>>> HELLO, EVERYONE.

WELCOME TO AMANPOUR AND COMPANY.

HERE'S WHAT'S COMING UP.

>>> THE CHANCELLOR MEETS TRUMP AT A TIME OF DEEP TENSION BETWEEN GERMANY AND THE U.S. >>> TRUMP RINGS BACK A TRAVEL BAN BRINGING CITIZENS OF 12 COUNTRIES ON THE DO NOT ENTER LIST.

WE WILL GET THE DETAILS FROM THE WHITE HOUSE.

>>> THE HAVES AND THE HAVE YACHTS.

THE AUTHOR JOINS ME INTO A DEEP DIVE OF THE SUPER RICH.

>>> TRACKING THE IMPACT OF TRUMP TARIFFS .

WHAT CHANGES ARE SEEN IN THE GLOBAL SUPPLY CHAIN.

>>> AMANPOUR AND COMPANY IS MADE POSSIBLE IN PART BY THE ANDERSON FAMILY ENDOWMENT, JIM ATTWOOD AND LESLIE WILLIAMS, CANDACE KING WEIR, SYLVIA A.

AND SIMON B. POYTA PROGRAMMING ENDOWMENT TO FIGHT ANTISEMITISM , LEILA AND MICKEY STRAUS FAMILY CHARITABLE TRUST, MARK J. BLECHNER, FILOMEN M. D'AGOSTINO FOUNDATION, SETON J. MELVIN.

THE PETER G. PETERSON AND JOAN GANZ COONEY FUND , CHARLES ROSENBLUM, KOO AND PATRICIA YUEN , COMMITTED TO BRIDGING CULTURAL DIFFERENCES IN OUR COMMUNITIES.

BARBARA HOPE ZUCKERBERG, JEFFREY KATZ AND BETH ROGERS , AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU.

THANK YOU.

>>> WELCOME TO THE PROGRAM, EVERYONE.

>>> IT HAS BECOME A RITE OF PASSAGE FOR WORLD LEADERS.

PRESIDENT TRUMP.

TODAY IT WAS THE TURN OF THE RELATIVELY NEW CHANCELLOR OF GERMANY, MERZ.

>> I'VE BEEN DEALING WITH THE CHANCELLOR, A VERY GOOD MAN TO DEAL WITH.

HE'S DIFFICULT, I WOULD SAY.

YOU WOULD NOT WANT ME TO SAY YOU ARE EASY.

HE IS A VERY GREAT REPRESENTATIVE OF GERMANY.

ALL WE WANT IS TO HAVE A GOOD RELATIONSHIP.

>> THERE ARE AREAS OF SERIOUS TENSION.

GERMANY IS THE FOCAL POINT FOR MUCH OF TRUMP'S IR FOR EUROPE.

ALSO ON THE AGENDA IS UKRAINE.

BERLIN IS A STRONG SUPPORTER.

TO THIS, FRIEDRICH MERZ IS FACING A WHITE HOUSE THAT OPENLY BACKED HIS FAR-OFF RIVALS.

VICE PRESIDENT J.D.

VANCE CAME TO THE MUNICH SECURITY CONFERENCE IN FEBRUARY POLITICAL ESTABLISHMENT FOR WHAT HE REGARDED AS A LACK OF FREE SPEECH.

JOINING ME NOW IS NORBERT REDKEN.

THANK YOU SO MUCH FOR TAKING THE TIME.

A LOT OF NERVOUSNESS FOR WORLD LEADERS BOTH FRIEND AND PERHAPS THOSE WITH ICIER RELATIONSHIPS WITH THE UNITED STATES AND PRESIDENT TRUMP GIVEN THE OUTCOMES WE HAVE SEEN OF SOME OF THE MOST RECENT EXCHANGES.

WHAT DID YOU MAKE OF TODAY'S?

>> I ADMIT, EVERYBODY WAS ON TENDER HOOKS REGARDING THE MEETING.

NOW EVERYBODY CAN SAY THIS WAS A REALLY GOOD MEETING .

PARTICULARLY THE ATMOSPHERE.

IT WAS A REALLY POSITIVE ATMOSPHERE .

IT WAS A DISTINCT ATMOSPHERE OF FRIENDLINESS AND FRIENDSHIP .

I WOULD SAY FROM BOTH SIDES, PERHAPS PARTICULARLY FOR THE PRESIDENT IT ALSO FOR CHANCELLOR MERZ, PERSONAL RELATIONSHIPS MATTER.

I WOULD SAY THIS WAS A GREAT START OF A PERSONAL RELATIONSHIP WHICH WILL BECOME IMPORTANT FOR THE STATE TO STATE RELATIONSHIP AND OUR PARTNERSHIP WHICH HAS BECOME SO IMPORTANT AND WILL REMAIN IMPORTANT IN THE FUTURE.

>> IT WAS OBVIOUS THERE WAS MUTUAL RESPECT AND ADMIRATION BETWEEN THESE TWO MEN.

NOTABLE BECAUSE WHILE THEY HAVE SPOKEN ON THE PHONE THEY DON'T HAVE A HISTORY WITH EACH OTHER LIKE OTHER EUROPEAN LEADERS TO HAVE WITH PRESIDENT TRUMP.

WHAT WERE SOME OF THE TOP AGENDA ITEMS FOR THE CHANCELLOR GOING INTO THIS MEETING?

AT LEAST FROM WHAT WE SAW BEFORE CAMERAS, DO YOU THINK HE MADE A POINT TO ADDRESS THEM ALL?

>> I THINK HE PARTICULARLY ADDRESSED THE MOST IMPORTANT AND PRESSING ISSUE AND THIS IS THE FACT THAT THE LAND WERE OF PAST CENTURIES HAS RETURNED TO EUROPE.

THE WAR OF RUSSIA AGAINST UKRAINE.

IT IS OUR DETERMINATION AND OBLIGATION THAT WE TOGETHER MAKE THIS WAR A FAILURE IN ORDER TO AND AGAIN WERE FROM EUROPE.

HE ADDRESSED THAT IN THE CHANCELLOR WAS VERY CLEAR IN HIS ASSESSMENT WHO WAS THE RESPONSIBLE FOR THE WAR, ABOUT THE BRUTALITY AND ILLEGALITY OF THIS WAR.

HE MADE IT IN A CLEAR, DISTINCT WAY.

I WOULD SAY THIS IS VERY IMPORTANT.

IT CONTRIBUTED TO THE POLITICAL SUBSTANCE OF THE CONVERSATION.

IT WAS NOT JUST SMALL TALK AND HAVING A GOOD ATMOSPHERE.

HE CONTRIBUTED POLITICALLY REGARDING THIS MOST IMPORTANT ISSUE AND CHALLENGE.

>> I WAS STRUCK, I HAVE TO SAY, I HAVE DETERMINED TO THE CHANCELLOR WAS ON PUTTING BLAME SOLELY ON VLADIMIR PUTIN FOR THE START OF THE WAR AND THE FACT IT IS IN ITS THIRD YEAR AND HOW BRUTAL THE WAR IS.

WE'VE HAD PREVIOUS EUROPEAN ALLIES AND LEADERS WHO HAVE TRIED TO SAY THAT THEY SHARE THE CHANCELLOR'S VIEWS BUT COME TO THE WHITE HOUSE TRYING TO STAY ON POINT WITH PRESIDENT TRUMP'S LANGUAGE HIM THAT IS WE JUST WANT TO SEE IT COME TO AN END.

WITH THIS ANALOGY THAT PRESIDENT TRUMP MADE WHEN ASKED ABOUT THE STATE OF THE WAR.

>> SOMETIMES YOU SEE TWO YOUNG CHILDREN FIGHTING LIKE CRAZY.

THEY HATE EACH OTHER AND THEY ARE FIGHTING IN A PARK .

YOU TRY TO PULL THEM APART.

SOMETIMES YOU ARE BETTER OFF LETTING THEM FIGHT FOR A WHILE AND THEN PULLING THEM APART.

I GAVE THAT ANALOGY TO PUTIN YESTERDAY.

I SAID, PRESIDENT, MAYBE YOU FIGHTING AND SUFFERING A LOT BECAUSE BOTH SIDES ARE SUFFERING, BEFORE THEY ARE ABLE TO BE PULLED APART.

