WEBVTT 1 00:00:01.040 --> 00:00:02.600 It's nice with y. 2 00:00:03.279 --> 00:00:06.000 I'm telling you easy Boston's Radio. 3 00:00:07.400 --> 00:00:09.160 All right, thanks very much, Dan Watkins. 4 00:00:09.199 --> 00:00:13.320 We are going to open up our conversation that we 5 00:00:13.480 --> 00:00:19.640 started last night about the I'll call them the Trump tariffs. 6 00:00:19.800 --> 00:00:26.000 Will be alliterative with me. Is hold on for one second, Rob, 7 00:00:26.039 --> 00:00:27.440 hold on for one second. 8 00:00:30.879 --> 00:00:31.160 Tomorrow? 9 00:00:31.800 --> 00:00:32.079 All right? 10 00:00:33.960 --> 00:00:34.359 All right? 11 00:00:35.039 --> 00:00:36.840 You never know who calls you when you leave the 12 00:00:36.840 --> 00:00:39.439 phone on here on the radio. It just kind of 13 00:00:40.000 --> 00:00:42.880 kind of works that way anyway, Sorry for that. Pardon 14 00:00:42.920 --> 00:00:47.280 that interruption. PT I with me is Greg Styller. Greg 15 00:00:47.439 --> 00:00:52.439 is teachers at the Questrum School of Business at Boston University. 16 00:00:53.000 --> 00:00:56.640 Uh and I can't think of anyone who has as 17 00:00:56.719 --> 00:01:01.280 much knowledge about some of the foreign countries who have 18 00:01:01.359 --> 00:01:07.400 been mentioned prominently in the last few days. Greg, Professor Staller, 19 00:01:07.680 --> 00:01:09.079 welcome back to Night's Side. 20 00:01:09.719 --> 00:01:11.439 Thank you, Dan, it's going to be back on the show. 21 00:01:12.040 --> 00:01:17.560 So for those who do not remember our previous conversations. 22 00:01:18.959 --> 00:01:26.359 You have taught business, entrepreneurship, international business for how many years? 23 00:01:26.959 --> 00:01:30.120 Tell us explain to us the type of business that 24 00:01:30.560 --> 00:01:32.920 you talk about and that you teach, and that you've 25 00:01:32.959 --> 00:01:35.640 lived now for what twenty twenty five years? 26 00:01:35.959 --> 00:01:39.519 Yeah, so I'm about to conclude my tenth year. Bu, 27 00:01:39.840 --> 00:01:45.079 I am also concluding my twenty fifth consecutive year teaching, 28 00:01:45.480 --> 00:01:47.040 and I can't think of a better way to spend 29 00:01:47.040 --> 00:01:47.480 my time. 30 00:01:48.239 --> 00:01:52.760 Yeah, and amongst your travels, and you travel quite a 31 00:01:52.760 --> 00:01:58.359 bit with your students. You have your MBA from Harvard 32 00:01:58.400 --> 00:02:04.159 and you're at Cornell undergrad and you travel the world 33 00:02:04.319 --> 00:02:09.719 with students. Write, You read and write, and you speak, 34 00:02:09.759 --> 00:02:14.840 read and write seven languages. I'm always amazed at that capability. 35 00:02:14.919 --> 00:02:20.240 I have trouble speaking one. Greg, And you have traveled 36 00:02:20.280 --> 00:02:24.599 to China since nineteen ninety four, thirty years. You've been 37 00:02:24.639 --> 00:02:27.919 over there approximately twice a year. You've been there at 38 00:02:28.000 --> 00:02:32.800 least fifty times during this period of thirty years, most 39 00:02:32.879 --> 00:02:39.000 often bringing undergraduates with you, interacting with Chinese companies. So 40 00:02:39.599 --> 00:02:43.199 I think that more than establishes your your bona fides 41 00:02:44.120 --> 00:02:49.120 to comment on tariffs. So is there anything else that 42 00:02:49.159 --> 00:02:52.520 you'd like to add here for people to understand your 43 00:02:52.639 --> 00:02:54.439 experience that I haven't touched upon. 44 00:02:54.879 --> 00:02:57.639 No, thank you, I mean I just want to preface 45 00:02:57.680 --> 00:03:00.199 this by saying that I appreciate being back and night 46 00:03:00.280 --> 00:03:02.199 I'm taking a non part as an approach to this. 47 00:03:02.639 --> 00:03:04.719 I want to go over the facts from you know, 48 00:03:04.840 --> 00:03:08.960 from President Trump's perspective, from the US consumers perspective, and 49 00:03:09.000 --> 00:03:11.439 I'm hoping to have some interesting callers. 