WITH NEW TOLLS, NEW TAXES, EVEN
SELL OFF ASSETS TO MEET THE
OBLIGATION.
DAVID?
DAVID: NOTHING IS FREE AS I SAID
BEFORE.
MIKE, THANK YOU VERY MUCH.
>>> PRESIDENT TRUMP PIVOTING IN
THE SPEECH FROM INFRASTRUCTURE
TO TOUT THE NEW U.S. TRADE DEAL
WITH SOUTH KOREA.
TAKE A LISTEN.
>> WE SECURED A WONDERFUL DEAL
WITH SOUTH KOREA.
WE WERE IN A DEAL THAT WAS A
HORROR SHOW.
IT WAS GOING TO PRODUCE 200,000
JOBS AND IT DID, FOR THEM!
WE HAVE REDONE IT.
THAT WILL LEVEL THE PLAYING
FIELD ON STEEL AND CARS AND
TRUCKS COMING INTO THIS COUNTRY.
DAVID: HERE NOW IS PETER
NAVARRO, WHITE HOUSE.
PETER, CONGRATULATIONS ON THE
WHITE HOUSE TRADE DEAL WITH
SOUTH KOREA.
WHEN WILL IT BE COMPLETELY
FINISHED?
>> AMBASSADOR LIGHTHIZER, AND
WILL WORK ON IT IN WEEKS OR
MONTHS.
WE ALWAYS TRY TO MOVE THINGS IN
TRUMP TIME.
WHY WE WANTED TO GET THE
INFRASTRUCTURE THING SOLVED, BUT
YEAH, I MEAN PRESIDENT TRUMP
SAID THAT 2012 KOREA DEAL WAS
SUPPOSED TO CREATE 200,000 JOBS
AND IT DID FOR THEM.
DAVID: RIGHT, EXACTLY.
WE'RE GLAD --
>> HE HIT THAT ON THE HEAD.
DAVID: WE'RE GLAD THE NUMBERS
WERE TURNED AROUND BUT I'M
CURIOUS.
HOW MUCH DID THREAT OF STEEL
TARIFFS HELP YOU NEGOTIATING A
NEW DEAL?
>> I DON'T THINK THAT WAS A BIG
FACTOR TO BE HONEST.
THE PRESIDENT WAS TALKING ABOUT
GETTING RID OF THAT DEAL BACK IN
JUNE OF 2016 ON THE CAMPAIGN
TRAIL AND FOR OVER SIX MONTHS
NOW WE'VE BEEN IN NEGOTIATIONS,
MOVING THAT ALONG.
I THINK THAT IT'S HISTORIC
MOMENT FOR AMERICA.
THIS IS ONE OF THE FIRST TRADE
DEALS EVER RENEGOTIATED IN
AMERICA SUCCESSFULLY.
THAT SEEMS UNBELIEVABLE.
DAVID: YES.
>> YES IT'S TRUE AND WE WERE
CRITICIZED, THE PRESIDENT WAS
HEAVILY CRITICIZED FOR TRYING TO
MESS WITH THAT DEAL BY ALL SORTS
OF PEOPLE HERE IN THE SWAMP BUT
LO AND BEHOLD THERE IS UNIVERSAL
PRAISE FOR THE OUTCOME.
AS YOU SAID DESCRIBING THIS, THE
LIGHT TRUCK ISSUE, LET'S
HOPEFULLY THEY WILL TOAST A
GLASS IN DEARBORN, MICHIGAN, AND
WARREN, MICHIGAN, AND FLINT,
MICHIGAN, THAT IS WHERE WE BUILD
THINGS LIKE THE FORD F-SERIES
PICKUP AND CHEVY SILVERADO AND
THE RAM.
WITHOUT PRESIDENT TRUMP'S
FORWARD-LOOKING STRATEGY HEADING
THAT ONE OFF AT THE PASS WE
WOULD HAVE HAD TROUBLE IN
MICHIGAN IN JUST A FEW YEARS
WITH A FLOOD OF THOSE KOREAN
PICKUP TRUCKS.
