Trump Escalates Global Trade War, Pauses Military Aid to Ukraine

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.240 --> 0:00:10.799 Good morning. 0:00:10.840 --> 0:00:13.680 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:13.720 --> 0:00:15.160 stories we're following today. 0:00:15.400 --> 0:00:19.160 Karen, we begin with tariffs. President Trump has made good 0:00:19.160 --> 0:00:21.880 on a promise of sweeping levees on China and North 0:00:21.880 --> 0:00:25.479 American allies. As of midnight, most goods from Canada and 0:00:25.560 --> 0:00:29.080 Mexico now face a twenty five percent charge, while the 0:00:29.080 --> 0:00:32.000 tariff on Chinese goods has been doubled to twenty percent. 0:00:32.400 --> 0:00:35.480 In comments heard live on Bloomberg Radio, President Trump said 0:00:35.520 --> 0:00:38.360 the tariffs will help bring manufacturing back to the US. 0:00:38.640 --> 0:00:41.040 I would just say this to people in Canada or 0:00:41.120 --> 0:00:44.120 Mexico if they got to build car plans to people 0:00:44.120 --> 0:00:46.479 that are doing them, are much better off building here 0:00:46.479 --> 0:00:48.639 because we have the market, with the market where they 0:00:48.640 --> 0:00:49.360 sell the most. 0:00:49.440 --> 0:00:51.840 President Trump says there was no room left to reach 0:00:51.840 --> 0:00:54.240 a deal with Canada and Mexico as he hopes to 0:00:54.280 --> 0:00:57.000 force them to address fentanyl flows into the US. 0:00:57.520 --> 0:01:00.920 Vast amounts of fentanoil have poured into our country from 0:01:01.080 --> 0:01:04.360 Mexico and as you know, also from China, where it 0:01:04.400 --> 0:01:07.759 goes to Mexico and goes to Canada and China also 0:01:07.840 --> 0:01:10.600 had an additional ten. So it's ten plus ten and 0:01:11.480 --> 0:01:14.160 it comes in from Canada and it comes in from Mexico. 0:01:14.319 --> 0:01:16.959 And President Trump added the tariffs will be exciting for 0:01:17.200 --> 0:01:20.399 US automakers. The administration has delayed the removal of a 0:01:20.440 --> 0:01:23.280 so called the Minimus exemption for now. That means Canada 0:01:23.319 --> 0:01:26.520 and Mexico can continue shipping low cost goods over the 0:01:26.560 --> 0:01:27.840 border without a tariff. 0:01:28.600 --> 0:01:32.000 Well Nathan Trump's move has prompted a swift retaliation from 0:01:32.040 --> 0:01:35.680 Canada and China. Canada has imposed phased levels on one 0:01:35.760 --> 0:01:38.759 hundred and seven billion dollars worth of US goods, while 0:01:38.840 --> 0:01:42.120 China imposed tariffs as high as fifteen percent, mainly on 0:01:42.200 --> 0:01:47.440 agricultural shipments. Meanwhile, Mexican President Claudia Shanebaum said her government 0:01:47.520 --> 0:01:49.520 would a wait for the tariffs to go into effect 0:01:49.560 --> 0:01:53.520 before reacting, but they are ready to respond. Canadian Foreign 0:01:53.560 --> 0:01:56.520 Minister Melanie jo Lace spoke before the terraffs are put 0:01:56.560 --> 0:01:57.400 into place. 0:01:57.800 --> 0:02:02.080 We know that this is an existential threat to US 0:02:02.280 --> 0:02:05.080 and there are thousands of jobs in Canada at stake. 0:02:05.440 --> 0:02:09.440 Now we've done the work we already should the US 0:02:09.440 --> 0:02:10.639 decide to. 0:02:10.560 --> 0:02:11.600 Launch the. 0:02:13.080 --> 0:02:16.640 Trade war, Canadian Foreign Minister Melanie Sjoley said her government 0:02:16.720 --> 0:02:20.680 was ready to go ahead with retaliatory duties and Karen. 0:02:20.720 --> 0:02:24.760 President Trump also announced he's imposing tariffs on external agricultural 0:02:24.800 --> 0:02:28.359 products on April second. He didn't provide detail on which 0:02:28.400 --> 0:02:30.720 products would be affected or if there be any exemptions. 