Trump targets Huawei in latest executive order

Channel: Fox Business
Published: 3 hours ago

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Commerce Secretary Wilbur Ross on mounting concerns over Huawei, U.S. trade negotiations with China, steel and aluminum tariffs, USMCA and auto tariffs. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and ...



Transcript
Our top story is just that us trying to trade this half an hour. The president signed that executive order yesterday banning telecom gear from foreign adversaries targeting huawei and zte. This is the u. s. s. Trade negotiations with china are likely to resume soon. China reacting to the trade dispute cutting its us treasury holdings to the lowest level since 2017. Joining me right now in an exclu ...
ive interview, is commerce secretary wilbur ross. Mr. secretary thanks very much for joining us on an important day, the white house, putting huawei on notice, tell us the risks around fall way. Telecom. Well, as you know, we're moving into a 5g environment which will connect everything to everything, the so-calledinternet of things.

So, as everything becomes interconnected, it creates more risk, because if someone does something untoward to those systems, it could disrupt everything, so there is far way in this country already. Yes, many of the rural telecom carriers are already using huawei in the 4g environment and in order not to have them have to rip everything out, we'll be dealing with that separately, so that they will have to rip everything else. Well, that's that it was one of the issues that came up with secretary pompeo when he spoke with our friends in europe. They already have a highway infrastructure in place same with left for several countries in africa. What'S the administration's plan indealing with our friends across the world, knowing that they've got huawei telecom and probably will be spied on or espionage? Well, first of all we can't force countries to remove things from their system. We can only advise them. What we think are the dangers, what we are doing with the order that the commerce department put into effect yesterday, the entity listing u. s. technology will not be used in a way. That'S adverse. That'S the purpose of that order. Let me switch gears mister secretary asking about tariffs, because obviously this is front and center right now, a secretary manoosh in yesterday said that the administration is looking at delaying tariffs on steel and from mexico and canadawhere.

Do you stand on that? Well, it's not a question of delaying the tariffs are in effect with mexico and canada on steel and aluminum, and they have been for over a year now. So the question is: is there a substitute for the actual tariffs that will achieve the same end? Result of protecting our national security and continuing the tremendous boom in those industries in this country is there well we'll find out we're in negotiations with mexico and canada. There are plenty of ways that we could do it other than the exact one that we had. What we knocked, what the president is not prepared to do is just give back all the benefits: toamerican, steel and american aluminum. As you know, it's one of the great success stories of the administration, but do you need to lift those tariffs in order to get the usmc a deal passed and codified? Well, the mexican government already approved the labor parts of it which, from their point of view, were the most difficult parts. They did that, knowing that the tariffs were in effect and actually they signed, as did canada, the u. s. mca, also knowing that the tariffs were in effect, so we would be willing to try to accommodate them, provided we achieve the similar end result there. There is a deadline coming up in terms of auto tariffs, and this really istargeting, japan and europe. Are you going to delay those tariffs? Well, the auto tariff decision will be made on the 18th of may, which is over. This is very shortly now the president conduce any of several things, one he could impose them on some or all of the countries he could impose amount. He could decide that we've made enough progress in our direct negotiations with the various automakers abroad.

He could decide to let those negotiations continue for up to 180 days. I guess what i'm asking that mr. secretary is: is there a reassessing going on about these tariffs about you know putting tariffs on autos from from europe and japan about tariffs that are alreadyin place in mexico and canada, given the fight with china right well, those are Three separate issues: the auto thing is very important because if you look at our trade deficit about half of it is geographic in nature. That'S called china. The other half is a product by nature. That'S called automotive. If we don't deal with both china and automotive, we're not going to solve our trade deficit, but but it's more than trade right i mean you're talking about national security issues around china. Well, one way is a whole different situation. National security is different, but you were asking about the trade part and the trade part has those two main components. I asked specificallyabout these auto tariffs because we have an economy, that's obviously booming three and a quarter percent growth in the first quarter. A lot of people are worried that these tariffs are going to cut into growth. That was implemented as a result of your administration's policies.

Well remember: they were screaming the same thing when we put the steel and aluminum in and what happened, what happened was still an aluminum got revived. Those industries are booming. Steel alone has gotten 13 billion of capital expenditures as a result, and the employment, both in steel and aluminum themselves, and the downstream industries has gone up, did not go down, went up so these gloom and doom things are bypeople who are ideologically opposed to us. Taking a strong stand to defend america yeah, i understand, but the situation with china has worsened, they renege on all of us women. You don't think it's a no well. They renege on everything that hasn't worsened, because we've made a lot of progress in the negotiations. They then, for whatever reason, decided to backtrack, but even with that we're farther, along than we were before, and meanwhile the president convinced him they bought more soybeans during the negotiating period. They bought a lot of things, so i would not say that we're in worse shape, where we are, is down to the real core of it. Are we going to havestructural change in the chinese economy or not, if not he's we're just not going to do it? It'S not enough that they can buy us off with a few more soybeans a little bit more lng few more boeing plans. We need structural change and they would not agree to making it a law codifying a law putting it into chinese law that that stealing ip is against the law they wouldn't they wouldn't make that change. There was a whole series about six big structural changes. That'S one set of issues then there's another whole set of issues, enforcement and penalties yeah, because if you just have a written agreement, which is the way our trade agreements usedto be, but not a real enforcement mechanism, you don't have a very useful document right.

So so, given the fight with china, let me ask you again about all of these tariffs: tariffs on canada and mexico. Do you think they go away now that we need us mca past the conflating a couple of issues we are prepared to talk about other ways to protect these american steel and aluminum industries? There are lots of different ways to slice that they need to protect their borders against transshipment. That'S one issue. Another issue is we don't want to deal with a situation where our actions against steel and aluminum globally suddenly result in excess capacity in canada ormexico and doesn't solve anything. So we need protection against those certain things. Tariffs are one way to get it. There are other ways to get it, so the end result must be the same. Okay, the form can change and on the auto tariffs should we expect a delay in putting any tariffs in place on autos coming from japan and europe. Well, as i said, the president has a wide range of options which he will decide on by the 18th. The reason for the 18th that's the 270 days from when i've rendered to him the report, but he has a range of alternatives. He could delayed them or not just to lay them, but we couldsay the negotiations that ambassador nite ize are larry kudlow and i've had with the therapy and korean and japanese car people. He could allow more time for that secretary thanks very much for joining us.

We appreciate it will the wrong.


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