WEBVTT 1 00:00:00.600 --> 00:00:02.919 This is Gary and Shannon and you're listening to KFI 2 00:00:03.080 --> 00:00:05.839 AM six forty, the Gary and Shannon Show on demand 3 00:00:05.919 --> 00:00:12.080 on the iHeartRadio app. Well breaking news today to tell 4 00:00:12.119 --> 00:00:14.519 you about. We've had our eye on the stock market 5 00:00:14.960 --> 00:00:18.359 ever since a Liberation Day of last week and today 6 00:00:18.920 --> 00:00:22.280 a massive spike on Wall Street just in the past 7 00:00:22.320 --> 00:00:26.160 half hour or so because President Trump announced a ninety 8 00:00:26.239 --> 00:00:32.399 day pause on some tariffs. This is all about obstensively China. 9 00:00:32.920 --> 00:00:35.159 In a post on truth Social he said he will 10 00:00:35.200 --> 00:00:39.880 also lower reciprocal tariffs during this period. He said the 11 00:00:39.920 --> 00:00:44.759 pause is effective immediately, and the tariff against China, however, 12 00:00:44.799 --> 00:00:47.119 has gone up to one hundred and twenty five percent 13 00:00:47.679 --> 00:00:52.200 because they hit back overnight with reciprocal tariffs. This is 14 00:00:52.240 --> 00:00:55.719 all to punish China and to corral the rest of 15 00:00:55.759 --> 00:01:00.000 the world using their words to be with the United State, 16 00:01:00.399 --> 00:01:03.000 to say, okay, we're now no longer at tariff war 17 00:01:03.079 --> 00:01:05.879 with everybody else, because people are picking up the phone 18 00:01:05.920 --> 00:01:08.879 and they're calling us and they're ready to renegotiate. So now, 19 00:01:08.920 --> 00:01:12.680 since China's been so defiant and has doubled down, we're 20 00:01:12.719 --> 00:01:14.120 gonna go ahead and bring. 21 00:01:13.879 --> 00:01:15.040 In the rest of the world. 22 00:01:15.120 --> 00:01:18.000 To our side, and we're going to negotiate with them, 23 00:01:18.159 --> 00:01:20.120 and we're gonna go harder against China. 24 00:01:20.879 --> 00:01:24.120 So the tweet that came sorry the truth social posts 25 00:01:24.159 --> 00:01:29.040 that came out just a short time ago. Scott Bessett 26 00:01:29.040 --> 00:01:32.280 apparently was in the room along with Howard Luttney, the 27 00:01:32.319 --> 00:01:36.519 Commerce Secretary, while Donald Trump was writing this thing out, 28 00:01:36.599 --> 00:01:42.760 And Howard Lutnick just wrote on Twitter, Scott Bessett and 29 00:01:42.760 --> 00:01:44.719 I sat with the President while he wrote one of 30 00:01:44.719 --> 00:01:48.239 the most extraordinary truth posts of his presidency. The world 31 00:01:48.280 --> 00:01:50.480 is ready to work with Trump to fix global trade, 32 00:01:50.519 --> 00:01:53.920 and China has chosen the opposite direction. So that's what 33 00:01:53.959 --> 00:01:56.359 Howard Lutnik, again, the Commerce Secretary wrote. 34 00:01:56.439 --> 00:01:57.799 But this is what Trump wrote. 35 00:01:57.799 --> 00:02:00.959 This is the full truth social posts that came out 36 00:02:01.040 --> 00:02:03.920 just before ten to thirty hour time. 37 00:02:04.840 --> 00:02:05.200 Quote. 38 00:02:05.280 --> 00:02:07.519 Based on the lack of respect that China has shown 39 00:02:07.560 --> 00:02:10.159 to the world's markets, I am hereby raising the tariff 40 00:02:10.280 --> 00:02:13.080 charged to China by the United States of America to 41 00:02:13.120 --> 00:02:17.120 one hundred and twenty five percent effective immediately. At some point, 42 00:02:17.199 --> 00:02:19.919 hopefully in the near future, China will realize that the 43 00:02:20.000 --> 00:02:22.800 days of ripping off the USA and other countries is 44 00:02:22.840 --> 00:02:27.159 no longer sustainable or acceptable. Conversely, and based on the 45 00:02:27.199 --> 00:02:30.240 fact that more than seventy five countries have called representatives 46 00:02:30.280 --> 00:02:34.719 of the United States, including the Departments of Commerce, Treasured Treasury, 47 00:02:34.759 --> 00:02:39.400 and the USTR, to negotiate a solution to the subjects 48 00:02:39.400 --> 00:02:43.680 being discussed relative to trade, trade barriers, tariffs, currency manipulation, 49 00:02:43.840 --> 00:02:48.039 and non monetary tariffs, that these countries have not, at 