More Tariffs Coming & Cyclospora’s Source 7/21/26

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0:36Visualize your trades in a new light on Thinkorswim Desktop with robust charting and analysis tools all while you uncover new opportunities with up-to-the-minute market news and insights Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more at Schwab.com slash trading. Bring in show music, please. Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod. Lame Canada. New tariffs of 50 % on Canadian goods from wine to hockey sticks to cement are Eamon Javers with the breakdown. They feel that Canada has these trade practices that are unfair.

1:19The United States Trade Representative Jameson Greer joins us first to walk through the president's tariff policy now more than a year old. We've taken actions consistent with our national security. And the reasoning. Of all the countries who retaliated against the United States, one was the People's Republic of China and the other was Canada. And the potentially lettuce-borne parasite making diners nervous. This is a dog bites man story. Nobody probably went to Taco Bell over the weekend. What's safe? And will we figure out where's the source of the sickness? Former FDA head Dr. Scott Gottlieb.

1:56Look, I think you can start eating salads again. The false positive, I think, is a red herring. I'm trying to think of a fast food I don't like. I haven't come across one. Plus, the rest of today's news that got us squawking. It is Tuesday, July 21st. Squawk Pod begins right now. Stand Becky by in three, two, one. Cue, please. Good morning, everybody. Welcome to Squawk Box right here on CNBC. We are live from the Nasdaq market site in Times Square. I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin. And U.S. forces struck Iranian targets for a tenth straight day after President Trump vowed that Tehran will pay for killing three U.S.

2:39soldiers. The president posted on True Social, every time Iran kills an American soldier, they will pay for that killing many times over. This directive has been passed on to Secretary of War Pete Hegseth, chairman of the Joint Chiefs of Staff Daniel Cain, and every leader in the military. U.S. Central Command said the military completed the latest round of strikes at about 9 Eastern last night. And, you know, crude prices, we were 69, and then stuff happened. We go, oh, it's only 71. And then things happen. Well, we're still only 73. It's not that bad. And then, wow, why isn't it higher? It's only 75.

3:22And then it was, well, now it's 80, but it's not higher than 80. And now it's almost 85. So it's been a slow move back up. But now we're back at a point where it's going to affect gasoline. prices, midterms, affordability, and all those things. Well, and also the idea of the Red Sea, the strait there being closed for Saudi Arabia. That's another 7 % of global production being stopped. Still not 150, still not 95 again, but like I said, a couple, two, three dollars every day. Right. In the meantime, the Trump administration announcing a new 50 % tariff on some Canadian goods. Eamon Javers has the details.

4:06Eamon, good morning. Yep, good morning to you. President Trump is using this unusual tariff authority to impose significant new duties on Canadian imports. The president signed three proclamations yesterday pursuant to Section 338 of the Tariff Act of 1930 to impose additional 50 % tariffs on certain goods coming from Canada, ranging from wine to hockey sticks to cement. These new tariffs will take effect 30 days after the signing. Section 338 has been on the books for years and decades even, but it hasn't been used to enact tariffs, so we can expect this to be challenged in court as part of this ongoing debate about the scope of the President's tariff authority.

4:50Now, according to senior administration officials, the new Canadian tariffs apply to all designated goods, whether or not those goods are compliant with the existing trade framework known as USMCA. Now, that is a signal that the administration is willing to further undermine the USMCA agreement with Canada. But at the same time, U.S. Trade Representative Jameson Greer is heading to Mexico this week to negotiate terms for that country's agreement under USMCA, which all suggests that Washington is far more eager for a trade deal with Mexico than with Canada, upending the previous trilateral approach to trade relations between the three countries.

5:31Now, Canadian Prime Minister Mark Carney issued a statement saying the trade war has raised costs for families, particularly in the United States. And he said Canada stands ready to engage intensively to resolve issues. Meanwhile, Doug Ford, the Premier of Ontario, responded on social media last night with a more confrontational statement saying, I'll never stop fighting to protect Ontario. If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar. Back to you guys. Amen, it's$20 billion out of$383 billion. And something did... $20 billion in goods. In goods, out of$383 billion in goods.

6:15Okay, so that's a slice of the exports from Canada, but what's it in retaliation for? Because there is something that raised President Trump's ire. Energy, potash, fish, critical minerals are all exempt, but there's something with, if you're buying auto parts from Canada, you have to actually manufacture some of it in Canada. There are some some trade practices that are, I guess, legal under the USMCA, but that we don't like. What caused this? What's a retaliation against? I'll tell you. Yeah, I'll tell you first what it's not retaliation against. You heard the president last week say he's going to impose tariffs on Canada in response to the wildfires and the smoke that engulfed a large part of the east coast of the US last week.

