Trump Announces New Set of Tariff Rates Ahead of August Deadline

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2:12The U.S. will impose 25 % tariff on imports from Kazakhstan, 40 % tariffs on Laos imports. Malaysia will see 25 % tariffs on Malaysian products. South Africa, 30 % tariffs on their products. This comes after earlier this afternoon, we heard from the president who said that the U.S. will impose a 25 % tariff on goods from Japan and a 25 % tariff on South Korean goods effective August 1st. I want to bring in Representative Kathy Castor. She's a Democrat who represents the 14th District of Florida. It includes Tampa and parts of Hillsborough County. Representative, it's good to have you with us. Thanks so much for joining us.

2:50We had you on. We had you booked to talk about what Democrats have as their path forward after the passage of what President Trump refers to as the one big, beautiful bill. We'll get to that in a few minutes. But because of your work with commerce and because of your work on manufacturing, we got to start with tariffs and what we're hearing from the White House right now. Are tariffs the right way, in your view, to bring manufacturing back to the United States? Tariffs can play a very important role when they're targeted and strategic. The problem is that the president is all over the map. This is chaotic.

3:24Businesses do not know how to grapple with them and respond. And these recent tariffs announced today against our allies, Japan and South Korea and other Asian nations, you know, we were trying to build a wall to counter China and everything, all of their malign activities when it comes to trade. So I really this is a head scratcher why you you build up these these tensions with our best trading partners and allies and business owners here across the state of Florida are wondering that as well. Why are they facing higher costs at a time when now with the big ugly bill, you're adding almost four trillion dollars to the national debt?

4:11That's also sure to fuel inflation. We'll talk about the bill in just a minute. One more on tariffs, though. I want to also say the S &P 500 down about 1.1 percent. It did fall a little more than that just after we heard from the president via Truth Social and the announcement of those additional tariffs or those tariffs, the clarification of those tariffs on those countries that I just mentioned. You did say that if tariffs are targeted, they can play a role in bringing manufacturing back to the United States. Of the tariffs that the president has implemented or that are implemented right now, which ones do you agree with?

4:45Which ones are the right way to bring manufacturing back to the U.S.? I can't really point to some. I mean, a few years ago, we had targeted solar modules because we know that the Chinese has been dumping solar panels and all of those kind of. And that was one strategic way to, at a time when we're trying to reshore all of the clean energy elements to build up our own supply chains that we used to own in America, by the way. You know, a targeted effort like that could be very smart as part of a broad-based strategy. And I just don't see a broad-based strategic strategy right now when it comes to manufacturing.

5:25As a matter of fact, the big bill just throws a wrench into the manufacturing boom we had underway in the U.S. Well, let's talk about that bill, Trump's big, beautiful bill that you have publicly called the big, ugly bill. You've also said that it's fiscally irresponsible and morally wrong and an abdominal transfer of wealth from the working class to the wealthy. What specific provisions in the bill that has now become law do you find most troubling? Well, never before have we adopted a piece of legislation that gives tax cuts to the wealthiest Americans, while at the same time you are cutting health care for 17 million Americans.

6:09You're taking away food assistance from seniors and veterans and children. You're cutting Pell Grants and student loans. So this is completely out of whack and it's going to be very costly, ultimately, for many American businesses and definitely American consumers and families. You know, the bill, though, at this point has become law. So it's essentially what we're talking about is water under the bridge. And we'll get we'll get to the idea of whether or not Democratic leadership did enough to stop this from becoming law. But where do you go now? What are you going to do about this? It will be very important for American businesses and families to understand the impact.

6:53The one piece of it that has not gotten a lot of attention are the energy provisions. You remember the president ran on a promise that he's going to lower electricity bills. But all of the analysis now say that when you yank back all of the clean energy tax credits, it's a recipe for higher electric costs. all of the analysis coming in, say higher electric bills for businesses and consumers alike. They're throwing a wrench in this manufacturing boom that we had underway due to our climate and clean energy law. We had seen over 1 ,000 factories open across the country, over 400 ,000 jobs created.

7:36Now what we're hearing are business cancellations all across the EV battery supply chain. And again, this is not smart because it's a gift to China. China wants to own, they want the competitive edge on all clean tech manufacturing. And we were just starting to build up our supply chains, our manufacturing, so that we can work with allies to dominate the clean energy sector. And Republicans and the president now have thrown that all away at a time when we're also grappling with the higher costs and impacts of the climate crisis. What a tragic situation in Texas. My community is still rebuilding from Hurricanes Helene and Milton that was supercharged by hotter Gulf waters.

