TELECOM, OUR TOP STORY IS JUST
THAT.
U.S.-CHINA TRADE, THE PRESIDENT
SIGNED THE EXECUTIVE ORDER
YESTERDAY, BANNING TELECOM GEAR
FROM FOREIGN ADVERSARIES,
TARGETING HUAWEI AND ZTE.
THIS AS THE U.S. SAYS TRADE
NEGOTIATIONS WITH CHINA ARE
LIKELY TO RESUME SOON.
CHINA REACTING TO THE TRADE
DISPUTE, CUTTING U.S. TREASURY
HOLDINGS TO THE LOWEST LEVEL
SINCE 2017.
JOINING ME RIGHT NOW IS COMMERCE
SECRETARY WILBUR ROSS.
THANK YOU FOR JOINING US.
>> GOOD TO BE ON.
MARIA: ON AN IMPORTANT DAY, THE
WHITE HOUSE PUTTING HUAWEI ON
NOTICE.
TELL US THE RISKS AROUND HUAWEI
TELECOM.
>> WELL, AS YOU KNOW, WE'RE
MOVING INTO A 5G ENVIRONMENT
WHICH WILL CONNECT EVERYTHING TO
EVERYTHING, THE SO-CALLED
INTERNET OF THINGS.
SO AS EVERYTHING BECOMES
INTERCONNECTED, IT CREATES MORE
RISK BECAUSE IF SOMEONE DOES
SOMETHING UNTOWARD TO THOSE
SYSTEMS, IT COULD DISRUPT
EVERYTHING.
MARIA: SO THERE IS HUAWEI IN
THIS COUNTRY ALREADY.
>> YES, MANY OF THE RURAL
TELECOM CARRIERS ARE ALREADY
USING HUAWEI IN THE 4G
ENVIRONMENT.
AND IN ORDER NOT TO HAVE THEM
HAVE TO RIP EVERYTHING OUT,
WE'LL BE DEALING WITH THAT
SEPARATELY SO THAT THEY WON'T
HAVE TO RIP EVERYTHING OUT.
MARIA: THATS WAS ONE OF THE
ISSUES THAT CAME UP WITH
SECRETARY POMPEO WHEN HE SPOKE
WITH OUR FRIENDS IN EUROPE.
THEY ALREADY HAVE A HUAWEI
INFRASTRUCTURE IN PLACE, SAME
WITH SEVERAL COUNTRIES IN
AFRICA.
WHAT'S THE ADMINISTRATION'S PLAN
IN DEALING WITH OUR FRIENDS
ACROSS THE WORLD, KNOWING THAT
THEY'VE GOT HUAWEI TELECOM AND
PROBABLY WILL BE SPIED ON OR
ESPIONAGE.
>> FIRST OF ALL, WE CAN'T FORCE
COUNTRIES TO REMOVE THINGS FROM
THEIR SYSTEM.
WE CAN ONLY ADVISE THEM WHAT WE
THINK ARE THE DANGERS.
WHAT WE ARE DOING WITH THE ORDER
THAT THE COMMERCE DEPARTMENT PUT
INTO EFFECT YESTERDAY, THEEN YOU
AT THIS AT THIS
EN THIS AT THIS
ENTIHIS AT THIS
ENTITYS AT THIS
ENTITYLIAT THIS
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NOT BE USED IN A WAY THAT'S
ADVERSE.
THAT'S THE PURPOSE OF THAT.
MARIA: LET ME SWITCH GEARS, ASK
YOU ABOUT TARIFFS, BECAUSE
OBVIOUSLY THIS IS FRONT AND
CENTER RIGHT NOW.
SECRETARY MNUCHIN SAID THAT THE
ADMINISTRATION IS LOOKING AT
DELAYING TARIFFS ON STEEL AND
FOR MEXICO AND CANADA.
WHERE DO YOU STAND ON THAT?
>> IT'S NOT A QUESTION OF
DELAYING.
THE TARIFFS ARE IN EFFECT WITH
MEXICO AND CANADA ON STEEL AND
ALUMINUM AND THEY HAVE BEEN FOR
OVER A YEAR NOW.
SO THE QUESTION IS, IS THERE A
SUBSTITUTE FOR THE ACTUAL
TARIFFS THAT WILL ACHIEVE THE
SAME END RESULT OF PROTECTING
OUR NATIONAL SECURITY AND
CONTINUING THE TREMENDOUS BOOM
IN THOSE INDUSTRIES IN THIS
COUNTRY.
MARIA: IS THERE?
>> WELL, WE'LL FIND OUT.
WE'RE IN NEGOTIATIONS WITH
MEXICO AND CANADA.
THERE ARE PLENTY OF WAYS THAT WE
COULD DO IT, OTHER THAN THE
EXACT ONE THAT WE HAD.
WHAT THE PRESIDENT IS NOT
PREPARED TO DO IS JUST GIVE BACK
ALL THE BENEFITS TO AMERICAN
STEEL AND AMERICAN ALUMINUM.