7:12This, officials say, is not the response to that. They say this is the result of an ongoing process. They say for months and months they've been doing this research. They feel that Canada has these trade practices that are unfair, and therefore it's a reaction to that. And so, you know, not the wildfire stuff that a lot of people, I think, jumped the gun yesterday and said, OK, well, last week we saw wildfire complaints from the president threatening tariffs. That's what this is. Officials say, no, it's not. So we know what it's not, but not necessarily what it is. Yeah, that was strange. I don't know.

7:48We want better force management or something up in Canada. But I saw some editorials basically say that it's, in effect, Trump calling for a carbon tax on some of the stuff that happens in Canada. which is, I guess if you, you know, you could look at it maybe that way, but hopefully that's not where we're headed. I don't know about you guys. We had a lot of smoke down here in D.C. Yeah, we had a lot here, too. We did. Although they've gotten upset because they've said in the past when we've had wildfires, they've come to help. Canada has. Right. So, interesting things. Eamon, thank you. We are going to be speaking with U.S.

8:28Trade Representative Jameson Greer. He can tell us exactly what caused all of this and set things up. President Trump's new Air Force One, the Boeing jet gifted by Qatar, will now be taken out of service for about a month for additional upgrades and enhancements. The White House Press Secretary, Caroline Levitt, saying the new Air Force One is perfectly safe for the president's travels, will receive additional upgrades and enhancements in the fall. She said that the president would fly on the old Air Force One during those upgrades. President Trump flew on the new plane earlier this month to that NATO summit in Turkey, but then changed planes while flying back.

9:07That change reportedly came at the request of the Secret Service. The New York Times at the time reported that the new jet lacked some defensive countermeasures, including anti-missile capabilities. So we will see whether it gets maxed. The president said it was getting maxed out, the plane. And then, of course, the question then becomes, can the plane have the same defense capabilities? And can you actually install those, implement those in the next, you know, literally in a month or two? Is that a process? Some people have suggested it could take much longer. How does that actually work? And then there's the other big question, which is that the president has said that he may plan or want to take that plane with him after his presidency.

9:53for his museum. So then you have to think about, yes, it was gifted to the country, the plane, but clearly the taxpayers are going to be on the hook for several hundred million dollars to fix the plane and put in all the countermeasures and all of those things. And then does the next president not get the benefit, not just the president, but does the taxpayers and the government get the benefit of that plane in the future? The London Stock Exchange is moving closer. or 24-hour trading during the work week. It's planning a new offering called LSE24 that will operate from 5 p.m. until 7.50 a.m. in London.

10:32It's expected to be ready for client testing by the end of this year. That follows plans by the New York Stock Exchange to adopt a 22-hour weekday trading schedule and the NASDAQ to offer 23-hour per day trading during the work week. I don't know how you can get trading at 22 hours. I mean, or 20. I mean, you know, this is like eight minute abs. This is another eight minute abs. The only thing that gives me any pause on on any of this is. Remember the financial crisis, the great financial crisis and the times that there were news that had to come out when the markets were closed to give the markets time to digest it, to give people time to figure it out.

11:15There'll be none of that. No respites. I mean, I guess on the weekends, this is only five days. and a lot of that stuff was happening on the weekends. You had to have a deal announced by Sunday before the market's open. 22, okay. I see that and I raise you one. LSA, well, we're thinking 24. Now, the person that gets it, 25. I want to do 25. Well, that's on the days that you like in June. The longest day to year. When the days are longer. When you always think the days are longer. The daytime, the light is longer. You never really explained that. Bring me to the sun. I was part of this next story, I guess.

11:48visits to Taco Bell, locations plunged. This is a dog bites man story. Yeah. Are you surprised by this? Were you here for my explosive diarrhea conversation? No? Friday. Oh, you were? Okay. Just that you need to distinguish between what you normally would get and how bad it would get from the normal. And the other thing about this story is cyclosporiasis, if you transpose the P and the S, it looks like psoriasis. It looks just like it. So you got every time you see it, you got to say. But anyway, you can imagine that. And there was a lot of advertising during the World Cup and other other sporting events for Taco Bell.

12:29Nobody probably went to Taco Bell over the weekend. What surprised me, I think it was a drop of 19 percent in foot traffic. What surprised me is 81 percent still. Yeah, right. Exactly. And nothing against Taco Bell. Love them. It's just I might take a break. if I was worried about making sure that that lettuce was really cleared out. At the supermarket, do you ever buy salad in a bag? Yeah. Yeah. And I haven't done that in a while either. Right. But it was yesterday's story where the FDA walked back whether it was one of the company's lettuce suppliers from Mexico. Data from Placer.ai found, as Becky just said, that foot traffic was 19 % below the chain's average.

