Trump's Tariffs: Everything You Need to Know

Bloomberg Audio Studios, Podcasts, radio news. 0:00:10.039 --> 0:00:13.200 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.960 are the stories we're following today. 0:00:15.360 --> 0:00:18.760 Karen, the Global Sella follows the announcement that Wall Street 0:00:18.800 --> 0:00:22.280 and the world had been waiting for four weeks. President 0:00:22.320 --> 0:00:25.560 Trump is raising tariffs around the world on a day 0:00:25.600 --> 0:00:28.200 he is dubbed Liberation Day for America. 0:00:28.440 --> 0:00:32.319 April second, twenty twenty five will forever be remembered as 0:00:32.360 --> 0:00:38.480 today American industry was reborn, the day America's destiny was reclaimed, 0:00:39.080 --> 0:00:44.040 and the day that we began to make America wealthy again. 0:00:45.000 --> 0:00:47.400 In remarks from the White House Rose Garden heard here 0:00:47.400 --> 0:00:50.559 on Bloomberg, the President announced at least a ten percent 0:00:50.640 --> 0:00:54.200 tariff on all exporters to the US. About sixty nations 0:00:54.200 --> 0:00:57.240 will see even higher duties. The biggest target of all 0:00:57.520 --> 0:01:00.840 is China. The President says, Beijing charges the US an 0:01:00.840 --> 0:01:02.920 effective sixty seven percent rate. 0:01:03.560 --> 0:01:06.120 So sixty seven percent, so we're going to be charging 0:01:06.520 --> 0:01:09.480 a discounted reciprocal tariff of thirty four percent. 0:01:09.520 --> 0:01:09.880 I think. 0:01:10.319 --> 0:01:13.240 In other words, they charge us we judge m chuge mls. 0:01:13.319 --> 0:01:14.720 So how could anybody be upset? 0:01:14.920 --> 0:01:19.600 President Trump is also slapping higher duties on the European Union, Japan, Vietnam, 0:01:19.640 --> 0:01:23.560 and more. All together, Bloomberg Economics estimates the effective tax 0:01:23.600 --> 0:01:26.440 rate on more than three trillion dollars in imported goods 0:01:26.640 --> 0:01:29.320 could rise to about twenty three percent. That is the 0:01:29.400 --> 0:01:31.200 highest in more than a century. 0:01:31.800 --> 0:01:35.120 Well iven, President Trump's tariffs have drawn a sharp reaction 0:01:35.240 --> 0:01:38.959 on Capitol Hill. House Minority Leader Hankem Jeffries spoke out 0:01:39.040 --> 0:01:41.600 even before the president's announcement. 0:01:41.360 --> 0:01:45.080 This is not liberation Day, It's recession day. 0:01:46.959 --> 0:01:49.600 In the United States of America. That's what the Trump 0:01:49.720 --> 0:01:53.440 tariffs are going to do, crash the economy. 0:01:53.840 --> 0:01:57.880 How's Minority Leader Hankem Jeffries. Republicans are mostly standing behind 0:01:57.920 --> 0:02:00.880 the president. Ashley Davis is a GEOP. He's strategist and 0:02:00.960 --> 0:02:02.400 partner at S three Group. 0:02:02.600 --> 0:02:04.920 He's ran on this for the last four years. 0:02:04.960 --> 0:02:07.240 Really is that he needs to make sure that the 0:02:07.280 --> 0:02:11.560 other countries are paying what they deserve Republicans strategist Ashley Davis. 0:02:11.600 --> 0:02:15.160 But not every Republican is on board. Kentucky Senator Ran 0:02:15.320 --> 0:02:18.679 Paul says tariffs are just another tax on Americans. 0:02:19.000 --> 0:02:21.880 Republicans used to be in Conservatives and particularly used to 0:02:21.880 --> 0:02:24.200 be against new taxes. I don't think it's going to 0:02:24.200 --> 0:02:25.880 be good for us politically, but it's not good for 0:02:25.880 --> 0:02:26.560 the country either. 0:02:27.000 --> 0:02:30.359 Senator Ran Paul and three other Republicans joined with Democrats 0:02:30.360 --> 0:02:33.440 on a bill opposing President Trump's tariffs on Canada. The 0:02:33.480 --> 0:02:36.040 bill is not likely to pass in the House. 0:02:35.919 --> 0:02:39.880 Well, Karen, President Trump's historic action risks inducing a worldwide 0:02:39.919 --> 0:02:43.040 trade war marked by tit for tax strikes. We spoke 0:02:43.120 --> 0:02:46.280 with Treasury Secretary Scott Besson, who urged other countries not 0:02:46.480 --> 0:02:47.400 to fight back. 0:02:47.680 --> 0:02:51.480 I would advise none of the countries to panic. I 0:02:51.560 --> 0:02:56.120 wouldn't try to retaliate because as long as you don't retaliate, 0:02:56.320 --> 0:02:59.480 this is the high end of the number, and I 0:02:59.520 --> 0:03:03.560 think there could have certainty that this is the number 0:03:03.680 --> 0:03:04.720 barring retaliation. 0:03:05.000 --> 0:03:07.560 Treasury Secretary Scott Besson went on to leave the door 0:03:07.600 --> 0:03:11.200 open to negotiations, telling Bloomberg quote, We'll see with regard 0:03:11.280 --> 0:03:13.440 to further talks. You can hear the full interview with 0:03:13.440 --> 0:03:16.080 Scott Besant on the Bloomberg Talks podcast and watch it 0:03:16.120 --> 0:03:18.800 on the Bloomberg podcast page on YouTube. 