DAVID: NOW THE FLOW IS GOING TO
BE GOING IN THE OTHER DIRECTION
BUT I'M JUST WONDERING IF IN
FACT THE DEAL IS SIGNED AND THE
STEEL TARIFFS, THEY'RE EXEMPT
FROM THE STEEL TARIFFS, IF YOU
GET A NAFTA DEAL SIGNED, CANADA
AND MEXICO ARE EXEMPT FROM THE
DEAL.
>> LET ME STOP YOU THERE, WHAT
YOU SAID THERE CREATES A MASSIVE
MISPERCEPTION IN AMERICA.
DAVID: PLEASE.
>> WE'RE NOT EXEMPTING ANYBODY
FROM THE STEEL TARIFFS WITHOUT
PUTTING IN SOMETHING MORE OR AS
RESTRICTIVE.
IN THE CASE OF SOUTH KOREA,
BASICALLY THEY ARE GOING TO
ADHERE TO A STRICT QUOTA OF 70%
OF WHAT THEIR AVERAGE WAS FOR
THE PAST COUPLE YEARS.
DAVID: YOU ARE MOVING FROM
TARIFFS TO QUOTA FOR INDIVIDUAL
COUNTRIES.
>> YES.
DAVID: THAT IS IMPORTANT.
HOLD ON ONE SECOND, EXCUSE ME,
PETER, LET ME PUT UP A QUOTE
THAT YOU HAD.
>> SURE.
DAVID: WHEN YOU HAD BACK WHEN
THE TARIFFS WERE FIRST ANNOUNCED
EARLY IN MARCH.
YOU WARNED ABOUT EXEMPTIONS OR
MOVEMENT FROM TARIFFS TO QUOTAS
ON "FOX NEWS SUNDAY."
LET ME PLAY THE TAPE FOR YOU.
>> AS SOON AS HE STARTS
EXEMPTING COUNTRIES, HE HAS TO
RAISE THE TARIFF ON EVERYBODY
ELSE.
AS SOON AS HE EXEMPTS ONE
COUNTRY HIS PHONE STARTS RINGING
FROM THE HEADS OF STATE OF OTHER
COUNTRIES.
DAVID: SO HAVE YOU BEEN GETTING
THOSE PHONE CALLS, PETER?
>> BUT THAT IS EXACTLY RIGHT.
THE STRATEGY IS WORKING EXACTLY
BECAUSE WHAT I SAID THERE WAS AS
SOON AS YOU START EXEMPTING
COMPLETELY, WE'RE NOT LETTING
ANYBODY --
DAVID: YOU DIDN'T SAY
COMPLETELY.
YOU SAID EXEMPTING.
>> EXACTLY.
WE'RE NOT EXEMPTING ANYBODY.
IN THE CASE OF KOREA WE'RE
SUBSTITUTING A QUOTA FOR A
TARIFF.
DAVID: THIS IS A BIG
SUBSTITUTION THOUGH?
>> NO, IT IS NOT ACTUALLY.
IN ECONOMICS THEY'RE TOTALLY
EQUIVALENT.
WHAT WE HAVE HERE IS A SITUATION
WHERE IT IS PARAMOUNT FOR THE
232 INVESTIGATION FOR STEEL AND
ALUMINUM TO BE FULLY AND
STAUNCHLY DEFENDED.
THE WORST CASE EXEMPTING A
COUNTRY, LETTING THEM OFF
TARIFF-FREE.
THEY BECOME A TRANSSHIPMENT
POINT FOR ALL THE STEEL IN THE
WORLD TO FLOOD IN OUR COUNTRY.
THAT IS NOT HAPPENING HERE.
DAVID: THE DIFFERENCE HERE, HOLD
ON A SECOND, PETER, THE
DIFFERENCE IS, WHEN YOU HAVE A
TARIFF, THERE IS AUTOMATIC
INCREASE IN PRICE FOR PERSON
SENDING THAT STUFF TO YOU.
>> CORRECT.
DAVID: IN THE CASE OF A QUOTA,
IF YOU ONLY PUT IN SO MUCH, YOU
DON'T HAVE TO PAY EXTRA.
SO THERE IS A DIFFERENCE IN
PRICE.
>> BUT HERE IS THE ECONOMICS OF
THAT.
THE ECONOMICS ARE WHAT YOU'RE
TRYING TO DO WITH EITHER A
TARIFF OR A QUOTA IS TO REDUCE
THE AMOUNT OF TOTAL IMPORTS
ACROSS THE 20 COUNTRIES COMING
IN FOR STEEL.
