Trump’s Tariff Shake-Up. Newsom’s Surprising Pivot, Censure Fallout Escalates: AM Update 3/7

Summary

The Megyn Kelly Show: Trump’s Tariff Shake-Up, Newsom’s Surprising Pivot, Censure Fallout Escalates

Release Date: March 7, 2025

---

Introduction

In this episode of The Megyn Kelly Show, host Megyn Kelly delves into a range of pressing political and economic issues shaping the current landscape. The discussion centers on President Trump's recent tariff adjustments, California Governor Gavin Newsom's unexpected stance on transgender athletes in sports, and the escalating fallout from the censure of Texas Congressman Al Green. Through insightful commentary and expert opinions, Kelly provides a comprehensive AM update on these significant developments.

---

Trump’s Tariff Shake-Up

President Trump has recently made strategic moves concerning tariffs, temporarily pausing some on Mexican goods until April 2. This decision affects products under the U.S.-Mexico-Canada Trade Agreement (USMCA), a replacement for NAFTA initiated during Trump's first administration. Trump justified the pause as an "accommodation and out of respect for President Sheinbaum," emphasizing ongoing efforts to address border security and fentanyl trafficking.

Economic Reactions and Market Impact

The market has reacted negatively to Trump's fluctuating tariff policies, leading to a noticeable slide. As Commerce Secretary Howard Lutnick voiced on CNBC, there appears to be confusion regarding the administration's tariff strategy:

• Howard Lutnick [04:13]: “You’ve got to be kidding me. The President knows exactly what he wants. We know exactly what he wants, and our job is to try to execute exactly what he wants.”

Despite Lutnick's assertions, the inconsistency in tariff implementation has raised concerns among economists and the public alike. A YouGov poll highlighted a stark partisan divide, with 68% of Republicans supporting a 25% tariff on Mexico compared to only 11% of Democrats.

Impact on American Consumers

Critics argue that Trump's tariffs are counterproductive, increasing costs for American consumers and businesses. Economist Vance Ginn noted in the Courier Journal:

• Vance Ginn: “A trade deficit is not a sign of economic weakness. It reflects strong capital inflows and consumer purchasing power. Trying to fix it with tariffs only distorts markets and raises costs.”

Scott Bessant, Treasury Secretary, outlined the administration's rationale, emphasizing the need to protect American industries and leverage the country's significant purchasing power to negotiate better trade terms:

• Scott Bessant [04:54]: “President Trump believes three things. One, it is a good source of revenues. Two, it protects our important industries and the employees. And three, he uses it for negotiating.”

Bessant further elaborated on the strategic importance of reducing dependency on China for mineral processing:

• Scott Bessant [05:51]: “China still processes 85%... Every time a plant... tries to stand up a processing facility outside of China, China drops their prices and puts them out of business. That’s unacceptable.”

Despite public bravado from Chinese officials threatening retaliation, behind-the-scenes analyses suggest that China fears the long-term economic repercussions of a trade war, which could severely destabilize its economy reliant on U.S. demand.

---

Governor Gavin Newsom’s Surprising Pivot

In a notable departure from his party, California Governor Gavin Newsom has publicly stated that allowing biological males to compete in girls' sports is unfair. This stance was articulated during his appearance alongside conservative commentator Charlie Kirk on Kirk's new podcast.

• Howard Lutnick [10:08]: “I completely agree with you on that. So that's easy to call out the unfairness of that.”

Newsom’s position has ignited significant backlash within the Democratic Party. A joint statement from the California Assembly and State Senate LGBTQ Caucus expressed deep frustration and disappointment:

• California Assembly and State Senate LGBTQ Caucus: “We woke up profoundly sickened and frustrated by these remarks.”

This marks a continued trend of Newsom distancing himself from traditionally left-leaning policies. Earlier in the year, he vetoed a bill banning California prisons from cooperating with ICE, raising speculation about his broader political ambitions and potential bids for higher office in 2028.

---

Censure Fallout: Congressman Al Green

The episode also covers the contentious censure of Texas Congressman Al Green following his outburst during President Trump's joint address. The House of Representatives moved forward with the censure resolution, supported by only 10 Democrats alongside Republicans, passing with a vote of 224 to 198. This move signifies a rare bipartisan reprimand and has set off a chain reaction within Congress.

Consequences and Further Actions

Republican Congressman Andy Ogles from Tennessee has initiated resolutions to remove the participating Democrats from their committee assignments, citing unprofessional behavior:

• Andy Ogles: “If you want to act like a child in the halls of Congress, you will be treated like a child.”

The House Freedom Caucus has also filed a similar resolution against Congressman Green, with votes expected in the following week. Meanwhile, cultural repercussions are unfolding as Lin-Manuel Miranda has pulled Hamilton from its upcoming run at the Kennedy Center. This decision is a direct response to President Trump's appointment of Rick Grinnell as the interim executive director, aiming to align the center's values with the "America First" agenda.