0:03:19.280 --> 0:03:22.799 So, Nathan, let's get the reaction from other countries around 0:03:22.880 --> 0:03:26.160 the world. Our first stop brings US to Asia, where 0:03:26.320 --> 0:03:28.960 China has been the biggest target of Trump tariffs, and 0:03:29.000 --> 0:03:32.280 Bloomberg deal Desis joins US from Hong Kong with more Jill. 0:03:32.840 --> 0:03:35.360 Yes, well, I think it's a lot to really digest 0:03:35.360 --> 0:03:37.760 here out of Asia. On the one hand, you do 0:03:37.880 --> 0:03:42.080 see those really high tariffs on China. This thirty four 0:03:42.160 --> 0:03:45.000 percent increase that Trump is now putting on China. If 0:03:45.040 --> 0:03:47.360 you were to take that into tality with all of 0:03:47.400 --> 0:03:50.520 the other levees that Trump has put on China that 0:03:50.800 --> 0:03:53.400 the US has put on China over the last several 0:03:53.440 --> 0:03:56.240 months years, you're looking at somewhere in the neighborhood of 0:03:56.440 --> 0:03:58.840 the average US tariff on Chinese goods being at least 0:03:58.880 --> 0:04:03.040 sixty five percent according to some economists. Bloomberg Economics estimates 0:04:03.040 --> 0:04:05.360 that as a result, that could lead to a one 0:04:05.400 --> 0:04:08.440 to two percentage point loss to growth in China. So 0:04:08.600 --> 0:04:11.560 certainly a big metric there that you're really looking at. 0:04:11.600 --> 0:04:14.280 Of course, we haven't really heard from China yet what 0:04:14.400 --> 0:04:18.479 their definitive actions will be to counter these tariffs. The 0:04:18.680 --> 0:04:21.200 Ministry of Foreign Affairs has said that there are going 0:04:21.200 --> 0:04:23.040 to be measures coming, we're just waiting to see them. 0:04:23.080 --> 0:04:25.800 But I would draw your attention, Karen too, elsewhere in 0:04:25.839 --> 0:04:29.760 Asia where you're also seeing incredibly high rates and likely 0:04:29.839 --> 0:04:32.960 even you know, higher economic shocks. Vietnam, for example, they 0:04:33.000 --> 0:04:35.560 were hit with a forty six percent tariff in this 0:04:35.680 --> 0:04:38.880 latest round. I mean, this is a country that you 0:04:38.920 --> 0:04:41.719 know is incredibly export dependent. They're among the world's most 0:04:41.760 --> 0:04:44.920 trade dependent nations. Or exports were equivalent to nearly ninety 0:04:44.920 --> 0:04:47.679 percent of economic output. I think that's why you're seeing 0:04:47.720 --> 0:04:50.719 such a big market reaction in that particular country today. So, 0:04:51.000 --> 0:04:53.159 you know, just a couple of examples there, but obviously 0:04:53.200 --> 0:04:56.279 all across Asia, we're seeing a lot of different economic shocks, 0:04:56.320 --> 0:04:59.440 just as nations respond to these tariffs that just been announced. 0:05:00.360 --> 0:05:03.240 Jill desis with the reaction from Hong Kong. Jill, thank you. 0:05:03.360 --> 0:05:06.560 Now let's head to Europe get the reaction there. Bloomberg Daybreak, 0:05:06.560 --> 0:05:10.520 you're a banker. Caroline Hepger is in London with the latest. 0:05:10.560 --> 0:05:12.919 Good morning, Caroline, good morning, Nathan and Karen. 0:05:12.960 --> 0:05:16.039 President Trump called the EU pathetic again and that the 0:05:16.080 --> 0:05:19.560 block rips off the US, as he imposed twenty percent 0:05:19.640 --> 0:05:23.640 tariffs on EU goods exported to America. The EU argues 0:05:23.680 --> 0:05:26.839 that America exports plenty of its services to the block 0:05:27.120 --> 0:05:29.560 and that it is the biggest single market in the 0:05:29.600 --> 0:05:32.200 world now. EU trade ministers are due to meet on 0:05:32.240 --> 0:05:35.480 Monday to discuss their response. Meanwhile, in the early hours 0:05:35.480 --> 0:05:39.279 this morning, Commissioned President as to Leavondeline warned that US 0:05:39.320 --> 0:05:42.160 actions would deal a blow to the global economy, and 0:05:42.240 --> 0:05:44.799 she urged further negotiations. 0:05:45.279 --> 0:05:48.400 We have always been ready to negotiate with the United 0:05:48.480 --> 0:05:52.520 States to remove the remaining barriers to transatlantic trade. At 0:05:52.520 --> 0:05:56.480 the same time, we are prepared to respond. We are 0:05:56.640 --> 0:06:00.680 already finalizing the first package of countermeasures in response to 0:06:00.800 --> 0:06:05.240 tariff's on steel, and we're now preparing for further countermeasures 0:06:05.440 --> 0:06:08.400 to protect our interests and our businesses. 0:06:08.680 --> 0:06:14.080 If negotiations fails, Vonderline speaking there the tariffs could wipe 0:06:14.120 --> 0:06:16.719 out the growth forecast by the ECB for this year 0:06:17.000 --> 0:06:20.120 and in twenty twenty six. Markets now see another rate 0:06:20.240 --> 0:06:24.080 cut in April as likely. Bloomberg Economics sees the tariffs 0:06:24.120 --> 0:06:27.320 cutting EU goods exports to the US by half in 0:06:27.400 --> 0:06:30.839 the medium term. By comparison, here in the UK, we 0:06:30.920 --> 0:06:34.839 were dealt with a bit more leniently, a ten percent tariff. 