I'M DAVID ASMAN.
JOINING ME IS THE PANEL TODAY.
THE U.S. TRADE REPRESENTATIVES
OFFICE HAS FILED THE PAPERWORK
TO FORMALLY RAISE TARIFFS ON
CHINESE IMPORTS, BUT THE WHITE
HOUSE PUT OUT SOME POSITIVE NEWS
THIS MORNING, AND THAT LED TO A
MARKET POP.
LISTEN.
>> LOOK WE'VE GOT AN INDICATION
THAT THEY WANT TO MAKE A DEAL.
OUR TEAMS ARE IN CONTINUED
NEGOTIATIONS.
THEY ARE GOING TO SIT DOWN
TOMORROW.
WE WILL SEE WHAT HAPPENS FROM
THERE.
DAVID: LET'S BRING IN FORMER
TRUMP CAMPAIGN TRADE AND JOBS
ADVISOR CURTIS ELLIS.
CURTIS, GOOD TO SEE YOU.
SO FAR, THE CHINA TRADE FIGHT
HASN'T REALLY AFFECTED MOST
AMERICANS.
THEY HAVEN'T FELT IT.
WILL THAT CHANGE FRIDAY IF THE
NEW TARIFFS KICK IN?
>> I SAY AMERICANS HAVE FELT IT.
WE'RE SEEING THE 13TH STRAIGHT
MONTH OF MORE JOB OPENINGS AND
PEOPLE TO FILL THEM.
DAVID: DO YOU THINK THAT'S
BECAUSE OF THE TRADE TARIFFS?
>> ABSOLUTELY.
CANDIDATE TRUMP SAID HE WOULD
PUT IN PLACE A PROGRAM OF TAX
REFORM, TRADE REFORM, REGULATORY
REFORM AND ENERGY REFORM THAT
WOULD MAKE THIS THE BEST PLACE
ON EARTH TO LIVE, WORK, INVEST
AND DO BUSINESS, AND IT IS
WORKING.
>> WHAT ABOUT CHINA TARIFFS?
THAT DOESN'T EQUATE --
>> THAT'S RIGHT.
BUSINESSES ARE MOVING OUT OF
CHINA.
THEY ARE MOVING OUT OF CHINA.
AS THEY MOVE CLOSER TO AMERICA,
EVEN THE FEED STOCKS AND THE SUB
COMPONENTS THAT GO INTO THE
FINISHED PRODUCTS ARE MORE
LIKELY TO --
>> WHAT ABOUT THE RETAILERS?
WHAT ABOUT THE CONSUMERS?
FURNITURE PRICES ARE GOING UP.
LUGGAGE IS COSTING MORE.
TELEVISIONS, ETC., ETC., DOESN'T
THAT HURT THE CONSUMER?
DON'T WE EVENTUALLY PAY THE
TARIFFS AT THE END?
>> THE FACT OF THE MATTER IS
INFLATION IS RELATIVELY FLAT.
THAT'S WHAT ALL THE EVIDENCE
SAYS.
IN FACT, THERE'S PLENTY OF BODY
OF ECONOMIC EVIDENCE THAT SHOWS
THAT INCOMES DUE TO OUTSOURCING,
INCOMES FALL EVEN FASTER THAN
THE -- MORE THAN OFFSETTING ANY
PUNITIVE BENEFIT OF LOWER
CONSUMER PRICES FROM CHEAP
IMPORTS.
>> THAT'S COMPLETELY NOT TRUE.
THE EVIDENCE SHOWS WE NOW HAVE
MULTIPLE STUDIES ABOUT THE
TARIFFS THAT THE TRUMP
ADMINISTRATION PUT INTO EFFECT.
NUMBER ONE, THEY WERE BORN 99%
BY THE AMERICAN CONSUMERS.
NUMBER TWO, THEY COST THE
AMERICAN TAXPAYER MORE THAN
$900,000 PER JOB SAVED.
NUMBER THREE, AMERICAN
BUSINESSES ACROSS MULTIPLE
MANUFACTURING INDUSTRIES HAVE
SAID THAT THE TAX BEING PUT ON
THEM AND THE COST ASSOCIATED
WITH THESE TARIFFS ARE LEADING
THEM TO CLOSE DOWN THEIR
OPERATIONS IN THE U.S. AND MOVE
THEM TO MEXICO AND TO CHINA.