>> WHAT DID YOU MAKE OF THAT ANALOGY BY PRESIDENT TRUMP?

DID YOU FIND IT APPROPRIATE?

OBVIOUSLY THE RESPONSE FROM THE CHANCELLOR WAS CLEAR TO PUT THE BLAME SOLELY ON PRESIDENT PUTIN.

>> YES.

I WOULD SAY THIS MADE THIS MEETING SO CONVINCING AND IMPORTANT BECAUSE THE CHANCELLOR ANSWERED IN A VERY FRIENDLY WAY, BUT HE DID NOT SHY AWAY FROM BEING CLEAR ON SUBSTANCE.

HE PUT THE BLAME CLEARLY ON RUSSIA THAT IS TARGETING CIVILIAN TARGETS IN UKRAINE.

HE ACCUSED RUSSIA RIGHTLY OF KIDNAPPING CHILDREN, BRINGING HE WAS VERY CLEAR ON THAT.

HE DID IT IN A FRIENDLY BUT FRANK WAY.

THIS REALLY WAS A VERY GOOD STYLE AND IT SHOWED HIS PERSONALITY AND THE POLITICAL MISSION HE HAS BRING INTO THIS PARTNERSHIP.

I WOULD SAY THIS FRANKNESS AND CLARITY AND FRIENDLINESS WAS VERY CONVINCING MIXTURE THE CHANCELLOR BROUGHT TO THIS MEETING.

>> THERE WAS A MOMENT WHERE PRESIDENT TRUMP DESCRIBED SATELLITE IMAGES THAT HE AND I WOULD IMAGINE WESTERN LEADERS HAVE BEEN PRIVY TO AND JUST HOW GRUESOME THEY ARE ON THE BATTLEFIELD.

IT WAS THE CHANCELLOR WHO QUICKLY TURNED AROUND AND SAID, THESE ARE THE TACTICS OF VLADIMIR PUTIN AND VLADIMIR PUTIN ONLY.

UKRAINE DOES NOT USE THEIR WEAPONRY TO TARGET CIVILIANS.

THAT WAS AN INTERESTING AND POIGNANT STATEMENT GIVEN THAT GERMANY UNDER THIS NEW CHANCELLOR IS DETERMINED TO CONTINUE TO SUPPORT UKRAINE.

ON THE ISSUE OF DEFENSE SPENDING HE HAS ALSO SAID GERMANY IS PLEDGING TO INCREASE TO 3 1/2% OF GDP OF THEIR MILITARY SPENDING.

OBVIOUSLY SAYING THEY ULTIMATELY NEED TO GET --ALL NATO ALLIES NEED TO GET TO 5%.

IS THAT A REALISTIC GOAL FROM GERMANY'S PERSPECTIVE GIVEN ALL THE ECONOMIC CHALLENGES THE COUNTRY IS FACING?

>> WE ARE CONVINCED AND THE ENTIRE NEW GOVERNMENT IS CONVINCED THAT IT IS REALISTIC BECAUSE THE THREAT WE ARE FACING FROM RUSSIA , WHICH GOES BEYOND UKRAINE, ISRAEL AND REALISTIC.

WE HAVE UNDERSTOOD THE NEW SITUATION.

WE HAVE UNDERSTOOD THAT GERMANY AND EUROPE HAVE TO BECOME AN IMPORTANT AND MAJOR EUROPEAN SECURITY POWER.

WHILE WE WANT AMERICA TO REMAIN A EUROPEAN SECURITY POWER , SO WE HAVE TO MASSIVELY INCREASED DEFENSE SPENDING BECAUSE THERE IS A MASSIVE FUNDAMENTAL THREAT.

RUSSIA IS REARMING AND REORGANIZING ITS ARMY WAY BEYOND ONLY WAGING WAR IN UKRAINE.

WE ARE PREPARING FOR ADDITIONAL CAPACITIES OF RUSSIA TO EVEN ATTACK A MEMBER STATE IN ONLY A FEW YEARS TIME.

WE HAVE UNDERSTOOD NOW THE SERIOUSNESS OF THIS THREAT.

WE ARE PREPARING TO DEFEND IT .

WE HAVE TO INCREASE DETERRENCE IN ORDER TO AVOID WAR AND ATTACKS COMING FROM RUSSIA.

>> IS THAT ASSESSMENT SHARED BY PRESIDENT TRUMP ESPECIALLY WHEN YOU HEAR HIM DESCRIBE WHAT HE SEES AS A PERSONAL ANIMOSITY BETWEEN PRESIDENT PUTIN AND JUST MAY NEED TO FIGHT THIS OUT LIKE SCHOOLCHILDREN DO AND MAYBE THE BEST REMEDY IS TO LET THEM TAKE IT A BIT FURTHER.

THAT IS NOT HOW THE REST OF THE WORLD OR MUCH OF NATO ALLIES SEE WHERE PUTIN IS GOING HERE.

DO YOU WORRY THAT PERHAPS PRESIDENT TRUMP IS NOT ON BOARD WITH SOME OF YOUR CONCERNS?

>> I WOULD SAY FRANKNESS IS A NECESSARY ELEMENT IN THE PARTNERSHIP.

THERE HAVE BEEN DIFFERENT VIEWS.

A MAJOR OBJECTIVE OF EUROPEAN DIPLOMACY IS TO KEEP AMERICA AS AN IMPORTANT CONTRIBUTOR, REMAINING IMPORTANT CONTRIBUTOR TO EUROPEAN SECURITY ON BOARD.

THIS PRESUPPOSES THAT THE EUROPEANS HAVE TO INCREASE OUR CREDIBILITY AND CONTRIBUTING TO EUROPEAN SECURITY.

YES, WE SEE DIFFERENT APPROACHES BUT WE SEE ALSO AND CAN OBSERVE THAT MORE AND MORE THERE IS INCREASING EVIDENCE THAT PUTIN IS DEFINITELY NOT INTERESTED IN ANYTHING THE AMERICAN PRESIDENT WANTS TO DO , WHICH IS TO BE READY FOR NEGOTIATION, TO BE READY FOR PEACE.

PUTIN IS READY FOR WAR AND HE'S DETERMINED TO CONTINUE THE WAR.

HE'S DETERMINED TO REESTABLISH AGAIN A RUSSIAN EMPIRE IN EUROPE.

I WOULD SAY IT'S INCREASING EVIDENCE ALSO FOR THE PRESIDENT THAT THIS IS THE REAL INTENTION OF PUTIN.

SO I AM QUITE OPTIMISTIC THAT MORE AND MORE THE EUROPEAN AND AMERICAN APPROACH VIS-Ã -VIS THE WAR OF PUTIN AND RUSSIA AGAINST UKRAINE THAT OUR APPROACHES MORE AND MORE ALIGNING AND THAT WE ARE LEARNING AGAIN THAT UNITY IS THE CORE STRENGTH, HAS BEEN THE CORE STRENGTH AND WILL BE THE CORE STRENGTH OF THE WEST.

I AM QUITE OPTIMISTIC ABOUT THE FUTURE.

>> I AM SURPRISED THAT IT SHOULD NOT COME UP IN THE 40 MINUTE PRESS CONFERENCE IS THE TARIFF POLICIES RIGHT NOW.

THE UNITED STATES HAS AN IMPENDING 50% TARIFF ON EU IMPORTS.

THIS IS CLEARLY AN ISSUE THAT IS GOING TO BE RAISED DURING THEIR PRIVATE CONVERSATION RIGHT NOW.

I AM JUST WONDERING HOW CAN CHANCELLOR MERZ BEST NEGOTIATE AGAINST THESE TARIFFS .

IF THEY ARE IN FACT IMPOSED HOW IS GERMANY PREPARED TO RESPOND?

>> FIRSTLY I HAVE TO SAY AND ADMIT YOU ARE RIGHT.

THERE IS A DISAGREEMENT.

I WOULD EVEN DESCRIBE IT AS FUNDAMENTAL.

ONE OF THE MOST BEAUTIFUL WORDS IN THE ENGLISH LANGUAGE FROM THE PERSPECTIVE OF THE PRESIDENT IS TARIFFS .

WE CONSIDER ONE OF THE MOST BEAUTIFUL WORDS OF THE ENGLISH LANGUAGE, FREE TRADE .

ECONOMIC FREEDOM.