0:06:35.080 --> 0:06:38.440 Some including business lobby see it as a benefit from 0:06:38.440 --> 0:06:41.799 Prime Minister Keir Starmer's pragmatic approach to the White House. 0:06:41.920 --> 0:06:44.800 The UK Trade Secretary Jonathan Reynolds has told Bloomberg just 0:06:44.800 --> 0:06:48.200 this morning that Britain is still confident that tariffs will 0:06:48.240 --> 0:06:52.039 come off, and yet the US is inflicting pain on 0:06:52.080 --> 0:06:55.520 some of its closest allies. All told, it's more than 0:06:55.640 --> 0:06:56.960 just an economic shock. 0:06:57.120 --> 0:06:59.840 All right, Caroline, thank you well early Trump to targets 0:07:00.080 --> 0:07:03.840 hitded On in Mexico escaped the new round of tariff announcements. 0:07:03.880 --> 0:07:06.080 We spoke with Ontario Premier Doug Ford. 0:07:06.839 --> 0:07:10.080 I would highly recommend to the Prime Minister not the 0:07:10.160 --> 0:07:15.000 retaliate and let's carry on a strong relationship. Let's build 0:07:15.280 --> 0:07:20.360 the aim can fortress American Canadian fortress around both countries 0:07:20.400 --> 0:07:24.000 and be the wealthiestmans, prosperous, safest two countries in the world. 0:07:24.440 --> 0:07:28.000 Ontario Premier Doug Ford, speaking of the Bloomberg's Balance of power. 0:07:28.240 --> 0:07:31.240 While no new tariffs were announced to other levies Trump 0:07:31.320 --> 0:07:35.440 has already imposed on Canadian and Mexican goods remain intact. 0:07:35.200 --> 0:07:37.480 And Karen Well stocks are selling off around the world. 0:07:37.520 --> 0:07:40.280 The US has been the hardest hit so far. Let's 0:07:40.280 --> 0:07:43.240 continue our coverage now with Bloomberg's John Tucker. 0:07:43.360 --> 0:07:45.800 John, all right, Nathan, Let's do the biggest losers in 0:07:45.840 --> 0:07:48.600 the US. These are the companies most exposed in that 0:07:48.840 --> 0:07:51.320 source a lot of their products from Asia, such as 0:07:51.440 --> 0:07:55.200 Apple and some of its magnificent seven cohorts of the 0:07:55.200 --> 0:07:58.160 new tariffs will reach thirty four percent for China. Apple 0:07:58.360 --> 0:08:02.320 still produces the mudjority of its US OL devices in 0:08:02.440 --> 0:08:07.080 Chinese factories. India, where Apple's increasingly building iPhones and air pods, 0:08:07.400 --> 0:08:10.600 that's getting a twenty six percent TEARFF. And then there's Vietnam, 0:08:10.640 --> 0:08:14.040 where the company now makes air pods, iPads, Apple watches, 0:08:14.080 --> 0:08:16.840 and max that'll be hit with a forty six percent tax. 0:08:17.160 --> 0:08:17.360 Now. 0:08:17.440 --> 0:08:20.480 Apple shares this morning in the pre market down close 0:08:20.560 --> 0:08:24.920 to seven percent. Then there's in Vidia. In Vidia the 0:08:24.960 --> 0:08:28.560 most actively traded pre market. It relies on China for 0:08:28.680 --> 0:08:32.079 AI Chip sales of those shares right now down three 0:08:32.240 --> 0:08:35.240 point three percent. Let's move on to the world's largest 0:08:35.240 --> 0:08:38.600 footwear and apparel companies also facing a shock to their 0:08:38.600 --> 0:08:42.400 supply chains. Nike makes many of its sneakers in Vietnam, 0:08:42.920 --> 0:08:46.320 and Nike shares pre market they are down eight point 0:08:46.400 --> 0:08:50.199 four percent. Lululemon Athletico, which makes forty percent of its 0:08:50.200 --> 0:08:54.880 products in Vietnam seventeen percent in Cambodia, tumbled almost ten 0:08:54.920 --> 0:08:58.400 percent in late trading. Shares of Abercrombie and Fitch, they 0:08:58.400 --> 0:09:01.160 get thirty five percent of their merchandise from Vietnam A 0:09:01.280 --> 0:09:04.839 fell seven point seven percent. And then Gap, which buys 0:09:04.880 --> 0:09:08.240 twenty seven percent of its goods from Vietnamese factories at 0:09:08.360 --> 0:09:12.559 nineteen percent from Indonesia. That's slid about eleven percent. You 0:09:12.640 --> 0:09:15.080 know you yor income, John Tucker, Bloomberg Radio. 0:09:15.000 --> 0:09:17.880 All right, John, thank you well. Shortly after midnight, US 0:09:17.960 --> 0:09:21.640 auto import tariffs went into effect. Meanwhile, one industry was 0:09:21.679 --> 0:09:24.640 spared for now, and Bloomberg Lisa Matteo joins us with 0:09:24.720 --> 0:09:26.240 the very latest Lisa. 0:09:26.080 --> 0:09:26.680 Hey there, Karen. 