13:18for Fridays for the year, but that means 81 % of people are still in there. Give me that 12-pack. Shares of people don't even know you can get a 12-pack. I didn't know. Yeah, you can get a 12-pack of just normal crunchy tacos. Parent company Yum! Brands down more than 7 % in the month of July. On Sunday, the FDA said that that one test of iceberg lettuce from Taylor Farms resulted in a false positive. The agency, though, clarified yesterday that it has not changed its prior conclusion that the outbreak is linked to shredded iceberg lettuce from Mexico, supplied by Taylor Farms. I don't know what all this means.

13:55I don't either. Still advising Americans not to eat recalled iceberg lettuce. We'll talk more about the outbreak with Dr. Scott Gottlieb. I mean, that's my question. Do we know that it's that? Do we not know? They said it was a false positive, but they still think it's not only iceberg lettuce, but from this and this Taylor farm. So I don't know what we know. Hopefully Scott can walk us through a lot of this. Because I got to the point where I'm ready to start eating raspberries and other stuff again because I thought it was this. Coming up, raspberries, blueberries and other things. Cheese will be next.

14:29Coming up, fresh tariffs from President Trump to Canada, an AI race with China, all things trade and the global economy with the U.S. trade representative, Jamison Greer. The president embarked on a new trade policy really designed at reshoring manufacturing production to the United States and getting the trade deficit down after exploding for decades. The White House's key voice on trade. He'll join us from the busy and sometimes noisy White House North Lawn. Yep, there are lawnmowers. You'll hear. Squawk Pod will be right back.

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15:36Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more at schwab.com slash trading. Most of us are one good deal away from finally replacing that worn-out rug, fixing up the backyard, or getting the bedroom we actually want. Good news, that deal's almost here. Wayfair's Black Friday in July sale. Get up to 80 % off area rugs and up to 60 % off outdoor and bedroom furniture. Shop Wayfair's huge selection of styles and find the piece to fit your style, budget, and space. Plus, free shipping. Black Friday in July ends July 27th.

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16:20This is Squawk Pod. Up in Andrew, Q. You're watching Squawk Box right here on CNBC. I'm Andrew Osorkin, along with Joe Kernan, Taco Bell's best customer, and Becky Quick. President Trump signing three proclamations yesterday to impose 50 percent tariffs on some Canadian goods, and those would take effect in 30 days. Joining us now, Jamison Greer, U.S. trade representative. It's good to see you. Good morning. How are you? We'll call you Mr. Ambassador. We'll call you. How about Jameson? Is Jameson all right? You've been on many times. Yeah, good to see you, Joe. Appreciate you having me on. A couple of questions, I guess, come to mind.

17:04What was the tipping point to do this in terms of it's reciprocal? Something got the president's ire about something. Can you describe exactly what it was and why these very targeted tariffs affecting hockey sticks and some things that maybe we wouldn't think of immediately? Well, let me give you just a little bit of history, Joe, on this issue. In April of 2025, as you know, the president embarked on a new trade policy really designed at reshoring manufacturing production to the United States and getting the trade deficit down after exploding for decades. Of all the country, and we impose tariffs on all the world at varying levels, of all the countries who retaliated against the United States, one was the People's Republic of China and the other was Canada.

17:55Some of the things they did is they banned the sale of U.S. liquor and other booze on Canadian shelves. They capped and limited the amount of autos that could be shipped to the United States from companies who were reshoring to the U.S. And they also continue to maintain limited space for market access for U.S. dairy. But importantly, they give other countries better deals on each of these three issues. And so it was a natural consequence after a year of these measures being a place. and longer in the case of dairy, for the president to take action. These are responses to this retaliation. We've been asking for a year for the Canadians to remove these, to modify them, to adjust them.

18:36They haven't done that. And so we have a tailored action that covers a subset of Canadian goods. We aren't banning the goods like the Canadians have banned American alcohol. We're not putting a cap on them. We're limiting them like they've done to cars and dairy. But we have a tariff, which is, again, is a natural consequence of the Canadian retaliation, which has endured for a long time. Did either the things that the actions that Canada has been taking or these tariffs here, are either of them not allowable under the current reading of the USMCA? So for the dairy, for example, the United States, we're very competitive in dairy production and cheese.

19:21And the Canadians made a commitment to us under the USMCA to allow us access under certain types of quotas. However, in implementing that access, they have said you can only sell essentially to co-ops, which are owned by Canadian dairy farmers, who obviously have less of an incentive to get American dairy. But when you look at the EU, they allow EU dairy not only to go to those destinations, but they can also sell them to retail, to wholesale, to food service. That's the kind of access we expected out of USMCA and that we're not getting. The prohibition on wine and spirits, again, that's not permitted under our trade agreements.

19:59People will come and they'll say, well, the United States has taken trade actions on Canada, etc. We've taken actions consistent with our national security to make sure that we can reshore and support our auto supply chains, which are under attack by China and excess capacity worldwide. We're protecting our steel and aluminum. Other countries are taking similar actions to protect their steel products. So the types of things we're doing are overdue. No one has retaliated against us except China and Canada. So we're taking a targeted measure to counter that retaliation. So, you know, Mark Carney said, the prime minister said that the new tariffs are the latest in a series of unilateral U.S.