50 00:02:48.080 --> 00:02:52.039 my strong suggestion, retaliated in any way, shape or form 51 00:02:52.080 --> 00:02:55.360 against the United States. I have authorized a ninety day 52 00:02:55.479 --> 00:03:00.000 pause and a substantially lowered reciprocal tariff during this period 53 00:03:00.120 --> 00:03:04.159 of ten percent, also effective immediately. I would have preferred 54 00:03:04.199 --> 00:03:07.080 a few more punctuation marks in there. Thank you for 55 00:03:07.159 --> 00:03:11.319 your attention to this matter, it says. I think that's 56 00:03:11.360 --> 00:03:14.560 a very funny salutation, But thank you for the attention 57 00:03:14.719 --> 00:03:19.319 to this matter. So again, a ninety day pause on 58 00:03:19.360 --> 00:03:23.400 the reciprocal tariffs except for China, and it does keep 59 00:03:23.439 --> 00:03:27.039 a ten percent baseline tariff in place, if nothing else, 60 00:03:27.439 --> 00:03:31.000 just to make it uncomfortable enough to continue to spur 61 00:03:31.360 --> 00:03:34.960 those other countries to coming to the table to figure 62 00:03:34.960 --> 00:03:37.240 out what we're going to do in terms of individual 63 00:03:37.280 --> 00:03:40.680 trade agreements with each of those Each of those countries. 64 00:03:41.120 --> 00:03:48.479 It's interesting that he said that what was the be cool. 65 00:03:48.319 --> 00:03:51.479 Social media post that was this morning, right as the 66 00:03:51.520 --> 00:03:55.319 market's opened, and it was be cool basically like, this 67 00:03:55.479 --> 00:03:59.039 is a time to get into the market because the 68 00:03:59.080 --> 00:04:01.800 prices are going to be low. Right, everything is going 69 00:04:01.840 --> 00:04:04.080 to work out well, he wrote, the USA will be 70 00:04:04.120 --> 00:04:07.479 bigger and better than ever before. This is a great 71 00:04:07.560 --> 00:04:09.960 time to buy all caps, is what he wrote. 72 00:04:10.039 --> 00:04:13.680 Well this morning was yeah, and the right. 73 00:04:13.719 --> 00:04:15.919 I mean, listen, the doubts back up over forty five. 74 00:04:16.000 --> 00:04:18.839 That's a delicate dance, isn't it when you're getting on 75 00:04:18.879 --> 00:04:21.759 social media and saying this is a great time to buy, 76 00:04:21.959 --> 00:04:25.600 knowing that you could be the person that changes the 77 00:04:25.639 --> 00:04:27.920 fate of the stock market by the end of the day. 78 00:04:28.120 --> 00:04:31.079 Well, that is an important thing to remember, and you 79 00:04:31.160 --> 00:04:33.360 mentioned it right before we would but before we went 80 00:04:33.399 --> 00:04:36.639 to news. Is the timing of comments like this or 81 00:04:36.720 --> 00:04:41.120 in this case a social media post is very very important. 82 00:04:41.360 --> 00:04:42.439 And he knows. 83 00:04:42.240 --> 00:04:43.920 That market manipulation. 84 00:04:44.680 --> 00:04:46.920 Well, he had the ability. 85 00:04:48.720 --> 00:04:50.560 I don't know if he saw the headlines that we 86 00:04:50.600 --> 00:04:57.160 saw yesterday, which were talking about how no other presidency 87 00:04:57.279 --> 00:05:00.519 at the beginning of a term has I seen a 88 00:05:00.639 --> 00:05:06.519 market turned so South so quick, and he did not 89 00:05:06.639 --> 00:05:10.439 want to live with that record because he has touted 90 00:05:10.879 --> 00:05:14.720 how great the economy would be as soon as they were, 91 00:05:15.759 --> 00:05:17.920 as soon as we threw off the shackles of a 92 00:05:17.959 --> 00:05:19.199 Biden administration. 93 00:05:19.879 --> 00:05:27.839 I wonder, just because this is somebody who likes to 94 00:05:27.879 --> 00:05:31.920 play with money, likes to roll the dice his whole life. 95 00:05:31.959 --> 00:05:33.800 He's a businessman. This is what he does. 96 00:05:36.480 --> 00:05:39.319 You know, I was telling you about advice from money 97 00:05:39.319 --> 00:05:42.480 people that said, if you have anything extra, now's the 98 00:05:42.519 --> 00:05:43.439 time to invest. 99 00:05:44.079 --> 00:05:46.839 I mean, you just wonder who who did that? 100 00:05:47.600 --> 00:05:50.839 Who took advantage knowing that he was going to pull 101 00:05:50.839 --> 00:05:54.439 the plug on this thing when he pulled the plug 102 00:05:54.439 --> 00:05:54.959 on this thing. 