WE ARE CONVINCED IT BENEFITS THE PEOPLE, BUSINESS, AND THE ENTIRE ECONOMY.

AND THE U.S. FOR GERMANY IS THE MOST IMPORTANT, THE BIGGEST TRADING PARTNER OUTSIDE OF THE EUROPEAN UNION.

I WOULD BE CAUTIOUS AND I WOULD SAY THAT GERMANY HAS AN INTEREST TO AVOID ANY KIND OF SPIRIT OF TARIFFS AND CANADA TARIFFS AND RETALIATION AND SO ON.

I WOULD ARGUE THAT WE GIVE THIS A BIT OF TIME.

I WOULD SAY WE HAVE STRONG ECONOMIC AND HISTORIC EVIDENCE ON OUR SIDE FOR OUR VIEW .

I WOULD SAY INCREASINGLY IT IS AMERICAN, THE TRUMP APPROACH ON TARIFFS IS NOT WORKING WELL FOR THE AMERICAN CONSUMER, FOR THE AMERICAN INDUSTRY, THE TREASURY MARKET IS RESPONDING TO THAT.

I WOULD SAY OVER A SHORTER PERIOD OF TIME IT WILL TURN OUT THAT THIS IS NOT AN APPROACH, THE TRUMP APPROACH ON TARIFFS, THAT IS BENEFITING THE AMERICAN PEOPLE AND THE ECONOMY.

IT IS BY THAT AND FOR THAT REASON I WOULD SAY NOT A SUSTAINABLE PATH POLITICALLY.

>> IT WAS INTERESTING TO HEAR CHANCELLOR MERZ WAS UNDER A DIFFERENT PRESIDENT , PRESIDENT REAGAN WHO WAS AN ADVOCATE OF FREE TRADE.

WE WILL SEE WHERE THOSE NEGOTIATIONS GO.

NORBERT ROTTGEN, THANK YOU SO MUCH.

>> THANK YOU FOR HAVING ME.

>>> PRESIDENT TRUMP IS BRINGING BACK A TRAVEL BAN.

HE SIGNED A PROCLAMATION TO BAR SEVERAL COUNTRIES FROM ENTERING THE U.S.

CITING SECURITY RISKS.

IT WILL FULLY RESTRICT ENTRY FROM 12 COUNTRIES INCLUDING AFGHANISTAN AND CHAD.

SEVERAL OTHERS FACE PARTIAL RESTRICTIONS.

HE ORDERED HIS ATTORNEY GENERAL AND WHITE HOUSE COUNSEL TO INVESTIGATE PRESIDENT BIDEN AND HIS TEAM EXPLAIN WHETHER SOME OF HIS ACTIONS WERE LEGALLY INVALID BECAUSE THEY WERE DONE WITHOUT HIS KNOWLEDGE.

THE FORMER PRESIDENT CALLED THAT RIDICULOUS AND FALSE.

KEVIN HAS MORE ON THIS.

THIS IS THE SKEPTICISM NOW AND THE MOUNTING SCANDAL CREATED BY THIS WHITE HOUSE ABOUT WHETHER OR NOT PRESIDENT BIDEN WAS OF SOUND MIND WHEN HE WAS IN OFFICE AND HOW OFTEN HE USED THE SO- CALLED AUTO PEN.

TO QUOTE PRESIDENT TRUMP HE SAID IT IS THE SCANDAL OF THE DECADE OR MANY MANY YEARS OR THE CENTURY HOWEVER HE DESCRIBED IT.

WHAT IS BEHIND THIS WE HEARD FROM PRESIDENT BIDEN BRIEFLY RESPOND TO IT.

HOW ARE OTHER REPUBLICAN RESPONDING?

>> WE SHOULD SAY BIDEN'S RESPONSE WAS PRETTY CLEAR.

HE SAID HE WAS IN CHARGE.

NO ONE WAS MAKING DECISIONS FOR HIM.

IT IS CLEAR PRESIDENT TRUMP IS VERY INTERESTED IN INJECTING THIS DIRECTLY INTO THE POLITICAL BLOODSTREAM.

YOU SAW HIM IN THE OVAL OFFICE ESSENTIALLY SEARCHING AROUND AS REPORTERS LOOKING FOR SOMEONE TO ASK HIM A QUESTION ABOUT THE AUTO PEN WHICH IS ONE PART OF THIS PROCLAMATION HE SIGNED LAST EVENING.

THE AUTO PEN IS A MACHINE THAT SIGNS DOCUMENTS ON BEHALF OF THE PRESIDENT OR OTHER POLITICIANS.

WE SHOULD SAY THE JUSTICE DEPARTMENT HAS SAID THAT THE AUTO PEN CARRIES THE FULL WEIGHT OF THE PRESIDENT 'S SIGNATURE.

IT'S A DECISION THEY MADE IN 2005 DURING THE GEORGE W. BUSH CLEARLY PRESIDENT TRUMP IS VERY INTERESTED IN FANNING WHAT IS ESSENTIALLY A CONSPIRACY THEORY THAT AIDS TO PRESIDENT BIDEN BECAUSE HE WAS NOT OF SOUND MIND WHEN MAKING DECISIONS FOR HIM AND SIGNING DOCUMENTS ON HIS BEHALF USING THIS MACHINE.

WE SHOULD SAY CERTAINLY DOCUMENTS WERE PROBABLY SIGNED DURING THE BIDEN ADMINISTRATION USING AN AUTO PEN, BUT THERE IS NO EVIDENCE PRESIDENT BIDEN WAS NOT AWARE.

THE PROCLAMATION WHAT PRESIDENT TRUMP SIGNED DOES IS ORDER HIS JUSTICE DEPARTMENT, ATTORNEY GENERAL AND WHITE HOUSE COUNSEL'S OFFICE TO INVESTIGATE WHETHER, FOR EXAMPLE, PARDONS OR COMMUTATIONS WERE DONE WITHOUT THE PRESIDENT'S KNOWLEDGE.

IT ALSO DIRECTS THEM TO INVESTIGATE WHETHER THERE WERE PEOPLE AROUND PRESIDENT BIDEN WHO CONSPIRED TO SHIELD FROM THE PUBLIC THE PRESIDENTS CONDITION.

WE DO KNOW PRESIDENT BIDEN DETERIORATED IN THE FINAL YEARS OF HIS PRESIDENCY.

WE ATE --HE AGED.

WE SAW THAT ON FULL DISPLAY IN THE DEBATE WITH DONALD TRUMP THAT LED TO HIM DROPPING OUT OF THE RACE.

THE BIDEN ADVISORS AND PRESIDENT BIDEN HIMSELF HAVE SAID THERE WAS NO COVER-UP.

THERE WAS NO CONSPIRACY TO CONCEAL WHAT THE PRESIDENT WAS DOING AND THE PRESIDENT'S CONDITION IN THE FINAL MONTHS AND YEARS OF HIS PRESIDENCY.

>> WHEN ASKED IF THERE WERE SPECIFIC PROCLAMATIONS OR DOCUMENTS HE'S AWARE OF OUR HAS EVIDENCE OF THAT PRESIDENT DIED IN SIGNED --BIDEN SIGNS NOT BEEN AND SOUND MIND HE DID NOT HAVE AN ANSWER.

HE JUST CALLED IT A HUGE SCANDAL.

THE QUESTION ABOUT EXECUTIVE ORDERS AND THE TRAVEL BAN.

WE SAW A SIMILAR TRAVEL BAN PUT IN PLACE DURING HIS FIRST DAYS IN HIS FIRST TERM.

THAT WAS QUICKLY OVERTURNED BY THE COURTS.

WHAT IS DIFFERENT THIS TIME?

>> I THINK IT IS CLEAR THAT HIS ADVISORS HAVE LEARNED FROM MATTIX AUDIENCE.

YOU REMEMBER HE PUT IT INTO PLACE VERY EARLY IN HIS FIRST TERM.

IT CREATED CHAOS AND CONFUSION AND WAS ALMOST IMMEDIATELY CHALLENGED IN COURTS.

EVENTUALLY HIS ADVISORS WENT THROUGH MULTIPLE VERSIONS.

