tv Washington Journal Chad Bown CSPAN March 8, 2018 12:25am-12:55am EST
banks and ignore mr. estrada and his two little girls. we should be working for people like mr. estrada and not for the big banks. he earned it and the big banks did not. i yield the floor. >> here is som >> here is some of our live coverage on the c-span networks. live coverage of the house at 9 a.m. as they continue work on the mission standards for the power plants an into 41030 and 0 the national security adviser susan rice speaks at the american university. at 6 p.m. an interview with the managing director c-span2 has live coverage of the senate and debate on rolling back the regulations of the banking industry. a house hearing on the preparations and response to a flu epidemic i epidemic and 2:1e on the domestic violence in the military next a look at
president donald trump's proposed targets on the aluminum imports. the institute chats with guests on washington journal. this is 25 minutes. >> from the peterson institute for international economics as the senior fellow and also podcast if you are interested called trade talks, good morning. we're talking about the terrorists. let's start off on the real basis. how does this work? >> guest: is basically ago tax on goods that are coming in with trading partners, so the products that are steel or aluminum in the united states don't get taxed on the stuff coming from canada, europe or japan. now it sounds like that shouldn't actually have an impact s if you buy the american steel or aluminum, but it will. the increasing competition from abroad will actually allow the u.s. steel and aluminum makers to raise their prices and that
means all industries and folks that consume these products are going to face higher prices and costs. >> so generally a good thing or bad thing or does it depend on the situation? >> if you are a steel company or aluminum producing company or work for one of those companies that is going to be a good thing for you but for everybody else is going to be a bad thing. for those of us or for those industries that might consume a lot of steel comes with the automobile producers, like refrigerators, washing machines and infrastructure projects if, you build, they found was kind of thingthose kindof things andr costs. the cost to everybody else is much larger than the steel and aluminum producers unfortunately. >> host: when you talk about this new type of tariff particularly on steel t and aluminum did us a sense of why you think the administration that.be considering >> guest: in the campaign back in 2016, president of trump
campaigned on this issue and decided he was going to be a perfectionist and he promised a lot of terrorists. he imposed his first set in january on a sola the solar pand machines but these cases are bigger than that. they account for 2% of u.s. imports for very important products to the americann economy. this is largely appealing to what he thinks is the political the voters. >> host: when he says things like china is dumping steel in the united states what does that mean? >> guest: is some validity to his concerns that behind all of this, the fact that globally they are a bit low, aluminum prices are a bit slow can be traced back to the overcapacity. there's way too much production of steel and aluminum over the past few years an ten years is n impact onod the prices. the challenge facing the united states and president trump is we
already have massive import restrictions that stop the would-be imports from china from comincoming indirectly, by and e most of them and so the terrorists that he is proposing to implement it and actually hit china by and large, it would hit canada coming up, japan, south korea and that is why we are seeing s the reverberations from our military allies, trade allies dealing with the problems are all actually going to be hit by president donald trump's terrorists. >> host: to talk about this idea and how they affect the economy if you want to ask a question, (202)748-8000 for democrats, 8001 for republicans an,and independents, (202)748-82 and you can also send your questions to c-span asked mack . do they have the capacity to compensate with less coming in from these other sources?
>> guest: it depends how the trade restrictions are imposed but certainly it is going to be an increasing crisis. they may be able to increase production. they do have the capacity to softline but isn't being used, but part of that is because in many instances they are less efficient, less good at producing these particular products and that means in order to scale up production, they have to face a higher cost and they will pass that on to the american consumers. ..