-- [INAUDIBLE] -- COMPANY
ANNOUNCED THAT TODAY.
>> AUSTIN YOU HAVE YOUR
EVIDENCE.
I HAVE MINE.
THERE'S PLENTY OF EVIDENCE TO
SHOW WHEN AMERICANS DON'T HAVE
ANY MONEY, THEY DON'T CARE HOW
CHEAP THE CONSUMER GOODS ARE.
THE GOAL HERE IS TO BRING JOBS
BACK TO AMERICA.
BRING BACK TO THE WESTERN
HEMISPHERE.
AND WE KNOW --
[TALKING OVER EACH OTHER]
>> WHAT ARE YOU TALKING ABOUT?
THESE TARIFFS ARE A TAX ON
AMERICAN CONSUMERS.
>> KEEP REPEATING THAT, AUSTIN.
IT DOES NOT MAKE IT TRUE.
THE FACT OF THE MATTER IS THE
TARIFF DUTY IS PLACED ON THE
FIRST PRICE IT IS PAID TO A
FACTORY IN CHINA.
NOT ON THE WHOLESALE PRICE, NOT
ON THE PRICE PAID TO MIDDLEMEN
IN HONG KONG.
IF ANYBODY WANTS TO EAT THE 25%
DUTY, IT WILL BE THAT MIDDLEMAN
IN HONG KONG WHO DOUBLES OR
TRIPLES THE PRICE HE PAYS TO A
FACTORY IN CHINA.
THAT'S GOING TO BE THE FIRST
PLACE --
>> GUYS, FARMERS AROUND THE
UNITED STATES ARE UP IN ARMS IN
OUTRAGE OVER THESE TARIFFS
BECAUSE FARM INCOME IS --
>> -- AND GOING BANKRUPT.
>> -- THERE'S NO SENSE IN WHICH
TARIFFS ARE GOOD FOR THE U.S.
ECONOMY.
>> THE ECONOMY IS DOING QUITE
WELL.
[TALKING OVER EACH OTHER]
>> FIRST OF ALL, LET'S GET
THINGS STRAIGHT.
TARIFF IS A SALES TAX.
25% TAX ON AUTOS.
25% TAX ON ANYTHING ELSE.
THAT IS A TAX.
AND ULTIMATELY THE CONSUMER
BEARS IT.
TWO, IN TERMS OF THE BOOMING
ECONOMY, THAT'S DEREGULATION AND
TAX CUTS.
WE HAD A BOOMING ECONOMY IN
1929, IF YOU WANT TO GO BACK IN
HISTORY.
AND WE PUT IN THE TARIFF, AND
GUESS WHAT HAPPENED?
THE WORLD TRADING SYSTEM FELL
APART AND WE WENT INTO A DOWN
SPIN.
SO LET'S KEEP THE THINGS THAT
ARE WORKING, AND IN TERMS OF
CHINA TRADE ABUSES, YEAH,
THEY'VE BEEN ENGAGED IN THEM,
BUT GO AFTER THE PERPETRATORS,
LIKE THAT CFO OF HUAWEI WHO IS
GOING TO END UP IN JAIL; RIGHTLY
SO.
>> THERE ARE PLENTY OF
PERPETRATORS THAT CAN GO IN
JAIL.
I DON'T WANT TO GET INTO A TIME
LINE, ON THAT TARIFF, BUT THE
CRASH CAME BEFORE THAT TARIFF
WENT INTO EFFECT.
>> IT MADE IT WORSE.
>> -- 1929 WHEN MARKETS
ANTICIPATE THE FUTURE, AND WHEN
THOSE HORRIFIC TARIFFS STARTED
TO RING UP THEIR UGLY HEAD IN
THE FALL OF 29 THAT'S WHEN THE
MARKET CRASHED.
>> SOMEHOW CHINA HAS DONE GREAT
WITH THE HIGHEST TARIFFS ON
EARTH.
TARIFFS ARE A POISON THAT ALWAYS
KILLS THE ECONOMIC GROWTH, TELL
THAT TO THE CHINESE.
DAVID: HOLD ON TO A SECOND.
I WANT TO SAY SOMETHING IN
ACCORDANCE WITH WHAT CURTIS IS
SAYING.
THIS IS NOT JUST A SHORT-TERM
BOOM THAT WE'RE IN.