103 00:05:55.120 --> 00:05:56.040 Who's making money? 104 00:05:56.079 --> 00:05:58.120 Who made money and how much? 105 00:05:59.000 --> 00:06:00.399 I'm sure there's plenty of people. 106 00:06:01.079 --> 00:06:04.279 And I mean, you don't have to be an insider 107 00:06:04.920 --> 00:06:07.240 to act on something like this as you see it 108 00:06:07.279 --> 00:06:09.920 play out. You don't have to be an insider to 109 00:06:10.639 --> 00:06:13.279 know Trump's personality. And he was not going to let 110 00:06:13.279 --> 00:06:16.360 this continue. He was not going to let this slide 111 00:06:16.399 --> 00:06:20.040 on Wall Street go on for weeks. He just that's 112 00:06:20.079 --> 00:06:22.319 just not his personality. Time I could have told you that. 113 00:06:23.319 --> 00:06:25.120 So it's not like you need to be an insider 114 00:06:25.160 --> 00:06:27.120 to have that kind of information that he was only 115 00:06:27.120 --> 00:06:28.639 going to let this go for so long. 116 00:06:31.319 --> 00:06:32.639 Well, yeah, but you just. 117 00:06:32.639 --> 00:06:35.879 Wonder, if you know, I think his beef with China 118 00:06:36.079 --> 00:06:38.680 is the driving factor here. I think that he has 119 00:06:39.079 --> 00:06:41.040 has had it in his craw for a long time 120 00:06:41.160 --> 00:06:43.079 what China has been doing with tariffs, what they've been 121 00:06:43.120 --> 00:06:43.759 able to do. 122 00:06:43.920 --> 00:06:46.480 Scott Besson mentioned that when he's standing outside the White House, 123 00:06:46.639 --> 00:06:50.759 the President's talked about Chinese trade imbalances for years, right, 124 00:06:51.000 --> 00:06:53.040 And this is not a new thing. It's not just 125 00:06:53.120 --> 00:06:55.959 a campaign issue. It was a first term issue. Uh, 126 00:06:56.240 --> 00:06:57.759 And he's talked about it long before that. 127 00:06:58.040 --> 00:07:02.160 So he said in than nineteen eighties, I believe very 128 00:07:02.199 --> 00:07:05.399 strongly in tariffs. All of the many nations that abuse 129 00:07:05.439 --> 00:07:08.079 the United States should pay a major tax, he said, 130 00:07:08.480 --> 00:07:11.160 like a fifteen or twenty percent tax on any product 131 00:07:11.240 --> 00:07:13.199 they sell in the United States. Again, that was the 132 00:07:13.319 --> 00:07:17.000 late eighties, not this week. This is something he's been 133 00:07:17.000 --> 00:07:18.720 thinking about for a long time. 134 00:07:19.560 --> 00:07:22.360 The one thing that's still on the on the chopping 135 00:07:22.399 --> 00:07:26.519 block here potentially is the pharmaceutical terraffs, because he had 136 00:07:26.600 --> 00:07:29.160 threatened this morning that pharmaceutical terrafs were going to be 137 00:07:29.199 --> 00:07:30.920 going up soon. We'll talk more about this. 138 00:07:31.120 --> 00:07:34.600 Yeah, let's do that, because China makes a lot of 139 00:07:34.680 --> 00:07:36.759 the things that go into our favorite drugs. 140 00:07:37.560 --> 00:07:39.600 Gary and Channon will continue. 141 00:07:40.680 --> 00:07:44.160 You're listening to Gary and Shannon on demand from KFI 142 00:07:44.360 --> 00:07:45.279 AM six forty. 143 00:07:47.120 --> 00:07:50.519 Well Wall Street loves this breaking news, to the tune 144 00:07:50.560 --> 00:07:54.879 of oh, I don't know. The Dow up twenty six hundred. 145 00:07:55.639 --> 00:07:58.560 Dal's of seven percent, S and P five hundred is 146 00:07:58.639 --> 00:08:02.160 up eight percent, DAC is up ten percent, and that's 147 00:08:02.399 --> 00:08:06.839 just within the last hour. Again, the announcement that there 148 00:08:06.839 --> 00:08:08.839 will be a ninety day pause on almost all of 149 00:08:08.920 --> 00:08:14.040 the reciprocal tariffs except for China. We mentioned that Scott Passent, 150 00:08:14.120 --> 00:08:17.040 the Treasury Secretary, was answering questions outside the White House 151 00:08:17.079 --> 00:08:19.519 after this decision was made and after it was posted 152 00:08:19.560 --> 00:08:22.959 onto truth Social. One of the reporters asked the Treasury 153 00:08:23.079 --> 00:08:26.519 Secretary