Commerce Secretary Wilbur Ross On Tariffs And Trade Policy | CNBC 

Wibur Ross was right about we pay the tariffs, he was lying about how must it will cost us.

President Trump is a master negotiator. It's about time that the United States did something about our massive trade deficits.

The look back of Wilbur Ross saying "insignificant costs to Americans." Looks more like this action was the trigger to inflation.

How thick is the US government! Not the faintest idea, Chevy GM import more cars than BMW to the US. BMW have a huge factory in the US. The lack of basic economic knowledge is really pathetic. Build better cars that’s why they don’t sell in the EU, you couldn’t give them away they are so poor. OMG a can of soup OMG what a tool!!!!! He literally thinks it’s 1950.

Thank You! Thank You! CNBC for letting Secretary Ross answer questions without being rudely cut off like others have done.

Ross Perot stated NAFTA would produce a sucking noise in 1990.

He knows his stuff and sharp

What Wilbur said @ 5:07 applies to everyone, you buy stuff from another entity because its the cheapest. Think about this, you buy a book from amazon for 20 dollars, you are in deficit with Amazon for 20 dollars. now you hate amazon, and support local, only to find the book cost 40 in the bookstore. the retail store is in a trade deficit with the factory. the consumers are in a trade defict with the retailer. Now you pay all those deficit so you can support you living standard, so that you can go to work and gain more salary (GDP in terms of country), and enjoy a better life. If you make everything you eat/use, you sure would not be in a deficit, but your net income would sure suffer. So a deficit is not a bad thing, a negative GDP growth is. Global economy is the way it is today, as money would flow to the most efficient direction. US is in a defict mainly due to two things, 1, China is the world's factory. 2. white people tends to spend and asians are savers. If you know any Chinese immigrants or people in mainland China, you would be amazed by how much of a percentage they would save.

Wilbur Ross killed it. Faber used to look sharp, seems to have lost it. I think he agrees with Ross, but has to try to play the tough guy. Ross is running circles around these idiots. It's true, if China needs soybeans, good luck finding them for a lower price and in the quantity they consume.

Problem: Ross makes a fundamental financial error here. He argues that since there is c1T of steel in a car and the price of steel is c$700 per ton then the tariff will cost $175. Resulting in a c0.5% cost increase in the car. Note that $175 is 0.5% of $35,000. The error is to assume that there is no cost of capital or cost of carry. The car manufacturers, auto dealers, insurers, banks etc all have to pay for the car with the cost of the tariff and need to generate an economic return from it. This multiplies the tariff by their cost of capital. Meanwhile any increase in price will logically lead to a decrease in demand requiring a widening of variable margins (ie prices need to go up) to ensure that companies are generating an economic return from their fixed assets. In other words the cost increase is way more than $175 on a $35K car.

Wilbur Ross' argument about the can of soup is ridiculous. IF the tariffs don't mean anything, why would they put them there in the first place? The tariffs are there to dampen the amount of foreign steel and aluminium are imported. That would spurn the countries affected to retaliate. i don't think Wilbur Ross understands how trade wars work. So, If the US puts a tariff on Canadian aluminium and steel, Canada will retaliate by putting tariffs on products that the US exports to Canada. He should be worried about other US industries being affected.

Anyway as I've said before these prices were higher. 2.6 pennies worth of steel is 6/10 at a 7/11 is $2.00. A can of Cova-Cola has 3 cents of aluminium in it. But that Coca-Cola at a grocery store is 2 for $1.00. How much Copper is in the pennies?

I am going to use this interview as a sleep inducer tonight.

No big deal for Campbell soups, 6/10 of cent, close to nothing, even less for Coca Cola. If that is so, why would Campbell or Coca Cola even look for a domestic supplier? They might as well stick with their current foreign supplier after the tariffs kicked in, doesn't make a difference. According to Wilbur Ross, the effect is negligible. Now, if that is true, would we believe that domestic steel and aluminum producers will build big new factories based on such negligible effect? The argument is flawed.

Why keep shipping steel half way around the world ?? Keep goods local when ever possible and save shipping energy losses!!

I can't believe what Ross just said! I NEVER thought I'd hear ANY government official talk that much sense! GO ROSS...GO TRUMP!

it all started in December 23, 2015 - "the date the global trade wars officially began" because that's when president Obama imposed a 266% tariff on Chinese cold-rolled steel imports which Beijing had been quietly dumping around the world, a consequence of China's attempt to overstimulate its economy (capex, capex, capex) starting in 2014.

