
U.S. Trade Representative Jamieson Greer signaled another round of President Trump’s tariffs is on the way, on the heels of a new 50% levy on Canadian goods as varied as wine and hockey sticks. Greer says he expects action soon. The cyclospora pathogen is sparking fears – and false positives - as regulators struggle to determine the source of the recent explosive diarrhea outbreak. Former FDA Commissioner Dr. Scott Gottlieb describes why this parasite is harder to track down than others. Plus, the U.S. has carried out its 10th consecutive evening of attacks on Iran, as the Middle East conflict approaches the five-month mark. Eamon Javers - 04:01 Jamieson Greer - 16:50 Dr. Scott Gottlieb - 33:24 In this episode: Jamieson Greer, @jamiesongreer Scott Gottlieb, @scottgottliebMD Eamon Javers, @eamonjavers Joe Kernen, @JoeSquawk Becky Quick, @BeckyQuick Andrew Ross Sorkin, @andrewrsorkin Katie Kramer, @Kramer_Katie
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Becky Quick
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Becky Quick
Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod blame Canada. New tariffs of 50% on Canadian goods. From wine to hockey sticks to cement are Eamon jabbers with the breakdown.
Eamon Javers
They feel that Canada has these trade practices that are unfair.
Becky Quick
The United States Trade Representative Jamison Greer joins us. First to walk through the President's tariff policy policy now more than a year old.
Jameson Greer (U.S. Trade Representative)
We've taken actions consistent with our national security and the reasoning of all the countries who retaliated against the United States. One was the People's Republic of China and the other was Canada and the
Becky Quick
potentially lettuce born parasite making diners nervous.
Joe Kernan
This is a dog bites man story.
Andrew Ross Sorkin
Nobody probably went to Taco Bell over the weekend.
Becky Quick
What's safe and will we figure out where? Where's the source of the sickness? Former FDA head Dr. Scott Gottlieb.
Dr. Scott Gottlieb
Look, I think you can start eating salads again. The false positive I think is a red herring.
Andrew Ross Sorkin
I'm trying to think of a fast
Jameson Greer (U.S. Trade Representative)
food I don't like.
Andrew Ross Sorkin
I haven't come across one.
Becky Quick
Plus the rest of today's news that got us squawking. It is Tuesday, July 21st. Squawk Pod begins right now.
Andrew Ross Sorkin (alternate or additional hosting voice)
Stand Becky by in 3, 2, 1.
Eamon Javers
Cure please.
Joe Kernan
Good morning everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site in Times Square. I'm Becky Quick along with Joe Kernan and Andrew Ross Sorkin.
Andrew Ross Sorkin
And U.S. forces struck Iranian targets for a 10th straight day after President Trump vowed that Tehran will pay for killing three US Soldiers, the president posted on True Social. Every time Iran kills an American soldier, they will pay for that killing many times over. This directive has been passed on to Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Daniel Kaine, and every leader in the military. U.S. central Command said the military completed the latest round of strikes at about 9 Eastern last night. And crude prices, we were 69 and then stuff happened. We go, oh, it's only 71. And then things happen is, well, we're still only 73. It's not that bad. And then, wow, why isn't it higher? It's only 75. And then it was, well, now it's 80, but it's not higher than 80. And now it's almost 85. So it's been a slow move back up, but now we're back at a point where it's going to affect gasoline prices, midterms, affordability and all those things.
Joe Kernan
Well, and also the idea of the Red Sea, the strait there being closed for Saudi Arabia, that's another 7% of
Andrew Ross Sorkin
the 7% of global production being stopped. Still not 150, still not 95 again, but, you know, here we are, a couple, couple, two, three dollars every day, right?
Joe Kernan
In the meantime, the Trump administration announcing a new 50% tariff on some Canadian goods. Eamon Javers has the details. Amen. Good morning.
Eamon Javers
Yep, good morning to you. President Trump is using this unusual tariff authority to impose significant new duties on Canadian imports. The President signed three proclamations yesterday pursuant to section 338 of the Tariff act of 1930, to impose additional 50% tariffs on certain goods coming from Canada, ranging from wine to hockey sticks. To cement these new tariffs will take effect 30 days after the signing. Section 338 has been on the books for years and decades even, but it hasn't been used to enact tariffs. So we can expect this to be challenged in court as part of this ongoing debate about the scope of the President's tariff authority. Now, according to senior administration officials, the new Canadian tariffs apply to all designated goods, whether or not those goods are compliant with the existing trade framework known as usmca. Now, that is a signal that the administration is willing to further undermine the USMCA agreement with Canada. But at the same time, US Trade Representative Jameson Greer is heading to Mexico this week to negotiate terms for that country's agreement under usmca, which all suggests that Washington is far more eager for a trade deal with Mexico than With Canada upending the previous trilateral approach to trade relations between the three countries. Now, Canadian Prime Minister Mark Carney issued a statement saying the trade war has raised costs for families, particularly in the United States. And he said Canada stands ready to engage intensively to resolve issues. Meanwhile, Doug Ford, the premier of Ontario, responded on social media last night with a more confrontational statement saying, I'll never stop fighting to protect Ontario. If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar.