0:09:26.720 --> 0:09:29.200 So let's start with the most recent chain, the twenty 0:09:29.200 --> 0:09:32.959 five percent tariff on US auto imports. Now, it's expected 0:09:33.000 --> 0:09:36.160 to increase costs and disrupt industry supply chains. But what's 0:09:36.200 --> 0:09:38.920 more certain auto parts will also be hit with a 0:09:38.960 --> 0:09:42.200 similar level no later than May third. And this morning 0:09:42.200 --> 0:09:45.079 you already have Volkswagen already announcing it plans to add 0:09:45.160 --> 0:09:48.040 import fees to the sticker prices of its vehicles that 0:09:48.040 --> 0:09:51.080 are shipped into the US. Now, Volkswagen shares down about 0:09:51.080 --> 0:09:53.640 half a percent. In Germany, you have Ford off about 0:09:53.640 --> 0:09:56.960 half a percent, General Motors down one percent, Tesla is 0:09:57.040 --> 0:10:00.360 lower by three percent. Chrysler Parents still land. It was 0:10:00.400 --> 0:10:03.079 down nearly two percent yesterday. This morning it's up about 0:10:03.080 --> 0:10:05.760 three tens of percent before the belt. The only good 0:10:05.800 --> 0:10:08.600 news is at imported cards and parts, will they escape 0:10:08.600 --> 0:10:11.920 the so called reciprocal tariffs? And speaking of being spared, 0:10:11.960 --> 0:10:14.720 you have the pharmaceutical sector and won this reprieve from 0:10:14.760 --> 0:10:18.040 sweeping tariffs. But here's the thing, it may not last long. 0:10:18.120 --> 0:10:20.800 Sources saying the White House plans to launch an investigation 0:10:21.040 --> 0:10:24.559 into the drug industry other sectors, and that includes semiconductors 0:10:24.600 --> 0:10:27.720 and potentially critical minerals, and that could lead to tariffs 0:10:27.760 --> 0:10:30.400 under the Trade Expansion Act. Now, if we take a 0:10:30.400 --> 0:10:32.480 look at chairs A Pfizer, they're down about two tens 0:10:32.480 --> 0:10:36.640 of percent. Eli Lilly off about two percent. Lisa Matteo, Bloomberg. 0:10:36.200 --> 0:10:38.280 Radio, Lisa, thank you all. In all, it is an 0:10:38.320 --> 0:10:40.959 aggressive suite of tariffs from President Trump, and it will 0:10:41.000 --> 0:10:44.559 significantly complicate the federal reserves job as it struggles to 0:10:44.640 --> 0:10:48.480 question inflation and avoid an economic downturn. This morning, Morgan 0:10:48.600 --> 0:10:51.079 Stanley pushed back. It's called for the next FED rate 0:10:51.120 --> 0:10:55.120 cut to next year. The firm's analysts cite inflation risks 0:10:55.160 --> 0:10:59.360 arising from tariffs. FED Governor Adriana Kougler says it's appropriate 0:10:59.440 --> 0:11:04.120 to keep in restraints unchanged until upside risks to inflation abate. 0:11:04.640 --> 0:11:08.880 I will support maintaining the current policy BRAID for as 0:11:09.040 --> 0:11:14.119 long as this outside grace to inflation continue, while economic 0:11:14.200 --> 0:11:17.240 activity unemployment remain. 0:11:17.000 --> 0:11:20.120 The state now, it was FED Governor Adriana Coogler. The 0:11:20.120 --> 0:11:22.440 Fed's next meeting May seventh. 0:11:25.840 --> 0:11:26.000 Time. 0:11:26.040 --> 0:11:27.959 Now for look at some of the other stories making 0:11:27.960 --> 0:11:29.720 news in New York and around the world, and for 0:11:29.760 --> 0:11:32.640 that we're joined by Bloomberg's Michael Barr Michael, good Morning. 0:11:32.480 --> 0:11:35.360 Good morning, Karen. Reaction continues to come in after a 0:11:35.360 --> 0:11:39.040 federal judge dismissed corruption charges against New York Mayor Eric 0:11:39.080 --> 0:11:43.000 Adams but criticized the Trump administration's move to drop the case. 0:11:43.559 --> 0:11:46.880 Judge Dale Hoe rejected the government's bid to leave the 0:11:46.960 --> 0:11:51.040 door open for refining the case, citing the unavoidable perception 0:11:51.200 --> 0:11:53.920 that the mayor's freedom depends on his ability to carry 0:11:54.000 --> 0:11:57.440 out the administration's agenda. Mayor Adams, in a brief statement 0:11:57.480 --> 0:12:00.559 outside Gracie Mansion in Manhattan, maintained his innocence. 0:12:00.880 --> 0:12:05.160 Today finally marks the end of this chapter. 0:12:05.840 --> 0:12:08.600 The dismissal comes less than three months before the June 0:12:08.640 --> 0:12:12.200 twenty fourth Democratic primary election in the New York City 0:12:12.280 --> 0:12:15.880 mayoral race, in which Adams is a candidate. With former 0:12:15.960 --> 0:12:19.280 New York Governor Andrew Cuomo already in the mayoral race, 0:12:19.320 --> 0:12:23.000 political analyst Hank Shinkoff says the mayor now has to 0:12:23.040 --> 0:12:25.360 decide if he wants to run as an independent or 0:12:25.559 --> 0:12:26.400 on another party. 0:12:26.880 --> 0:12:28.920 Mayor Adams is a real shot to be reelected, and 0:12:28.960 --> 0:12:30.959 it means this is the worst day that Andrew Cuomo 0:12:31.000 --> 0:12:33.640 has had, probably since he was forced to leave office. 