1 ton of steel = $700.00 or so(according to Wilbur) +25% = $175.00 increase on 1 ton total 875.00 or so according to Wilbur Ross. 700 cars =700 tons x $175.00 = $122500.00 increase in manufacturing 700 cars. The American auto industry manufactures millions of cars per year and exports tens of thousands of cars. when all is added up Wilber should consider the increased cost to the global consumer who may start buying local from their countries auto manufacturer instead of paying the increased price passed on to the consumer because of a 25% increase tariff. Remember a great deal of auto manufacturing generates a lot of jobs. Is it worth the risk to crash the auto industry for a 25% tariff?

O...M...G! I NEVER thought I'd hear ANYONE in government say what this guy just said! THANK GOD we NOW have leadership working for the benefit of the COUNTRY and not JUST the benefit of the COUNTRY'S TOP .1%!!!!!

So glad Americans are being provided good jobs. Made in America by Americans! I really liked His illustrating with Soup and Soda can. Yes I agree President Trump is keeping a campaign promise.

Ross told CNBC on Friday that Campbell may be overstating the effect of the tariffs. "It is physically impossible that a few days of a tariff resulted in a $393 million loss. They are using [the tariffs] as a cover-up for other problems," he said. No like Campbell’s soup tastes like 🤮. Do they need someone to blame for the crappie 💩 soup

Tariffs on steel or aluminium cannot be targeted to a specific country unless the country of origin is known. China and Canada can both poduce steel, but a tariff on only Chinese produced steel requires knowing the country of origin when the product crosses our borders. What is Trump's plan to police the imports that are dumped into Canadian or Mexican markets but have an end point in the US? Is Trump negotiating a method that places the cost of assigning country of origin on Canada and Mexico? Or does he expect American businesses to figure that out? What happens to businesses that shop around for steel in any country both producing it or exporting what has been imported that can then be used for further manufacturing of products? How will dumping be controlled if the buyers want to use back door importation to lessen tariff costs on their purchases and then turn around and charge the higher price on American sales anyway? Who pays for the additional policing? What does that add to the bill? What does that do to our annual deficit? Tariff increases plus extra costs to police and collect equals what? Details, details, details. One cannot build a new factory without bricks. The total cost and the total savings must be arrived at by experts, not old men around a big table talking 6th grade economics. The lack of applicable, trustworthy samples is clearly noticeable. To use a one time purchase of a can of soup or beer is to look at the cost with the cheapest one time unit. Millions of cans of soup will increase now as an attempt to build increases into product costs (and skim a bit of extra profit at consumer expense) starts to show up in markets. A six pack of beer goes up by 15 cents on product costs alone. 15 cents extra on 1 million six packs adds $150,000 extra. Applied to 50 million six packs the extra costs to consumers is a total of seven and a half million dollars a year. The federal government collects the tariff as tax revenue. But the end user always pays the added costs. Tariffs are taxes. The importer pays the added tax and passes it on. And on. And on. Until the beer drinker pays it off. To have any credibility Ross must talk to consumers as thinking creatures with calculators. We want hard facts not another inept snow job.

Mr Ross has a collection of 25 works by a late Belgian painter valued at over 100m$. His attempt to relate to the common folk via Campbell’s Soup is quite Andy Warhol. But I’m not sure it was an honest effort at identifying the likely impact. However I’m 100 per cent in line against dumping.

So with that logic then a 50% tariff would be okay too. How about 100% then? It's only a penny.

Wilbur Ross is a brillant strategist and national treasure. Also he has proved himself as a very, very successful business man he is extremely mathematically literate.

I use to think he was a good businessman, he’s just looking old and out of touch now. Go sit down somewhere dude.

Time for U.S. to go back into making steel. We may need steel for war planes, ships, etc. 💘 from San Diego!

Consider the impact cost of infra structure development, not cars and cans. This is but one aspect of a huge scam being played out.

Agree 100% with Wilbur, current U.S account deficits are completely unsustainable. Don't let up on anyone telling you otherwise!

I like Ross he’s calm and gets to the point, Ross doesn’t instigating anything

We need to stand along side our President he's doing his best to make America great again and we need to fight with him!! #MakeAmericaGreatAgain #TrumpFor2020 #TheLiderOfTheWorld 🇺🇸🇺🇸🇺🇸

Commentors that are pro free trade agreements aren't from USA

It’s more about dependence security, then maybe you can breath deep enough to clear your heads and look at sustainable life.

The tax cut has left a huge revenue gap. The tariffs will generate needed tax revenue, while encouraging jobs and factories in the USA. All congressman and the news media complaining about the tariffs are bought and paid for by foreign countries. President Trump promised tariffs to help working Americans and he delivers.

FILTH TO HIS CORE!!

