WEBVTT 1 00:00:01.199 --> 00:00:05.080 You're listening to Bill Handle on demand from KFI AM 2 00:00:05.080 --> 00:00:06.000 six forty. 3 00:00:06.879 --> 00:00:10.480 KFI AM six forty Bill Handle. Here it is a 4 00:00:10.679 --> 00:00:11.720 Monday morning. 5 00:00:11.599 --> 00:00:14.480 February third, National Carrot Cake Day. 6 00:00:14.560 --> 00:00:18.199 Yep. Only because the carrot cake is so good from 7 00:00:18.199 --> 00:00:19.679 Stonefire Grill they brought it. 8 00:00:19.800 --> 00:00:23.839 And all right, enough of that, let's do something that's 9 00:00:23.920 --> 00:00:27.160 not quite as important as today, but still fairly important, 10 00:00:27.239 --> 00:00:31.800 and that is the tariffs that President Trump has put 11 00:00:31.839 --> 00:00:32.399 into place. 12 00:00:32.640 --> 00:00:36.880 They start tomorrow. And if you remember, of course you 13 00:00:36.960 --> 00:00:37.320 do that. 14 00:00:37.600 --> 00:00:41.359 Part of the campaign that Donald Trump was running was 15 00:00:41.359 --> 00:00:45.479 the promise that prices would be lowered immediately, Costs would 16 00:00:45.479 --> 00:00:52.520 be lowered, inflation would be gone. Well, he has admitted that, 17 00:00:52.960 --> 00:00:55.320 and this is just a fact, not his issue, but 18 00:00:55.920 --> 00:00:57.079 he's the one that kicked this in. 19 00:00:58.159 --> 00:01:02.759 Tariffs cause prices to rise. It's just that simple. 20 00:01:03.799 --> 00:01:07.159 The more a terriff is in place, the more expensive 21 00:01:07.280 --> 00:01:12.079 products are. And that's because so much trade is going on. So, 22 00:01:12.239 --> 00:01:15.319 for example, the car companies, there isn't a car company, 23 00:01:15.319 --> 00:01:18.519 a car manufacturer in the United States that manufact it 24 00:01:18.560 --> 00:01:21.079 doesn't get parts from Canada or Mexico, and all of 25 00:01:21.120 --> 00:01:23.120 a sudden, those parts are going up twenty five percent 26 00:01:23.359 --> 00:01:25.920 which means guess what. Cars are going up, food is 27 00:01:25.959 --> 00:01:30.159 going up, phones are going up because they're all made 28 00:01:30.200 --> 00:01:33.840 in China. And Chinese products are going up because China 29 00:01:33.840 --> 00:01:36.200 has just been hit with a ten percent tariff twenty 30 00:01:36.239 --> 00:01:40.480 five percent tariff against Canada and Mexico, and prices are 31 00:01:40.959 --> 00:01:43.680 it's just that simple tariffs cause prices to go up. 32 00:01:43.959 --> 00:01:46.599 Now the President is doing this well for the fentanyl 33 00:01:46.640 --> 00:01:49.280 that's coming across Mexico and the illegal immigration. 34 00:01:49.760 --> 00:01:50.920 He says that about Canada too. 35 00:01:50.959 --> 00:01:55.359 How much illegal immigration is coming from Canada, Not very much, 36 00:01:56.439 --> 00:01:59.120 And so it's going to be financial. 37 00:01:59.200 --> 00:02:01.879 It's a financial hit, and it's gonna hurt American workers. 38 00:02:01.879 --> 00:02:04.959 It's gonna hurt well, it's gonna hurt certainly American consumers 39 00:02:05.560 --> 00:02:10.879 long term. The policy is, if it's really expensive to 40 00:02:10.879 --> 00:02:15.840 buy foreign products, that means American manufacturers and workers have 41 00:02:15.919 --> 00:02:19.439 to make up for it because we're not gonna stop consuming. 42 00:02:20.159 --> 00:02:22.479 And if all things being equal, if the. 43 00:02:22.439 --> 00:02:25.120 Price is about the same, if it costs twenty five 44 00:02:25.159 --> 00:02:28.840 percent less to buy from Canada and all of a 45 00:02:28.840 --> 00:02:31.039 sudden there's a twenty five percent tariff, then it's gonna 46 00:02:31.080 --> 00:02:34.360 be the same price, right, And if America charges the 47 00:02:34.400 --> 00:02:35.800 same thing American manufacturer. 48 00:02:35.800 --> 00:02:37.039 We're gonna go to American workers. 