Transcript:
0:01
Hi, this is John Heinrich. We’re just running one of our Zoom rooms, waiting for attendees to show up. If they show up, they don’t show up. I might make some comments to get used to in the Small Business Success School. There’s always something going on.
0:20
Since we’ve had about 15 minutes, there has been some misapprehension about the nature of the tariffs, both in the national news media and even among some public officials who should know better. Basically, Trump proposed a system whereby, in the first iteration, he proposed, when he held up the board, a series of tariffs based on what countries were charging the US to go into their country.
0:56
And he set the US tariffs at about one-half of what they were charging us. Now, particularly, that set off a firestorm, and as a result, all the tariffs are back under negotiation. Not every country is getting serious about it. Some countries have tried to play games. Ultimately, I think what Trump has said he wants to do is to get the US inbound tariffs, in other words, on goods imported into the US, down to around 10%.
1:31
But people who are exporting those goods have gotta get their countries. Tariffs are down to 10%, and that’s what he reviews as reciprocity. Or Ford could sell some Ford in China, although parenthetically, I think they still have a plant in China. But GM could sell some Chevys. Chrysler could sell Chryslers, Dodges, and minivans.
1:58
You know, you get the idea. The idea is to level the playing field between ourselves and our other world trading partners. And it’s interesting because the US has raked in something like $600 billion in tariffs just since they were announced on April 2nd, which is since today is just about May 5th, I think.
2:24
That’s a little over a month ago. That’s pretty remarkable. So, interestingly enough, I think they’re here to stay. I have put Twitter posts out and other commentary that Trump needs to really address the country nationally on exactly what he means by reciprocity because other people in countries and commentators are not getting the idea.
2:52
So that’s my commentary for the moment, and let’s see what happens. We’re recording this. We’ll put it on the cloud if I have a prospect show up. All the more better, all the more better. Great English. All the better.
3:09
And as usual, we have cell phone calls. Scammers.
3:15
One other comment on tariffs is that I think they’re going to be with us for a while because even though Trump views something like 10% inbound tariff as the ultimate ideal. It’s gonna take a while to get there. I think it might take as much as a year to get there after, as they’re negotiating with all the various countries.
3:37
And there are 190 countries that got tariffed, and so far, I think 16 or 17 have actually shown up with the White House to negotiate the tariffs. The Chinese are trying to bluff. But secretly, as of the news yesterday, they have quietly cut their tariffs to end some inbound computer parts and chips to 25%, which is a pretty significant reduction.
4:01
Ultimately, I think, well, they’re doing it because their export markets to the US have been absolutely slammed. They’re losing jobs in Chinese factory towns, so they’re definitely feeling the pinch.
So I’m gonna stop here on this one.