50 00:03:11.879 --> 00:03:13.800 Yeah, I suspect we will. 51 00:03:14.599 --> 00:03:19.360 So the question here and I'll give you a question 52 00:03:19.479 --> 00:03:24.599 that I think will is a fair question. This appears 53 00:03:24.639 --> 00:03:32.120 to me to be a gamble by President Trump that 54 00:03:32.280 --> 00:03:38.080 will either mark his presidency as one of the most 55 00:03:38.120 --> 00:03:43.719 significant presidencies in the history of the country or it 56 00:03:43.759 --> 00:03:47.439 will doom him to be sort of put in that 57 00:03:48.319 --> 00:03:53.439 hall of presidents that Hoover, Herbert Hoover is the most 58 00:03:53.520 --> 00:03:55.560 is the most prominent former president. 59 00:03:55.560 --> 00:04:00.000 I mean, it seems to me he's this is a huge, huge, 60 00:04:00.039 --> 00:04:01.560 huge sea. 61 00:04:01.520 --> 00:04:06.039 Change in the way are not only the tariffs, but 62 00:04:06.560 --> 00:04:11.360 what else is going on as well. I'm he's he's 63 00:04:11.479 --> 00:04:13.639 promised to do this, But for him to try to 64 00:04:13.680 --> 00:04:18.319 get all of this started within the first one hundred 65 00:04:18.399 --> 00:04:21.360 days of his administration, it seems to me to be 66 00:04:23.000 --> 00:04:27.240 either a brilliant move or he's bitten off much more 67 00:04:27.279 --> 00:04:30.319 than he can chew. Let's let's look at it. What 68 00:04:30.360 --> 00:04:34.040 are the pluses for him, the potential pluses that are reasonable, 69 00:04:34.519 --> 00:04:38.040 and what are the what's the potential downside, he only has, 70 00:04:38.720 --> 00:04:40.959 you know, a little more than well three and a 71 00:04:41.000 --> 00:04:43.240 half years left in this office, so it's not as 72 00:04:43.319 --> 00:04:45.920 if he's starting the potential for eight years. 73 00:04:46.240 --> 00:04:47.000 He'll and I. 74 00:04:46.959 --> 00:04:49.560 Would also argue that he probably only has a year 75 00:04:49.600 --> 00:04:51.199 and a half with the midterm election come. 76 00:04:51.319 --> 00:04:53.839 Oh of course, Oh absolutely, he has what I would 77 00:04:53.959 --> 00:04:56.480 I called last night a very short runway. But let's 78 00:04:56.480 --> 00:04:58.720 talk about what do you think looking at it from 79 00:04:58.720 --> 00:05:01.439 his perspective, what do you I think is motivating him? 80 00:05:01.480 --> 00:05:04.000 What do you think he is trying to accomplish. 81 00:05:04.639 --> 00:05:07.600 Yes, I think that if you look at the numbers, 82 00:05:08.199 --> 00:05:11.639 the trade gap contracted by a little bit over six 83 00:05:11.720 --> 00:05:15.240 percent between January and February to one hundred and twenty 84 00:05:15.279 --> 00:05:19.839 two point seven billion dollars. So he is asserting, and 85 00:05:20.000 --> 00:05:23.920 he said this for a long time, that the United 86 00:05:23.920 --> 00:05:27.160 States doesn't stand for enough, that we are a debtor nation, 87 00:05:27.480 --> 00:05:31.240 a nation. He specifically is saying that people are ripping 88 00:05:31.399 --> 00:05:34.959 us off, and he's trying to even the score by 89 00:05:35.120 --> 00:05:38.079 generating government revenue. I mean, because at the end of 90 00:05:38.160 --> 00:05:40.800 the day, that's what a tariff is, right, It's a 91 00:05:40.879 --> 00:05:44.480 federal tax set by Congress that is applied to goods 92 00:05:44.560 --> 00:05:49.120 at the border. The difference is that, you know, unlike 93 00:05:49.439 --> 00:05:52.800 incomer sales taxes, it varies by product and by the 94 00:05:52.839 --> 00:05:57.759 originating country. That's what he is his saying. And he 95 00:05:57.959 --> 00:06:02.680 is going through history, and he is invoking the i 96 00:06:02.959 --> 00:06:07.160 ee PA, the International Emergency Economic Powers Act in nineteen 97 00:06:07.240 --> 00:06:10.439 seventy seven, to address what he refers to as the 98 00:06:10.600 --> 00:06:12.720 large and persistent trade deficit. 99 00:06:13.720 --> 00:06:14.000 Right. 100 00:06:14.040 --> 00:06:18.240 But you and I know that this trade deficit has 101 00:06:18.319 --> 00:06:23.199 existed for decades, for decades, and I can remember when 102 00:06:23.439 --> 00:06:28.439 it was talked about in the nineteen nineties, the Bush 103 00:06:28.560 --> 00:06:32.000 Clinton years and on into the Clinton years as this 104 00:06:32.199 --> 00:06:36.959 horrible problem. But it sort of disappeared from the headlines 105 00:06:37.000 --> 00:06:38.360 as if it had been solved. 