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CHARLES: PRESIDENT TRUMP
RENEWING HIS THREATS TO IMPOSE
TARIFFS ON CHINA TODAY, TWEETING
PRESIDENT XI AND I WANT THIS TO
HAPPEN, IF IT DOESN'T REMEMBER I
AM A TARIFF MAN.
WHEN PEOPLE AND COUNTRIES COME
TO RAID THE GREAT WEALTH OF OUR
NATION I WANT THEM TO PAY FOR
THE PRIVILEGE OF DOING SO.
JOINING ME WHITE HOUSE TOP TRADE
ADVISOR PETER NAVARRO.
I HAVE A LOT OF STUFF TO GO
THROUGH.
CAN WE PLEASE HIT ALL THESE
THINGS.
SOME QUESTIONS, YOU ARE THE MAN
OF THE MOMENT.
FIRST YOU HAVE THIS MEETING,
THIS DINNER.
INITIALLY EVERYONE THINKING IT
WAS VERY SUCCESSFUL.
I WANT TO ASK BUT THE 142
DEMANDS BEFORE THIS DINNER.
WHAT HAS CHINA AGREED TO, WHAT
DO YOU THINK THEY WILL AGREE TO?
>> FIRST OF ALL THE THE DINNER
WAS HIGHLY SUCCESSFUL.
THE PRESIDENT HAD A SUCCESSFUL
EXCHANGE.
NEXT 90 DAYS TO DEAL
SUBSTANTIVELY WITH MARKET ISSUES
AND ACCESS ISSUES.
PEOPLE SHOULD BE --
CHARLES: DID THEY RESPOND TO ANY
OF THE 142 DEMANDS SPECIFICALLY?
>> THEY DIDN'T JUST APPLY TO IT.
THEY WENT OVER IT POINT BY
POINT.
THAT WAS BEAUTY OF THIS,
CHARLES.
I WAS PRIVILEGED TO BE IN THE
ROOM.
IT WAS EXTRAORDINARILY THAT THE
PRESIDENT OF CHINA HIMSELF
INSTEAD OF ONE OF HIS MINIONS,
SAT THERE ESSENTIALLY FOR 45
MINUTES WITH EXTENSIVE NOTES AND
TALKED THROUGH A LOT OF THE 142
ITEMS ON THE LIST AND PROVIDED
THE AMERICAN SIDE WITH
ASSURANCES THEY WOULD BE
ADDRESSED.
THERE WAS THREE BUCKETS IN THAT.
ONE OF THE FIRST BUCKET WAS
STUFF THAT WILL DEFINITELY GET
DONE.
THE SECOND BUCKET WAS THINGS
THAT WE THINK WE CAN GET DONE.
WE'LL MOVE ON.
THE THIRD BUCKET WERE THINGS
THAT WOULD BE CONTENTIOUS TO
NEGOTIATE BUT THEY WERE THE
SMALLEST OF THE THREE BUCKETS.
I THINK, LOOK, THE COUPLE
REASONS TO BE OPTIMISTIC HERE.
FIRST OF ALL, IF YOU'RE AN
INVESTOR, YOU'RE A CORPORATE
EXECUTIVE, THE MOST IMPORTANT
THING FOR THE LONG-TERM HELD OF
THE WORLD TRADING SYSTEM IS TO
GET CHINA TO STOP DOING ALL THE
STUFF IT DOES ON FORCED
TECHNOLOGY TRANSFER,
INTELLECTUAL PROPERTY THEFT,
MASSIVE SUBSIDIES.
THEY ARE A DESTABLIZING FORCE.
CHARLES: YOU'RE TALKING TO THE
CHORUS.
I WANT TO HELP ANSWER SOME
QUESTIONS THE MARKET WANTS
TODAY.
WHEN WILL CHINA START TO LOWER
AUTO TARIFFS AND WHEN WILL THEY
GO TO ZERO?
>> ALL THIS STUFF IS SUPPOSED TO
HAPPEN WITHIN THE 90 DAY PERIOD.
WE'RE NOT WAITING FOR ANYTHING.
THEY'RE SUPPOSED TO MOVE FORWARD
BEGINNING WITH MAJOR PURCHASES
OF BOTH AGRICULTURAL AND
MANUFACTURED PRODUCTS AND I
THINK THAT WE'RE ENGAGEING IN
REAL TIME WITH THE TEAM, THE
CHINESE TEAM, WE EXPECT TO SEE
PROGRESS.
THEY CAME PREPARED TO THE
MEETING.