FINALLY, A THIRD VERSION WAS UPHELD BY THE SUPREME COURT IN PART BECAUSE THEY STRENGTHENED THE JUSTIFICATION BEHIND THE SELECTION OF THE COUNTRIES WERE TARGETED SAYING THESE COUNTRIES WERE NOT SHARING ENOUGH INFORMATION WITH THE U.S. ABOUT PEOPLE WHO WERE COMING INTO THE UNITED STATES, WHICH IS THE SAME JUSTIFICATION THEY ARE USING THIS TIME AROUND.

WHEN YOU TALK TO LEGAL EXPERTS THEY DO SAY THE SUPREME COURT EVENTUAL DECISION IN 2018 TO UPHOLD THE THIRD VERSION OF THE TRAVEL BAN WILL MAKE IT HARDER FOR CHALLENGERS TO COME TO COURT THIS TIME AROUND.

THE WHITE HOUSE AND PRESIDENT TRUMP SAYING THEY HAVE SELECTED THE LIST OF 12 COUNTRIES BECAUSE THEY HAVE NOT RECEIVED ASSURANCES THAT THERE IS PROPER VETTING IN PLACE.

THEY DON'T FEEL AS IF THESE COUNTRIES HAVE A GOOD ENOUGH IDEA OF WHO IS COMING TO THE UNITED STATES.

THERE ARE CERTAIN CARVEOUTS TO THIS.

MOST NOTABLY FOR ATHLETES COMING FOR THE WORLD CUP AND THE OLYMPICS WHICH WILL BE OCCURRING OVER THE NEXT COUPLE OF YEARS.

I THINK IT IS EVIDENT THAT EVEN IF THE TRAVEL BAN DOES RESEMBLE IN A LOT OF WAYS WHAT THE PRESIDENT DID HIS FIRST TIME AROUND, THE PRESIDENT AND HIS TEAM ARE TRYING TO SHOW THEIR WORK IN A WAY THAT WILL BE UPHELD IN THE COURTS.

FOR EXAMPLE, THE PRESIDENT ON HIS FIRST DAY IN OFFICE SIGNED AN EXECUTIVE ORDER DIRECTING THE SECRETARY OF STATE, JUSTICE DEPARTMENT, DEPARTMENT OF HOMELAND SECURITY TO GO THROUGH AND LOOK AT THESE COUNTRIES AND COME UP WITH A LIST OF COUNTRIES THAT DID NOT PROVIDE THE PROPER AMOUNT OF VETTING.

THAT AMOUNT OF WORK WAS FOR A LEGAL REASON AND WILL MAKE IT GOING FORWARD.

>> WE CAN EXPECT IT WILL BE CHALLENGED.

WE WILL SEE HOW IT GOES.

>>> THE NEXT GUEST IS PLACED TO DISCUSSED ALL OF THIS AND MORE INCLUDING THE VERY PUBLIC BREAKUP IT APPEARS BETWEEN PRESIDENT TRUMP AND ELON MUSK.

THE AUTHOR OF THE BEYOND GRAFFITI --BIOGRAPHY OF PRESIDENT BIDEN WROTE THIS BOOK ABOUT THE SUPER RICH.

THE HAVES AND HAVE-YACHTS.

LET'S START WITH THIS LONG- AWAITED CONVERSATION BETWEEN PRESIDENT TRUMP AND PRESIDENT XI FINALLY TAKING PLACE.

IT'S IMPORTANT TO NOTE THAT THEY MADE CLEAR THAT THIS COMES AT PRESIDENT TRUMP'S REQUEST.

THIS COMES AS THEY RELATE TO UNITED STATES AND CHINA HAVE REALLY RATCHETED UP OVER THE LAST FEW DAYS.

THE PRESIDENT SAYING THAT CHINA HAS WALKED AWAY FROM SOME OF THE COMMITMENTS THEY MADE THAT LED TO THE POLLS.

THE PRESIDENT SAYING THIS CALL RESULTED IN A VERY POSITIVE CONCLUSION FOR BOTH COUNTRIES.

STUDENT VISAS APPEAR TO BE REINSTATED.

WHEN ASKED TODAY IN THE OVAL OFFICE HE SAID HE LOVES CHINESE STUDENTS AND WELCOMES THEM NOW.

HE SAID THE TALKS WOULD OCCUR SOON BETWEEN THEIR ECONOMIC TEAMS AND THAT PRESIDENT XI AND PRESIDENT TRUMP BOTH OF INVITED EACH OTHER TO THEIR RESPECTIVE COUNTRIES FOR A STATE VISIT.

WHAT YOU MAKE OF THIS?

>> THIS IS THE FIRST WARM INDICATOR OF ANY PROGRESS IN THE RELATIONSHIP IN A VERY LONG TIME.

FOR BROADER CONTEXT AS YOU KNOW THE U.S. -CHINA RELATIONSHIP HAS SUNK TO ITS LOWEST POINT IN THE U.S. AND CHINA BEGAN TALKING WHEN HENRY KISSINGER WENT OVER THERE.

IT IS NOW AT THE POINT WHERE AS THE CHINESE EMBASSY STATEMENT INDICATED THEY WERE WAITING THIS OUT.

THEY WERE WAITING UNTIL THE TRUMP ADMINISTRATION THAT INTRODUCED THE TARIFFS AND PRECIPITATED THIS WAR THEY WERE WAITING FOR HIM TO SAY PLEASE, LET'S GET ON THE PHONE.

THERE WAS AN AWKWARD MOMENT YOU WILL REMEMBER WHEN THE ADMINISTRATIONS SAID THEY WERE IN TALKS WITH THE CHINESE AND THE CHINESE SAID, NO THERE WERE NO TALKS GOING ON.

I THINK IT IS PROGRESS.

IT'S WORTH NOTING THAT THERE IS GOING TO BE TROUBLE AHEAD.

EVEN THOUGH THEY ARE AT THE BEGINNING OF A CONVERSATION, THE UNDERLYING FACTS REMAIN WHAT THEY ARE WHICH IS TO SAY THE UNITED STATES IS HOPING AND CAN --EXPECTING THAT CHINA WILL MAKE CONCESSIONS .

CHINA HAS A UNIQUE POSITION THAT GOES LINE OR ANOTHER.

THEY WILL NOT MAKE CONCESSIONS THEY THINK WOULD TIP THE SCALES ON A CONFRONTATION THAT MAY LAST FOR DECADES TO COME.

>> LET ME MOVE ON TO THE AUTO PEN SCANDAL AS WE WILL DESCRIBE IT.

PRESIDENT TRUMP REALLY HOPING TO BE ASKED ABOUT THAT, WHAT HE CALLS THE SCANDAL OF THE CENTURY.

AS SOMEONE WHO HAS REPORTED EXTENSIVELY ON JOE BIDEN, IT IS FAIR TO SAY THAT HE DETERIORATED BOTH PHYSICALLY AND MENTALLY OVER THE LAST FEW YEARS.

A LOT OF THIS INFORMATION COMING TO LIGHT IN NEW REPORTING.

LOOKING BACK WAS THERE ANYTHING THAT YOU PERHAPS OVERLOOKED, DID NOT SPEND ENOUGH TIME FOLLOWING UP ON?

WHAT DO YOU MAKE OF THIS INVESTIGATION?

>> I THINK IT EVERY CASE OF A PRESIDENCY, THERE ARE THINGS THAT AIDS WILL SAY AFTERWARDS THAT THEY DON'T SAY AT THE TIME.

IT'S A PERMANENT FRUSTRATION BUT I THINK IT WAS ESPECIALLY TRUE IN THIS CASE WHERE THERE WERE AT THE MOMENT THAT BIDEN DROPPED OUT OF THE PRESIDENTIAL RACE THERE WERE AIDES WHO CAME FORWARD AND SAID, AS I THINK EVERYBODY AGREES THAT IT WAS A DISASTER FOR HIM TO RUN FOR THAT SECOND TERM.

I REMEMBER IN MY LAST INTERVIEW WITH HIM IN JANUARY 2024.

I CAME OUT OF THERE THINKING THIS MAN IS GAMBLING WITH HIS LEGACY.

IF HE BETS WRONG HISTORY WILL JUDGE THEM HARSHLY.

WHAT IT CAME DOWN TO WAS A REFUSAL TO BE ABLE TO ACCEPT THE PORTRAIT THAT THE WORLD HAD OF HIM THAT WAS IN SUCH CONTRAST TO THE PORTRAIT HE HAD OF HIMSELF.

