Transcription
President Trump is hyping up the stock market. He said that you better go out and buy stocks now and that the stock market is really going to rally. So, I want to show you these two video clips of President Trump. And we're going to start with this one. Please take a look.
All of these uh trade deals that we're doing. Uh this country will hit a point that uh you better go out and buy stock. Now, let me tell you, this this country will will be like a rocket ship that goes straight up. This is going to be numbers that nobody's ever seen before.
And now I want to show you the second video clip of President Trump saying that the stock market is really going to rally because of the trade deals. So please take a look.
Wall Street as as they watch this. I mean you saw the stock market declined sharply after immigration day and it's rallied back since then. Well, now it's going to really rally cuz you know, don't forget they said this is all a pipe dream.
So listen, I just want to be very clear about this. This is not financial advice. I'm simply telling you what President Trump said and you saw it for yourself. So, President Trump is essentially saying that with all these trade deals coming together, the country, well, his opinion is that the country is going to prosper so much that the stock market's going to rally and that you should buy stocks now.
So, I want to tell you about the UK deal and then we'll move on to what the situation is with China. Okay. So, what is in the trade deal with the UK? Okay. So, here are the highlights.
The 10% blanket tariff is still going to be active for UK imports. But when it comes to vehicles, so Trump imposed a 25% tariff on vehicles and vehicle parts coming into the US. So the UK will only be charged the 10% tariff. The UK currently charges a 10% tariff on American vehicles. So those are our exports going out to them. Okay.
Now, when it comes to aluminum and steel, Trump imposed a 25% tariff on aluminum and steel imports. Okay, so for well, this is my only chance to say it, so I'll say it. So, for UK aluminium and steel, they're going to be exempt. So, a 0% tariff.
Pharmaceuticals. So, the details on this, they're still in progress, but this is important because pharmaceuticals are a major export for the UK. It's currently $9 billion a year.
And just to clarify one thing, because I know some people are going to get very technical and they're going to point out that this is not a trade agreement, which is true because only Congress has the authority to authorize a trade agreement. So this is just a modification of the tariffs.
Anyways, I want to show you this. Here's what President Trump wrote on Truth Social.
Together with our strong ally, the United Kingdom, we have reached the first historic trade deal since Liberation Day. As part of this deal, America will raise $6 billion from tariffs, $5 billion in new export opportunities, and enhance national security. And then he ended it with, "This deal shows that if you respect America and bring serious proposals to the table, America is open for business. Many more to come. Stay tuned."
So, as President Trump mentioned, this deal with the UK, it was the first deal that was announced since Liberation Day, and President Trump hyped it up by making the stock market well those stock market comments. But just as a reminder, the reciprocal tariff is scheduled to unpause after July 9th.
So in terms of what to expect, President Trump is going to be using this tariff deal with the UK as a framework to work with the other countries. But I mean, we're gonna see how this develops because you have to keep in mind that there's only two more months left and there's over 100 countries that have to be negotiated with.
Now, I just want to point out that the stock market has actually been very optimistic that there's going to be deescalation with China and President Trump has been hinting of progress with China. So, this Saturday, so here's the situation.
Treasury Secretary Scott Bent and the Chinese vice premier, they're going to meet in Switzerland to discuss. So Beijing is saying that the United States asked for this meeting and the United States is saying that China asked for this meeting. So I have no idea, you know, what the truth is. All we know is that in public both sides, both countries, they're putting up a show that neither is going to back down.
Now the question is this weekend, are they actually going to achieve anything? Like are they going to make any progress? Let me know what you think. President Trump is saying that he believes that they're going to achieve a lot. So, I want to show you.
You said that this weekend is going to be a friendly visit, but do you expect that it will just be a formality to break the ice or are they going to get into substantive negotiations? I believe so. Yes. I believe it's substantive. Yes. Uh I I think people like to say yes, we're having a meeting to meet. Well, we're meeting. So, what are we going to do? Talk about meeting again. So, I think it's going to be substantive. I think we can say that, right, Scott? uh very substantive.
Now, China wants to do something and look, they have to at this point, you know, essentially uh they made a trillion dollars a year and now they have absolutely, you know, no business because of the tariffs. They have no business and they want to have business and we want them to have business. We want them to do well. We want them to do very well. So, uh I think it's going to be very substantive.
Okay. Now, I want to tell you this. Currently, the tariffs on Chinese imports are as high as 145%. And with the tariffs that high, it's no surprise that we're seeing Chinese imports just nose dive. So, the port of Los Angeles is the busiest ports in the US by volume. And this week, compared to the same week last year, the port announced that cargo volume fell by 35%.
So they're saying that the first to feel it will be the ports followed by trucking, shipping and then the distribution centers and then the manufacturers and retailers, they're going to feel it next and then the consumers. Okay, so that's going to be the order. Well, the expected order and how this is going to impact. So I'm sure that many people have already seen or felt it. However, they're talking about the full force of it.
And just to give you a sense of the timing of all this, the Port of Los Angeles director Jean Srooka said, "American importers, especially in the retail sector, are telling me that they have about 5 to 7 weeks of normal inventory on hand today."
Now, some people may panic and believe that shortages are going to happen in 5 to 7 weeks. You know, I'd say maybe for some products. However, the way that I'm translating it is that importers, they're going to have 5 to 7 weeks to secure new suppliers. But I just want to point out that the new supplier that they're going to find, it was not their first choice. It wasn't the most efficient, and it wasn't the cheapest to begin with. Therefore, it means higher prices for them, the importers, and it's just going to be passed down to us, the consumers.
But I just want to say this regarding this whole situation. Please make no mistake that we will feel the consequences here in the US. However, this has also been damaging the Chinese economy as well. So, it's going to be damaging to both sides. So, again, let's see how the discussions develop over the weekend.
And another thing that you have to understand is that other countries have retaliated against US tariffs. And that means that it's harder for Americans to sell our goods to other countries. So we take less imports but those other countries they take less of our exports. So exports have been dropping at the majority of ports. So just look at the difference over the past two months.
But Trump says that the lower volume is a good thing. So I want to show you what he said.
Businesses because business has slowed down as you mentioned. But we're seeing as a result the ports here in the US the traffic has really slowed and now thousands of dock workers and truck drivers are worried about their jobs. We lose that means we lose less money. You know when I see that that means we lose less money.
Anyways that is the current situation. Let's see what happens over the weekend. I'll keep you updated. Please subscribe. I thank you for the support and I wish you a very nice day. Take care.