49 00:02:37.080 --> 00:02:39.919 Of course, we are for a whole lot of reasons, 50 00:02:40.120 --> 00:02:43.800 because bringing in from overseas, from China, bringing in from Mexico, 51 00:02:44.599 --> 00:02:48.759 there are all kinds of transport issues, There are all 52 00:02:48.879 --> 00:02:49.680 kinds of. 53 00:02:50.240 --> 00:02:53.280 Regulations that have to be met America. It's easy. 54 00:02:53.400 --> 00:02:55.639 You order from Des Moines and you're gonna get a 55 00:02:55.639 --> 00:02:58.479 product three days later and you're not gonna pay tariffs 56 00:02:58.560 --> 00:02:59.080 or any of that. 57 00:02:59.520 --> 00:03:00.879 It's easy PC stuff. 58 00:03:01.919 --> 00:03:06.719 So that is the philosophy that tariffs actually long term 59 00:03:06.759 --> 00:03:10.360 are good for the American worker. Yes, no, don't know yet, 60 00:03:10.719 --> 00:03:13.360 but I'll tell you prices are going to go up. 61 00:03:13.560 --> 00:03:14.599 That is a given. 62 00:03:15.479 --> 00:03:22.319 And the President has admitted, Okay, it's gonna hurt. It's 63 00:03:22.360 --> 00:03:26.000 going to hurt temporarily. Will this is a quote and 64 00:03:26.039 --> 00:03:28.800 this is what he posted. Will there be some pain, Yes, 65 00:03:29.240 --> 00:03:32.840 maybe maybe not. They'll be pain, believe me, But we 66 00:03:32.919 --> 00:03:35.639 will make America great again, and it will all be 67 00:03:35.719 --> 00:03:38.680 worth the price that must be paid. And he said, Americans, 68 00:03:38.840 --> 00:03:42.879 we will understand that it is important for us to 69 00:03:43.039 --> 00:03:47.680 pay more money for goods and services, goods, particularly. 70 00:03:48.080 --> 00:03:51.000 To make it long term better for America. 71 00:03:52.080 --> 00:03:54.400 You know what, there's an argument there, and there is 72 00:03:54.439 --> 00:03:58.599 a philosophy there, and some people agree, some people disagree. However, 73 00:03:59.680 --> 00:04:02.120 when he said prices are going to go down immediately 74 00:04:02.919 --> 00:04:05.680 and costs will be half of what they are now 75 00:04:05.879 --> 00:04:09.560 by the anniversary of his first year January twentieth, twenty 76 00:04:09.639 --> 00:04:15.080 twenty six, well we're going to start the administration with 77 00:04:15.439 --> 00:04:16.800 prices going up. 78 00:04:17.800 --> 00:04:19.319 I mean, that's the cost of tariffs. 79 00:04:19.759 --> 00:04:22.879 And if there's going to be a trade war, and Canada, 80 00:04:23.040 --> 00:04:27.079 Mexico already and China already said it's going to be retaliatory. 81 00:04:27.120 --> 00:04:29.399 You hit us with twenty five percent taxes, We're gonna 82 00:04:29.439 --> 00:04:30.560 hit you at tariffs. 83 00:04:30.560 --> 00:04:32.720 We're gonna hit you with twenty five percent tariffs. 84 00:04:33.079 --> 00:04:36.560 So all of a sudden, it becomes super expensive to 85 00:04:36.600 --> 00:04:41.160 buy products that are manufactured overseas, which is what we 86 00:04:41.319 --> 00:04:46.279 buy overseas products by the hundreds of billions of dollars, 87 00:04:46.279 --> 00:04:50.720 where trillion dollars. Maybe because it's cheaper. It's all about money. 88 00:04:51.759 --> 00:04:55.920 It's about quality too, but it's mainly about money. We vote, 89 00:04:56.000 --> 00:05:02.040 we go through life based on our our wallets. That's 90 00:05:02.079 --> 00:05:06.079 the reality. We're a consumer nation. And so prices are 91 00:05:06.399 --> 00:05:09.800 going to go up. There's no way around it, and 92 00:05:09.879 --> 00:05:12.680 we have to understand. But wait a minute, you said. 93 00:05:12.439 --> 00:05:13.720 Prices are going to go down. 94 00:05:14.879 --> 00:05:17.519 Well, prices are going to go up, but you understand 95 00:05:17.879 --> 00:05:19.600 that prices are going to go up. That's the problem 96 00:05:19.639 --> 00:05:22.959 I have. I would have been far far It would 97 00:05:22.959 --> 00:05:27.199 have been far better, in my opinion, had Candidate Trump said, 98 00:05:27.240 --> 00:05:28.240 here's what I want to do. 99 00:05:28.360 --> 00:05:29.959 I want to raise prices. 