Verdict with Ted Cruz: BONUS POD: Make Tariffs Pause Again (Unless You're China) – April 10, 2025

In this compelling bonus episode of Verdict with Ted Cruz, host Ben Ferguson delves deep into the latest developments in U.S. trade policy, focusing on the recent escalation of tariffs against China and the strategic pause implemented on tariffs with other nations. This detailed analysis provides listeners with a comprehensive understanding of the White House's approach to "America First" in trade negotiations, the economic implications of these policies, and the broader geopolitical ramifications.

1. Introduction to the Tariff Escalation

The episode opens with Ben Ferguson addressing a significant shift in U.S. trade policy. He outlines the White House's decision to raise tariffs on China to 125%, a move aimed at countering what the administration perceives as unfair trade practices by China. Concurrently, a 90-day pause has been introduced on tariffs with other countries that have expressed interest in negotiating better trade deals with the United States.

Notable Quote:

"The White House said, we're going to work with you. Please come join us and be granted a temporary reprieve. However, the White House said, for those like China who want to retaliate after years of ripping America off, we will not bend and we will not break."
— Ben Ferguson [05:00]

2. White House Strategy and Negotiations

Ben Ferguson elaborates on the White House's strategy, emphasizing that the primary goal is to prioritize American jobs and industries. The administration is actively seeking negotiations with over 75 countries that are keen to establish more equitable trade relationships with the U.S. This outreach is designed to reward nations willing to engage in fair trade practices while firmly addressing those that have historically disadvantaged American interests.

Notable Quote:

"President Trump's goal is to supercharge the onshoring of American manufacturing."
— Ben Ferguson [04:30]

3. Statements from Key White House Officials

The episode features direct excerpts from communications by Treasury Secretary Scott Bessant and Press Secretary Caroline Levitt, providing listeners with unfiltered insights into the administration's stance.

Scott Bessant [05:05]:

"President Trump is going to punch back harder. In that same vein, we have had more than 75 countries from around the world reach out to President Trump and his team here at the White House to negotiate better trade deals for the American worker."

Caroline Levitt [06:10]:

"Every country in the world who wants to come and negotiate, we are willing to hear you. We're going to go down to a 10% baseline tariff for them. And China will be raised to 125 due to their insistence on escalation."

These statements underscore the administration's commitment to leveraging tariffs as a tool to renegotiate trade terms favorably for the U.S., while signaling a hardline stance against China.

4. Economic Impact and Job Growth

Ferguson highlights the positive economic indicators that the administration attributes to its trade policies. The March jobs report revealed the addition of 228,000 jobs, surpassing economists' predictions. Key sectors such as construction and transportation saw substantial growth, which the administration credits to aggressive onshoring initiatives and favorable trade agreements.

Notable Quote:

"The economy added 228,000 jobs in March, far exceeding the Economist's prediction of just 140,000 jobs added."
— Ben Ferguson [04:00]

5. Market Reactions and Wall Street Rally

The discussion shifts to the immediate market reactions following the tariff announcements. Ben Ferguson notes a massive rally on Wall Street, attributing it to investor confidence in the administration's ability to secure favorable trade deals and boost American industries. This surge reflects optimism that the tariffs will effectively safeguard American economic interests and stimulate domestic growth.

Notable Quote:

"There was a massive rally on Wall Street. Why? Because the President said those that are willing to work with us, they are going to go first and get great trade deals with America."
— Ben Ferguson [07:00]

6. Clarifications and Responses from Officials

During the episode, Ferguson poses critical questions to Secretary Levitt regarding the specifics of the tariff pause and its implications for countries like Mexico and Canada. Levitt clarifies that while China remains excluded from the 10% universal tariff, countries such as Mexico and Canada are included, signaling an inclusive approach towards allies willing to engage in fair trade.

Notable Exchange:

Ben Ferguson [07:05]:

"First of all, Mexico and China, are they part of this 10% universal?"

Caroline Levitt [07:15]:

"Well, China, no, China, Mexico and Canada."

Further, Scott Bessant rebuts media interpretations that suggest a shift towards favoring China, reaffirming that global sentiment is increasingly siding with the United States over China in trade matters.

Scott Bessant [08:36]:

"The entire world is calling the United States of America, not China, because they need our markets, they need our consumers, and they need this president in the Oval Office to talk to them."

7. Addressing Media Misconceptions

Ferguson criticizes the media for misinterpreting the administration's actions, arguing that the Trump administration is effectively enhancing America's trade position rather than undermining it. He asserts that the administration's assertive stance has led to increased international interest in negotiating with the U.S., contrary to media narratives suggesting a pivot towards China.

Notable Quote:

"No one creates leverage for himself like President Trump. This is a monumental moment and a great response that was well explained by the treasury secretary and the press secretary."
— Ben Ferguson [11:42]

8. Conclusion and Future Outlook

The episode wraps up with Ferguson emphasizing the administration's strategic advantage in trade negotiations, highlighting how the tariffs have isolated China economically while attracting other nations to seek favorable trade agreements with the United States. He reinforces the message that the Trump administration remains steadfast in its "America First" agenda, poised to continue advancing American economic interests on the global stage.

Notable Quote:

"As Caroline Levitt said a moment ago, you and the media got it wrong and the President got it right. You said people are going to run to China and now they're talking and running to America."
— Ben Ferguson [11:42]

Key Takeaways

• Tariff Increase on China: The U.S. has raised tariffs on China to 125% in response to ongoing trade disputes and what the administration views as unfair trade practices.

• 90-Day Tariff Pause: A temporary pause on tariffs with other countries allows for negotiations, aiming to establish fairer trade agreements.

• Economic Growth Indicators: The aggressive onshoring policy has contributed to substantial job growth, exceeding economic forecasts.

• Global Negotiations: Over 75 countries have expressed interest in negotiating trade deals with the U.S., reflecting growing international confidence in America's trade policies.

• Market Confidence: Wall Street's rally post-announcement signals investor optimism in the administration's trade strategies.

• Media Misinterpretation: The administration contends that media narratives are misrepresenting the effectiveness and intent of the new tariff policies.

This episode of Verdict with Ted Cruz provides an insightful analysis of the Trump administration's latest trade policies, highlighting strategic decisions aimed at bolstering the American economy and reshaping global trade dynamics. Through direct quotes and expert commentary, listeners gain a nuanced understanding of the complexities and anticipated outcomes of these significant policy shifts.