THE TARIFFS WHICH CHINA IS
EXPECTED TO RETALIATE.
NEIL: THEY'RE NOT TOO HAPPY WITH
IT, TO PUT IT MILDLY.
ADAM, THANK YOU VERY MUCH.
NO REASON TO DOUBT WHAT HE IS
SAYING, TARIFFS WE COULD SLAP
CHINA THE PRESIDENT EFFECTIVELY
DOUBLED.
WE RUN 360 BILLION-DOLLAR TRADE
GAP WITH THIS COUNTRY.
YOU KNOW HOW IT GOES.
IT COULD AFFECT MORE AND MORE
PRODUCTS.
THE FALLOUT, WALL STREET VIEW,
MAIN STREET VIEW, AHEAD OF THE
PRESIDENT AND WORDS HE WILL HAVE
WITH THE SAUDI PRINCE.
MAKING MONEY HOST CHARLES PAYNE,
"WALL STREET JOURNAL" SENIOR
VIDEO REPORTER SHELBY HOLIDAY.
HELLO BY, OBVIOUSLY THE
PRESIDENT IS UPPING THE ANTE, A
LOT OF FOLKS SAYING BE CAREFUL
WHAT YOU WISH FOR.
THEY WILL COME BACK AT YOU.
THE GERMAN FINANCE MINISTER IN
THIS COUNTRY WARNING JUST AS
MUCH.
WE'RE GETTING MORE.
THE PRESIDENT IS GOING ALONG
WITH IT.
>> SO FAR HE IS GOING ALONG WITH
IT.
NEIL: YOU DON'T THINK IT IS JUST
A THREAT?
>> I THINK IT IS A THREAT BUT HE
INTENSE TO DO SOMETHING.
THIS IS COMMON WITH THE
PRESIDENT.
THROWS A TRIAL BALLOON AND YOU
SEE WHERE IT POPS.
HE IS IMPOSING TARIFFS.
THAT IS AGAINST RECOMMENDATIONS
FROM TRADE GROUPS, PEOPLE WITHIN
HIS ADMINISTRATION.
HE DOESN'T SEEM TO CARE.
NEIL: JUST LIKE CHARLES.
>> HE HAS A HONEY BADGER
MIND-SET, HE DOESN'T CARE.
THE QUESTION IS WHY THE RUSH.
THERE SEEMED TO BE A RUSH TO THE
ANNOUNCEMENT.
MAYBE IT IS NOT THOUGHT THROUGH.
NEIL: IT COULD BE TO CONCESSIONS
AHEAD OF TIME.
>> IT COULD.
NEIL: THIS IDEA IF EVERYONE IS
AGAINST WHAT HE IS DOING, MAYBE
WHAT HE IS DOING MAKES SENSE,
I'M PARAPHRASING HERE BUT DO YOU
THINK THAT HE GETS THE DESIRE TO
DESIRED EFFECT WHETHER SOUTH
KOREA ON WASHING MACHINES,
CHINESE SOLAR PANELS, ALUMINUM,
STEEL PRODUCTS HAVE HALF THE
MAJOR TRADING PARTNERS, WHAT?
>> I DO THINK FIRST AND FOREMOST
IT IS NOT RUSHED.
THIS IS SOMETHING HE TALKED FOR
YEARS BEFORE HE WAS A PRESIDENT.
YOU COULD BACK 10 YEARS
PRESIDENT TRUMP WAS TALKING
ABOUT.
NEIL: THIS IS EFFECTIVE DOUBLING
TARIFFS OVERNIGHT.
>> OVERNIGHT.
>> CHINESE PREMIERE, ONCE A
YEAR, THIS IS WHAT HE SAID LAST
NIGHT, OVERNIGHT WHILE WE WERE
ASLEEP.
CHINA IS WILLING TO WIDEN ACCESS
TO THE MARKETS.
