Trump Unveils 25% Auto Tariff; White House Tries to Contain Signal Text Backlash

Bloomberg Audio Studios, Podcasts, Radio News. 0:00:10.000 --> 0:00:13.159 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.920 are the stories we're following today. 0:00:15.080 --> 0:00:18.080 Can we begin with the global trade war ratcheting up. 0:00:18.120 --> 0:00:21.479 President Donald Trump has announced a twenty five percent tariff 0:00:21.520 --> 0:00:24.920 on all car imports into the United States. The levy 0:00:24.960 --> 0:00:28.040 will apply to passenger vehicles and light trucks, as well 0:00:28.080 --> 0:00:32.000 as key parts like engines, transmissions, and electrical components. 0:00:32.400 --> 0:00:35.760 If parts are made in America and a car isn't, 0:00:36.159 --> 0:00:38.200 those parts are not going to be text or tariff, 0:00:38.800 --> 0:00:41.480 and we'll have very strong policing as far as that's concerned. 0:00:41.640 --> 0:00:43.319 For the most part, I think it's going to lead 0:00:43.360 --> 0:00:45.960 cars to be made in one location in and right now. 0:00:46.600 --> 0:00:48.960 A car would be made here, sent to Canada, sent 0:00:49.000 --> 0:00:51.680 to Mexico, sent to all over the place. It's ridiculous. 0:00:52.040 --> 0:00:54.680 In remarks heard here on Bloomberg, President Trump said the 0:00:54.760 --> 0:00:57.640 charges will take effect next Wednesday and come on top 0:00:57.680 --> 0:00:58.680 of any other duties. 0:00:59.200 --> 0:01:02.440 Well. Nathan reacts to the auto tariffs are pouring in 0:01:02.480 --> 0:01:05.880 from around the world. Canadian Prime Minister Mark Kearney says 0:01:05.880 --> 0:01:08.880 it's a direct attack on Canada's auto sector. 0:01:09.319 --> 0:01:12.920 Due This will hurt us, but through this period, by 0:01:12.959 --> 0:01:15.280 being together, we will emerge stronger. 0:01:15.760 --> 0:01:18.600 And Canadian Prime Minister Mark Kearney says that tariffs are 0:01:18.640 --> 0:01:22.320 a clear violation of the US Mexico Canada agreement that 0:01:22.360 --> 0:01:24.440 Trump signed during his first term. 0:01:24.600 --> 0:01:27.839 And Karen, we are seeing immediate reaction to the proposed 0:01:27.880 --> 0:01:32.200 auto tariffs. Stilantis, which makes the Jeep Compass SUV in Mexico, 0:01:32.319 --> 0:01:35.640 is down about six percent. We're seeing similar losses in Mercedes, 0:01:35.680 --> 0:01:39.080 Benz Group and BMW, and the European Union is preparing 0:01:39.160 --> 0:01:42.120 to retaliate. The EU has a range of options available, 0:01:42.120 --> 0:01:45.880 including retaliatory tariffs, as well as the Anti Coercion Instrument, 0:01:45.959 --> 0:01:50.160 the Enforcement Regulation targeting US technology and services companies and 0:01:50.320 --> 0:01:54.160 restricting access to the EU market for US financial firms. 0:01:54.400 --> 0:01:57.520 Well in the UK, Nathan Chancellor of the Exchequer Rachel 0:01:57.600 --> 0:02:00.320 Reeves told US moments ago that there were working with 0:02:00.360 --> 0:02:03.080 the Trump administration to make a deal on tariffs. 0:02:03.520 --> 0:02:07.240 I do understand the concerns of the US administration about 0:02:07.320 --> 0:02:12.160 countries that run larger, persistent surplaces with the US. The UK, though, 0:02:12.200 --> 0:02:14.560 is not one of those countries, which is why at 0:02:14.600 --> 0:02:18.120 the moment the UK and the US. After Prime Minister 0:02:18.200 --> 0:02:21.680 Kia Stomer's visit to meet the US President a couple 0:02:21.720 --> 0:02:25.639 of weeks ago, we are now in intensive discussions with 0:02:25.720 --> 0:02:30.040 the US administration a head of the increase in tariffs 0:02:30.200 --> 0:02:32.519 next week to try and secure an agreement. 