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• 00:00President Trump signing an order just a few hours ago for a 25% tariff on auto imports taking effect next Wednesday. Let’s take a listen. What we’re going to be doing is a 25% tariff on all cars that are not made in the United States. If they’re made in the United States, is absolutely not. We start off with a two and a half percent base, which is what we were at, and we go to 25%. So Bloomberg senior editor Derek Wallbank joins us now along with our China correspondent. Derek, let’s start with you. What do we know so far when it comes to autos and pharma? Well, I think in the auto sector, the there’s a couple of key things that are worth noting. And one of those is that this doesn’t just apply to automobiles as fully assembled. It also applies to auto parts as well. That was something that was being very closely watched. Now, the details of how this is going to work, particularly within the context of the North American supply chain, is something that still is a little bit in the works. There are a lot of parts that are shipped between the U.S. and Canada, in the U.S. and Canada and Mexico and etc., back and forth and back and forth in the production of some of these vehicles. And so how that’s going to be treated as something to to see going forward. But you only have to look at the of the aftermarket impacts to GM and Ford and Stellantis and etc., to see. And then as well the the the Asian reaction to some of those carmakers to see the the effects on this. It’s going to be pronounced. This is look, Rebecca, this is a this is a clear test run in terms of what April 2nd May look like, April 3rd in in Asia. You know, there is going to be an awful lot of action across a whole range of of trade, relationships, countries, products, etc.. And look, we’ve been talking for a long time about whether people should take Donald Trump seriously or literally or whatever. I have long said he may not go as far as the most maximalist of threats, but he’s not going to do nothing either. And this 25% tariff on autos for two of the US’s closest trade partners is a really clear confirmation of that. Derrick, what have we heard from counterparts like the Canadians? Mark Carney, and have we also heard from the Europeans on this? Yeah. Ursula von der Linde came out and had comments. Mark kind of came out and had comments. They are what you would expect, disappointed, etc.. It remains to be seen exactly how there will be counterpunch, if there will be a counterpunch from from some of these places. Certainly the Canadians are working on options there. Doug for the premier of Ontario was talking about that as well. I think that there was some some question of what the U.S. would wind up doing if there were going to be loopholes, things like that. So we didn’t necessarily walking into this action. See, a lot of countries say, here’s exactly what we will do. It was something where they were going to see what the U.S. was going to do and then they were going to respond. That’s kind of where we are right now, awaiting the details of what those responses may be. But look, make make no mistake, there is going to be a massive amount of of complication, you know. David, you know, well, I’m I’m an adopted Michigander. I’ve lived, you know, close to that bridge connecting Detroit and and Michigan. And there’s a whole lot of commerce that flows over that. People, you know, who live in Windsor, Ontario, who work in Detroit and vice versa. Those two economies are as connected as any two international places on the map. And this is going to be a major, major complication in that relationship that is very, very intertwined. Derrick, thanks. And the other sort of big part of the conversation that we haven’t mentioned yet here is China, of course. And it does look like potentially there may be some reprieve that Donald Trump may offer some room for negotiation on tariffs, particularly to secure a deal. Yes, I think we are all very excited and waiting with bated breath to see what the final tariffs would look like and what that deal could be, because Trump is saying he’s willing to trade all those tariffs in exchange for getting Beijing support to sell Tick tock. And remember, that deadline is April 5th, which is the end of next week. So we’re counting down. Trump is saying he’s confident he will be able to secure the outline of a deal, and if not, he will be able to get another extension. Previously, the ticket was supposed to be divested in January, and at the last minute, Trump managed to get this extension by 90 days. And Trump said he has been speaking with four potential bidders. He didn’t name names, but we know that previously there had been groups of investors that had indicated their interest, including a group led by Frank McCourt, the billionaire. Also another group involving Mr. B’s, that YouTuber and Oracle could also throw its hat into the ring. But look, this week you have Steve Daines in Beijing saying that no trade talks could really begin unless China commits to stopping the flow of fentanyl earlier today. You have to me and the former managing managing director of IMF saying at a pool forum that China must be prepared for a trade war. So really hard to say how this negotiation will go. I guess we’ll have to wait for next week.