if this was since China's the one that's going 154 00:08:26.600 --> 00:08:29.399 to have these one hundred and twenty five percent tariffs remain, 155 00:08:30.360 --> 00:08:33.679 is this all about isolating China and turning them into 156 00:08:33.720 --> 00:08:34.480 the bad guy. 157 00:08:34.320 --> 00:08:38.159 For all of this, Well, it's about bad actors. And 158 00:08:38.600 --> 00:08:41.559 what we will see is some of the very early 159 00:08:41.639 --> 00:08:45.879 countries are China's neighbors that we're going to see. I'm 160 00:08:45.919 --> 00:08:48.559 seeing Vietnam today, Japan's at the front of the queue, 161 00:08:48.639 --> 00:08:52.720 South Korea, India, so you know, we will see. And 162 00:08:53.039 --> 00:08:56.600 as I've repeatedly said, and President Trump has been saying 163 00:08:56.600 --> 00:09:00.559 it four years, China is the most imbalanced economy the 164 00:09:00.720 --> 00:09:03.879 history of the modern world. And they are the biggest 165 00:09:03.919 --> 00:09:07.519 source of the US trade problems, and indeed they are 166 00:09:07.559 --> 00:09:10.759 problems for the rest of the world because what we've 167 00:09:10.799 --> 00:09:14.600 seen is that as a US announced the tariff wall 168 00:09:14.919 --> 00:09:18.200 last week, many of those goods have already started letting 169 00:09:18.360 --> 00:09:21.399 into Europe. 170 00:09:22.399 --> 00:09:25.879 When China came out with the reciprocal tariffs, that's when 171 00:09:25.919 --> 00:09:30.080 you really saw hedge funds and other investors big money 172 00:09:30.120 --> 00:09:32.840 situations having to sell their bonds to raise cash to 173 00:09:32.879 --> 00:09:35.120 make up for losses in the stock market. That's not 174 00:09:35.159 --> 00:09:38.840 a tenable situation. So that is could be one of 175 00:09:38.840 --> 00:09:41.919 the reasons why you saw this happen when it did, 176 00:09:42.039 --> 00:09:46.480 because that happened pretty much overnight. Now, of course we're 177 00:09:46.519 --> 00:09:50.240 trying to isolate China, of course, that's what's going on here. 178 00:09:50.519 --> 00:09:54.919 The thing about China is they're fine with that. And 179 00:09:55.279 --> 00:09:58.200 if you want to talk about pharmaceuticals, which we should 180 00:09:58.240 --> 00:10:02.159 talk about. When the President comes out and says we're 181 00:10:02.159 --> 00:10:04.399 going to play with pharmaceuticals, that's going to be one 182 00:10:04.440 --> 00:10:08.159 of the games we're playing here with China. You're picking 183 00:10:08.159 --> 00:10:10.919 a fight with the other big dog in the yard. 184 00:10:11.360 --> 00:10:13.960 I mean, it's a real ding dog. I think when 185 00:10:14.000 --> 00:10:16.200 it comes to the United States in China, in terms 186 00:10:16.200 --> 00:10:24.120 of pharmaceutical manufacturing, I believe that one of let's see here, 187 00:10:24.919 --> 00:10:29.120 China is the world's largest producer of what's called APIs. 188 00:10:30.480 --> 00:10:38.279 APIs are basically the ingredients that give drugs their intended effect. Pharmaceuticals, 189 00:10:38.279 --> 00:10:40.919 like everything else, it's just cheaper to make these things 190 00:10:40.960 --> 00:10:42.919 that active pharmaceutical ingredients. 191 00:10:42.960 --> 00:10:45.000 It's cheaper to make them in China. 192 00:10:45.120 --> 00:10:49.120 There's been a move recently to bring especially after covid or, 193 00:10:49.120 --> 00:10:52.679 you're relying on China for things in the medical industry. 194 00:10:52.879 --> 00:10:54.279 There was a conversation at that. 195 00:10:54.279 --> 00:10:55.759 Time, Hey, we got to move some of this back 196 00:10:55.759 --> 00:10:59.240 to the United States, Like prices be damned, we cannot 197 00:10:59.240 --> 00:11:01.559 rely on China to manufacture our drugs. 198 00:11:01.559 --> 00:11:04.279 That's ridiculous. But do you think about how reliant we are. 199 00:11:04.159 --> 00:11:06.480 And our memories are short and once it's no longer 200 00:11:06.519 --> 00:11:08.919 a big deal, and we're not talking about vaccines being. 201 00:11:08.759 --> 00:11:11.080 Produced in other countries. People forget about it. 202 00:11:11.120 --> 00:11:12.320 There wasn't a lot of pressure. 