Scott Bessent

There's a study from not a friend of the administration, the San Francisco Fed, with 150 years of data, I would refer everyone to that, that shows that tariffs do not cause inflation, that they're actually disinflationary.

So has anybody read that study?

David, before I answer that, another thing I want to go back to is President Trump

And one of the reasons for the success of the tariff policy, or I'll give you two reasons.

One is that President Trump has used them for national security.

So the tariff policy has become part of national security.

He was able to use the tariffs to negotiate trade deals.

When he ratcheted up some of the tariff levels to 35, 49, 50 percent, even 145 with the Chinese, it brings people to the table.

In the spring, the president put fentanyl tariffs on Mexico, Canada, China.

They've all come to the table to help and partner with the U.S.

government to end this scourge on our people.

We're seeing fentanyl deaths drop because of the good efforts of China.

we made a good faith move and decreased their fentanyl tariffs by half, down to 10%.

So that's been national security.

Same thing on October 8th, when Beijing announced that they were gonna put a worldwide export license on any,

any product that had 0.01% of Chinese rare earths in it, which would have ground the Western trading system to a halt, President Trump was able to threaten 100% tariff, and the Chinese immediately came to the table.

The other thing that I would say, so that's all national security.

The other thing that I would say that people missed that I was convinced of is that

The Chinese business model is based on volume.

It's based on employment.