The 47 Morning Update with Ben Ferguson Episode: Tariffs: Angels & Demons Urging Either a Massive Free-Trade Victory or Perpetual Trade Barriers & Taxes
Release Date: April 7, 2025
Host: Ben Ferguson
Guest: Senator Ted Cruz
Publisher: Premiere Networks

Introduction

In this episode of The 47 Morning Update, host Ben Ferguson engages in a comprehensive discussion with Senator Ted Cruz about the seismic shifts in U.S. trade policy under President Donald Trump's administration. The conversation delves into the recent imposition of unprecedented tariffs, the ensuing economic turmoil, and the strategic debates within the White House on the future of these trade barriers.

Trump's Tariff Announcement and Economic Impact

April 2, 2025: President Trump announced tariffs on nearly every country globally, marking the highest level since 1933. This aggressive move aimed to address the decades-long erosion of American manufacturing and the decline of blue-collar jobs in the industrial Midwest.

Economic Fallout:

• Market Reaction: The stock market plummeted, evaporating $6 trillion in mere 48 hours. Concerns persist about the market's stability and the potential for further declines (03:15).
• Impact on Consumers: American consumers face rising prices, with significant increases across various sectors. For instance, one major auto manufacturer indicated a $4,500 price hike per vehicle due to tariffs (13:26).

Quote:

Senator Ted Cruz [01:50]: "We've seen over the last 50 years a hollowing out of manufacturing in America. We've seen what used to be the heart of the American middle class... decimated by good-paying jobs leaving America."

White House Debate: Leverage vs. Permanency in Tariffs

Within the Trump administration, a critical debate has emerged: Should tariffs be used as temporary leverage to negotiate lower tariffs from trading partners, or should they remain permanent fixtures of U.S. economic policy?

Perspectives:

• Angels (Supporters of Leverage): Advocate for using tariffs to extract concessions from other nations, aiming for a win-win trade deal that could stabilize the market.

  Quote:

  Ben Ferguson [07:28]: "This is a great opportunity to engage in let's make a deal here."

• Demons (Advocates for Permanency): Push for maintaining high tariffs indefinitely, viewing them as a primary source of economic revenue for the federal government.

  Quote:

  Ben Ferguson [10:46]: "If the outcome from these tariffs is really high tariffs from every country on earth... that is going to be really bad for Texas and really bad for America."

Responses from the International Community

In the wake of the tariff surge, over 50 countries, including Vietnam and Israel, have proactively reached out to the Trump administration seeking negotiations. These nations are keen to mitigate the economic disruptions caused by the new tariffs.

Historical Context:

• The shift of manufacturing from China to Vietnam, encouraged by President Trump, has led to significant trade deficits with Vietnam. The administration seeks to leverage these relationships to negotiate tariff reductions (08:53).

Quote:

Ben Ferguson [10:41]: "The leverage right now is massive. The question is, will the White House make the decision to use that leverage to try to lower foreign tariffs?"

Lawfare and Nationwide Injunctions Against Trump

A significant challenge facing the Trump administration is the surge in nationwide injunctions aimed at halting the President's policies. These legal maneuvers, often termed "lawfare," are predominantly driven by left-wing activists and judicial appointments from previous administrations.

Key Points:

• Volume of Injunctions: In just two months, over 50 nationwide injunctions have been filed against Trump’s policies, surpassing the total number issued during the entire tenures of Presidents George W. Bush, Barack Obama, and Joe Biden combined (28:14).
• Judicial Activism: These injunctions are seen as an abuse of judicial power, undermining the executive branch's ability to implement its agenda.

Quotes:

Ben Ferguson [27:46]: "It is an absolute abuse of power. It is worse than it has ever been."

Senator Ted Cruz [35:53]: "How long does that take? Can it be done through legislation? What are the options here and how quick can we get this under control?"

Solutions and Legislative Efforts

To combat the flood of nationwide injunctions, lawmakers like Senator Cruz are advocating for legislative solutions. One proposed measure involves removing the authority of district judges to issue such broad injunctions.

Legislative Proposals:

• Chuck Grassley's Bill: Aimed at curbing the power of district judges to issue nationwide injunctions. However, its passage is uncertain without bipartisan support.
• Impeachment of Judges: While technically possible, the likelihood of removing judges is slim due to the need for a two-thirds Senate majority, which is unattainable given current political alignments.

Quote:

Ben Ferguson [35:53]: "There could be value in impeaching one or more of these judges anyway to highlight the utter brazen lawlessness of it."

National Security and Trade with China

Beyond trade, national security concerns heavily influence the administration's stance on tariffs, particularly regarding China.

Critical Issues:

• Supply Chain Vulnerabilities: The COVID-19 pandemic exposed the U.S.'s dependence on Chinese supply chains, especially for pharmaceuticals and critical minerals essential for defense and technology.
• Geopolitical Threats: China is identified as the greatest geopolitical threat, necessitating actions to decouple economically and reduce strategic dependencies.

Quotes:

Ben Ferguson [25:34]: "China is the single greatest geopolitical threat America is facing for the next hundred years."

Senator Ted Cruz [25:34]: "Patience. Right. And I want a bonus question."

Conclusion

The episode underscores the complexity and high stakes of the current U.S. trade environment. President Trump's aggressive tariff strategy has both sparked economic turbulence and opened avenues for renegotiating international trade agreements. Concurrently, the administration faces formidable legal challenges aimed at stymieing its policies. As debates continue within Washington, the outcomes of these discussions will have profound implications for America's economic future and its standing on the global stage.

Notable Quotes with Timestamps:

• Senator Ted Cruz [01:50]: "We've seen over the last 50 years a hollowing out of manufacturing in America..."
• Ben Ferguson [07:28]: "This is a great opportunity to engage in let's make a deal here."
• Ben Ferguson [10:46]: "If the outcome from these tariffs is really high tariffs... that is going to be really bad for Texas and really bad for America."
• Ben Ferguson [27:46]: "It is an absolute abuse of power. It is worse than it has ever been."
• Ben Ferguson [35:53]: "There could be value in impeaching one or more of these judges anyway to highlight the utter brazen lawlessness of it."
• Ben Ferguson [25:34]: "China is the single greatest geopolitical threat America is facing for the next hundred years."

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