Trump Imposes Tariffs; Dollar Surges on New Tariffs

Bloomberg Audio Studios, podcasts, radio news. 0:00:10.240 --> 0:00:13.440 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.440 --> 0:00:15.160 are the stories we're following today. 0:00:15.440 --> 0:00:17.560 Karen, we are seeing a sharp sell off in stocks 0:00:17.600 --> 0:00:20.279 around the world with President Trump set to follow through 0:00:20.320 --> 0:00:23.640 on his threat of tariffs against America's closest trading partners. 0:00:24.000 --> 0:00:27.040 On Saturday, the President announced twenty five percent duties on 0:00:27.080 --> 0:00:30.480 products from Canada and Mexico and ten percent on China, 0:00:30.800 --> 0:00:35.480 starting just after midnight tonight. Trump admits American consumers might 0:00:35.520 --> 0:00:36.040 take a hit. 0:00:36.479 --> 0:00:39.479 We may have short term so a little pain, and 0:00:39.560 --> 0:00:40.559 people understand that. 0:00:41.240 --> 0:00:43.800 But long term, the United States has been. 0:00:43.760 --> 0:00:47.159 Ripped off by virtually every country in the world. We 0:00:47.240 --> 0:00:51.519 have deficits with almost every country, not every country, but allmost. 0:00:51.479 --> 0:00:55.240 And Republican lawmakers are signaling they support the president's efforts. 0:00:55.240 --> 0:00:58.320 Senator Lindsey Graham had this reaction on Fox News Sunday. 0:00:58.640 --> 0:01:01.120 If you want tariffs to go away, Mexico and China, 0:01:01.400 --> 0:01:06.120 stop poising Americans, stop sending ventanyl into America to kill Americans. 0:01:06.120 --> 0:01:08.280 If you want to have a better relationship Mexico with 0:01:08.319 --> 0:01:11.080 the United States, do your report on the other side. 0:01:10.840 --> 0:01:14.440 Of the border, but Democratic Senator Mark Warner says tariffs 0:01:14.440 --> 0:01:16.880 amount to what he calls a Donald Trump Super Bowl 0:01:17.040 --> 0:01:20.039 tax less than a week before the big game. Remember, 0:01:20.040 --> 0:01:22.400 Donald Trump got hired trying to lower grow saying he 0:01:22.400 --> 0:01:23.800 was going to lower grocery prices. 0:01:23.959 --> 0:01:26.800 Right two weeks in, He's doing something that's going to 0:01:26.840 --> 0:01:28.680 do the absolute opposite. 0:01:28.720 --> 0:01:31.600 Senator Warner spoke to CBS as Margaret Brennan on Face 0:01:31.720 --> 0:01:33.600 the Nation and you can hear both Face the Nation 0:01:33.680 --> 0:01:36.479 and Fox News Sunday every Sunday on Bloomberg Radio. 0:01:37.280 --> 0:01:39.959 Well, Nathan Trump says he will have separate calls this 0:01:40.040 --> 0:01:43.440 morning with Canadian Prime Minister Justin Trudeau as well as 0:01:43.480 --> 0:01:46.959 with the Mexican leadership. The Canadian leader has already pledged 0:01:47.000 --> 0:01:50.200 twenty five percent retaliatory tariffs on one hundred and seven 0:01:50.280 --> 0:01:53.840 billion dollars worth of US goods. Trudeau says Trump's action 0:01:54.040 --> 0:01:57.720 now risks job losses and price rises for Americans. 0:01:58.200 --> 0:02:01.680 If President Trump wants to usher in a new golden 0:02:01.760 --> 0:02:05.080 age for the United States, the better path is to 0:02:05.200 --> 0:02:07.920 partner with Canada, not to punish US. 0:02:08.200 --> 0:02:11.840 Canadian Prime Minister Justin Trude do other Canadian officials announce 0:02:11.919 --> 0:02:15.320 their own measures. David Eby, the Premiere of British Columbia, 0:02:15.400 --> 0:02:18.800 directed the provincially owned liquor distributor to remove some alcohol 0:02:18.880 --> 0:02:21.280 brands made in Republican Led States from the shelves of 0:02:21.360 --> 0:02:24.480 retail stores and to cease further purchases. 