AS YOU KNOW, IT'S ONE OF THE
GREAT SUCCESS STORIES OF THE
ADMINISTRATION.
MARIA: BUT DO YOU NEED TO LIFT
THOSE TARIFFS IN ORDER TO GET
THE USMCA DEAL PASSED AND
CODIFIED?
>> THE MEXICAN GOVERNMENT
ALREADY APPROVED THE LABOR PARTS
OF IT, WHICH FROM THEIR POINT OF
VIEW WERE THE MOST DIFFICULT
PARTS.
THEY DID A THAT, KNOWING THAT
THE TARIFFS WERE IN EFFECT.
AND ACTUALLY THEY SIGNED, AS DID
CANADA, THE USMCA ALSO KNOWING
THAT THE TARIFFS WERE IN EFFECT.
SO WE WILL BE WILLING TO TRY TO
ACCOMMODATE THEM, PROVIDED WE
ACHIEVE A SIMILAR END RESULT.
MARIA: THERE IS A DEADLINE
COMING UP IN TERMS OF AUTO
TARIFFS AND THIS REALLY IS
TARGETING JAPAN AND EUROPE.
ARE YOU GOING TO DELAY THOSE
TARIFFS?
>> WELL, THE AUTO TARIFF
DECISION WILL BE MADE ON THE
18th OF MAY, WHICH IS OVER
VERY SHORTLY NOW.
THE PRESIDENT CAN DO ANY OF
SEVERAL THINGS, ONE, HE COULD
IMPOSE THEM ON SOME OR ALL OF
THE COUNTRIES.
HE COULD IMPOSE A VARYING
AMOUNT.
HE COULD DECIDE A THAT WE MADE
ENOUGH PROGRESS IN OUR DIRECT
NEGOTIATIONS WITH THE VARIOUS
AUTOMAKERS ABROAD.
HE COULD DECIDE TO LET THOSE
NEGOTIATIONS CONTINUE FOR UP TO
180 DAYS.
MARIA: I GUESS WHAT I'M ASKING,
MR. SECRETARY, IS IS THERE A
REASSESSING GOING ON, ABOUT
THESE TARIFFS, ABOUT PUTTING
TARIFFS ON AUTOS FROM EUROPE AND
JAPAN, ABOUT TARIFFS THAT ARE
ALREADY IN PLACE, MEXICO AND
CANADA, GIVEN THE FIGHT WITH
CHINA?
>> WELL, THOSE ARE THREE
SEPARATE ISSUES.
THE AUTO THING IS VERY IMPORTANT
BECAUSE IF YOU LOOK AT OUR TRADE
DEFICIT, ABOUT HALF OF IT IS
GEOGRAPHIC IN NATURE, THAT'S
CALLED CHINA.
THE OTHER HALF IS A PRODUCT BY
NATURE, THAT'S CALLED
AUTOMOTIVE.
IF WE DON'T DEAL WITH BOTH CHINA
AND AUTOMOTIVE, WE'RE NOT GOING
TO SOLVE OUR TRADE DEFICIT.
MARIA: BUT IT'S MORE THAN
TRADE, RIGHT?
YOU'RE TALKING ABOUT NATIONAL
SECURITY ISSUES AROUND CHINA.
>> HUAWEI IS A WHOLE DIFFERENT
SITUATION.
NATIONAL SECURITY IS DIFFERENT.
BUT YOU WERE ASKING ABOUT THE
TRADE PART.
AND THE TRADE PART HAS THOSE TWO
MAIN COMPONENTS.
MARIA: I WANT TO ASK
SPECIFICALLY ABOUT THE AUTO
TARIFFS BECAUSE WE HAVE AN
ECONOMY THAT'S OBVIOUSLY
BOOMING, THREE AND A QUARTER
PERCENT GROWTH IN THE FIRST
QUARTER.
A LOT OF PEOPLE ARE WORRIED THAT
THE TARIFFS ARE GOING TO CUT
INTO GROWTH THAT WAS IMPLEMENTED
AS A RESULT OF YOUR
ADMINISTRATION'S POLICIES.
>> WELL, REMEMBER THEY WERE
SCREAMING THE SAME THING WHEN WE
PUT THE L STEEL AND ALUMINUM IN
AND WHAT HAPPENED.
WHAT HAPPENED WAS STEEL AND
ALUMINUM GOT REVIVED.
THOSE INDUSTRIES ARE BOOMING.
STEEL ALONE HAS GOTTEN
$13 BILLION OF CAPITAL
EXPENDITURES AS A RESULT AND THE
EMPLOYMENT BOTH IN STEEL AND
ALUMINUM THEMSELVES AND THE
DOWNSTREAM INDUSTRIES HAS GONE
UP.
DID NOT GO DOWN.
IT WENT UP.
SO THESE GLOOM AND DOOM THINGS
ARE BY PEOPLE WHO ARE IDEA
IDEALOGICALLY OPPOSED TO US
TAKING A STRONG STAND TO DEFEND
AMERICA.
MARIA: I UNDERSTAND.
