NO INDICATION THAT THE CHINESE
TARIFFS JUST HOURS AWAY.
LET'S FET READ FROM FORMER CHIEF
OF STAFF TO PAUL RYAN DAVE HOFF.
HEATHER ZUMARRIAGA AND
"USA TODAY" CONGRESSIONAL
REPORTER ELIZA COLLINS.
WE'RE WAITING TO HEAR WHAT THE
CHINESE DO IN RESPONSE.
MOST PEOPLE SAY THIS IS
CONTAINED, 34 BILLION, TO
34 BILLION, SO SMALL IN THE
SCHEME OF THINGS, THE WORLD, THE
BOTH COUNTRIES, CAN LIVE WITH
>> WE'LL HAVE TO WAIT AND SEE.
AFFECT THEM.
IN MIDTERMS REPUBLICANS WILL
WORRY WHAT IT WILL DO.
IF PEOPLE GO TO THE STORE,
GALLON OF MILK COSTS A MORE
MONEY IT WILL HAVE PROBABLY LESS
OF AN EFFECT AND MARKETS STAY
HIGHER.
NEIL: DAVE, WHAT DO YOU THINK?
>> IT IS NOT A QUESTION OF THE
STORK MARKET.
THE STOCK MARKET HAS TAKEN THIS
INTO EFFECT ALREADY.
IT IS RETAILERS AND FARMERS
ESPECIALLY.
THAT IS WHERE YOU FIRST SEE THE
BECAUSE THE PRICES ARE GOING
DOWN.
NON-TARIFF BARRIERS, ARE ONES
THAT YOU CAN USE VERY PAINFULLY
FOR AMERICANS AND AMERICAN
RETAILERS.
THAT IS TERRIFIC PROBLEM TO DEAL
WITH, NOT A MINOR PROBLEM.
ALTHOUGH NOT THE TARIFFS SOME
ARE WORRIED ABOUT.
NEIL: IT IS PASSIVE AGGRESSIVE
WAY, HEATHER TO STICK IT TO
AMERICAN COMPANIES WITHOUT
TARIFFS OF THEIR OWN, BUT YOU
KNOW OBVIOUSLY THE TO DAVE'S
WHAT DO YOU THINK?
>> I THINK WE COULD STAND IF
THIS ESCALATES TO A TRADE WAR TO
LOSE MORE JOBS THAN WE WOULD
GAIN PROTECTING DOMESTIC
PRODUCERS AND MANUFACTURERS HERE
IN THE U.S. THE MARKETS ARE UP
ON THE BACKS OF SOME AUTO TARIFF
TALK QUIETING DOWN.
POLICY, ZERO TARIFF SOLUTION
THAT IS PROSED, SAYING HEY, EU,
IF YOU STOP LEVYING TARIFFS ON
STANCE, THREATENING TARIFFS ON
CONSIDERS COMING OUT OF
SPECIFICALLY GERMANY.
GERMANY REALLY STANDS, I THINK,
TO TAKE A BIG HIT ON THE BACKS
OF THESE AUTO TARIFFS WHICH
COULD BE MORE THAN THREE TIMES
THE AMOUNT OF STEEL AND ALUMINUM
TARIFFS.
IF THIS ZERO SOLUTION IS
BIG ONE FOR THE MARKETS.
LOOK AT FORD,GM, FIAT UP ON THE
NEWS.
NEIL: ON THAT POINT, ELIZA,
GERMANY ALREADY INDICATED,
COURTESY OF THE IMF, THAT HE
WILL PUT A PINCH ON THEIR
GROWTH, LIKELY 2.2% DOWN
SHARPLY.
ANGELA MERKEL SAYS SHE THINKS
THIS IS GOING TO REVERBERATE,
WORSE.
WHAT DO YOU THINK OF THAT?
THE IDEA THIS IS SPREADING AND
IT MIGHT ALREADY BE OUT OF
TO SEE WHAT HAPPENS.
AGAIN, THE ZERO TOLERANCE POLICY
WOULD CERTAINLY TAMP THAT DOWN
BUT IF THAT IS NOT THE CASE, IF
THAT DOES GO, GLOBAL ECONOMY
LIKELY WILL BE HIT.
