What is a Tariff and where does that power come from? We explain how it's not a trade war, it's a drug war, and how President Trump is going to enrich the country with his recent moves with tariffs. Peter Navarro, Counselor to the President of the United States on Trade and Manufacturing, joins us as we dive into this.
00:00:00.000Hey everybody, it's in the Charlie Kirk Show.
00:00:01.000What is a tariff and where does that power come from?
00:00:04.000We explain how it's not a trade war, it's a drug war, and how President Trump is going to enrich the country with his recent moves with tariffs.
00:00:14.000Peter Navarro, Counselor to the President of the United States on Trade and Manufacturing, joins us as we dive into this.
00:00:20.000Email us as always, freedom at charliekirk.com.
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00:01:50.000This is a very rapid developing news day and we are going to break all of the news down from this last weekend.
00:01:59.000Starting on Friday, President Donald Trump brilliantly put forward not a threat but a tariff promise.
00:02:07.000Now President Donald Trump did this in a very thoughtful way.
00:02:11.000He's been talking about for quite some time both on the campaign trail and of course throughout his two Week presidency that he was going to use tariffs against countries that have been taking advantage of the United States and also to get them to help the United States.
00:02:29.000President Donald Trump on Friday afternoon and evening said, oh, tariffs will be applied on Saturday morning.
00:02:36.000This last weekend, we saw a 25% tariff applied on all Canadian imports, 10% on energy, 25% Now mind you, this is the brilliance of President Donald Trump.
00:02:53.000President Trump wanted to be able to have a window of negotiation.
00:02:59.000He knew that markets were going to get a little jittery.
00:03:01.000He knew that markets might have a sell-off.
00:03:03.000So he did this intentionally on Friday to allow a weekend of some negotiation and dialogue when markets are closed.
00:03:12.000So that the Dow does not go down a couple thousand points.
00:03:14.000So that he has an ability over a Saturday and a Sunday to accept some calls in between golf rounds at Trump National in Palm Beach and to negotiate.
00:03:24.000Now the tariff power is a very unique power given to the President of the United States.
00:03:31.000Unlike most economic measures and treaties, it does not require Congress.
00:03:36.000The President of the United States has unilateral authority.
00:03:40.000To be able to apply tariffs on imported goods in the United States.
00:03:48.000A tariff could be called a tax, but that is a very shallow way of interpreting it.
00:03:53.000Basically, if I am going to import a car into the United States, and that car is $10,000, well, a 25% tariff would then make that car $12,500, and the tariff...
00:04:11.000This power is derived from several pieces of legislation.
00:04:15.000Of course, the Tariff Act of 1930, and then Section 301 of the Trade Act of 1974, and Section 232 of the Trade Expansion Act of 1962. This gives the president the power to impose tariffs if deemed necessary for national security.
00:04:33.000For example, if the United States believes that the importation of certain products threatens national security, the president can apply immediate tariffs.
00:04:42.000Also, under the International Emergency Economic Powers Act, the president can also declare a national emergency and use tariffs and sanctions as he sees fit.
00:04:52.000The president ran on an America First industrial policy, rebuilding the heartland of this country, but most critically and importantly...
00:05:00.000Stopping the flow of drugs, illegals, guns, and fentanyl into our communities.
00:05:07.000We've seen the wreckage, the damage that has happened because of the porous southern and northern border.
00:05:14.000Last week we had Josh Parker on the program, who is hoping to eventually maybe run for Elise Stefanik's seat in New York 21, as he was covering the northern border, the terrorists that are coming across the border, and Canada with Trudeau.
00:05:29.000And Steinbaum in Mexico have not cared a scintilla about closing their border or mobilizing the military to help stop it.
00:06:43.000The way to do this is to remind them that we don't want to destroy your economies, but we're not going to put up with an invasion.
00:06:51.000And what we have learned over the last couple of years is that the way to stop such invasion and flow of drugs is you must have the intermediary countries such as Mexico or Canada work in collaboration with the United States of America.
00:07:06.000The second reason for tariffs is to force other countries to stop taking advantage of us in other ways.
00:07:17.000And I must also mention not getting as much attention.
00:07:20.000There is a 10% import tariff on all goods from China, and we'll get to that in a minute.
00:07:26.000And finally, tariffs are necessary to revive our own economic production.
00:07:30.000We've become too reliant, way too reliant, on other nations for things such as vitamin C, making critical pharmaceutical manufacturing.
00:07:42.000President Donald Trump using these tariffs has brought them to the table.
00:07:46.000In the breaking news in the last hour, The 25% tariff on all goods coming from Mexico has been suspended for one month.
00:07:54.000In addition, the Mexican government is putting 10,000 of their own troops on the southern border to repel such invasion into the United States of America.
00:08:04.000President Donald Trump wants that to be zero.
00:08:06.000President Donald Trump wants to get to the magic number zero.
00:08:10.000Zero illegals coming into the United States.
00:08:13.000And yes, we have mobilized our military.
