GOING
GOING TO
GOING TO OUR FORMERS BECAUSE CHINA WILL BE TO RETALIATING
RAPIDLY TO A CE4@RTAIN EXTENT
AGAINST OUR FARMERS.
>> WHAT DOES ALL OF THIS HAVE
TO D4@O WITH YOU?, SAY AN
ADDITIONAL 25 PERCENT 4@TARIFF4
WOULD COST A FAMILY OF FOUR AN
EXTRA $500 OR SO ON JUST
CLOTHING AND FOOTWEAR ALONE.
THE FOOTWEAR DISTRIBUTORS AND
RETAILERS OF AMERICA WROTE THE
NUMBERS DOWN THIS WAY.
RIGHT NOW YOU MIGHT PAY $66.74
FOR A PAIR OF BOOTS MADE IN
CHINA.
CHINA.
CHINA. WHEN THOSE VERY SAME BOOTS WERE
SHIPPED TO THE U.S., THE SHOE
COMPANY HERE PAID ONLY $16.18
FOR EACH PAIR, BUT YOU HAVE TO
ADD THE CURRENT DUTY RATES OR
TARIFF OF $6.07 TO THAT PRICE
OF THE BOOT.
PRESIDENT COMES 25 PERCENT WILL
DRIVE THE COST UP EVEN HIGHER,
THE PRICE FOR BOOTS MADE IN
CHINA NOW GOES UP BY $10.11,
BUT WE ARE STILL NOT DONE.
DON'T FORGET THE STANDARD
MARKUP FROM WHOLESALE TO RETAIL@
IT'S USUALLY THREE TIMES THE 4@
IMPORT PRICE.
IMPORT PRICE. SO YOU'RE NOW PAYING $97.08.
THAT IS AN INCREASE OF ABOUT $30
OVER WHAT YOU 4@HAD 4@BE4@EN PA
FARMERS WILL BE ONE OF THE
HARDEST HIT GROUPS IN THE U.S..
PRESIDENT TRUMP SAYS HE'S
LOOKING AT ROUGHLY 15 BILLION
DOLLARS IN SUBSIDIES FOR
FARMERS.
FARMERS.
FARMERS. MY FIRST QUESTION TO THIS
PROFESSOR, CHINA IS NOT AN
INNOCENT VICTIM HERE, THEY'RE
NOT THE GOOD GUYS, RIGHT?
>> THEY'VE CERTAINLY COMMITTED
SOME, THEY CERTAINLY HAVEN'T
BEEN PLAYING FAIR.
>> THE PRESIDENT WOULD HAVE US
BELIEVE THAT TARIFFS AREN'T
SUCH A BAD THING, YOUR TAKE?
>> I AM NOT A FAN OF TARIFFS.
WHAT TARIFFS DO AS THEY RAISE
THE PRICE OF GOODS AS WE TALKED
ABOUT EARLIER AND IT'S A
QUESTION OF WHO WAS ULTIMATELY
PAYING FOR THAT4@ AND THAT IS A
COMPLICATED EQUATION, IT
DEPENDS ON THE GOOD AND A LOT
OF THINGS BUT IT CREATES
DISTORTIONS AND CREATES
4@INEFFICIENCIES.
4@INEFFICIENCIES. >>4@ FOR THE VIEWERS OUT HERE,
THE SMALL GUY, MAN AND 4@WOMAN.
THIS IS GOING TO COST THEM.
>> SURE, IT'S GOING TO COST
THEM.
THEM.
THEM. >>
THEM. >> HOW SO?
>>4@4@ A TARIFF IS A TAX SO WE
LOWERED TAXES IN ORDER TO GET
MORE MONEY IN YOUR POCKET AND
NOW WE'VE RAISED TAXES AND IT'S
GOING TO COST YOU MORE TO BUY
THINGS.
THINGS.
THINGS. IT'S JUST A QUESTION OF WHEN
YOU RAISE THE TAXES, WHO IS
ULTIMATELY GOING TO PAY FOR IT?