0:12:33.679 --> 0:12:37.000 President Trump, who has claimed that his own criminal cases 0:12:37.000 --> 0:12:41.160 were political, Vendetta's express sympathy for the mayor. The death 0:12:41.240 --> 0:12:43.400 toll from the massive earthquake that hit me and May 0:12:43.559 --> 0:12:46.120 nearly a week ago rose to almost thirty one hundred 0:12:46.160 --> 0:12:49.079 as more bodies were found by search and rescue teams. 0:12:49.360 --> 0:12:52.000 The military led to government said more than forty seven 0:12:52.120 --> 0:12:54.559 hundred have been injured in more than three hundred forty 0:12:54.559 --> 0:12:58.400 are still missing. Last Friday, seven point seven magnitude earthquake 0:12:58.679 --> 0:13:02.960 had an epicenter near Delay, Meandmar's second largest city. Strong 0:13:03.000 --> 0:13:06.200 storms have already led to reports of deadly tornadoes along 0:13:06.200 --> 0:13:09.880 the Mississippi River valley, and now heavy rain is moving east. 0:13:10.240 --> 0:13:13.160 Bloomberg Meeting Religius Craig Allen has the latest, and. 0:13:13.120 --> 0:13:16.440 There will be additional showers and thunderstorms. The ingredients are 0:13:16.480 --> 0:13:20.000 there for severe weather to develop once again. It could 0:13:20.000 --> 0:13:23.240 turn quite volatile again during this day. And not only 0:13:23.280 --> 0:13:26.280 will there be just thunderstorms and wind, but there will 0:13:26.280 --> 0:13:29.240 also be torrential rainfall an inch or two per hour 0:13:29.280 --> 0:13:31.560 from some of these storms, and they'll be training, so 0:13:31.600 --> 0:13:33.920 in other words, there could be over the length of 0:13:33.960 --> 0:13:35.960 a day or two, there could be as much as 0:13:36.000 --> 0:13:38.560 eight to twelve inches of rain, and that would cause 0:13:38.600 --> 0:13:39.679 deadly flash flooding. 0:13:40.080 --> 0:13:42.839 Bloomberg's Craig Allen Global News twenty four hours a day 0:13:42.840 --> 0:13:44.959 and whenever you want it with Bloomberg News Now. I'm 0:13:44.960 --> 0:13:46.760 Michael Barr, and this is Bloomberg Karen. 0:13:46.920 --> 0:13:53.880 All right, Michael Barr, thank you time now for the 0:13:53.880 --> 0:13:57.679 Bloomberg Sports Outcake with John Stash Shower John, Good morning. 0:13:57.440 --> 0:13:59.760 Good morning, Karen. Further evidence it's gonna be tough for 0:13:59.800 --> 0:14:02.760 the to get out of the East in the upcoming playoffs. 0:14:02.800 --> 0:14:05.520 They'd likely have to get past both the Celtics and 0:14:05.559 --> 0:14:08.240 the Calves. In Cleveland, Nick's had a fifteen point lead 0:14:08.280 --> 0:14:10.640 in the first half, but they trailed by twenty five 0:14:10.679 --> 0:14:13.640 in the second. The Calves won for the sixty first time, 0:14:13.679 --> 0:14:15.960 won twenty four to one oh five at the Guard 0:14:16.120 --> 0:14:19.560 Rangers in wild The game tied four different times. Vincent 0:14:19.640 --> 0:14:23.520 Trochech scored twenty four seconds into overtime. Rangers won five 0:14:23.520 --> 0:14:26.560 to four. They're tied to the last playoff spot. Washington 0:14:26.640 --> 0:14:28.760 lost at Carolina five to one, but the one goal 0:14:28.800 --> 0:14:32.040 for the Capitals was by Alex Doveetchkin, thirty ninth of 0:14:32.080 --> 0:14:34.360 the season for the thirty nine year old, and Novechkan 0:14:34.760 --> 0:14:37.360 moving closer to becoming the leading goals scored in NHL history, 0:14:37.440 --> 0:14:40.160 needs three more. Pid Alonzo had those big home runs 0:14:40.200 --> 0:14:42.720 with the Mets last fall. All off season, the question 0:14:42.960 --> 0:14:46.520 was would he resign. He did. In Miami. He came 0:14:46.600 --> 0:14:49.760 up in the eighth inning two on two, out Balanzo twice. 0:14:49.800 --> 0:14:52.320 What deep center field sodelha back. 0:14:52.200 --> 0:14:54.160 Takes a look out here. 0:14:54.840 --> 0:14:56.360 Peter Alonzo tis the. 0:14:56.400 --> 0:14:59.200 Game with a three run homer. 0:14:59.560 --> 0:15:03.520 Dead shut the Great Ways and why Mett's beat the 0:15:03.560 --> 0:15:05.640 Marlin sixty five and eleven innings. They've got the home 0:15:05.640 --> 0:15:08.600 opener tomorrow afternoon against the Pirates at the Stadium. Arizona 0:15:08.640 --> 0:15:10.680 score twice at each of the first two innings off 0:15:10.720 --> 0:15:13.120 Carlos Dan did not score again, but the Yankees were 0:15:13.160 --> 0:15:16.240 blanked until an Anthony Volpi three on homer bott. 0:15:16.040 --> 0:15:16.400 Of the night. 0:15:16.440 --> 0:15:19.320 The Diamondbacks won four to three. Dodgers beat Atlanta on 0:15:19.400 --> 0:15:22.040 a Showyozani home run bottom of the night. The Dodgers 0:15:22.040 --> 0:15:24.120 are eight and o. The Braves are zero and seven. 0:15:24.360 --> 0:15:26.160 John Stashew with Bloomberg Sport. 