• Jeffrey Seller: “It became untenable for us to participate in an organization that had become so deeply politicized.”

Rick Grinnell has dismissed Miranda’s actions as a "publicity stunt" unlikely to sway Republican attendance:

• Rick Grinnell: “Americans See you Lin.”

---

Conclusion

In this episode, Megyn Kelly effectively navigates through complex political developments, providing insightful analysis and highlighting the implications of Trump's tariff policies, Newsom's political maneuvers, and the significant repercussions of Congressman Green's censure. The episode underscores the deepening partisan divides and the intricate interplay between political decisions and their broader societal impacts.

---

Notable Quotes

• Donald Trump [00:09]: “We just weren't treated right. We were ripped off as a country. I've been saying it for a long time.”

• Howard Lutnick [04:13]: “You've got to be kidding me. The President knows exactly what he wants.”

• Vance Ginn [05:11]: “A trade deficit is not a sign of economic weakness. It reflects strong capital inflows and consumer purchasing power.”

• Scott Bessant [05:51]: “China still processes 85%... That’s unacceptable.”

• Howard Lutnick [10:08]: “I completely agree with you on that.”

• Andy Ogles [N/A]: “If you want to act like a child in the halls of Congress, you will be treated like a child.”

---

For more insights and updates, tune into The Megyn Kelly Show live on SiriusXM Triumph Channel 111 or stream on YouTube and all major podcast platforms.

Transcript

[Megyn Kelly]

Good morning, everyone. I'm Megyn Kelly. It's Friday, March 7, 2025, and this is your AM update.

[Donald Trump]

We just weren't treated right. We were ripped off as a country. I've been saying it for a long time.

[Megyn Kelly]

President Trump temporarily pausing some tariffs on Mexico, but promising the relief stops for every country come April 2. China publicly challenges Trump's tariff threats. But what's really happening behind the scenes.

[Howard Lutnick]

So that's easy to call out the unfairness of that.

[Megyn Kelly]

California Governor Gavin Newsom breaking ranks with Democr Democrats calling boys and girls sports unfair. Is the sudden dose of common sense a sign of larger political ambitions? Texas Congressman Al Green censured for his outburst, but that's not the end of the story. Dozens of other Democrats now at risk of losing their committee assignments. All that and more coming up in just a moment. On your AM Update.

[Jennifer Tse]

When it comes to grocery shopping and meal planning, it's often stressful and time consuming. Between busy schedules and personal demands, finding the time to shop, plan meals, or cook healthy dishes from scratch is challenging. On top of that, maintaining special dietary needs and health goals can feel overwhelming. But now there's Hungry Root, the easiest way to eat healthy. Hungryroot acts as a personal shopper and nutritionist. Combined, it handles everything from weekly grocery shopping to meal planning, offering personalized recommendations based on individual tastes, personal preferences and health goals. From smoothies and snacks to full meals, all offerings are healthy with no artificial sweeteners or preservatives. Only top quality ingredients are used, making healthy eating easy and delicious. Take advantage of this exclusive offer for a limited time, get 40% off your first box, plus get a free item in every box for life. Hungryroot.com MK use the code MK hungryroot.com MK code MK to get 40% off your first box and a free item of your Choice for Life. Hungryroot.com MK Code MK.

[Megyn Kelly]

President Trump pausing some tariffs on Mexico until April 2 when reciprocal tariffs kick in for everyone. All Mexican goods under the U. S Mexico Canada Trade Agreement signed under the first Trump administration to replace NAFTA granted reprieve. President Trump posting to Truth Social quote I did this as an accommodation and out of respect for President Sheinbaum. Our relationship has been a very good one and we are working hard together on the border, both in terms of stopping illegal aliens from entering the United States and likewise stopping fentanyl. The market's continuing to slide in reaction to the back and forth actions President Trump reacting to the market drop from the oval.

[Donald Trump]

Well, a lot of them are globalist countries and companies that won't be doing as well because we're taking back things that have been taken from us many years ago. We've been treated very unfairly as a country. We protect everybody. We do everything for all these countries. And a lot of these are globalist in nature. You know, they have. If you're outside of the United States, it's going to be a little bit different. We just weren't treated right. We were ripped off as a country. I've been saying it for a long time.

[Megyn Kelly]

Democrats highly critical of the tariffs, arguing the economic uncertainty is harming their constituents.

[Jennifer Tse]

His tariffs on allies like Canada will raise prices on energy, lumber and cars.

[Scott Bessant]

Average American families can expect that these Trump tariffs are going to cost them about $2,000 annually. So considering the president ran on a platform of bringing down costs, he seems to be doing exactly the opposite.

