Verdict with Ted Cruz: Tariffs – Angels & Demons Urging Either a Massive Free-Trade Victory or Perpetual Trade Barriers & Taxes

Release Date: April 7, 2025
Hosts: Senator Ted Cruz and Ben Ferguson
Produced by: Premiere Networks

1. Introduction

In this episode of "Verdict with Ted Cruz," hosts Senator Ted Cruz and Ben Ferguson delve into the contentious issue of tariffs imposed by President Donald Trump. They explore the immediate and long-term implications of these tariffs on the U.S. economy, international relations, and the political landscape. The discussion also addresses the surge in nationwide injunctions aimed at thwarting Trump's agenda, framing it as a modern form of lawfare.

2. The Rationale Behind Trump's Tariffs

Senator Cruz emphasizes that President Trump's decision to implement tariffs stems from a perceived decline in American manufacturing over the past five decades. "We've seen what used to be the heart of the American middle class, the heart of blue-collar jobs going away, being pulled abroad," Cruz explains (02:53). The tariffs are portrayed as a strategic move to reverse this trend by incentivizing companies to bring manufacturing back to the United States.

Key Points:

• Economic Revival: The tariffs aim to rejuvenate the manufacturing sector and restore blue-collar jobs.
• Trade Deficit Concerns: Highlighting the significant trade deficit with countries like Vietnam, which absorbed manufacturing jobs relocated from China (09:55).

Notable Quote:

"We've seen a hollowing out of manufacturing in America... President Trump was elected to fight for bringing those jobs back."
— Ben Ferguson (02:53)

3. White House Debate: Leverage vs. Permanent Tariffs

A central theme of the episode is the internal debate within the White House regarding the future of the tariffs. On one side, advisors advocate using tariffs as leverage to negotiate lower rates from trading partners. On the other, some argue for maintaining high tariffs indefinitely, potentially using them as a primary source of government revenue.

Key Points:

• Leverage Strategy: Using tariffs to secure better trade deals and reduce reciprocal tariffs from other nations.
• Permanent Tariffs: Proponents see tariffs as a lasting economic tool, albeit with significant drawbacks.

Notable Quotes:

"There are angels and demons on each of President Trump's shoulders urging him to use them as leverage or keep them forever."
— Ben Ferguson (03:00)

"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."
— Ben Ferguson (11:59)

4. International Reactions and Opportunity for Deals

The episode highlights the immediate international response to the new tariffs, noting that over 50 countries, including Vietnam and Israel, are seeking negotiations to mitigate the economic fallout. This surge in interest presents a "historic opportunity" for the U.S. to secure favorable trade agreements that could stabilize the stock market and benefit American workers.

Key Points:

• Negotiation Momentum: Countries are eager to negotiate, providing the U.S. with significant leverage.
• Potential Deals: Successful negotiations could lead to reductions in tariffs, benefiting both American consumers and exporters.

Notable Quote:

"There is a historic opportunity here. And if the White House capitalizes on this opportunity, it could prove to be one of the most significant, one of the most powerful moments for US Economic interest for American workers this country has ever seen."
— Ryan Seacrest (08:31)

5. Consequences of Maintaining High Tariffs

Senator Cruz warns of the potential negative repercussions if tariffs become permanent. These include increased costs for American consumers and businesses, exemplified by an auto manufacturer’s projection to raise car prices by $4,500 due to tariffs (14:29). Such outcomes could dampen economic growth and consumer spending, counteracting the intended benefits of the tariffs.

Key Points:

• Consumer Impact: Higher prices on goods, exemplified by the automotive industry.
• Economic Strain: Potential inflationary pressures and reduced competitiveness of American products abroad.

Notable Quote:

"If the outcome from these tariffs is... high tariffs... that is going to be really bad for Texas and really bad for America."
— Ben Ferguson (11:59)

6. Nationwide Injunctions: Lawfare Against Trump

The discussion shifts to the unprecedented rise of nationwide injunctions targeting President Trump's policies. Senator Cruz describes this phenomenon as "lawfare," a strategic use of legal systems to undermine Trump's administration. He underscores the severity by comparing the current surge in injunctions to those issued during previous administrations, asserting that "there have been more nationwide injunctions in the last two months than in the entirety of the previous 20 years" (29:48).