0:02:33.040 --> 0:02:35.800 UK Chancellor of the Exchequer Rachel Reeves added that she 0:02:35.880 --> 0:02:38.960 believes a trade deal can be worked out between Britain 0:02:39.040 --> 0:02:40.120 and the United States. 0:02:40.280 --> 0:02:43.440 Now, Karen, Carmakers in Asia are getting hit this morning. 0:02:43.520 --> 0:02:47.040 Shares of Toyota, Nissan, and Honda all fell about two percent. 0:02:47.160 --> 0:02:50.040 Kia dropped more than three percent, Hondai was off more 0:02:50.040 --> 0:02:53.200 than four percent. Mazda plunged six percent. 0:02:53.680 --> 0:02:56.160 Well, Nathan, there could be a winner emerging from these 0:02:56.200 --> 0:02:58.520 auto tariffs, and we get that part of the story 0:02:58.560 --> 0:03:01.359 with Bloombergy's John Tucker and John Good Morning. 0:03:01.160 --> 0:03:04.760 Good Morning, Karen. That would be Tesla, run by billionaire 0:03:04.840 --> 0:03:08.600 Trump advisor Elon musk Is large factories in California and 0:03:08.680 --> 0:03:11.320 taxes that churn out all the cars it sells in 0:03:11.360 --> 0:03:14.000 the US. Now that will insulate it to a larger 0:03:14.000 --> 0:03:18.200 degree from President Trump's new levies. Tesla itself has been 0:03:18.240 --> 0:03:21.200 boasting this week about its US credentials of saying in 0:03:21.280 --> 0:03:23.840 a post on Acts that its models are quote the 0:03:23.880 --> 0:03:28.120 most American made cars. Still Elon Muss's Tesla won't go 0:03:28.320 --> 0:03:32.040 entirely unscathed. Between sixty and seventy five percent of the 0:03:32.080 --> 0:03:35.880 components that Tesla uses are manufactured in the US, depending 0:03:35.920 --> 0:03:38.840 on the model. This according to filing by the US 0:03:38.960 --> 0:03:42.440 National Highway Traffic Safety Administration, with the majority of the 0:03:42.600 --> 0:03:46.040 remaining parts they are sourced from Mexico. Now, with the 0:03:46.120 --> 0:03:48.640 value of the important parts kind of unclear at this point, 0:03:48.680 --> 0:03:52.480 the financial impact on Tesla is still unknown. In the 0:03:52.480 --> 0:03:55.000 pre market, you have shares of Tesla. They're actually down 0:03:55.080 --> 0:03:58.160 one percent, but that's still less than General Motors down 0:03:58.200 --> 0:04:02.040 over six percent and Ford those shares down over three percent. 0:04:02.280 --> 0:04:03.760 I'm John Tucker, Bloomberg Radio. 0:04:04.040 --> 0:04:07.320 Okay, John, thank you. While President Trump focuses on trade, 0:04:07.360 --> 0:04:10.800 his administration continues to face fallout from the signal chat 0:04:10.840 --> 0:04:15.160 that inadvertently included Atlantic journalist Jeffrey Goldberg. The magazine released 0:04:15.160 --> 0:04:18.720 The transcript of the conversation showed Defense Secretary Pete Heigseth 0:04:18.720 --> 0:04:21.599 giving a timetable of attacks on who they targets and Yemen, 0:04:21.680 --> 0:04:25.000 including the weapons used during the tariff announcement, President Trump 0:04:25.000 --> 0:04:26.800 said he's not downplaying the situation. 0:04:27.160 --> 0:04:29.480 Well, I don't know about downplaying the press upplays and 0:04:29.560 --> 0:04:31.400 I think it's all a witch Hunt's so I think 0:04:31.400 --> 0:04:32.160 it's a witch hunt. 0:04:32.200 --> 0:04:34.200 And the President says the chat did not amount to 0:04:34.240 --> 0:04:37.600 war plans or classified information, But some Republicans, like New 0:04:37.680 --> 0:04:40.719 York Congressman Mike Lawler, say those kinds of conversations need 0:04:40.800 --> 0:04:41.720 to be more secure. 0:04:42.080 --> 0:04:46.480 There is great potential, not just that somebody be mistakenly added, 0:04:46.520 --> 0:04:50.360 but we all know you know people screen grab. 0:04:50.360 --> 0:04:53.960 And Democratic Senator Elizabeth Warren says the incident raises even 0:04:54.040 --> 0:04:55.520 more questions. 