[Megyn Kelly]

Trump started this. This is not only going to put, you know, pain and suffering for Canadian families. It's also going to be for Minnesota families and families all across the United States. Public support for tariffs falling along party lines. An Economist YouGov poll showing 68% of Republicans support a 25% tariff on Mexico versus only 11% of Democrats. On CNBC, Commerce Secretary Howard Lutnick pressed about the seemingly chaotic thinking of the White House. First, the tariffs were announced, then paused, then implemented, now paused again in some capacity. Are you unsure of what President Trump wants?

[Howard Lutnick]

I speak to him all the time. You've got to be kidding me. The President knows exactly what he wants. We know exactly what he wants, and our job is to try to execute exactly what he wants. You communicated fully with your counterparts in Mexico and Canada, for example, exactly what the President wants. I assume like yesterday and the day before yesterday, of course, like, come on.

[Megyn Kelly]

Mr. Lutnick telling NBC this month it's all about fentanyl. But beginning April 2, attention turns to busting down trade barriers throughout the world, especially with China. At the Economic Club of New York, Treasury Secretary Scott Bessant laying out the fuller strategy with President Trump's upcoming tariff wars.

[Scott Bessant]

I know it's what President Trump believes. He believes three things. One, it is a good source of revenues. Two, it protects our important industries and the employees. And three, he's added the third leg to the stool and he uses it for negotiating.

[Megyn Kelly]

The popular argument against the Trump tariffs, even from right wing economists, is their attacks on American consumers and increased costs on American businesses. Economist Vance Ginn, who worked in the OMB in the first Trump administration, writing in the Courier Journal Quote, a trade deficit is not a sign of economic weakness. It reflects strong capital inflows and consumer purchasing power. Trying to fix it with tariffs only distorts markets and raises costs. President Trump argues that global free trade doesn't really exist because countries like China with authoritarian governments don't play fair. More from Secretary Bessant.

[Scott Bessant]

We can accumulate all of the strategic mineral deposits that we need, but China still processes 85%, does 85% of the processing. And every time a plant, every time a private sector company tries to stand up a processing facility outside of China, China drops their prices and puts them out of business.

[Donald Trump]

Right.

[Scott Bessant]

There are several in the United States that are just sitting idle because the Chinese saw what was happening and dropped it. And that's unacceptable.

[Megyn Kelly]

The US is the largest importer in the world, purchasing 4.1 trillion worth of goods and services last year from everywhere else. Mr. Trump believes the US can leverage that massive purchasing power to force other countries to bend to his will. Americans have a lot of money to spend. If you want access to this market, you either deal with a tariff or build your factory here. Secretary Lutnick spells it out on cnbc.

[Howard Lutnick]

If you want to buy things from other countries and you want to bring it into America, then the price is going to rise. But if you make it here, then of course the price won't rise. So make it here. Apple, who builds it all in China? Why are they building it all in China and giving us our iPhone? Why don't they make it here? Wages are lower over there and now there are robots who can do it. You're going to see robotic production of iPhones and the jobs that are going to be created. These are great high paying jobs and you don't need a college education to do it. This is the recreation of tradecraft in the United States of America. And Donald Trump is on it. He's bringing it back.

[Megyn Kelly]

Publicly, the Chinese are responding to tariff threats with bravado. A Chinese Foreign Ministry spokesman saying late Tuesday, if war is what the US wants, be it a tariff war, a trade war, or any other type of war, we're ready to fight to the end. The Wall Street Journal reporting. Behind the scenes, China's worried they can't win a trade war. The Journal writing quote, the vision haunting Xi is one where China finds itself cut off by trade restrictions and sanctions, suffering Soviet style isolation, with fewer outlets for its goods and limited access to crucial technologies. China's economy depends on US demand. Last year the US imported 439 billion worth of goods from China one of their top sources of revenue. Losing that access would not just hurt, it could destabilize China's economic foundation. And that's what President Trump is gambling on. Coming up, California Governor Gavin Newsom bucks his party and actually agrees that biological males playing against girls in sports is unfair. What? What's behind this sudden dose of common sense and the censure of Texas Congressman Al Green may only be the same start of the fallout resulting from his outburst at President Trump's joint address.

[Jennifer Tse]

You might have heard about the new brand called XXXY Athletics. They're the only athletic brand that is standing up for women's sports. It was founded by former elite gymnast and longtime Levi's executive Jennifer Tse. Jennifer was the first gymnast to speak out about the abuse in women's gymnastics. And then she pushed back on lockdowns and closed schools during COVID and for that she was canceled by corporate America. So she started her own brand, XXXY Athletics. And this is the only athletic brand that actually knows men cannot become women.

[Megyn Kelly]

Amazing.