106 00:06:38.399 --> 00:06:39.519 It hadn't been solved. 107 00:06:40.360 --> 00:06:45.360 Why is it being resurrected at this point by Donald 108 00:06:45.399 --> 00:06:51.920 Trump as such an important hill to die on if 109 00:06:51.920 --> 00:06:52.319 you will. 110 00:06:53.319 --> 00:06:54.879 I think I hild a die on as a very 111 00:06:54.879 --> 00:06:58.959 good phrase. I mean, if you think about what happened 112 00:06:59.040 --> 00:07:02.720 in his first he tried a bunch of stuff, I mean, 113 00:07:02.800 --> 00:07:07.680 Visa VI tariffs. It was modest gains and steel jobs, right, 114 00:07:08.680 --> 00:07:12.959 And I think he realizes that unless he is able 115 00:07:12.959 --> 00:07:15.680 to change the Constitution, he's only got one term left, 116 00:07:16.079 --> 00:07:18.600 so he's trying to, as I look at it, go bigger, 117 00:07:18.680 --> 00:07:22.079 go home, and try and right this wrong. And you know, again, 118 00:07:22.319 --> 00:07:25.639 I'm a numbers guy. Right by the numbers, the United 119 00:07:25.639 --> 00:07:28.680 States has the largest GDP in the world. Right, that's 120 00:07:28.720 --> 00:07:32.759 not news to anybody. It's twenty almost twenty eight trillion dollars. 121 00:07:33.120 --> 00:07:38.519 The next closest country is China, and that's only eighteen 122 00:07:38.800 --> 00:07:42.240 of that twenty eight trillion, and then Germany is four 123 00:07:42.279 --> 00:07:45.120 point five trillion. So it's not like we're in a 124 00:07:45.199 --> 00:07:48.319 tight race here between the second or third countries in 125 00:07:48.360 --> 00:07:51.639 the world. But he is taking the tack, as I 126 00:07:51.639 --> 00:07:53.360 said earlier, going bigger, going home. 127 00:07:55.040 --> 00:07:58.600 That I that I do understand. But when you talked 128 00:07:58.600 --> 00:08:03.319 about the teriffs, the tariffs are going to be paid. 129 00:08:04.879 --> 00:08:07.959 Let's just talk about the structure. So Vovo has just 130 00:08:08.000 --> 00:08:11.639 announced that they are increasing their and you may have 131 00:08:11.680 --> 00:08:17.079 seen this story. They're they're increasing their manufacturing in Mexico 132 00:08:17.240 --> 00:08:22.319 from seven hundred million to a billion, which I think 133 00:08:22.560 --> 00:08:27.319 is a message from Vovo to this a Swedish company. 134 00:08:28.160 --> 00:08:30.399 I'm not sure who owns Vovo at this point. I 135 00:08:30.720 --> 00:08:34.440 don't believe there are they owned by China. At this point, 136 00:08:34.480 --> 00:08:36.879 although they obviously thought of as a as a as 137 00:08:36.879 --> 00:08:39.200 a as a sweet. 138 00:08:39.480 --> 00:08:41.919 They are owned by a property that's called jerji On 139 00:08:42.039 --> 00:08:47.440 Gully Holding Group Limited or colui as Geely Holding. 140 00:08:47.679 --> 00:08:54.559 Correct, So, so that is a message from China again. 141 00:08:54.639 --> 00:08:58.440 Reuters is reporting tonight that Vovo to boost its Mexico 142 00:08:58.559 --> 00:09:06.960 plant investment to one billion dollars. I assume that that 143 00:09:07.279 --> 00:09:11.279 is not the sort of response that President Trump was 144 00:09:11.360 --> 00:09:14.200 hoping to hear on the first day. 145 00:09:14.080 --> 00:09:15.960 After correct, I mean, you asked me to start with 146 00:09:16.000 --> 00:09:18.080 the pros, we'll move on to the cons. 147 00:09:18.159 --> 00:09:18.360 Right. 148 00:09:18.720 --> 00:09:23.840 I think the biggest uncontrollable con that nobody can predict 149 00:09:24.440 --> 00:09:27.519 is the effect of reciprocal tariffs. And I think that 150 00:09:27.639 --> 00:09:31.000 President Trump was sort of hoping that, and this is 151 00:09:31.039 --> 00:09:35.480 his negotiation strategy, right, that if he is able to 152 00:09:35.519 --> 00:09:38.919 throw the power of the United States around and convince 153 00:09:39.120 --> 00:09:43.080 other countries to change what they're doing to appease the 154 00:09:43.159 --> 00:09:45.960 United States, he'll take that as a win. And if 155 00:09:45.960 --> 00:09:48.360 you think about what he did with Columbia with the 156 00:09:48.360 --> 00:09:51.799 federal funding and everything else, Columbia changed its policy because 157 00:09:51.840 --> 00:09:54.600 they didn't want to lose the federal fundings. The problem 158 00:09:54.679 --> 00:09:58.120 with the reciprocal tariffs is that he's not in control. 