0:04:55.480 --> 0:04:58.680 How many other times are they using signal and what 0:04:58.800 --> 0:05:01.839 are they using it for? So this is a moment. 0:05:02.760 --> 0:05:06.880 What need some of those congressional investigations. We need a 0:05:06.880 --> 0:05:10.800 hearing in the Senate, We need a hearing in the House. 0:05:11.080 --> 0:05:14.080 Senator Elizabeth Warren spoke with Bloomberg's David Gora. You can 0:05:14.080 --> 0:05:17.719 hear more of their conversation in the Bloomberg Big Take podcast. 0:05:18.240 --> 0:05:20.159 Well, we turn back to the markets now, Nathan, and 0:05:20.200 --> 0:05:23.000 stocks and Europe and Asia are lower on the planned 0:05:23.080 --> 0:05:26.600 Trump auto tariffs, futures and they're pretty much little changed 0:05:26.640 --> 0:05:28.760 after tech stocks let us sell off on Wall Street. 0:05:29.080 --> 0:05:33.440 Market strategists, including new Edge Welths Cameron Dawson, expects the 0:05:33.480 --> 0:05:35.240 market shoppiness to continue. 0:05:35.600 --> 0:05:37.680 We think that volatility is going to be a key 0:05:37.760 --> 0:05:41.479 feature of the market throughout this year, simply because even 0:05:41.520 --> 0:05:43.880 if we get that tear of clarity, we don't think 0:05:43.920 --> 0:05:46.800 that it's being fully captured in current earnings sessments, which 0:05:46.800 --> 0:05:48.839 are rund two hundred and seventy dollars a share for 0:05:48.880 --> 0:05:51.640 the full year. You're also still trading at about twenty 0:05:51.720 --> 0:05:54.120 and a half times forward, so there's not a lot 0:05:54.160 --> 0:05:57.240 of wiggle room for incremental bad news, which we think 0:05:57.360 --> 0:06:01.960 just translates into staying in this choppy wide range. 0:06:02.160 --> 0:06:05.279 New Edgewelts Camra and Dawson. This so called Magnificent seven 0:06:05.360 --> 0:06:08.480 led yesterday's to clines. They're on track for their worst 0:06:08.600 --> 0:06:10.000 quarter in three years. 0:06:10.120 --> 0:06:13.479 And Karen Minneapolis Fed president Neil Cashcar He says tariffs 0:06:13.480 --> 0:06:16.800 are causing a dramatic shift in confidence. He spoke at 0:06:16.800 --> 0:06:19.599 an event in Minnesota, been at They're Fed for ten years, 0:06:20.080 --> 0:06:23.640 and this is the most dramatic shift in confidence that 0:06:23.760 --> 0:06:26.920 I can recall, except for when COVID hit in March 0:06:26.920 --> 0:06:27.680 of twenty twenty. 0:06:27.920 --> 0:06:30.480 A lot of is uncertainty around the tariffs right now. 0:06:30.520 --> 0:06:33.160 Nobody knows how high are the tariff's going to go, 0:06:33.520 --> 0:06:35.960 what are they going to get applied to, what are 0:06:36.000 --> 0:06:38.320 other countries going to do, and how long are they 0:06:38.360 --> 0:06:39.200 going to be sustained? 0:06:39.360 --> 0:06:42.560 And Minneapolis Fed President Neil Cashcari says the central Bank 0:06:42.600 --> 0:06:44.920 has more work to do on lowering inflation. 0:06:48.360 --> 0:06:49.680 Time now for a look at some of the other 0:06:49.800 --> 0:06:52.159 stories making news in New York and around the world, 0:06:52.160 --> 0:06:54.719 And for that we're joined by Bloomberg's Michael Barr Michael, 0:06:54.720 --> 0:06:55.480 good Morning. 0:06:55.320 --> 0:06:57.880 Good Morning, Karen, and Appeals Court refused to lift an 0:06:58.000 --> 0:07:01.360 order keeping the Trump administration from deporting migrants to l 0:07:01.440 --> 0:07:06.839 Salvador using the Alien Enemies Act. Loyola law professor Lorie Levinson. 