00:08:15.000Yes, we are no longer doing catch and release.
00:08:17.000But still, there's too many people coming across the border.
00:08:54.00075% of all known terrorist watchlist suspects cross through Canada, not through Mexico.
00:09:00.000Remittances from the United States make up roughly 5% of Mexico's GDP. This is the largest source of foreign income for Mexico, surpassing tourism, Foreign direct investment and manufacturing exports.
00:09:14.000This is President Trump addressing these tariffs.
00:10:02.000I disagree with the leadership of Canada.
00:10:05.000And something's going to happen there.
00:10:09.000Of our entire economy, only 2.5% of our GDP is exports to Canada and Mexico.
00:10:18.000One-third of the Canadian economy is exports from Canada to America.
00:10:28.00017% of Mexico is exports from Mexico to America.
00:10:32.000So basically, they've deindustrialized our country to make their country wealthy while doing nothing to stop the flow of such toxins into the interior of the United States.
00:10:45.000President Trump is using the tariff power given to him by Congress to defend you, your children, your neighborhoods.
00:10:52.000And then we're going to talk in the next segment, but how do you avoid a tariff?
00:13:18.000A cruise ship, a Media Research Center cruise ship, with Brent Bozelt, great guy, and they had some corporate class lunatic who was giving a lecture on tariffs, about how terrible tariffs are, and he acted as if he was a super smart professor.
00:13:33.000And I asked him 15 questions, and he couldn't answer a single one of them.
00:13:37.000I said, why is it that during America's greatest prosperity, we funded the entire government on tariffs?
00:13:43.000I asked him, how does one avoid a tariff?
00:13:45.000He said, well, he did get this question right.
00:13:48.000Well, you avoid a tariff by making the good in the native country.
00:14:10.000Build the factory in Waukesha, Wisconsin.
00:14:17.000Factories that otherwise would be in Wuhan, Guadalajara, or Winnipeg.
00:14:23.000It is a forcing function to say that the labor of the world will no longer be used in this massive capital arbitrage that disenfranchises American workers.
00:14:36.000And has the internationalist-corporatist free trade experiment worked?
00:15:18.000So that's where all of the smart capital is going right now, is that we are going to have a hardware, that's right, a hardware breakthrough, the likes of which no one saw coming.
00:15:29.000So let's pretend you're a big company, and you're thinking of where to make your factory.
00:15:34.000You don't want to have a 25% duty put on your products.
00:15:38.000So you say, hey, let's go build it in Tampa.
00:15:43.000You build your product here, there is no tariff.
00:15:47.000One of the most famous tariffs that we talk about on this program is that there is a 25% import tariff to this day that Lyndon Baines Johnson put on the books on pickup trucks.
00:15:57.000Do not every pickup truck you see on the highway has a 25% tariff.
00:16:02.000So how does Toyota avoid the pickup truck tariff?
00:16:05.000They don't need to re-headquarter the Japanese company.
00:16:35.000And the end result is we can still export pickup trucks to the rest of the world.
00:16:40.000You look at what we've done with pickup trucks.
00:16:42.000Again, the corporate class, the Koch brothers, they have been so, they've propagandized us because all they cared about was one thing, the lowest possible price for a good imported into the country.
00:16:52.000So we have piles of plastic that are littering our garages.
00:16:55.000We have garage sales of stuff that we have no attachment to, and we have entire communities look as if it's been Dresden.
00:17:34.000Build your good in East Palestine, Ohio.
00:17:40.000Even if you think it's a bit overhyped, AI is suddenly everywhere from self-driving cars to molecular medicine to business efficiency.
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00:19:15.000In this case, we have a drug war against the American people.
00:19:22.000On the campaign trail, Charlie, as you well know, the president promised the American people that people would stop dying from deadly Chinese fentanyl coming in through Mexico and Canada.
00:19:37.000It's important to understand how this works.
00:20:09.000Have their little factories and processing where they make straight fentanyl pills, but they also use the fentanyl to lace other drugs, anything from heroin and speed and so on.
00:20:21.000And next week when the Super Bowl happens in New Orleans, it's eerie.
00:20:27.000The number of people are going to be sitting in the Superdome.
00:20:31.000About 75,000 is roughly equal to the number of Americans who have been dying.
00:21:06.000To explain just how difficult this situation is.
00:21:09.000And so once it gets to Mexico, the cartels are going up to Canada.
00:21:13.000There's also a bunch of it coming in from China directly through the mails.
00:21:18.000The stuff is so small it comes in through packets.
00:21:21.000And the president said, this is stopping.
00:21:25.000And what he has done is use the International Economic Emergency Powers Act, Emergency Economic Powers Act, IEPA, that's what it's called.
00:21:36.000Which provides the president broad authority in times of crisis, in this case a public health crisis and a border security crisis, to use tools such as tariffs to solve the problem.
00:21:51.000So the tariffs were imposed on Saturday by the stroke of a pen with three countries.
00:21:59.000China gets 10% tariffs, Mexico and Canada 25% tariffs.