159 00:09:58.440 --> 00:10:00.840 And to your point, Dan, a few minutes go, if 160 00:10:00.879 --> 00:10:03.759 he says X, these other countries are going to say 161 00:10:03.759 --> 00:10:08.039 why and and now you literally are deep in the 162 00:10:08.039 --> 00:10:09.600 throes of a reciprocal trade war. 163 00:10:10.600 --> 00:10:14.679 My guest is Professor Greg Staller. He teaches at the 164 00:10:14.759 --> 00:10:18.679 Questroom School of Business at Boston University. I have a 165 00:10:18.720 --> 00:10:23.240 bunch more questions. He's very clear and concise in his answers. 166 00:10:23.679 --> 00:10:27.480 If you have any question at all, I'm coming back, 167 00:10:27.679 --> 00:10:30.320 but I'll open up the phone line six one, seven, two, five, 168 00:10:30.360 --> 00:10:34.080 four ten thirty six one seven, nine, three one ten thirty. 169 00:10:34.679 --> 00:10:39.799 This is really a time of questions. If you if 170 00:10:39.840 --> 00:10:44.480 you want to challenge, I think you'd be making a mistake, 171 00:10:45.440 --> 00:10:47.759 but feel free to at least try to phrase it 172 00:10:47.799 --> 00:10:50.879 in the context of a question. And we may spend 173 00:10:50.919 --> 00:10:54.399 the eleven o'clock hour, uh, just on your reactions. But 174 00:10:54.840 --> 00:10:58.240 but I want to get this clarified so people understand 175 00:10:58.639 --> 00:11:01.639 how this is possibly going to play out, either for 176 00:11:01.759 --> 00:11:04.480 good or for bad. And that's why we're talking with 177 00:11:04.559 --> 00:11:08.679 Professor Greg Staller. Spent a guest in this program dozens 178 00:11:08.679 --> 00:11:11.519 of times in the last decade and delighted to have 179 00:11:11.639 --> 00:11:15.600 him tonight back on Nightside. More conversation and your questions 180 00:11:15.679 --> 00:11:19.399 right after this. If you're on night Side with Dan Ray, 181 00:11:19.799 --> 00:11:26.120 I'm w Boston's News Radio with us is Greg Staller, 182 00:11:26.159 --> 00:11:30.440 Professor Greg Staller, he teaches at the Questrum School of 183 00:11:30.480 --> 00:11:33.320 Business at Boston University. What I'd like to do in 184 00:11:33.360 --> 00:11:37.840 this segment is explain the concept of tariffs so people 185 00:11:37.879 --> 00:11:39.840 can understand exactly what it is. 186 00:11:39.919 --> 00:11:41.879 So let me begin the process. 187 00:11:41.960 --> 00:11:45.639 Let's assume Vovo or any car dealer is going to 188 00:11:45.759 --> 00:11:48.960 now import cars that will be the subject of a tariff, 189 00:11:49.759 --> 00:11:54.759 so that tariff, depending upon what country it comes in from, 190 00:11:55.120 --> 00:11:57.480 could be as high as a twenty five percent tariff. 191 00:11:57.559 --> 00:11:58.519 Am I corrected in. 192 00:11:58.559 --> 00:12:03.399 That absolutely correct. There's a ten percent universal tariff that's 193 00:12:03.440 --> 00:12:06.320 going to effect two days from now, on April fifth. 194 00:12:06.759 --> 00:12:09.759 But all of these tariffs that are created equally. The 195 00:12:09.759 --> 00:12:13.639 EU is getting hit with twenty percent, Mexico and Canada 196 00:12:14.559 --> 00:12:19.320 escaped the whirlwinds yesterday but are still going to be 197 00:12:19.440 --> 00:12:22.919 subject to twenty five percent, and China please, you know, 198 00:12:23.000 --> 00:12:25.919 strap yourself in for this number over fifty percent. 199 00:12:26.159 --> 00:12:28.480 Okay, So let's keep it simple for a second. So 200 00:12:28.559 --> 00:12:33.720 Let's assume that there is a car that comes in 201 00:12:33.840 --> 00:12:37.399 from a country, a foreign country, and the tariff is 202 00:12:37.440 --> 00:12:37.720 on it. 203 00:12:38.159 --> 00:12:40.960 So who pays the tariff? 