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<v Speaker 1>The President of the tariffs Amazon, what is going on?

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<v Speaker 1>It's time for Gary and Shannon show breakdown?

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<v Speaker 2>So why doesn't somebody tell me what they think is

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<v Speaker 2>going on?

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<v Speaker 1>Those can be hard explain this to me like I'm

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<v Speaker 1>a two year old, OK.

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<v Speaker 3>You need a breakdown with Gary and Shannon.

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<v Speaker 1>Starts with a report that Amazon was going to display

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<v Speaker 1>the cost of tariffs next to the total price of

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<v Speaker 1>products on its site. This was a question this morning

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<v Speaker 1>posed to Caroline Levitt and Scott Bessen, the Treasury Secretary

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<v Speaker 1>at the White House.

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<v Speaker 4>So it was reported this morning that Amazon will soon

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<v Speaker 4>display a little number next to the price of each

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<v Speaker 4>product that shows how much the Trump tariffs are adding

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<v Speaker 4>to the cost of each product. So isn't that a

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<v Speaker 4>perfect crystal clear demonstration that it's the American consumer and

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<v Speaker 4>not China you is going to have to pay for

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<v Speaker 4>these policies.

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<v Speaker 5>I will take this since I just got off the

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<v Speaker 5>phone with President about Amazon's announcement. This is a hostile

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<v Speaker 5>and political act by Amazon. Why did Amazon do this

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<v Speaker 5>when the Biden administration height inflation to the highest level

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<v Speaker 5>in forty years? And I would also add that it's

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<v Speaker 5>not a surprise because as Reyers recently wrote Amazon has

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<v Speaker 5>partnered with a Chinese propaganda arm.

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<v Speaker 6>Okay, go on, I was just going to say that

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<v Speaker 6>the word hostile evokes a terminology that's used for war,

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<v Speaker 6>a hostile act. Anyway, the administration's reaction, Amazon says, was

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<v Speaker 6>based on a misinterpretation of internal plans being considered by Amazon,

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<v Speaker 6>rather than a final decision made by the company. They

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<v Speaker 6>considered the idea Amazon's Hall service did, that is, their

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<v Speaker 6>recently launched low cost storefront. They considered the idea of

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<v Speaker 6>listing import charges on certain products, but this was never

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<v Speaker 6>an approved idea.

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<v Speaker 1>They also add were looking at adding a separate line

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<v Speaker 1>item to products on the Hall site in response to

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<v Speaker 1>the removal of the dominimous trade loophole. That consideration was

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<v Speaker 1>not related to the tariffs one hundred and forty five

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<v Speaker 1>percent terariffs that we've seen on imports from China now.

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<v Speaker 1>Punch Bowl News was the organization that originally reported that

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<v Speaker 1>Amazon Big Amazon would soon, in quotes, begin displaying the

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<v Speaker 1>cost of tariffs alongside the price of each product, citing

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<v Speaker 1>a source familiar with the company's plans. Again, as of

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<v Speaker 1>right now, Amazon said it did consider displaying import charges,

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<v Speaker 1>but that it was never approved and that it is

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<v Speaker 1>quote not going to happen.

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<v Speaker 6>Small businesses are having a tough go of this, not

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<v Speaker 6>the Amazons of the world. They are reporting dwindling inventory,

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<v Speaker 6>skyrocketing invoices, and the Trump administration has raised tariffs on

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<v Speaker 6>goods from China to one hundred and forty five percent

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<v Speaker 6>in early this month, early April. Now, he did say

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<v Speaker 6>last week where we last left off with Trump, he

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<v Speaker 6>said he expected the tariffs to come down substantially. And

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<v Speaker 6>that is kind of what small businesses are laser focused

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<v Speaker 6>on when the back and forth causing a lot of

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<v Speaker 6>problems when it comes to what is a bottom line

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<v Speaker 6>without a lot of wiggle room with these businesses.

