Balance of Power

Erica York, Vice President of Federal Tax Policy at the Tax Foundation, and Eric Freedman, Chief Investment Officer for US Bank Asset Management, dive deep into the knotty issues surrounding US-EU trade relations. They discuss the stalled negotiations and the implications of ongoing tariffs on both economies. The conversation touches on how recent policies affect investor sentiment and market behavior. With fiscal challenges and geopolitical tensions looming, they reflect on the potential economic consequences and the importance of clear communication in navigating these turbulent waters.

Michael Allen, Managing Director at Beacon Global Strategies and former special assistant to George W. Bush, dives deep into the intricacies of Trump's tariff proposals. He discusses potential exemptions for automakers grappling with production shifts, and addresses the broader implications for tech companies like Apple and NVIDIA. Allen also highlights the political fallout from these tariffs on public opinion, contrasting the reactions of Republican lawmakers and Democratic leaders. Additionally, he examines the geopolitics of oil demand and the ongoing complexities of the Ukraine conflict.

In a thought-provoking discussion, Christopher Smart, Managing Partner at Arbroath Group, Joe Lavorgna, Chief Economist at SMBC Nikko Securities, and Ellen Wald, Nonresident Senior Fellow at the Atlantic Council, tackle the rising U.S.-China trade tensions. They explore the complexities behind escalating tariffs and the reluctance of both nations to negotiate. Smart and Lavorgna share insights on the political maneuvering at play, while Wald highlights the impact on global energy markets. The conversation sheds light on the unpredictable landscape of international trade.

Shawn Donnan, a senior economics writer at Bloomberg, and Terry Haynes, founder of Pangea Policy, dive into the escalating U.S.-China trade tensions shaking Wall Street. They discuss the chaotic market reactions, with stocks and the dollar facing significant drops. The duo analyzes how tariff policies and shifting corporate strategies are impacting investor confidence. They also highlight the complexities of trade negotiations and the potential long-term repercussions on global growth, leaving listeners with much to ponder about the economy's future.

Scarlet Fu, a Bloomberg correspondent known for her market analysis, discusses the recent rally in markets following President Trump's pause on reciprocal tariffs. She highlights how this sudden policy shift has positively impacted investor sentiment and led to significant gains in major indexes like the NASDAQ 100. The conversation also navigates the implications of ongoing trade tensions with China, the psychological effects of tariff negotiations, and the challenges companies face in forecasting their performance amid uncertainty.

Tom Orlik, Chief Economist at Bloomberg Economics, discusses the heavy economic implications of Trump's 104% tariffs on China. Congressman Pat Fallon highlights the potential fallout for American consumers and emphasizes the need for diversified trading partnerships. Greta Peisch, former General Counsel at the U.S. Trade Representative, delves into the legal ramifications of these tariffs, particularly Congress's response and future challenges. The panel explores the intricate dance of trade negotiations, the psychological tactics involved, and the internal political struggles within the GOP regarding tariff policies.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.President Donald Trump said he wasn’t considering a pause on his plan to implement sweeping additional tariffs on dozens of countries despite outreach from trading partners to eager to avoid the levies, while still signaling he could be open to some negotiations.“We’re not looking at that,” Trump said on Monday while meeting with Israeli Prime Minister Benjamin Netanyahu in the Oval Office.Trump said tariffs were “very important” to his economic agenda — and would generally remain — while opening the door to “fair deal and good deals with every country.” “There can be permanent tariffs and there can also be negotiations because there are things that we need beyond tariffs,” he added.Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg News Correspondent Tyler Kendall. Bloomberg Equities Reporter Ryan Vlastelica. Republican Congressman Frank Lucas of Oklahoma. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino. Professor of Public Policy and Economics at the University of Michigan and Former Member of the White House Council of Economic Advisers Betsey Stevenson. See omnystudio.com/listener for privacy information.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.Chief White House economist Stephen Miran dismissed the deepening fears of a recession on Wall Street, saying that President Donald Trump’s plans for deregulation and tax cuts will more than offset any hit from tariff hikes.“The president acted with historic scope and speed to address what was a decades-long festering problem that had been eroding our competitiveness and eroding our prosperity and eroding our economy,” Miran said in an interview with Bloomberg Television Friday. “So of course there’s going to be some market volatility on the back of that.”Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Chair of the White House Council of Economic Advisers Stephen Miran. Bloomberg's Romaine Bostick. Republican Congressman French Hill of Arkansas, Chair of the House Financial Services Committee. Democratic Congressman Glenn Ivey of Maryland and IonQ CEO Niccolo De Masi. See omnystudio.com/listener for privacy information.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. President Donald Trump imposed the steepest American tariffs in a century as he steps up his campaign to reshape the global economy, sparking threats of retaliation and a selloff in markets around the world.Trump announced Wednesday he will apply at least a 10% tariff on all exporters to the US, with even higher duties on some 60 nations, to counter large trade imbalances with the US. That includes some of the country’s biggest trading partners, such as China — which now faces a tariff of well above 50% on many goods — as well as the European Union, Japan and Vietnam.“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” Trump said during an event in the White House Rose Garden to unveil the so-called reciprocal tariffs. “Now it’s our turn to prosper.”Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg International Economics and Policy Correspondent Michael McKee. Port City Brewing Company Founder Bill Butcher. Former Republican Senator Pat Toomey of Pennsylvania. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino. Founder of Ashton Analytics and Specialist in US-China Trade and Economics Anna Ashton. See omnystudio.com/listener for privacy information.

