Cabot Phillips

And the White House says they are already in talks with a number of countries. We'll be keeping a very close eye on those negotiations this weekend. In the meantime, though, a new age of American trade policy is upon us.

And the White House says they are already in talks with a number of countries. We'll be keeping a very close eye on those negotiations this weekend. In the meantime, though, a new age of American trade policy is upon us.

Anytime.

Anytime.

Yeah, world leaders, investors, the business community, everyone has been holding their breath ahead of what Trump described as Liberation Day. And it did not disappoint. Speaking from the Rose Garden before an audience of lawmakers, small business owners, farmers and auto factory workers, the president kicked things off with a simple message.

Yeah, world leaders, investors, the business community, everyone has been holding their breath ahead of what Trump described as Liberation Day. And it did not disappoint. Speaking from the Rose Garden before an audience of lawmakers, small business owners, farmers and auto factory workers, the president kicked things off with a simple message.

So first, the U.S. will establish a minimum baseline tariff of 10% on all countries, regardless of what they charge now. From there, the president announced that rates will be reciprocal, aka will decide what to charge based on what other countries charge us. But according to Trump, the U.S. will be gracious. In his words, quote, kind reciprocal, not full reciprocal.

So first, the U.S. will establish a minimum baseline tariff of 10% on all countries, regardless of what they charge now. From there, the president announced that rates will be reciprocal, aka will decide what to charge based on what other countries charge us. But according to Trump, the U.S. will be gracious. In his words, quote, kind reciprocal, not full reciprocal.

In a truly just remarkable scene, the president held up a giant poster board displaying dozens of countries along with the exact rate that they'll now pay. Trump says that number was decided by adding up each country's tariffs, value-added taxes, and currency manipulation. That number was then divided by two, and the final rate was decided.

In a truly just remarkable scene, the president held up a giant poster board displaying dozens of countries along with the exact rate that they'll now pay. Trump says that number was decided by adding up each country's tariffs, value-added taxes, and currency manipulation. That number was then divided by two, and the final rate was decided.

For example, according to Trump, China's overall rate on U.S. imports is 67%, so they'll get 34%. The EU will face 20% rates. Japan, 24%. Australia, 10%. India, 26%. The list goes on. If you look at Switzerland, 61% to 31%. Indonesia, Malaysia, Cambodia. Oh, look at Cambodia, 97%.

For example, according to Trump, China's overall rate on U.S. imports is 67%, so they'll get 34%. The EU will face 20% rates. Japan, 24%. Australia, 10%. India, 26%. The list goes on. If you look at Switzerland, 61% to 31%. Indonesia, Malaysia, Cambodia. Oh, look at Cambodia, 97%.

And it was interesting. The president noted that while he views existing tariff discrepancies between the U.S. and trading partners as unfair, he did not blame those other countries for those policies.

And it was interesting. The president noted that while he views existing tariff discrepancies between the U.S. and trading partners as unfair, he did not blame those other countries for those policies.

Now, Trump devoted much of his address to the auto industry, saying foreign tariffs have driven American companies to outsource production, leaving our manufacturing base decimated. In an effort to bring back that auto production to the U.S., he announced additional 25% tariffs on all auto imports across the board. Following that move, he called Brian Panbacker, a United Auto worker, to the podium.

Now, Trump devoted much of his address to the auto industry, saying foreign tariffs have driven American companies to outsource production, leaving our manufacturing base decimated. In an effort to bring back that auto production to the U.S., he announced additional 25% tariffs on all auto imports across the board. Following that move, he called Brian Panbacker, a United Auto worker, to the podium.

Yeah, it's interesting. This plan marks not just a transformation of global trade, but also a political transformation. That was on full display yesterday. For decades, Republicans, at least the Reagan-style free market types, have loudly opposed tariffs. While it was Democrats who were the ones generally in favor. But Donald Trump has flipped things entirely.

Yeah, it's interesting. This plan marks not just a transformation of global trade, but also a political transformation. That was on full display yesterday. For decades, Republicans, at least the Reagan-style free market types, have loudly opposed tariffs. While it was Democrats who were the ones generally in favor. But Donald Trump has flipped things entirely.

As you can imagine, the left came out hard before and after yesterday's announcement. They argue tariffs are a tax on consumers and will only drive inflation higher. Minority leader Chuck Schumer, for example, said Trump was, quote, taking a sledgehammer to the U.S. economy. And he vowed to fight those tariffs tooth and nail. We'll have to see what exactly that fight from Democrats looks like.

As you can imagine, the left came out hard before and after yesterday's announcement. They argue tariffs are a tax on consumers and will only drive inflation higher. Minority leader Chuck Schumer, for example, said Trump was, quote, taking a sledgehammer to the U.S. economy. And he vowed to fight those tariffs tooth and nail. We'll have to see what exactly that fight from Democrats looks like.