COULDN'T RESIST.
SCOTT WREN, THANK YOU VERY MUCH.
>> HAVE A GOOD WEEKEND STUART.
THANK YOU.
STUART: I WANT TO GET BACK TO
THE TARIFF QUESTION, THE TARIFF
ISSUE AND BRING IN THE MAN WHOSE
IDEA IT WAS, WILBUR ROSS IS WITH
US HE'S THE COMMERCE SECRETARY.
WILBUR WELCOME BACK TO THE
PROGRAM GOOD TO SEE YOU SIR.
>> GOOD TO BE ON AGAIN, THANK
YOU.
STUART: SO ONE OF THE CRITICISMS
WAS THAT THESE TARIFFS WOULD
RAISE THE COST TO AMERICAN
CONSUMERS.
IT WOULD RAISE THE COST OF STEEL
IN THE UNITED STATES AND WE HAD
EXXON THIS MORNING SAYING THAT
IT WOULD ADD $300 MILLION EXTRA
TO THE COST OF BUILDING THE
KEYSTONE PIPELINE.
300 MILLION EXTRA BECAUSE OF THE
TARIFFS THAT YOU PROPOSED.
WHAT'S YOUR ANSWER?
>> WELL, MY ANSWER IS SEVERAL
THINGS.
FIRST OF ALL, LET'S PUT IT IN
PERSPECTIVE.
I JUST BOUGHT A CAN OF CAMPBELLS
SOUP TODAY AT THE 7-ELEVEN AND
IT WAS $1.99 FOR THE CAN.
THERE'S ABOUT $0.03 WORTH OF 10
PLATE STEEL IN THIS CAN SO IF IT
GOES UP 25%, THAT'S A TINY
FRACTION OF ONE PENNY.
THAT'S NOT A NOTICEABLE THING.
STUART: BUT THE EXXON KEYSTONE
PIPELINE, $300 MILLION, THEY
CAME OUT AND SAID THAT THIS
MORNING.
YOUR TARIFFS, THE PRESIDENT'S
TARIFFS HAD $300 MILLION TO IT.
THAT'S HUGE.
>> WELL IT IS HUGE BUT IT'S A
HUGE PROJECT.
IT'S A MULTI-BILLION DOLLAR
PROJECT AND WHAT THEY DID, THEY
BOUGHT A LOT OF THEIR STEEL FROM
INDIA PRIOR TO THE PRESIDENT
PUTTING IN THE BUY AMERICA BUILD
AMERICA THING, SO WHAT THEY WERE
DOING WAS PROFITEERING STEEL.
THAT'S SOMETHING WE'RE NOT GOING
TO TOLERATE BECAUSE IT COSTS
AMERICAN JOBS.
EVERYBODY TALKS ABOUT THE PRICE
BUT WHAT ABOUT THE JOBS?
STUART: OKAY, THE OTHER
CRITICISM, POLITICO POTENTIAL
CRITICISM IS THAT YOU FACE
RETALIATION FROM OTHER COUNTRIES
AND THIS MORNING, WE HAD SWEDEN
'S ELECTROLUX, THE BIGGEST
MAKERS OF ALLIANCES IN EUROPE,
THEY PULLED OREGON DELAYED A
$250 MILLION INVESTMENT IN
TENNESSEE IN THE UNITED
STATES, BECAUSE OF THOSE STEEL
TARIFFS.
THEY SAY IT WAS SIMPLY RAISING
THE COST OF STEEL IN AMERICA.
THEY'VE DELAYED THE PROJECT.
YOUR ANSWER?
>> WELL, ANY TIME YOU GET RID OF
DUMPED PRODUCT, THERE WILL BE A
PRICE INCREASE.
THE QUESTION IS WHAT DOES IT
AMOUNT TO?
TAKE A CAR.
THERE'S ABOUT ONE TON OF STEEL
IN A CAR AND IF THAT GOES
UP 25% FROM A 700 ODD DOLLAR
BASE, THAT'S UNDER A COUPLE OF
HUNDRED DOLLARS, THAT'S AROUND
FIVE-TENTHS OF 1% OF THE PRICE
OF A CAR.
THAT'S NO BIG DEAL.
SO THE PEOPLE ARE EXAGGERATING
IT CONSIDERABLY BUT YOU'VE GOT
TO LOOK AT THE JOB CREATION AND
THE IMPACT ON AMERICAN EMPLOYEES
AMERICAN EMPLOYEES HAVE BORN THE
BRUNT OF ALL THE IMPORTED STEEL
AND ALUMINUM THAT'S BEEN COMING
IN.
STUART: OKAY.
>> SO CORPORATE AMERICA MAY
COMPLAIN.
THE PRESIDENT IS TAKING UP THE
BANNER OF MR. AND MRS. AMERICA.
STUART: DO YOU THINK THE MARKET
THEREFORE WILL COME BACK FROM
THIS, AS A NASTY SELL-OFF DOWN
ABOUT 700 POINTS RIGHT AFTER THE
TARIFFS WERE ANNOUNCED.
DOES THE MARKET COME BACK?
>> WELL SURE.
FIRST OF ALL IT WASN'T JUST THE
TARIFF ANNOUNCEMENT.
YOU ALSO HAVE THE SAYINGS BY
FEDERAL RESERVE BOARD CHAIRMAN
POWELL ABOUT MORE RAPID RATE
INCREASES THAN PEOPLE HAD BEEN
ANTICIPATING BEFORE.
YOU JUST HAD ON SOMEONE WHO SAID
HE MADE THINGS THREE INCREASES
BEFORE HE WAS THINKING TWO, SO I
THINK YOU CAN'T SEPARATE MARKET
ACTION TOTALLY FROM OTHER EVENTS
AS WELL, BUT WHETHER THE MARKET
WENT UP OR DOWN, THEY TOOK OVER
$2 BILLION OFF THE PRICE OF
GENERAL MOTORS.
IF I'M RIGHT, THAT IT'S UNDER
ONE-HALF OF 1% DIFFERENCE IN THE
PRICE, IS DOES THAT REALLY
JUSTIFY ALL THE $2 BILLION OF
MARKET VALUE LOSS?
I THINK IT'S AN INTERESTING
QUESTION.
STUART: OKAY, WILBUR ROSS YOU
ARE THE MAN OF THE HOUR THANK
YOU VERY MUCH FOR BEING ON THE
SHOW WE APPRECIATE IT.
>> THANK YOU, BUT REMEMBER THINK