0:07:06.800 --> 0:07:09.000 The court said that it would not interfere at this 0:07:09.160 --> 0:07:12.000 point with the current band that said that, in fact, 0:07:12.040 --> 0:07:14.840 the people being deported had a right to some type 0:07:14.840 --> 0:07:18.120 of hearing even if they're being removed under the Alien 0:07:18.320 --> 0:07:19.280 Enemies Act. 0:07:19.600 --> 0:07:22.600 President Trump has been trying to use the seventeen ninety 0:07:22.640 --> 0:07:25.520 eight law to deport hundreds of people. The administration believes 0:07:25.520 --> 0:07:29.120 are affiliated with a Venezuelan gang. Meanwhile, a lawyer for 0:07:29.240 --> 0:07:33.480 a Turkish national and doctoral student at Tufts University says 0:07:33.520 --> 0:07:36.640 she has been detained by Department of Homeland Security agents 0:07:36.640 --> 0:07:39.760 without explanation. A lawyer for the thirty year old woman 0:07:39.840 --> 0:07:43.400 says she had just left her home in Somerville, Massachusetts, 0:07:43.400 --> 0:07:47.200 on Tuesday when she was stopped by agents. Four US 0:07:47.200 --> 0:07:50.720 soldiers in a vehicle went missing in eastern Lithuania, where 0:07:50.760 --> 0:07:54.200 authorities have been carrying out a search and rescue operation 0:07:54.360 --> 0:07:58.360 since Tuesday. The Baltic nation's Armed Forces said no deaths 0:07:58.400 --> 0:08:02.920 had been confirmed as the effort continued. NATO Secretary General 0:08:03.040 --> 0:08:07.680 Mark Rude had earlier signaled that the service members had died, 0:08:07.760 --> 0:08:10.960 but a spokesperson for the alliance said he was referring 0:08:10.960 --> 0:08:15.120 to news reports and apologized for any confusion. In Waterbury, Connecticut, 0:08:15.200 --> 0:08:17.640 the woman accused of holding her step son captive for 0:08:17.760 --> 0:08:21.600 decades appeared before judge. The stepmother, fifty six year old 0:08:21.680 --> 0:08:25.640 Kimberly Sullivan, faces kidnapping and assault charges. The step son, 0:08:25.680 --> 0:08:28.640 now thirty two years old, was reportedly held in the 0:08:28.680 --> 0:08:31.760 home for over twenty years with little or no food, 0:08:31.800 --> 0:08:34.960 before he reportedly set fire to his room to escape 0:08:35.000 --> 0:08:38.319 last month. Officials say he weighed just sixty eight pounds. 0:08:38.360 --> 0:08:42.520 After he was rescued. The man's biological mother, Tracy Valerand, 0:08:42.800 --> 0:08:45.760 also came to the court. She spoke to reporters, including 0:08:45.800 --> 0:08:47.160 ABC seven, What did. 0:08:47.040 --> 0:08:49.160 You know about Kimberly Sullivan before this had happened? 0:08:49.240 --> 0:08:51.679 Nothing? Absolutely nothing. 0:08:51.920 --> 0:08:54.880 My son said that it started when he was around three. 0:08:55.080 --> 0:08:57.880 That would be about the time that those two men. 0:08:58.480 --> 0:09:02.800 Sullivan's attorney John, it is those allegations are serious. 0:09:03.000 --> 0:09:06.000 With those allegations are made by one person, I understand 0:09:06.000 --> 0:09:08.880 the whole world has jumped on those allegations and has 0:09:08.920 --> 0:09:12.160 already convicted my client with the good thing about America 0:09:12.200 --> 0:09:13.200 is that's not how we work. 0:09:13.800 --> 0:09:17.560 Suloman received a court continuation until tomorrow. Global News twenty 0:09:17.600 --> 0:09:19.560 four hours a day and whenever you want it with 0:09:19.600 --> 0:09:22.760 Bloomberg News Now. I'm Michael Barrn. This is Bloomberg Karen. 0:09:22.880 --> 0:09:29.599 All right, Michael barr thank you time now for the 0:09:29.600 --> 0:09:32.840 Bloomberg Sports Update, brought to you by Tri State Audi. 0:09:32.960 --> 0:09:35.079 Here's John Staneshauer. John, good morning. 