100 00:05:29.839 --> 00:05:33.879 Or I want to invoke or kick in tariffs for 101 00:05:34.000 --> 00:05:38.519 the long term of American workers, because tomorrow prices go up, 102 00:05:39.319 --> 00:05:41.199 the tariffs kick in tomorrow. 103 00:05:42.279 --> 00:05:43.879 How long do you think it takes to build a 104 00:05:43.920 --> 00:05:46.680 factory all of a. 105 00:05:46.680 --> 00:05:51.279 Sudden, chips have gone up twenty five percent or ten 106 00:05:51.319 --> 00:05:54.800 percent from China, Okay, So that means it's going to 107 00:05:54.839 --> 00:05:57.959 be feasible for us to build a chip factory because 108 00:05:58.079 --> 00:06:01.279 we're now going to compete and all things being equal, 109 00:06:01.319 --> 00:06:02.759 we're going to buy chips here. 110 00:06:03.319 --> 00:06:06.720 How long does it take to build a factory? Two years? 111 00:06:07.120 --> 00:06:10.839 Three years? And can you do it without subsidies from 112 00:06:10.879 --> 00:06:11.360 the government. 113 00:06:11.720 --> 00:06:14.560 Probably not, because it's so damn expensive and it's a 114 00:06:14.639 --> 00:06:18.800 national security issue. So teriffts may very well be good 115 00:06:18.879 --> 00:06:21.160 and in many cases I'm okay, with teriffs because they 116 00:06:21.240 --> 00:06:22.399 do in the long term. 117 00:06:22.199 --> 00:06:24.800 Exactly what the President I think is pushing for. 118 00:06:25.000 --> 00:06:29.040 A lot of people believe that, but come on, really, 119 00:06:29.360 --> 00:06:33.240 prices are going down while they're going up. Inflation is 120 00:06:33.279 --> 00:06:38.360 out of control. It's a two percent I mean, what 121 00:06:38.480 --> 00:06:43.079 do you do that? Okay, So we talk about it 122 00:06:43.120 --> 00:06:48.519 becomes more expensive to buy products when the president kicks 123 00:06:48.519 --> 00:06:52.240 in a tariff against the country. So a product from 124 00:06:52.639 --> 00:06:55.240 Canada that costs one hundred dollars a manufacturer pays and 125 00:06:55.319 --> 00:06:57.240 not gonna be one hundred and twenty five dollars, So 126 00:06:57.319 --> 00:06:58.839 the manufacturer's paying a lot more money. 127 00:06:58.879 --> 00:07:01.439 In the end, we do because it's the cost is 128 00:07:02.560 --> 00:07:03.680 moved on to us. Of course. 129 00:07:04.959 --> 00:07:08.120 Now here is something you may not realize is that 130 00:07:08.199 --> 00:07:13.240 every tax on imports is also a tax on exports. 131 00:07:14.240 --> 00:07:18.959 It's a tax on us. How does that work? All right, 132 00:07:19.040 --> 00:07:22.040 let me give you an example. The most popular beer 133 00:07:22.040 --> 00:07:26.480 in America right now is Modelo especial brood in Mexico. 134 00:07:27.240 --> 00:07:29.279 All Right, you put a twenty five percent tariff on 135 00:07:29.319 --> 00:07:32.439 Modello and slay sales are going to slide. Of course 136 00:07:32.439 --> 00:07:36.959 they are, because it's that much more expensive now Modello 137 00:07:37.199 --> 00:07:40.560 imports American barley from US. 138 00:07:40.680 --> 00:07:42.720 We export American barley. 139 00:07:42.360 --> 00:07:47.040 Because and they buy virtually all of their barley from 140 00:07:47.160 --> 00:07:48.079 US for brewing. 141 00:07:49.560 --> 00:07:54.040 And so all of a sudden, we're buying less. 142 00:07:55.040 --> 00:08:00.279 They're buying they they're selling less because they can only 143 00:08:00.360 --> 00:08:03.160 sell at a higher price because of the tariffs. And 144 00:08:03.240 --> 00:08:06.879 guess what both get screwed, Well, not both of them, 145 00:08:07.160 --> 00:08:11.639 We get screwed because all of a sudden we're in 146 00:08:11.680 --> 00:08:16.560 a worse position. You know, all of the manufacturing or 147 00:08:16.600 --> 00:08:22.439 the processing of barley, we're selling less, and it's costing 148 00:08:22.519 --> 00:08:26.920 us more for theirs, all of it. It's all connected 149 00:08:27.160 --> 00:08:30.120 by the way. Barley growers don't care about how much 150 00:08:30.360 --> 00:08:33.639 they sell, They prepare about what price they sell it at. 151 00:08:35.200 --> 00:08:38.679 So a tariff raises prices of both every imported good 152 00:08:38.799 --> 00:08:40.679 and every good that goes out. 153 00:08:40.519 --> 00:08:41.919 And competes with imporse. 