THEY WOULD NO LONGER TRANSFER OF
TECHNOLOGY FROM AMERICAN
COMPANIES TO CHINESE
MANUFACTURERS.
THAT THEY WORK HARDER TO PROTECT
INTELLECTUAL PROPERTY.
THEY WOULD IMPROVE ACCESS TO
SERVICE AND MANUFACTURING
SECTORS AND THAT THEY WILL LOWER
IMPART TARIFFS ON A LOT OF
THINGS INCLUDING CANCER DRUGS.
THIS IS NOT BEING REPORTED VERY
MUCH.
THIS IS NUMBER TWO GUY IN CHINA
SAID THIS OVERNIGHT.
I THINK THERE ARE CRACKS
HAPPENING.
AS FAR AS THE GERMAN FINANCE
MINISTER, WALL STREET ASSESSMENT
IF THERE WAS A TRADE WAR,
GERMANY WOULD COME OUT THE WORST
FOR IT.
WE ALSO HAVE 171 BILLION-DOLLAR
DEFICIT WITH THE EU THAT GERMANY
REALLY, REALLY TAKING ADVANTAGE
OF.
THE STAKES ARE OBVIOUSLY VERY
HIGH BUT IF THE PRESIDENT
DOESN'T PUSH BACK NOW, WHEN DOES
HE PUSH BACK?
IF WE DON'T HAVE THE GUMPTION TO
STAND UP ONCE AND FOR ALL WE'RE
GOING TO LOSE BECAUSE CHINA IS
GAINING ON US IN SO MANY WAYS.
OUR LEVERAGE DIMINISHES AS LONG
AS WE WAIT.
NEIL: HE IS RIGHT IN THIS
RESPECT OVER MANY, MANY YEARS
DONALD TRUMP SAID, FOR EXAMPLE
OF THE CHINESE, YOU KNOW THEY
NEED US A HELL OF A LOT MORE
THAN WE NEED THEM.
>> THAT'S RIGHT.
NEIL: HE ALWAYS COMES BACK TO
THE POSITION.
WE ARE THE WORLD'S GREAT
CONSUMERS.
THESE COUNTRIES TAKE ADVANTAGE,
THERE IS COMEUPPANCE FOR THAT.
HE MUST HAVE A POINT WHEN IT
COMES FOR HIS HEART TO SEE
AMERICAN CARS IN CHINA, SEE THEM
IN SOME OF THESE COUNTRIES
AGAINST WHO WE RUN THESE
ENORMOUS DEFICITS BUT IS THIS
THE SOLUTION?
>> I'M NOT SURE THIS IS THE
SOLUTION BUT WHAT I DO KNOW HIS
VOTERS LOVE THIS.
THEY VOTED FOR HIM.
HE WAS AMERICA FIRST.
HE WOULD FIGHT FOR AMERICA.
THIS IS WHAT THIS IS ALL ABOUT.
SEE ALL THE PEOPLE, ALL THE
ELITE, ALL MEDIA, COMPANIES SAID
THIS WOULD BE A PROBLEM FOR US,
THE TRADE ASSOCIATION, HE
COULDN'T CARE ABOUT THAT.
THE AMERICAN PEOPLE THAT VOTED
FOR DONALD TRUMP THINK THIS IS A
GREAT IDEA.
THEY LOVE HIM STANDING UP,
STANDING FIRM, GETTING TOUGH.
NEIL: NO DOUBT BUT ARE YOU
WORRIED OF THE BUSINESS EFFECT
HERE?
DOES THIS FRIGHTEN PEOPLE THAT
AMERICAN COMPANIES LOSE JOBS,
LOSE CONTRACTS WITH SOME OF
THESE COMPANIES?
>> I WOULD BE FRIGHTENED PUTTING
FORWARD EXACTLY AS IT IS TODAY,
MY SENSE WHAT CHARLES PAYNE
TALKED ABOUT, WHAT THE CHINESE
ACTUALLY WORK.