0:09:35.120 --> 0:09:37.120 Do you want to careen Hope Springs e turnal on 0:09:37.320 --> 0:09:40.160 opening day, five months after the Mets and Yankee season 0:09:40.280 --> 0:09:42.439 both ended with the loss of the Dodgers, Mets in 0:09:42.480 --> 0:09:45.400 the NLCS, Yanks in the World Series. Big news of 0:09:45.400 --> 0:09:48.320 the offseason was one Soto going from one New York 0:09:48.320 --> 0:09:51.320 team to the other. Sodo's debut comes today in Houston, 0:09:51.679 --> 0:09:53.839 also going for the Yanks to the Mets with Clay Holmes, 0:09:53.880 --> 0:09:56.520 he was a Yankee reliever. He's the Mets opening day 0:09:56.520 --> 0:09:59.520 starter with the Garrett Cole injury. Carlos dan starts for 0:09:59.520 --> 0:10:01.920 the Yanks at the Stadium ents Milwaukee. The Yanks are 0:10:01.960 --> 0:10:05.600 using Austin Wells as their leadoff hitter. Today will be 0:10:05.600 --> 0:10:09.920 the first time in Yankee history spinning over eighteen thousand games, 0:10:09.920 --> 0:10:12.800 that a catcher has hit leadoff. At the Guarden, Knicks 0:10:12.800 --> 0:10:14.880 had a fourteen point lead in the first half, but 0:10:15.000 --> 0:10:17.600 the Clippers had a forty point third quarter. LA won 0:10:17.640 --> 0:10:20.880 one twenty six to one thirteen. James Harden scored twenty nine. 0:10:20.920 --> 0:10:23.520 He had three straight three pointers in that third quarter. 0:10:23.559 --> 0:10:27.400 At Barkley's, the Nets fiftieth loss, beaten by Toronto by thirty. 0:10:27.440 --> 0:10:30.720 The Celtics won by thirty in Phoenix. The Lakers won 0:10:30.760 --> 0:10:33.680 at Indiana on the Lebron James Tippin at the Buzzer 0:10:33.679 --> 0:10:35.600 at Ubs, the Islanders had a two to one lead, 0:10:36.040 --> 0:10:38.520 then lost to Vancouver five to two. The Devils won 0:10:38.600 --> 0:10:42.040 five to three at Chicago. The NCAA Tournament resumes tonight 0:10:42.080 --> 0:10:46.520 with doubleheaders in Newark and San Francisco. After thirty one wins, 0:10:46.520 --> 0:10:49.320 but the Upset lost last weekend Saint John's. Looking towards 0:10:49.360 --> 0:10:52.760 next season, the Red Storm just added Jason sen On, 0:10:52.920 --> 0:10:55.679 transferring in after one season at Arizona State a year ago. 0:10:56.200 --> 0:10:57.280 He was a top recruit. 0:10:57.600 --> 0:10:59.960 Russell Wilson set court side of the next game last night. 0:11:00.160 --> 0:11:03.200 You get good seats when you're the Giants starting quarterback. 0:11:03.520 --> 0:11:06.040 Thankspecting him, you get started and coming here and degraded 0:11:06.120 --> 0:11:07.839 rock and roll every day. I think, you know, it's 0:11:07.840 --> 0:11:09.520 a bit of lead. I think this team is really 0:11:09.559 --> 0:11:11.560 looking for somebody to lead them in every way in 0:11:11.640 --> 0:11:14.280 terms of the process and you know, an off season, 0:11:14.360 --> 0:11:17.360 during the season, our habits and our thought process and 0:11:17.400 --> 0:11:20.120 how we create you know, a great winning culture and 0:11:20.200 --> 0:11:21.959 how do we continue to establish that. 0:11:22.040 --> 0:11:24.760 Wellson Saider's contract yesterday. The big question now the Giants 0:11:24.800 --> 0:11:27.760 do they still draft a quarterback next month? John Stashawer 0:11:27.800 --> 0:11:29.400 Bloomberg Sports Karen Ethan. 0:11:31.480 --> 0:11:35.679 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:35.800 --> 0:11:38.640 and around the world on Bloomberg dot Com and the 0:11:38.640 --> 0:11:41.760 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:41.920 --> 0:11:45.319 Good morning, I'm Nathan Hager. As President Trump revs up 0:11:45.320 --> 0:11:47.440 the trade war with less than a week until the 0:11:47.480 --> 0:11:51.360 reciprocal tariff announcement, the President has signed a proclamation imposing 0:11:51.400 --> 0:11:55.400 a twenty five percent duty on automobile imports, and he's 0:11:55.440 --> 0:11:58.440 threatening even more on Europe and Canada if they act 0:11:58.480 --> 0:11:59.400 against the US. 0:12:00.000 --> 0:12:02.080 This is very exciting to me. This is the automobile 0:12:02.120 --> 0:12:07.240 industry and this will continue to spur growth like you 0:12:07.280 --> 0:12:08.120 haven't seen before. 