Bloomberg Talks

Kathy Hochul, the Governor of New York, joins the discussion on the economic fallout from Trump's tariffs, labeling them a 'tax increase' and 'unforced error.' She highlights the struggles of local businesses in tourism and agriculture, grappling with rising costs. Hochul stresses the need for state tax cuts and effective strategies to support affected sectors. The conversation also touches upon the importance of collaboration among New York's political leaders to address pressing issues such as affordability and public safety.

The discussion dives deep into the potential ramifications of significant tariffs on the U.S. economy, highlighting fears of stagflation and the challenges posed by automation. Experts warn of a looming recession, drawing parallels to historical tariffs during the Great Depression. The market's mixed reactions reflect widespread anxiety over job recovery and economic stability, prompting calls for tariff removal to foster a healthier financial environment.

Howard Lutnick, the US Commerce Secretary instrumental in President Trump’s tariff policies, discusses the challenges of non-tariff barriers that hinder American exports. He emphasizes the necessity for foreign nations to adjust their regulations to benefit from tariff relief. Lutnick and Bloomberg's Jonathan Ferro and Annmarie Hordern explore the intricate web of international trade impediments and emphasize the importance of reforming these practices. They also delve into economic strategies to revive U.S. manufacturing and reclaim global trade dominance.

Jim Zelter, President of Apollo Global Management, shares his insights on tariffs and their implications for the U.S. economy. He discusses 'macro paralysis' and its effect on corporate planning amid fluctuating geopolitical tensions. Zelter predicts a 50% chance of recession, emphasizing how investment strategies must adapt to the shifting economic landscape. He also tackles challenges like rising interest rates and the evolving sentiment in European markets, suggesting private market solutions as a response to these emerging risks.

Former President Donald Trump, known for imposing significant tariffs to reshape the global economy, dives into his controversial trade policies. He discusses the motivations behind a 10% tariff on exporters, particularly targeting China, aiming to rejuvenate American manufacturing. The conversation covers the potential repercussions of these tariffs, including rising inflation and threats of retaliation from affected nations. Trump also addresses challenges facing U.S. companies and the intricate dynamics of U.S.-China relations amid escalating trade tensions.

Treasury Secretary Scott Bessent shared his insights on the newly announced global tariffs, proposing that retaliatory measures from other countries would be counterproductive. He highlighted the complexities of negotiations with key partners like China and the European Union, discussing how these tariffs could impact critical issues like the fentanyl crisis and manufacturing jobs. Bessent also touched on consumer sentiment amid inflation concerns and the urgent negotiations with Ukraine over minerals, showcasing the intricate global economic landscape.

Lawrence H. Summers, former US Treasury Secretary and Harvard professor, dives into the looming tariffs and their potential economic fallout. He critiques the timing and strategy behind these tariffs, warning of supply shocks that could lead to rising prices and decreased consumer demand. Summers also discusses the Federal Reserve's juggling act with inflation and employment. Additionally, he addresses the Trump administration's controversial actions against elite universities, raising concerns about authoritarianism and the broader implications for diversity initiatives.

David Baszucki, Co-founder and CEO of Roblox, shares insights on the company's exciting partnership with Google and the launch of new parental controls designed to enhance user safety. He discusses the shifting demographics of Roblox users, particularly the interest of the 17 to 24 age group, and how this impacts brand interactions and immersive shopping. Baszucki also touches on the platform's evolution towards higher-quality gaming, while envisioning a future where 3D interactions revolutionize communication in digital spaces.

Jason Furman sheds light on the flawed reasoning behind tariffs and their misconceptions regarding trade deficits. He highlights the economic and geopolitical risks posed by tariffs, especially those implemented during the Trump administration, stressing potential slowdowns and rising inflation. The podcast also examines how tariffs impact trade relationships and the economy, discussing retaliatory actions and currency shifts. Furman argues this turmoil may create short-term challenges but hints at possible long-term benefits, enriched by insights on the dollar and inflation.

Jared Polis, the Governor of Colorado, dives into the significant impact of Trump's tariff policies on his state. He discusses how these tariffs could burden local businesses and the manufacturing and agricultural sectors. Polis offers a balanced perspective, addressing both skepticism and optimism regarding their economic repercussions. He emphasizes the importance of trade relations with Canada and Mexico, while also contemplating the risks of a potential national recession linked to current trade strategies.