Live on Bloomberg TV

00:00AND HERE IS MATT, WHO IS LINING UP AGAINST THIS PROPOSED CHANGE? MATT: WALMART, TARGET, BEST BUY, BIG RETAILERS AND THE IMPORTERS LIKE NIKE, AUTOMAKERS, ENERGY COMPANIES, A PRETTY BIG, BROAD COALITION. THE WAY TO THINK ABOUT THIS IS BORDER ADJUSTMENT IS A BOXING MATCH, THE RETAILERS ARE THE ANTI-BAT, AND THE MORE PUBLICITY THEY HAVE GOTTEN, THE SENATE REPUBLICANS COMING OUT AGAINST IT, BUT IT HAS A LONG WAY TO GO. THE PRESIDENT HAS WEIGHED IN. IT IS UP FOR GRABS. DAVID: THE PRESIDENT HAS NOT WEIGHED IN. THEY HAD A MEETING ALREADY COULD HAVE SUCCESSFUL ARE THEY MAKING THEIR CASE -- ALREADY. HOW SUCCESSFUL ARE THEY MAKING THEIR CASE? MATT: ALL THE PEOPLE WE SPOKE TO, FROM THE RETAIL PERSPECTIVE, THIS IS THE BIGGEST LOBBYING EFFORT THEY HAVE SEEN. RETAILERS WERE NOT CARRIED ABOUT WHAT WAS GOING -- CARING ABOUT WHAT WAS GOING ON IN WASHINGTON DC, ALL OF A SUDDEN SPENDING A LOT OF MONEY. AFTER THE HEALTH CARE COLLAPSE, THE COLLAPSE OF THE REPEAL, A LOT OF PEOPLE SAID, MAYBE THE WHITE HOUSE WILL BE MORE SET OF WILLING TO CONSIDER THE IDEA THAT BORDER ADJUSTMENT IS A BAD IDEA, BECAUSE THERE IS SO MUCH OPPOSITION ALREADY. NOW A LOT OF CORPORATE AMERICA AGAINST IT, THE KOCH BROTHERS, THE CONSERVATIVE FUNDERS OF THAT MOVEMENT ARE AGAINST IT. THERE IS A LOT OF OPPOSITION AND THE WHITE HOUSE MIGHT SAY, LET'S JUST GRAPHIC -- SCARAP IT. DAVID: IN THE OTHER,, THOSE WHO FAVORITE, THEY SAY -- FAVOR IT, WHAT ARE THEY SAYING AND HOW WILL BENEFIT THE CONSUMER? MATT: THEY WANT TO BRING DOWN TAX RATES, THAT USUALLY GENERATES GROWTH. AND IT COULD INCENTIVIZE PEOPLE TO BUY MORE, BY MORE EXPORTS OR DOMESTIC MADE PRODUCTS, VERSUS EXPORTS WHICH WILL HAVE A TAX ON IT. PEOPLE WHO SUPPORT IT SAY THAT LINES UP WITH TRUMP'S CAMPAIGN SLOGAN, MAKE AMERICA GREAT AGAIN, AND HIS PROMISES, SO THE WHITE HOUSE, LED BY THE PRESIDENT THEY THINK WILL COME DOWN ON THE SIDE OF SUPPORTING

No schedule data available.

Big Retailers Line Up Against Proposed Border Tax

Bloomberg’s Matt Townsend discusses the battle lines in the debate over a proposed border tax adjustment. He speaks on “Bloomberg Markets.” (Source: Bloomberg)

More From Bloomberg Markets
All episodes and clips