203 00:11:12.480 --> 00:11:17.480 Yeah, one drug maker in China, wu she Apptech, is 204 00:11:17.639 --> 00:11:20.399 estimated to be involved in producing one fourth of the 205 00:11:20.440 --> 00:11:22.840 medications used in the United States. 206 00:11:23.639 --> 00:11:25.360 China produces more than. 207 00:11:25.279 --> 00:11:29.759 A third of the world's supply of antibiotics as well. 208 00:11:29.840 --> 00:11:33.120 So the President last night was giving a speech to 209 00:11:33.159 --> 00:11:36.320 the National Republican Congressional Committee, and he said, we're going 210 00:11:36.360 --> 00:11:41.919 to announce very shortly a major tariff on all on pharmaceuticals. So, 211 00:11:42.519 --> 00:11:46.320 as you're pointing out, since twenty twenty, since before the pandemic, 212 00:11:46.639 --> 00:11:50.480 US imports of Chinese pharmaceuticals have grown by three hundred 213 00:11:50.600 --> 00:11:55.039 and ninety percent. We're now up over ten billion dollars 214 00:11:55.200 --> 00:11:57.480 when it comes to pharmaceuticals that are coming into the 215 00:11:57.480 --> 00:12:02.519 country from China, and the capital of Beijing is really 216 00:12:02.559 --> 00:12:04.240 where it is all centered. 217 00:12:04.320 --> 00:12:06.120 That of course cuts the cost for production. 218 00:12:06.639 --> 00:12:09.279 They launched a five year plan to increase the development 219 00:12:09.320 --> 00:12:12.519 of consumer drugs, and the whole thing is trying to 220 00:12:12.799 --> 00:12:16.200 crack down, to tighten the screws down on that pharmaceutical 221 00:12:16.240 --> 00:12:20.679 growth by encouraging drug makers, whether they're American drug makers 222 00:12:20.720 --> 00:12:26.360 or international drug makers, to make plants here because of 223 00:12:26.399 --> 00:12:29.399 the onset of these levels levies. Again, that's all part 224 00:12:29.440 --> 00:12:32.080 of what's going on now. I don't know the threat 225 00:12:32.120 --> 00:12:34.720 that he said that they're going to target pharmaceuticals next, 226 00:12:34.759 --> 00:12:35.919 that came last night. 227 00:12:36.399 --> 00:12:37.360 We have no idea. 228 00:12:37.600 --> 00:12:40.200 Scott Bessett, the Treasury Secretary, wasn't able to shed any 229 00:12:40.240 --> 00:12:42.720 light on it when he was talking today. Does this 230 00:12:42.879 --> 00:12:46.080 mean that all of this tariff talk is paused for 231 00:12:46.200 --> 00:12:49.879 ninety days, or does it mean that the President still 232 00:12:49.879 --> 00:12:52.159 has a couple arrows in his quiver and he's going 233 00:12:52.200 --> 00:12:57.279 to start firing off some very targeted, market specific or 234 00:12:57.320 --> 00:13:00.919 industry specific tariffs to these different places. 235 00:13:01.000 --> 00:13:05.799 I want to continue the conversation about prescriptions, because ninety 236 00:13:05.799 --> 00:13:10.159 percent of the prescriptions involved generic medicines in this country. 237 00:13:10.360 --> 00:13:12.000 You know that you're probably all on generics. 238 00:13:13.399 --> 00:13:17.159 All of my things, the myriad drugs I take. 239 00:13:17.200 --> 00:13:18.200 Should we talk about. 240 00:13:18.240 --> 00:13:24.799 Vitamin D and my thyroid and multi vitamin and magnesium thyroid. 241 00:13:25.679 --> 00:13:28.120 The thyroid is actually not generic. 242 00:13:29.200 --> 00:13:33.919 Because the generics vary so much in their dosages and 243 00:13:33.960 --> 00:13:36.080 they play around with it depending on whoever makes it. 244 00:13:36.159 --> 00:13:37.679 I don't mess around with it when it comes to 245 00:13:37.720 --> 00:13:42.799 the thyroid because a mood level or exactly. But anyway, 246 00:13:42.879 --> 00:13:45.879 so ninety percent of our drugs are generics and we 247 00:13:45.919 --> 00:13:50.399 get most of those from China. And the Pills Act 248 00:13:50.559 --> 00:13:54.279 was just reintroduced on Capitol Hill. This was something that 249 00:13:54.320 --> 00:13:59.679 the President campaigned on bringing more critical medicines back to 250 00:13:59.720 --> 00:14:03.519 being in the US, and that was a bill that 251 00:14:03.879 --> 00:14:08.080 was on the table on Capitol Hill last year and 252 00:14:08.120 --> 00:14:11.879 now has been reintroduced. But to your point, the legislation 253 00:14:11.919 --> 00:14:15.679 has not kept up to well. I mean, it provides 254 00:14:15.720 --> 00:14:18.399 a number of incentives for the companies to bring back 255 00:14:18.399 --> 00:14:20.639 production to the United States. 