LIZ: WE ARE JUST GETTING THIS
BREAKING NEWS IN FROM THE U.S.
CHAMBER OF COMMERCE.
THEY HAVE JUST RELEASED A
STATEMENT THAT INCLUDES THAT
PUTS A NUMBER ON HOW MANY JOBS
WILL BE THREATENED WHEN THOSE
TARIFFS GO INTO EFFECT TONIGHT.
ACCORDING TO THE TOP OFFICIAL,
THAT'S TOM DONAHUE, HE'S THE
HEAD OF THE CHAMBER OF COMMERCE
REPRESENTING THOUSANDS OF U.S.
BUSINESSES, HE SAYS THESE
TRUMP TRADE POLICIES WILL HAM
STRING THE U.S.' ROBUST ECONOMIC
GROWTH AND WILL THREATEN HERE IT
IS AS MANY AS 2.6 MILLION U.S.
JOBS.
LET US BRING IN THE FORMER U.S.
AMBASSADOR TO GERMANY JOHN
EMERSON BECAUSE THE EUROPEAN
UNION IS ALREADY SAYING DO YOU
KNOW WHAT?
WE WILL NOT LET THE UNJUST IT
FRIDAYABLE AND UNJUSTIFIED U.S.
MEASURES GO UNANSWERED.
THEY'VE ALREADY PUT A NUMBER ON
THERE'S $7.5 BILLION WORTH OF
TARIFFS WILL BE SLAPPED ON U.S..
CANADA IS ALSO ALREADY PUTTING
IN LEVIES BECAUSE THE UNITED
STATES PUT IN LEVIES ON OUR TOP
ALLIES.
WHAT'S YOUR FIRST REACTION TO
ALL OF THIS RIGHT NOW?
>> WELL, I THINK IT'S GOING TO
BE A LONG AND CHALLENGING
ENVIRONMENT FOR OUR TRADE
NEGOTIATORS.
I GUESS THREE THOUGHTS.
NUMBER ONE, THE STEEL AND
ALUMINUM TARIFFS WERE
ESSENTIALLY IN POSED BECAUSE OF
CONCERNS WE'VE HAD AS A RESULT
OF CHINA'S DUMPING ON STEEL ON
GLOBAL MARKETS THERE BY
DEPRESSING PRICES MAKING IT HARD
FOR HIGH-WAGE ECONOMIES LIKE
OURS TO COMPETE.
THIS DOESN'T IMPACT CHINA AT ALL
WE GET LESS THAN 2% OF OUR STEEL
AND ALUMINUM FROM CHINA AND
PERHAPS WORKING WITH OUR ALLIES
TO PUSH HARD AGAINST CHINA MIGHT
BE A BETTER WAY TO ADDRESS THAT.
SECONDLY, THE INCLUSION OF
MEXICO AND CANADA WHO WERE
EXEMPTED SO LONG AS THE NAFTA
NEGOTIATIONS WERE ONGOING IS
CERTAINLY A SIGNAL THAT THE
ADMINISTRATION DOESN'T THINK
THAT NAFTA RENEGOTIATION IS
GOING TO BE CONCLUDED ANY TIME
SOON AND THIRD, YOU HAVE TO ALSO
CONSIDER NOT JUST THE EUROPEAN
REACTION TO THIS, BUT THE FACT
THAT THE ADMINISTRATION IS ALSO
THREATENED TO IMPOSE SECONDARY
SANCTIONS ON COMPANIES THAT
CONTINUE TO DO BUSINESS WITH
IRAN.
LIZ: RIGHT.
>> SO THE EUROPEAN UNION IS
ALSO DEALING WITH THAT AS WELL,
SO IT'S A VERY COMPLICATED THREE
DIMENSIONAL CHESS BOARD RIGHT
NOW ON TRADE.
LIZ: WOULD YOU CALL IT A WAR?
>> NO, I WOULD NOT, AND THE
REASON IS IF YOU LOOK AT THE
VAST AMOUNT OF TRADE THAT GOES
ON BETWEEN THE UNITED STATES AND
THE EU, THAT GOES ON IN THE
NAFTA ZONE, AND LET'S NOT FORGET
ABOUT THE 25 BILLION OR
$50 BILLION OF TARIFFS THAT HAVE
BEEN ITEMIZED FOR CHINA THE FACT
OF THE MATTER IS THAT'S STILL
MAYBE ADDS UP TO LESS THAN 15%
OF THE OVERALL TRADING
RELATIONSHIP.
