YOU DON'T WANT TO MISGENTLEMEN.
FEELING IMPACT OF TRADE
TENSIONS, AMERICA'S CLOSEST
AS MUCH AS UP TO 25% ON IMPORTED
VEHICLES AND AUTO PARTS.
WILBUR ROSS SAYS IT'S TOO EARLY
TO SAY IF THE TRUMP
ADMINISTRATION WILL ACTUALLY
PRESS AHEAD WITH TARIFFS,
THERE'S ALREADY SWIFT PUSHBACK
FROM MOVES OF THE PRESIDENT'S
OWN PARTY IN CAPITOL HILL.
>> I WOULD LIKE TO SEE US MOVE
TO A ZERO TARIFF WORLD.
THE TARIFF IDEA IS RIDICULOUS, I
AMERICANS, IT'S GOING TO BE A
TEXAS ON THE AMERICAN PEOPLE AND
MY SENSE IS THAT CONGRESS WILL
STEP IN AND KEEP THAT FROM
HAPPENING IF IT ATTEMPTS TO DO
SO.
>> DESPERATELY HOPE THAT WE GET
OFF TO THIS TARIFF QUICK AND
REALLY STARTING TO BITE AROUND
THE COUNTRY AND IT'S GOING TO
ESCALATE, THAT'S THE WAY THIS
GOES. YOU HARD PRESS ANY
INSTANCE WHERE YOU IMPOSE
TARIFFS TO TRY TO GET A LEVEL
PLAYING FIELD IT ALWAYS RATCHETS
UP.
DAGEN: CORN IS TRADING AT LOWEST
POINT IN ALMOST A YEAR.
AND THE LATEST ROUND OF TARIFFS
ON $20 BILLION WORTH OF CHINESE
GOODS COULD HIT THE APPLE WATCH,
FIT BIT, SPEAKERS WITH 10%
TARIFFS.
JOINING US JON HILSENRATH, JON,
YOUR TAKE ON THIS TARIFF FIGHT.
WE HEARD -- BECAUSE, AGAIN, WE
HEARD IN TESTIMONY EARLIER THIS
WEEK THE HEAD OF THE FED JAY
POWELL WAS VERY CAREFUL TO SAY
ABOUT WHAT HE SAYS THE ECONOMIC
IMPACT OF THE TRADE FIGHT.
JON: RIGHT, BUT WE ALSO HAD FED
REPORT WHERE FED GOES OUT AND
SURVEYS BUSINESSES ABOUT WHAT'S
COMPANIES THAT WERE SAYING THAT
TARIFFS WERE STARTING TO BITE
THEM AND, YOU KNOW, I THINK IT'S
INTERESTING, NEXT WEEK WE ARE
GETTING REPORT OUT FROM COMMERCE
DEPARTMENT ON GDP GROWTH IN
SECOND QUARTER, IT'LL BE A
STRONG REPORT BUT UP WITH OF THE
THINGS THAT'S GOING TO BE
UNDERNEATH THAT REPORT IS,
AGAIN, THE TARIFF IMPACT, WE ARE
SEEING COMPANIES THAT COMPANIES
ARE BUILDING UP INVENTORIES,
THEY ARE TRYING TO GET PRODUCTS
IN BEFORE PRICES GO UP.
ONE OF THE DRIVERS OF GROWTH IN
SECOND QUARTER WAS INVENTORY
GROWTH AS COMPANIES PREPARE FOR
TARIFFS AND WE ALSO SAW UP SURGE
OF SOYBEAN SALES LAST QUARTER
WHICH WAS BASICALLY COMPANIES
GETTING SOYBEANS OUT BEFORE
THOSE TARIFFS WENT UP.
SO WE ARE SEEING REAL
NUMBERS ARE GETTING BIG ENOUGH
THAT WE HAD YESTERDAY ON
POTENTIAL FOR TARIFFS ON
IMPORTED AUTOS AND I SPOKE MY
MIND PRETTY CLEARLY YESTERDAY
WHERE I STAND ON THAT, ON THE
IMPACT ON ALL AUTOMAKERS BOTH
U.S. WHICH WOULD SEE HIGHER AUTO
PARTS AND ALSO FOREIGN AUTO
MAKERS THAT HAVE PLANTS HERE IN
THE UNITED STATES PLUS THE
PRICE, PRICE INCREASES THAT
WOULD BE PASSED ONTO CONSUMERS
RUNNING THOUSANDS OF DOLLARS PER
VEHICLE, THAT BEING SAID, DO YOU
HAVE ANY SENSE OF WHERE THE
WHITE HOUSE, WHERE THE TRUMP
ADMINISTRATION STANDS ON REALLY
PUSHING AHEAD AND TRYING TO USE
THAT NATIONAL SECURITY ISSUE TO
SLAP AUTO TARIFFS ON?