0:15:28.520 --> 0:15:32.560 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:15:32.840 --> 0:15:35.640 and around the world on Bloomberg dot Com and the 0:15:35.680 --> 0:15:38.800 Bloomberg Business app. This is Bloomberg Daybreak. 0:15:39.600 --> 0:15:42.800 Good morning. I'm Caro a Moscow alongside Nathan Hager, and 0:15:42.880 --> 0:15:46.120 we continue our coverage on tariffs with a conversation with 0:15:46.320 --> 0:15:49.680 US Treasury Secretary Scott Messant. He spoke with the Bloomberg 0:15:49.760 --> 0:15:53.640 televisions and Marie hor Dern shortly after the tariffs were announced, 0:15:53.760 --> 0:15:57.800 urging other economies against taking retaliatory steps against the new 0:15:57.920 --> 0:15:59.920 set of America's retaliatory terror. 0:16:00.560 --> 0:16:03.720 Let's listen in what I would say, and Marie is 0:16:03.880 --> 0:16:07.600 I would advise none of the countries to panic. I 0:16:07.760 --> 0:16:12.280 wouldn't try to retaliate because as long as you don't retaliate, 0:16:12.560 --> 0:16:15.720 this is the high end of the number, and I 0:16:15.760 --> 0:16:19.360 think the market could have certainty that this is the 0:16:19.480 --> 0:16:23.640 number barring retaliation. So we've got a ceiling and then 0:16:24.280 --> 0:16:26.080 we can see if there's a different floor. 0:16:26.480 --> 0:16:29.000 So you sound like you're ready for a negotiation. A 0:16:29.040 --> 0:16:32.240 number of these partners. Has the European Union, has China? 0:16:32.480 --> 0:16:33.120 Has India? 0:16:33.200 --> 0:16:34.600 Have these countries reached out? 0:16:34.920 --> 0:16:37.080 Well, they've all reached out, but it's going to be 0:16:37.200 --> 0:16:39.640 up to President Trump to see what he wants to do. 0:16:40.440 --> 0:16:43.360 I think the mindset might be to let things settle 0:16:43.520 --> 0:16:47.480 for a while. Their terrifts or non tariff barriers have 0:16:47.560 --> 0:16:49.640 been on a long time, so we'll see where it 0:16:49.680 --> 0:16:50.280 goes from here. 0:16:50.520 --> 0:16:52.840 When it comes to China, they have a much higher 0:16:52.960 --> 0:16:55.800 rate on this list. On top of that, there's still 0:16:55.840 --> 0:16:59.040 that twenty percent fentanyl tariff rate. Is all of this 0:16:59.240 --> 0:17:01.600 coming together to be more than a fifty percent tariff 0:17:01.640 --> 0:17:02.440 rate for Beijing? 0:17:02.920 --> 0:17:05.720 Well, yes, I think it is, and I think it's 0:17:05.720 --> 0:17:10.240 a combination of things. And again that I think China 0:17:10.359 --> 0:17:14.680 said today that solving the fentanyl crisis depends on taking 0:17:14.760 --> 0:17:17.920 off the fentanyl tariffs, and I'm pretty sure that's not 0:17:18.040 --> 0:17:21.040 the way the sequencing is going to work. They're exporting 0:17:21.119 --> 0:17:26.160 the precursor chemicals, and every day, every week, every month, 0:17:26.200 --> 0:17:28.120 Americans are dying and it's going to have to stop. 0:17:28.400 --> 0:17:30.520 When it comes to places like China, the President has 0:17:30.640 --> 0:17:33.240 mentioned he's willing to even look at things like TikTok 0:17:33.280 --> 0:17:36.960 to potentially do a negotiate them. When it comes to tariffs, 0:17:37.000 --> 0:17:38.880 I'm sure you're looking at things like the yu Wan. 0:17:39.359 --> 0:17:42.040 What's on the table when it comes to this trade 0:17:42.119 --> 0:17:43.600 realignment between Beijing. 0:17:43.359 --> 0:17:46.479 And Washington, Well, we haven't started anything yet. We've been 0:17:46.680 --> 0:17:49.520 busy with the tariffs. I've been busy, as we talked 0:17:49.560 --> 0:17:53.399 about earlier, the tax bills going very well. So I 0:17:53.560 --> 0:17:59.040 think that we will move toward the bilateral relationship with 0:17:59.320 --> 0:18:03.320 China that we've done the multilateral. 0:18:02.680 --> 0:18:05.560 Tariffs plans for conversations or a trip to Beijing. 0:18:07.359 --> 0:18:09.240 Nothing eminent when. 0:18:09.119 --> 0:18:13.239 It comes to this negotiation. April ninth, these tariffs come 0:18:13.280 --> 0:18:17.040 in place. Do you plan on having negotiations before that date? 0:18:17.960 --> 0:18:21.240 Again, I'm not part of the negotiations, so you know, 0:18:21.640 --> 0:18:24.680 we'll see. I am sure that there are going to 0:18:24.720 --> 0:18:26.679 be a lot of calls. I just don't know if 0:18:26.680 --> 0:18:27.880 they're going to be negotiations. 0:18:28.320 --> 0:18:31.359 And that was US Treasury Secretary's god Messon speaking with 0:18:31.400 --> 0:18:34.560 the Bloomberg TVs and Marie hord Durn after President Trump's 0:18:34.600 --> 0:18:37.399 tariff announcement. You can hear the full interview on the 0:18:37.440 --> 0:18:40.480 Bloomberg Talks podcast page and watch it on the Bloomberg 0:18:40.600 --> 0:18:42.360 podcast page on YouTube. 