>> not o china. china was hit as well but enough of a negative impact what president trump was proposing to do. >> so talk about the law in particular how we ended up with this proposal. >> in a way to justify the terror of his national security and he claims imports of steam -- steel and aluminum around the world are threatened american national security so this gives him incredibleto discussion whatever size tariffs whatever countries for however long. so for that reason american presidents traditionally have not used this law because once you go down this path it opens up trading partners to do the
same thing but now they think is in theirr national interest they could retaliate. >> the first call is from ohio on the independent mine. b14. >> caller: thanks for taking my call. these economies have taken advantage of us building their economy on our generosity. the president knows what he is doing these people cannot do without us but we can do without them. i can another one -- i can afford an increase in my cost to make the american economy what it should be to build for the future. in the millennial's of which you are one. >> the caller gets to the
underlying point of the substantial overcapacity coming out of china. originally they built this at tene or 12% per year with such demand but what has happened is there economy has slowed down so now that is part of th' concern. so now it is just the question how presidential deals with that with major repercussions of trading partners. >> caller: good morning. two quick points. first everyone says this will hurt us or make things cost more but if we take the
tariffs and import that that makes more manufacturers in this a country by more steel and aluminum. the way to offset that price andri they tariffs and then to be more competitive. if they are smart it would help with the price overall. and to sell more steel and aluminum. >> and then to raise prices so
there isn't much question even those reports they mention that is what it will take for the industry to become competitive a again to raise prices so who will bear the cost of that? >> democratic line. >> caller: nobody talks about the fact mr. trump uses this deal to build his casinos from china if they say trump they are not produced on -- in this country and they don't get paid much. that is all i have to say t-3 in the globalized world which we live steel and aluminum
comes from all over. not just china but i do want to clarify that if you have the u.s. imports that will have tariffs imposed on comes from china. 6%. that's it. the rest iss from canada, europe, japan, south korea. those are the countries to have trade restricted. it's that simple. >> the president was asked as far as the trade war is concerned i will play his response. >> when we are behind in every single country do you understand what i mean? with 60 billion in 100 billion the trade war hurts them, not us t-3 unfortunately trade
wars are bad. nobody wins from the trade war yesl some steel companies could benefit but there are tremendous cost to the economy and innocent bystanders will be hit so you are a farmer of soybeans and cannot sell to china you will suffer. if you make bluejeans or a cranberry farmer you are caught up in this you will not benefit at all from steel or aluminum tariffs now you are hurt as well. i disagree in that respect there are no winners. >>host: independent line from arkansas. >> caller: thanks for taking my call. two comments.
first, i agree as soon as you he is the tariffs on steel they will raise prices by 22%. i guarantee so all the money for the military you will get 22% less. i don't know what all the tariffs are now but my definition is fear trade is 10% tariff on everything that comes in if my reading of the constitution is the navy was the only one specified and to pay for the navy you had tariffs. though should pay all of the bills for the federal governmen government. no personal income taxes. and they could pay for everything if it was 10% with everybody across the board. >> guest: there is an interesting point most of the
federal budget was funded but the early 20th country where tax revenuee was funded and they have a small share. but that is for good reason. they are the inefficient means to raise revenue and impose major cost. so let's be clear the recent we have low tariffs, we didn't unilaterally cut them but we negotiated tariff reductions. canada and mexico but even the europeans have low tariffs. it isn't as if we unilaterally disarmed this is negotiations
leading to low tariffs. >>host: and there could be a carveout do you see that happening? >> that is an important question president trump has wrapped this controversial decision even into more controversial nafta discussed tuition one --dash discussion and they should be distinct and separate issues but he wants to link them together and i was threateningul both canada and mexico saying they will be hit unless they do something with thehe trade deal. >>host: the republican line. >> caller: good morning. there are three things the united states of america needs for national security. one is food. which we have ample amount. second is oil and energy that now we are the
leader in the world in the third is steel. we have everything we need to produce several products and military. i am concerned as an american inventor in the united states as given away a significant amount of its security to not produce its own steel in the amount needed. if tariffs is what it takes to ensure our security then so be it. thank you. >> guest: those are important points. even the department of defense has said they need only 3% of what the american steel industry produces. so if they produce plenty of steel for national securityy needs. i think that is not in
question. now we don't produce much aluminum anymore but at the from canada and a lot comes through american-based companies with operations in canada our friend and military ally that we have close securityun arrangements. i am not convinced these are legitimatee motivations united states does not produce enough steel. we have produced more than we have in a long time. we have become very efficient so fewer jobs that are tied up with the production. >> white house economic advisor announced his resignation yesterday in part of tariffs. talk about is role of the staff in the ghetto know him personally but from the media
reports it did come across that he has been a voice of moderation and temperance with the issue of trade policy where otherwise president trump and other members of his advisors may be more aggressive in ways that could be detrimental for the united states.. this is a big potential concern. we have to see who replaces him and how this plays out. >>host: coming to the trade representative or wilbur ross are they in line with the president? >> when it comes to the rhetoric publicly about the presidents positions, yes. secretary ross, peter navarro and the h trade representatives are all saying on -- towing the same line.