0:02:31.080 --> 0:02:34.400 The US agriculture trade deficit is projected to hit a 0:02:34.440 --> 0:02:36.840 record forty nine billion dollars this year. 0:02:37.120 --> 0:02:40.360 Well, Nathan All, this has sparked a bearish mood across markets. 0:02:40.360 --> 0:02:42.480 Asian A share sold off and the S and P 0:02:42.720 --> 0:02:45.480 five hundred suffered its worst drop of the year. Joe 0:02:45.560 --> 0:02:49.359 Lavarnia was chief economist at the White House National Economic 0:02:49.440 --> 0:02:53.400 Council during President Trump's first term. He told Bloomberg's Balance 0:02:53.400 --> 0:02:56.840 of Power the markets might have not priced in Trump's move. 0:02:57.320 --> 0:03:00.320 The market's also I think we're not believing the President 0:03:00.440 --> 0:03:03.160 was serious with these tariffs. So today might just reflect 0:03:03.240 --> 0:03:05.040 the fact that for much I think of this year, 0:03:05.080 --> 0:03:07.959 there was thoughts that they would actually never be able 0:03:08.000 --> 0:03:09.919 mented or be watered down. So I think today was 0:03:10.000 --> 0:03:12.239 really a reality check for many investors. 0:03:12.560 --> 0:03:15.920 Former Trump official Joe Lavornia notes that Wall Street's so 0:03:16.080 --> 0:03:20.160 called fear gauge, the Vicks hit its highest level since December. 0:03:19.919 --> 0:03:21.880 And tonight, Karen many are going to be watching as 0:03:21.960 --> 0:03:24.960 President Trump addresses Congress for the first time in his 0:03:25.080 --> 0:03:28.840 second term. Bloomberg's Amy Morris is in Washington with a preview. 0:03:29.320 --> 0:03:32.280 Since his re election, President Trump has blazed across the 0:03:32.320 --> 0:03:35.880 federal government, dismantling norms and traditions and parts of the 0:03:35.920 --> 0:03:40.280 government itself, firing thousands of federal workers, closing agencies, and 0:03:40.360 --> 0:03:43.760 positioning the US closer to Russia, all issues that may 0:03:43.840 --> 0:03:47.400 overshadow his address to Congress. The White House says President 0:03:47.440 --> 0:03:51.400 Trump will also discuss his economic agenda in Washington. Amy Morris, 0:03:51.440 --> 0:03:52.400 Bloomberg Radio. 0:03:52.360 --> 0:03:54.680 Amy, thank you for full coverage of the President's addressed 0:03:54.680 --> 0:03:56.720 to a Joint Session of Congress. To stay with Bloomberg 0:03:56.880 --> 0:03:59.280 for a special edition of Balance of Power with Joe 0:03:59.280 --> 0:04:01.840 Matthew and k adailely Lines. It starts at eight pm 0:04:01.920 --> 0:04:05.280 Wall Street Time on Bloomberg Radio, Bloomberg Television, and the 0:04:05.320 --> 0:04:07.680 Bloomberg Podcasts page on YouTube. 0:04:07.960 --> 0:04:11.400 Well Nathan, China's biggest political event of the year is underway. 0:04:11.520 --> 0:04:15.080 Policymakers are expected to push China's official budget deficit target 0:04:15.120 --> 0:04:17.840 to its highest level in over three decades at the 0:04:17.920 --> 0:04:20.880 National People's Congress. It would pump trillions if you want, 0:04:20.920 --> 0:04:24.159 into a system battling in deflation, a property crash in 0:04:24.200 --> 0:04:27.440 the new US trade clash. Investors will look for hims 0:04:27.520 --> 0:04:30.160 as to whether the gathering can help sustain a recent 0:04:30.240 --> 0:04:31.120 equity rally. 0:04:31.440 --> 0:04:35.320 Elsewhere in geopolitics, Karen, President Trump is pausing all US 0:04:35.440 --> 0:04:38.880 military aid to Ukraine. A senior defense official tells Bloomberg 0:04:38.880 --> 0:04:41.680 the freeze will remain in effect until the President decides 0:04:41.760 --> 0:04:45.160 Ukraine's leader, Vladimir Zelenski is committed to peace. The President 0:04:45.240 --> 0:04:47.680 was asked about his recent meeting with Zelenski. 