This is a special edition of the Bloomberg Daybreak: US Edition podcast.     Subscribe to the show:     on Apple: http://bit.ly/3DWYoAN     on Spotify: http://bit.ly/3jGRYiB     Anywhere: http://bit.ly/3J1bct9On today's episode:     President Donald Trump imposed the steepest American tariffs in a century as he steps up his campaign to reshape the global economy, sparking threats of retaliation and a selloff in markets around the world.Trump announced Wednesday he will apply at least a 10% tariff on all exporters to the US, with even higher duties on some 60 nations, to counter large trade imbalances with the US. That includes some of the country’s biggest trading partners, such as China — which now faces a tariff of well above 50% on many goods — as well as the European Union, Japan and Vietnam.“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” Trump said during an event in the White House Rose Garden to unveil the so-called reciprocal tariffs. “Now it’s our turn to prosper.”The move marks a dramatic escalation in Trump’s trade war, one that risks triggering retaliation from other countries and upends calculations for businesses and consumers at home. China and the EU, America’s largest trading partner, both said they were preparing to take countermeasures in response.The US president has embraced tariffs as a tool to assert US power, revive manufacturing at home and exact geopolitical concessions — counter to the decades-old consensus that lower trade barriers help to foster ties among nations and prevent conflicts. Economists say the near-term result of his measures will likely be higher US prices and slower growth — or perhaps even a recession.Global financial markets were hit by a sweeping selloff after Trump’s announcement, with US equity futures slumping as much as 4%.Gold hit an all-time high and the traditional haven Japanese yen soared, while China maintained its daily support of the yuan. Ten-year Treasury yields fell toward the closely-watched 4% level, their lowest since October.Read More: Fear Grips Markets as Trump Tariffs Raise Risks to Global GrowthLess than three months after returning to the White House, Trump has already erected trade barriers that are bigger by some measures than those imposed in the notoriously protectionist 1930s. Bloomberg Economics calculates that the effective tax rate the US now charges on more than $3 trillion of imported goods may climb to around 23% — higher than any point in more than a century.A statement published Wednesday by the United States Trade Representative explained the Trump administration calculated its raft of new tariffs primarily based on existing trade balances. Countries running a trade surplus with the US faced a flat 10% rate regardless, as did nations where trade was roughly even.There’s a small difference in the tariff rates first announced by Trump and more than a dozen of those listed in the annex that accompanied the White House executive order. For countries like South Korea, Myanmar, Pakistan and India, the rates in the annex are about 1 percentage point higher than the initial announcement.The 10% baseline charge on everyone takes effect after midnight Saturday. The higher duties on targeted countries — which replace, rather than add on top of the 10% rate — are due to kick in on April 9, the White House said.Read More: List of Reciprocal Tariffs by CountryFor now, the new measures don’t include Canada and Mexico, which are embroiled in a separate on-and-off tariff dispute with the US. They also won’t apply to some products that are subject to separate duties tied to so-called Sec. 232 investigations such as autos, semiconductors and lumber.The reciprocal tariffs were “much worse than we feared,” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics. There’ll be “huge implications for rerouting of trade,” she said.The president, who’s sought to frame his trade plans as a boost for his blue-collar voters, was joined in the Rose Garden by union members and workers from various industries — including a retired autoworker who spoke on stage. Later, Trump brandished large boards during his 48-minute address to display each nation’s new rate.See omnystudio.com/listener for privacy information.