THIS MORNING DONALD TRUMP TOOK A BREAK FROM TWEETING ABOUT
MS-13 INSTEAD TO MAKE AN ANNOUNCEMENT ON THE NEXT
POSSIBLE FRONT IN THE INTERNATIONAL TRADE WAR HE HAS
BEEN DEVELOPING.
HERE IS WHAT HE SAID --
SO YES, A 20% TARIFF IS A SIGNIFICANT EXTRA TARIFF.
IF YOU
BOUGHT A CAR RECENTLY, IMAGINE 20% EXTRA.
IT'S LIKE GOING TO
THE DEALERSHIP TWICE.
SO THAT'S PRETTY SIGNIFICANT THERE.
NOW,
THERE IS A DISPARITY BETWEEN THE LEVEL OF TARIFFS THAT THERE E.U.
HAS AND WE HAVE, THERE ARE TWO SIDES TO THAT RELATIONSHIP --
I DON'T KNOW IF THE 20% WOULD BE ADDED ON TOP OF THE 25%, BUT
IN EITHER CASE IT WOULD SIGNIFICANTLY BLOW PAST EUROPE'S
LEVEL OF TARIFFS RIGHT NOW.
AND COINCIDENTALLY TODAY VOLVO IS
OPENING UP A GIGANTIC NEW PLANT.
PRETTY MUCH EVERYONE IN THE
COUNTRY OTHER THAN DONALD TRUMP KNOWS THIS, BUT INTERNATIONAL
CAR COMPANIES MAKE A TON OF CARS IN THE U.S., SO THEY ARE GOING
TO DO THAT, IT'S EXPECTED THAT IN THE NEXT FEW YEARS THEY WILL
BE PUMPING OUT HUNDREDS OF THOUSANDS OF CARS FROM THIS ONE
PLANT, AND WHILE ANNOUNCING IT, THEY ARE VERY EXCITED ABOUT IT,
THEY ALSO DECIDED TO TALK A BIT ABOUT THE TARIFFS.
IN THE 1800S, ONE FOURTH OF OUR POPULATION LEFT FOR THE
UNITED STATES AND HELPS TO BUILD THIS WONDERFUL COUNTRY, AND WE
REALLY CONTINUE TO DO THAT, SO WE ARE ACTUALLY EMPLOYING
DIRECTLY IN SWEDISH COMPANIES 365,000 AMERICANS.
AND BESIDES
THAT WE ARE ACTUALLY THE 15TH LARGEST INVESTOR IN THE UNITED
STATES.
I HAVE TO BE FRANK, THOUGH, WE ARE A BIT WORRIED
ABOUT THE TRADE AGENDA TODAY THAT WE SEE IN THE UNITED
STATES, AS WE ARE LOOKING TO INVEST MORE IN THE UNITED
STATES, TRADE MORE WITH THE UNITED STATES, WE ARE WORRIED
ABOUT THE STEEL AND ALUMINUM TARIFFS THAT ARE PUT ON THE
EUROPEAN UNION AND OF COURSE EXTREMELY WORRIED WHEN IT COMES
TO POSSIBLE CAR TARIFFS, WHICH I THINK A PLANT LIKE THIS DOES NOT
NEED THAT BECAUSE WE ARE ALL PART OF GLOBAL VALUE CHAINS AND
THAT IS WHAT CREATES THE JOBS WE HAVE TODAY AND THAT'S HOW THE
ECONOMY WORKS.
SO THOSE OF YOU WHO HAVE A POSSIBILITY TO
INFLUENCE, I REALLY HOPE YOU CAN BRING THIS MESSAGE FORWARD
BECAUSE EUROPE AND THE UNITED STATES, WE ARE THE BEST OF
FRIENDS, IF ONE CAN PUT IT SO SIMPLE, IN THE WORLD, AND WE
SHOULD REALLY WORK TOGETHER TO SOLVE THE WORLD'S PROBLEMS, ALSO
ON TRADE ISSUES, SO I READY HOPE WE CAN CONTINUE THAT GOOD
COLLABORATION AND REALLY CREATE BONDS THAT MAKE US STRONGER AND
NOT WEAKER, WHICH I'M A BIT WORRIED WE ARE DOING RIGHT NOW
ON THE TRADE AGENDA.