0:04:48.120 --> 0:04:50.880 He said he thinks so war's going to go on 0:04:51.040 --> 0:04:54.560 for a long time, and he'd better not be right 0:04:54.600 --> 0:04:55.040 about that. 0:04:55.320 --> 0:04:57.839 This morning, the Kremlin said the suspension of eight is 0:04:57.880 --> 0:05:01.159 the best contribution to peace. President Trump had kept the 0:05:01.160 --> 0:05:03.880 door open to signing the minerals deal with Ukraine that 0:05:03.920 --> 0:05:06.559 was scrapped last week. He calls it a great deal 0:05:06.600 --> 0:05:08.000 for the US well. 0:05:08.000 --> 0:05:11.160 Nathan as the European Union looks for ways to support Ukraine, 0:05:11.200 --> 0:05:13.480 and it's unveiled in early eight hundred and forty billion 0:05:13.520 --> 0:05:17.559 dollar plan to fund rearmament. The proposal includes one hundred 0:05:17.560 --> 0:05:20.920 and fifty eight billion dollars in loans to boost defense spending. 0:05:21.200 --> 0:05:24.880 European Commissioned President Ursula Vonderlyon announced it this morning. 0:05:25.240 --> 0:05:29.480 We are in an era of rearmament and Europe is 0:05:29.560 --> 0:05:33.800 ready to massively boost its defense spending, both to respond 0:05:33.880 --> 0:05:38.040 to the short term urgency to act and to support Ukraine, 0:05:38.440 --> 0:05:41.480 but also to address the long term need to take 0:05:41.520 --> 0:05:46.919 on more responsibility for our own European security and. 0:05:46.960 --> 0:05:50.720 EC President Ursula Vonderlyon sent a letter to EU member 0:05:50.920 --> 0:05:54.560 states listing possible options to bolster national defense in the 0:05:54.600 --> 0:05:55.440 near term. 0:05:55.480 --> 0:05:58.279 Back on Wall Street, Karen Traders have a key earnings 0:05:58.320 --> 0:06:01.240 report to look ahead to this morning. Blomberg's Charlie Pellett 0:06:01.240 --> 0:06:03.719 has a preview of the latest results from Target. 0:06:04.040 --> 0:06:08.640 Target's outlook on consumer demand and macro economic uncertainties will 0:06:08.680 --> 0:06:12.120 be among key areas of focus. Joe Feldman is an 0:06:12.120 --> 0:06:16.119 analyst with Telsey Advisory Group. He's got an outperform rating 0:06:16.160 --> 0:06:18.679 on the stock with a one hundred and fifty dollars 0:06:18.720 --> 0:06:19.479 price target. 0:06:19.600 --> 0:06:20.320 We're hoping to. 0:06:20.279 --> 0:06:23.560 See better trend on the inventory side. 0:06:23.680 --> 0:06:25.719 Their in stocks have been very good, which is a 0:06:25.760 --> 0:06:27.880 good thing because you can sell the product. 0:06:27.960 --> 0:06:31.159 The estimate on sales is thirty point six seven billion 0:06:31.200 --> 0:06:35.000 dollars with gross margin a twenty five point five percent. 0:06:35.120 --> 0:06:37.719 In New York, Charlie Pellett, Bloomberg Radio. 0:06:37.839 --> 0:06:40.680 All right, Charlie, thank you. And finally, Bloomberg News has 0:06:40.760 --> 0:06:43.320 learned about another big mistake as City Group the bank 0:06:43.360 --> 0:06:47.800 almost transferred about six billion dollars to a customer's account 0:06:47.800 --> 0:06:50.680 in a fat finger error. The near miss happened in 0:06:50.720 --> 0:06:53.840 City's wealth management business rare till the staff member copied 0:06:53.880 --> 0:06:57.080 and pasted the recipient's account number where the dollar amount 0:06:57.080 --> 0:07:00.480 should have gone. This happened the same month or City 0:07:00.480 --> 0:07:04.240 Division accidentally credited eighty one trillion dollars to a client. 