Dr. Scott Gottlieb
Back to you guys.
Andrew Ross Sorkin
Eamon. It's 20 billion out of 383 billion. And something did.
Joe Kernan
20 billion in goods.
Andrew Ross Sorkin
In goods. Out of 383 billion in goods. But, okay, so that's a slice of the exports from Canada. But what's it in retaliation for? Because there is something that, that got, that raised Trump's, President Trump's ire. And what? Energy, potash fish, critical minerals are all exempt. But there's something with, if you're buying auto parts from Canada, what you have to actually manufacture some of it in Canada. There are some, some trade practices that are, I guess, legal under the usmca, but that we don't like. What caused this? What's it retaliation against?
Eamon Javers
I'll tell you. Yeah, I'll tell you first what it's not retaliation against. You heard the president last week say he's going to impose tariffs on Canada in response to the wildfires and the smoke that engulfed a large part of the east coast of the US Last week. This, officials say, is not the response to that. They say this is the result of an ongoing process. They say for months and months they've been doing this research. They feel that Canada has these trade practices that are unfair and therefore it's a reaction to that. And so, you know, not the wildfire stuff that a lot of people, I think, jumped the gun yesterday and said, okay, well, last week we saw wildfire complaints from the president threatening tariffs. That's what this is. Officials say, no, it's not.
Andrew Ross Sorkin
So we know what it's not, but not necessarily what it is. Yeah, that was, that was strange. I don't, no, we want better force management or something up in, up in Canada. But I saw some editorials basically say that it's, in effect, Trump calling for, God help us, calling for a carbon tax on some of the stuff that happens in Canada, which is, I guess, if you, you know, you could look at it maybe that way, but hopefully that's not where we're headed.
Eamon Javers
I don't know about you guys. We had a lot of smoke down
Joe Kernan
here in D.C. we had a lot here too. We did, although they've gotten upset because they've said in the past when we've had wildfires, they've come to help. Canada has so interesting things. Eamonn, thank you. We are going to be speaking with US Trade Representative Jameson Greer. He can tell us exactly what caused all of this and set things up.
Andrew Ross Sorkin (alternate or additional hosting voice)
President Trump's new Air Force One, the Boeing jet gifted by Qatar, will now be taken out of service for about a month for additional upgrades and enhancements. The White House Press Secretary, Caroline Levitt saying the new Air Force One is perfectly safe for the President's travels, but will receive additional upgrades and enhancements in the fall. She said that the President would fly on the old Air Force One during those upgrades. President Trump flew on the new plane earlier this month to that NATO summit in Turkey, but then changed planes while flying back. That change reportedly came at the request of of the Secret Service. The New York Times at the time reported that the new jet lacks some defensive countermeasures, including anti missile capabilities. So we will see whether it gets Mac. The President said it was getting maxed out the plane. And then of course the question then becomes what? What is? Can that, can the plane have the same defense capabilities? And can you actually install those, implement those in the next, you know, literally in a month or two? Is that a process? Some people have suggested it could take much longer. How does that actually work? And then there's the other big question, which is that the President has said that he may plan or want to take that plane with him after his presidency for his museum. So then you have to think about, yes, it was gifted to the country, the plane, but clearly the taxpayers are going to be on the hook for several hundred million dollars to fix the plane and put in all the countermeasures and all of those things. And then does the next president not get the benefit? Not just the President, but does the taxpayers and the government get the benefit of that plane in the future?
Andrew Ross Sorkin
The London Stock Exchange is moving closer to 24 hour trading during the workweek. It's planning a new offering called LSE 24 that will operate from 5pm until 7.50am in London. It's expected to be ready for client testing by the end of this year. That follows plans by the New York Stock Exchange to adopt a 22 hour weekday trading schedule in the NASDAQ to offer 23 hour per day trading during the workweek. I don't know how you can get trading at 22 hours I mean. Or 20. I mean, this is like 8 minute abs. This is another 8 minute abs. It is.
Joe Kernan
The only thing that gives me any pause on any of this is remember the financial crisis, the great financial crisis, and the times that there were news that had to come out when the markets were closed to give the markets time to digest it, to give people time to figure it out.
Andrew Ross Sorkin
There'll be none of that. No respites.
Joe Kernan
I mean, I guess on the weekends. This is only five days and a lot of that stuff was happening on the weekends. Like you had to have a deal announced by Sunday before the markets open.
Andrew Ross Sorkin
22. Okay.
Joe Kernan
I see it in my rain.
Jameson Greer (U.S. Trade Representative)
Yeah.
Andrew Ross Sorkin
LSA. Well, we're thinking 24 now. The person that gets a 24, I
Joe Kernan
want to do 25.
Andrew Ross Sorkin
Well, that's on. That's on the days that you like in June, the days are longer than the day when you always think the days are longer.
Joe Kernan
The day time is the light is the.