WE'LL HAVE TO SEE IF HE GETS THAT MESSAGE.
THE WHOLE THING ABOUT TRADE WARS, AND I JUST FAIL TO
UNDERSTAND THE ECONOMIC ARGUMENT FOR THEM, SO THEREFORE WE GO
BACK TO TRUMP IS DOING IT BECAUSE HE CAN, HE WANTS TO, HE
FEELS UPSET ONE DAY AT SOME COUNTRY AND DECIDES HERE, WE'LL
SLAP ON A STEEL AND ALUMINUM TARIFFS, MAYBE WE WILL TAKE IT
OFF OR PUT IT BACK ON, BUT SHE SAYS SWEDISH CARMAKERS EMPLOY
350,000 U.S. WORKERS, THAT MANY U.S. PEOPLE HAVE REAL JOBS
BECAUSE OF THOSE COMPANIES IN OUR COUNTRY.
YOU START SLAPPING
ON EXTRA TARIFFS ON THEIR PRODUCTS THOSE PEOPLE START TO
MAYBE GET 20% REDUCED AS A WORKFORCE.
THIS HAS A LOT OF
TAIL.
AND FROM HIS PERSPECTIVE, GOING BACK TO WHAT SHE SAYS IS
VERY INTERESTING, WEAKENING THESE RELATIONSHIPS, WHEN YOU
START TO HAVE TRADE WARS, WHEN YOU START TO DO TIT FOR TAT, 25%
HERE, 50 BILLION HERE, 200 BILLION ON CHINA, THAT STARTS TO
ESCALATE THE INABILITY OF THE UNITED STATES OR ANY COUNTRY
THAT'S ABLE TO START THAT TO ACTUALLY NEGOTIATE BETTER TRADE
AGREEMENTS ON ALL PRODUCTS FOR ALL WORKERS THROUGHOUT ALL OF
THE WORLD, IT REDUCES THE VERY POSITION THAT HE SAYS HE'S
TRYING TO INCREASE BY VIRTUE OF THE FACT THAT IT WILL REDUCE
WORKERS, IT WILL REDUCE JOBS AND SO FORTH IN THE UNITED STATES
AND THROUGHOUT THE WORLD, IT WILL ALSO HARM OUR DIPLOMATIC
RELATIONSHIP.
IT ALREADY HAS HARMED OUR DIPLOMATIC
RELATIONSHIP WITH OUR NEIGHBORS, WITH CANADA AND MEXICO, WITH
EUROPE, WITH JAPAN, AND ON AND ON.
I HAVE TWO THOUGHTS ON THIS.
ONE -- WELL, LET'S GO FOR THREE
-- ONE IS THE FUNNY PART WHICH IS NIKKI HALEY WAS IN THE
AUDIENCE BECAUSE SHE'S THE FORMER GOVERNOR OF SOUTH
CAROLINA WHERE THE PLANT IS, SHE'S NOW OF COURSE THE U.S.
AMBASSADOR TO THE UNITED NATIONS, SO SHE'S SMILING ALL
ALONG AND THEN THE AMBASSADOR GETS TO THE PART OF HOW THE
TARIFFS ARE BAD AND NIKKI HALEY IS LIKE -- AND APPARENTLY SHE
LEFT IN THE MIDDLE OF SPEECHES.
SO THEY'RE LIKE, OH, FOR THOSE
OF YOU WHO CAN DO SOMETHING, SHE HEARS THAT, SHE'S GONE.
I DON'T
KNOW IF SHE TOOK OFF IN A VOLVO -- AND THEN THIS VOLVO CEO CAME
AND SAID MORE STUFF THAT WAS TOUGH AGAINST THE TRUMP
DEMONSTRATION BUT HALEY IT ALREADY FLED FROM THE BUILDING.
AND HER POINT ABOUT -- I DIDN'T KNOW THAT A QUARTER OF SWEDEN
HAD MOVED TO THE U.S. IN THE 1800S, THAT'S WONDERFUL.
AND WE
AREN'T WORKING WITH OUR TOP ALLIES IN THE WORLD, AND I
IMAGINE EVEN THE RIGHT WING WOULD SAY SWEDEN, NORTHERN
EUROPE, WONDERFUL ALLIES -- IF WE AREN'T WORKING WITH CANADA,
WITH MEXICO, WHO ARE WE WORKING WITH?