154 00:08:42.559 --> 00:08:47.279 So if Modelo is more expensive, American beer also becomes 155 00:08:47.320 --> 00:08:52.879 more expensive. The tariff on Modello allows American beer to 156 00:08:53.000 --> 00:08:55.840 increase market share because all of a sudden, people aren't 157 00:08:55.840 --> 00:09:01.679 buying modello and we're selling more and the competition is less, 158 00:09:01.720 --> 00:09:03.240 which means the prices. 159 00:09:02.840 --> 00:09:05.320 Can go up. Why because it's supply and demand. 160 00:09:05.919 --> 00:09:08.639 If Americas rink a pile of beer, and now they 161 00:09:08.679 --> 00:09:12.399 don't buy Medello and they buy American beer. All of 162 00:09:12.440 --> 00:09:15.759 a sudden, American beer is more deer, and the prices 163 00:09:15.840 --> 00:09:22.000 go up supply and demand, so everything gets more expensive 164 00:09:22.080 --> 00:09:28.240 for everybody, and national incomes lower and prices just are 165 00:09:28.320 --> 00:09:32.360 more expensive. Trade wars, that's what this is about. And 166 00:09:32.480 --> 00:09:36.559 let me give you an example real quickly. It's not direct, 167 00:09:36.639 --> 00:09:39.879 but it's indirect. The largest glassmaker in North America is 168 00:09:39.879 --> 00:09:43.360 a Mexican company and it operates plants in the US 169 00:09:43.399 --> 00:09:47.919 and Canada, but the center is in Mexico. Now, most 170 00:09:47.919 --> 00:09:50.559 of us don't buy big sheets of industrial glass. 171 00:09:50.720 --> 00:09:52.080 You know that's way out there. 172 00:09:52.759 --> 00:09:54.399 But do you care about the rent of a brand 173 00:09:54.440 --> 00:09:59.720 new apartment, that department or that apartment. Well, the price 174 00:09:59.759 --> 00:10:01.879 to p on the cost of construction, how much it 175 00:10:01.960 --> 00:10:05.679 cost to build the apartment, which depends on the price 176 00:10:05.679 --> 00:10:09.279 of window systems that the developer pays. 177 00:10:10.600 --> 00:10:12.320 That depends on the price of glass. 178 00:10:12.840 --> 00:10:15.360 And by the way, we're talking about lumber which comes 179 00:10:15.440 --> 00:10:16.960 in from Canada too, I mean. 180 00:10:17.080 --> 00:10:17.960 Across the board. 181 00:10:18.840 --> 00:10:20.840 By the way, all of that Trump just raised twenty 182 00:10:20.840 --> 00:10:25.519 five percent put tariff on aluminum. The cost of manufacturing 183 00:10:25.559 --> 00:10:29.200 airplanes and cars go up, and so guess what happens. 184 00:10:29.759 --> 00:10:34.519 The cost of airplanes go up manufacturing. Therefore the airlines 185 00:10:34.559 --> 00:10:38.240 have to make that up. And you wonder what's going on. Now, 186 00:10:38.279 --> 00:10:43.559 here's the weird one. The Trump administration renegotiated NAFTA North 187 00:10:43.600 --> 00:10:45.240 America Free Trade Agreement. 188 00:10:44.879 --> 00:10:48.519 Which got rid of tariffs, and his new deal. 189 00:10:50.000 --> 00:10:52.879 In the US Mexico Canada trade deal quote was based 190 00:10:52.879 --> 00:10:56.200 on the principle of fairness and reciprocity, which. 191 00:10:56.039 --> 00:10:59.679 By the way, he can't do that. It's illegal under 192 00:10:59.679 --> 00:11:03.879 the tree D rules. But the US stopped obeying treaty 193 00:11:04.000 --> 00:11:05.240 rules a while back. 194 00:11:05.759 --> 00:11:09.639 Twenty eighteen, the Trump administration imposes tariffs on steel and aluminum, 195 00:11:10.639 --> 00:11:13.440 and so the affected countries take their case to the 196 00:11:13.440 --> 00:11:18.919 World Trade Organization. Four years later, December of twenty twenty two, 197 00:11:19.720 --> 00:11:23.559 the World Trade Issue, the World Trade Organization issued its judgment. 198 00:11:23.600 --> 00:11:27.320 The US lost at every single point. So what did 199 00:11:27.360 --> 00:11:29.519 the Biden administration say, We're going. 