HE HAD SPENT HIS LIFE BASICALLY TELLING HIMSELF THAT HE COULD PREVAIL OVER THE DOUBTS AND HE OVER READ THE LESSON AND COULD NOT PREVAIL.

>> IS THERE ANY REASON FOR YOU TO BELIEVE THAT WHILE HE WAS IN OFFICE.

IT IS PRETTY MUCH ACCEPTABLE THAT HE WAS NOT PHYSICAL OR MENTAL SHAPE FOR ANOTHER TERM, BUT WHILE HE WAS IN OFFICE BECAUSE THIS IS WHERE THE INVESTIGATION IS FOCUSED THAT THERE WERE TIMES WHEN HE WAS NOT OF SOUND MIND AND YET WAS USING THIS AUTO PEN TO SIGN CERTAIN PROCLAMATIONS OR MAKE EXECUTIVE DECISIONS.

>> IT IS FAIR TO SAY AN AUTO PEN HAS BEEN PART OF THE PRESIDENCY FOR A LONG TIME.

DONALD TRUMP'S ADMINISTRATION USES IT.

BIDEN'S ADMINISTRATION USED IT AND SO ON.

IT'S A VALID QUESTION TO FIND OUT WHERE THERE ANY INSTANCES OF IT BEEN USED IMPROPERLY.

AS YOU INDICATED SO FAR NOTHING HAS BEEN OFFERED OR PRESENTED BY THE TRUMP ADMINISTRATION THAT SUGGESTED THERE WAS.

I THINK IT IS PART OF A BROADER QUESTION OF WHAT WAS BIDEN DOING AND NOT DOING IN THE FINAL MONTHS OF HIS PRESIDENCY.

WHAT YOU HAVE HEARD WAS HIS SEE HIM ON THE DEBATE STAGE IN THE CONDITION HE WAS IN.

I WAS SHOCKED TO SEE HIM IN THAT CONDITION.

HE WAS NOT THE SAME PERSON THAT HAD BEEN ELECTED A FEW YEARS EARLIER.

ULTIMATELY THE AMERICAN VOTERS MADE THAT CLEAR AND THAT'S WHY HE WAS FORCED OUT OF THE RACE.

>> LET'S TURN TO ANOTHER BIG HEADLINE THIS WEEK.

WHAT WE HAVE SEEN UNFOLD TODAY WHAT APPEARS TO BE A PUBLIC BREAKUP BETWEEN PRESIDENT TRUMP AND ELON MUSK OVER HIS SIGNATURE TAX AND SPENDING BILL.

PRESIDENT TRUMP HAD THIS TO SAY FOLLOWING MULTIPLE DAYS WHERE ELON MUSK HAS PUBLICLY TAKEN TO ASK AND TRASHED THE BILL.

HERE IS HOW THE PRESIDENT RESPONDED.

>> WE HAD A GREAT RELATIONSHIP.

I DON'T KNOW IF WE WILL ANYMORE.

I WAS SURPRISED.

EVERYBODY IN THIS ROOM WAS HERE AS WE HAD A WONDERFUL SEND OFF.

HE SAID WONDERFUL THINGS ABOUT ME.

HE SAID THE BEST THINGS.

HE HAS WORN THE HAT, TRUMP ROSE WORRIED ABOUT EVERYTHING I AM RIGHT ABOUT THE GREAT BIG BEAUTIFUL BILL.

>> ELON MUSK HAD BEEN BROUGHT TO THE WHITE HOUSE TO FAMOUSLY CUT FRAUD, WASTE, AND ABUSE AND HAD PRIORITIZED 20 VIEWED AS WASTEFUL SPENDING AND SET A GOAL OF CUTTING ONE TO $2 TRILLION FROM THE FEDERAL BUDGET.

WHEN YOU LOOK AT THE FIGURES FROM THE CONGRESSIONAL BUDGET OFFICE ABOUT WHAT THE BILL WILL DO, IT WILL INCREASE DEFICITS BY 2.4 TRILLION OVER THE NEXT 10 YEARS.

CUT TAXES BY $3.7 TRILLION AND REDUCE SPENDING BY $1.3 TRILLION OVER THAT TIME LARGELY BY CUTS TO HEALTHCARE AND FOOD STAMPS.

THOSE WHO ARE DEFENDING THE PRESIDENT AND ARE OUTRAGED BY ELON MUSK'S BEHAVIOR SAY IT IS COMING FROM A PLACE OF PERSONAL GREED AND PRIORITIES AND IT'S BECAUSE HE TOOK AWAY THAT EV MANDATE.

WHAT DO YOU THINK ABOUT THE PUBLIC LOW UP?

WHAT DOES IT SAY THAT THE WORLD'S RICHEST MAN IS WORRIED ABOUT U.S.

DEFICITS?

>> WE ARE LIVING IN UNPRECEDENTED TIMES.

I DO NOT MEAN THAT IN A FUNNY OR ABSTRACT WAY.

IT IS LITERALLY TRUE THE WORLD'S RICHEST MAN HAS NEVER HAD AN OFFICE IN THE WHITE HOUSE COMPLEX OR CONTROL OF THE GOVERNMENT LIKE ELON MUSK HAD EVEN AT THE HEYDAY OF THE LARGE FORTUNES IN HISTORY.

IN A SENSE THE INEVITABLE BREAKDOWN WAS BORN OF THE FACT THAT THESE ARE TWO MEN WHO HAVE LIVED MUCH OF THEIR ADULT LIVES IN TOTAL CONTROL OF THE WORLD AROUND THEM, ABLE TO PRUNE THE INFORMATION THEY GET .

THEY ARE VERY ACCUSTOMED TO BEING SURROUNDED BY PEOPLE WHO TELL THEM THEY ARE RIGHT ALL THE TIME.

HIMSELF IN THE POSITION OF BEING IN WASHINGTON AND UNDER SCRUTINY.

I DON'T THINK THE PUBLIC LIKED WHAT THEY SAW.

HE SAW 70% DROP OF TESLA PROFITS AND OUT HE WENT.

I THINK IN THIS CASE IT WILL BE A CONFLICT THAT CARRIES ON.

NEITHER ONE OF THEM AT THIS POINT HAS MUCH OF AN INSTINCT TO REPAIR IT.

I THINK AND MUSK'S CASE HE HAS DECIDED HIS IMAGE REHABILITATION INVOLVES ADDING SOME DISTANCE BETWEEN HIMSELF AND THE PRESIDENT.

>> THIS GETS TO YOUR BOOK, THE HAVES AND HAVE-YACHTS.

A FIELD GUIDE TO THE ULTRARICH.

CURRENTLY WE SHOULD NOTE THERE ARE MORE THAN 3000 ALIEN ERRORS IN THE WORLD.

ONE THIRD OF THEM ARE IN THE UNITED STATES.

BETWEEN TRUMP FIRST TERM AND SECOND THE WEALTH HELD BY BILLIONAIRES MORE THAN DOUBLED.

WE SAW THOSE TECH BILLIONAIRES SITTING THERE AT THE MANY OF THEM PUBLICLY DISTANCING THEMSELVES IN THE FIRST TERM.

NOW THEY ARE INVITED GUESTS .

THIS INCREASE IN BILLIONAIRES , IS THAT VIEWED BY POSITIVE OR NEGATIVE?

>> WE HAVE PRETTY GOOD DATA ON THAT.

THERE WAS A POLL DONE LAST YEAR IN WHICH AMERICANS WERE ASKED WHAT THEY THINK ABOUT IT.

59% OF AMERICANS SAID THEY THINK BILLIONAIRES ARE MAKING THE COUNTRY LESS FAIR.

AN IDENTICAL SHARE SAID THEY WANT TO BE BILLIONAIRES.

IT POINTS TO THE UNDERLYING PHENOMENON WHICH IS AMERICANS ARE AMBIVALENT .

THEY ARE BOTH CYNICAL AND ASPIRATIONAL.

THAT IS PART OF THE AMERICAN IDEA.

PEOPLE ARE GETTING MUCH MORE FRUSTRATED.

IT FEELS THAT YOU HAVE TO BE PART OF THIS CLUB.

YOU HAVE THE PRESIDENT'S SON STARTING A PRIVATE CLUB WITH AN INITIATION FEE OF A HALF $1 MILLION.