8:24And that, you know, climate isn't just about the weather. It's about your wallet. And now they have pretty much said we're not going to be a leader. We're going to cede that to China. And our Americans are going to have to grapple with rising costs over time. It's really a sabotaging, a self-sabotage of this big, ugly bill. Continuing on the subject of climate here, do you think that the last minute changes that remove the excise tax on wind and solar by that industry, those industries, any breathing room? It helped, but it just wasn't as harmful. So you would have seen just a complete death knell for clean tech right now if that excise tax had passed.

9:15But right now, we're going to be grappling with rising cost and closure of factories. And when you're comparing the impacts of tariffs, if tariffs are intended to boost domestic manufacturing in the U.S., then why in the world would you throw a wrench into our manufacturing boom that we had underway in this country? Hopefully, many of those businesses will hang on, but still, China will continue to try to eat away at a competitive advantage. And while we are imposing tariffs on our allies and friends and other countries around the world, China is going to move in and try to develop those partnerships.

9:56It's just it's a crazy way to do business, and I'm afraid it's going to cost us a lot. The Congresswoman, I want to shift gears and talk a little bit about Medicaid and the health aspect of this. Our producer, Elizabeth Sedrin, crunched some numbers here and found some really interesting stuff. If you're watching on YouTube or Bloomberg Television or Bloomberg Originals, you can see here the yellow is Hillsborough County, Florida, a portion of that which falls which falls into your district. Additionally, other counties as well are in your district. But if you look at this, a higher portion of folks in this county versus the statewide total are actually on annual Medicaid and CHIP enrollment.

10:36In the year 2024, more than 20 % versus the statewide of 18.7%. So clearly a lot of people in your district are going to be affected by this. How do you plan to counter these rollbacks? This is going to be very difficult. hospitals, doctors, nurses, the American Cancer Society, you name it, they oppose these draconian cuts to people's health care because it's going to cost lives. The other major impact besides Medicaid, especially here in the state of Florida, that people will feel by the end of the year is the end to the tax credits for policies offered through the exchange, through the healthcare.gov marketplace under Obamacare, the Affordable Care Act.

11:22There are 4 million Floridians that rely on those tax credits that help make their premiums and co-pays affordable. We have a lot of small business owners. We have a lot of entrepreneurs, many in hospitality, and that has been the go-to place for affordable, high-quality health insurance. So while the Republicans sneakily said the Medicaid cuts will happen maybe in a couple of years, what we're going to see in Florida is a real rollback in the ability of folks to afford health insurance for their families. That means small business owners will have to grapple with that and our our health care providers, too, who have been waving red flags and saying, danger, danger, this is going to cost lives and it's going to cost money.

12:04We only have about 30 seconds left, but I want to get your take on whether you think Democratic leadership did enough to stop this bill from becoming a law. Because of the dire consequences, I would say we have not done enough. But this is very unpopular. Everywhere I go, people are very angry. They're saying we are suffering through an affordability squeeze. And how dare the president and the Congress try to pull one over on us and make our lives more expensive at a time when we really need help in our pocketbooks. Congresswoman, really appreciate you taking the time and joining us. Kathy Castor, representative, a Democrat who represents the 14th District of Florida.

12:43It includes Tampa, parts of Hillsborough County. She voted against the bill, joining us once again from Tampa. Congresswoman, thanks so much. Bloomberg Business Week Daily is brought to you by HPE, bringing you the self-driving network, a network that's self-optimizing, self-healing, and self-protecting and only continues to get smarter. Learn more at hpe.com slash networking. Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work.

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14:37Explore the possibilities at 4imprint.com. 4imprint. 4certain. You're listening to the Bloomberg Business Week Daily Podcast. Catch us live weekday afternoons from 2 to 5 Eastern. Listen on Apple CarPlay and Android Auto with the Bloomberg Business app. Or watch us live on YouTube. As we've been covering throughout the day, we're hearing more from the White House about different parts of the world and different tariffs that will be imposed. South Africa, 30 % rate. Japan, 25 % rate. Kazakhstan, 25%. Laos, 40%. Malaysia, 25%. Myanmar, 40%. And South Korea, 25%. That's just a quick recap of some of the tariff rates that the president has announced today.