0:02:24.680 --> 0:02:27.000 Well, as you mentioned, Karen, the PAESO is dropping to 0:02:27.040 --> 0:02:30.480 its lowest level in almost three years. Mexican President Claudia 0:02:30.520 --> 0:02:33.800 Shanebaum says she'll set out her response to US tariffs 0:02:33.880 --> 0:02:36.560 later today. She says she hopes a resolution can be 0:02:36.560 --> 0:02:37.240 found quickly. 0:02:37.600 --> 0:02:42.160 That's a bit anise Nibo sovereignty is not negotiable to 0:02:42.280 --> 0:02:46.200 this end. Yesterday, in my statement, I proposed to President Trump, 0:02:46.400 --> 0:02:48.679 though we establish a working group, it is not with 0:02:48.760 --> 0:02:51.639 the imposition of tariffs that the problems are resolved, but 0:02:51.800 --> 0:02:53.600 speaking and dialoguing as we did. 0:02:54.040 --> 0:02:57.079 Mexican President Claudia Shanebaum spoke there through an interpreter. President 0:02:57.120 --> 0:03:00.440 Trump has said he may escalate US tariffs further response 0:03:00.520 --> 0:03:01.640 to any retaliations. 0:03:02.320 --> 0:03:05.280 Well Nathan China's reaction to Trump's tariffs, which come in 0:03:05.320 --> 0:03:08.120 the middle of Lunar New Year holiday celebrations, has been 0:03:08.160 --> 0:03:11.880 more muted. The country's Commerce Ministry issued a statement expressing 0:03:12.040 --> 0:03:18.079 strong dissatisfaction and vowing corresponding countermeasures, without elaborating. Our Chief 0:03:18.200 --> 0:03:21.799 North Asia correspondent Stephen Engels says China's reaction could yet 0:03:21.919 --> 0:03:22.320 ramp up. 0:03:22.680 --> 0:03:25.200 This is going to be a protracted process, So Beijing 0:03:25.400 --> 0:03:28.320 has to process exactly what's going to be the end 0:03:28.800 --> 0:03:30.200 result of tariffs. 0:03:30.320 --> 0:03:31.800 Is it going to go up to sixty percent? 0:03:32.040 --> 0:03:34.760 It's ten percent right now, and there's going to be 0:03:34.800 --> 0:03:37.560 an economic impact to that. And I think right now, 0:03:37.880 --> 0:03:40.440 especially as they're coming out of the long Lunar New 0:03:40.520 --> 0:03:43.960 Year holiday, kind of crafting their message obviously, and. 0:03:44.040 --> 0:03:46.720 Mutz Bloomberg Steven Angel reporting from Hong Kong. 0:03:46.720 --> 0:03:49.880 And after announced those duties on China, Mexico, and Canada, Karen, 0:03:49.920 --> 0:03:53.000 President Trump also ramped up threats to the European Union, 0:03:53.160 --> 0:03:55.840 citing that block's large surplus with the US. 0:03:56.320 --> 0:03:59.080 It will definitely happen with the European Union, I can 0:03:59.160 --> 0:04:02.480 tell you that, because they've really taken advantage of us, 0:04:02.520 --> 0:04:06.000 and you know, we have over three hundred billion dollar deficit. 0:04:06.600 --> 0:04:09.120 They don't take our cars, they don't take our. 0:04:09.080 --> 0:04:12.720 Farm products, they take almost nothing. Can we take everything 0:04:12.840 --> 0:04:13.160 from them? 0:04:13.280 --> 0:04:17.200 Millions of cars tremendous amounts of food and farm product. 0:04:17.560 --> 0:04:20.520 President Trump's remarks came after an EU spokesperson said that 0:04:20.800 --> 0:04:23.560 the BLOCK would respond firmly to any trading partner that 0:04:23.680 --> 0:04:27.080 unfairly or arbitrarily imposes tariffs on EU goods. 0:04:27.560 --> 0:04:30.920 Well, Nathan, President Trump's tariffs against Canada and Mexico may 0:04:31.000 --> 0:04:34.040 result in consumers paying more for cars, and we get 0:04:34.080 --> 0:04:36.799 that angle up the tariff story with Bloomberg's John Tucker 0:04:36.880 --> 0:04:38.840 and John how much are we talking about here? 0:04:39.240 --> 0:04:43.080 Well, Karen Research from automotive consultant Alex Partners says the 0:04:43.120 --> 0:04:46.600 tariffs will add sixty billion dollars in cost to the 0:04:46.720 --> 0:04:49.599 auto industry, a lot of which likely to be passed 0:04:49.640 --> 0:04:53.120 on to consumers. Wolf Research analysts, so the average price 0:04:53.160 --> 0:04:56.159 of a new car may climb by about three thousand dollars. 