INFRASTRUCTURE, HOUSE ARMED
SERVICES, EDUCATION AND WORK
FORCE COMMITTEES, HE SAT ON ALL
THOSE.
>>> TO THE TRUMP TRADE WARS.
NEW TARIFFS MAY HAVE KICKED IN
OVERNIGHT AGAINST THE U.S. AND
CHINA.
U.S. AGAINST CHINA, CHINA
AGAINST THE U.S.
BUT THE BELTWAY RUMOR MILL SAYS
MINISTER, THE U.S. AND MEXICO
ARE CLOSE TO RESOLVING A
STILL A STICKING POINT.
WHAT DOES THE AUTO INDUSTRY HOPE
WILL BE INCLUDED IN THESE NEW
RULES?
ADVISERS' CHAD BAUM AND GLOBAL
AUTOMAKER CEO AND PRESIDENT,
HAPPENING?
>> WE HAVE BEEN HEARING THE U.S.
AND MEXICANS ARE CLOSE, IN TERMS
OF WHAT THEY HAVE BEEN WORKING
AMERICAN REGION.
THIS IS A KEY STICKING POINT.
I THINK WE REALLY HAVE TO WAIT
AND SEE WHAT THE DETAILS ARE.
WE DON'T HAVE A DEAL YET AS FAR
AS WE KNOW.
THERE HASN'T BEEN AN
ANNOUNCEMENT.
IT'S REALLY GOING TO DEPEND ON
THE NITTY-GRITTY.
LIZ: THE PRESIDENT HAS TRIED TO
DEMONIZE, WORKED VERY HARD TO
DEMONIZE CHEAPER MEXICAN LABOR
AND ANY COMPANY HERE IN THE U.S.
THAT DOES BUSINESS IN MEXICO.
HOW DO YOU STAND?
YOU REPRESENT SO MANY VOICES IN
THE U.S. AUTO INDUSTRY.
WHAT DO YOU HOPE IS IN HERE,
WHAT MUST BE IN HERE?
>> YEAH, THAT'S A GREAT
QUESTION.
THERE ARE 14 CAR COMPANIES
BUILDING CARS AND TRUCKS HERE IN
THE UNITED STATES OF AMERICA,
AND ONE OF THE BIG REASONS FOR
THAT IS BECAUSE WE HAVE HAD
GREAT SUCCESS UNDER NAFTA, THE
CURRENT NAFTA, CALL IT NAFTA
1.0.
WHAT'S HAPPENING, WE ARE
BUILDING MORE CARS HERE IN
AMERICA TODAY THAN WE DID BEFORE
NAFTA.
WE ARE EXPORTING MORE CARS TODAY
THAN WE DID BEFORE NAFTA.
WE ARE EMPLOYING MORE PEOPLE.
WHAT I'M CONCERNED ABOUT IS
WHETHER THE NAFTA 2.0 THAT
APPEARS TO BE DOWN TO THE SHORT
THE INDUSTRY GOING FORWARD.
THAT'S THE REAL QUESTION.
LIZ: WHAT NEEDS TO BE IN IT?
RULES, YOU HEARD CHAD CALL THEM
RULES OF ORIGIN, THESE ARE THE
RULES YOU NEED TO COMPLY WITH TO
GET DUTY-FREE BENEFITS OF NAFTA.
THEY ARE INCREDIBLY COMPLEX AND
CHALLENGING.
MUCH, MUCH MORE SO THAN IN THE
CURRENT NAFTA.
WHAT WE HAVE TO MAKE SURE IS
THAT THOSE COMPLEX SETS OF RULES
GET THE BALANCE RIGHT BETWEEN
ALLOWING FOR A COMPETITIVE NAFTA
TO SUPPORT STRONG SUPPLY CHAINS
WHILE AT THE SAME TIME
SUPPORTING AMERICAN INVESTMENT.
THAT BALANCE IS REALLY NOT GOING
CHINA.
OF COURSE, OVERNIGHT, $16
BILLION, THAT WOULD BE ON ANY
CHINESE GOODS COMING INTO THE
U.S.
THAT'S WHAT THE U.S. HAS SLAPPED
25% TARIFFS ON.
CHINA MATCHED US STEP FOR STEP
ON THIS.
HOW MUCH LONGER DOES THIS GO ON?
WHAT'S YOUR ANTICIPATION AND WHO
GIVES, WHO BENDS INSTEAD OF
BREAKING?
>> WELL, IT LOOKS LIKE THIS IS
GOING TO CONTINUE ON FOR AWHILE.
AS YOU SAID, WE HAD THAT GO ON
OVERNIGHT.
THE TRUMP ADMINISTRATION THIS
WEEK IS HOLDING HEARINGS WHERE
THEY ARE CONSIDERING IMPOSING
ANOTHER $200 BILLION WORTH OF
TARIFFS ON CHINA.
YOU HAVE A LOT OF AMERICANS THAT
ARE COMPLAINING ABOUT THAT AND
ARGUING ABOUT HOW THAT'S GOING
TO HIT THEM RIGHT IN THE
POCKETBOOK.
IF THEY'RE CONSUMERS.
IF THEY'RE BUSINESSES, IT WILL
BE MORE DIFFICULT FOR THEM TO
THE CHINESE SAID THEY WILL
RETALIATE WITH ANOTHER $60
BILLION OF THEIR OWN.
THEY SENT A TRADE MINISTER TO
TALK WITH THE TRUMP
ADMINISTRATION HERE THIS WEEK,
BUT THOSE ARE RELATIVELY LOW
LEVEL TALKS.
I FEAR THIS WILL GET WORSE
BEFORE IT GETS BETTER.
LIZ: ALL THE HOTELS ARE SOLD
OUT.
YOU HAVE TRADE REPS FROM EVERY
COUNTRY COMING TO D.C.
THE PRESIDENT HAS GOTTEN
PEOPLE'S ATTENTION AND PERHAPS
BEING A DISRUPTOR, IS SUPER
IMPORTANT TO AT LEAST SHOW YOU
BUT TELL ME AS A BUSINESS
NETWORK, WE ARE WATCHING STOCKS.
IF THERE IS, LET'S JUST SAY
FIRST A NAFTA DEAL.
FORGET ALL THE OTHER
NATIONAL/INTERNATIONAL DEALS,
BUT IF THERE IS A NAFTA DEAL
THAT'S FRIENDLY TO THE AUTO
INDUSTRY, WHAT DO YOU EXPECT
THESE COMPANIES TO DO?
GOT THAT BALANCE RIGHT, AS I
SAID, BETWEEN MAINTAINING
COMPETITIVE SUPPLY CHAINS AND
CONTINUING TO SUPPORT AMERICAN
MANUFACTURING, I THINK THAT
WOULD BE -- THAT WOULD CERTAINLY
BE GOOD NEWS AND WHAT YOU WOULD
CONTINUE TO SEE IS MORE
INVESTMENT IN THE UNITED STATES.
I THINK THAT'S STILL AN OPEN
QUESTION.
AGAIN, YOU HAVE TO PUT NAFTA
INTO CONTEXT OF THE OTHER TRADE
EXAMPLE, WHETHER AFTER
COMPLETING A NAFTA, THE
PRESIDENT OR THE ADMINISTRATION
MIGHT NOT THEN IMPOSE FURTHER
AUTO TARIFFS AND TAXES ON THE
INDUSTRY, WHICH WOULD MAKE THE
EVEN IF YOU COMPLETE NAFTA.
LIZ: CHAD, JOHN, WONDERFUL TO
HAVE YOU.
WE KEEP HEARING.
AGAIN, THIS IS VERY CLOSE, AT