I support the trade war if the President goes that way, and I am a working stiff. Trump 2020.

Trump IMMEDIATELY stopped a "free trading Globalist" in his steps at a recent meeting when he told him "Steel and Aluminum non-free traders will just trans-ship their product through another country that does NOT have a tariff on THEIR Steel and Aluminum." That's WHY we MUST have an "across the board" tariff on these metals!

wilbur ross is as-smart as a box of rocks

Girders and rebar cost way more than a can of Campbell soup; bridges and buildings need lots of those. $1.99 for a can of soup? That is alot for canned soup! The Grim Reaper is wrong. wrong, wrong- and a very wealthy man. He could care less that our sky is falling!

No self respecting economist would ever propose tariffs as an answer. Remember how reasonable Alan Greenspan sounded in 2007. Lets hear some of his options . Wars, Tariff or otherwise never seem to work out. But it is good to hear that at least Mr Ross is worried " not a bit" .

This guy is a clown. Comparing material cost to msrp is ridiculous. The cost of 0.006$ on an alu pop can is actually not neglectable when the cost of product is 0.10$. There is actually a profit hit. The 0.40$ over is marketing cost, the 0.50$ is retailer shelf profit. When it comes to car its even worst. A Mazda frame crosses the Can-US border 7 times before it actually get finished. Many Boeing parts are made in Canada before being assembled in US. Open market is an enabler for US companies to make more profits by have the right job done at the right place (globally) by the right people (often cheaper). No the market did not overreact. Tariffs actually cut profits, thus EBIT, thus valuation of the company.

The legendary Wilbur Ross, ladies and gentlemen.

Lots of flaws in Wilber's arguments unfortunately.

Ross is right.

American mass manufacturing doesn't work if we alienate the world markets via tariffs. We need to bring jobs back to the US, yes, but we need to be more intelligent about the exact process of truly rebuilding the American dream. This might be an unpopular opinion but aluminum and steel will not save our productivity...something else will. This is a complex challenge, but I think the American people are up to the task of thinking long term and transcending the state of being a manufacturing company. The future is very much uncertain. You can choose to be scared or motivated...to see the USA's predicament as a problem or a grand opportunity. I'm definitely interested in how this trade-war plays out. -Float Circuit.

Hes assuming companies increase their prices always in proportion to their extra costs. In practise, this rarely happens. If a trade war begins, prices could escalate further as well. There are also many knock on effects that can happen. For example, the vehicles that deliver the cans may become more expensive , what do you think happens to the price of that can then? Given that the can is worth not a lot and whats in it is mainly water and sugar, why does it cost so much? Because the market cost is not in direct proportion to the material cost!

There are many other problems we need to solve, stop thinking as an individual nation. We are all under one nation of earth.

So, he goes and says: Other nations are bad for selling cheap steel, but its ok for us to be the cheapest soy - by his own admission - producer. Thats not a very reasonable stance to take. Trade is all about gvie and take, with every nation carving its own market. China just takes advantage of cheap US soy, while US companies use cheap steel bought off the world market. No one should find fault with that.

The EU has a 9% steel tariff and tried to raise it to 66% two years ago. America must respond in kind.

Reviving the metals industries is vital to our national defense. We need these tariffs to build our means of internal production for jobs, security and self preservation on the world stage. Countries have gotten decades of benefits of their U.S. subsidized economies and industries. It's time they tow their own way and we buy our own metal products from our workers and mines. We don't need China to buy our bonds, if we have a real economy again, we can pay our own way instead of borrowing back our own usurped profits.

Slowing down if your going in the wrong direction is a good thing

So let me ask all of you economic geniuses this. Why should we pay 25% on exporting cars to china and we only charge them 2.5%? Does that sound fair at all or seem like a decision that anyone doing business with another would make. We have outsourced everything and there will be some growing pains, but it's time to bring industry and jobs back to the US. Be proud of your country for once. BTW does anyone like using outsourced customer service? If we brought that back to the US would anyone have a problem with it? Think for a second people, you might pay a slightly higher rate for goods or services, but you'll end up with a better product and more people will be employed. Don't be stuck typing on typewriters people, open your mind a teeny tiny bit and lets move forward.

Wilbur Ross, he knows his trade... The market will balance back.. nothing to worry about

I remember having my lap top CONFISCATED at the airport in Taiwan! WHY?...They were afraid I would try to sell it to some local. And here's the kicker. The laptop was MADE in Taiwan...ONLY FOR EXPORT! Taiwan...China...Japan....Korea make NO BONES about their efforts to keep foreign made products OUT of their countries..and keep their OWN people from buying the JUNK... THEY make! But when it comes to EXPORTS...it's a NATIONAL priority to PUSH their OWN CRAP products on other countries!