0:12:08.520 --> 0:12:10.760 And that was the President as he signed the proclamation 0:12:10.840 --> 0:12:13.760 inside the Oval Office and remarks heard here on Bloomberg 0:12:13.840 --> 0:12:17.360 this morning. We were joined by Bloomberg's Kevin Whitelob Kevin, 0:12:17.400 --> 0:12:21.160 we know US automakers had lobbied against this tariff pretty hard, 0:12:21.160 --> 0:12:23.000 but it looks now as though that has fallen on 0:12:23.080 --> 0:12:25.520 deaf ears. So how is this twenty five percent levee 0:12:25.600 --> 0:12:26.520 going to work? Good morning? 0:12:26.960 --> 0:12:29.800 Well, I think you know this is still something everyone's 0:12:29.840 --> 0:12:33.200 still trying to make sense of the levy applies to, 0:12:34.040 --> 0:12:36.440 you know, imports of cars made outside the US and 0:12:36.520 --> 0:12:39.479 a number of auto parts. There are some very limited exclusions, 0:12:40.160 --> 0:12:44.120 but it goes into effect next week, which basically on 0:12:44.160 --> 0:12:46.120 the same day that Trump has said to you, announce 0:12:46.480 --> 0:12:49.240 another flurry of tariffs that's going to be what he's 0:12:49.280 --> 0:12:52.679 calling reciprocal tariffs. These are ones that are supposed to 0:12:52.760 --> 0:12:56.440 apply broadly across sectors across the globe. So there's these 0:12:56.600 --> 0:12:59.560 layers and layers and layers of varying tariffs that are 0:12:59.600 --> 0:13:03.720 starting to come into effect and be announced. And you know, 0:13:03.800 --> 0:13:06.440 I think Europe and the rest of the world are 0:13:06.440 --> 0:13:10.160 sitting here trying to figure out, so is this real 0:13:10.280 --> 0:13:13.800 and is this going to stick? Or are there negotiations 0:13:13.840 --> 0:13:16.320 and other conversations to be had down the line to 0:13:16.400 --> 0:13:16.760 that point. 0:13:16.840 --> 0:13:20.760 I mean, we've already had conversations. The EU Trade chief 0:13:21.040 --> 0:13:24.680 was in Washington, it has been in Washington this week, 0:13:24.720 --> 0:13:28.760 and now we have this truth social post overnight that 0:13:29.120 --> 0:13:32.440 the European Union in Canada could face even more tariffs 0:13:32.480 --> 0:13:35.079 if they work together against the US. How to make 0:13:35.120 --> 0:13:35.760 sense of all this? 0:13:35.880 --> 0:13:39.240 Kep, Yeah, I mean we know that the EU officials 0:13:39.320 --> 0:13:42.679 were having you know, reasonably intensive conversations with folks in 0:13:43.040 --> 0:13:45.480 the US, but it was all they came away from it, 0:13:45.600 --> 0:13:47.400 you know, convinced that, well, they weren't going to be 0:13:47.440 --> 0:13:49.400 able to head anything off. This was all going to 0:13:49.440 --> 0:13:52.880 go into effects. So the conversations will obviously continue down 0:13:53.360 --> 0:13:55.720 down the line. So I think they were a little discouraged. 0:13:57.000 --> 0:14:00.240 But you know, I think there's still some you know, 0:14:00.480 --> 0:14:03.200 uncertainty about just what we're going to see from these 0:14:03.240 --> 0:14:07.000 tariffs next week. The you know, what we've heard is 0:14:07.080 --> 0:14:10.080 the EU is expecting something in sort of double digits 0:14:10.360 --> 0:14:13.760 by way of percentages for for what these other across 0:14:13.800 --> 0:14:16.320 the board teriffs are going to be. But what that means, 0:14:16.320 --> 0:14:18.800 what kinds of exclusions, how it's going to work, That 0:14:18.920 --> 0:14:21.480 is still all entirely unclear one way. 0:14:21.400 --> 0:14:21.720 Or the other. 