204 00:12:41.039 --> 00:12:47.480 The tariff, I assume is paid by the US company 205 00:12:47.279 --> 00:12:49.559 that imports the vehicle. 206 00:12:50.679 --> 00:12:54.080 Correct, So again, a tariff is a tax. Yes, So 207 00:12:54.799 --> 00:13:00.279 ostensibly President Trump's objective is to generate more tasks revenue 208 00:13:00.320 --> 00:13:02.879 for the United States and to ship away at the 209 00:13:02.919 --> 00:13:05.200 trade deficit. But you hit the nail on the head, 210 00:13:05.279 --> 00:13:09.480 jan right. No car that's made right now is from 211 00:13:09.519 --> 00:13:12.759 one specific country. And if you think about something like 212 00:13:12.879 --> 00:13:16.279 Toyota Motor Corporation, right, they have a very large plant 213 00:13:16.279 --> 00:13:19.879 in Lexington, Kentucky. How do you think through something like that. 214 00:13:20.000 --> 00:13:23.919 You know that they are finishing the car in Lexington, Kentucky, 215 00:13:24.360 --> 00:13:26.519 but a lot of the parts are originally going to 216 00:13:26.559 --> 00:13:31.240 come from Japan because Toyota is a Japanese manufacturing organization. 217 00:13:31.399 --> 00:13:33.799 So how do you mitigate that. That's what makes this 218 00:13:34.159 --> 00:13:38.320 self complicated. It's not just a widget. It is considered 219 00:13:38.360 --> 00:13:41.159 to be forty or fifty widgets, and some of those 220 00:13:41.200 --> 00:13:44.120 widgets are manufactured of the United States. Others of those 221 00:13:44.120 --> 00:13:46.799 widgets are manufactured well outside of the United States. 222 00:13:47.000 --> 00:13:51.360 Okay, so it's going to be the money that gets 223 00:13:51.559 --> 00:13:55.960 gets handed over. The tariff is paid by the importer, 224 00:13:57.120 --> 00:13:59.600 correct in this case, in most cases going to be 225 00:13:59.639 --> 00:14:04.000 a US company. Right, So they they bring the vehicles 226 00:14:04.039 --> 00:14:07.120 in and they pay that they pay the tariff that's 227 00:14:07.200 --> 00:14:10.080 going to increase the cost of the car when it 228 00:14:10.159 --> 00:14:15.360 hits the showroom, bingo, And that increase of cost in 229 00:14:15.440 --> 00:14:19.360 the car will be made up by the company that 230 00:14:19.519 --> 00:14:22.559 imports the car or the company that pays the tariff. 231 00:14:22.679 --> 00:14:26.039 It'll be passed on to the consumer, which therefore is 232 00:14:26.120 --> 00:14:28.320 pretty clear attacks right. 233 00:14:28.360 --> 00:14:32.639 But the idea is that if that's the case, and 234 00:14:32.919 --> 00:14:37.480 a non American widget is now costing thirty percent more 235 00:14:37.519 --> 00:14:40.440 than it would have a week ago, it is going 236 00:14:40.480 --> 00:14:44.679 to incentivize people to buy American products because those American 237 00:14:44.720 --> 00:14:46.840 products are obviously not subject to tariffs. 238 00:14:46.879 --> 00:14:47.960 I got it, I got it. 239 00:14:48.000 --> 00:14:53.879 But so so so whatever the money that eventually will 240 00:14:53.919 --> 00:14:57.200 be is in effect paid. 241 00:14:57.559 --> 00:14:58.840 It may be paid. 242 00:14:58.600 --> 00:15:03.440 By the importer, but the importer recoups the money from 243 00:15:03.559 --> 00:15:07.480 the consumer. So in effect, that is how we look 244 00:15:07.519 --> 00:15:11.799 we characterize it as a tax on consumers. That money, 245 00:15:12.159 --> 00:15:17.039 which in effect goes to the US Treasury, is used 246 00:15:17.200 --> 00:15:22.399 to reduce the federal debt, but it's it's being paid 247 00:15:22.399 --> 00:15:26.440 in effect by US citizens. 