THEY HAD EXTENSIVE NOTES ON 142
ITEMS.
IT WASN'T LIKE OH, WOULD YOU,
THIS WAS NEW TO US.
CHARLES: SURE.
>> THEY KNEW IT.
I THINK WHAT MARKETS HAVE TO DO
IS GIVE THIS PROCESS THE
REQUISITE TIME.
IT IS SILLY FOR THE MARKETS TO
TO REACT TO RUMORS IN THE AIR.
CHARLES: I AGREE WITH YOU.
IF WE GET STRAIGHTER ANSWERS WE
MIGHT HELP THE MARKET.
>> I'M TRYING.
WHAT MORE DO YOU NEED.
CHARLES: ON U.S. AUTO TARIFFS,
THAT PRESIDENT TRUMP MEETS WITH
SOME EXECUTIVES AND TALK TO
THEM.
OVERTURES, VOLKSWAGEN, BMW, WE
MIGHT OPEN UP MORE PLANTS IN
AMERICA.
ARE WE GOING THROUGH WITH AUTO
TARIFFS ON EUROPEAN ALLIES?
>> THERE WILL BE REALLY GOOD
SUBSTANTIVE DISCUSSIONS WITH THE
GERMAN AUTOMAKERS.
THOSE ARE IMMINENT.
AND I THINK THAT WE HAVE A
REALLY GOOD PATH TO COMING UP
WITH HAVING THESE COMPANIES
INVEST MORE IN AMERICA.
NOT JUST BUILD ASSEMBLY PLANTS
IN SOUTH CAROLINA, WHERE ONLY
25% OF THE CONTENT IS AMERICAN
BUT ACTUALLY BUILD THEIR
ENGINES, TRANSMISSIONS,
ELECTRONICS HERE AS WELL.
YES, I'M VERY BULLISH ON THAT.
WE'VE GOT WILBUR ROSS, ROBERT
LIGHTHIZER INVOLVED IN THOSE
DISCUSSIONS AS WELL AS SEVERAL
OTHERS.
PRESIDENT IS PAYING QUEEN
ATTENTION TO THIS.
CHARLES, WHAT IS GREAT ABOUT
THIS THEY WOULDN'T BE COME
TOGETHER TABLE HERE TO TALK TO
US UNLESS THE PRESIDENT HAD AUTO
TARIFFS ON THE TABLE.
BUT YOU, I THINK, BY THIS TIME,
LOOK, THE PRESIDENT HAS
THREATENED TARIFFS.
KOREA, CANADA, MEXICO I.
CHARLES: SURE.
>> WHAT HAVE WE GOT?
CHARLES: IT WORKED.
>> GIVE HIM TIME TO WORK HIS
MAGIC.
CHARLES: SOYBEANS, WHEN WILL THE
CHINESE BEGIN TO BUY SOYBEANS?
>> THEY'RE ALREADY BEGINNING TO
BUY SOYBEANS.
THEY OVERPLAYED THEIR HAND IN
TERMS OF RETALIATING ON THEIR
FARMERS.
THEY WERE CRITICIZED WITHIN
THEIR OWN BORDERS BY PEOPLE WHO
DARE TO CRITICIZE THE PRESIDENT.
THERE WHAT THEY DID, THEY BOUGHT
A BUNCH OF STUFF, STOCKPILED IN
ADVANCE.
TARIFFS CAME ON, TRIED TO DRIVE
THE MARKET UP, PUNISH US.
DIDN'T WORK.
SONNY PERDUE CAME TO THE
FARMER'S AID.
NOW CHINA IS OUT OF SOYBEANS.
BRAZIL DIDN'T HAVE ENOUGH.
THIS IS GREAT TIME.
SOYBEANS COME IN.
THEY START TO BUY STUFF.
THAT MARKET WILL BE FINE.
THEY WILL TRY TO BUY STUFF.
I'M GIVING YOU SOLID MARKET
MOVING INFORMATION AND I'M
TELLING YOU THEY WILL BUY SOME
SOYBEANS.
CHARLES: THIS IS ONE OF THE KEY
INDICATORS WE'RE LOOKING FOR.
CAN WE HEAR FROM THE FARMING
INDUSTRY, YEA, WE'VE SEEN
NOTICEABLE UP TICK IN ORDERS?
CAN WE HEAR THAT TODAY, THIS
WEEK?
>> YOU SHOULD SEE THAT SOON.
LOOK, WE LEFT, WE LEFT, LET ME
EXPLAIN SOMETHING HERE THAT IS
REALLY IMPORTANT.
