipsed its highest mark and is fully recovered. And
I guess that means that I shouldn't look today.

Speaker 2 (00:33):
I mean, yeah, it's going to be okay, it really is.
So I mean, listen, there are there's this weird deadline
that is on Wednesday. And remember the whole Rose Garden announcement. Hey,
we're going to raise terrorifs by a lot, but way
more than everybody else. Thanks thought right and so right.

(00:55):
What we're looking at Wednesday is that the reimposition of
those tariffs is going to supposedly go back into effect,
but I don't know if they are. So just to
be clear, here's where we are right now. Ten percent
charges on imports from everybody overall thirty percent, China fifty percent,
stealing a lun of twenty five percent on cars. And

(01:16):
but I think we're going to see a deadline extension.
So you heard Scott Bess and he's a Treasury secretary.
Over the weekend, he's like, ah, maybe August first, And
I was like, August first, where'd that come from? Right,
because it's supposed to be Wednesday. And so it looks
like there's going to be some deals. The President is
really trying to get companies countries rather to come to

(01:37):
the table. He threatened the there's a meeting of the
block with the so called the bricks that is Brazil, Russia, India, China,
and you know, he's like, well, you guys, don't come
to the table, I'm going to put an extra ten
percent on you. But I don't know, we don't know
if there's a new deadline. It looks like there's going
to be an extension. Were rolling extension based on the country.

(02:03):
And I guess the most important thing to say is
that still we haven't seen a humongous impact right now
on the economy of these tariffs. We just haven't. I mean,
some strange behavior like companies ordered a lot of stuff
in the first four months of the year. They just
got a lot of stuff going like basically the first
three months, and a little bit of a pause in April,

(02:25):
then more buying in May. So a lot of companies
started to ratchet up there purchasing so that they could
get some inventory that was not subject to the bigger tariffs.
So we're waiting to see if there's going to be
a bigger impact. I know that I have been saying
this for a long time that usually these tariffs do
lead to a tick up in inflation. We haven't seen

(02:47):
that yet because we're just not in the data. A
lot of economists think that's going to happen in the
second half of the year. Have you noticed anything. I
did order a drink recently and I asked the bartender
is this tequila more expensive because of tariffs? He's like, well,
I don't know. We have massive number of cases downstairs
that we ordered before the terriffs.

Speaker 1 (03:03):
I would never have said, Jill Slessinger was a tequila person.
Was this in some sort of frozen drink?

Speaker 2 (03:10):
Not at all. I would never do it. It was a
sipping tequila. It was delicious. I might neat or on
the rocks or rocks and lime. That's it. That's it.

Speaker 1 (03:22):
Something. I think you learn a lot from somebody's cocktail
of choice.

Speaker 2 (03:26):
Really, why what's yours? I do something different in the
summers and then in the winter.

Speaker 1 (03:30):
What about you before?

Speaker 2 (03:32):
Oh yeah, the old days, sorry.

Speaker 1 (03:34):
Before sobriety anything, but oh.

Speaker 2 (03:37):
Yeah, I was a male polish remover while.

Speaker 1 (03:40):
I was still civil, I was a bourbon guy, and
I thought that was a manly I think that was
a conscious, cool choice. But tequila is a taste thing.
I mean, some people like it. It's like scotch. You
like it or you don't.

Speaker 2 (03:54):
I'm a Scotch and bourbon drinker in the winter, so listen,
if you are also an imported kind of beverage drink
or bourbon would be the one to stick to. That's
the other thing that's weird about tariffs is that there
is a short term inflationary hit, but then we change
our preferences. So this really does and I'm sort of

(04:15):
joking about this, but this does happen. It's actually model
that the economists model this. They'll say there is a
short term hit to inflation, but then we readjust for example,
if you were the person who liked tequila. You might
be like, ah, I don't need the tequila anymore. I'll
drink some bourbon. Or I think I'll just drink something
that is domestically produced. And if you're the person who

(04:39):
wants to buy a certain kind of toy for your
kid and it's costing, you know, instead of twenty bucks,
it's twenty five bucks, you might say I'll do that,
or you might say nah, I'll get a different thing,
or I won't get as many gifts. So what we
do as consumers and businesses do this also is there
is a switching of the our preference is that changes

(05:01):
the inflationary picture. That's why the Federal Reserve is actually
watching to see what happens with inflation. They'll they'll probably
see a short term increase, but then it should come down.
And that is really about how we change our habits.
It's kind of fascinating. It does get connected. Here see
how we did that bourbon to overall economy.

Speaker 1 (05:21):
I love it. CBS News Business analyst, host of Jill
on Money Jill on Money dot Com. Thanks for your
time today.

Speaker 2 (05:28):
Thanks boss,