0:04:56.760 --> 0:04:59.840 The duties would immediately hit almost a quarter of this 0:05:00.000 --> 0:05:02.680 sixteen million vehicles that are sold in the US every year, 0:05:03.240 --> 0:05:06.120 as well as the parts and components that go into them. Now, 0:05:06.240 --> 0:05:09.279 car components can make their way back and forth across 0:05:09.440 --> 0:05:12.760 US borders as many as eight times during the production 0:05:12.880 --> 0:05:16.080 of the car. Automakers in Mexico they've been preparing by 0:05:16.200 --> 0:05:20.560 preemptively importing both more components and vehicles that could ease 0:05:20.600 --> 0:05:23.200 the blow in the first few weeks. But Flavio Volpi, 0:05:23.279 --> 0:05:28.120 he's the president of Canada's Automotive Parts Manufacturers Association, predicts 0:05:28.440 --> 0:05:31.240 his words now the auto sector is going to shut 0:05:31.320 --> 0:05:34.960 down within a week. This morning, shares of GM down 0:05:35.040 --> 0:05:38.880 seven percent, Stalantes is off almost six percent, and Ford 0:05:39.360 --> 0:05:42.080 is down four percent. John Tucker, Bloomberg Radio. 0:05:42.400 --> 0:05:44.919 John, thanks now the latest on another hot button issue 0:05:44.960 --> 0:05:48.520 for President Trump, Panama. It's now promising free passage for 0:05:48.800 --> 0:05:51.920 US warships through the Panama Canal and also says it 0:05:51.920 --> 0:05:55.240 will withdraw from China's Belton Road initiative, making Panama the 0:05:55.279 --> 0:05:58.640 first Latin American country to do so. The concessions came 0:05:58.760 --> 0:06:02.080 after a Secretary of State Marco Rubio visited Panama over 0:06:02.120 --> 0:06:02.640 the weekend. 0:06:03.040 --> 0:06:05.360 Over time, it's the relationship had its ups and downs, 0:06:05.400 --> 0:06:08.240 and today it's one of our strongest economic partners, certainly 0:06:08.320 --> 0:06:11.000 in the hemisphere, and an important catalyst for so much 0:06:11.080 --> 0:06:13.760 trade and commerce that happens in the United States that 0:06:13.880 --> 0:06:16.160 effects and impacts so many people both going out and 0:06:16.240 --> 0:06:16.560 coming in. 0:06:17.120 --> 0:06:19.520 And that was Secretary of State Marco Rubio speaking over 0:06:19.560 --> 0:06:20.000 the weekend. 0:06:20.080 --> 0:06:22.120 The US built the Panama Canal at the start of 0:06:22.160 --> 0:06:24.840 the twentieth century and seated it back in nineteen ninety 0:06:24.920 --> 0:06:27.440 nine under a treaty signed by President Jimmy Carter in 0:06:27.560 --> 0:06:28.600 nineteen seventy seven. 0:06:29.080 --> 0:06:31.760 Nathan, we're also learning more about Elon Musk's plans for 0:06:31.920 --> 0:06:35.440 government efficiency. He's sketching out plans for aggressive cuts that 0:06:35.560 --> 0:06:39.400 include wiping out the US Agency for International Development. Much 0:06:39.440 --> 0:06:41.560 said he has the President's blessing to end the US 0:06:41.640 --> 0:06:45.000 Agency for International Development and fold what's left into the 0:06:45.120 --> 0:06:48.000 State Department. The Tesla CEO says this move from his 0:06:48.120 --> 0:06:51.440 Doze initiative should instill confidence in the Treasury market. 0:06:51.640 --> 0:06:54.000 Well, let's check the markets once again, Karen raf. Stocks 0:06:54.000 --> 0:06:54.440 are falling. 0:06:54.520 --> 0:06:57.560 The dollar is rallying after President Trump and post tariffs 0:06:57.600 --> 0:06:59.920 on Canada, Mexico, and China. The dollars up to its 0:07:00.080 --> 0:07:02.760 highest level in more than two years. Checking it against 0:07:02.760 --> 0:07:04.800 the euro right now, the euros at one point zero 0:07:04.920 --> 0:07:08.279 two three seven, down one point two percent, the Mexican 0:07:08.400 --> 0:07:12.320 peso down two percent, while the Canadian dollar is weaker 0:07:12.400 --> 0:07:14.480 against the US dollar by about one percent. 