248 00:15:26.399 --> 00:15:29.519 Oh one hundred percent. The way I look at it 249 00:15:29.559 --> 00:15:33.240 is it's like gambling in a casino. Right when you lose, 250 00:15:33.480 --> 00:15:36.039 obviously one hundred percent of your lost money goes to 251 00:15:36.120 --> 00:15:39.720 the casino. But casinos never pay true odds, right. You know, 252 00:15:39.960 --> 00:15:42.039 on a roulette wheel there might be I don't know, 253 00:15:42.159 --> 00:15:45.360 thirty eight slots. Even if you bet the right number 254 00:15:45.399 --> 00:15:47.440 on the Roulett wheel, most casinos are going to pay 255 00:15:47.480 --> 00:15:50.200 thirty two or thirty three to one. So even when 256 00:15:50.200 --> 00:15:52.960 you win, you're paying a subsidy to the house. That's 257 00:15:53.080 --> 00:15:56.639 exactly what is concerning me about this is that, yes, 258 00:15:57.000 --> 00:15:59.519 prices are going to go up, and you might generate 259 00:15:59.559 --> 00:16:02.759 more money for the treasury, but the average consumer is 260 00:16:02.799 --> 00:16:06.399 going to get caught in the crossfire. Not to mention, 261 00:16:06.559 --> 00:16:10.039 by the way downstream, what it could potentially do about inflation. 262 00:16:10.679 --> 00:16:13.720 And I think that's what concerns me is that, you know, 263 00:16:13.799 --> 00:16:16.399 President Biden, President Trump again, I'm trying to look at 264 00:16:16.399 --> 00:16:19.919 this from a non partisan perspective, have really tried hard 265 00:16:20.039 --> 00:16:24.320 to camp down inflation and cause us to not go 266 00:16:24.360 --> 00:16:27.440 into a recession and keep things steady as she goes. 267 00:16:27.480 --> 00:16:29.799 And you know, up until a couple of weeks ago, 268 00:16:29.879 --> 00:16:32.559 the doll was doing pretty well. I mean, granted, you know, 269 00:16:32.559 --> 00:16:35.120 in the first quarter was the lowest since twenty twenty two, 270 00:16:35.519 --> 00:16:40.080 but you know there were pockets of good, good numbers 271 00:16:40.120 --> 00:16:44.200 here or there. This is potentially going to eviscerate all 272 00:16:44.240 --> 00:16:45.000 of those games. 273 00:16:45.080 --> 00:16:48.600 So then my final question for this segment is once 274 00:16:48.759 --> 00:16:52.879 people start to see that the terroriffs, they associate the 275 00:16:52.919 --> 00:16:57.679 tariffs which increase prices, that is going to have to erode. 276 00:16:58.360 --> 00:17:01.799 I don't think that's going to help the president's popularity. 277 00:17:02.080 --> 00:17:05.880 That is going to erode his popularity, not only across 278 00:17:05.920 --> 00:17:09.799 the board, but even within his own party. At what 279 00:17:10.039 --> 00:17:14.680 point does that loss of popularity force him to change 280 00:17:14.720 --> 00:17:17.759 directions or is he so deep in at this point 281 00:17:18.240 --> 00:17:19.640 he can't change directions. 282 00:17:19.720 --> 00:17:20.920 And if it's I'm going. 283 00:17:20.920 --> 00:17:22.799 To push back, I'm going to push back for a second. 284 00:17:22.880 --> 00:17:27.160 Dan Again, I'm trying to look at this from objective perspective. 285 00:17:27.279 --> 00:17:31.160 Right if you are a union worker and if you 286 00:17:31.359 --> 00:17:34.559 are in a Republican state, you're a huge fan of 287 00:17:34.599 --> 00:17:38.279 Donald Trump right now, sure, because he is hoping that 288 00:17:38.519 --> 00:17:41.319 there are enough Republican states out there, they're going to 289 00:17:41.400 --> 00:17:44.599 cause people to buy American products. And let's stick with 290 00:17:44.680 --> 00:17:49.119 the auto industry example. And if people buy Americans, then 291 00:17:49.160 --> 00:17:51.640 guess what, there are not going to be any layoffs 292 00:17:51.799 --> 00:17:54.960 or any worker shortages that are going to be needed 293 00:17:55.000 --> 00:17:58.880 at car manufacturing companies because they're going to be, in theory, 294 00:17:59.240 --> 00:18:02.759 fully employed because people can't afford foreign imports. 295 00:18:02.880 --> 00:18:05.400 Okay, so okay, that's fair. That's fair. 296 00:18:05.440 --> 00:18:09.880 So if that if the cookie breaks that way, then 297 00:18:09.960 --> 00:18:11.440 it helps him. 298 00:18:11.799 --> 00:18:14.319 If it doesn't break that way, exactly to your point 299 00:18:14.319 --> 00:18:17.319 a few seconds ago, he is in deep you know what, 300 00:18:17.759 --> 00:18:19.960 because now people are going to say, what did we 301 00:18:20.079 --> 00:18:23.640 vote for? Why did we how did this happen? And 302 00:18:23.720 --> 00:18:25.440 all of a sudden people are going to say, I 303 00:18:25.480 --> 00:18:28.599 don't want to spend fifteen percent more for what I 304 00:18:28.640 --> 00:18:31.799 want to buy. And again, one could argue that cars 305 00:18:31.799 --> 00:18:36.880 are not you know, weekly purchases, right, but think about cannabis, 306 00:18:36.920 --> 00:18:40.240 think about running shoes, think about iPhones. I mean, all 307 00:18:40.279 --> 00:18:42.440 of this stuff is going to go up in price. 