Andrew Ross Sorkin
Never really explained that.
Joe Kernan
Bring me to the sun.
Andrew Ross Sorkin
I was part of this next story, I guess. Visits to Taco Bell locations plunged.
Joe Kernan
This is a dog bites man story.
Andrew Ross Sorkin (alternate or additional hosting voice)
Yeah.
Joe Kernan
Are you surprised by this?
Andrew Ross Sorkin
You didn't. Were you here for my explosive diarrhea conversation? No, Friday. Oh, you were. Okay. Just that you need to distinguish between what you normally would get and how bad it would get from the normal. And the other thing about this story is cyclospiriasis. If you transpose the P and the S, it looks like psoriasis. Yes, it looks just like it. So you got. Every time you see it, you got to say. But anyway, you can imagine that. And there was a lot of advertising during the World cup and other sporting events for Taco Bell. Nobody probably went to Taco Bell over the weekend.
Joe Kernan
What surprised me, I think it was a drop of 19% in foot traffic. What surprised me is 81% still kept going.
Andrew Ross Sorkin
Right, Exactly.
Joe Kernan
And nothing against Taco Bell. Love them. It's just I might take a break if I was worried about making sure that that lettuce was really cleared out at the supermarket.
Andrew Ross Sorkin
Do you ever buy salad in bag? Yeah. Yeah. So, you know, just.
Joe Kernan
I haven't done that in a while either.
Andrew Ross Sorkin
Right. But it was yesterday's story where the FDA walked back whether it was one of these. One of the company's lettuce suppliers from Mexico, data from Placer Dot. I found, as Becky just said, that foot traffic was 19% below the chains average for Fridays for the year. But that means 81% of people are still in there. Give me that 12 pack. Shares of people don't even know you can get a 12 pack.
Joe Kernan
I didn't know.
Andrew Ross Sorkin
Yeah, you need a 12 pack of just normal crunchy tacos. Parent company Yum Brands down more than 7% in the month of July. On Sunday, the FDA said that that one test of iceberg lettuce from Taylor Farms resulted in a false positive. The agency, though, clarified yesterday that it has not changed its prior conclusion that the outbreak is linked to shredded iceberg lettuce from Mexico supplied by Taylor Farms. I don't know what all this means.
Joe Kernan
I don't know.
Andrew Ross Sorkin
Advising Americans not to eat recalled iceberg lettuce. We'll talk more about the outbreak with Dr. Scott Gottlieb.
Joe Kernan
I mean, that's my question. Do we know that, that it's that? Do we not know?
Andrew Ross Sorkin
Well, they said it was a false positive, but they still think it's not only iceberg lettuce, but from this in this Taylor Farm. So I don't know what we know.
Joe Kernan
Hopefully Scott can walk us through a lot of this because I got to the point where I'm ready to start eating raspberries and other stuff again because I thought it was this.
Andrew Ross Sorkin (alternate or additional hosting voice)
Coming up, raspberries, blueberries and other things.
Eamon Javers
Cheese will be next.
Becky Quick
Coming up, fresh tariffs from President Trump to Canada. An AI race with China. All things trade and the global economy. With the US Trade representative, Jamison Greer.
Jameson Greer (U.S. Trade Representative)
The President embarked on a new trade policy really designed at reshoring manufacturing production to the United States and getting the trade deficit down after exploding for decades.
Becky Quick
The White House's key voice on trade. He'll join us from the busy and sometimes noisy White House North Lawn. Yep, there are lawn mowers you'll hear squawk. Pod will be right back.
Joe Kernan
Good morning, students. Soccer teaches us teamwork, leadership, geometry, art, physics and a lifetime of lessons we can take with us long after we leave the field. That's why bank of America and US Soccer are committed to helping bring soccer to every school. Soccer is officially in session. Raise your hand to help bring soccer
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to schools@bofa.com socceratschools trading@schwab is now powered by Ameritrade. Unlocking the power of thinkorswim. The award winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on thinkorswim desktop with robust charting and analysis tools all while you uncover new opportunities with up to the minute market news and insights. ThinkOrSwim is available on desktop, web and Mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly. Learn more@schwab.com trading normally in these ads you expect somebody to ask you to buy something. But this is something different. I'm Julian Barnes and I'm a reporter for the New York Times. I'm a national security reporter and that means I'm reporting on military operations. These are fast paced, quickly moving situations. What exactly is happening on the ground is often shrouded in mystery. But we turn to trusted sources, satellite imagery and expertise built up over years in order to ferret out the facts that wouldn't otherwise come come to light. I'm here to ask you to seek out a news source that does firsthand fact based reporting. If it's your local paper, great. If it's the Times, thank you. Because where you go for your information matters.
Becky Quick
This is Squawkpot up and Andrew Hugh,
Andrew Ross Sorkin (alternate or additional hosting voice)
you're watching Squawk Box right here on cnbc. I'm Andrew Ossorkin along with Joe Kernan, Taco Bell's best customer and Becky Quick.