MORE BROADLY, THERE'S BEEN A TREND OVER THE LAST GENERATION THAT THERE WERE ONLY ABOUT 66 BILLIONAIRES IN 1990.

TODAY THERE ARE MORE THAN 800.

THERE IS HUGE WEALTH CREATION GOING ON AS THE NUMBER SUGGESTS.

TODAY ONLY ABOUT HALF OF AMERICAN ADULTS SAY THEY COULD NOT AFFORD A $1000 EMERGENCY EXPENSE AT THE SAME POINT OF TIME THAT BILLIONAIRES HAVE PROLIFERATED.

THE MEDIAN HOURLY WAGE HAS ONLY GONE UP 20%.

WE HAVE NEW TECHNOLOGIES LIKE A.I.

AND ROBOTICS THAT WILL TRANSFORM THE WORKPLACE .

HOW DO WE MAKE SURE IT IS GETTING INTO THE HANDS OF THE PEOPLE WHO HOPE TO HOLD AND SUSTAIN THOSE?

>> WHAT YOU'VE SEEN FIRSTHAND ABOUT THE ENORMOUS AMOUNT OF WEALTH AND HAS SUMMER SPENDING.

WHAT IS THE CRAZIEST THING YOU'VE SEEN?

>> WE ARE LIVING THROUGH A PERIOD , SOMEBODY SAID TO ME THAT A YACHT IS THE BEST SPENT CAPITOL.

IN OTHER CASES PEOPLE WHO MIGHT HAVE GONE TO A CONCERT IN THE PAST AND GOT FRONT ROW SEATS OR SAT IN THE SITE -- SKYBOX THEY CAN AFFORD TO PAY AND HAVE THE POPSTAR COME AND PLAY AT THEIR HOUSE.

I WENT TO A CHILDREN'S PARTY IN CHICAGO WHERE THEY HAD THE WRAPPER FLORIDA PERFORMING.

IT REMINDS US OF THE GILDED AGE MORE THAN A CENTURY AGO WHEN YOU HAD THIS EXTRAORDINARY CONCENTRATION OF WEALTH.

OF NEW TECHNOLOGIES BUT A GROWING SENSE AMONG AMERICANS, INCLUDING SOME ELITE AMERICANS WHO HAVE SAID IT MAY BE WE ARE PASSING DOWN A PATH THAT IS NOT SUSTAINABLE.

WE HAVE TO BE SURE A LITTLE MORE IS BEING DISTRIBUTED FAIRLY.

>> THERE IS AN ACRONYM I DID NOT KNOW ABOUT UNTIL YOUR BOOK OF LOA, COMPARING THE SIZE OF THEIR VESSELS.

SO WHERE DOES TRUMP LIE IN THIS?

HE RESPECTS WEALTH AND APPRECIATES IT.

HE TALKS ABOUT THE GOLD FIXTURES IN THE OVAL OFFICE BUT MANY SUPPORTERS VIEW HIM AS A POPULIST.

WHEN HE SAID HE'S PUTTING TARIFFS IN PLACE HE SAID IT'S TO BRING THESE CONSTRUCTION MANUFACTURING JOBS BACK TO THE UNITED STATES.

WHERE DO YOU PUT HIM?

>> I HAVE SPENT A LOT OF TIME REPORTING IN PLACES LIKE WEST VIRGINIA.

I REMEMBER TALKING TO A COAL MINER WHO VOTED FOR DONALD TRUMP BECAUSE HE SAID I'M GOING TO BRING THE COAL MINES BACK.

THE FACT IS THEY HAVE NOT COME BACK.

THAT PERSON, THAT COALMINER SAID TO ME, I AM ALSO BOTHERED BY THE GAP OF WEALTH I SEE IN THIS COUNTRY.

HE HAD HEARD ABOUT CEOS MAKING 400 TIMES WHAT A REGULAR WORKER MAKES.

HE SAID, I DON'T KNOW ANY MAN THAT IS TRULY WORTH 400 OTHER MEN.

IN SOME WAYS I THINK THAT IS THE CRUX OF THIS.

WHAT DO WE VALUE?

WILL WE MEASURE THE COUNTRY BY LENGTH OVERALL OR FIND RICHER AND DEEPER WAYS OF VALUING WORK AND WORTH.

>> FASCINATING QUESTION.

ALWAYS GOOD TO SEE YOU.

THANK YOU SO MUCH.

>>> NOW TO THE EVER EVOLVING SAGA OF THE TRUMP ADMINISTRATION TARIFF POLICIES WHICH BUSINESS LEADERS SAY ARE RAISING ACROSS THE COUNTRY.

RYAN PETERSEN IS THE CEO OF FLEX PORT.

HE JOINS US TO TALK ABOUT HOW COMPANIES ARE RESPONDING TO THE CHANGING LANDSCAPE AND WHAT CONSUMERS CAN EXPECT.

>> THANK YOU FOR JOINING THE SHOW.

>> THANK YOU FOR HAVING ME ON.

>> YOU HAVE THIS COMPANY CALLED FLEX PORT WHICH HELPS PEOPLE SHIP GOODS ACROSS BORDERS.

TELL ME WHAT THE ON-AGAIN OFF- AGAIN NATURE OF TARIFFS IS DOING.

>> IT HAS BEEN DIFFICULT.

WE HELP BUSINESSES SHIP THEIR PRODUCTS ACROSS 147 COUNTRIES.

THE BIGGEST DESTINATION IS THE UNITED STATES.

COMPANIES THAT ARE GOING THROUGH THIS WHIPLASH EFFECT HAVE BEEN ON SOME LEVEL SOMEWHERE BETWEEN PARALYZED AND STUCK.

THEY DO NOT KNOW HOW TO PLAN ANYTHING.

IT'S A MIX OF EMOTIONS.

ANGER, FEELING LIKE EVERYTHING THEY BUILT GOT TAKEN AWAY.

THE NEXT DAY IS RELIEF AND CELEBRATION .

IT HAS BEEN A CRAZY COUPLE OF MONTHS SINCE THE ELECTION.

>> DOESN'T MAKE THINGS HARDER FOR PEOPLE TO PLAN?

>> THAT IS EXACTLY RIGHT.

THE SUPPLY CHAINS ARE LONG-TERM THINGS.

YOU DON'T SET UP A NEW FACTORY OVERNIGHT AND DO IT ON A SHORT- TERM BASIS.

YOU SAY, THIS WILL BE THE NEW SOURCE OF SUPPLY FOR THE NEXT 5 TO 10 YEARS OR MORE.

IF THE TARIFFS ARE CHANGING EVERY SINGLE WEEK, IT IS VERY HARD TO MAKE A DECISION.

TARIFFS ARE HIGH ON CHINA WE SHOULD MOVE THEM TO VIETNAM.

NEXT THING YOU KNOW, TARIFFS ON VIETNAM GO UP AND YOU TRY TO MOVE IT TO EUROPE OR MEXICO.

IT IS DIFFICULT TO MAKE PLANS.

>> YOU PROBABLY HAVE A HIGHER VISIBILITY THAN ALMOST ANYBODY OF WHAT IS COMING INTO THE UNITED STATES.

TELL ME WHAT YOU ARE SEEING.

>> THE MOST INTERESTING THING WE SAW WHICH WAS AFTER APRIL 9 WHICH IS WHEN THE TARIFFS TOOK IS WHEN IT WAS A 145%.

IMMEDIATELY, THAT WEEK THE IMPORTS OF GOODS FROM CHINA, THE BOOKING OF NEW SHIPMENTS FROM CHINA WENT DOWN BY 60%.

THAT IS TRUE IN THE OWN CUSTOMER BASE FOR FLEXPORT, BUT ALSO TRUE ON THE OTHER INDUSTRIES.

>> WHAT DOES IT LOOK LIKE NOW.

CAN YOU SEE WHAT IS COMING IN.

>> THAT LASTED ABOUT FIVE WEEKS.

WHEN THE TARIFFS WERE RELAXED AND DIALBACK YOU HAD THIS HUGE SURGE OF BOOKINGS.

IT IS BASICALLY PEOPLE MAKING UP FOR LOST TIME.

NOW THEY ARE WORRIED THE TARIFFS MAY BE GOING UP AGAIN.

THEY WANT TO GIVE AS MUCH AS THEY CAN.