15:21We will bring you more if we do hear more from the White House and from Washington, D.C. Once again, the president is set to sign executive order at four o 'clock that would extend that tariff deadline to August 1st. Well, speaking of some of these countries, South Africa, for example, the president did warn on Sunday night that tariffs on countries aligning themselves with BRICS policies, just as the group of nations that includes Brazil, Russia, India, China, and South Africa holds a two-day summit in Rio de Janeiro. The president posting on True Social over the weekend that he would put an additional 10 % tariff on any country aligning themselves with the, quote, anti-American policies of BRICS.

16:05We welcome Ximena Suniga, Bloomberg Economics Geoeconomic Analyst for Latin America. She joins us from the Bloomberg Buenos Aires Bureau. Ximena, good to have you with us. I just want to get understanding from you about how the tariff news, like we heard over the weekend, but we also heard from the president on South Africa just in the last couple of hours. How is this all being absorbed at the BRICS summit? Well, according to the press conference that was hosted by President Lula, who was the host of the summit, the BRICS did not, tried not to react to this message. President Lula said he considered the imposition or the threat of tariffs over social media irresponsible.

16:48And prompted by one of the questions from the reporters in the room about whether the threat had impacted the dynamics of the group or its cohesiveness, Lula said, no, we try to stay focused on our agenda. And for now, there's nothing certain in terms of whether these tariffs will be implemented or not. And we kept along. This summit held for two days in Brazil. What is its actual purpose here for the BRICS nations? I beg your pardon? What is the exact? What's the purpose of the BRICS summit that's being held right now? I see. Of course, yeah. So the summit, the BRICS, issued a lengthy declaration covering multiple policy issues.

17:39But yes, the glass half full is that the BRICS, which is a very diverse group, managed to achieve consensus on a lot of the principles that are reflected in the declaration. The glass half empty is that they didn't achieve a lot in terms of very tangible outcomes, except perhaps we're having unleashed this potential U.S. response. So we are in a situation in which the most tangible outcome of the summit, ironically, may be that it has increased the risk that the U.S. imposes sanctions on the group. Why? Because a lot of the declarations of principles, statements of principle in the leader's declaration, can be considered at odds or tacitly criticizing the U.S., right?

18:27So, for example, they talked about their serious concern about unilateral tariffs. They talked about the need to address health, shared health challenges through the WHO, which Trump, as you know, has criticized. They talked about shared environmental challenges and the need to uphold the Paris Agreement. A lot of things that President Trump seems to have felt the U.S. policies were being criticized for and that he seemed he had, he thought he had to react to. I'm wondering how you're looking at the body right now and like who encompasses BRICS, for example, because Brazil is a lot different than Russia and India has very different goals than China and South Africa, for example.

19:14And given what we've seen from Russia over the last three plus years with its invasion of Ukraine and also with China and the way that the U.S. now sees China as more of an adversary in the last eight years or so, six to eight years than it has in the past. I'm wondering if that threatens to sort of splinter the BRICS groups, if you'd have countries not necessarily want to be part of it, if those other countries that are seen as hostile to the U.S. are part of it? Yeah, you underscore a key issue, right? The BRICS is a very diverse group, and that is one of the key issues that undermines its effectiveness, as you say.

19:57Unlike the G7, that was traditionally the driver of the global order and its main enforcer, and that is a very compact group and cohesive group, all democracies, all advanced countries, all behind, until recently at least, behind the global trade order that was put in place after World War II. Brics span different geographies, different levels of development, regional rivalries, that those of India and China. And they are held together primarily by a shared sense that emerging markets should have a more clear and louder voice in the global policy agenda. and they want to build a multilateral world.

20:45But yeah, their lack of cohesiveness is something undermining their effectiveness in terms of achieving tangible outcomes. And as you say, the fact that now the group is being perceived as the U.S., perhaps incorrectly perceived as anti-U.S., some countries may have an anti-Western or anti-U.S. bias, but definitely not all, certainly not Brazil or India, for example. But the fact that the U.S. targets BRICS may lead some countries to think it over twice before joining the group, which was one of the strategies that the group has been pursuing to increment its geopolitical gravitas, one, has come naturally, because the group members grow on average more than the world does.

