the tariffs are cutting imports from china. china imports are down 15%, but vietnam imports up 40%. taiwan imports, up 21%. south korea up 18%, india up 15%. the supply chains are moving away from china to other countries in asia and elsewhere that can provide the products and corporations are going to move their supply chains as request i cannily as possible. the interesting thing of the proposed mexican tariffs, it s harder to switch the supply chain. for gm, they have manufacturing plants and ford has one third of its vehicle produced in mexico. it s not that easy to build a whole new car manufacturing all the suppliers, so, they are single second biggest trading partner and we may be able to source avocados from somewhere else, but not necessarily build a new car plant. i think you ll see that in the
canada us agreement done. it will court to strengthen the president s position vis-à-vis china. let s get rid of the tariffs and then the next day say we will pose new tariffs so that does make it problematic. i do think at the end of the day there will not be these tariffs on mexico. the president is going to get a deal with mexico. heather: david: it is 10 days. in the past, he feels there is making progress but we want us canada mexico to be a big free-trade zone so we can have a powerful alliance against these places like china but if you look at the job the president has done on the economy it is so fantastic i don t think we want new tariffs with the southern
i know you agree the crisis at the border is absolutely real. you have been talking about it for over a year now. democrats have dithered and denied that it was a crisis at all. this is a reaction to the crisis, the president s threat on mexico. is a good reaction? i hate tariffs. in some cases they are appropriate to use. i have been supportive of what donald trump is doing with the chinese. we are in an abusive relationship with china but i am questioning this one with mexico. i ve worked with donald trump for three years and one thing i learned about him is he is a master negotiator and he uses these tactics to get concessions from countries and i hope that is what happens. the white house meeting with the mexicans later this week. i m hoping and praying we get an
david: although surprisingly, he said he d still be in favor of donald trump because of the effects of the tax cuts and the regulatory cuts. well, tom, it s clearly a loyal trump supporter that he s willing to sacrifice his business sales for supporting the president, but listen, i heard charles payne say something very interesting regarding these tariffs. david: he only says interesting things. yes, he does. he said something interesting, he said ultimately, obviously, tariffs are a tax, but what s going to happen is that people will not accept that tax in the form of tariffs being passed through. they are going to change their buying patterns, right. david: that s all a great point. what happens, david, what happens is countries like china and mexico, if they want to sell into the united states, they re going to have to adjust their pricing. now, will that happen? it s a very interesting point of view. david: well, we have some stats to back that up and we might be able to show t
reporter: the first round of tariffs will take place 9 days from now at 5%, starting at 5% but then jumps another 5% each month all the way to 25% until donald trump is satisfied mexico is doing enough to stop the flow of reaching the with border. mexican officials are hoping to reach a diplomatic solution and they will be having a summit in dc with mexico s foreign minister meeting with mike pompeo. on friday mexico s foreign minister tweeted taking the fight to washington via houston with jared kushner and mike pompeo, negotiations begin with interest and respect for the letter from the president. the white house facing a lot of blowback over the latest move which would make everything from electronics to car parts to food and medicine more expensive for americans. here is the executive vice president of the us chamber of commerce.