Andrew Ross Sorkin
President Trump signing three proclamations yesterday to impose 50% tariffs on some Canadian goods and those would take effect in 30 days. Joining us now, Jamison Greer, U.S. trade Representative. It's good to see you.
Jameson Greer (U.S. Trade Representative)
Good morning.
Andrew Ross Sorkin
How are you calling Mr. Ambassador, we'll call you. How about James? Jason Jameson. All right. Well you've been on many times.
Jameson Greer (U.S. Trade Representative)
Yeah. Good to see you, Joe.
Andrew Ross Sorkin
Appreciate you having what the couple of questions I guess come to mind. What was the tipping point to do, to do this in terms of its reciprocal. Something got the President's ire about something. Can you describe exactly what it was and why these very targeted tariffs affecting hockey sticks and some things that maybe we wouldn't think of immediately.
Jameson Greer (U.S. Trade Representative)
Well, let me give you just a little bit of history, Joe, on this issue. In April of 2025, as you know, the President embarked on a new trade policy really designed at reshoring manufacturing production to the United States and getting the trade deficit down after exploding for, for decades of all the country. And we impose tariffs on, on all the world at varying levels. Of all the countries who retaliated against the United States, one was the People's Republic of China and the other was Canada. Some of the things they did is they banned the sale of U.S. liquor and other booze on Canadian shelves. They capped and limited the amount of autos that could be shipped to the United States from companies who were reshoring to the US and they also continue to maintain limited space for market access for US Dairy. But importantly, they give other countries better deals on each of these three issues. And so it was a natural consequence after a year of these measures being in place and longer in the case of dairy, for the President to take action. These are responses to this retaliation. We've been asking for a year for the Canadians to remove these, to modify them, to adjust them. They haven't done that. And so we have a tailored action that covers a subset of Canadian goods. We aren't banning the goods like the Canadians have banned American alcohol. We're not putting a cap on them or limiting them like they've done to cars and dairy. But we have a tariff which is again is a natural consequence of the Canadian retaliation which has endured for a long time.
Andrew Ross Sorkin
Did either the things that, the actions that Canada has been taking or these reciprocal, these tariffs here are either of them not allowable under the current reading of the usmca.
Jameson Greer (U.S. Trade Representative)
So for the dairy, for example, the United States were very competitive in dairy production and cheese. And we and the Canadians made a commitment to us under the USMCA to allow US access under certain types of quotas. However, in implementing that access, they have said you can only sell essentially to co ops which are owned by Canadian dairy farmers who obviously have less of an incentive to get American dairy. But when you look at the eu, they allow EU dairy not only to go to those destinations, but they can also sell them to retail, to wholesale, to food service. That's the kind of access we expected out of USMCA and that we're not getting the, the, the prohibition on wine and spirits, that's again, that's not permitted under our trade agreements. People will come and they'll say, well, the United States has taken, you know, trade actions on Canada, etc. We've taken actions consistent with our national security to make sure that we can reshore and support our auto supply chains which are under attack by China and, and excess capacity worldwide. We're protecting our steel and aluminum. Other countries are taking similar actions to protect their steel products. So the types of things we're doing are overdue. No one has retaliated against us except China and Canada. So we're taking a targeted measure to counter that retaliation.
Andrew Ross Sorkin
So the, you know, Mark Carney said, the Prime Minister said that the new tariffs are the latest in a series of unilateral U.S. trade actions that do violate the USMCA. And Canada has been making a lot of detailed proposals to try to resolve some of these issues and they stand ready to engage. Is that, do you think that that's not true? Is he distorting or not being totally true?
Jameson Greer (U.S. Trade Representative)
Well, the Canadians have always been willing to engage. If engagement means talking and meeting, we've done that. I've done that. I have a good relationship with my counterparts there. When he talks about these proposals, I won't go into detail because I want to respect the confidentiality. But what I will say is the proposals are generally for promises to discuss these issues, which we're already doing, not to actually change these things. They talk about collaboration on energy. We've never had tariffs on Canadian energy. We've always been open to that and that kind of exploration. So the types of things that have been in these proposals, proposals have always been, let's talk, let's keep trading in energy things we already do, things that do not fundamentally commit to resolve these issues, maybe just talk about them some more. And for us, we want them fixed.
Andrew Ross Sorkin
What do we, what do you think the President feels we should do with usmca? What will be the end result? Do you know?
Jameson Greer (U.S. Trade Representative)
Well, what I would say, first of all, as you know, the president elected not to renew US Employees mca and in some ways he has already overwhelmed elements of that agreement with actions he's taken again on auto, steel and aluminum, which are global in nature, but obviously affect our relationship with Canada and Mexico. One of the things he wants to see with Canada, Mexico is he wants our deficit to go down with these countries. With Canada, it has gone down over the past year. With Mexico, it's gone up. Our global trade deficit overall, if you're measuring, you know, the, the 12 months before the tariff program started in April 2025 and the 12 months afterward, the trade deficit globally has gone down, which is good, but the composition of that deficit has changed. So that's his number one goal. We want the outcomes to make sense. We want to have more auto manufacturing here, and we're seeing it. Joe, one of the reasons why the Canadians impose their measures is because we've seen lines, production lines come from Canada back to the US we're seeing Toyota and others move from Mexico to the U.S. that's what we want. So that's the outcome that he wants. I think also if we can have an arrangement with Mexico, with Canada, that we are trying to emphasize Canadian, Mexican, US Content in goods traded in North America, that's a good outcome because that helps get supply chains back here in North America.