0:07:14.880 --> 0:07:16.280 Futures are sliding. 0:07:16.400 --> 0:07:19.080 The S and P futures down one point six percent, 0:07:19.200 --> 0:07:22.480 Down futures one point four percent lower, and Nasdaq futures 0:07:22.520 --> 0:07:25.760 on the decline by one point eight percent. Oil is 0:07:25.920 --> 0:07:28.360 rallying nine x, crudes up two and a half percent 0:07:28.720 --> 0:07:32.080 seventy four dollars thirty two cents a barrel, and Bitcoin 0:07:32.760 --> 0:07:35.680 is falling as well, down one point eight percent at 0:07:35.680 --> 0:07:37.880 about ninety five thy three hundred dollars. 0:07:38.360 --> 0:07:40.480 Well Nathan Earnings will also be in focus this week, 0:07:40.520 --> 0:07:42.880 as two more members of the Magnificent Seven or pourt 0:07:42.960 --> 0:07:45.680 quarterly results, and Bloomberg's Tom Busby has a preview. 0:07:46.080 --> 0:07:49.080 Google parent Alphabet out with earnings is Tuesday. It's expected 0:07:49.160 --> 0:07:51.880 to see revenue grow double digits thanks to ad sales 0:07:51.920 --> 0:07:55.000 on its Google Search Engine, growth in its services and 0:07:55.200 --> 0:07:59.880 cloud computing, and advancements in its generative AI capabilities. Also 0:08:00.000 --> 0:08:03.560 expending its way moow robotaxi business to more cities. On Thursday, 0:08:03.600 --> 0:08:06.080 we hear from Amazon. It's expected to benefit from a 0:08:06.160 --> 0:08:09.040 burst of consumer spending ahead of the holidays and a 0:08:09.080 --> 0:08:11.679 head of tariffs imposed by the Trump White House. Also 0:08:11.880 --> 0:08:15.680 solid revenue from its Amazon Web Services cloud division. I'm 0:08:15.720 --> 0:08:17.520 Tom buzzby Bloomberg Radio. 0:08:20.880 --> 0:08:22.520 Time no offer look at some of the other stories 0:08:22.600 --> 0:08:24.440 making news in New York and around the world, and 0:08:24.520 --> 0:08:27.040 for that we're joined by Bloomberg's Michael Barr Michael. 0:08:26.800 --> 0:08:29.760 Good Morning, Good morning, Karen. Authorities say they have recovered 0:08:29.760 --> 0:08:32.480 the remains of fifty five of the sixty seven people 0:08:32.679 --> 0:08:35.880 killed in last week's plane crash in the nation's capital. 0:08:36.280 --> 0:08:40.319 John Donnelly of the Washington DC Fire and Ems Department 0:08:40.679 --> 0:08:44.040 says they are committed to the dignified recovery of remains 0:08:44.320 --> 0:08:46.880 as they prepare to lift wreckage from the Potomac River 0:08:47.280 --> 0:08:50.400 as early as this morning. Don Lee also says he 0:08:50.480 --> 0:08:53.319 has spoken with the families and kept them informed of 0:08:53.400 --> 0:08:56.320 the timeline and the operations as they work. They are 0:08:56.400 --> 0:08:59.600 a strong group of families that are focused on getting 0:08:59.640 --> 0:09:03.400 their the ones back and I think that's the appropriate 0:09:03.440 --> 0:09:06.959 place to be at this point. Officials in Philadelphia have 0:09:07.320 --> 0:09:10.480 now located the black box of the medical flight that 0:09:10.720 --> 0:09:14.440 crashed in a crowded city neighborhood Friday night. All six 0:09:14.480 --> 0:09:16.640 people on the plane were killed, and one person on 0:09:16.720 --> 0:09:20.000 the ground also died. At least twenty two people now 0:09:20.080 --> 0:09:23.959 reported injured, including three in critical condition. Mayor Jael Parker 0:09:24.040 --> 0:09:27.199 says federal, state, and local investigators have been working around 0:09:27.280 --> 0:09:28.280 the clock at the scene. 