200 00:11:29.440 --> 00:11:30.000 To ignore it? 201 00:11:30.879 --> 00:11:34.679 The Biden administration said, we're ignoring it. We don't care. 202 00:11:35.639 --> 00:11:38.919 Trump has pulled us out of the WTO. Biden just 203 00:11:39.080 --> 00:11:46.279 ignored the WTO. They're both on the same page. And 204 00:11:46.360 --> 00:11:49.159 here's how they did it. In twenty seventeen, the Trump 205 00:11:49.159 --> 00:11:54.200 administration blocked new appointments to the WTO's Appellate Court, effectively 206 00:11:54.240 --> 00:11:55.039 the Supreme. 207 00:11:54.679 --> 00:11:55.759 Court of World Trade. 208 00:11:56.200 --> 00:11:59.879 The Biden administration continued the embargo. Today all seven seats 209 00:11:59.919 --> 00:12:02.399 on the panel are empty. And here's the clever part 210 00:12:03.200 --> 00:12:06.840 is that right now all seven seats of the appellate 211 00:12:06.879 --> 00:12:11.120 Court are non existent. They're empty, and they're the ones 212 00:12:11.159 --> 00:12:13.759 that make the decision. If there is no court, there 213 00:12:13.799 --> 00:12:14.559 is no decision. 214 00:12:15.399 --> 00:12:17.240 And that's both Biden and Trump. 215 00:12:19.919 --> 00:12:23.720 The point is free trade agreements, which it helps everybody 216 00:12:25.320 --> 00:12:28.000 the Biden administration and the Trump administration shut down. But 217 00:12:28.039 --> 00:12:31.360 here's the problem with free trade agreements. Right, no tariffs, 218 00:12:31.799 --> 00:12:38.600 so China subsidizes the manufacturing of steel, and no tariffs, 219 00:12:39.360 --> 00:12:42.360 so it is far cheaper to buy steel from China 220 00:12:42.399 --> 00:12:46.960 than it is to manufacture here under any free trade agreements. 221 00:12:47.360 --> 00:12:50.240 Because they're not fair. And Trump is right, they're not fair. 222 00:12:51.120 --> 00:12:57.399 If everything was equal, if China didn't subsidize, if China 223 00:12:57.440 --> 00:13:01.039 didn't pay forty cents an hour to its people, didn't 224 00:13:01.039 --> 00:13:03.879 have its own version of OSHA, it would be fair. 225 00:13:03.919 --> 00:13:08.279 The reality is it's not, and so what do you do? 226 00:13:08.320 --> 00:13:11.440 You let it happen and American steel workers are put 227 00:13:11.440 --> 00:13:14.440 out of work because there's no steel being manufactured because 228 00:13:14.440 --> 00:13:15.639 all being pot in China. 229 00:13:16.200 --> 00:13:17.919 Or do you put teriffs on there? 230 00:13:18.639 --> 00:13:23.279 So American steel workers do compete, but everything goes up 231 00:13:23.320 --> 00:13:27.879 in price. It's really complicated, and I want to share 232 00:13:27.919 --> 00:13:31.799 with you what's happening to me, My dear one of 233 00:13:31.799 --> 00:13:35.399 my best friends, Savil, and I own a business together 234 00:13:35.559 --> 00:13:39.320 and it's cookware that we import from China. And I 235 00:13:39.320 --> 00:13:44.039 don't want to pitch the company. It's Lake Industries dot com. 236 00:13:44.519 --> 00:13:50.200 Lake Industries dot com. You want to look at Platinum cookware. Okay, 237 00:13:50.759 --> 00:13:51.159 enough of that. 238 00:13:51.399 --> 00:13:54.200 It's good stuff, Savile, thanks for joining us. 239 00:13:54.320 --> 00:13:57.240 Good morning, Good morning Bill, How are you? 240 00:13:57.519 --> 00:14:01.039 I'm good? All right? Get him up, Actually he wakes 241 00:14:01.120 --> 00:14:01.720 up really early. 242 00:14:01.759 --> 00:14:04.440 But I wanted to talk about our company and we 243 00:14:04.639 --> 00:14:08.919 import from China. Now, huge companies have very deep pockets 244 00:14:09.000 --> 00:14:12.480 and they can switch over companies like ours. 245 00:14:12.799 --> 00:14:13.759 Small companies. 246 00:14:14.200 --> 00:14:15.799 You know, we have a couple of dozen people that 247 00:14:15.879 --> 00:14:19.720 work for us, and our business is coming in from China. 