0:07:08.080 --> 0:07:09.280 Time now for a look at some of the other 0:07:09.360 --> 0:07:11.559 stories making news in New York and around the world, 0:07:11.560 --> 0:07:13.720 And for that we're joined by Bloomberg's Michael Barr. 0:07:13.840 --> 0:07:17.080 Michael, good morning, Good morning, Karen. The Senate voted Monday 0:07:17.200 --> 0:07:21.680 to confirm former wrestling executive Linda McMahon as Secretary of Education. 0:07:22.400 --> 0:07:25.200 Shield now had a department. President Trump has vowed to 0:07:25.240 --> 0:07:30.320 dismantle Randy Winingarten is president of the American Federation of Teachers. 0:07:30.120 --> 0:07:32.840 The partners that she has are the people who are 0:07:32.840 --> 0:07:36.480 in classrooms all across America. What we're asking her to 0:07:36.480 --> 0:07:40.560 do is work with us, not against us. Don't take 0:07:40.560 --> 0:07:44.080 a wrecking ball to the Department of Education, make cuts 0:07:44.080 --> 0:07:49.000 with a scalpel, not with a hatchet, and ultimately help 0:07:49.200 --> 0:07:50.680 us help children. 0:07:50.880 --> 0:07:54.200 Winegarden adds one out of every nine dollars that go 0:07:54.280 --> 0:07:57.880 to kids in school in America comes from the federal government. 0:07:58.400 --> 0:08:01.400 The top agent at the FBI New York Field Office 0:08:01.440 --> 0:08:03.920 said that he had been forced out of his job 0:08:04.360 --> 0:08:08.880 following clashes with Justice Department officials over Trump administration directives. 0:08:09.240 --> 0:08:13.000 In an email, James Denahey had told agents to dig 0:08:13.080 --> 0:08:16.400 in in the face of the Trump administration's firing of 0:08:16.400 --> 0:08:20.840 officials who investigated the January sixth Attech. Dennehee says he 0:08:20.920 --> 0:08:24.160 was told Friday to retire from his role. Officials are 0:08:24.240 --> 0:08:28.600 rushing to reschedule Marty Grass celebrations and warning revelers against 0:08:28.640 --> 0:08:32.679 bringing umbrellas and tents as powerful storms with a threat 0:08:32.679 --> 0:08:36.600 of tornadoes are expected to strike Louisiana and other parts 0:08:36.600 --> 0:08:39.840 of the South today. The Supreme Court is scheduled to 0:08:39.880 --> 0:08:44.840 hear the case Mexico filed against US gun manufacturers. Mexico 0:08:44.880 --> 0:08:48.880 alleges that Smith and Wesson and other manufacturers aided an 0:08:48.960 --> 0:08:52.760 embedded illegal gun trafficking in violation of the US law, 0:08:52.880 --> 0:08:57.400 which in turn harms Mexico. Former federal prosecutor and Loyola 0:08:57.480 --> 0:08:59.440 Law School professor Lorie Levinson. 0:09:00.000 --> 0:09:03.320 This might be an uphill battle, frankly for the Mexican government, 0:09:03.480 --> 0:09:06.240 because there are so many legal issues that the Supreme 0:09:06.280 --> 0:09:09.520 Court will look at, and frankly, the Supreme Court has 0:09:09.600 --> 0:09:12.960 been very open to gun rights in the last decade 0:09:13.080 --> 0:09:13.560 or so. 0:09:13.920 --> 0:09:16.760 Professor Levinson. The hearing marks the first time that the 0:09:16.800 --> 0:09:19.920 Supreme Court will consider a federal law known as the 0:09:20.000 --> 0:09:23.680 Protection of Lawful Commerce in Arms Act. The two thousand 0:09:23.679 --> 0:09:26.720 and five law provides a legal shield for gun companies 0:09:26.720 --> 0:09:29.480 from civil suits. Global news twenty four hours a day 0:09:29.600 --> 0:09:31.880 and whenever you want it with Bloomberg News Now. I'm 0:09:31.880 --> 0:09:34.360 Michael Barr, and this is Bloomberg kron. 0:09:34.320 --> 0:09:41.079 Or Ry Michael Barr. Thank you time now for the 0:09:41.080 --> 0:09:44.239 Bloomberg Sports up date, brought to you by try STANKOUDI. 0:09:44.280 --> 0:09:46.440 Here's John Stanshawer. John, Good morning, Goo Morning. 0:09:46.480 --> 0:09:48.160 Care's gonna be quite a fight to see who gets 0:09:48.160 --> 0:09:52.120 the last couple of playoff spots in the NHL's Eastern Conference. 