AND THE ANSWER IS, UH,
DUTERTE IN THE PHILIPPINES, KIM JONG-UN, VLADIMIR PUTIN, SOME OF
IT MAKES SENSE, YOU HAVE TO MAKE PEACE WITH YOUR ENEMIES LIKE
NORTH KOREA, BUT WHEN YOU LOOK AT THE TOTALITY OF THE PEOPLE WE
ARE INSULTING AND ATTACKING AND THE TOTALITY OF THE PEOPLE
DONALD TRUMP CONSTANTLY SINGS THE PRAISES OF, IT IS A STRANGE
COLLECTION OF PEOPLE.
AND IT'S ALSO VERY UNECONOMIC FOR WHAT HE SAYS TO BE HIS
MISSION OF MAKING AMERICA GREAT AGAIN, HE'S BASICALLY DECREASING
OUR ABILITY TO SORT OF TRADE WITH THOSE SAME PARTNERS.
IT'S
DUMB.
I HAVE A GREAT EXAMPLE OF HOW DUMB IT IS, ACTUALLY, AND IT HAS
TO DO WITH TRUMP AND CHINA -- EVERYTHING THAT HAS TO DO WITH
THOSE THINGS IS DUMB, ACTUALLY, HIS RELATIONSHIP WITH CHINA --
BUT I WANT TO TALK ABOUT THIS SORT OF TARIFFS BECAUSE RIGHT
NOW HE'S JUST SAYING MAYBE IF I FEEL LIKE IT OUTPUT A 20% TARIFF
ON ALL THE CARS COMING FROM THE E.U., AND IF YOU GO TO BUY A CAR
ENJOY PAYING THOUSANDS MORE FOR IT, BUT HE'S ALREADY DONE THIS
ON CHINA --
IT DOESN'T MATTER THAT MUCH BECAUSE WE DON'T BUY THAT MANY
VEHICLES FROM CHINA BUT IT IS INTERESTING THAT WE SELL
266,000-PLUS CARS TO CHINA, AND THEY APPARENTLY FOUND THAT OUT
BECAUSE THEY ARE RAISING TARIFFS
ON OUR CARS TO 40%.
SO WE RAISED
TARIFFS ON THEIR CARS, WHICH WE DON'T BUY MUCH ANYWAY, NOW THEY
ARE GOING TO JACK UP THE TARIFFS ON US.
AND DONALD TRUMP WHO
APPARENTLY FOR SOME IRRATIONAL REASON HATES MERCEDES-BENZ MIGHT
THINK YES, SCREW MERCEDES-BENZ, IT'S A FOREIGN COMPANY ANYWAY,
BUT THOSE CARS ARE MADE HERE, U.S. WORKERS PRODUCE THOSE CARS,
OR AT LEAST WILL PRODUCE 60% AS MANY PERHAPS IN THE NEXT YEAR,
AND MANY WILL LOSE THEIR JOBS, MANY WHO LOSE THEIR JOBS WILL
HAVE BEEN TRUMP VOTERS, AND THEY MIGHT EVEN AT THIS POINT BE
CHEERING BECAUSE IT SEEMS LIKE HE'S STANDING UP FOR THE
AMERICAN WORKER, BUT NONE OF THIS BENEFITS THE AMERICAN
WORKING CLASS.
IT KILLS YOUR JOB, IT MAKES THE PRODUCT YOU GO
TO BUY MORE EXPENSIVE, IT HURTS THE ECONOMY ALL AROUND.
DONALD
TRUMP OF COURSE WILL BE FINE ECONOMICALLY, YOU WILL BEAR THE
BURDEN OF HIS POLICIES.
I AGREE AND IT ISN'T JUST IF HE DOES THE TARIFFS OR NOT, JUST
THE CONVERSATION ABOUT IT CREATES LACK OF CONFIDENCE, THE
STOCK MARKET GOES UP AND DOWN, TOPSY-TURVY, AND IT'S NOT GOING
TO HURT THE CORPORATE CEOS.
IF THEY HAVE TO TIGHTEN THEIR BELTS
THEY WILL DO IT TO THE WORKING CLASS, LIKE YOU SAID.