Key Points:

• Judicial Overreach: The use of injunctions to halt executive actions without direct involvement in specific cases.
• Political Weaponization: Allegations that left-wing groups and judges are selectively targeting Trump’s policies to impede his agenda.

Notable Quotes:

"It's an absolute abuse of power. It is worse than it has ever been."
— Ben Ferguson (29:48)

"These judges are issuing nationwide orders trying to stop everything President Trump is trying to do."
— Ryan Seacrest (32:33)

7. Strategies to Counteract Lawfare

Senator Cruz discusses potential remedies to address the misuse of nationwide injunctions. Legislative measures, such as the bill introduced by Chuck Grassley aiming to eliminate the power of district judges to issue such injunctions, are examined. However, Cruz remains pessimistic about its passage due to partisan hurdles. He also mentions impeachment as a long-shot strategy, given the improbability of Senate conviction without bipartisan support.

Key Points:

• Legislative Action: Proposed bills to restrict judicial overreach.
• Impeachment: Highlighted as a potential but unlikely avenue for removing obstructive judges.
• Public and Appellate Responses: Emphasizing the importance of public opinion and higher courts in countering judicial misuse.

Notable Quote:

"The remedy are, number one, the court of public opinion, making people understand just what an abuse of power this is. And number two, the appellate process, the courts of appeals and ultimately the Supreme Court."
— Ryan Seacrest (37:55)

8. National Security Concerns: The China Factor

Senator Cruz elaborates on the broader national security implications of economic dependencies, particularly focusing on China. He argues that China's control over critical supply chains and essential minerals poses a significant geopolitical threat. The COVID-19 pandemic is cited as a stark example of how reliance on Chinese manufacturing can jeopardize American public health and safety.

Key Points:

• Supply Chain Vulnerability: Dependence on China for essential goods and materials.
• Geopolitical Threat: China's strategic maneuvers against U.S. interests underscore the need for economic independence.

Notable Quotes:

"China is fighting a thousand-year war against the United States... China is the single greatest geopolitical threat America is facing for the next hundred years."
— Senator Ted Cruz (27:37)

"We need to move all of that out of China. We need to be able to stand on our own."
— Senator Ted Cruz (28:49)

9. Conclusion: The Path Forward

The episode concludes with a call to action for leveraging the current international interest in negotiating tariffs to secure advantageous deals for the U.S. economy. Senator Cruz underscores the importance of decisive leadership to navigate these complex trade dynamics and counteract the legal challenges impeding Trump’s policies.

Key Takeaways:

• Strategic Negotiations: Utilize global desperation to negotiate fairer trade terms.
• Judicial Reforms: Address the surge in nationwide injunctions to protect executive authority.
• Economic Independence: Continue efforts to reduce reliance on China for critical industries and supply chains.

Final Notable Quote:

"Everything we can do to delink from China is a good thing... We just need to make sure we're competing fairly."
— Senator Ted Cruz (27:13)

Notable Quotes with Timestamps

• Ben Ferguson (02:53):
  "We've seen a hollowing out of manufacturing in America... President Trump was elected to fight for bringing those jobs back."

• Ryan Seacrest (08:31):
  "There is a historic opportunity here. And if the White House capitalizes on this opportunity, it could prove to be one of the most significant, one of the most powerful moments for US Economic interest for American workers this country has ever seen."

• Ben Ferguson (11:59):
  "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."

• Ben Ferguson (29:48):
  "It's an absolute abuse of power. It is worse than it has ever been."

• Ryan Seacrest (37:55):
  "The remedy are, number one, the court of public opinion... And number two, the appellate process, the courts of appeals and ultimately the Supreme Court."

• Senator Ted Cruz (27:37):
  "China is fighting a thousand-year war against the United States... China is the single greatest geopolitical threat America is facing for the next hundred years."

Conclusion

This episode of "Verdict with Ted Cruz" provides an in-depth analysis of the strategic use of tariffs by the Trump administration, the internal debates surrounding their implementation, and the broader implications for the U.S. economy and national security. Additionally, it sheds light on the escalating use of nationwide injunctions as a tool to impede executive actions, framing it as a significant threat to democratic governance and policy execution. Senator Cruz and Ben Ferguson advocate for proactive negotiations and legislative reforms to navigate these challenges effectively, aiming to safeguard American economic interests and uphold the rule of law.