IT COULD DEVELOP INTO A WAR BUT
I THINK AT THIS POINT, YOU'D
HAVE TO SAY THAT IT'S A PRETTY
HEALTHY SKIRMISH MAYBE SLIGHTLY
WORSE THAN THAT.
LIZ: OKAY, I DON'T KNOW, BECAUSE
YOU'VE GOT A LOT OF PEOPLE VERY
ANXIOUS.
THE MARKET CERTAINLY DOESN'T
LIKE IT THE DOW IS DOWN 207
POINTS.
WITH THE CHAMBER OF COMMERCE
PUTTING THIS FINER POINT OF
2.6 MILLION JOBS, IT SAYS ARE
NOW THREATENED BY THESE TARIFFS,
DO YOU BELIEVE THAT?
>> WELL, I HAVE NO IDEA HOW YOU
COME UP WITH THESE KINDS OF
NUMBERS BUT HERE IS THE REALITY.
LIZ: MAYBE FROM THE GEORGE BUSH
TARIFFS THAT WERE KICKED IN BACK
IN THE EARLY 2000 WHERE A LOT OF
JOBS WERE LOST AND THEY HAD
REVERSE THEM RATHER QUICKLY.
>> NO QUESTION ABOUT THAT AND
THE REALITY IS THAT WE HAVE
BENEFITED ENORMOUSLY FROM THE
RULES-BASED TRADING ENVIRONMENT
THAT WAS REALLY HAS BEEN PUT IN
PLACE OVER THE COURSE OF THE
LAST 70 YEARS SINCE THE END OF
THE SECOND WORLD WAR.
WE'VE BENEFITED ENORMOUSLY.
NOW WE MAY HAVE A TRADE DEFICIT
ON CERTAIN GOODS AND SERVICES OR
MOSTLY ON GOODS.
ON SERVICES AND SOME OF THESE
TRADING RELATIONSHIPS WE HAVE,
WE'RE DOING PRETTY WELL AND WE
HAVE AN INVESTMENT SURPLUS WHEN
IT COMES TO BILLIONS OF DOLLARS
THAT ARE INVESTED BY EUROPEAN
COMPANIES AND IN FACT BY ASIAN
COMPANIES, IN THE UNITED STATES.
BMW, FOR INSTANCE, NOW MAKES
MORE CARS --
LIZ: IN THE U.S..
>> IN SOUTH CAROLINA THAN IT
DOES IN BAVARIA.
LIZ: AND I HAVE BEEN, YOU HAVING
BEEN THE AMBASSADOR TO GERMANY
I'VE BEEN TO VANCE, ALABAMA,
WHERE MERCEDES BENZ YEARS AGO
OPENED THE SUV PLANT AND HAS
EMPLOYED A LOT OF PEOPLE, SO WHY
DO YOU THINK THAT WE'RE GOING SO
HARD AND TOUGH AGAINST OUR
ALLIES WHO ACTUALLY EMPLOY
UNITED STATES WORKERS HERE IN
THIS COUNTRY?
>> WELL I THINK IF YOU WERE TO
ASK THE PRESIDENT WHY HE GOT
ELECTED HE'D TELL YOU TWO THINGS
THE WALL, WHICH IS EFFECTIVELY A
METAPHOR FOR BEING TOUGH ON
IMMIGRATION AND HE WOULD TELL
YOU HIS POSITION ON TRADE WHICH
BY THE WAY WASN'T THAT DIFFERENT
FROM BERNIE SANDERS' POSITION ON
TRADE AND SO I THINK HE FEELS
THIS IS A CORE ISSUE FOR HIM
POLITICALLY AND HE NEEDS TO PUSH
AND PUSH HARD AND THAT'S PART OF
WHAT'S HAPPENING, BUT I THINK
THE DANGER OF COURSE IS ALL
THESE UNINTENDED CONSEQUENCES OF
THAT AND WE MAY WELL SEE THAT AS
REFLECTED IN THE CHAMBER OF
COMMERCE REPORT.
LIZ: WELL, WHICH IS JUST OUT AND
FOLKS WE WERE THE FIRST TO BRING
IT TO YOU SO WE'RE KEEPING THIS
VERY CLOSE EYE ON WHAT'S GOING
ON WITH ALL OF THIS AND HOW THE
MARKETS ARE REACTING AND WE
STARTED TO GO BACK DOWN A BIT
LOWER THAN BEFORE THAT HEADLINE