THE CHINESE PEOPLE AND CHINESE
GOVERNMENT MIGHT MAKE SOME MOVES
TO MAKE THINGS MORE FAVORABLE TO
THE U.S. I THINK THAT NEEDS TO
HAPPEN MOVING FORWARD.
NEIL: THAT'S INTERESTING.
SEE I WAS DEAD-SET AGAINST THIS
UNTIL I HEARD CHARLES PAYNE.
HE BROUGHT UP SOMETHING
SERIOUSLY THE WHOLE WORLD HAVING
YOU KNOW WHAT FITS ABOUT THIS
MAYBE THERE IS METHOD TO THE
MADNESS.
THE PROBLEM WHEN YOU LOOK AT IT,
THE WHEELS CAN COME OFF THE
WAGON VERY, VERY FAST.
>> THEY CAN BUT THEY HAVEN'T.
NEIL: BECAUSE WE HAVEN'T
IMPLEMENTED ANY OF THIS.
>> HE MAKES COMMENTS,
STATEMENTS, FORECASTS AND
DECISIONS IN A WAY THAT SCARES A
LOT OF PEOPLE.
IT DOESN'T MOVE THE NEEDLE.
WE HAVEN'T SEEN IT MOVE THE
NEEDLE YES.
NEIL: IN TERMS OF A RESPONSE.
>> IN TERMS OF RETALL AGES OR
RESPONSE.
I KNOW I LOVE THE BASE WOULD
FEEL THE SAME IF THINGS ARE MORE
EXPENSIVE AT WALMART OR COULDN'T
BUY THINGS BECAUSE OF A TRADE
WAR.
I DON'T KNOW THAT THEY WILL
THINK THAT.
STUART: I'M NOT THE POLLSTER LEE
IS BUT DURING THE CAMPAIGN I DID
TWEET OUT ON DOZEN OCCASIONS
WOULD YOU PAY MORE, 99% OF TRUMP
SUPPORTERS SAY YES.
LAST THING I PUT OUT THE SAME
TWEET.
99% SAID YES.
NEIL: THOSE ARE SUPPORTERS.
>> RIGHT.
I THINK I'M LOOKING AT THIS
ALMOST FRAME IT LIKE AMERICANS
BOUGHT WAR BONDS DURING
WORLD WAR II KNOWING THEY WOULD
NOT GET PAID BACK FOR 30 YEARS.
THE ELITES DON'T GIVE AVERAGE
PERSON CREDIT TO UNDERSTAND.
SURE, THERE WILL BE A INITIAL
HIT.
WE DON'T HAVE ENOUGH FACTORIES
TO MAKE CHEAP TVs.
NEIL: I DON'T THINK PEOPLE KNOW
THAT, NEIL.
>> MAYBE YOU'RE
UNDERESTIMATING --
NEIL: PRESIDENT WARN PEOPLE OF,
YOU ARE GOING TO NOTICE A COUPLE
OF YOUR FAVORITE ITEMS YOU LIKE
THEY WILL GO UP A LOT IN PRICE.
>> THAT IS MY THING, PEOPLE KNOW
PRICES GO UP.
THEY SAID THEY CAN DEAL WITH IT.
NEIL: I DON'T THINK THEY DO.
>> REALLY?
>> I DON'T THINK THEY KNOW THE
IMPACT ON THEM.
SUPPORT IN THE AGGREGATE BECAUSE
THEY THINK AMERICANS ARE GETTING
SCREWED.
IN A LOT OF CASES THE PRESIDENT
IS DARN RIGHT ON THAT BUT I
DON'T THINK THEY ARE READY TO
ABSORB PUNISHMENT.
>> I THINK THEY ARE READY.
>> I THINK IN THEIR MINDS THEY
ARE READY.
I DON'T THINK EVERYBODY
UNDERSTANDS FULL IMPACT.
I THINK THEY UNDERSTAND PRICES
WILL COME.