0:09:52.200 --> 0:09:56.120 Right now, there are six teams separated by only four points. 0:09:56.400 --> 0:09:58.640 Rangers among those in the Hut. Night after a shutout 0:09:58.640 --> 0:10:00.480 win at the Garden, they were right back the MSG, 0:10:00.559 --> 0:10:03.520 this time against the Islanders. Will Cooley scored off his 0:10:03.640 --> 0:10:05.800 helmet in five minutes later first period. It was time 0:10:05.880 --> 0:10:08.600 for another will back to the other. 0:10:08.480 --> 0:10:09.160 Way, Carrick. 0:10:09.559 --> 0:10:11.200 Carrick dropped it off for Bugin. 0:10:11.520 --> 0:10:12.359 He starts. 0:10:15.800 --> 0:10:20.760 Will Morgan was a short headed goal against the Rangers. 0:10:20.960 --> 0:10:25.520 Aren't two nothing lead the Rangers. He loveth short handed 0:10:25.559 --> 0:10:28.880 golden season, second best in the league. 0:10:28.640 --> 0:10:29.360 Call on MSG. 0:10:29.440 --> 0:10:31.760 J Et Miller scored third period Art Semi pinera and 0:10:31.840 --> 0:10:34.720 empty ed of his twenty fifth. Twenty four hours after 0:10:34.840 --> 0:10:38.320 shutting out Nashville for nothing, the Rangers blank the Islanders 0:10:38.360 --> 0:10:40.200 for nothing, this time with a different goal in Igor 0:10:40.280 --> 0:10:43.280 Sisterkin twenty one saves his fourth shot out of the season. 0:10:43.320 --> 0:10:45.040 The Capitol's top to Attawa five to four and a 0:10:45.080 --> 0:10:47.480 shoot out the Knicks at the Garden tonight to play 0:10:47.480 --> 0:10:50.480 Golden State college basketball teams ran second and third of 0:10:50.480 --> 0:10:53.080 the country. Both won at home. Duke by thirty three 0:10:53.120 --> 0:10:56.440 over Wake Forest as the star freshman Cooper Flag scored 0:10:56.480 --> 0:10:59.800 twenty eight. Duke is eighteen and one in the ACC. 0:11:00.360 --> 0:11:02.600 Houston is eighteen and one of the Big twelve. The 0:11:02.640 --> 0:11:05.160 Cougars beat Kansas, who began the season Ranke number one. 0:11:05.200 --> 0:11:08.600 This was its eleventh loss. Saint John's doesn't play until Saturday. 0:11:08.880 --> 0:11:12.360 Red Storm keep moving up the rankings, now sixth highestins 0:11:12.440 --> 0:11:15.400 nineteen ninety one. The Yankees will begin the season without 0:11:15.440 --> 0:11:17.600 Luis Heal. The last season, pitched to a three and 0:11:17.600 --> 0:11:19.480 a half RA and was the American League Rookie of 0:11:19.480 --> 0:11:21.760 the Year. He's got a lot strain when the Yanks. 0:11:21.760 --> 0:11:25.079 Clark Schmidt had a similar injury last year. He missed 0:11:25.080 --> 0:11:27.959 three months. Max Fried started last night in Tampa. Yanks 0:11:28.000 --> 0:11:30.600 all over the Pirates twelve to three. Dom Smith drove 0:11:30.640 --> 0:11:32.839 in four runs. The Mets had only two hits. Won 0:11:32.920 --> 0:11:35.560 one tie with the Marlins. CODEI Senga and David Peterson 0:11:35.640 --> 0:11:40.360 team per five scorelessennings. John stash Ellen Bloomberg Sports Kerry Nathan. 0:11:42.679 --> 0:11:46.880 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM 0:11:47.000 --> 0:11:49.840 and around the world on Bloomberg dot Com and the 0:11:49.840 --> 0:11:52.960 Bloomberg Business app. This is Bloomberg day Break. 0:11:53.160 --> 0:11:56.400 Good morning, I'm Nathan Hager. The trade war is on. 0:11:56.600 --> 0:11:59.600 President Donald Trump has made good on threats to impost 0:11:59.640 --> 0:12:02.480 twenty five five percent tariffs on most imports from Canada 0:12:02.520 --> 0:12:05.199 and Mexico and to double the levy on all Chinese 0:12:05.280 --> 0:12:08.760 goods to twenty percent. The President says it's about stopping 0:12:08.800 --> 0:12:12.880 illegal immigration and drug flows and boosting US manufacturing. 