0:09:28.679 --> 0:09:31.280 This remains an ongoing investigation. 0:09:32.200 --> 0:09:35.360 The situation is fluid and it is active. 0:09:36.280 --> 0:09:39.040 The plane was on its way to Missouri and was 0:09:39.160 --> 0:09:41.640 only in the air for a short time before it crashed. 0:09:42.200 --> 0:09:45.120 Beyonce finally won air Grammy that has eluded her g 0:09:45.320 --> 0:09:47.960 one Album of the Year, the sixty seventh Grammy Awards 0:09:48.040 --> 0:09:51.360 last night, for the Country music song cow Boy Carter. 0:09:51.880 --> 0:09:56.720 I just feel very full and very honored. It's been many, 0:09:56.800 --> 0:09:57.760 many years. 0:10:00.120 --> 0:10:03.439 To see of CBS Recording, Academy, Global News twenty four 0:10:03.480 --> 0:10:05.560 hours a day and whenever you want it with Bloomberg 0:10:05.640 --> 0:10:08.200 News Now Michael Barr, and this is Bloomberg Karen. 0:10:08.320 --> 0:10:15.240 All right, Michael Barr, thank you any time now for 0:10:15.280 --> 0:10:18.280 the Bloomberg Scores update. Brought to you by Tri State Outy. 0:10:18.320 --> 0:10:20.520 Here's John stash Hour, John, good morning. 0:10:20.320 --> 0:10:23.120 Good morning. Carry the NBA trade dadline now until Thursday. 0:10:23.200 --> 0:10:25.480 But what a weekend it was. Saturday night brought the 0:10:25.640 --> 0:10:29.319 stunning blockbuster Luca Donci to the Lakers, Anthony Davis to 0:10:29.400 --> 0:10:31.640 Dallas last night, not to that level, but the Aaron 0:10:31.720 --> 0:10:34.880 Fox and Zach Lamine, good players who've been All Stars, 0:10:34.920 --> 0:10:38.720 and Fox was moved from Sacramento to San Antonio. Lavine 0:10:38.760 --> 0:10:41.880 goes from Chicago to Sacramento. I mean, while Donsi released 0:10:41.880 --> 0:10:44.520 a statement and said he thought he'd spent his entire 0:10:44.600 --> 0:10:48.240 career in Dallas every one day. Last season, Doncis averaged 0:10:48.280 --> 0:10:51.520 thirty four points a game, nine rebounds in ten assisted. 0:10:51.600 --> 0:10:54.040 He led the Maps to the NBA Finals. So why 0:10:54.240 --> 0:10:56.800 trade him? The Dallas Genteral manager is Nico Harrison. 0:10:57.480 --> 0:11:00.000 You know, there's some unique things about his his contray 0:11:00.960 --> 0:11:03.200 that we had to pay attention to. You know, there's 0:11:03.280 --> 0:11:05.640 there's other teams that were flowing up. You know that 0:11:05.760 --> 0:11:07.040 he was going to have he was gonna be able 0:11:07.080 --> 0:11:09.240 to decide to make his own decision at some point 0:11:09.320 --> 0:11:11.480 and whether he wants to be here or not, whether 0:11:11.679 --> 0:11:13.480 we want a super maxim or not, or whether he 0:11:13.559 --> 0:11:15.439 wants to opt out. So I think we had to 0:11:15.520 --> 0:11:18.320 take all that into consideration and feel like we got 0:11:18.360 --> 0:11:20.319 out in front of what could have been in tromoltuous summer. 0:11:20.360 --> 0:11:23.800 Alongside MAV's owner Mark Cuban no longer the majority owner, 0:11:23.880 --> 0:11:26.360 he was not involved in the decision the trade Donson 0:11:26.440 --> 0:11:28.480 Jet the Garden Rangers three goals in the third period 0:11:28.559 --> 0:11:30.920 beat Vegas for to two. The Islanders seven game winning 0:11:30.920 --> 0:11:33.360 street came to an end at Florida six to three. 0:11:33.400 --> 0:11:35.920 The Devils and Buffalo fell behind early three nothing lost 0:11:36.000 --> 0:11:37.199 four to three for the third. 0:11:37.080 --> 0:11:38.280 Time in the last four years. 