Andrew Ross Sorkin
Sometimes it almost does seem like the whole, the whole world we could talk about. How about let's just talk about the EU and this loan to Airbus. So it's not just that President Trump feels like we've been harmed in this case. Boeing is asking the US to intervene. What can you tell us about that?
Jameson Greer (U.S. Trade Representative)
So we have had for a few years an understanding with the European Union that neither side would have unfair subsidies. There was a World Trade Organization dispute about this where the United States won in a big way. The EU themselves had a case against us with Boeing, which was a much smaller case. But the reality is we've had a settlement with the EU for many years. However, this is coming on the heels of that settlement. The EU has announced this loan. We're looking at it very closely. I've made representations to my counterpart in the European Commission. We're speaking with Boeing about this. We don't mind fair competition. We welcome fair competition. That being said, we can't accept a situation where companies don't have to operate under market based systems where Boeing has to operate and compete against an Airbus that gets unfair loans or loans that are unfair. With respect to everything that we're trying to do in America, we want to make sure that our companies can compete on a level playing field. And if the European Union is giving unfair loans, then we need to take care of it and address it.
Andrew Ross Sorkin
The latest, and once again switching gears, the latest is that there are advances being made in China, maybe that they're surprising, that either bring us, bring that country up to, up to par with the United States or even maybe ahead in certain areas. Do we need to do things in terms of, of new trade actions there? Where does it stand? We haven't, we haven't heard much lately about proposed remedies for things like this.
Jameson Greer (U.S. Trade Representative)
So this is an emergent issue where China is going with artificial intelligence. They're clearly our key competitor in the world on this issue. This is something that a number of US Government agencies are looking at and collaborating on. Whether it's Mike Kratzios in the Office of Science Technology Policy in the White House, Commerce Department, Treasury Department, War Department. We look at it. We are concerned when we see allegations that China is distilling our models to use theirs. We know that this is something that's going on. We see that as a form of forced technology transfer or IP theft, in a sense. We also know that they subsidize energy production that's going into their AI. We know that they are getting an unfair advantage in a lot of these ways. They're promoting certain types of OpenAI systems standards that make it actually really cheap for others to use them. And I think because we're in this emergent situation, I don't think we're necessarily against one type of standard or another, but I think we're taking a very close look at how China is propagating its AI development to make sure that our companies compete again on a level playing field.
Joe Kernan
Ambassador, could you just clarify how you think our relationship with Canada stands right now, particularly with the USMCA, with that not being renewed for 16 years? Where would you say the state of things are between the two nations right now?
Jameson Greer (U.S. Trade Representative)
Well, first of all, one thing to remember is we have always had trade issues with Canada. It's always been the most contentious part of our relationship across decades, whether it's with softwood lumber or, you know, 20, 30 years ago with trade in grains and pork across the, the borders. So it's not new to have trade tensions with Canada. I would say going forward, I'm going to keep talking to my counterparts in Canada. The prime minister put out a letter yesterday responding to the president's action. His letter was, you know, firm but moderate in tone. So they haven't cut off talk. So we're going to keep discussing with them. The reality is we want outcomes that are good for American workers and American businesses, and we're going to pursue those. Sometimes you have to take trade action to incentivize those actions, and sometimes you take an action that leads to a better negotiation. In the end, we will see where it leads.
Joe Kernan
We'll see where it leads. But do you think that if we've always had these troubles, this isn't anything to get worried about? Obviously, a company like gm, which manufactures a lot of its trucks in Canada and brings them back, has a lot riding on this. There are countless other companies that are kind of watching and waiting and thinking the same thing. Should they rest easy on that front?
Jameson Greer (U.S. Trade Representative)
I think. Well, let's just go back to what the president regularly says. If you're building in America, that's where you're going to have certainty. You're going to have access to the robust American consumer. Again, that's a big certainty there. I think if you're, if you're planning on building a new factory in Canada and exporting back to the United States, I think you have to understand that the American people, they don't want offshore shoring. This is a bipartisan view. We don't want a situation where those jobs are going north. Remember Canada, they, they did not used to make automobiles. It was in the 60s. Canada essentially limited the import of U.S. vehicles unless our auto companies agreed to produce there in the U. S. Canada auto pack. So they did a very Trumpian thing and saying if you're going to sell here, you need to make here. So we have a long history again of these tensions. I don't, I don't think that there's ever going to be a situation where if a company's own offshoring to another country, they're always going to have 100% guarantee that they'll be able to get it into the United States.