IN A
DISTRICT LIKE MINE WHERE THE ON EMPLOYMENT RATE IS DOUBLE THE
REST OF SAN DIEGO COUNTY, WAGES HAVEN'T GONE UP IN YEARS, PEOPLE
SAY I'M RETIRING WITH LESS THAN $500, TRUMP HAS DUPED THEM INTO
VOTING AGAINST THEIR OWN LIVELIHOOD, PEOPLE IN WASHINGTON
HAVE POWER AND USE IT TO BLIGHT THEIR LIVELIHOOD AND CRUSH THEIR
DREAMS.
THESE ARE PEOPLE WHO PAID INTO SOCIAL SECURITY AND
MEDICARE THEIR WHOLE LIVES, NOW THEY ARE TRYING TO GUT SOCIAL
SECURITY AND MEDICARE, AND IT WILL FURTHER DISABLE THE
LIVELIHOODS OF THESE PEOPLE.
JUST FOR TRUMP VOTERS WHO ARE GOING TO BE THE RECIPIENTS OF
LOST JOBS AND MORE EXTENSIVE PRODUCTS, CEOS THEMSELVES, JAMIE
DIAMOND RUNS THIS ROUNDTABLE CEO LOBBY THING AND JAMIE DIAMOND,
CEO OF CHASE, IS ONE OF THE PEOPLE I DISLIKE MOST IN THE CEO
COMMUNITY, BUT THAT COMMUNITY GOT TOGETHER AND THEY WERE
SURVEYED AND THEY SAID SPECIFICALLY THAT THEY ARE MOST
CONCERNED IN THE ECONOMY ABOUT TRADE WARS, AND AS A RESULT OF
THAT THEY ARE REDUCING THE AMOUNT OF JOBS THAT THEY WOULD
HAVE OPENED UP.
SO THEY'RE ALREADY PREEMPTING THE
ESCALATION OF TRADE WARS BY CUTTING JOBS.
AND THE CEO HERE OF VOLVO SAID I THINK THE U.S.
ADMINISTRATION NEEDS TO TAKE A DEEP BREATH, SIT DOWN, AND THINK
THIS THROUGH.
NICE HARSH WORDS THAT I LIKE.
BUT THE ESSENCE OF
THIS IS EXACTLY RIGHT, IF YOU DON'T LIKE SOME OF THE TRADE
POLICIES WE HAVE HAD IN THE PAST I THINK ALMOST EVERYONE ON THE
PANEL WOULD AGREE WITH YOU, SO IT'S NOT A MATTER OF WHETHER YOU
ARE FOR TRADE OR AGAINST TRADE, I THINK THE QUESTION IS WHAT IS
IN THE AGREEMENT?
WHAT IS IN THE POLICY?
IT'S LIKE SAYING SMALL
GOVERNMENT, BIG GOVERNMENT.
WELL, IT DEPENDS, WHAT ARE WE
DOING?
ARE WE FIGHTING A WAR, ARE WE MAKING SURE THAT THE POND
IN YOUR BACKYARD ISN'T POISONED?
IT DEPENDS ON WHAT THE TASK IS.
IN THIS CASE, IF YOU SAY LOOK, THE TPP IS RIGGED AGAINST US BY
MULTINATIONAL CORPORATIONS WHO WROTE IT, I WOULD AGREE WITH
YOU, THAT IS WHAT HAPPENED, THEY WROTE IT WITH THEIR BEST
INTERESTS IN MIND.
THAT'S WHY WE SHOULD WRITE IT, OUR
REPRESENTATIVES SHOULD WRITE IT, AND NOT REPRESENTED AS OF
MULTINATIONAL CORPORATIONS.
BUT THAT DOESN'T MEAN YOU HAVE TO
AGREE WITH TRUMP ON THIS POLICY BECAUSE IT HAS NOTHING TO DO
WITH THAT, IT HAS NOTHING TO DO WITH OUR SOVEREIGNTY OR ANY OF
THAT, IT HAS TO DO WITH A PARTICULARLY UNINTELLIGENT WAY
OF FIGHTING BACK BECAUSE LOOK AT THE EXAMPLE JOHN GAVE, WHY WOULD
WE DO A TARIFF ON CHINESE CARS?
WE DON'T BUY ANY CHINESE CARS,
YOU ARE INVITING THEM TO DO A TARIFF AGAINST OUR CARS AND THEN
YOU COST US A LOT OF MONEY AND JOBS.