0:11:38.760 --> 0:11:41.319 Rory McElroy's first term of the year of victory his 0:11:41.440 --> 0:11:43.760 first ever win at pebble Bee finished twenty one hunder 0:11:43.760 --> 0:11:46.400 a par one by two over Shane Lowry. They both 0:11:46.440 --> 0:11:49.040 had holes in one in the opening round. Former Baseball 0:11:49.040 --> 0:11:52.520 Commissioner Fay Vincent has passed away at eighty six. John 0:11:52.559 --> 0:11:57.480 stesha that I want Bloomberg Sports karnon Nathan Coast to 0:11:57.559 --> 0:12:02.000 Coast on Bloomberg Radio nationwide, on Serious Exam and around 0:12:02.080 --> 0:12:05.480 the world on Bloomberg dot Com and the Bloomberg Business app. 0:12:05.800 --> 0:12:07.320 This is Bloomberg Daybreak. 0:12:07.480 --> 0:12:08.760 Good morning, I'm Nathan Hager. 0:12:08.920 --> 0:12:12.280 President Donald Trump's promise of tariffs on America's closest trading 0:12:12.320 --> 0:12:16.120 partners is rippling through markets. After announcing twenty five percent 0:12:16.200 --> 0:12:19.200 duties on Canada and Mexico and ten percent on China, 0:12:19.520 --> 0:12:22.400 the President says the European Union is next. 0:12:22.800 --> 0:12:26.080 They don't take our cars, they don't take our farm products. 0:12:26.120 --> 0:12:28.959 They take almost nothing. Can we take everything? 0:12:29.040 --> 0:12:29.400 From their? 0:12:29.640 --> 0:12:33.040 President spoke to reporters outside Washington last night, joining us 0:12:33.120 --> 0:12:36.280 this morning from the nation's capital, Terry Haynes, the founder 0:12:36.360 --> 0:12:40.400 of Pangaea Policy. As we watch stocks sell off and 0:12:40.559 --> 0:12:43.599 the dollar rally this morning, Terry, should the market have 0:12:43.720 --> 0:12:44.439 seen this coming? 0:12:44.520 --> 0:12:45.000 Good morning? 0:12:45.760 --> 0:12:48.280 Hi, Good morning, Nathan, And yes, I think they should have. 0:12:48.800 --> 0:12:52.360 Markets have spent the last few months talking themselves into 0:12:52.520 --> 0:12:55.679 a GRADUALI history even you know this isn't happening. It's 0:12:55.720 --> 0:13:00.440 all negotiation stance, And yes it is negotiation, but it's 0:13:00.559 --> 0:13:05.120 negotiation based not from a trade war perspective, but I 0:13:05.200 --> 0:13:09.400 think from an overall conflict perspective, a broader geopolitical context, 0:13:09.480 --> 0:13:10.040 among others. 0:13:11.120 --> 0:13:14.000 So what is the chance, then, Terry, that the President 0:13:14.120 --> 0:13:16.520 actually does follow through on these He announced they're going 0:13:16.600 --> 0:13:19.280 to kick in just after midnight tonight. At the same 0:13:19.360 --> 0:13:22.240 time he's saying that he will have discussions with Canada 0:13:22.240 --> 0:13:23.160 and Mexico today. 0:13:24.120 --> 0:13:27.360 I think the markets should assume that some tariffs are coming. 0:13:27.720 --> 0:13:29.640 I think the size and shape are still very much 0:13:29.720 --> 0:13:32.640 up in the air, and markets are going to have 0:13:32.679 --> 0:13:36.640 to get used to volatility here. Frankly, in the realm 0:13:36.720 --> 0:13:40.160 of political decision making. You know, my instinct, and it 0:13:40.280 --> 0:13:43.360 is only instinct, is that it's not at all beyond 0:13:43.800 --> 0:13:48.160 the question that the tariffs go in as announced. It's 0:13:48.160 --> 0:13:51.160 also not beyond the question that they go in with 0:13:51.280 --> 0:13:55.000 some lowered modifications. You can look one way you can 0:13:55.040 --> 0:13:58.480 look at this is Trump testing the markets on reaction, 0:13:58.640 --> 0:14:03.839 and he's also tested politically the reaction of our border 0:14:04.000 --> 0:14:08.240 partners to do specific things to actually improve the border 0:14:08.320 --> 0:14:09.520 and stop the flow of fentanyl. 