Joe Kernan
Okay, but that's, that's different from when we had nafta. Starting with nafta, we thought it was okay to move not just fully completed vehicles but parts back and forth across the border for the automakers. The US Automakers in particular, they set up a lot of things that was kind of based on that certainty. The New World is you shouldn't feel that comfortable if it's not actually being completely manufactured here in the United States.
Jameson Greer (U.S. Trade Representative)
We fundamentally disagree on nafta. The President disagreed with that. I disagreed with it. We had the UAW who didn't love nafta. We had people on the right and left who didn't agree with NAFTA. We had people run for president in the 90s against NAFTA. So, so that, that's part of the whole problem is that we don't like that certainty of saying you're going to go overseas, build a factory and re export it here. Now listen to trade. Are there more going to trade?
Andrew Ross Sorkin (alternate or additional hosting voice)
That's what I was going to say.
Andrew Ross Sorkin
Are there more tariffs coming? The FT report that provides more detail this week, 301s.
Jameson Greer (U.S. Trade Representative)
So with forced labor, the Section 301 investigation of forced labor, again, the US has laws to prohibit trading goods with forced labor. Other countries, most don't have a law. Those that do don't really enforce it. We expect to see some action soon. I don't, I don't really, I can't really specify a timeline right now. I have a responsibility to brief Congress and other stakeholders before I really reveal that kind of thing. But we do expect action soon.
Andrew Ross Sorkin (alternate or additional hosting voice)
On Ambassador though. The FTSE reports that this would be much broader than just just a small number of countries, that this would be a significant expansion. Is that not right?
Jameson Greer (U.S. Trade Representative)
Well, it covers 60 countries, 60 and about 99% percent of our trade. And that actually illustrates the scale of the problem we're facing. For years, again, the United States has had on the books this law where we prohibit the import of goods made in whole or in part with forced labor, and we enforce it rigorously. Other countries, most don't have it. Those that do don't enforce it. The EU will say we have a law enforced labor. And while that's true, it doesn't come into effect for another year and a half. So by the terms of their own law, it's not in effect. It does cover 60 countries because it's such a prominent problem in the world.
Andrew Ross Sorkin (alternate or additional hosting voice)
Great.
Andrew Ross Sorkin
Mr. Ambassador, thanks for taking all fielding all those questions. We appreciate it. Hope to see you again soon.
Jameson Greer (U.S. Trade Representative)
Have a great day. Thanks all.
Andrew Ross Sorkin
Okay, thanks.
Becky Quick
Still to come on squawk pod the FDA reversing its false positive on lettuce potentially contaminated with cyclospora. The former head of that organization, Dr. Scott Gottlieb, on the difficulty of finding this pathogen.
Dr. Scott Gottlieb
So if this was salmonella or E. Coli, you can actually sequence the particular strains and get a molecular fingerprint to be able to trace it back to the particular source. You can match the strain you found in patients to the strain you found on the farm. You can't really do that here with cyclosport.
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Becky Quick
You're listening to Squawk Pod from cnbc. Here's Becky Quick.
Joe Kernan
Welcome back, everybody. The FDA says that Taylor Farms continues to be the subject of its investigation into the cyclospora outbreak despite the false positive test result that we are now hearing about. Joining us right now is former FDA commissioner Dr. Scott Gottlieb. Gottlieb. He is also a Pfizer and Illumina board member and a CNBC contributor. And Scott, thanks for being here this morning.
Dr. Scott Gottlieb
Thanks a lot.
Joe Kernan
So I was feeling pretty good and confident about things when I thought this was definitely a case of Taylor Farms and, you know, the lettuce that was going to Taco Bell. I thought maybe I can start eating salads again. Now we hear that this was a false positive. What does that tell us?
Dr. Scott Gottlieb
Well, look, I think you can start eating salads again. I think this, the false positive, I think is a red herring. The strength of the decision that the FDA made in isolating this particular farm was based on the epidemiological evidence and it was very strong. I think it was aided by the work that Michigan did to trace back these cases and also the strong supply chain management that Taco Bell had. But FDA was primarily relying on that epidemiological evidence. Tracing the case is back to this particular source. You can question why they included that test result anyway in the statement that they put out. I don't think was important to the strength of the evidence that they had. The fact that it was a false positive, I think doesn't change the balance of the equation.
Joe Kernan
This is really hard to test for. You basically have to have human feces to go back and figure it out.
Dr. Scott Gottlieb
Yeah, it's not just hard to test for. So the only, the only human sample is stool. It's also hard to test for in the field. There's not a lot of good reliable test and I'm not surprised that they had a false positive hit. Also, the tests that doctors use to screen patients typically won't pick it up. You have to specially order a test to look for cyclospora. So it's a difficult pathogen. They don't have what we call whole genome sequencing. So if this was salmonella or E. Coli, you can actually sequence the particular strains and get a molecular fingerprint to be able to trace it back to the particular source. You can match the strain you found in patients to the strain you found on the farm. You can't really do that here with Cyclosporus, so it's harder to use testing alone as a way to isolate this. I think they're really relying on the epi.