308 00:18:42.599 --> 00:18:45.119 And that's to your point, that is going to be 309 00:18:45.200 --> 00:18:48.960 the fly in a very very complicated political ointment. 310 00:18:49.200 --> 00:18:53.039 The other issue, and again, I'll just take this very 311 00:18:53.079 --> 00:18:59.880 quickly there was a time thirty years ago when the 312 00:19:00.079 --> 00:19:04.319 American and again, automobiles are the biggest private ticket anyone's 313 00:19:04.359 --> 00:19:07.640 going to buy, right, And so there was a time 314 00:19:08.119 --> 00:19:12.799 twenty thirty years ago where foreign made cars were considered 315 00:19:12.839 --> 00:19:16.000 to be much better than American made cars, and that 316 00:19:16.279 --> 00:19:18.720 devastated the US auto industry. 317 00:19:19.279 --> 00:19:21.920 Correct And by the way, I would add to that 318 00:19:22.119 --> 00:19:25.640 analysis that if you think about the cost of the 319 00:19:25.720 --> 00:19:28.839 tension plans that a lot of these US companies have 320 00:19:28.960 --> 00:19:33.480 to bear in compliance with ARISSA, that is also arbitrarily 321 00:19:33.799 --> 00:19:37.559 or not arbitrarily, artificially inflating the cost of a US 322 00:19:37.599 --> 00:19:41.039 made car, which is further eroding our advantage compared with 323 00:19:41.079 --> 00:19:43.319 foreign imports. So you're absolutely right, right. 324 00:19:43.400 --> 00:19:50.640 So the question is can American cars very quickly resuscitate 325 00:19:51.839 --> 00:19:56.559 their reputation and prove to the American consumer that the 326 00:19:56.599 --> 00:20:00.480 American car now is not only going to be less 327 00:20:00.519 --> 00:20:03.880 expensive than many of the foreign brands, but the American 328 00:20:03.920 --> 00:20:07.519 car is as good or better than the foreign cars. 329 00:20:08.200 --> 00:20:11.640 And if you're going to take President Trump's perspective on this, 330 00:20:12.240 --> 00:20:16.160 that was the platform that he campaigned on, and that 331 00:20:16.480 --> 00:20:19.519 was what he promised the voters he would do. He 332 00:20:19.599 --> 00:20:22.279 promised that if you voted him in for a second term, 333 00:20:22.599 --> 00:20:25.880 that people are going to be better off financially, and 334 00:20:25.920 --> 00:20:29.960 if you work for those companies and if you purchase 335 00:20:30.000 --> 00:20:33.240 American products, then in theory, you're not going to see 336 00:20:33.240 --> 00:20:36.160 any price increase and you're going to be happier. But 337 00:20:36.279 --> 00:20:39.240 to your point now, for the third time, that's a 338 00:20:39.319 --> 00:20:41.400 really big risk that he's running. 339 00:20:41.920 --> 00:20:47.119 My guest is Professor Gregg Staller. Professor Staller teaches at 340 00:20:47.160 --> 00:20:51.160 the Questrum School of Business at Boston University. He's very 341 00:20:51.240 --> 00:20:56.119 much involved in international law, very much involved in taking students, 342 00:20:56.160 --> 00:21:01.480 specifically to places like China and Vietnam with exchange programs. 343 00:21:01.960 --> 00:21:04.559 I'm going to open up phone calls, uh and Professor 344 00:21:04.599 --> 00:21:08.000 Staller will stay with us until eleven. But after that, 345 00:21:08.119 --> 00:21:12.680 if you want to talk to a business school professor, 346 00:21:13.519 --> 00:21:15.960 you got one right here. And he explains it to 347 00:21:16.039 --> 00:21:19.319 me so clearly. Six one, seven, two, five, four ten 348 00:21:19.400 --> 00:21:21.880 thirty six one seven, nine, three, one ten thirty. Coming 349 00:21:22.039 --> 00:21:25.400 right back on night side, we're talking about tariffs and we're 350 00:21:25.400 --> 00:21:29.000 trying to break it down so everybody understands how this 351 00:21:29.119 --> 00:21:33.440 game is going to play