Look at how big that can of coke is, they are not that big in Europe.

Build to replace the use of crude oil

I would suggest working with the states when it comes to working with American jobs. I would suspect that the defense department has to do with American Jobs. Since US troops are coming home, I would think that they would go to work in these jobs instead and fill the factories. Just saying.

Ross talks around what is important, so not to have to answer anything of substance. Really softball questions . I can see why him and Trump get along.

when I start asking myself "what does this guy Ross take me for?" I know he's a naive BSer

Wilber 80% Have you taken your medicine today

Well US steel exports just got cut off, Well that's OK paying 25% more, means more plastic in cars It means less bridges to be built as they cost too much. It means Wilbur can still have his coke and canned soup

You ppl attacking this man's old Elmer Fuddy Duddy mannerisms need to listen to what he's saying, even better check out him at the Davos Economic Forum, he's Brilliant in his simplicity. He had everyone of those so called Economic Geniuses speechless at that forum. Here's the link: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-zEachEU5Xns.html

THANK U WILBUR FOR BACKING MY PRESIDENT

A broken 🕒 is right twice a day... Certified produced Steel products from Canada & EU-- should be only 10%...

When they build this steel construction they did drink about 2000 can of coca so, we're talking about real little money, the cola will be only a bit bit more expansive. Meanwhile, does this genius knows that in the US they always print three times as much books as they needed? ...the rest is dumped in Europe. Not in England because they have a deal not to disturb the British market....except that the British don't sell in Europe because of the US book dumps. I accidental knows the situation for books, I guess the US is dumping many more things in other countries. So when the US is going to play this game, they might discover that there are several more players and rules..

my GM plant has rolls of steel stacked to the ceiling

It seems like yesterday.. I can still hear them shouting "Free trade Free trade" . LOLz - karma is a beach.

When someone is this boring, I usually trust that they know what they're talking about, lol.

If it doesn't mean anything then why do it?

Love me some Trump! Trump 2020!

Somebody put Wilbur back in his sarcophagus before the lights cause him to rot further.

A typical car has 950 pounds of steel costing $2,000.00 add 25% to make that $50.00

4 months later and this goof ball with the can of soup needs to explain the jobs we are losing and the lay offs.

soda n the 60's was 5 cents

times that 1 cent by 100 millions. now we care.

Very happy with Trump why not level the playing field, they pay a fair price we pay a fair price. It is just common sense.

Grandpa broke loose from the hospital and now believes he's a government employee

In the prisoners dilemma, we are no longer the "poor trusting fool!"

Love Ross and Trump! They are saving America and, in turn, the world. Ross tore the guts out of all the morons who oppose their America first program with pure logic.

Brexit was also going to be great for the British...

This old living corpse is very selective in his examples. This will affect manufacturers who buys steel and aluminium in bulk and make products with high steel and aluminium contents. retaliation tariffs may on luxury goods such as US alcohol. Tariff is socialism and anti-free market.

My favorite part was when he read off the provided Coca-Cola and soup can script. I'm sure he bought those at the local 7/11. Riiiiiiiiiight

is one trick to boost value and make easy money

Mexico should put a 25% tarrif on 🌽... It would help their local farmers.

If they’re trying to stop you it means it will work

One question though, I mean, does that calculation (of the projected cost increase) include transportation and the handling charges going into steels and aluminium? Does it matter?

Art of the Deal in action!

Wilber, get on the train. Go

He needs to go back to the nursing home!!! Too old!!!

Smart guy WR...net worth $700M! TAKE THAT losers! Rather have him than a Alinsky'd community organizer.

A giant in business and a force to be respected as secretary of commerce. Clear and thoughtful as always, secretary Ross!

Let the peasants know they will still be able to buy their canned soup and Coke.

Drain the Trump swamp!

Have Mr. Ross investments on steel industry?

I feel like his next sentence will be his last before he suddenly dozes into a speech-induced slumber.

Can you imagine listening to this guy in like an hour long seminar or meeting? Geez, shoot me now.

Rare earth metals.

Save your Pity for your self your going to need it ! Not sure what you do for a living and I don't care to know . On that note how many people have you help beside your self in your life ?Forgive me if Im out of line .It does not genius to insider tradeing when it's going on .PS you don't know me or my life time I have paid over 7.5 million in taxes and put back 15 million back to into my local economy over a 27 years and we picked up hafe of their health insurance .What have dun? So you know were you can put your Pity god bless you areand yourrs

The soup can is aluminum I think

wee not trump