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<v Speaker 1>The bigger businesses are getting some concessions. Trump is expected

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<v Speaker 1>to soften the automotive tariffs. It would prevent duties on

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<v Speaker 1>the foreign made cars from stacking on top of the

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<v Speaker 1>other tariffs that he is imposed. So as of right now,

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<v Speaker 1>the Wall Street Journal is reporting that automakers that pay

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<v Speaker 1>the car tariffs will not be charged for other tariffs

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<v Speaker 1>things like steel and aluminum. The move would also be retroactive,

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<v Speaker 1>meaning that those car makers could be reimbursed for things

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<v Speaker 1>that they've already paid. The five percent tariff on finished

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<v Speaker 1>foreign made cars went into effect earlier this month.

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<v Speaker 6>The Treasury Secretary Scompsen says the goal there is to

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<v Speaker 6>help automakers create more domestic manufacturing jobs.

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<v Speaker 1>I don't know if that's going to happen.

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<v Speaker 6>Well, we're okay in this department, so let's create more jobs.

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<v Speaker 6>I don't see that happening. You're not getting that much

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<v Speaker 6>savings to create jobs domestically, at least not at this point.

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<v Speaker 1>And in the meantime, we're starting to see the very

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<v Speaker 1>immediate effects of the tariff war in that the imports

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<v Speaker 1>into the ports of LA and Long Beach are going down.

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<v Speaker 1>An interview this morning Jean Soroka, who has one of

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<v Speaker 1>the most polished speaking abilities I've heard in a long time,

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<v Speaker 1>actually explains what we're going to see in the next

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<v Speaker 1>couple of weeks here in LA and Long Beach. Jean Soroka,

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<v Speaker 1>Executive Director of the Port of LA gave an interview

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<v Speaker 1>this morning CNBC, and he was talking about the impact

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<v Speaker 1>that tariffs and the fight over tariff's, potential trade war, etc.

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<v Speaker 1>Is going to have at the point of the spear

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<v Speaker 1>when it comes to Imports, which is the largest port

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<v Speaker 1>on the West Coast.

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<v Speaker 3>The ports of la and Long Beach to be down

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<v Speaker 3>just a little bit over thirty five percent next week

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<v Speaker 3>compared to last year, and it's a precipitous drop in volume,

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<v Speaker 3>with a number of major American retailers stopping all.

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<v Speaker 2>Shipments from China based on the tariffs.

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<v Speaker 1>The interesting thing I think about this is the way

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<v Speaker 1>he described not just the port but the shipping companies

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<v Speaker 1>themselves trying to make up for this, because remember, China

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<v Speaker 1>makes up the bulk of imports into our country. We

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<v Speaker 1>get most of our stuff that he referred to it

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<v Speaker 1>as China is our factory in that they produce so much,

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<v Speaker 1>so the shippers are going to try to go elsewhere

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<v Speaker 1>perhaps and get other things to pick up before they

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<v Speaker 1>come into the United States.

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<v Speaker 2>Now, what we have heard in talking directly to CEOs

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<v Speaker 2>and senior executives of the shipping lines is they'll try

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<v Speaker 2>to add a couple of port calls in a low

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<v Speaker 2>along the Southeast Asia routes where cargo is still moving,

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<v Speaker 2>albeit at a ten percent tariff, But realistically speaking, until

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<v Speaker 2>some accord or framework can be reached with China, the

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<v Speaker 2>volume coming out of there save a couple of different

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<v Speaker 2>commodities will be very light at best.

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<v Speaker 6>Well, yeah, you want to leave everything where it is.

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<v Speaker 6>You don't want to unpack it if it's going to

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<v Speaker 6>cost you more to either buy it or sell it, right,

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<v Speaker 6>So why would you have any sense of urgency? I

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<v Speaker 6>would just leave things where they are until something gets

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<v Speaker 6>ironed out here.

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<v Speaker 1>Well, on this his description of how long it takes

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<v Speaker 1>to iron things out is going to be important as well.