out. Whichever group you're rooting for, 352 00:21:33.519 --> 00:21:35.839 If you're on the Trump team, or if you're on 353 00:21:35.880 --> 00:21:39.359 the team that hopes that perhaps this has been a 354 00:21:39.400 --> 00:21:45.039 mistake that the president has launched whatever, you got to 355 00:21:45.160 --> 00:21:48.079 understand how it works, and that's what Professor Staller is 356 00:21:48.119 --> 00:21:48.400 here for. 357 00:21:48.799 --> 00:21:49.880 Phone lines are lighting up. 358 00:21:49.920 --> 00:21:52.759 The only line open right now is six one, seven, nine, three, one, 359 00:21:52.839 --> 00:21:54.839 ten thirty back on night Side. 360 00:21:57.160 --> 00:22:01.839 It's Night Side with Boston's news radio. 361 00:22:02.640 --> 00:22:05.240 Well, Professor Staller, we have full lines. We're going to 362 00:22:05.279 --> 00:22:08.920 get to Folk grows my guess. Professor Greg Staller, he 363 00:22:09.039 --> 00:22:12.359 teaches in the Question School of Business at Boston University, 364 00:22:13.119 --> 00:22:15.599 and we'll get to as many callers as we can 365 00:22:15.680 --> 00:22:20.119 and look more for questions. Let's understand it. That's that's 366 00:22:20.119 --> 00:22:21.759 what I would prefer. Let's see how we do his 367 00:22:22.000 --> 00:22:26.799 Alan Saugus Al you were first this hour, Professor Stalin Hi, so. 368 00:22:27.519 --> 00:22:30.160 In my mind you are thirty five trillion reasons why 369 00:22:30.279 --> 00:22:32.440 Trump is doing this. But I want to ask the professor, 370 00:22:32.480 --> 00:22:34.720 could we have kept on, kept an on or was 371 00:22:34.759 --> 00:22:36.440 there a dead end or a light at the end 372 00:22:36.440 --> 00:22:38.279 of the tunnel, a train going to run us over? 373 00:22:38.559 --> 00:22:42.119 Could this have kept going on? This deficit and debt? 374 00:22:43.359 --> 00:22:46.920 So, if you're a supporter of Trump you have. By 375 00:22:46.960 --> 00:22:48.720 the way, thanks for calling you. Al, If you're a 376 00:22:48.720 --> 00:22:51.680 supporter of Trump, you are sick and tired of the 377 00:22:51.680 --> 00:22:54.519 status quo. And you're saying, there's been a logjam in 378 00:22:54.680 --> 00:22:58.640 Washington for years, and everyone says they're going to do 379 00:22:58.720 --> 00:23:01.240 something once they get into the old office, and nobody 380 00:23:01.279 --> 00:23:04.599 actually takes any action. So he's trying to keep his 381 00:23:04.680 --> 00:23:11.279 electorate happy and try and really a lot move the 382 00:23:11.359 --> 00:23:16.839 needle a great deal. Once again, to your point, Al, 383 00:23:17.119 --> 00:23:21.839 if we did nothing, we know survived in this situation 384 00:23:22.079 --> 00:23:25.079 for years. And by the way, the trade deficit came 385 00:23:25.119 --> 00:23:29.039 down from January February anyway, even before tariff, So you're 386 00:23:29.079 --> 00:23:29.920 absolutely right. 387 00:23:32.279 --> 00:23:36.119 Why why the non level playing field with tariff's nation worldwide? 388 00:23:36.400 --> 00:23:38.839 People try to push one world government this in world 389 00:23:38.920 --> 00:23:43.359 economic formula. Why is there the disparity in teriffs? Why 390 00:23:43.480 --> 00:23:45.319 why don't we have a level playing field? 391 00:23:45.960 --> 00:23:48.839 So he is saying that the US dollar is too 392 00:23:48.880 --> 00:23:52.240 strong and as a result, it's not benefiting the US economy. 393 00:23:52.480 --> 00:23:56.640 But to your point, not all countries are created equally 394 00:23:56.680 --> 00:23:59.680 from an economic perspective. So if you look at and 395 00:23:59.880 --> 00:24:02.119 I mentioned this a few moments ago, if you just 396 00:24:02.200 --> 00:24:05.440 look at the top five GDPs in the world. Right, 397 00:24:05.799 --> 00:24:08.559 India's coming in at five to three point six trillion. 398 00:24:08.720 --> 00:24:12.079 The United States it's twenty eight trillion dollars. You can't 399 00:24:12.119 --> 00:24:15.279 say that the that the Indian economy is on par 400 00:24:15.680 --> 00:24:18.640 with the US economy. So that's why the tariffs are 401 00:24:18.680 --> 00:24:20.319