00:22:05.000Breaking news, just this morning, the president and the Mexican president were able to successfully negotiate a 30-day pause in the tariffs.
00:22:18.000We're going to get 10,000 more troops at the Board of Charlie and a whole bunch of other stuff.
00:22:23.000The Mexican government has actually been very helpful and willing to negotiate.
00:22:47.000Prime Minister, who seems to want to go out in a flourish, but who seemingly has no regard for either the welfare of Canadians or the welfare of the American people.
00:22:59.000And so this is where things stand at this point.
00:23:03.000The president has taken firm action to save lives.
00:23:18.000And the president is going to put a stop to it, sir.
00:23:21.000Peter, explain how the White House views the implementation of tariffs to protect American industry and to have a forcing function of redomiciling industry against what would be the typical neoliberal Washington, D.C. corporate consensus.
00:23:38.000Explain the philosophical worldview difference that President Trump has.
00:23:43.000The globalist view of the world, which is rooted in this thing called the Ricardian trade model, which every undergraduate is taught in our ivory tower schools, says that if you have free trade among countries and labor and capital are mobile, you'll have a bigger economic pie because everything's more efficient.
00:24:11.000And life will be better for everybody.
00:24:14.000But when you read the fine print of that globalist model, you see that it falls completely apart immediately.
00:24:22.000Because first of all, some countries win, some countries lose.
00:24:27.000And second of all, there's no such thing as free trade.
00:24:30.000The United States is the uncle sucker of the world when it comes to trade.
00:24:35.000We have the lowest tariffs, lowest trade barriers in the world.
00:24:39.000We've got a trillion-dollar trade deficit every year as a result.
00:24:42.000And what President Trump's view of the world, nationalist, economic, populist view of the world, if I may, is that it's America first.
00:24:53.000We have to defend our factories and jobs and sovereignty against unfair trade.
00:25:03.000And the sovereignty comes in by the fact that when you run With respect to the different kinds of things the president's going to be doing, it's in different buckets.
00:25:24.000There's a commitment to a global tariff.
00:25:29.000This is the deal with the trade deficit issue.
00:25:32.000There's a review of Steel and aluminum tariffs, which were successfully put on by President Trump in 2018, but which have been eroded by the Biden administration.
00:25:46.000And then there's the strategic and national security type tariffs.
00:25:54.000So I remember, I think in some sense, the boss...
00:25:58.000I was inspired by the first time we closed the border, Charlie.
00:26:03.000I was there in the Oval when the president asked whether we could impose tariffs on Mexico to force them to seal the border.
00:26:24.000To Mexico and within 24 hours after globalist heads exploded, sure enough, Mexico sent 20,000 troops to the border and signed the Remain in Mexico policy and boom, done.
00:26:39.000So the current issue here is a drug war, not a trade war.
00:26:45.000We're trying to stop the flow of fentanyl.
00:26:51.000It's not just that they're allowing these Mexican drug cartels in the labs and that they've got the fentanyl coming in in small packages across their border.
00:27:02.000There's been almost 100 terrorists on the watch list that we've apprehended here in America that came through that northern border.
00:27:10.000And it's like they should be bending over backward to help us.
00:27:32.000We are in a war with the Chinese chemical producers, the Mexican drug cartels, and the Canadian...
00:27:47.000Authorities who are allowing fentanyl and other drugs and contraband and terrorists into our country.
00:27:57.000And look, I mean, Charlie, it's like the border security issue I think was the single most important issue in this election, followed only by the trade issue.
00:28:11.000The president, promises made, promises and kept.
00:28:14.000No one knows better than Charlie Kirk that the president keeps his promise.
00:28:17.000And he's going to stop Spentano from killing all of these Americans.
00:28:23.000And he's going to do it by forcing China, Mexico and Canada to put an end to what they're doing with respect to that trade.
00:29:29.000Investigations about possible global trade, export controls, currency manipulation, steel and aluminum tariffs, critical minerals, including the rare earths, essential medicines.
00:29:42.000It's all laid out in that presidential memorandum, Charlie.
00:29:46.000And all you have to do, if you're a good journalist, is read it and you'll get great insight into the trajectory of the trade policy.
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00:31:55.000The founders wanted equal branches that are constantly bickering with one another.
00:31:59.000They did not want to have a superseding legislative branch.
00:32:02.000And if we're honest with ourselves, we have a supremacist Article I, and then we have this Article IV, like a fourth branch government that comes together.
00:32:11.000And this Article 2 is basically the executive branch has become this weak, feeble, basically performative branch, and President Trump is bringing it back to the vim and vigor that the founders envisioned.
00:32:27.000A lot happened at the DNC. And you have to wonder, for those of us that are conservatives and want to see the Republican Party go into a red rain, R-E-I-G-N, have the Democrats decided...
00:34:38.000Playcut 39. We're finding out ways to expedite this.
00:34:45.000Because of our gender balance provisions on this next ballot, you will be able to vote for two candidates of any gender on the next ballot.