IS IT GOING TO BE THE $97 YOU 4@
HAVE TO PAY AS OPPOSED TO $72
BEFORE4@, ROUGHLY 75 ROUGHLY 25
PERCENT OR ARE THEY JUST GOING
TO TAKE A LOWER PROFIT?
>>4@ WHAT ARE WE GOING TO DO WI
THAT MONEY, THE PRESENCE AND
HE'S GOING TO TAKE SOME OF IT
TO HELP THE FARMERS THAT HAVE
BEEN HURT BY THE TARIFFS. 4@
>> IT'S UP TO THE GOVERNMENT
WHAT 4@THEY DO WITH TAX REVENUE
BUT ULTIMATELY WHAT IF YOU DO
THAT IS WHAT YOU'RE DOING IS 4@
YOU'RE TAKING THE MONEY, 4@YOU
ARE PAYING FOR IT WHEN THEY
GIVE THE FARMERS THE MONEY, YOU
ARE PAYING THE FARMER.
>> LET'S TALK ABOUT 4@THE FARME.
I'M FROM KENTUCKY, A LOT OF
FARMERS THERE.
FARMERS THERE. WE KE4@EP HEARING ABOUT SOYBEAN
HOW ARE THE FARMERS BEING HURT
BY 4@THESE TARIFFS?
>> THE BIGGEST ISSUE I THINK IS
WHEN CHINA RETALIATES4@ AND THE
PUT TARIFFS THEMSELVES ON AND
THEY REDIRECT TRADE ELSEWHERE
AND SO OUR EXPORTS OF SOYBEANS
OR WHAT HAVE YOU TO CHINA HAS
BEEN CURTAILED 4@TO NEXT TO
NOTHING SO THEY HAVE LOST A
MAJOR 4@EXPORT4@ MARKET.4@
THE PRICE THAT THEY ARE GETTING
MAJOR 4@EXPORT4@ MARKET.4@ THE PRICE THAT THEY ARE GETTING@
IS GOING DOWN SO THEY'VE BEEN
HURT BADLY.
HURT BADLY. >> AND THIS IS PLANTING SEASON
RIGHT NOW FOR THEM, RIGHT?
>> YES, SO IT'S VERY
UNPREDICTABLE IN TERMS OF WHAT
THEY CAN 4@INVEST IN WHAT THEY
CAN EXPECT TO GET IN RETURN.
>> HOW LONG CAN WE KEEP THIS
UP?
UP?
UP? HOW
UP? HOW LONG CAN THIS TRADE 4@WAR 4
ON?
ON?
ON? THE
ON? THE PRESIDENT WOULD4@ INDICATE
THAT HE IS COMFORTABLE WITH THE
TARIFFS.
TARIFFS.
TARIFFS. >> WE'VE HAD TARIFF4@S ALL
THROUGHOUT THE 1930S, I'M SURE
WE CAN KEEP TARIFFS AS LONG AS
THEY WANT TO KEEP THEM AS IT'S
POLITICALLY POPULAR.
POLITICALLY POPULAR. IT'S NOT AN ECONOMIC QUESTION
AT THE POLITICAL QUESTION.
>> WHAT'S THE UPSIDE TO4@ TARIF@
>> THERE ARE WINNERS IN THE
TARIFF WAR, 4@WHEN YOU PUT
TARIFFS ON THE STEEL INDUSTRY,
ON IMPORT STEEL,4@
>> CHINA STILL COMING IN HERE.
IT'S GOING TO COST MORE.
>> SO STEEL MANUFACTURING COULD
BE THE WINNER.4@
WINNERS IN TERMS OF INCREASED
4@
4@,
4@, MAYBE
4@, MAYBE INCREA EMPLOYMENT AND OUTPUT AND WE'VE
SEEN THAT, THE PROBLEM IS THE
DOWNSTREAM INDUSTRIES, THOSE
PEOPLE BUYING STEEL ARE BUYING
IT AT A HIGHER PRICE.
SO THE PROBLEM IS, THE REASON
WHY ECONOMIST LIKE MYSELF ARE
SO AGAINST IT IS 4@YOU ARE
PICKING WINNERS AND LOSERS.
DISTORTING THE ECONOMY AND
MAKING IT MORE INEFFICIENT AND
PICKING