[Jennifer Tse]

And the fight is not over, folks. The brand's not a gimmick. They make world class products including super soft sweats and performance wear, including leggings and workout tees that hold up to the toughest workouts. Go to TheTruthFits.com to check it out. Use the code MK20 and that'll get you 20% off TheTruthFits.com and the code MK20. Support brands that align with your values. TheTruthFits.com, code MK20.

[Megyn Kelly]

California Governor Gavin Newsom breaking ranks with fellow Democrats on the debate over transgender participation in sports. The governor joined by conservative Turning Point USA founder Charlie Kirk in the first episode of his new podcast, weighing in on the issue.

[Scott Bessant]

Would you do something like that?

[Jennifer Tse]

Would you say no men in female sports?

[Howard Lutnick]

Well, I think it's an issue of fairness. I completely agree with you on that. So that's easy to call out the unfairness of that.

[Megyn Kelly]

The governor's policies when it comes to so called trans children have been downright radical. Last week, every single Senate Democrat voted against Advancing the Protection of Women and Girls in Sports Act, a bill banning men's participation in women's sports. A January New York Times poll shows 70% of Democrats are against allowing biological males into women's leagues. House Minority Leader Hakeem Jeffries, who also voted against the bill, stumbled in his response to Governor Newsom's new stance.

[Scott Bessant]

I want to ask about California Governor Gavin Newsom's comments saying that Democrats were in the wrong for allowing transgender athletes to compete in female and girls sports. What is your response to that? After Democrats had opposed the women and girls in sports? I haven't seen his comments. What Democrats opposed was unleashing sexual predators on girls throughout the United States of America.

[Megyn Kelly]

Reaction from Governor Newsom's fellow Democrats ranging from anger to disappointment. A joint statement from the leaders of the California assembly and State Senate LGBTQ Caucus saying, quote, we woke up profoundly sickened and frustrated by these remarks. It's not the first time in recent weeks the governor rejected far left policies. In February, Mr. Newsom vowed to veto a bill banning California prisons from cooperating with ICE the moderate pivot, leaving many suspicious that Governor Newsom is eyeing a title bump come 2028. Democrat Congressman from Texas Al Green officially censured by the House of Representatives for his outburst during President Trump's joint address. Ten Democrats joining with Republicans to reprimand the congressman in a final vote of 224 to 198. Just 10 Democrats. Once the censure resolution is passed, the offending party is to stand before the chamber while the resolution is read. A group of several dozen Dems staging a protest of their own. Representative Al Green be censured with public reading of this resolution by the Speaker. The House had come to order. The House had come to order. That cacophony drowning out Speaker Johnson an attempt at singing the civil rights anthem We Shall Overcome. Congressman Green standing front and center waving his cane like a conductor. Speaker Johnson banging the gavel multiple times. Eventually forced to call a recess in response, Republican Congressman from Tennessee Andy Ogles filing a resolution to remove participating Democrats from their committee assignments. Mr. Ogles posting on X quote, if you want to act like a child in the halls of Congress, you will be treated like a child. The House Freedom Caucus filing a similar resolution against Congressman Green seeking to oust him from his committee assignments as well. A vote on that is expected next week. The speaker has not yet commented. Liberal darling Lin Manuel Miranda pulling musical Hamilton from its upcoming run at the Kennedy Center. The move comes in response to President Trump's dismissal of the entire board and his naming of staunch ally Rick Grinnell as its interim executive director. Mr. Grinnell tasked with ensuring the Kennedy center promotes values, aligning with the America first vision. Mr. Miranda, along with lead producer Jeffrey Seller, telling the New York Times, the show must not go on. Mr. Seller stating, quote, it became untenable for us to participate in an organization that had become so deeply politicized. The Kennedy center, opening in 1971 to serve as the National Cultural center of the U.S. in 2024, there were at least three drag events hosted in the space. In 2019, the center named Mark Bamuthi Joseph vice president and artistic director of social impact. In 2017, prior to that appointment, the Kennedy center commissioned Mr. Joseph to write the play Pelota. The Boston Globe called that show, quote, a poetic and impassioned meditation on race, on racism and on the experience of immigration. Rick Grinnell responding to Lin Manuel Miranda on X. This is a publicity stunt that will backfire. It's clear he and seller don't want Republicans going to their shows. Americans See you Lynn. And that'll do it for your AM Update, I'm Megyn Kelly. Join me back here for the Megyn Kelly show live on SiriusXM Triumph Channel 111 at noon east on YouTube.com megankelly and on all podcast platforms.

[Jennifer Tse]

For 140 years, MultiCare has been in Washington prioritizing long term solutions, partnering with local communities and expanding access to care. Together, we're building a healthier future.

[Megyn Kelly]

Learn [e-mail].