THANK YOU ALL VERY.
REPORTER: DECISION TO RETALIATE
ON TARIFFS AND MARKET REACTION
TO THAT?
>> WELL THE REACTION IS VERY
SIMPLE.
CHINA HAS BEEN TAKING ADVANTAGE
OF THE UNITED STATES FOR MANY,
MANY YEARS.
I'M NOT JUST TALKING ABOUT
DURING THE OBAMA ADMINISTRATION.
YOU CAN GO BACK LONG BEFORE THAT
AND IT HAS BEEN TAKING OUT, 400,
500, $600 BILLION A YEAR OUT OF
THE UNITED STATES AND WE CAN'T
LET THAT HAPPEN.
WE'RE IN A VERY STRONG POSITION.
OUR ECONOMY HAS BEEN VERY
POWERFUL.
THEIRS HAS NOT BEEN.
WE'VE GONE UP A LOT SINCE OUR
GREAT ELECTION IN 2016 AND IF
YOU LOOK AT THE NUMBERS, THEY
HAVE GONE DOWN QUITE A BIT.
WE'RE DEALING WITH THEM.
WE HAVE A VERY GOOD
RELATIONSHIP.
MAYBE SOMETHING WILL HAPPEN.
WE'LL BE MEETING AS YOU KNOW AT
THE G20 IN JAPAN AND THAT WILL
BE, I THINK PROBABLY A VERY
FRUITFUL MEETING.
BUT WE'RE TAKING IN RIGHT NOW
HUNDREDS OF BILLIONS OF DOLLARS.
WE'RE TAKING IN BILLIONS OF
DOLLARS OF TARIFFS.
THOSE TARIFFS ARE GOING TO BE
TREMENDOUSLY, IF YOU LOOK AT
WHAT WE'VE DONE THUS FAR WITH
CHINA.
WE HAVE NEVER TAKEN IN TENCENT
UNTIL I GOT ELECTED.
NOW WE'RE TAKING IN BILLIONS AND
BILLIONS.
IT WENT UP AS OF FRIDAY, VERY
SUBSTANTIALLY.
25% ON 200 BILLION.
NOW THE TOTAL IS 25% ON
$250 BILLION IN ADDITION TO
THAT, WE HAVE ANOTHER
$325 BILLION THAT WE CAN DO IF
WE DECIDE TO DO IT.
SO WE ARE TAKING IN TENS OF
BILLIONS OF DOLLARS.
WE HAVE NEVER DONE THAT BEFORE
WITH CHINA.
WE'VE NEVER DONE THAT BEFORE
WITH ANYBODY FRANKLY BECAUSE WE
HAVE BEEN TAKEN ADVANTAGE OF ON
ALL OF OUR TRADE DEALS
PRACTICALLY.
THIS IS A, A VERY POSITIVE STEP.
I LOVE THE POSITION WE'RE IN.
THERE CAN BE SOME RETALIATION
BUT IT CAN'T BE VERY, VERY
SUBSTANTIAL BY COMPARISON.
OUT OF THE BILLIONS OF DOLLARS
THAT WE'RE TAKING IN, A SMALL
PORTION OF THAT WILL BE GOING TO
OUR FARMERS BECAUSE CHINA WILL
BE RETALIATING PROBABLY TO A
CERTAIN EXTENT AGAINST OUR
FARMERS.
WE'LL TAKE THE HIGHEST YEAR, THE
BIGGEST PURCHASE THAT CHINA HAS
EVER MADE WITH OUR FARMERS,
WHICH IS ABOUT $15 BILLION, AND
DO SOMETHING RECIPROCAL TO OUR
FARMERS.
SO OUR FARMERS CAN DO WELL.
THEY WILL BE PLANTING.
THEY WILL BE ABLE TO SELL FOR
LESS AND MAKE THE SAME KIND OF
MONEY UNTIL SUCH TIME AS IT IS
ALL STRAIGHTENED OUT.
OUR FARMERS WILL BE VERY HAPPY.
OUR MANUFACTURERS WILL BE VERY
HAPPY AND OUR GOVERNMENT IS VERY
HAPPY BECAUSE WE'RE TAKING IN
TENS OF BILLIONS OF DOLLARS.
I THINK IT IS WORKING OUT VERY
WELL.
AGAIN WE DO MUCH LESS BUSINESS
WITH CHINA THAN THEY DO WITH US.
IF YOU TAKE A LOOK AT ONE HUPP
BILLION VERSUS 600 BILLION.
AND JUST SO YOU UNDERSTAND, WE
DON'T HAVE TO PAY ANY TARIFFS.
IF YOU'RE A MANUFACTURER IN THIS
COUNTRY, YOU PAY NOTHING.
OPEN YOUR DIVISION OR OPEN UP
YOUR PRODUCT, HAVE IT MADE IN
THIS COUNTRY AS OPPOSED TO MADE
IN CHINA.
OR, IF YOU DON'T WANT TO DO
THAT, AND THAT WOULD BE THE
IDEAL, THAT IS WHAT IT USED TO
BE A LONG TIME AGO WHEN WE WERE
SMART, WHEN WE HAD A ECONOMY
THAT WAS REALLY SOMETHING VERY
SPECIAL.
NOW WE'RE HAVING A PERIOD OF
TREMENDOUS GROWTH AND TREMENDOUS
SUCCESS LIKE WE HAVEN'T SEEN FOR
A LONG TIME.
BUT IN THE OLD DAYS WE MADE OUR
PRODUCT.
WE TOOK OUR PRODUCT, THAT IS
WHAT IT WAS.
NOW WE GO TO CHINA, WE BUY IT.
NOT ANYMORE.
IF THEY DON'T WANT TO PAY
TARIFFS, MAKE IT HERE OR BUY IT
FROM ANOTHER COUNTRY THAT IS
NON-TARIFF COUNTRY.
WHETHER YOU GO TO VIETNAM OR
SOME OTHERS YOU CAN DO THAT.
SO THE BOTTOM LINE IS, WE ARE
TAKING IN TREMENDOUS AMOUNTS OF
MONEY.
IT ALREADY STARTED AS OF LAST
FRIDAY BUT IT REALLY STARTED
SEVEN MONTH BEFORE THAT.
IT IS IN THE FORM OF TARIFFS OR
TAXES AND IT HAD A TREMENDOUS
IMPACT.
IF YOU LOOK AT FIRST QUARTER,
WHICH ALWAYS HISTORICALLY IS THE
WORST QUARTER, WE WERE 3.2%.