The Charlie Kirk Show


Trump's Trade Triumph ft. Sec. Howard Lutnick


Summary

Trump's trade deal with the EU and China is a huge win for the USA. This is a complete change of the 80 year old trade policy of the United States and a complete victory for the President and his team. President Trump is winning on the trade front in historic ways.


Transcript

00:00:00.000 Hey, everybody, Charlie Kirk here, live from the Bitcoin.com studio.
00:00:04.000 My exclusive conversation with Secretary Howard Luttnick.
00:00:07.000 Amazing news here about China, EU, Cambodia, Thailand, India, Pakistan, cars, beef, lobster.
00:00:14.000 Listen to this episode.
00:00:14.000 Text it to your friends.
00:00:15.000 President Trump is winning on the trade front in historic ways.
00:00:19.000 Email us as always, freedom at charliekirk.com and become a member today.
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00:00:26.000 Buckle up, everybody.
00:00:27.000 Here we go.
00:00:28.000 Charlie, what you've done is incredible here.
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00:01:26.000 Joining us now is the Secretary of Commerce, Howard Luttnick.
00:01:31.000 Secretary Luttnick, thank you so much for taking the time.
00:01:34.000 What a last couple of weeks it has been.
00:01:35.000 Congratulations.
00:01:37.000 Talk about this EU trade deal.
00:01:39.000 I know you've been working really hard on it.
00:01:40.000 The president has been leading the charge.
00:01:42.000 This is historic.
00:01:43.000 Please, Secretary Luttnick.
00:01:44.000 Okay, so in the beginning, you had all these experts who said that Europe would never go for a deal with Donald Trump and America, and this was impossible.
00:01:54.000 And of course, we have proven beyond a shadow of a doubt that Donald Trump is completely correct about tariffs.
00:02:00.000 So what they agreed to do is 15% across the board.
00:02:04.000 They send us $600 billion a year in goods.
00:02:09.000 This is just goods.
00:02:10.000 So that's going to earn us $90 billion a year.
00:02:13.000 And their $20 trillion economy, remember, they're 450 million people.
00:02:18.000 $20 trillion economy is now open for the first time ever to Americans.
00:02:23.000 So we can sell all our industrial products.
00:02:26.000 We can sell shellfish.
00:02:28.000 We can sell whatever we want to Europe.
00:02:31.000 And I just think this is a complete change of the 80-year mistake of trading policy fixed by Donald Trump in six months.
00:02:42.000 Yeah, and you bring up such a great point.
00:02:45.000 So can you talk about how tariffs and Liberation Day brought us to this?
00:02:51.000 Walk us through the sequencing because it was unorthodox.
00:02:54.000 It was Trump-like.
00:02:55.000 It was brilliant.
00:02:57.000 But now we have a record trade deal in a way that we've never seen before, where we're now going to have money pouring back into America.
00:03:04.000 How did you guys get to that point?
00:03:07.000 So if you remember, the trade policy of the United States was designed right after World War II, which basically was let's export the power of the American economy to the rest of the world, build the rest of the world with our economy, and you can put on tariffs to protect yourself.
00:03:26.000 And we'll stand here and export our economics to you.
00:03:30.000 And we'll rebuild Japan after World War II.
00:03:33.000 We'll rebuild Europe.
00:03:34.000 And then we rebuild it after Korea.
00:03:36.000 We rebuilt it after Vietnam.
00:03:39.000 And, you know, Donald Trump in the mid-80s started saying, what the heck are we doing?
00:03:43.000 So he had the experience of his first term.
00:03:47.000 He thought about it in between.
00:03:49.000 And when we walked in the door on January 20th, we walked in running.
00:03:54.000 Okay.
00:03:55.000 And that was the key.
00:03:56.000 So he set up the policy right away with me and said, we want to put pressure on the world starting right away.
00:04:03.000 It's our economy.
00:04:04.000 We're the great consumer.
00:04:06.000 Let's put pressure on the world right away.
00:04:08.000 They have to sell to us.
00:04:09.000 The customer is always right.
00:04:12.000 So he put out sharp numbers on April 2nd that caused a shockwave through the world because he was saying, whether you're an ally or an adversary, you're still not treating us right.
00:04:24.000 And he started the process of the customer is always right.
00:04:28.000 And America is the greatest consuming customer in the world.
00:04:32.000 Just under $30 trillion that we spend and the rest of the world sells to us.
00:04:39.000 So you should pay fairly or at least treat us fairly and let us sell to you.