21:32And so the body is increasing its share of the global economy. It's currently at 27%, which is slightly above that of the U.S. alone. But the other thing it has been doing and considering doing farther is expanding its membership. And now that other avenue might be complicated or at least slowed down by the U.S. threats. You alluded just now to something that I read in the intro at the beginning of our conversation. And it was what President Trump posted on his social media platform, the anti-American policies of BRICS. Those are those are his words. What do you construe as him meaning by the anti-American policies of BRICS?

22:15Certainly, we understand, you know, a country such as China and why the U.S. views it as an adversary in a country such as Russia, for example. But is there anything else that we should understand about how the U.S. views this group in terms of what could be construed as anti-American? I think the most tangible thing that BRICS could do to undermine the US, even though they don't do it to undermine the US, is to pursue dedollarization. But ironic, and that would be something very concrete that would undermine US interest. But ironically, that does not seem to be the main thing that President Trump responded to because the timing of his comments on Sunday night suggests that he may have reacted to the content of the leaders' declaration, which was issued a little before.

23:04And we had very little in terms of concrete progress towards secularization. Actually, some of the big BRICS members, notably India, are opposed to this goal. And so the BRICS stayed kind of clear from that. But they did write things like, you know, we condemn the attacks, the strikes on Iran, One, we support the Paris Agreement, the WHO, the WTO. And it appears that Trump read criticism in those statements, even though they were not framed as anti-U.S. and they avoided mentioning explicitly U.S. policies. Ximena, going to have to leave it there. Thanks for joining us on this Monday afternoon.

23:44Ximena Zuniga, Bloomberg Economics, geo-economic analyst for Latin America, joining us from the Bloomberg Buenos Aires Bureau. For more on the BRICS Summit, check out everything that we have on the Bloomberg Terminal and, of course, at Bloomberg.com as well. This is the Bloomberg Business Week Daily podcast. Listen live each weekday starting at 2 p.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa, play Bloomberg 1130. Well, three days after cataclysmic floods tore through a stretch of the Texas Hill Country, officials have confirmed the deaths of 27 children and counselors who'd been missing from a girl's summer camp.

24:31Authorities counted more than 90 deaths statewide, and so the number was almost certain to climb as rescuers sorted through mounds of debris. Julie Fine is Bloomberg News Texas Bureau Chief. She joins us from our Dallas Bureau. Julian, absolutely tragic story that we just cannot begin to imagine the devastation, the loss here. We see images. All of us are so heartbroken about what happened and what is still happening. First, the latest. Is this at this point still search and rescue or is this a recovery operation? Well, Governor Abbott was very, very quick to say, and this was in his news conference yesterday, has not had one today, that he continues to look at this like a search and rescue.

25:15Obviously, as we know, as time goes on, that becomes more difficult. But he wanted to assure the families that they would do everything they can to try to find these children. There are still 10 campers and one counselor missing tonight. There's many more still missing throughout the state of Texas. Also, when you hear from the first responders, it's just the debris they have to get through. We've had more bad weather here since the initial flooding. So they continue to search. That search is still 24-7 and will go on for some time. Is there any more bad weather coming? And how does that impact this rescue mission now?

25:55Well, luckily, the weather is getting better. There is still some bad weather. But yesterday, for instance, while they were searching. They had to stop at one point because the rain got so bad. However, the forecast does seem to be improving, which should make it a little bit easier on the first responders who are here from across the nation. They are here from the federal government, from the state and local governments. Julie, how does flooding like this happen so suddenly and ostensibly without warning? Well, there were there were warnings. The National Weather Service had warnings for three days and the warnings continued to go.

26:36Here's one thing that everybody has to also recognize. The warnings can be going all day long. They started two days before they were they were watches. Then that turned into warnings. You can have the warnings out. The question is, are they received? You're talking about a camp where children, of course, don't have cell phones in the camp and in the area. A big question is, was there internet? Were people able to get them? Also, sirens. The city, I believe, did not have certain sirens in certain areas. In terms of the weather, one thing to understand about Texas weather is it is not predictable even for forecasters at times.

27:17You can have a tornado coming, but at the last minute because of the weather, it could veer 70, 80 miles. So there will be a lot of questions about the warning systems, why certain people didn't know about that. And I'm sorry, go ahead. Well, I just want to clarify this a little bit. When you say there were warnings three days ahead of time, two days ahead of time, one day ahead of time, how specific are we talking here? Are we talking like, okay, well, there could be a storm surge here as a result of rain that could climb this high and affect this camp? I don't know if they were specifically for that camp, but they were for the area.