256 00:14:20.519 --> 00:14:22.080 But that has not been done yet. 257 00:14:23.159 --> 00:14:25.840 Like all these all these moved the manufacturing, move production 258 00:14:25.919 --> 00:14:28.600 back to the United States, all excellent ideas. It just 259 00:14:29.279 --> 00:14:32.919 until we get there. We're in limbo and we're reliant 260 00:14:33.000 --> 00:14:33.840 on these other countries. 261 00:14:33.879 --> 00:14:36.720 And nobody wants the gap. Nobody wants to wait through 262 00:14:36.759 --> 00:14:37.120 the gap. 263 00:14:37.240 --> 00:14:42.279 No, you're listening to Gary and Shannon on Demand from 264 00:14:42.360 --> 00:14:45.480 KFI AM six forty. 265 00:14:45.679 --> 00:14:48.720 The biggest story of the day is that Donald Trump 266 00:14:49.360 --> 00:14:55.360 has decided to pause tariffs ninety day pause on reciprocal tariffs. 267 00:14:55.399 --> 00:14:58.600 He will keep in place a ten percent baseline tariff 268 00:14:59.080 --> 00:15:03.799 for into the United States from other countries. And as 269 00:15:03.840 --> 00:15:06.360 of the announcement that he made about an hour ago, 270 00:15:06.759 --> 00:15:10.639 he suggested that in fact, other countries had come to 271 00:15:10.679 --> 00:15:14.000 the table. Seventy five plus other countries had supposedly contacted 272 00:15:14.000 --> 00:15:16.600 the United States in an attempt to start the process 273 00:15:16.639 --> 00:15:20.240 of negotiating new trade deals. Scott Bessett, the Secretary of 274 00:15:20.240 --> 00:15:23.320 the Treasury, was outside the White House and described this 275 00:15:23.639 --> 00:15:26.879 as a pretty brilliant move by the president. 276 00:15:27.240 --> 00:15:28.080 Those were his words. 277 00:15:28.159 --> 00:15:32.919 President Trump created maximum negotiating leverage for himself and which 278 00:15:33.000 --> 00:15:35.840 terrorists went into effect fifteen hours ago. The ones that 279 00:15:35.840 --> 00:15:38.799 we have a lower went into effect a week ago, 280 00:15:39.600 --> 00:15:42.200 or they were announced a week ago. And we have 281 00:15:42.320 --> 00:15:48.000 just been overwhelmed, overwhelmed by the response from mostly our 282 00:15:48.080 --> 00:15:51.279 allies who want to come and negotiate in good faith. 283 00:15:51.639 --> 00:15:54.559 So we are expecting them to come with their best deal, 284 00:15:55.320 --> 00:15:58.440 as I said, or we could go today, don't retaliate. 285 00:15:58.960 --> 00:16:04.559 Older Brown see what happens. And China, they kept escalating 286 00:16:04.600 --> 00:16:07.519 and escalating, and now they have one hundred and twenty 287 00:16:07.519 --> 00:16:11.399 five percent tariffs. So the effective immediately I. 288 00:16:11.399 --> 00:16:17.120 Want to talk about drugs, pharmaceuticals. The President has talked 289 00:16:17.159 --> 00:16:21.519 about moving pharmaceuticals and the manufacturing of them back to 290 00:16:21.559 --> 00:16:23.639 the United States for a long time, the way he's 291 00:16:23.639 --> 00:16:27.919 talked about automotive things in the past. Here's just a 292 00:16:28.080 --> 00:16:31.120 few numbers with you stay with me. Between twenty twenty 293 00:16:31.159 --> 00:16:35.919 and twenty twenty two, US imports of China made pharmaceuticals 294 00:16:36.039 --> 00:16:40.799 grew four hundred and eighty five percent four hundred and 295 00:16:40.919 --> 00:16:45.879 eighty five percent, which is what led to the President 296 00:16:46.039 --> 00:16:49.440 saying early in the campaign. Just two years later in 297 00:16:49.480 --> 00:16:53.639 twenty twenty four, we need more critical medicines made in 298 00:16:53.720 --> 00:16:57.480 the US. Now, there was, as I mentioned, a bill 299 00:16:57.559 --> 00:17:03.879 floating around Capitol Hill called the Pills Act. It was 300 00:17:03.879 --> 00:17:06.920 in the House and it was introduced by a Republican 301 00:17:07.000 --> 00:17:10.240 out of New York. It provides tax incentives to produce 302 00:17:10.279 --> 00:17:15.480 generic drugs in the US. That stalled. It's been reintroduced 303 00:17:15.559 --> 00:17:20.039 just this year. But pharmaceutical companies took note of what 304 00:17:20.079 --> 00:17:23.680 Trump said back in the campaign days and here's his 305 00:17:23.839 --> 00:17:25.039 direct quote. 