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<v Speaker 6>And that's what goes back to what I was talking

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<v Speaker 6>about in the last segment. With small businesses, one during

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<v Speaker 6>you know, with their inventory dwindling is they don't want

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<v Speaker 6>to buy new stuff at a heightened rate if they

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<v Speaker 6>can wait, because there's no wiggle room when it comes

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<v Speaker 6>to the bottom line.

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<v Speaker 1>Yeah, So if you are that small business that relies

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<v Speaker 1>on raw materials from China or even finished products from

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<v Speaker 1>China that you resell, does it make financial sense to

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<v Speaker 1>try to find a new supplier in a place like

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<v Speaker 1>Cambodia or Vietnam.

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<v Speaker 2>Major American retailers put their orders into factories in Asia

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<v Speaker 2>three or four months before a vessel even sales our way,

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<v Speaker 2>which is an additional two week transit time. So simply

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<v Speaker 2>shifting from your manufacturer in China over to Cambodia, Vietnam, Indonesia.

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<v Speaker 2>That quickly normally doesn't happen. There's some negotiations that have

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<v Speaker 2>to take place in addition to finding the necessary capacity,

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<v Speaker 2>because a lot of folks are running to these locations

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<v Speaker 2>now to try to augment the loss of volume coming

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<v Speaker 2>out of China.

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<v Speaker 1>This guy has taken a public speaking class.

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<v Speaker 6>Clearly is that name sounds very familiar?

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<v Speaker 1>Soroka as head of LA Portal, I know who now,

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<v Speaker 1>and then he described this is what in terms of

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<v Speaker 1>on the streets for consumers, what the impact would be.

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<v Speaker 1>We are going to see a shrinking of materials, a

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<v Speaker 1>shrinking of inventories, but we're not necessarily going to see

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<v Speaker 1>empty shelves completely.

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<v Speaker 5>Now.

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<v Speaker 2>I don't see a complete emptiness on store shelves or

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<v Speaker 2>online what we're buying. But if you're out looking for

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<v Speaker 2>a blue shirt, you might find eleven purple ones and

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<v Speaker 2>one blue and a size that's not yours. So we'll

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<v Speaker 2>start seeing less choice on those shelves simply because we're

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<v Speaker 2>not getting the variety of goods coming in here based

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<v Speaker 2>on the additional costs in place, and for that one

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<v Speaker 2>blue shirt that's still left, you'll see a price hike.

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<v Speaker 1>So if you're in the market for a blue shirt

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<v Speaker 1>right now, he says, there's about five to seven weeks,

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<v Speaker 1>depending on the industry, five to seven weeks of inventory

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<v Speaker 1>for just different products, and that if we don't see

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<v Speaker 1>a lot of movement within the next couple of weeks,

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<v Speaker 1>that's when you're going to start seeing things. As we

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<v Speaker 1>get deeper into May, probably early to mid June is

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<v Speaker 1>when we're going to start actually noticing some of the

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<v Speaker 1>shortages that have been threatened because of the tariffs. So

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<v Speaker 1>and again, the President has said this one hundred and

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<v Speaker 1>forty five percent tariff on Chinese products will not last,

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<v Speaker 1>that there will be some movement. We just don't know

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<v Speaker 1>what sort of a timeline that is. We've also not

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<v Speaker 1>been shown any of the alleged deals that have been

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<v Speaker 1>worked on right now between the United States and other

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<v Speaker 1>countries outside of China that I think would have an

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<v Speaker 1>impact at least on consumer sentiment that they the feeling

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<v Speaker 1>that something is being done.

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<v Speaker 6>I don't know, because until they get to China, I mean,

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<v Speaker 6>I don't really I don't know how much the deals

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<v Speaker 6>with the smaller places or smaller trade organizations matter.

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<v Speaker 1>I just think at least there would be some momentum.

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<v Speaker 1>At this point. They keep talking about it was and

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<v Speaker 1>they're not showing any sort of progress. Yeah, so I

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<v Speaker 1>don't know.

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<v Speaker 6>Yeah, that would be nice to see something right, something tangible,