THIS IS THE 13TH MONTH WHERE WE
HAVE MORE JOBS THAN JOB SEEKERS.
I MEAN, THAT'S AN EXTRAORDINARY
RECORD.
WE ARE ON -- THIS IS NOT SORT OF
A TEMPORARY BOOM.
THIS IS A LONG-TERM JOB
GROWTH --
[TALKING OVER EACH OTHER]
DAVID: HOLD ON, GUYS.
WE HAVE TO HEAR ONE PERSON AT A
TIME SO WE CAN HEAR WHAT YOU'RE
SAYING.
GO AHEAD, AUSTIN.
>> OKAY.
WE'VE HAD 122 MONTHS, I BELIEVE,
OF PRIVATE SECTOR JOB GROWTH,
THE LONGEST ON RECORD.
THAT'S FABULOUS.
CAN ONE OF YOU EXPLAIN TO ME
WHAT IS GOING THROUGH THE
PRESIDENT'S HEAD WHEN YOU HAVE A
GREAT JOBS NUMBER, AND THEN YOU
TURN AROUND AND SAY WE'RE GOING
TO REIGNITE TRADE WAR WITH
CHINA?
DAVID: IT IS VERY SIMPLE AUSTIN.
YOU WANT AN ANSWER.
YOU ASKED THE QUESTION.
DO YOU WANT AN ANSWER TO YOUR
QUESTION?
DO YOU WANT AN ANSWER?
THIS IS THE ANSWER TO YOUR
QUESTION.
HE'S -- I'M ANSWERING YOUR
QUESTION, AUSTIN.
HE'S A NEGOTIATOR.
HE TOOK THAT AS A POINT OF
STRENGTH TO BRING TO THE
NEGOTIATIONS.
LORD KNOWS IF WE'RE GOING TO
HAVE THESE RAISE IN SANCTIONS
TOMORROW OR FRIDAY.
THEY MAY NOT HAPPEN, IF THEY
COME TO SOME DEAL, BUT HE
FIGURED HE WOULD ARGUE FROM A
POINT OF STRENGTH.
THAT'S WHAT YOU DO.
HE GOT GREAT NUMBERS.
AND HE TURNED THE SCREWS.
>> OKAY.
>> ON US.
WHY DID HE DO THAT?
>> BECAUSE CHINA'S NEVER OPENED
ITS MARKET AS A PROMISE.
IT'S NEVER LIVED UP TO
AGREEMENTS IT AGREED TO.
WHAT IS HE SUPPOSED TO DO?
SIT THERE AND LICK THEIR BOOTS
THE WAY THE OBAMA ADMINISTRATION
DID?
THE WAY EVERY PREVIOUS
ADMINISTRATION DID?
>> LET ME EXPLAIN IT FROM THE
CHINESE SIDE.
HOW ABOUT THAT, OKAY?
>> PLEASE.
>> ASIA PACIFIC AND AROUND D.C.,
THIS IS WHAT HAPPENS, AS I
MENTIONED TO A LOT OF PEOPLE,
CHINA IS NOT A ONE MAN
DICTATORSHIP.
YOU ALSO HAVE TO GET CONSENSUS
ACROSS THE AISLE AS WELL.
THERE'S A VERY STRONG, VERY
POWERFUL IN PLACE.
NOT ALL READ THE 150 PAGE
REPORT, THAT 150 PAGE OFFER.
WHEN THEY WENT THROUGH THE
DETAILS, A LOT OF THEM,
ESPECIALLY HARDLINERS WERE A BIT
SHOCKED AT SOME OF THE
AGREEMENTS.
ALSO HOW DO YOU VERIFY
TECHNOLOGY, FORCE TECHNOLOGY
THEREFORE, IP THEFT AND THE
LIKE?
ALSO BY THE WAY KEEPING THOSE
ENFORCEMENT MECHANISMS IN PLACE
WHICH LOSES CHINA A LOT OF
FAITH, SO THE U.S. CAN SAY WE
WILL KEEP THE TARIFFS ON UNTIL
YOU PROMISE AND KEEP YOUR
PROMISES.
I THINK THAT WAS VERY HARD --
DAVID: IN OTHER WORDS, PEOPLE
WERE PUSHING BACK TO THESE
AGREEMENTS.
THEY DIDN'T LIKE WHAT THEY SAW
ON PAPER?