0:18:42.440 --> 0:18:46.240 Nathan Karen, we continue our coverage of these tariffs. We 0:18:46.320 --> 0:18:49.879 are joined now by Bloomberg News Global Trades are Brendan 0:18:49.960 --> 0:18:53.440 Murray and Terry Haynes, the founder of Pangaea Policy, for 0:18:53.520 --> 0:18:56.560 a roundtable this morning after the announcement. Great to speak 0:18:56.600 --> 0:18:58.639 with both of you, and I'll start with you, Brendan, 0:18:58.720 --> 0:19:01.760 because even as Treasury Secretary Scott Bessett is framing this 0:19:02.160 --> 0:19:07.040 as a negotiation, this seems like a really huge start 0:19:07.480 --> 0:19:08.879 to what could be coming. 0:19:08.960 --> 0:19:10.560 Good morning, Yeah, exactly. 0:19:10.640 --> 0:19:13.640 He said, you know, let's let this paraphrasing, he said, 0:19:13.720 --> 0:19:15.760 let's let this settle in for a while, so that 0:19:15.920 --> 0:19:18.240 you know, that doesn't seem like you know, a window 0:19:18.320 --> 0:19:20.879 for negotiating over the next four or five days. So 0:19:21.640 --> 0:19:24.240 these tariffs are going to take effect by early next 0:19:24.320 --> 0:19:26.919 week and countries are going to be scrambling to figure 0:19:26.920 --> 0:19:30.200 out do we want to retaliate, ratchet up the ratchet 0:19:30.280 --> 0:19:32.720 up the pressure, or do we want to you know, 0:19:33.920 --> 0:19:37.160 take a you know, a more negotiating posture and try 0:19:37.240 --> 0:19:40.440 to work this out. Either way, marcuts don't like it, 0:19:40.640 --> 0:19:43.560 and economists are marking down their outlook for growth and 0:19:44.200 --> 0:19:46.800 marking up their outlook for inflation. And you know the 0:19:46.880 --> 0:19:50.119 aftermath of it here, even though President Trump said this 0:19:50.280 --> 0:19:53.960 is simple, reciprocity is about as simple as it gets, 0:19:54.520 --> 0:19:56.040 this still creates a lot of confusion. 0:19:56.680 --> 0:19:59.720 Terry, how does the negotiation go when the president is 0:20:00.040 --> 0:20:02.560 charting with this Onslaught. 0:20:03.440 --> 0:20:06.239 Good morning, Nathan. You know, the negotiations in a lot 0:20:06.280 --> 0:20:09.080 of ways have already started. My understanding in a lot 0:20:09.119 --> 0:20:13.240 of places is that Secretary of Commerce is the Lutnix 0:20:13.320 --> 0:20:19.119 team had already been giving wish lists both tariffs and 0:20:19.680 --> 0:20:23.480 barriers to different countries who were already kind of parsing 0:20:23.600 --> 0:20:26.400 that and trying to figure out how they might respond 0:20:26.480 --> 0:20:31.000 to it. And a lot of countries, I mean major countries, 0:20:31.040 --> 0:20:33.119 both allies and non aligned, are going to have to 0:20:34.119 --> 0:20:37.000 frankly work through with their own industries there, whether it 0:20:37.080 --> 0:20:41.800 be agriculture or machine industries, to figure out exactly what 0:20:41.920 --> 0:20:43.720 they want to do and how they want to do it. So, 0:20:44.880 --> 0:20:47.000 you know, I think it's it's correct to say this 0:20:47.160 --> 0:20:52.440 is not going to magically disappear or be mitigated in 0:20:52.560 --> 0:20:55.920 the next few days. But all countries have had an 0:20:55.960 --> 0:20:59.639 advanced warning of what the United States might want and 0:20:59.760 --> 0:21:02.879 what the kind of the parameters for negotiations will be. 0:21:03.880 --> 0:21:07.000 So you know, number one, there's that number two. You've 0:21:07.040 --> 0:21:11.320 seen encouraging responses by a lot of countries. I was encouraged. 0:21:11.320 --> 0:21:13.800 I mean, Canada of course got singled out for special treatment, 0:21:13.920 --> 0:21:17.920 but you had Premiere Ford on your air last night 0:21:18.119 --> 0:21:21.520 and he was urging Carneie not to retaliate at all. 0:21:21.840 --> 0:21:24.320 So you know, you'll have a lot of those kind 0:21:24.359 --> 0:21:25.000 of responses. 0:21:25.600 --> 0:21:29.800 Notwithstanding Canada and Mexico being spared at least this round, Brendan, 0:21:30.040 --> 0:21:32.399 just about every other country in the world, even some 0:21:32.680 --> 0:21:35.920 very very small ones are being targeted. In this long 0:21:36.200 --> 0:21:40.400 list that President Trump showed at the Rose Garden last night, 0:21:40.720 --> 0:21:44.240 what could the potential impact be for this kind of 0:21:44.320 --> 0:21:46.600 country by country tariff announcement. 