248 00:14:19.879 --> 00:14:23.000 What is going on? Since it's just hit us, what 249 00:14:23.039 --> 00:14:23.480 do you do? 250 00:14:23.840 --> 00:14:24.120 Well? 251 00:14:24.919 --> 00:14:26.759 It was announced on Friday, as you know. And the 252 00:14:26.799 --> 00:14:29.879 first thing we did is we sent a letter out 253 00:14:29.919 --> 00:14:32.799 to all of our clients and dealers and said, hey, 254 00:14:33.080 --> 00:14:35.399 this is probably going to happen on Monday or Tuesday, 255 00:14:36.039 --> 00:14:39.879 and we are going to impose a temporary tariff search 256 00:14:40.000 --> 00:14:43.559 arge on all of your invoices beginning Monday or Tuesday 257 00:14:43.679 --> 00:14:46.720 of five percent. We did five percent for a couple 258 00:14:46.799 --> 00:14:50.159 of reasons. Number one, we wanted to kind of help 259 00:14:50.200 --> 00:14:53.960 our dealers feel the pain and what are they going 260 00:14:54.000 --> 00:14:55.480 to do? They just going to pass it on to 261 00:14:55.519 --> 00:14:57.120 the end consumer. And a lot of. 262 00:14:57.159 --> 00:14:59.279 The dealers already wrote back to us. 263 00:14:59.159 --> 00:15:02.639 Bill and said that's fine, We're going to pass the 264 00:15:02.679 --> 00:15:06.000 five percent onto the dealers. And we fully understand the 265 00:15:06.080 --> 00:15:08.440 situation you in. We've been watching the news. 266 00:15:08.200 --> 00:15:11.279 We've expected this. Probably the toughest. 267 00:15:10.919 --> 00:15:14.559 Decision for us was when to impose the tariffs, because 268 00:15:14.600 --> 00:15:18.480 obviously we have goods already in the warehouse that don't 269 00:15:18.480 --> 00:15:21.320 have tariffs. So do you wait three months and say 270 00:15:21.399 --> 00:15:23.799 let's get rid of those goods and then impose tariffs. 271 00:15:24.080 --> 00:15:25.960 And we spoke to a couple of our key dealers 272 00:15:26.000 --> 00:15:29.720 and said no, because then you'd have to delay removing 273 00:15:29.759 --> 00:15:33.679 the temporary tariffs surcharge three months down the roads. 274 00:15:33.679 --> 00:15:35.840 So they said, we're okay with this. 275 00:15:36.480 --> 00:15:39.879 The minute the president or the government announces the five 276 00:15:39.879 --> 00:15:41.000 percent tariff. 277 00:15:40.960 --> 00:15:41.320 Let's go. 278 00:15:41.519 --> 00:15:44.279 Then the minute they stop, let's stop. 279 00:15:44.320 --> 00:15:46.720 Then the rights of fact, we had a plan for. 280 00:15:46.799 --> 00:15:50.279 Monday, and we now realize the executive order is only 281 00:15:50.279 --> 00:15:51.080 going to be signed. 282 00:15:50.879 --> 00:15:53.039 Today, so we've delayed it the day until Tuesday. 283 00:15:53.200 --> 00:15:55.240 Okay, So let's talk about all of a sudden, And 284 00:15:55.279 --> 00:15:57.960 it was ten percent, which we're sucking up half of that, 285 00:15:58.159 --> 00:16:00.799 So it's five percent right off the bottom line for US. 286 00:16:01.919 --> 00:16:04.440 Tariffs are going to kick in. It's going to be 287 00:16:04.480 --> 00:16:07.679 a trade war. Trump has said the tariffs are going 288 00:16:07.679 --> 00:16:11.000 to go up, which I believe, which we believe completely. 289 00:16:11.360 --> 00:16:14.840 So what do you do? So do we leave China? 290 00:16:15.639 --> 00:16:17.919 Are we now looking or are you now looking because 291 00:16:17.919 --> 00:16:20.639 you obviously we're in the business, But are we looking 292 00:16:20.679 --> 00:16:25.440 at Vietnam, looking at the Philippines where there are no tariffs? 293 00:16:25.519 --> 00:16:25.759 Yep? 294 00:16:25.840 --> 00:16:29.039 So we actually the funny thing is we were looking 295 00:16:29.039 --> 00:16:31.840 at Mexico and that just didn't pan out, and thank 296 00:16:31.879 --> 00:16:34.360 god it didn't, because that's twenty five percentence, you know. 297 00:16:34.799 --> 00:16:37.600 We then looked at Vietnam and our friends. 298 00:16:37.240 --> 00:16:39.440 Over there said to us, we're a little. 