>>host: bloomington illinois lung -- indiana. >> caller: thanks for taking my call. does the president think this will create jobs for people? because if he does it will all be automated. plus he takes other regulations away that protect us from pollution. i think it is horrible that he gets away with this. he isn't doing things in the way the president should be doing things. >> guest: i agree that is part of the presidents motivation is jobs but it is unlikely to have a big jobs impact. we have seen improvement and massive technology especially over the last 30 years that is not
produced the same way with a very labor-intensive form of production and nowadays it is much more automated. so there are some jobs associated with the production of steel but with a less assembly-line work and it isn't the quantity of jobs but if that is what the american public is expecting they will be very disappointed how this will play out. >>host: do tariffs come with a time limit? or they are just left indefinitely? >> the more conventional laws that president bush used, yes or are explicit time limits usually three years or less but with this law there are
none. they could say as long as short as president trump would like and that is a concern for industry and consumers trying to make business decisions and the trading partners as well. >> we have seen capital hill pushback legislatively can they counteract this? >> they can change the law but this is what it will take and we have not seen a lot of progress legislatively out of congress in recent years and will require legislative train -- changes to take away that discretionary trade policy from the president. >>host: texas hello. >> caller: you mentioned the
views were more steady versus trumps more impulsive but citizen trump has held these vi over 20 years these are not impulsive. explain we arere how a trade deficit practically with every country we trade with you how we have massive deficits with canada and mexico. in industry after industry has evaporated furniture, clothing they say trump makes his ties overseas. there are no clothing manufacturers in this country and we have to start somewhere.o your numbers and percentages am not sure about that i have been listening to the debate but we have to start somewhere. this is a trade war.
the rest of the countries. i am reading a book right now of lawrence in arabia looking at 1916 with the european possession of the middle east. >> guest: the caller is absolutely right president trump has painted a picture as if it is like war there are losers and it is a national security issue but in realityy trade is a win-win situation and it is cheaper than we can produce them ourselves. so the trade balance metric is what he will determine if we
are benefiting is the wrong way to look at it. as an economist that had nothing to do with trade policy. we consume and reinvest more than we save ourselves. we are not saving enough as a nation. so now we have to borrow fromro abroad. in borrow funds or mother countries and they want to be paid back the pain and back by buying goods and services so to effect that we need to look at our macro economic behavior we need to save more of everything. not just imported goods. >>host: independent line. >> caller: good morning. i have a question. now we have a national security problem because iridium is necessary for satellites. what do we do about this?
>> guest: i'm not an expert on that metal but there has been a number of thet rare earth metals that are important and necessary for lithium batteries only available in some parts of the world. so there are some goods and services. so one of theel great joys that i have from nafta i can go to the grocery store locally to buy avocados any time of year. but we don't grow them here in washington d.c. i need these for mother countries just like they need what wee can produce. it is a two-way street. >>host: democratic line from michigan. >> caller: hi.
hi pedro. hi kid. i am pretty certain that i heard the tower in new york was built with chinese steel. everything we get from china cell phones that blowup, airbags that blowup, toys made with lead paint, why do we keep attacking our poor allies and people that we need in our lives to be there? >> guest: the worldld trade center was built in the 60s and that was long before the chinese economy.. that certainly was not chinese steel but so it has 50% of the
worlds production and capacity it is important to know that is arn legitimate concern going back to the way president trump chooses to address this issue and it will not effectively deal with china unfortunatelyy but have negative implications with key allies and trading partners of canada, mexico, europe, japa japan, south korea. don't forget that. he could change his mind. nothing is in t stone yet. >>host: if he decides to proceed what is the process? he makes a declaration and it is automatic? >> it is a declaration so at the moment they are contemplating it or maybe writing up the formality. you have to identify the