THEY HAD AN INCREASE OF 80% ABOVE THE PRE-TARIFFS, PRE- APRIL 2 NORM THAT WE HAD.

IT'S A HUGE SURGE.

THE OCEAN CARRIERS THAT OPERATE THE SHIPS, THEY PULLED ABOUT 25% OF CONTAINER SHIPS AND MOVED THEM DOWN TO LATIN AMERICA, AFRICA TO SOME OTHER TRADES.

THERE IS CAPACITY TO MOVE THE CONTAINER SO THE PRICE OF FREIGHT HAS GONE UP ABOUT THREE TIMES.

SO THEY GET RELAXED AND EVERYONE IS HAPPY AND AND THE PRICE OF FREIGHT GOES UP.

>> HOW DOES THIS WORK IN THE PORT OF NEW ORLEANS OR LOS ANGELES.

TODAY HAVE A SHEET TO TELL YOU WHAT IT SHOULD COST?

>> IT IS SIMILAR TO TAXES.

IT IS UP TO YOU TO GET IT RIGHT.

FLEXPORT IS ONE OF MANY CUSTOM BROKERS IN THE UNITED STATES.

YOU NEED GOOD TOOLS SO YOU CAN ACTUALLY FILE YOUR CUSTOMS ENTRY OF ABOUT FIVE DAYS BEFORE THE GOODS ARRIVE .

THEN YOU PAY YOUR DUTIES AND YOU ARE ON YOUR WAY .

>> YOU PREVIOUSLY SAID THERE WOULD BE MASS SHORTAGES THE SUMMER GIVEN THE TURMOIL AND TARIFFS.

WE ARE PRETTY MUCH GETTING INTO SUMMER.

DO YOU SEE THAT?

>> MY VIEW IS IF THEY DON'T DO ANYTHING ABOUT TARIFFS.

I WOULD NOT SAY MASS SHORTAGES ONLY 40% OF REALLY DEPRESSED VOLUME.

NOT ENOUGH SHIPS TO MOVE ON THE CARGO.

YOU ARE GOING TO SHE -- SEE THAT DEGREE OF SHORTAGES.

WHENEVER THERE IS SCARCITY OF GOODS THEY CAN CHARGE WHATEVER PRICE THEY WANT.

THAT IS THE REAL DRIVER.

>> GIVE ME SOME OF THE EARLY INDICATORS YOU SEE WHERE THINGS WILL COST A LOT MORE.

>> ONE OF THE BIGGEST IS APPAREL .

>> THIS ALLOWS YOU TO SHIP ONE ITEM AT A TIME INDIVIDUAL PRODUCTS DUTY-FREE FROM OVERSEAS.

THAT WAS TAKEN AWAY FOR GOODS MADE IN CHINA .

ANY APPAREL MADE IN CHINA WILL GO UP QUITE A BIT.

TAKE HOLD WHERE SOME OF THESE e- COMMERCE BRANDS HAVE RAISED PRICES IF THEY WERE PREVIOUSLY USING IT WHICH A LOT OF THEM WERE.

THEN JUST BROAD CATEGORIES.

FURNITURE IS A BIG ONE.

THEY WILL GET HIT BY THESE HIGH PRICES BECAUSE HE CAN'T FIT THAT MANY COUCHES AND A CONTAINER.

IF THE PRICE GOES UP A LOT IT'S NOT SHARED BY THAT MANY ITEMS.

IF IT GETS HIT BY THE HIGH PRICES, ACROSS THE BOARD .

ANYTHING MADE IN CHINA.

IT IS REALLY BETTER STUFF THAT IS NOT AFFECTED LIKE ELECTRONICS, SEMICONDUCTORS.

>> YOU SAID THOUSANDS AND MILLIONS OF AMERICAN SMALL BUSINESSES INCLUDING MANY ICONIC BRANDS WILL GO BANKRUPT THIS YEAR IF THE TARIFF POLICIES ON CHINA DON'T CHANGE.

NEED TO BE DONE TO PREVENT THAT FROM HAPPENING.

>> THAT WAS THE 145%.

IT SEEMS LIKE THEY ARE NOT HAPPY AT ALL.

I DON'T THINK IT WIPES THEM OUT.

THEY SAID AUGUST 30 FOR A LOT OF PRODUCTS.

IT WILL GO BACK UP TO 54%.

WHEN THEY FIRST ANNOUNCED 54% THAT WAS REALLY A CATASTROPHIC DAY .

IT IS SOMEWHERE IN THAT RANGE WHERE IF THAT COMES BACK YOU WILL SEE A HUGE WAVE OF COMPANIES START TO FAIL.

WE WOULD LIKE TO SEE EITHER THIS GET EXTENDED OR A DEAL IS DONE.

I DON'T HAVE ANY IDEA WHAT IS HAPPENING WITH THE NEGOTIATION.

>> THE WALMART CEO AND OTHERS HAVE SAID IT WILL HAVE TO BE PASSED ON TO SOME EXTENT TO CONSUMERS.

WHEN YOU ARE TALKING TO YOUR PEOPLE, TO WHAT EXTENT WILL THEY PASS THIS ON AND WHAT EXTENT DO YOU THINK THEY CAN ABSORB THE NEW TARIFFS.

>> IT IS RELATIVELY STRAIGHTFORWARD.

IT IS ALL ABOUT WHAT IS THE PROFIT MARGIN.

IF IT IS A VERY PROFITABLE BUSINESS WHERE THEY GET THE GOODS CHEAP AND SELL THEM FOR A LOT MORE, IT IS ON THE COST OF WHAT THEY PAY FOR.

THE REALITY IS THAT THEY ARE TRYING TO BE COST LEADERS AND TRYING TO HAVE LOW COSTS.

THEY DON'T PUT A HUGE AMOUNT OF MARGIN ON THE PRODUCT.

WHEN THE COST GOES UP THEY ARE FORCED TO PASS IT THROUGH.

THAT IS THE REALITY FOR MOST COMPANIES.

THEY WILL HAVE TO PASS IT THROUGH CLOSE TO 100%.

THAT'S WHAT WE SEE IN THE e- COMMERCE WORLD .

A LOT OF THEM ADDED A LINE ITEM IN THE CHECKOUT THAT SAYS IMPORT CHARGES OR CUSTOMS CHARGES.

CUSTOMERS ARE PRETTY UNDERSTANDING ABOUT THAT.

THERE HAS NOT BEEN A LOT OF PUSHBACK SO FAR.

THE REALITY IS WE DO NOT KNOW UNTIL IT STAYS FOR A WHILE AND YOU SEE HOW MUCH HIS DEMAND REPRESSED.

WHEN PEOPLE START SPENDING THEIR MONEY ON OTHER THINGS, IT CAN BE SERVICES, GOING OUT TO EAT, TRAVEL, ET CETERA.

>> YOU TALK ABOUT HOW PEOPLE HAVE TO CHANGE THE SUPPLY CHAIN.

IF SOMETHING HAPPENS ON CHINA MAYBE THEY WILL TRY VIETNAM.

HOW EASY IS IT TO SAY LET ME SHIFT MY SUPPLY CHAIN BASED ON THE CHANGING TARIFF REGIMES.

>> YOU HAVE TO BUILD A RELATIONSHIP AND PRODUCT.

ONE OF THE THINGS THAT MADE IT A LITTLE BIT EASIER IS THAT CHINESE COMPANIES TO WORK WITH THE SAME COMPANIES.

>> THEY MIGHT TRY TO STOP THAT ?

>> I ASSUME THIS IS ON THERE.

.

THEY SEE A LOT OF THIS IN CAMBODIA.

IT'S A LOCAL ENTITY .

THEY ARE DOING IT IN TERMS OF MAKING A PRODUCT OF YOU ON.

THERE ARE A LOT OF CHINESE PRODUCTS THAT GO INTO THAT.

A PROCESS THAT IS CALLED SUBSTANTIAL TRANSFORMATION.

IT JUST MEANS YOU'VE DONE ENOUGH TO LEGALLY QUALIFY IT UNDER U.S. CUSTOMS LAW AS MADE IN VIETNAM OR THAILAND.

THAT MAKES YOU SUBJECT TO THE DUTY RIGHTS IN THOSE COUNTRIES.