Joe Kernan
Yeah. The number. The statistic that got me is that only 4% of the public eats at Taco Bell, but 60% of the people who got this explosive diarrhea reported having eaten there.
Dr. Scott Gottlieb
Right. And the Michigan public health officials found that 90% of people who had this infection, this parasite, reported having lettuce in the prior two weeks. So that's very strong epidemiological evidence. This is hard to look for because people don't remember if they had lettuce on a hamburger. It's also confounded by the fact that you find cyclospore in things like cilantro and basil. And there's background infection going on here. I think the cluster of infections that we saw in Michigan in the Great Lakes region, that seems to be related to this particular farm. FDA is now testing on that farm. They're testing product coming into the market. So I would have confidence about what's coming into the market right now. The offending supply probably was in the supply chain three, four weeks ago. That doesn't mean that there isn't some ongoing contamination. They need to go onto that farmer and figure out how this got into the water supply there, which is likely the conduit. But I think FDA has been working on that based on what I've been told from the agency. Remember, this is spread. The only known reservoir for this is humans. And so this is from human fecal matter that got into the. Probably the water supply, maybe from flooding, maybe from contaminated irrigation and was used to irrigate those crops.
Joe Kernan
I guess when you look at it from the consumer perspective, it feels like you're better off staying inside to avoid any of the smoke that's been coming from the wildfires. And eat chocolate instead of, instead of salad for all of these things. You're saying it's all clear at this point?
Dr. Scott Gottlieb
Well, I wouldn't say it's all clear. And you're going to see cyclospore infections in the summer anyway.
Joe Kernan
How often do we usually see this? It's gotten more headlines.
Dr. Scott Gottlieb
This is probably the biggest cluster that I've ever seen, sort of in modern times. So there definitely is a single source for a lot of these infections in the Great Lakes region. But you see this in the summertime. Look, if consumers want to mitigate risk, there's things you can do. You can buy a whole head of lettuce rather than bagged lettuce. Because with bagged lettuce, if you have one contaminated head of lettuce, it might get in dozens of different bags of lettuce. And so you can also buy locally. There's been no documented cases of Cyclospora from locally sourced lettuce inside the United States. So people can go to a local grower and buy it. Right now for the mass produced lettuce, the only regions that are harvesting typically are Mexico. There's a little bit in Arizona. California isn't harvesting right now. So any bag lettuce that you buy is probably coming from Mexico right now.
Joe Kernan
The Taylor Farms supplies Taco Bell. Does it supply lots of other places too?
Dr. Scott Gottlieb
Yeah, that bag lettuce got into a lot of retail establishments. This was more than just Taco Bell. The reason why Taco Bell isolated it because they have very good supply chain management. We saw this with McDonald's, we also saw with Cracker Barrels, where when they had an outbreak associated with those restaurants, they were able to isolate very quickly. When I was at fda, Cracker Barrel had an outbreak of salmonella related to eggs that were served in locations in the South, I think the Southeast, if I remember correctly. They were literally able to isolate back to a particular henhouse where those eggs came from. So that's how good the supply chain management is with these big food chains. So Taco Bell did a good job here and I think they acted very proactively.
Joe Kernan
There have been some people who have said the fda, the CDC has had funding cuts and that's why why this got so bad. Do you think that's the case?
Dr. Scott Gottlieb
Yeah, look, I think FDA acted with speed here in terms of their trace back. So I don't think there was any lapse in what FDA did. CDC appears to act slowly here. Michigan really did a lot of the initial epidemiological work that traced this to a common food source. And then FDA picked up from there and found the particular farmer this was coming from. Whether or not there have been cuts there have been people in some of these groups who've been let go from doge. There was also a group on food safety that was let go at USD. Whether or not that translated into any of this, I think it's really premature to draw that conclusion. Very hard, you know, maybe yes, maybe no, and maybe we'll never know. So I think it would be irresponsible to say the budget cuts flowed into some of this. CDC has always been challenged in these things. And the group that does these parasitic infections is different than the foodborne illness group. And I always found that the people who worked on foodborne illness were stronger than this parasitic group at cdc. Cdc, just, you know, just by normal course, irrespective of any budget cuts.
Joe Kernan
You've pointed out that Taco Bell has a really great supply chain control to have figured this stuff out and gotten it. We were just saying that Taco Bell's Traffic was down 19% on Friday from what it typically would be in a Summer Friday Sweetgreen. Their shares were down like 25% as people were avoiding some of those places. Would you eat at a Taco Bell? Would you eat at a sweetgreen at this point?
Dr. Scott Gottlieb
Yeah, look, I would have no concerns about eating lettuce inside a restaurant chain. FDA is on that farm right now. They're inspecting the farm. They're also inspecting the supplies coming into the U.S. taylor I don't think is shipping a lot right now. I think it's being sourced elsewhere. The big chains will be on the ball here. They'll be on the best place for it. You think at this point right now, it's a lot. It's a lot safer to eat lettuce right now than it was four weeks ago. Because now they're sourcing from different suppliers. They're looking at local suppliers where they can get it. So I think they're on top of it. So I think that, you know, people have sort of responded appropriately. Certainly FDA has in this instance.