306 00:17:24.680 --> 00:17:25.559 From the campaign. 307 00:17:26.240 --> 00:17:29.440 As part of my plan to obtain total independence from China, 308 00:17:29.599 --> 00:17:32.960 we will phase in tariffs and import restrictions to bring 309 00:17:33.000 --> 00:17:36.839 back production of all essential medicines to the US where 310 00:17:36.880 --> 00:17:42.480 they belong. Eli Lilly in response, said it would invest 311 00:17:42.599 --> 00:17:47.039 about twenty seven billion dollars in an API facility. As 312 00:17:47.079 --> 00:17:49.960 you heard in the last segment, I believe API that 313 00:17:50.079 --> 00:17:53.680 stands for the active pharmaceutical ingredients, so many of which 314 00:17:53.720 --> 00:17:56.960 we get from China, most of which we get from China. 315 00:17:57.519 --> 00:18:01.359 So Eli Lilly has already moved forward with doing it, 316 00:18:01.839 --> 00:18:04.559 closing the gap. I guess, shall we say, in terms 317 00:18:04.599 --> 00:18:09.440 of definitely already signing the checks to beef up existing 318 00:18:09.559 --> 00:18:13.519 labs in this country, more facilities, more pharmaceuticals made here. 319 00:18:14.960 --> 00:18:18.839 The Manjaro is one of the things that they stepped 320 00:18:18.920 --> 00:18:22.759 up production and the US for as well. So some 321 00:18:22.799 --> 00:18:25.680 people did hear what Trump was saying a year ago 322 00:18:25.920 --> 00:18:28.799 and have kind of moved the ball in this direction 323 00:18:28.839 --> 00:18:29.960 because I saw this coming. 324 00:18:30.880 --> 00:18:34.000 Trump also has criticized pharmaceutical companies here in the United 325 00:18:34.039 --> 00:18:38.519 States for registering their intellectual property in Ireland, one because 326 00:18:38.559 --> 00:18:40.559 of the low corporate tax rate, and that's one of 327 00:18:40.599 --> 00:18:43.079 the things that he has been talking about. He said 328 00:18:43.079 --> 00:18:45.480 that we don't produce enough antibiotics. You had mentioned that 329 00:18:45.559 --> 00:18:48.759 China is one of the major producers of antibiotics along 330 00:18:48.799 --> 00:18:52.559 with India, and that it's unfair that we in the 331 00:18:52.680 --> 00:18:56.359 United States pay the prices that we do for some 332 00:18:56.440 --> 00:19:00.000 of these brand name drugs that in other wealthy countries 333 00:19:00.440 --> 00:19:01.440 they don't pay. 334 00:19:01.519 --> 00:19:03.119 Some of them don't pay for them. 335 00:19:03.440 --> 00:19:05.960 I mean, the government picks up the tab, but that 336 00:19:06.039 --> 00:19:08.359 if it's passed on to us here in America, we 337 00:19:08.400 --> 00:19:10.480 pay exorbitant prices for some of those things. 338 00:19:11.119 --> 00:19:15.359 Another piece of information from the this didn't come out 339 00:19:15.400 --> 00:19:16.480 of nowhere file. 340 00:19:17.400 --> 00:19:18.680 You brought up India. 341 00:19:19.559 --> 00:19:24.559 In India's importance in terms of being a trade partner 342 00:19:24.599 --> 00:19:26.759 with US. We talked about how it's also a big 343 00:19:26.799 --> 00:19:30.440 trade partner with China, but India, China kind of has 344 00:19:30.480 --> 00:19:33.359 India by the balls when it comes to pharmaceuticals because 345 00:19:33.400 --> 00:19:37.160 India gets seventy percent of its pharmaceuticals from China. So 346 00:19:37.240 --> 00:19:40.359 that's going to be a main driving factor. China also 347 00:19:40.400 --> 00:19:44.119 took note of Trump in the campaign years talking about tariffs. 348 00:19:44.119 --> 00:19:45.400 He talked about it his last term. 349 00:19:45.440 --> 00:19:48.240 He started he started playing around with China his last term, 350 00:19:48.519 --> 00:19:51.079 and we could talk about that as well. But China 351 00:19:51.119 --> 00:19:54.200 started this new campaign, you know, make America great again. 