20:40trade actions that do violate the USMCA. And Canada has been making a lot of detailed proposals to try to resolve some of these issues and they stand ready to engage. Is that do you think that that's not true? Is he distorting or not being totally truthful? Well, the Canadians have always been willing to engage if engagement means talking and meeting. We've done that. I've done that. I have a good relationship with my counterparts there. When he talks about these proposals, I won't go into detail because I want to respect the confidentiality. But what I will say is the proposals are generally for promises to discuss these issues, which we're already doing, not to not to actually change these things.

21:26They talk about collaboration on energy. We've never had tariffs on Canadian energy. We've always been open to that and that kind of exploration. So the types of things that have been in these proposals have always been, let's talk, let's keep trading in energy, things we already do, things that do not fundamentally commit to resolve these issues, maybe just talk about them some more. And for us, we want them fixed. What do you think the president feels we should do with USMCA? what will be the end result? Do you know? Well what I would say first of all as you know the president elected not to renew USMCA and in some ways he has already overwhelmed elements of that agreement with actions he's taken again on auto steel and aluminum which are global in nature but obviously affect our relationship with Canada and Mexico.

22:16One of the things he wants to see with Canada and Mexico is he wants our deficit to go down with these countries. With Canada it has gone down over the past year. With Mexico, it's gone up. Our global trade deficit overall, if you're measuring the 12 months before the tariff program started in April 2025 and the 12 months afterwards, the trade deficit globally has gone down, which is good. But the composition of that deficit has changed. So that's his number one goal. We want the outcomes to make sense. We want to have more auto manufacturing here. And we're seeing it, Joe. One of the reasons why the Canadians imposed their measures is because we've seen lines, production lines come from Canada back to the U.S.

22:52We're seeing Toyota and others move from Mexico to the U.S. That's what we want. So that's the outcome that he wants. I think also if we can have an arrangement with Mexico, with Canada, that we are trying to emphasize Canadian, Mexican, U.S. content in goods traded in North America, that's a good outcome because that helps get supply chains back here in North America. Sometimes it almost does seem like the whole world we could talk about. How about, Let's just talk about the EU and this loan to Airbus. So it's not just that President Trump feels like we've been harmed. In this case, Boeing is asking the U.S.

23:32to intervene. What can you tell us about that? So we have had for a few years an understanding with the European Union that neither side would have unfair subsidies. There was a World Trade Organization dispute about this where the United States won in a big way. The EU themselves had a case against us with Boeing. which was a much smaller case. But the reality is we've had a settlement with the EU for many years. However, this is coming on the heels of that settlement. The EU has announced this loan. We're looking at it very closely. I've made representations to my counterpart in the European Commission.

24:08We're speaking with Boeing about this. We don't mind fair competition. We welcome fair competition. That being said, we can't accept a situation where companies don't have to operate under market-based systems, where Boeing has to operate and compete against an Airbus that gets unfair loans or loans that are unfair with respect to everything that we're trying to do in America. We want to make sure that our companies can compete on a level playing field. And if the European Union is giving unfair loans, then we need to take care of it and address it. The latest and once again, switching gears, the latest is that there are A.I.

24:46advances being made in China. Maybe that they're surprising that either bring us bring that country up to up to par with the United States or even maybe ahead in certain areas. Do we need to do things in terms of of new trade actions there? Where does it stay? We haven't we haven't heard much lately about proposed remedies for things like this. So this is an emergent issue where China is going with artificial intelligence. They're clearly our key competitor in the world on this issue. This is something that a number of U.S. government agencies are looking at and collaborating on, whether it's Mike Kratzios in the Office of Science and Technology Policy in the White House, Commerce Department, Treasury Department, War Department.

25:30We look at it. We are concerned when we see allegations that China is distilling our models to use theirs. We know that this is something that's going on. We see that as a form of forced technology transfer or IP theft in a sense. We also know that they subsidize energy production that's going into their AI. We know that they are getting an unfair advantage in a lot of these ways. They're promoting certain types of open AI standards that make it actually really cheap for others to use them. And I think because we're in this emergent situation, I don't think we're necessarily against one type of standard or another.

26:08But I think we're taking a very close look at how China is propagating its AI development to make sure that our companies compete again on a level playing field. Ambassador, could you just clarify how you think our relationship with Canada stands right now, particularly with the USMCA, with that not being renewed for 16 years? Where would you say the state of things are between the two nations right now? Well, first of all, one thing to remember is we have always had trade issues with Canada. It's always been the most contentious part of our relationship across decades, whether it's with softwood lumber or, you know, 20, 30 years ago with trade in grains and pork across the borders.