Tariffs Anger Our Friends


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We got the G-7 summit this. Beginning in Canada soon and Ryan young is a regulatory studies fellow at the Competitive Enterprise Institute Ryan joins us now. Brian I'll all I read about. Over the weekend and today. The our outrage from our allies about the tariffs that the president has put on them. Explain to me why this is so significant and do you have any insight on what the end game is here for the trump administration really tried to get. I think the administration is trying to cats. It is lower trade barriers against US group. But I think they're going about it the wrong way you can think about. Other countries traders is essentially being them dumping rocks into their own harbors. Solutions can get in and deliver goods to their people so obviously they're hurting their own economies then we would. It also helped US producers to vehicles trucks out of the harbor. And the trump administration's approach to this it is to dump trucks and her own Harper's trade barriers against other countries. I would much rather. Do we not compound other countries mistakes with our own mistakes we should be. Lower our traders can leading by example and not come down and other countries and sticks with our own. Where if you don't do this what else could the president do that would be different from his predecessors. How important that you could lead by example instead of enacting new and still aluminum terrorist against our allies again and their mind that our biggest trading partner not partners Canada and you. Due to NAFTA most of our terror certain most of our good for our leader of terror president denounced president tropical enacting a 25% tariff on steel. 10% on aluminum. Handle all that will save 33000 or so jobs in steel industry. The cost it's about. 179000. Jobs so if you do do quick now to save one job the administration and we're going to do away I. Are surely doesn't think that's that's the end result that's gonna happen he's hoping he can pressure them. You put pressure the Canadians to do something that bull will benefit Americans in mount. I I but I hope not even in the long run but in the in the short run to run. What are doing is precisely the opposite of what the administration and hoped would happen and that of lowering their bears this thing okay America's good points. They're raising barriers and it's not just Canada Europe and Mexico among the EU for example is raising barriers on. Can put whiskey political 95%. A fervent in America is made to Kentucky's own pseudo farm and the majority leader Mitch McConnell. Period in terror song blue jeans which is. Do you buy that from Nancy Pelosi compound interest so I understand all the the message of the senate on economic message it's a political wonder then why are good are you doing you know especially we have trade deal. Phone that overcapacity tried used to warmer has been gradually lowering traders not crazy and so incorporated are moving in the right direction the administration. Really taking the wrong approach here. So we're talking to Ryan young from the Competitive Enterprise Institute the president shows up at this G-7 summit in Canada. And he says I have enacted these tariffs and by the time we leave here I would like to see us agreed to watch what what's the what did were they looking for. At this summit and what do you think the new you and goals are. Well I think another team in the church who want to. Two they lowered trade deficit. And this is completely the wrong objective. Found. When you have a high trade deficit that means whatsoever aren't capital surplus will compete if you if you felt confident to Japan and have American dollars. They can go to the sort of spend that they have to do something with certain usually what happens if they invested in American companies creating American jobs. Those dollars are used by American goods of course we. Just that eventually. Those dollars have to come back to the US they can't be used abroad so if we saw star who get capital investment in the turnout. One reason why the US is such a magnet for foreign investment. After all these dollars for an improvement. From the president actions are essentially aimed at lowering its direct to porn investment in the United States that's not good for the economy. Will let's talk the politics of this if this does put a damper on the American economy in some way and and we know within a year or so. Causes the loss of jobs. That seems to me to be a real negative for Republicans the Democrats can exploit to win their a lot of other things that Republicans can point to there really super positive. True but it's not as though there were content with countries trade issues and labor wing of the Democratic Party is also. Very much like trump on trade. On the entire Democratic Party cannot that's more confined to labor wing and of course you have vote Republican for the moral. Tom kind of more make America great again type conservatives still both very poetry on trade policy. I'm so. I think he's trying to co ops some Democrat voters with us. He can surmise but I don't think it'll work the way he thinks the world and you are losing oil too much stronger than what can make one mission. Yeah really interesting to try to dissect and that means that we got to pay extra special close attention to the G-7 summit coming up Brian Young. From the Competitive Enterprise Institute always appreciate you joining us thanks. Jar.