I THINK THEY UNDERSTAND THERE
ARE A LOT MORE JOBS COMING IN
FOR THIS THAN THERE WILL BE.
THAT MIGHT BE A DISAPPOINTMENT.
NEIL: WE'RE LARGELY A SERVICE
ECONOMY, RIGHT.
>> RIGHT.
NEIL: WHERE IS OUR ANVIL HERE?
>> WE BOUGHT $505 BILLION WORTH
OF STUFF FROM CHINA LAST YEAR.
NEIL: RIGHT.
>> FOR TWO THINGS.
YOU HAVE A GUY WHO CROWNED
HIMSELF EMPEROR OVER THERE.
YOU'RE TRYING TO CREATE A
DOMESTIC ECONOMY.
HE IS ON FRAGILE -- THEIR DEBT,
250% OF GDP.
HE IS ALSO WALKING A VERY
FRAGILE LINE IS.
NEIL: XI XINPING IS?
>> RIGHT.
YOU HOPE IT DOESN'T COME TO
THAT.
CHINA HAS ROOM TO MAKE
CONCESSIONS.
IF THEY'RE SMART THEY WILL DO
IT.
EVERYONE WILL FIND A WAY TO DO
IT, SAVE FACE WITH THE
RESPECTIVE COUNTRIES AND KEEP
MOVING.
>> YOU MAKE A GREAT POINT.
WE'RE A SERVICE COUNTRY.
DO WE WANT TO BE A
GOODS-PRODUCES COUNTRY AGAIN?
A LOT OF PEOPLE THAT I IS MOVING
BARK WARDS.
WHEN YOU LOOK AT THE TRADE
DEFICIT YOU SHOULD LOOK AT
SERVICES NOT JUST GOODS AND THAT
IS SOMETHING THE PRESIDENT --
NEIL: THERE IS A LOT WHAT
PRESIDENT SAYS HERE.
SOUTH KOREAN WASHER MAKERS WERE
TARGETED, SOME DID RAISE THEIR
PRICES BUT NOT NEARLY BY THE
AMOUNT YOU WOULD THINK TO
COMPENSATE FOR SO-CALLED TARIFF,
THAT THEY DO PLAY AROUND THIS
FAST AND LOOSE.
IS THIS SOLUTION?
THAT IS THE ISSUE.
>> I'VE NEVER BEEN A BIG FAN OF
TARIFFS BUT I DON'T KNOW WHAT
THE SOLUTION IS THAT WILL GET
PEOPLE'S ATTENTION.
NEIL: DO YOU BUY THE ARGUMENT
WHEN YOU READ THE FOREIGN PRESS
AS I DO, THE ENGLISH VERSION AT
LEAST.
ONE OUT OF MILAN I GET.
MY ITALIAN IS PRETTY GOOD.
THEY ARE JUST APOPLECTIC.
>> YEAH.
NEIL: THEY ARE SAYING, YOU KNOW,
THEY READILY ACKNOWLEDGE THEY DO
PROTECT THEIR INDUSTRIES BUT NOT
NEARLY TO THE EXTENT THAT IT
DESERVES THIS RESPONSE.
>> LOOK I'M NOT AS APOPLECTIC AS
THESE FOLKS ARE.
THESE ARE THE SAME FOLKS, BY THE
WAY IF THE PRESIDENT RUN OUR
ECONOMY WOULD BE IN SHAMBLES.
NEIL: YOU'RE RIGHT.
>> THERE IS LEVEL WE NEED TO
LOOK AT BECAUSE I'M IN THE SURE,
YES HE IS TALKING ABOUT
$60 BILLION.
YES HE IS DOING IT BY FRIDAY.
IS THIS JUST A STRATEGY TO GET
SOME THINGS DONE, NOT ALL OF
THIS DONE?
WOULD I DO THAT MYSELF?
>> THAT IS THE BILLION DOLLAR