00:04:45.000 And that was the model we started on April 2nd.
00:04:48.000 Then everybody decided they needed to negotiate with us.
00:04:52.000 He took down the tariffs to just 10%, of course, 55% on China total.
00:04:58.000 So we start making about $30 billion a month while we're negotiating.
00:05:04.000 And then in classic Donald Trump fashion, as time went by, the price started going up, right?
00:05:11.000 And he'd say, you can open your market a little.
00:05:13.000 You can open your market some more.
00:05:15.000 And now where we are, if you don't smash open your market entirely to America, Donald Trump's not interested.
00:05:22.000 You can just pass the tariff.
00:05:24.000 Yeah.
00:05:24.000 And so talk more about specifically what industries in particular are going to see the greatest, let's say, exporting growth or surge?
00:05:34.000 What businesses have been prohibited from being entered into European markets and others that are now going to be liberated?
00:05:42.000 Give some examples, please, of businesses.
00:05:44.000 I'll give you some fun examples.
00:05:46.000 I mean, there's so many examples like lobster, right?
00:05:50.000 You couldn't sell lobster anywhere.
00:05:52.000 So like when we did the UK deal, they said, okay, we'll invite you over for a lobster dinner.
00:05:57.000 And funny is that?
00:05:58.000 You would say, really?
00:05:58.000 They won't take our lobsters?
00:06:00.000 They won't take our lobsters.
00:06:01.000 They won't take our beef.
00:06:03.000 They won't take our chicken.
00:06:04.000 They won't take our row crops, right?
00:06:06.000 Just corn and soy.
00:06:08.000 They were all blocking.
00:06:10.000 And they'd buy it from other places.
00:06:11.000 They'd buy it from Brazil.
00:06:12.000 They'd buy it from Argentina because we weren't paying attention, right?
00:06:16.000 And all cereals, I mean, and industrial products, you know, medical machinery.
00:06:23.000 I mean, you name it.
00:06:24.000 It's just we were not allowed to sell to them cars, right?
00:06:29.000 They All were blocked.
00:06:31.000 They'd have these standards that basically made it so that we couldn't sell there and they could sell here.
00:06:37.000 And now they've agreed in both Europe and Japan and the UK to accept our standards so that we can just take a car, make it in Detroit, and sell it in Europe.
00:06:50.000 And that's just, you can't even imagine what a change that is.
00:06:53.000 That is not a change that was possible without Donald Trump in the White House.
00:06:59.000 That's exactly right.
00:07:00.000 How has it been for you personally kind of through this entire last couple of months?
00:07:05.000 I know you're used to a high-paced environment, but you've been dealing with dozens of different potential trade deals simultaneously.
00:07:12.000 How have you been keeping up with President Trump?
00:07:15.000 Well, basically, my job is to set the table, right?
00:07:18.000 I negotiate with everybody.
00:07:20.000 I get it all organized, right?
00:07:22.000 If you will, I set the table, and then it's time for Donald Trump to do the deal.
00:07:26.000 So I get the deal as far as I can get it.
00:07:29.000 And when I run out of room, I put the greatest negotiator in the world at the table with the counterparty, like we did with Europe, like we did with Japan, like we've done with each of these deals.
00:07:41.000 And then he gets a better deal than I ever could.
00:07:44.000 And I got to tell you, there's very few things that are as much fun as setting the table for the greatest negotiator who's also the president of the United States, who just takes it home every time.
00:07:55.000 And the key to Donald Trump is his intuition.
00:07:58.000 He knows how far he can push someone and he gets it to that point.
00:08:03.000 And it is just, it's a masterclass to watch.
00:08:06.000 And I have the best job because I get to sit next to him and watch him as the greatest negotiator.
00:08:12.000 I sit the table, but boy, he makes it.
00:08:15.000 He makes that meal so amazing.
00:08:17.000 It's just a pleasure for me.
00:08:19.000 This EU trade deal is profound.
00:08:21.000 It's historic.
00:08:22.000 And the entire team deserves such credit.
00:08:25.000 We're going to dive more detail in there.
00:08:26.000 And also, the big question is, is there a China deal coming?
00:08:30.000 That is a big, big question.
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00:09:30.000 Secretary Lutnick continues to us.
00:09:32.000 I want to play cut 328.
00:09:33.000 Even the mainstream media who hates us is bragging on this trade deal.
00:09:39.000 Play Cut 328.
00:09:40.000 The early reviews are in on the new trade deal announced with the European Union.