352 00:19:54.240 --> 00:19:58.680 Here China started their own Made in China twenty twenty 353 00:19:58.680 --> 00:20:04.240 five campaign with the Laser focus on Biotech, which is 354 00:20:04.359 --> 00:20:08.000 essentially making pharmaceuticals in China. So this is something that 355 00:20:08.200 --> 00:20:10.839 both countries have been working towards. They both see how 356 00:20:10.880 --> 00:20:14.759 powerful of a drug the pharmaceutical industry is when it 357 00:20:14.799 --> 00:20:15.799 comes to these tariffs. 358 00:20:15.880 --> 00:20:19.720 So then how much pressure how It's hard to describe 359 00:20:19.960 --> 00:20:22.119 or hard to ask the question in the right terms, 360 00:20:22.160 --> 00:20:25.880 but how much pressure does this add to the pressure 361 00:20:25.920 --> 00:20:27.039 that they have already felt. 362 00:20:27.119 --> 00:20:28.759 I think the good news for us, the people who 363 00:20:28.839 --> 00:20:32.720 take the drugs is they need each other. The United 364 00:20:32.720 --> 00:20:36.240 States and China both can't say fu in this department, right, 365 00:20:36.359 --> 00:20:39.200 They just can't. They're too reliant on each other. 366 00:20:39.759 --> 00:20:41.759 You can call it about all the industries though, I mean, 367 00:20:41.799 --> 00:20:43.440 think about appliances. 368 00:20:43.519 --> 00:20:48.359 But you mess with people's drugs, my god. 369 00:20:48.920 --> 00:20:51.680 We will continue garing that TikTok was bad. We'll be 370 00:20:51.799 --> 00:20:52.240 right back. 371 00:20:53.480 --> 00:20:56.960 You're listening to Gary and Shannon on demand from KFI 372 00:20:57.160 --> 00:20:58.079 AM six forty. 373 00:21:01.160 --> 00:21:02.960 President Trump has paused. 374 00:21:04.480 --> 00:21:07.920 Tariffs for ninety days against most countries, but he's raised 375 00:21:07.920 --> 00:21:11.000 the Chinese rate to one hundred and twenty five percent 376 00:21:11.480 --> 00:21:15.400 because of a lack of respect in this even though 377 00:21:15.400 --> 00:21:16.920 they don't want to call it a trade war, it's 378 00:21:16.920 --> 00:21:19.559 shaping up to be. Smells like a trade war, sounds 379 00:21:19.599 --> 00:21:20.240 like a trade war. 380 00:21:20.319 --> 00:21:22.880 Well, let's talk about should we do good news? Should 381 00:21:22.880 --> 00:21:26.680 we have a good news moment? Sure, if these gains hold, 382 00:21:26.720 --> 00:21:28.200 it'll be the best day for the S and P 383 00:21:28.279 --> 00:21:32.559 five hundred eight since March twenty twenty, and the market 384 00:21:32.680 --> 00:21:36.160 recovery from that early pandemic and do sell off. Nearly 385 00:21:36.240 --> 00:21:40.759 every stock index is up. Airlines, tech companies, Tesla among 386 00:21:40.799 --> 00:21:45.880 other companies to soar over twenty percent if things hold. 387 00:21:45.960 --> 00:21:49.839 Like I was mentioning, Tesla's shares of automakers rose even 388 00:21:49.839 --> 00:21:53.240 though twenty five percent tariffs on imported cars remain in place. 389 00:21:53.680 --> 00:21:57.880 Tesla up nineteen percent, Forward GM both up about eight percent. 390 00:21:58.079 --> 00:22:02.079 Investors betting if these numbers are true and they hold, 391 00:22:02.200 --> 00:22:06.279 Investors are betting that carmakers will also get a reprieve. 392 00:22:06.000 --> 00:22:07.039 From the administration. 393 00:22:07.720 --> 00:22:10.559 I don't have good news, but I have funny news, Okay. 394 00:22:13.279 --> 00:22:17.559 Megan Markle says that we may head into a recession 395 00:22:17.599 --> 00:22:19.400 because of the terrifying Okay. 396 00:22:19.200 --> 00:22:24.480 So I've reached pinnacle recession feedback at this point. Justin 397 00:22:24.519 --> 00:22:27.039 Worsham usually joins us, and he was going to he's here, 398 00:22:27.119 --> 00:22:29.480 we're going to be parenting. But then as hit the fan. 399 00:22:29.920 --> 00:22:31.480 But that doesn't mean we don't want to talk to 400 00:22:31.640 --> 00:22:35.519 Justin because Justin has a show that he's doing on KFI. Yeah, 401 00:22:35.559 --> 00:22:39.200