0:14:21.800 --> 0:14:24.720 If this all sticks together and sticks, you know, and 0:14:24.760 --> 0:14:26.640 Trump sticks with it, it is going to have a 0:14:26.760 --> 0:14:31.120 dramatic impact on US companies and European companies, on consumers 0:14:31.160 --> 0:14:35.680 in various places, and on the economies and in the 0:14:35.920 --> 0:14:38.240 in the short to medium term, it does look like 0:14:38.280 --> 0:14:41.920 it's going to be disruptive and potentially painful. Trump's you know, 0:14:42.000 --> 0:14:44.040 has said that in the long term. He thinks it's 0:14:44.040 --> 0:14:47.640 going to help bring manufacturing and other jobs back to 0:14:47.680 --> 0:14:52.120 the US, But it's not really clear that how much 0:14:52.160 --> 0:14:55.080 turmoil is going to take place then and what the 0:14:55.280 --> 0:14:57.080 what the fallout from that is, What. 0:14:57.080 --> 0:15:00.000 Are the US trade partners considering in terms of reaction, 0:15:00.040 --> 0:15:02.760 action or even retaliation against these tariffs. 0:15:02.960 --> 0:15:06.520 Yeah, the EU has been working on various retaliation plans 0:15:06.560 --> 0:15:09.400 for a while, and so we know that they've been 0:15:09.480 --> 0:15:11.840 very closely held, so we don't know all of the details, 0:15:11.880 --> 0:15:14.520 but we do know that they're essentially ready to go. 0:15:14.640 --> 0:15:17.960 But because Trump is sort of rolling you know, things 0:15:18.000 --> 0:15:20.880 out one after the other. First we had stealing aluminum tariffs, 0:15:20.960 --> 0:15:22.720 now we have the auto tariffs. Then we're going to 0:15:22.760 --> 0:15:27.120 have these reciprocal tariffs. He's talked about pharmaceutical tariffs. They 0:15:27.240 --> 0:15:28.840 kind of want to wait and get a bunch of 0:15:28.960 --> 0:15:32.120 see see what he rolls out, at least through the 0:15:32.360 --> 0:15:36.400 next week, step back, look at it, figure out is 0:15:36.400 --> 0:15:39.880 there a negotiation or not, and if there's not, you know, 0:15:40.200 --> 0:15:43.040 come and hit with with some firm retaliation. And so 0:15:43.120 --> 0:15:46.240 I think that, you know, maybe by mid month, late month, 0:15:46.320 --> 0:15:49.000 late April, I think we'll see what the EU is 0:15:49.040 --> 0:15:50.840 actually going to do, but it may take them a 0:15:50.880 --> 0:15:53.720 little while. They are also trying to find ways to 0:15:53.920 --> 0:15:57.320 not provoke a more severe reaction, and there's some more 0:15:57.360 --> 0:16:00.360 severe steps in the first place by by Trump. Let 0:16:00.400 --> 0:16:02.800 them get through this and then they'll come back. 0:16:02.560 --> 0:16:03.680 With their response. 0:16:03.920 --> 0:16:07.360 This is Bloomberg Daybreak, your morning podcast on the stories 0:16:07.440 --> 0:16:10.440 making news from Wall Street to Washington and beyond. 0:16:10.720 --> 0:16:13.120 Look for us on your podcast feed by six am 0:16:13.160 --> 0:16:16.560 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:16:16.760 --> 0:16:19.600 You can also listen live each morning starting at five 0:16:19.640 --> 0:16:22.360 am Wall Street time on Bloomberg eleven three to zero 0:16:22.360 --> 0:16:25.280 in New York, Bloomberg ninety nine to one in Washington, 0:16:25.320 --> 0:16:29.280 Bloomberg ninety two nine in Boston, and nationwide on serious 0:16:29.480 --> 0:16:31.160 XM Channel one twenty one. 0:16:31.440 --> 0:16:34.160 Plus listen coast to coast on the Bloomberg Business app 0:16:34.200 --> 0:16:37.040 now with Applecarplay and Android Atto interfaces. 0:16:37.240 --> 0:16:40.240 And don't forget to subscribe to Bloomberg News Now. 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