TALKS DEFINITELY HERE AT HOME
WITH MIDTERMS COMING UP.
LAWMAKERS GOING IN, IF PEOPLE
HOME ARE BEING HIT BECAUSE
TARIFFS ABROAD, THAT'S JOBS.
THAT'S PEOPLE WHO WILL GO TO THE
POLLS AND VOTE AND THAT'S
CONCERNING FOR THE PEOPLE IN
POWER RIGHT NOW.
NEIL: YOU KNOW I DO GET WORRIED,
ABSORB THIS.
THAT IS A TOUGH SELL.
>> EASY FOR SOMEONE ELSE TO SAY.
NEIL: RIGHT.
ALL OF SUDDEN THEY ARE THE ONES
WHO HAVE TO ABSORB THIS.
THEY HAVE BEEN ON THE FRONT
LINES OF THIS, EVERYTHING THAT
IS THEIR LIFE BLOOD TRADES ON
FUTURES MARKET, FUTURES TUMBLED
FOR A LOT OF GOODS THEY SELL.
THEY'RE IN A REAL PICKLE HERE
AND I'M WONDERING HOW LONG THEY
WE GET SHUT OUT OF THE SOYBEAN
MARKET, THINGS OF THAT NATURE,
IT WILL BE VERY, VERY HARD ON
FARMERS HERE IN THE UNITED
STATES AND THERE IS NO NECESSITY
TO DO THIS.
THE THERE ARE OTHER WAYS TO
HANDLE THIS.
THE GATLING GUN APPROACH TRUMP
ADMINISTRATION TAKEN, LOOKING AT
CHINA, THE PROBLEMS WITH CHINA,
WHETHER PLAYING AROUND WITH THE
MAKE CHANGES IN THE WTO, TO MAKE
CHINA AN HONEST PLAYER I THINK
THE REST OF THE WORLD --
>> CHINA SHOULD NOT, CHINA
SHOULD NOT HAVE EVER BEEN
ACCEPTED IN THE WTO FIRST PLACE.
IT IS PLAYING UNDER DIFFERENT
SET OF RULES, MORE EMERGING
THEY ARE NOT OPERATES ON FREE
MARKET SYSTEM THE WAY THE OTHERS
OUR.
YOU ARE A SUPERPOWER
ECONOMICALLY, AND PLAY BUT THE
SAME RULES?
TO DAVE'S EARLIER PART THAT ARE
TELLING ANYTHING APART FROM WHAT
IS HAPPENING IN THE REAL WORLD
OF THE ECONOMY, WHAT HAVE YOU,
>> OH, YES.
NEIL: I WONDER ABOUT THAT.
>> THE MARKETS ARE DISMISSING
THE ANXIETIES BECAUSE THE
MARKETS DON'T THINK, I THINK, A,
A TRADE WAR WILL RESULT.
THE MARKETS MOVE ON EVERY RUMOR
COMING OUT ON TRADE THAT WE HEAR
BUT ALSO THE JOBS DATA.
177,000 PRINT TODAY, ADP PRINT.
BELOW 190,000 EXPECTED.
BUT OVERALL ECONOMY IS DOING
VERY WELL.
HERE IN A WEEK OR TWO.
SO I THINK IN JULY, IT WOULD BE
TOUGH TO TELL INVESTORS TO GO
OUT AND BUY THIS MARKET.
I DON'T WANT TO BE CAUGHT SHORT
EITHER.
UNTIL I SEE WHAT HAPPENS WITH
TRADE.
COMMERCE SECRETARY WILBUR ROSS
THAT THE PRESIDENT ISN'T GOING
TO JUDGE WHAT MOVES HE MAKES ON
TRADE OR CONCESSIONS BASED ON
THE STOCK MARKET BUT HE IS VERY
ATTUNED TO IT.
I WONDER IF IT GOES TO A
SUSTAINED FALL, NOT TODAY, WE'RE
AT SESSION HIGHS, HE IS PAYING
>> WITH PRESIDENT TRUMP WE NEVER
THAT IS A.
WHEN THE STOCK MARKET IS HIGH,
PUBLICLY IF IT DROPS.
HE IS A BUSINESSMAN.
I THINK HE IS VERY AWARE OF WHAT