0:21:47.200 --> 0:21:49.800 Well, one of the hardest hit regions was South Asia. 0:21:50.160 --> 0:21:55.760 Countries like Vietnam, Malaysia, Cambodia. These are places where a 0:21:55.880 --> 0:21:59.360 lot of the sort of lower skilled manufacturing has migrated 0:21:59.400 --> 0:22:03.000 from China over the past several years. And you know, 0:22:03.119 --> 0:22:06.840 those are places where you know, close clothes and shoes 0:22:06.840 --> 0:22:09.560 are made. And so you know, there are stories that 0:22:09.640 --> 0:22:12.800 we're reporting today about how you know, Nike, you know, 0:22:12.880 --> 0:22:14.680 you know Nike tennis shoes and those kinds of things 0:22:14.720 --> 0:22:16.280 that are made in South Asia, you know, are going 0:22:16.320 --> 0:22:19.399 to be more expensive. The other the other issue is 0:22:19.520 --> 0:22:23.440 you know, electronics. Apple is starting to produce a lot 0:22:23.480 --> 0:22:27.080 more of their phones in India. India you know, got 0:22:27.160 --> 0:22:29.440 hit with a tariff in the twenty five percent range, 0:22:29.480 --> 0:22:33.920 I think. And so you know, if these can't be 0:22:34.200 --> 0:22:38.440 resolved by negotiation, you know, anytime soon, then you know, 0:22:38.600 --> 0:22:44.040 consumer prices could conceivably go up. Interestingly, Switzerland was singled out, 0:22:44.400 --> 0:22:46.720 got a bigger got a bigger tariff level than the 0:22:46.760 --> 0:22:49.200 rest of the than than the European Union around it. 0:22:49.960 --> 0:22:52.959 So you know, rolex watches come next week are going 0:22:53.000 --> 0:22:55.000 to be about thirty one percent more expensive than they 0:22:55.000 --> 0:22:55.680 otherwise would be. 0:22:56.560 --> 0:23:00.880 Terry, we haven't heard much Republican reaction on Capitol Hill 0:23:01.000 --> 0:23:06.000 besides the four Republicans who voted with Democrats against Canada tariffs. 0:23:06.600 --> 0:23:08.879 What do you think the Republican reaction is going to 0:23:08.960 --> 0:23:12.399 be as these tariffs take a fact, I. 0:23:12.440 --> 0:23:17.000 Think there'll be two things that happened, David. One above board, 0:23:17.080 --> 0:23:19.840 one below board. The above board will be that there 0:23:19.840 --> 0:23:25.399 will be some concerns from Republicans from based on the 0:23:25.680 --> 0:23:31.239 situation in their own states, about making sure that they 0:23:31.400 --> 0:23:37.720 push Trump to resolve these issues lower tariffs, engage in 0:23:37.800 --> 0:23:40.440 the negotiations, do whatever they can, and frankly, you know, 0:23:40.520 --> 0:23:43.280 work with the other the other country as well. That's 0:23:43.359 --> 0:23:47.200 number one. Number two. I think another impact here is 0:23:47.320 --> 0:23:51.480 that it lights an additional hot foot under the administration's 0:23:51.560 --> 0:23:55.680 broader economic agenda. And you can hear this from a 0:23:55.720 --> 0:23:58.119 lot of Senators. You can also hear it from Secretary Vessant, 0:23:58.359 --> 0:24:02.440 who continues to push the idea that the tax cuts 0:24:02.520 --> 0:24:05.040 may show up as soon as July or August or 0:24:05.080 --> 0:24:07.480 September something like that. Now I've got it at eighty 0:24:07.560 --> 0:24:11.680 percent by the end of the calendar year, but there's 0:24:11.680 --> 0:24:15.280 an opportunity should everyone wish on the Republican side to 0:24:15.359 --> 0:24:19.879 move these things along faster, and Besson will also be 0:24:20.000 --> 0:24:22.639 focusing on that. He has said that he's going to 0:24:22.680 --> 0:24:27.480 spend a lot of time pushing exactly that agenda. Think 0:24:27.560 --> 0:24:31.600 of Bess and broadly, as in twenty twenty five, as 0:24:31.760 --> 0:24:36.000 Gary Cohne was in twenty seventeen, the guy who's constantly 0:24:36.119 --> 0:24:38.320 up there goosing things along, trying to make it go 0:24:38.480 --> 0:24:39.400 as fast as he can. 0:24:40.880 --> 0:24:43.800 This is Bloomberg day Break, your morning podcast and the 0:24:43.880 --> 0:24:47.320 stories making news from Wall Street to Washington and beyond. 0:24:47.640 --> 0:24:50.000 Look for us on your podcast feed by six am 0:24:50.080 --> 0:24:53.440 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:24:53.720 --> 0:24:56.520 You can also listen live each morning starting at five 0:24:56.560 --> 0:24:59.200 am Wall Street time on Bloomberg eleven three to zero 0:24:59.320 --> 0:25:02.160 in New York, Bloomberg in ninety nine to one in Washington, 0:25:02.280 --> 0:25:06.160 Bloomberg ninety two nine in Boston, and nationwide on serious 0:25:06.400 --> 0:25:08.000 XM Channel one twenty. 0:25:07.800 --> 0:25:10.800 One plus Listen coast to coast on the Bloomberg Business 0:25:10.840 --> 0:25:13.880 App now with Apple CarPlay and Android Atto interfaces. 0:25:14.200 --> 0:25:17.200 And don't forget to subscribe to Bloomberg News Now. It's 0:25:17.200 --> 0:25:19.960 the latest news whenever you want it in five minutes 0:25:20.040 --> 0:25:23.120 or less. Search Bloomberg News Now on your favorite podcast 0:25:23.200 --> 0:25:27.280 platform to stay informed all day long. I'm Karen Moscow. 0:25:27.160 --> 0:25:29.639 And I'm Nathan Hager. Join us again tomorrow morning for 0:25:29.720 --> 0:25:31.600 all the news you need to start your day right 0:25:31.680 --> 0:25:33.119 here on Bloomberg Daybreak