WE LEFT ARGENTINA ON SATURDAY
NIGHT, DECEMBER 1st.
THE CHINESE DELEGATION ITSELF
WAS GOING ON DOWN TO
LATIN AMERICA, TO PANAMA IN
PARTICULAR.
IT WON'T BE BACK ON CHINESE SOIL
UNTIL DECEMBER 5th.
GIVE THEM A LITTLE BIT OF TIME
TO DEAL WITH THE JET LAG AND
ROLL THEIR SLEEVES UP.
>> OKAY.
>> BUT I MEAN, LOOK YOU'RE
ASKING ME SPECIFIC QUESTIONS.
I'M GIVING YOU SPECIFIC ANSWERS.
CHARLES: I APPRECIATE IT, PETER?
>> I THINK EVERYTHING I'M SAY
SOMETHING BULLISH.
CHARLES: EVERYTHING YOU'RE SAY
SOMETHING BULLISH.
THE KEY IS WHEN DO THESE THINGS
HAPPEN?
IF THEY ALL HAPPEN, EVERYONE
WILL TOSS THE CONFETTI, EVEN
MAINSTREAM MEDIA FOR A SPLIT
SECOND GIVE THE ADMINISTRATION
SOME CREDIT.
>> THAT WILL NEVER HAPPEN.
COME ON CHARLES.
>> WE GOT TO TALK ABOUT THIS
THOUGH.
PRESIDENT TRUMP, I'M TARIFF MAN.
THAT IS ONE OF THE KEY NEWS
ITEMS EARLY IN THE SESSION, THAT
TRIGGERED THE SELLING.
CAN YOU EXPLAIN TO THE AMERICAN
PUBLIC HOW THE U.S. GOVERNMENT
IS MAKING MONEY RIGHT NOW OFF OF
TARIFFS?
>> SURE.
LET ME GIVE YOU A LITTLE
BACKGROUND ON THAT BECAUSE
THAT'S AN HOMAGE TO ONE OF THE
PRESIDENT TRUMP'S FAVORITE
PRESIDENTS, WILLIAM McKINLEY.
WHEN McKINLEY WAS RUNNING IN
1896 ON LAST FORM OF PROSPERITY,
PROTECTION, AND PATRIOTISM, HE
SAID HE IS A TARIFF MAN STANDING
ON A TARIFF PLATFORM.
WHAT McKINLEY DID WHEN HE GOT
ELECTED PUT IN STRONG TARIFFS
AND A REALIGNED CURRENCY.
ACTUALLY SET OFF A TREMENDOUS
CAT LITTIC GROWTH BUT HELPED
REALIGN THE REPUBLICAN PARTY.
THERE IS A LOT OF HISTORY IN THE
ONE PHRASE FROM THE PRESIDENT.
CHARLES: IT HELPED THE ECONOMY
BUT REPUBLICANS TOOK BIG LOSSES
BECAUSE EVERYONE THOUGHT THE
RICH BENEFITED.
>> I DON'T KNOW THAT THEY
LOST -- $7 BILLION.
CHARLES: COVERS TO THE U.S.
GOVERNMENT HOW DOES THE MONEY
GO, WORK OUT THE MECHANISM THAT
THE MONEY IS GOING INTO THE U.S.
COVERS FROM THESE TARIFFS?
HOW DOES THAT WORK?
>> I THINK WE COLLECTED
$7 BILLION SO FAR.
I THINK THAT IS REAL MONEY AT
THIS POINT.
I THINK WHAT'S IMPORTANT HERE,
CHARLES, THE FUNCTION OF THESE
TARIFFS, WHEN THE PRESIDENT SAYS
HE IS A TARIFF MAN, HE ALSO
UNDERSTANDS ONE OF THE MOST
IMPORTANT FUNCTIONS OF THESE
TARIFFS IS TO MAKE SURE THAT
PEOPLE INVEST WITHIN OUR
BORDERS.
STEEL AND ALUMINUM TARIFFS HAVE
BEEN TREMENDOUSLY SUCCESSFUL
ATTRACTING INVESTMENT.
THE MERE THREAT OF AUTO TARIFFS
TRIGGERED COMMITMENT FROM AUTO
COMPANIES TO COME HERE AND
INVEST.
SO TARIFFS, LOOK, YOU GOT TO
UNDERSTAND, LIKE CHINA HAS HAD
HIGH TARIFF, NON-TARIFF BARRIERS
FOR THE LAST 30 YEARS.
THEIR ECONOMY GROWN 12% A YEAR.
CHARLES: WE NEED YOU TO UPDATE