0:12:13.360 --> 0:12:16.120 They can't come in and steal our money and steal 0:12:16.160 --> 0:12:19.240 our jobs, and take our factories and take our businesses 0:12:19.760 --> 0:12:23.040 and expect not to be punished, and they're being punished 0:12:23.040 --> 0:12:23.720 by tariffs. 0:12:23.760 --> 0:12:26.480 President Trump spoke there at a Winehouse news conference heard 0:12:26.480 --> 0:12:28.840 live on Bloomberg Radio this morning. We are joined by 0:12:28.840 --> 0:12:32.120 Bloomberg News Global Trade editor Brendan Murray. And Brendan, could 0:12:32.200 --> 0:12:37.320 we see trade flows up ended dramatically following this first 0:12:37.480 --> 0:12:40.280 major salvo in what looks like a new trade war. 0:12:40.320 --> 0:12:42.199 Good morning morning. 0:12:42.280 --> 0:12:45.200 Yeah, it could. It could happen fairly quickly. Now we 0:12:45.280 --> 0:12:49.160 haven't heard the retaliation yet from Mexico. That will be 0:12:49.200 --> 0:12:52.520 something to watch today and tomorrow. Mexico is, of course 0:12:53.040 --> 0:12:58.520 a big supplier of food products and consumer electronics and 0:12:58.640 --> 0:13:02.400 automobiles and and uh. And so we'll see how you know, 0:13:02.440 --> 0:13:04.000 a lot of the a lot of the food products 0:13:04.040 --> 0:13:06.920 are are perishable too, so you know, you can't really 0:13:06.960 --> 0:13:09.520 stick those in a warehouse for very long. So we'll 0:13:09.559 --> 0:13:15.040 see how the trade flows play out here. But it 0:13:15.480 --> 0:13:18.680 seems that all three sides are are kind of, you know, 0:13:19.120 --> 0:13:21.400 talking a big talk right now about how tough they're 0:13:21.400 --> 0:13:25.560 going to be on their retaliation. There's even some a 0:13:25.640 --> 0:13:27.880 Canadian politician who's saying, we're going to cut off your 0:13:27.920 --> 0:13:31.720 electricity supply from our province to into into the US. 0:13:32.160 --> 0:13:32.559 UH. 0:13:32.600 --> 0:13:35.160 So we'll see how you like that. So it's getting 0:13:35.559 --> 0:13:38.360 it's getting. It's I wouldn't call it, you know that 0:13:38.400 --> 0:13:42.440 the tone isn't you know, very very sharp just yet. 0:13:42.480 --> 0:13:45.120 But both sides are kind of sharpening up there, sharpening 0:13:45.200 --> 0:13:48.000 up the rhetoric. And and you know, we'll see how 0:13:48.160 --> 0:13:51.720 if this is a short run uh situation, or or 0:13:51.760 --> 0:13:54.480 something that turns into a more prolonged trade war that 0:13:54.559 --> 0:13:55.760 starts to hit the economy. 0:13:56.400 --> 0:13:59.320 Well, as we start to see these rhetorical knives get 0:13:59.360 --> 0:14:04.000 sharpened here or Brendan, we've heard Canada announce phased in 0:14:04.120 --> 0:14:06.840 tariffs on one hundred and seven billion dollars in US 0:14:06.840 --> 0:14:11.400 goods China with fifteen percent tariffs, mainly on US agriculture. 0:14:11.440 --> 0:14:14.160 What kind of impact could that have on the US economy. 0:14:15.120 --> 0:14:19.080 So China's uh, China's retaliation that they announced just a 0:14:19.080 --> 0:14:23.000 few hours ago was fairly reserved. It was on, you know, 0:14:23.120 --> 0:14:27.120 a tiny fraction of the goods that China imports from 0:14:27.120 --> 0:14:32.680 the US, but more symbolic than anything, they targeted agricultural products. 0:14:33.240 --> 0:14:37.480 US farmers and US farmers for years have tried to 0:14:37.520 --> 0:14:40.800 develop markets in China and to and to and to 0:14:40.960 --> 0:14:44.760 increase all the soybeans and and and all the wheat 0:14:44.840 --> 0:14:47.400 and crops that they that they that they ship overseas. 