WHAT THE TRUMP ADMINISTRATION WOULD LIKE TO SEE IS THOSE COUNTRIES TAKE THE AMERICAN SIDE AND SAY, YOU HAVE TO PUT DUTIES ON CHINESE IMPORTS INCLUDING THE COMPONENTS THAT ARE GOING INTO YOUR PRODUCTS.

THAT IS PROBABLY THE BEST MECHANISM THEY HAVE.

THE TARIFFS ARE AT 10% AND IF YOU WANT TO KEEP IT THERE YOU HAVE TO AGREE TO SOME KIND OF A DEAL.

THERE IS DEFINITELY SOME ROOM FOR NEGOTIATION.

>> YOU HAVE EXPLAINED A PRETTY COMPLICATED RIGMAROLE.

HOW DOES THAT ADD TO THE EFFICIENCY AND THE COST IN GENERAL?

>> FIRST OFF, THE LABOR COST IS HIGHER.

NOT JUST RAW HIRING SOMEBODY OFF THE STREET, BUT THE SKILLED LABOR.

A LOT OF THESE ARE CRAFTSMAN JOBS, PEOPLE DOING APPAREL.

IT IS THE BEST TECHNIQUE AND SKILLED WORKERS THERE.

IT IS REALLY FUNNY FOR PEOPLE MY AGE WHERE THERE WAS NOT THE IDEA 20 YEARS AGO AT ALL.

SHIPPING ITEMS MORE THAN ONCE , FROM VIETNAM TO THE U.S. YOU MIGHT INCREASE TRADE FROM A TECHNICAL TERM .

THAT IS TWO INSTEAD OF ONE.

YOU ARE SEEING AND ADDS COMPLEXITY AND COST, INEFFICIENCY.

TIME IS MONEY .

IT TAKES LONGER TO KEEP MOVING THINGS AROUND .

THERE IS NOTHING EFFICIENT ABOUT IT.

>> IT SEEMS TO ME THAT THE RESPONSE OF A LOT OF CEOS IN THE BUSINESS OF IMPORTING AND MAKING THINGS HAS BEEN MUTED.

YOU TALK TO THESE PEOPLE AND THEY HAVE ANXIETY BUT I HAVE NOT HEARD A LOT OF OUT GUY.

WHY IS THAT?

>> WHEN YOU TALK TO COMPANIES WHERE IT IS KIND OF FOUNDER LED.

THEY HAVE A HARD TIME GETTING THEIR BOYS OUT.

THEY ARE NOT PART OF A BIG FAMOUS COMPANY.

THESE BRANDS ARE DEFINITELY OUT THERE.

THEY ARE REALLY APPRECIATIVE OF WHAT WE HAVE BEEN DOING AT FLEXPORT, TRYING TO TELL HER STORY FOR THEM.

I DON'T KNOW WHAT IT IS.

THESE BIG COMPANIES MAYBE BECAUSE THEY HAVE INSIDE ACCESS THEY ARE ABLE TO GO TALK DIRECTLY TO THE WHITE HOUSE AND GET THEIR VOICE HEARD THERE RATHER THAN NEED TO DO IT VIA THE PUBLIC AIRWAVES.

MAYBE A TO DO SOMETHING ABOUT MORE RISK.

IT IS RISKY TO COME OUT AND CRITICIZE THE GOVERNMENT AND THINK THERE IS BEEN BACKLASH.

MAYBE THEY ARE HIGHLIGHTED BY THE BOARD.

>> THESE TARIFF UNCERTAINTIES YOU'VE TALKED ABOUT HAVE LED TO SUPPLY-CHAIN SHOCKS .

WE HAD THAT YEARS AGO WHEN COVID LED TO THAT.

DO YOU THINK THERE'S LESSONS THERE WE MAY HAVE TO REEVALUATE.

>> WE LEARNED A LOT IN COVID.

THE PRICE OF FREIGHT IS VERY ELASTIC.

YOU DON'T MISS A LOT BECAUSE THE FREIGHT IS PRICE IS CHEAP.

YOU DON'T GET LESS STUFF BECAUSE IT IS EXPENSIVE.

YOU SHIP THE AMOUNT OF STUFF.

THEY CAN ABSORB A LOT HIGHER PRICES OF FREIGHT THAN WE EVER ASK ACTED.

TARIFFS ARE DIFFERENT .

50% TARIFF, THE AVERAGE PRICE OF A CONTAINER IS ABOUT $100,000 IN GOODS.

THAT IS $50,000 EXTRA .

THE PRICE OF FREIGHT WE SAW DURING COVID WENT TO $20,000 AND PEOPLE PAID IT BUT 50,000 IS ANOTHER STORY.

WE WILL SEE HOW PEOPLE ARE SHIPPING THE SAME AMOUNT.

THAT IS JUST SUBJECT TO BIG PRICE SWINGS.

SHOULD RETHINK MY REGIONALLY HAVING SUCH COMPLEX SUPPLY CHAINS.

THE REALITY IS THAT COMPANIES ARE ALWAYS GOING TO TRY TO MAKE THEIR PRODUCTS AS CHEAPLY AS THEY CAN.

THAT IS THE JOB AT THE END OF THE DAY.

MAKE GREAT PRODUCTS CHEAPLY .

WHOEVER DOES THAT THE BEST WILL WIN THE CONSUMER AND GROW.

IT IS A DARWINIAN ECOSYSTEM.

THAT IS THE GAME ON THE FIELD.

THE GOVERNMENT JOB IS TO SET THE RULES.

COMPANIES HAVE TO GO AND FIND A WAY TO MAKE MONEY.

THIS IS A LONG TREND.

COVID WAS A MOMENT IN TIME.

THERE IS A CHANGING LANDSCAPE.

WE HAVE ABOUT 4% ANNUAL GROWTH SINCE THE MONGOL INVASION.

FREIGHT HUNDRED YEARS YOU HAVE THIS STEADY EXPONENTIAL GROWTH.

MY VIEW IS THERE IS REPOSITIONING BUT YOU WANT TO FIND THE BEST MANUFACTURER AT THE LOWEST PRICE.

YOU DON'T REALLY CARE WHAT COUNTRY THEY ARE .

YOU ARE LOOKING AT THE ATTRIBUTES OF THE PRICES .

YOU WILL WANT TO DO GOVERNMENTS WILL TRY TO RAIN THAT IN.

THE MARKET FORCES ARE SUCH THAT IT WILL BE VERY HARD.

THE CAT IS OUT OF THE BAG IN A SENSE.

>> RYAN PETERSEN, THANK YOU SO MUCH FOR JOINING US.

>>> FINALLY, WITH THE AMERICAN PRESIDENT MEETING GERMANY'S LEADER AGAINST THE BACKDROP OF WAR IN EUROPE AND THE UNITED STATES APPEARING TO TURN INWARD.

LET'S TAKE YOU TO A TIME WHEN THE OPPOSITE SEEMED TRUE.

78 YEARS AGO GEORGE MARSHALL ADDRESSED HARVARD ALUMNI ASSOCIATION AND SAID AMERICA NEEDED TO HELP REBUILD ITS ENEMIES AS WELL OF ITS ALLIES .

>> THE UNITED STATES SHOULD DO WHATEVER IT IS ABLE TO DO.

TO RETURN NORMAL ECONOMIC HEALTH OF THE WORLD WITHOUT WHICH THERE CAN BE NO STABILITY OR ASSURED PEACE.

>> THAT BECAME KNOWN AS THE MARSHALL PLAN.

>> IN THE SECOND WORLD WAR INCLUDING PRESIDENT BIDEN -- EISENHOWER DURING THE SECOND WORLD WAR KNEW VERY WELL WHAT IT COULD COST MANY OF THOSE IN CHARGE HAS ALSO SEEN WHAT HAPPENED IN THE GREAT DEPRESSION WHEN THEY PUT UP TRADE BARRIERS AND EVERYONE SUFFERED.

THERE WAS REALLY AN ATTITUDE IN THE UNITED STATES AND ELSEWHERE THAT WE ALL BENEFIT WHEN WE TRADE WITH EACH OTHER.

WE ALL BENEFIT WHEN WE SHARE PROSPERITY.

THAT WAS THE FOUNDATION OF THAT LONG PERIOD OF GROWTH AND PROSPERITY .

>>> THAT'S IT FOR OUR PROGRAM TONIGHT.

JOIN US AGAIN TOMORROW.