HADN'T MADE A DECISION YET, SO,
YOU KNOW, THAT SUGGESTED MAYBE
TIME AGAIN THERE'S A LOT OF
DISAGREEMENT ON THE WHITE HOUSE
ON HOW TO PROCEED WITH THIS
STUFF, IT ALL COMES DOWN WITH
THE PRESIDENT, WHAT DOES DONALD
TRUMP WANT TO DO, HE SEEMS TO
THINK THAT THIS TARIFF ISSUE IS
A WINNER FOR HIM, SO, YOU KNOW,
THAT SEEMS TO BE WHERE THEY ARE
GOING ON IT.
THIS WEEK ON WHAT'S HAPPENED IN
THE WASHING MACHINE INDUSTRY --
DAGEN: YEAH, YOU DID, WE TALKED
WHICH YOU GUYS REPORTED SO
TERRIFICALLY YESTERDAY AND THE
PRICES OF WASHING MACHINES GOING
UP.
JON: YEAH, WHAT WE SAW 20%
INCREASE IN JUST THREE MONTHS.
20,000-DOLLAR CAR IS NOW GOING
TO COST YOU $24,000, SO, YOU
KNOW, THAT'S KIND OF A ROUGH
SKETCH OF WHAT THIS KIND OF
YOU WERE TALKING ABOUT REDURABLE
GOODS, PEOPLE BUY THOSE ONCE
EVERY 3, 5, 7, 10 YEARS, WHAT MY
MAIN CONCERN IS POSSIBLY THE
PERFECT STORM OF WHAT WE ARE
SEEING RISING INPUT COSTS
VIS-A-VIS RISING RATES, WE ALSO
HAVE LABOR COSTS, YOU MENTION
THINGS COMING UP FOR THE SECOND
HALF OF THE YEAR, THIS
ADMINISTRATION IS STILL TALKING
ABOUT 4%?
JON: YEAH, WHAT'S GOING TO
NUMBERS, ESTIMATES 4 TO 5%.
WHAT WE HAVE TO REMEMBER THAT'S
JUST FOR THE SECOND QUARTER,
THERE'S GOING TO BE A LOT OF
PEOPLE SAYING, LOOK, WE HIT 4%,
YOU KNOW, MISSION ACCOMPLISHED
BUT THAT'S AFTER 2% NUMBER IN
THE FIRST QUARTER AND THEN LIKE
YOU SAY, THE SECOND HALF OF THE
YEAR IS WILD CARD, A LOT OF THE
GROWTH THAT WE GOT IN THE SECOND
QUARTER, AGAIN, WAS DUE TO
INVENTORY GROWTH AND YOU COULD
SEE COMPANIES PAIRING BACK THOSE
INVENTORIES LATER IN THE YEAR,
SO, YOU KNOW, I THINK IT DOES
LOOK LIKE ECONOMIC GROWTH HAS
PICKED UP TAX CUTS ARE SPURRING
CONSUMER SPENDING, IT DOES LOOK
LIKE THERE'S BUSINESS INVESTMENT
BUT I JUST THINK A LITTLE TOO
EARLY TO CEL BRIT ON THIS KIND
OF THING, THERE'S A LOT OF
THINGS THAT HAVE TO PLAY OUT
OVER THE COURSE OF THE YEAR
THESE TARIFFS HAVE A LONG SHELF
LIFE BECAUSE WE'VE TALKED ABOUT
IT ON THE PROGRAM, MY FRIENDS
CALL IT THE CHICKEN TAX WHICH IS
THAT TARIFF THAT'S ON TRUCK THAT
IS WE HAVE 25%, TARIFF ON IMPORT
IT'S CALLED THE CHICKEN TAX
BECAUSE IT WAS RETALIATION BY
THE LYNDON JOHNSON
ADMINISTRATION TO A FIGHT WE HAD
OVER POULTRY IMPORT INTO EUROPE
DAGEN: THEY HAVE A LONG LIFE.
JON: WELL, THEY HAVE A LONG LIFE
AND THAT LIGHT TRUCK TARIFF IS
SOMETHING THAT SHOULD BE PART OF
THIS CONVERSATION, YOU KNOW, THE
U.S. IS TELLING THE EUROPEANS
HIGH TARIFFS ON THEIR TRUCKS AND