0:14:47.800 --> 0:14:51.320 China has been the big market for those at the 0:14:51.600 --> 0:14:55.680 at the moment, guess who's having a bumper harvest, Brazil. 0:14:56.080 --> 0:14:59.080 So it it if you if China says, look, we're 0:14:59.080 --> 0:15:03.320 going to slapff's on American agricultural products, the messages we've 0:15:03.320 --> 0:15:07.040 got somewhere else to buy from. So American farmers, you know, 0:15:07.560 --> 0:15:09.680 would be getting nervous about this. And I think that's 0:15:09.720 --> 0:15:12.120 why one of the reasons why you saw Trump post 0:15:12.160 --> 0:15:15.760 on social media yesterday something about farmers are going to 0:15:15.800 --> 0:15:17.280 do great because we're going to put We're going to 0:15:17.320 --> 0:15:20.480 put tariffs on all food food imports, and so American 0:15:20.480 --> 0:15:22.520 farmers are going to do great. So a bit of 0:15:22.600 --> 0:15:27.520 preemptive reassurance there, I think maybe the President Trump anticipating 0:15:27.560 --> 0:15:30.600 that China would come back and retaliate against, you know, 0:15:30.760 --> 0:15:31.880 the heartland of America. 0:15:32.280 --> 0:15:34.720 All about thirty seconds left, Brendon, what does this mean 0:15:34.760 --> 0:15:37.280 for the existing US trade deal with Canada and Mexico 0:15:37.320 --> 0:15:39.080 and is the door still open to a trade deal 0:15:39.120 --> 0:15:40.440 with China. 0:15:40.600 --> 0:15:45.000 Well, that's there's an interesting role that that trade deal, 0:15:45.080 --> 0:15:48.840 the USMCA previously NAFTA, plays into this. That's supposed to 0:15:48.560 --> 0:15:52.880 be renegotiated in twenty twenty six. This was the deal 0:15:52.920 --> 0:15:56.520 that Trump renegotiated in his first term. It's up for 0:15:56.560 --> 0:15:59.760 renegotiation in twenty twenty six. And so perhaps what the 0:16:00.160 --> 0:16:03.520 that the strategy here is to put Mexico and Canada 0:16:03.920 --> 0:16:07.400 on the back feet, hit them with these tariffs, drive 0:16:07.440 --> 0:16:11.080 them to an early renegotiation in more favorable terms to 0:16:11.120 --> 0:16:14.960 the US. That's one way some folks are speculating this 0:16:15.080 --> 0:16:18.600 could play out, that this is really just a kind 0:16:18.640 --> 0:16:22.760 of a flurry of things that the US could do 0:16:22.840 --> 0:16:26.440 to sort of enter those negotiations in the strongest position possible. 0:16:26.600 --> 0:16:30.000 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:30.040 --> 0:16:33.080 making news from Wall Street to Washington and beyond. 0:16:33.320 --> 0:16:35.720 Look for us on your podcast feed by six am 0:16:35.760 --> 0:16:39.160 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:39.400 --> 0:16:42.240 You can also listen live each morning starting at five 0:16:42.280 --> 0:16:45.000 am Wall Street Time on Bloomberg eleven three to zero 0:16:45.000 --> 0:16:47.880 in New York, Bloomberg ninety nine to one in Washington, 0:16:47.960 --> 0:16:51.880 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:52.120 --> 0:16:53.840 XM Channel one twenty one. 0:16:54.080 --> 0:16:56.800 Plus listen coast to coast on the Bloomberg Business app 0:16:56.840 --> 0:16:59.600 now with Apple CarPlay and Android Atto interfaces. 0:17:00.080 --> 0:17:02.960 Don't forget to subscribe to Bloomberg News Now. It's the 0:17:03.000 --> 0:17:06.160 latest news whenever you want it in five minutes or less. 0:17:06.440 --> 0:17:09.520 Search Bloomberg News Now on your favorite podcast platform to 0:17:09.520 --> 0:17:13.040 stay informed all day long. I'm Karen Moscow. 0:17:12.840 --> 0:17:15.359 And I'm Nathan Hager. Join us again tomorrow morning for 0:17:15.400 --> 0:17:17.320 all the news you need to start your day right 0:17:17.359 --> 0:17:20.560 here on Bloomberg Day Ray