THAT IS NOT WHAT EVEN HIS
VOTERS MEANT WHEN THEY SAID WE DON'T LIKE THESE TRADE DEALS.
THEY DIDN'T MEAN MAKE THEM WORSE, RIGHT?
AND WHEN YOU DO
TARIFFS AGAINST SOMEONE ELSE, THEY WILL OF COURSE DO TARIFFS
BACK AGAINST YOU.
THAT IS WHY IT'S CALLED TRADE WARS.
ON THE
OTHER HAND WHEN YOU ARE NEGOTIATING TRADE DEALS THAT'S
WHERE WE NEED TO BE TOUGH, THAT'S WHERE WE NEED TO DEMAND
THAT THEY REPRESENT THE INTERESTS OF THE AMERICAN
PEOPLE.
SO THAT IS A TOTALLY DIFFERENT BALLGAME THAN AFTER
THE FACT GOING I DON'T KNOW, I'LL JUST DO RANDOM TARIFFS
AGAINST PEOPLE, TRY TO INTIMIDATE THEM.
WOW, THEY
DIDN'T GET INTIMIDATED, THEY STRUCK BACK WITH THE SAME
TARIFFS, I DIDN'T SEE THAT COMING.
YOU DIDN'T SEE IT COMING BECAUSE YOU AREN'T THAT BRIGHT.
THE ECONOMY IS DOING OKAY BUT THERE ARE A LOT OF FARMERS IN MY
DISTRICT, THEY SEE THE WRITING ON THE WALL, THEY SEE THAT WE
HAVE A PRESIDENT AND A CONGRESS WHO DOESN'T RECOGNIZE THAT THE
THINGS THEY CARE ABOUT MOST ARE WATER AND WORKERS COME AND WE
HAVE AN ADMINISTRATION THAT IS GUTTING THE EPA AND HURTING
THEIR WAY OF LIFE, SO THERE ARE SOME WITHIN TRUMP'S CAMP, THAT'S
WHY YOU SEE HIM KISSING UP TO THEM SO MUCH, THEY SEE WHAT'S
GOING TO HAPPEN IF WE KEEP GOING DOWN THIS ROUTE, SO OUR GOAL IS
TO TAKE THESE TRUMP SUPPORTERS AND SAY HERE'S WHAT WE PRESENT,
NOT JUST REACTING TO TRUMP'S NARRATIVE BUT PRESENTING OUR OWN
VIEWS ON WHAT TRUMP SHOULD DO.
NOT JUST WHAT TRUMP IS DOING
WRONG, BUT WHAT WILL WE DO TO FIX IT?
AMMAR, THE GREAT IRONY IS THAT'S WHAT TRUMP SAID DURING
THE CAMPAIGN.
THEIR LEADERS ARE SMART AND OUR LEADERS ARE DUMB.
SO, CHINA IS PARTICULARLY STRIKING BACK AGAINST OUR
FARMERS BECAUSE THEY KNOW THAT'S GOING TO HURT, RIGHT?
AND THEY
ARE BEING SMART, GOING YOUR GOING TO DO A TARIFF AGAINST ME?
I'LL DO A TARIFF AGAINST YOUR FARMERS BECAUSE I KNOW THEY ARE
POLITICALLY POWERFUL AND MORE LIKELY TO HAVE VOTED FOR YOU.
THAT'S A SMART WAY OF DOING POLITICS, WE MIGHT NOT LIKE IT
BUT IT'S SMART.
TRUMP ON THE OTHER HAND DOESN'T LOOK TO SEE
IF WE HAVE A SURPLUS OR DEFICIT, HE CLAIMED WE HAVE A DEFICIT
WITH CANADA, WE DON'T, WE HAVE A SURPLUS, YOU COULDN'T PICK A
WORSE COUNTRY TO PICK ON BECAUSE THEN WE MIGHT LOSE OUR SURPLUS
WITH CANADA.
THAT IS SO DUMB, RIGHT?
AND THEN TO ATTACK CHINA
AND GET THESE TARIFFS IN RETURN IN A HODGEPODGE WAY THAT YOU AS
USUAL DIDN'T THINK THROUGH, UNFORTUNATELY THEIR LEADERS ARE
SMART AND OUR CURRENT LEADER IS PRETTY DUMB.