00:09:43.000 The Financial Times says the deal marks a victory for Trump.
00:09:47.000 Is this a fantastic deal then struck by Donald Trump?
00:09:50.000 Absolutely a victor on behalf of the Trump administration.
00:09:53.000 First of all, the bottom line is this is the biggest trade deal in President Trump's effort to effectively reshape the global trading order.
00:10:01.000 On this deal, the European Union, this is a big win for the U.S. The bigger picture is that Trump is still very much pursuing his longer-term goal of achieving what he perceives to be fairness for America.
00:10:12.000 It's a triumph of a lot of things.
00:10:14.000 Certainly the president ought to take a victory laugh.
00:10:17.000 I think it ends up being good for the European Union.
00:10:20.000 I mean, Secretary Luttnick, they're doing my job for me.
00:10:23.000 Your reaction?
00:10:24.000 Oh, I mean, that's why I have the most fun job in the cabinet.
00:10:30.000 You know, I get to set the table.
00:10:32.000 I mean, I met with European Union representatives 40 times.
00:10:37.000 And in the beginning, they were basically giving me the middle finger.
00:10:40.000 We were nowhere.
00:10:41.000 They wouldn't even respond to us.
00:10:43.000 And they didn't respond until Donald Trump sent them a letter saying, you know, if you're not going to respond, pay 50%.
00:10:50.000 And then all of a sudden that changed, right?
00:10:52.000 And they started responding, responding.
00:10:54.000 And then he sent them another letter saying, look, you guys are doing a little bit.
00:10:58.000 So 30%.
00:11:00.000 And then boom, off we went until they offered to open their markets completely, pay us 15%.
00:11:08.000 But the key to why they did that is the sectoral tariffs, the tariffs on autos, the tariffs that are coming on pharmaceuticals, the tariffs that are coming on semiconductors, because Donald Trump has the biggest, the U.S. is the biggest customer in the world.
00:11:23.000 We were going to take all those industries back to America.
00:11:27.000 And basically what he told Europe, if you want to keep half, you better do a deal with me.
00:11:33.000 And so, Secretary Luttnick, let's also talk about some of the other deals.
00:11:36.000 There was a Philippines deal that came through.
00:11:40.000 And brag on some of the non-EU news because that kind of went uncovered.
00:11:44.000 The Japanese deal?
00:11:45.000 I mean, these are the Japanese people.
00:11:46.000 We got to talk about Japanese partners.
00:11:48.000 We have to talk about Japan.
00:11:49.000 We have to talk about Japan.
00:11:51.000 No, no, no.
00:11:52.000 Japan, they're the toughest negotiators on the planet.
00:11:55.000 Tell us, get us into the room.
00:11:57.000 What was it like being in the room with the stoic Japanese and President Trump?
00:12:02.000 Tell us.
00:12:03.000 All right.
00:12:04.000 So the Japanese are just not the kind of society that was really going to open their market in the same way.
00:12:11.000 So we had to come up with a new way of thinking about it.
00:12:14.000 And basically what they did is they bought down their tariff, right?
00:12:18.000 They needed their car manufacturing culture is just fundamental to Japan.
00:12:26.000 And so they couldn't live with a 25% auto tariff.
00:12:29.000 And so they had to buy it down.
00:12:31.000 And so the model was they offered, and this was the structure I came up with, they offered $400 billion, right, to a 50-50 partnership with America.
00:12:44.000 And we could spend that money as the president saw fit on production in America.
00:12:49.000 So if we want to build semiconductors, if we want to build gas turbines, you know, to do power, whatever we want to build in America, the president could decide and the Japanese would Fund it, fund all of it with their money, and we'd be 50-50 partners.
00:13:05.000 And that's the table I set when the Japanese came into the room, into the Oval Office to negotiate with Donald Trump.
00:13:13.000 And where did we end up?
00:13:14.000 $550 billion.
00:13:17.000 So $150 billion more.
00:13:20.000 And 90, 90, 90% of the profits go to the American people.
00:13:27.000 So basically, and in exchange for that, the Japanese wanted a 10% reciprocal tariff and 15% on autos.
00:13:35.000 And of course, Donald Trump was able to get 15% across the board.
00:13:39.000 So a better deal than I could ever get.
00:13:42.000 Donald Trump got it.
00:13:44.000 I set the table in what I thought was the coolest deal ever.
00:13:47.000 And Donald Trump turned it into the best and coolest deal ever.
00:13:51.000 So we have $550 billion to choose the industries Donald Trump wants to invest in in America to build them.