299 00:16:39.200 --> 00:16:44.440 Concerned because the balance of trade between Vietnam and China, 300 00:16:44.919 --> 00:16:48.639 excuse me, between Vietnam and the USA is shrinking every day. 301 00:16:48.720 --> 00:16:51.320 So at some point in time they're going to be 302 00:16:51.360 --> 00:16:53.840 next on the hit list for the USA. So we've 303 00:16:53.840 --> 00:16:57.360 come to the conclusion the best countries for us right now, 304 00:16:57.759 --> 00:17:00.720 the second best countries Thailand, and our best option right 305 00:17:00.759 --> 00:17:04.559 now is Cambodia, of all places. So we have moved 306 00:17:04.559 --> 00:17:08.799 some tooling from China to Cambodia to test a couple 307 00:17:08.839 --> 00:17:11.359 of units out to make sure the quality is the same. 308 00:17:11.680 --> 00:17:14.880 And we believe the balance of trade with Cambodia is 309 00:17:15.000 --> 00:17:17.440 just fine, and we want to see tariffs there for 310 00:17:17.799 --> 00:17:19.079 maybe five ten years. 311 00:17:19.240 --> 00:17:22.160 Yeah, and keep in mind that, as I said earlier, 312 00:17:22.440 --> 00:17:24.680 the prices are going to go up, and one of 313 00:17:24.720 --> 00:17:27.240 the reasons, and it's not the fentanyl for Mexico, and 314 00:17:27.279 --> 00:17:29.279 it's not the immigration from Canada. 315 00:17:29.799 --> 00:17:32.759 I mean, the real issue is financial and. 316 00:17:32.599 --> 00:17:36.960 The more we buy from a country, the more imbalance 317 00:17:37.039 --> 00:17:40.680 there is, and the more Trump wants to put tariffs 318 00:17:40.799 --> 00:17:45.039 until it reached the point where there's zero now. But 319 00:17:45.279 --> 00:17:48.160 the disparity grows and grows and grows, and we buy 320 00:17:48.200 --> 00:17:50.640 too much from them, and boom, it's tariff time. 321 00:17:51.079 --> 00:17:53.200 And we're looking at Cambodia now. 322 00:17:53.400 --> 00:17:57.440 Who would have ever thought Cambodia where we'd be manufacturing 323 00:17:58.240 --> 00:18:03.720 our cookwar at Lake Industries dot com. That's Lake Industries 324 00:18:03.920 --> 00:18:08.559 dot com. Got I'm such a such. 325 00:18:08.359 --> 00:18:11.400 A fantastic This is the greatest segment of the whole morning. 326 00:18:11.480 --> 00:18:12.119 Thank you for this. 327 00:18:14.039 --> 00:18:16.480 We never thought. We never thought Cambodia for a minute. 328 00:18:16.559 --> 00:18:19.599 As a matter of fact, the bigger companies who anticipated 329 00:18:19.640 --> 00:18:22.400 this long before us because of the deeper pockets that 330 00:18:22.519 --> 00:18:25.759 you mentioned, they've been at Vietnam for years right now. 331 00:18:26.000 --> 00:18:28.279 Hence the balance of trade. I mean, the thing we need, 332 00:18:28.319 --> 00:18:30.559 and I know you've mentioned this morning, is we. 333 00:18:30.440 --> 00:18:32.920 Need stable trade policies. That's what we need. 334 00:18:33.119 --> 00:18:35.960 When I was fortunate enough to emigrate to this country, 335 00:18:36.680 --> 00:18:39.599 you know, Ronald Reagan was in power, and he was 336 00:18:39.680 --> 00:18:41.720 the best at it. And if you think about it, 337 00:18:43.039 --> 00:18:46.039 the American manufacturers that survived made. 338 00:18:45.759 --> 00:18:46.960 The best products in the world. 339 00:18:47.039 --> 00:18:50.720 When I first emigrated, the American cars were lousy, and 340 00:18:50.759 --> 00:18:54.000 then we had this flood of Japanese cause Korean cars, 341 00:18:54.079 --> 00:18:57.319 and guess what the American cars caught up, and arguably 342 00:18:57.759 --> 00:19:00.839 they're as good, if not better. So free trade in 343 00:19:00.880 --> 00:19:04.799 a lot of ways is a good thing. I do 344 00:19:04.960 --> 00:19:09.039 understand what the Trump administration's doing because this is going 345 00:19:09.119 --> 00:19:13.640 to have an impact positively immediately, you know, a positive 346 00:19:13.680 --> 00:19:16.720 impact immediately. Long term, I'm not so sure. 347 00:19:16.880 --> 00:19:19.920 Now I'm going to argue the other side that short 348 00:19:20.039 --> 00:19:23.279 term it's going to have a negative impact because prices 349 00:19:23.319 --> 00:19:28.359 are going up tomorrow. And like many companies, since we 350 00:19:28.480 --> 00:19:34.680 manufacture or we buy from manufacture overseas, switching to a 351 00:19:34.720 --> 00:19:39.039 different company means the dies that stamp out our cookwar 352 00:19:40.240 --> 00:19:43.039 the companies that manufacture this. How long does it take 353 00:19:43.400 --> 00:19:48.759 to switch from Chinese factories and you find someone in 354 00:19:48.839 --> 00:19:53.920 Cambodia that's willing to do this, what is that timeline? 