• Video
  • Trump Says He Won't Pare Back Tariffs

Trump Says He Won't Pare Back Tariffs

Show Transcript
Bloomberg Mercury Jan 7 08:32 · 24.2k Views

Bloomberg’s Peggy Collins weighs in on President-elect Trump saying he will not pare back his tariff policy and states Trump sees his tariffs as a negotiation tool and revenue raiser. Peggy speaks with Kailey Leinz and Joe Mathieu on Bloomberg’s “Balance of Power.”

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more

Transcript

  • 00:00 I guess he's kind of leaving us guessing here, though it seems pretty clear he does not agree with the post.
  • 00:05 That's right.
  • 00:07 I think what President Trump is trying to do is 2 main things.
  • 00:11 Is
  • 00:12 it double down on the fact that tariffs are going to be core
  • 00:16 to his administration and that's taking hold just in a couple of weeks?
  • 00:20 And also that he is anticipating that tariffs will not only be a negotiating tool, as they were for him the first time around,
  • 00:27 but also a revenue raiser.
  • 00:30 I know on the campaign trail, he
  • 00:32 promoted or floated a number of tax deductions, credits,
  • 00:36 such as
  • 00:37 taxes on tips, and that tariffs would be the way to pay for those.
  • 00:41 So he wants to make sure that people know that he considers tariffs one of his core
  • 00:46 governing models, but also that that's how he's going to deliver for the people across the country.
  • 00:51 That he promised many, many of those things too.
  • 00:55 As we kept hearing, though, Peggy, and it's great to have you on with us
  • 00:58 today, this was an opening salvo.
  • 01:00 We heard from Trump supporters that it was the beginning of a negotiation that maybe these tariffs would not be
  • 01:05 across the board.
  • 01:06 So it sounds to me like this reporting is kind of in line with what we've heard.
  • 01:10 Is Donald Trump just concerned about
  • 01:12 presenting this idea that he's not making good on promises before he's sworn into office?
  • 01:17 Well, I think, you know, campaign promises are suspended in time and the
  • 01:21 campaign is now transitioning towards governing.
  • 01:24 But also, there were some vagueness into the proposals even on the campaign trail.
  • 01:29 He came out of the gate saying 10 to 20% across the board, which would have been different than his first administration and what they're saying.
  • 01:37 He's saying they're not paring back.
  • 01:38 But also 60% on China, on certain goods.
  • 01:42 And then early on after his election, he talked about tariffs on Mexico and Canada
  • 01:47 coming right out of the gate.
  • 01:49 So I think again, they are trying to signal
  • 01:52 through their comments today that tariffs are going to be core to the way that they govern and
  • 01:56 in two main ways.
  • 01:58 One, in terms of how they can bring other countries
  • 02:01 to the table, but also in terms of how they can raise revenue
  • 02:05 to pay for some of the promises that they've made.
  • 02:07 One last point I'll make is that
  • 02:09 they are going to be taking over at a time that inflation is still an issue for many, many Americans and for the Fed, which we cover so much at Bloomberg.
  • 02:17 And so they are going to have to deal with
  • 02:20 what many economists say will be a challenge for tariffs.
  • 02:23 And that is, how do you balance putting tariffs on
  • 02:27 with potentially not causing higher inflation?
  • 02:31 Well, Peggy, you just mentioned Canada.
  • 02:33 Of course, we also got the news today that Canadian
  • 02:36 Prime Minister Justin Trudeau is resigning.
  • 02:39 How is that related to trade and the incoming relationship with the Trump administration?
  • 02:46 Well, our Canadian colleagues have obviously been covering this story for the last several months as it's become more dramatic by the day.
  • 02:53 But I do think, you know, Trump even just today tweeted about Canada being the 51st state.
  • 02:58 So he has not let up in terms of
  • 03:00 pointing at Canada and our relationship.
  • 03:03 But also, Trudeau
  • 03:05 and his deputies have clearly lost faith in each other.
  • 03:08 And they are now
  • 03:09 trying to posture for who could be best in terms of not only providing for Canada, but also negotiate
  • 03:16 and dealing with its neighbor
  • 03:18 under the
  • 03:19 power of Trump.