LOU: PRESIDENT TRUMP TODAY
IMPOSING NEW TARIFFS OF $50
BILLION ON CHINESE GOODS.
THE PRESIDENT VOWING TO SLASH
OUR MULTI-BILLION TRADE DEFICIT
WITH CHINA ALL WHILE PROTECTING
THE AMERICAN WORKER.
PRESIDENT TRUMP: THE TRADE WAR
WAS STARTED BY THEM AND THE
UNITED STATES LOST.
THEY HAVE TAKEN SO MUCH.
LAST YEAR $375 BILLION IN TRADE
DEFICIT WITH CHINA.
OVER $800 BILLION OVER A PERIOD
OF YEARS.
EACH YEAR CLOSE TO $800 BILLION
IN LOSSES ON TRADE.
IT'S NOT GOING TO HAPPEN
ANYMORE.
IT'S NOT GOING TO HAPPEN.
LOU: PRESIDENT TRUMP THE ONLY
NATIONAL LEADER ON THE FACE OF
THE GLOBE WHO IS CALLING FOR
BALANCED INTERNATIONAL TRADE.
IT USED TO BE THE STUFF OF IS
IT USED TO BE THE STUFF OF -S
IT USED TO BE THE STUFF OF -- OF
ESOTERIC DISCUSSIONS.
$50 BILLION OF GOODS WILL BE
SUBJECT TO THOSE TARIFFS
EFFECTIVE JULY 6.
AND THE NATIONAL POLITICAL
PRESS.
NOT NECESSARILY THE BUSINESS
PRESS.
BUT MUCH OF THE BUSINESS PRESS.
THEY ARE RINGING THEIR HAND.
THEY ARE WAILING ABOUT A TRADE
WAR.
WE JUST HEARD THE PRESIDENT
SAY -- BY THE WAY, THE FIRST
PERSON TO SAY IT OUT LOUD SOME
TIME AGO.
WE ALREADY LOST THE TRADE WAR.
>> WE ARE REGAINING TERRITORY
VERY RAPIDLY.
THE SAME PEOPLE HAND WRINGING
WHEN WE PUT THE TARIFFS ON
WASHING MACHINES.
THEY HAD THE SAME HAND WRINGING
WHEN WE PUT THE TARIFFS ON SOLAR
PANELS, AND THE SAME HAND
WRINGING WHEN WE PUT IT ON STEEL
AND ALUMINUM.
BUT GUESS WHAT.
FACTORIES ARE GROWING UP IN THE
U.S. AND THE SKY HASN'T FALLEN.
LOU: THE FEDERAL RESERVE IS
PROJECTING ECONOMIC GROWTH OF
4.8% GDP GROWTH FOR THE QUARTER.
>> THE DEMOCRATS WERE SAYING
1.5%, MAYBE 2%.
LOU: THE NEW NORMAL.
>> THE NEW MISERABLE.
LOU: THIS IS EXCITING STUFF.
THE BUSINESS PRESS GETS TO HOLD
FORTH ON TRADE WARS AND
RETALIATION.
WE ARE TALKING ABOUT A MINISCULE
PERCENTAGE OF INTERNATIONAL
TRADE THAT WILL BE INVOLVED IN
THESE TARIFFS THUS FAR.
AND THE TRADE RELATIONSHIPS
AMOUNT TO AN OVERWHELMING
SEGMENT OF GDP FOR MOST OF
COUNTRIES.
>> TOTAL EXPORTS TO CHINA ARE
ONLY $150 BILLION.
THAT'S UNDER 1% OF OUR GDP.
WE ARE GOING TO CHANGE IT.
LOU: WE AREN'T GOING TO CHANGE
IT TO MAKE US LOOK LIKE AN
AGRARIAN NATION THAT LOOKS LIKE
A THIRD WORLD.
WHEN YOU LOOK AT WHAT WE ARE
EXPORTING, YOU JUST WONDER WHO
IS THE ADVANCED NATION HERE?
IS IT THE UNITED STATES OR
CHINA?
>> IT'S HAVE MUCH THE U.S.
OF THE 150 BILLION WE EXPORT TO
CHINA, $20 BILLION IS
AGRICULTURAL PRODUCT.