YOU CAN DO THAT EITHER WITH A
TARIFF OR A QUOTA OR SOME
COMBINATION THEREOF.
DAVID: YEAH.
>> THE ONLY REAL DIFFERENCE
BETWEEN A TARIFF AND QUOTA, WITH
A TARIFF, THIS GOVERNMENT GETS
THE MONEY.
WITH A QUOTA, FOREIGN PRODUCERS
ARE --
DAVID: THERE IS ANOTHER BIG
DIFFERENCE, PETER.
THE OTHER BIG DIFFERENCE I THINK
A QUOTA IS A MUCH BETTER DEAL
FOR U.S. CONSUMERS BECAUSE IN
THE END THERE IS NOT A CONCERN,
I KNOW YOU WOULD ARGUE AGAINST
THIS, BUT THERE IS NOT AS BIG OF
A CONCERN WITH PRICES GOING UP
WITH QUOTAS AS WITH TARIFFS BUT
QUICKLY I HAVE TO ASK YOU ABOUT
NAFTA.
>> SURE.
DAVID: HOW CLOSE ARE WE GETTING
A DEAL WITH OUR CANADIAN AND
SOUTHERN NEIGHBORS?
>> THAT IS NOT IN MY LANE.
AMBASSADOR ROBERT LIGHTHIZER IS
THE MAN ON THAT.
HE IS THE TOUGHEST HOMBRE IN
THIS TOWN.
DAVID: HE IS TOUGH.
>> BESIDES THE PRESIDENT OF
COURSE.
WE HAD SIX ROUND WITH HUNDREDS
OF PEOPLE INVOLVED WITH THE
MEXICANS AND CANADIANS AND WE
HEAR THERE IS POSITIVE SIGNS AND
WE'LL SEE.
I MEAN THERE HAS TO BE SOME
MYSTERY DAVID, OTHERWISE YOU
WOULD NOT BE ABLE TO TEASE NEXT
WEEK'S SHOW.
DAVID: THAT'S RIGHT, PETER.
YOU HAVE A POINT.
YOU'RE THINKING OF FOX.
>> WE MAY HAVE A SOLUTION IN THE
NAFTA DEAL.
DAVID: FINAL QUESTION, HOW ARE
YOU GETTING ALONG WITH
LARRY KUDLOW?
>> I LOVE LARRY.
HE AND I GO BACK OVER A DECADE
WHEN WE WERE BOTH ON THE OTHER
NETWORK WE DON'T LIKE TO TALK
ABOUT.
DAVID: THAT IS THE DARK NETWORK.
>> WE WERE FRIENDS THEN.
WE AGREED DURING THE CAMPAIGN WE
WERE BLOOD BROTHERS IN ARMS
THERE.
DEREGULATION, TAX CUTS.
WE HAVE GENTLEMEN'S
DISAGREEMENTS.
DAVID: LIE YOU AND I DO AS WELL.
>> AMEN TO THAT, DAVID.
DAVID: CORRECT ME IF I'M WRONG,
I THINK THOSE DISAGREEMENTS ARE
KIND OF MENDING THEMSELVES AND
THERE IS AN AGREEMENT COMING
TOGETHER EVEN AMONG PEOPLE THAT
WERE INITIALLY OPPOSED TO EACH
OTHER?
>> WELL HERE'S THE DEAL.
EACH OF US HERE IN THE
WHITE HOUSE HAVE A DUTY AND
OBLIGATION TO SERVE THE
PRESIDENT BY GIVING HIM THE BEST
ADVICE WE CAN, WORKING WITH EACH
OTHER.
THAT IS WHAT IS GOING TO HAPPY
WITH LARRY.
HE IS A GENTLEMAN.
EVERYTHING WILL HAPPEN BEHIND
CLOSED DOORS.
WE WILL HAVE UNITED FRONT WHEN
DECISIONS ARE MADE.
THAT IS THE WAY THE PRESIDENT
TRUMP RUNS THIS WHITE HOUSE.
AND IT'S A GREAT WHITE HOUSE.
DAVID: PETER, WE WOULD LOVE TO