00:14:00.000 And we will be building them during his term in America.
00:14:04.000 That's, it's so cool.
00:14:05.000 It'll produce more than 100,000 jobs, probably 150,000 jobs, 200,000 jobs directly created by Donald Trump in the White House.
00:14:13.000 It's really the most, it's the coolest deal ever.
00:14:17.000 The European Union is the biggest, and the Japanese deal is the coolest.
00:14:22.000 And President Trump is using trade as a way to broker peace.
00:14:26.000 In a not even a covered story by the mainstream media, Thailand and Cambodia reach a ceasefire deal to end conflict that displaced over 260,000 people.
00:14:36.000 Talk about how President Trump used tariffs and trade to end a war and the senseless killing of people between Thailand and Cambodia.
00:14:44.000 All right.
00:14:45.000 So I'm planning on flying over, right?
00:14:47.000 I'm going to Scotland to see the European Union on Sunday, right?
00:14:51.000 And Friday and Saturday, Donald Trump basically gets calls, calls me, calls the trade team, says, let's be on the phone.
00:14:59.000 I'm going to make calls.
00:15:00.000 So he calls the head of Cambodia and he says, listen, you know, you're a great country.
00:15:05.000 He's so respectful and he's so kind.
00:15:07.000 But he basically gives them two choices, two paths, right?
00:15:11.000 The path of let's figure out a way to do a ceasefire and I'll do a great trade deal with you and we'll really trade great.
00:15:19.000 And if you can't figure out a way to do a ceasefire, you start, you need to start figuring out how to do your business without the United States of America as your client.
00:15:27.000 You can't do business with America.
00:15:29.000 So choose love or vinegar.
00:15:32.000 You know, he always says, honey, vinegar, honey or vinegar.
00:15:35.000 And then he hangs up the phone and the guy says, okay, I'll do a ceasefire.
00:15:38.000 I'll do a ceasefire.
00:15:39.000 Then he calls Thailand and he says the same thing.
00:15:41.000 And by the way, they each say the other one started.
00:15:43.000 It's all the other one's fault.
00:15:44.000 And the president is respectful.
00:15:47.000 He's kind.
00:15:48.000 He's warm.
00:15:49.000 He's engaging.
00:15:51.000 But he ends up doing it in a way that basically says, look, I'll do the great trade deal with you and we'll do huge amounts of business together.
00:15:57.000 Or really, you better find your own way in this world without America.
00:16:00.000 And neither country can afford it.
00:16:03.000 And so what ends up happening is he uses the power of the economics of the United States of America and the incredible thoughtfulness of the way he thinks about things to use the power of our economy to create peace.
00:16:16.000 And I, you know, look, as I said, no one's having a better time in the cabinet than me because I get a front row seat to watch Donald Trump create peace through the power of the American economy and the power of the American presidency.
00:16:31.000 And you saw it this weekend and they just announced it.
00:16:34.000 I mean, how amazing is that?
00:16:35.000 And you could go over so many deals.
00:16:37.000 Pakistan and India, nuclear powers.
00:16:40.000 Yep.
00:16:41.000 Go to peace, right?
00:16:42.000 Rwanda and Congo, right?
00:16:44.000 I mean, you just, one after the other after the other, he's using the power of the presidency to create peace.
00:16:51.000 It's amazing.
00:16:51.000 And this is, this defies all the chattering class of the experts.
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00:17:53.000 There's three quick things, Secretary Luttnick.
00:17:56.000 I know we have five minutes remaining.
00:17:57.000 I want to hit with you.
00:17:58.000 I want to talk about rebates, how wrong they were about tariffs, and then finally, I want to ask about China.
00:18:02.000 Number one, is there potentially a rebate, a working class rebate that is being considered?
00:18:07.000 President Trump said yes.
00:18:08.000 We're looking at it.
00:18:09.000 This would definitely come across your desk.
00:18:12.000 What's being talked about here?
00:18:14.000 Could working people possibly get a little bit of rebate because of all the tariff revenue the United States is bringing in?
00:18:20.000 Exactly.
00:18:21.000 So, you know, when they did the big beautiful bill, they don't count the tariff revenues.
00:18:26.000 So these tariff revenues are going to be 600, then 700, then 800, then 900.
00:18:32.000 And over the course of his presidency, they could easily hit a trillion dollars a year.
00:18:37.000 So the president is thinking about, look, I've created this value, right, from the power of the American economy, from all our people and all their consumption.