0:14:09.960 --> 0:14:12.800 Is this a test on fellow Republicans as well? 0:14:13.960 --> 0:14:15.959 It is to some extent, yes, but I think it's 0:14:16.800 --> 0:14:19.280 in so far they've been supportive. But what you got 0:14:19.360 --> 0:14:21.280 to remember over the last decade, and it's been a 0:14:21.400 --> 0:14:26.320 decade since since tariff policy became part of geopolitical policy 0:14:26.360 --> 0:14:30.200 in the United States, is that Congress has supported the 0:14:30.320 --> 0:14:34.880 means in which the how Trump imposes these tariffs, whether 0:14:34.920 --> 0:14:37.280 it was Trump one, whether it was Biden then now 0:14:37.320 --> 0:14:41.200 whether it's Trump too. You know, Congress supports the how. 0:14:41.320 --> 0:14:44.440 There will be some dissent on the when or why. 0:14:44.680 --> 0:14:48.240 That's rooted as much in the partisan politics as anything else, 0:14:48.760 --> 0:14:51.040 but there's not going to be any serious move to 0:14:51.120 --> 0:14:53.200 try to stop Trump from doing any of these things. 0:14:53.480 --> 0:14:55.720 Do you think there are any further concessions that Canada 0:14:55.800 --> 0:14:58.920 or Mexico could make after the concessions that they've say 0:14:59.080 --> 0:15:02.880 that they have made before the President announced these duties 0:15:02.920 --> 0:15:03.520 over the weekend. 0:15:04.440 --> 0:15:08.200 My unsolicited advice to those countries is very simple is 0:15:08.240 --> 0:15:11.240 that you get as you get as specific. If they 0:15:11.320 --> 0:15:15.000 want to stop the tariffs, you get as specific, and 0:15:16.640 --> 0:15:18.920 to talk about how well and how much you can 0:15:19.000 --> 0:15:23.080 partner as possible. If Trump realizes, I think, unlike the 0:15:23.160 --> 0:15:26.520 first that he's going to need support from his his 0:15:26.680 --> 0:15:29.920 border partners and and very much wants those things. 0:15:30.920 --> 0:15:34.560 And in just thirty seconds, is this about partnerships? 0:15:34.680 --> 0:15:37.160 Is this about the fentanyl and immigration flows or is 0:15:37.200 --> 0:15:39.280 this more about the trade deficits. 0:15:40.400 --> 0:15:43.320 I think it's about both. But at root, you know, 0:15:43.640 --> 0:15:48.840 the Trump always says that his top priority is securing 0:15:48.920 --> 0:15:52.720 the border, and I think you have to take the 0:15:53.240 --> 0:15:57.440 border strategy both seriously and literally as part of the 0:15:57.480 --> 0:16:02.160 broader geopolitical strategy and the broader economic strategy which are 0:16:02.240 --> 0:16:05.360 out there, which exists, even if they're being ignored by markets. Today. 0:16:05.800 --> 0:16:09.200 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:09.280 --> 0:16:12.240 making news from Wall Street to Washington and beyond. 0:16:12.560 --> 0:16:14.920 Look for us on your podcast feed by six am 0:16:15.000 --> 0:16:18.360 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:18.640 --> 0:16:21.440 You can also listen live each morning starting at five 0:16:21.480 --> 0:16:24.120 am Wall Street Time on Bloomberg eleven three to zero 0:16:24.240 --> 0:16:27.080 in New York, Bloomberg in ninety nine to one in Washington, 0:16:27.200 --> 0:16:30.480 Bloomberg ninety two to nine in Boston, and nationwide on 0:16:30.680 --> 0:16:32.840 serious XM Channel one twenty one. 0:16:33.280 --> 0:16:36.000 Plus listen coast to coast on the Bloomberg Business app 0:16:36.080 --> 0:16:38.800 Now with Apple CarPlay and Android Atuto interfaces. 0:16:39.120 --> 0:16:42.120 And don't forget to subscribe to Bloomberg News Now. It's 0:16:42.120 --> 0:16:44.880 the latest news whenever you want it in five minutes 0:16:44.960 --> 0:16:48.040 or less. Search Bloomberg News Now and your favorite podcast 0:16:48.120 --> 0:16:52.200 platform to stay informed all day long. I'm Karen Moscow. 0:16:52.080 --> 0:16:53.040 And I'm Nathan Hager. 0:16:53.200 --> 0:16:55.200 Join us again tomorrow morning for all the news you 0:16:55.320 --> 0:16:58.080 need to start your day right here on Bloomberg Daybreak