Joe Kernan
And lettuce doesn't have a very long shelf life, though.
Dr. Scott Gottlieb
Doesn't have a long shelf life. So whatever was. Unless there's an ongoing contamination in that farm, which there may be, whatever was contaminated, it could have been a transient contamination from flooding onto the fields. Whatever happened happened three or four weeks ago. And the new product coming into the market right now is being tested again. If you're a consumer who's worried about it, you can do things in your own life. Buy a whole head of lettuce, cut it up, things like that. I wouldn't be too concerned on a prospective basis going forward. But if you want to be vigilant, if you're someone who's immunocompromised at more risk, there's things you can do.
Joe Kernan
Dr. Gottlieb, thank you.
Dr. Scott Gottlieb
Thanks a lot.
Andrew Ross Sorkin
4%. Did you check that math?
Joe Kernan
It says only 4% of the public eats at Taco Bell. But 60% of the patients affected.
Dr. Scott Gottlieb
I got that from FDA.
Andrew Ross Sorkin
I think they mean eat at the restaurant. How many people take it out and then eat somewhere? 40%.
Andrew Ross Sorkin (alternate or additional hosting voice)
Speak for yourself.
Joe Kernan
He is.
Andrew Ross Sorkin (alternate or additional hosting voice)
I know, I know.
Dr. Scott Gottlieb
4%'s a lot.
Andrew Ross Sorkin (alternate or additional hosting voice)
I told you, I told you that the Kernan family is responsible for the earnings miss or whatever on Taco Bell.
Andrew Ross Sorkin
Domino's. Yeah. McDonald's. I'm trying to think of a fast food I don't like and I don't, I don't think I haven't come across one. Thank you.
Andrew Ross Sorkin (alternate or additional hosting voice)
Dr. Thank you.
Becky Quick
And that is the podcast for today. Thank you for listening to Squawk Pod today and any day that you do. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. Please tune in weekday mornings on cnbc starting at 6 Eastern or get the best of our TV show right into your ears when you follow Squawk Pod. Wherever you get your podcasts, we'll meet you right back here tomorrow.
Eamon Javers
We, we are clear. Thanks, guys.
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Episode Title: More Tariffs Coming & Cyclospora’s Source
Podcast: Squawk Pod (CNBC)
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin
Key Guests: Eamon Javers (CNBC Correspondent), Jameson Greer (U.S. Trade Representative), Dr. Scott Gottlieb (Former FDA Commissioner)
This episode is centered around two major headlines:
The episode features deep dives into trade policy with exclusive input from U.S. Trade Representative Jameson Greer, a breakdown of the tariffs’ origins and effects, updates on U.S. military action in the Middle East, and a public health segment unpacking the Cyclospora scare with Dr. Scott Gottlieb.
President Trump signed three proclamations under Section 338 of the 1930 Tariff Act imposing 50% tariffs on Canadian goods (including wine, hockey sticks, cement), effective in 30 days.
Section 338 authority is unusual and is likely to be tested in courts.
The tariffs are not a retaliation for Canadian wildfires and related U.S. air quality concerns.
Critical sectors like energy, potash, fish, and minerals are exempt.
Reciprocity and USMCA:
USMCA Framework:
On Canada’s Offerings:
On Future of USMCA and Trade Deficit:
Tariffs Beyond Canada:
Outlook on U.S.-Canada Relations:
Guest: Dr. Scott Gottlieb, Former FDA Commissioner
Chains with sophisticated supply chains (Taco Bell, McDonald’s) have better traceability.
No strong evidence that FDA/CDC funding cuts affected outbreak response.
Would Dr. Gottlieb eat at Taco Bell or Sweetgreen right now?
Lettuce shelf life is short; new supply is being tested and replaced.
For risk-averse consumers: buy whole, local lettuce, avoid bagged mixes.
| Topic | Segment Start | Key Speakers | Key Points | |---------------------------------------------|--------------|-------------------------------|-------------------------------------------------------| | U.S.-Canada Tariffs | 03:58 | Eamon Javers, Greer, Hosts | 50% tariffs, impact on USMCA, Canadian response | | U.S. Geopolitics, Markets | 02:29 | Hosts, Eamon Javers | Iran strikes, oil prices, Air Force One, LSE hours | | Trade Policy Interview (Greer) | 17:11 | Jameson Greer, Sorkin, Kernan | Tariffs rationale, USMCA issues, labor, future tariffs| | Cyclospora Outbreak and FDA Interventions | 34:05 | Dr. Scott Gottlieb, Kernan | Outbreak source, food safety, FDA/CDC response |
For full insights on tariffs, trade, and foodborne outbreaks, this episode is essential listening—balancing hard policy analysis and practical advice, all with the Squawk Box team’s blunt, playful tone.