00:18:46.000 Why not figure out a way to share some of that money with the people of America?
00:18:51.000 And I'm telling you, he's thinking about it.
00:18:53.000 He hasn't made a decision, but he's thinking about it.
00:18:56.000 He floated it.
00:18:57.000 And you know the beauty of it.
00:18:58.000 Without Congress?
00:18:59.000 Oh, I don't know.
00:19:00.000 I haven't studied it yet.
00:19:01.000 I've just sat with him and I've listened to him talk about it both publicly and privately.
00:19:07.000 I mean, he's interested.
00:19:08.000 You know, he cares so much about the American people.
00:19:12.000 And this whole reshoring model, right, is going to change our jobs in America from the elite, you know, coastal elite to the fundamental jobs of America.
00:19:25.000 We're going to create 5 million high-paying, high-tech, the coolest jobs in the world that have never been available to Americans, right?
00:19:35.000 Because they didn't exist in the world, right?
00:19:37.000 There was cheap labor everywhere else in the world.
00:19:40.000 And now, because of automation, we can bring high-tech, cool jobs, vocational jobs, training jobs, technical jobs, jobs that are fun, jobs that are high-paying, you know, starting at 75,000 bucks and getting up to multiple hundreds of thousands of dollars, not doing gender studies at some East Coast school.
00:19:59.000 That's over.
00:20:00.000 These are the coolest kind of jobs where you're doing manufacturing, you're working, you're proud of what you do, you're working in a clean room, and you're doing the coolest tech jobs.
00:20:11.000 And those 5 million jobs are coming to America.
00:20:14.000 And Donald Trump's going to do it.
00:20:15.000 And he may.
00:20:16.000 I know he's kicking around the idea of a down payment to America to show them where America's going.
00:20:21.000 So, Secretary, I know you've been working on this.
00:20:23.000 It's been publicly reported, but it's the big one.
00:20:25.000 It is the major prize.
00:20:28.000 China, little whispers here or there.
00:20:31.000 What can we expect?
00:20:32.000 What are you able to tell us publicly about the discussions between U.S.-China trade relations?
00:20:38.000 So the talks are going on right now, and I'll leave to the team who's doing the talking to do a readout.
00:20:45.000 But there is an enormous opportunity out there to level set the kinds of things with China that we should be doing more of, right?
00:20:55.000 We should sell them more soybeans, and we're happy to buy inexpensive baby clothes from them.
00:21:00.000 That model is something that we should exaggerate, right?
00:21:04.000 And we're really talking about the things where are closer to the line.
00:21:08.000 But I'm going to let the team read you out, but you know who's making the deal, right?
00:21:13.000 Donald Trump is in the driver's seat, and he's the one that's going to decide how to work out the terms with China.
00:21:19.000 It is the big one, but fortunately, we have Donald Trump in the White House to think it through and try to come up with the right path for America.
00:21:27.000 Last question, Secretary Luttnick.
00:21:29.000 All the experts said tariffs would increase prices, tariffs would all this.
00:21:32.000 They will never learn.
00:21:34.000 If you had to summarize what you, though, have learned that you did not know about President Trump since taking this position, because you know him quite well.
00:21:40.000 You're one of his closest friends.
00:21:42.000 What have you even learned since now being a cabinet official alongside President Trump?
00:21:46.000 The best thing about Donald Trump is the scale of his intuition, right?
00:21:52.000 He instinctively knows.
00:21:54.000 If you watched him with the EU, he instinctively knows where to push people to the edge to get the most for America, but also leave them feeling good about themselves.
00:22:03.000 He knows how to do it.
00:22:04.000 He did it with the Japanese.
00:22:06.000 He understands in a way that I don't think any expert ever understood.
00:22:12.000 And that's the proof from tariffs.
00:22:13.000 He's proven it.
00:22:14.000 He understood it in his soul, and he's delivering it for the American people.
00:22:19.000 Donald Trump understands.
00:22:20.000 I sit next to him every day, and I'm the proudest to sit next to him because I learn from him all the time.
00:22:26.000 And that is the coolest job.
00:22:28.000 Secretary Luttnick, thank you so much.
00:22:30.000 We got eyes on all the tables that you are setting.
00:22:33.000 Great work.
00:22:33.000 See you soon.
00:22:34.000 Thank you.
00:22:35.000 See you soon.
00:22:36.000 Thanks so much for listening.
00:22:37.000 Everybody, email us as always, freedom at charliekirk.com.
00:22:40.000 Thanks so much for listening, and God bless.