355 00:19:54.359 --> 00:19:56.640 That is a long one. So it's not as long 356 00:19:56.680 --> 00:19:58.960 as it takes to both factories in America, of course, 357 00:19:58.960 --> 00:20:02.400 which is anyway from two years to five years in 358 00:20:02.559 --> 00:20:05.759 our case to get full production going, it's at least 359 00:20:05.799 --> 00:20:08.519 a year to get it going. We're testing it now, 360 00:20:08.599 --> 00:20:09.880 but it's at least a year. 361 00:20:10.119 --> 00:20:12.759 Yeah, And that's the point, that's the point I am making. 362 00:20:13.960 --> 00:20:17.359 Where we want American workers, we want factories here the 363 00:20:17.440 --> 00:20:19.440 problem is it takes a long. 364 00:20:19.279 --> 00:20:22.400 Time to bring the jobs over. All, right, Savil, thank 365 00:20:22.440 --> 00:20:25.920 you and you're welcome. Yeah, I appreciate that. Do I 366 00:20:25.960 --> 00:20:27.319 pitch one more time our company? 367 00:20:27.799 --> 00:20:27.920 Na? 368 00:20:29.519 --> 00:20:31.160 Okay, sure please, I'm on my knees. 369 00:20:31.359 --> 00:20:35.920 Okay, Lake Industries dot com. Lake Industries dot com the 370 00:20:35.920 --> 00:20:38.319 best cook wear in the world. All right, thanks Savil. 371 00:20:38.519 --> 00:20:40.720 Thanks, But by the way. 372 00:20:40.640 --> 00:20:42.519 Am I in trouble with I don't think so, because 373 00:20:42.559 --> 00:20:45.720 as long as I disclose that I am a principal, 374 00:20:45.839 --> 00:20:47.039 I can pitch the product. 375 00:20:48.240 --> 00:20:48.519 Right. 376 00:20:49.200 --> 00:20:50.079 Why are you looking at me? 377 00:20:51.119 --> 00:20:53.079 Because you know the rule used to be in management? 378 00:20:53.119 --> 00:20:54.039 You know the rules more. 379 00:20:54.240 --> 00:20:56.000 You know I've forgotten everything. 380 00:20:57.880 --> 00:20:59.119 Okay, fair enough, it's. 381 00:20:59.039 --> 00:21:01.920 The first time on his knees for you, right, Bob. 382 00:21:01.920 --> 00:21:04.799 Oh Well said, give me a break. Now, it's a 383 00:21:04.839 --> 00:21:05.279 lot of fun. 384 00:21:05.319 --> 00:21:08.240 We spend a lot of time talking about the cost 385 00:21:08.279 --> 00:21:12.000 of manufacturing, especially now that terrff world is coming in. 386 00:21:12.240 --> 00:21:13.880 All right, did I just. 387 00:21:13.880 --> 00:21:17.920 Hear amy I was putting together the next segment that 388 00:21:18.319 --> 00:21:20.480 the tariff was supposed to kicking tomorrow has now been 389 00:21:20.519 --> 00:21:21.559 delayed thirty days. 390 00:21:21.799 --> 00:21:27.799 Yes, apparently, Claudia Scheinbaum from Mexico and President Trump had 391 00:21:27.799 --> 00:21:30.920 a phone call. And after the phone call, they said, okay, 392 00:21:30.920 --> 00:21:33.119 we're going to put these on hold for one month. 393 00:21:33.200 --> 00:21:36.039 And Mexico is sending ten thousand troops to the border. 394 00:21:37.119 --> 00:21:42.400 Now the tariff is it just on Mexico? Do the 395 00:21:42.440 --> 00:21:45.359 tariffs on Canada and China remaining place? 396 00:21:45.839 --> 00:21:48.440 As far as we know, yes, this is this information 397 00:21:48.519 --> 00:21:52.799 is just getting into the KFI newsroom. Trump is expected 398 00:21:52.799 --> 00:21:56.319 to talk to Canada's Prime minister today at three, which 399 00:21:56.359 --> 00:21:57.880 I believe is Eastern time. 400 00:21:58.440 --> 00:22:03.400 Okay, case in point. This is Donald Trump at his best. 401 00:22:04.079 --> 00:22:06.759