THE SITUATION WITH CHINA HAS
WORSENED.
>> I DON'T THINK IT'S WORSENED.
MARIA: THEY RENEGED ON
EVERYTHING.
>> WE MADE A LOT OF PROGRESS IN
THE NEGOTIATIONSES.
THEY THEN FOR WHATEVER REASON
DECIDED TO BACKTRACK.
WE'VE THAT, WE'RE FARTHER ALONG
THAN THEY WERE BEFORE.
AND MEANWHILE, THE PRESIDENT
CONVINCED THEM -- THEY BOUGHT
MORE SOYBEANS DURING THE
NEGOTIATING PERIOD, THEY BOUGHT
A LOT OF THINGS.
SO I WOULD NOT SAY THAT WE'RE IN
WORSE SHAPE.
WHERE WE ARE IS DOWN TO THE REAL
CORE OF IT.
ARE WE GOING TO HAVE STRUCTURAL
CHANGE IN THE CHINESE ECONOMY OR
NOT?
IF NOT, WE'RE JUST NOT GOING TO
DO IT.
IT'S NOT ENOUGH THAT THEY CAN
BUY US OFF WITH A FEW MORE
SOYBEANS, LITTLE BIT MORE LNG, A
FEW MORE BOEING PLANES.
WE NEED STRUCTURAL CHANGE.
MARIA: THEY WOULD NOT AGREE TO
MAKING IT A LAW, CODIFYING A
LAW, PUTTING IT INTO CHINESE LAW
THAT STEALING I.P. IS AGAINST
THE LAW.
THEY WOULDN'T MAKE THAT CHANGE.
>> WELL, THERE WAS A WHOLE
SERIES ABOUT SIX BIG STRUCTURAL
CHANGES, THAT'S ONE SET OF
ISSUES.
THEN THERE'S ANOTHER WHOLE SET
OF ISSUES ENFORCEMENT AND
PENALTIES.
BECAUSE IF YOU JUST HAVE A
WRITTEN AGREEMENT, WHICH IS THE
WAY OUR TRADE AGREEMENTS USED TO
BE, BUT NOT A REAL ENFORCEMENT
MECHANISM, YOU DON'T HAVE A VERY
USEFUL DOCUMENT.
MARIA: RIGHT.
SO GIVEN THE FIGHT WITH CHINA,
LET ME ASK YOU AGAIN ABOUT ALL
OF THESE TARIFFS.
TARIFFS ON CANADA AND MEXICO, DO
YOU THINK THEY GO AWAY NOW THAT
WE NEED USMCA PASSED?
>> YOU'RE CONSISTENT LATE
>> YOU'RE CONFLSTENT LATE
>> YOU'RE CONFLATENT LATE
>> YOU'RE CONFLATINT LATE
>> YOU'RE CONFLATING LATE
>> YOU'RE CONFLATING AATE
>> YOU'RE CONFLATING A CE
>> YOU'RE CONFLATING A COUPLE
ISSUES.
WE'RE PREPARED TO TALK ABOUT
OTHER WAYS TO PROTECT THE
AMERICAN STEEL AND ALUMINUM
INDUSTRIES.
THERE'S LOTS OF DIFFERENT WAYS
TO SLICE THAT.
THEY NEED TO PROTECT THEIR
BORDERS AGAINST TRANS SHIPMENT.
THAT'S ONE ISSUE.
ANOTHER ISSUE IS WE DON'T WANT
TO DEAL WITH A SITUATION WHERE
OUR ACTIONS AGAINST STEEL AND
ALUMINUM GLOBALLY SUDDENLY
RESULT IN EXCESS CAPACITY IN
CANADA OR MEXICO.
THAT DOESN'T SOLVE ANYTHING.
WE NEED PROTECTION AGAINST THOSE
CERTAIN THINGS.
TARIFFS ARE ONE WAY TO GET IT.
THERE ARE OTHER WAYS TO GET IT.
THE END RESULT MUST BE THE SAME.
THE FORM CAN CHANGE.
MARIA: ON THE AUTO TARIFFS,
SHOULD WE EXPECT A DELAY IN
PUTTING ANY TARIFFS IN PLACE ON
AUTOS COMING FROM JAPAN AND
EUROPE?
>> WELL, AS I SAID, THE
PRESIDENT HAS A WIDE RANGE OF
OPTIONS WHICH HE WILL DECIDE ON
BY THE 18th.
THE REASON FOR THE 18th,
THAT'S THE 270 DAYS FROM WHEN I
RENDERED TO HIM THE REPORT.
BUT HE HAS A RANG OF
ALTERNATIVES.
HE COULD DELAY THEM OR NOT JUST
DELAY THEM, HE COULD SAY THE
NEGOTIATIONS THAT AMBASSADOR
LIGHTHIZER, LARRY KUDLOW AND I
HAVE HAD WITH THE EUROPEAN,
KOREAN AND JAPANESE CAR PEOPLE,
HE COULD ALLOW MORE TIME FOR
THAT.