A LOT OF THAT IS SOY BEANS.
BUT WHAT WE ARE TARGETING HERE
IS HIGH-TECH.
WE HAVE HAD AN INCREASING
DEFICIT IN HIGH-TECH TRADE WITH
CHINA YEAR AFTER YEAR, FOR MANY
YEARS USING MATERIALS STOLEN
FROM THE U.S.
LOU: I CAN'T HELP BUT THINK YOU
HAVE BEEN UP FRONT TALKING TO
THE PRESS, EXPLAINING THE DERRY
FIGURE TARIFFS.
THIS PRESIDENT WITH THE GREAT
ACCESS HE HAS DIRECTLY TO THE
AMERICAN PEOPLE.
I WAS TRYING TO THINK OF ANY
OTHER PRESIDENT WHO COULD HAVE
FUNCTIONED WITH THIS, EXPLAINING
WHAT HAPPENED WITH TRADE.
IT DOES GET COMPLICATED AT THE
MARGIN.
AND AMERICANS ARE NOT USED TO
HAVING TO DEAL WITH IT.
BUT BALANCING TRADE IS
CRITICALLY IMPORTANT.
MOST OF AMERICANS I BELIEVE -- I
DON'T EVEN BELIEVE THE PEOPLE IN
MY CRAFT, JOURNALISM, COMPREHEND
THAT TRADE DEFICITS CUT INTO
ECONOMIC GROWTH.
OUR GDP IS REDUCED AS AT RESULT
OF THOSE TRADE DEFICITS AND THE
NATIONAL SAVINGS RATE IS REDUCED
AS WELL.
GARY COHN WAS QUOTED IN ONE
ELEGANT BUSINESS OUTLET,
BUSINESS NEWS OUTLET SAYING
TRADE DEFICITS DON'T MATTER.
HE'S TALKING THE SAME NONSENSE
OF YESTERYEAR THAT ALOUD US TO
TRADE MINDLESSLY NOT
ACKNOWLEDGING THE TRUTH.
THEY DO MATTER.
>> TRADE DEFICITS ONLY DON'T
MATTER IF YOU DON'T HAVE THEM.
WE HAVE A TRADE DEFICIT AND IT
DOES MATTER.
LOU: WILBUR ROSS IS WORK HARD
FOR THE PRESIDENT AND THE
AMERICAN PEOPLE TO MAKE SURE WE
DO CAPTURE THAT'S BALANCED AND
RECIPROCAL TRADE THE PRESIDENT
IS INSISTING ON, MUCH TO THE
DELIGHT OF THE THERESA MAY,
ANGELA MERKEL AND THE EUROPEAN
UNION.
>> THEY JOINED US.
JAPAN AND THE E.U. JOINED US IN
A COUPLE TRILATERAL STATEMENTS
ON THIS STATEMENT OF
INTELLECTUAL PROPERTY AND
PROTECTING IT.
LOU: THE CHINESE ARE STEALING
$600 BILLION IN INTELLECTUAL
PROPERTY A YEAR IN ADDITION TO
THE $350 BILLION DEFICIT.
AND THE ESPIONAGE WE WON'T GET
INTO.
THE NAFTA DISCUSSIONS AT LEAST A
PAUSE IF NOT AN END.
YOUR SENSE OF THE PROSPECTS?
>> THERE IS A PAUSE BECAUSE YOU
HAVE THE MEXICAN ELECTIONS
COMING UP AROUND THE 8th OF
JULY.
IT'S TOO CLOSE TO THAT ELECTION.
WHETHER HE WINS OR DOESN'T, THEY
STILL NEED THE U.S.
THEY NEED TO MAKE A DEAL WITH
US.
LOU: YOU MEAN THEY SHOULD BE
GROWN-UPS AND TAKE
RESPONSIBILITY FOR THEIR BORDERS
AND BALANCED TRADE?
>> IF THEY NEED A LITTLE
ENCOURAGEMENT, THE PRESIDENT IS
GOING TO GIVE IT TO THEM.
LOU: I NOTICED HIM CHEERING THEM
ON, AS WELL AS HIS FRIEND JUSTIN
TRUDEAU.
IT SEEMS THE MESSAGE IS BEING
RECEIVED.