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00:00I GUESS I WANT TO START WITH THE TONE FROM THE PRESIDENT REMAINS RELATIVELY PROTERRA -- PROTERRA. HE TWEED -- PROTER ARRIF. HE TWEETED YESTERDAY THAT TARIFFS MADE THIS COUNTRY. > > TARIFFS WERE PART OF A TRADE EXPANSION ACT THAT PUT IN A PROVISION FOR NATIONAL SECURITY AND DEFENSE TO PROTECT AMERICA AGAINST ABUSE IN INDUSTRIES AND SO FORTH WHERE WE NEEDED NATIONAL DEFENSE. THE SECRETARY OF COMMERCE THIS LAST SUMMER COMPLETELY DEBUNKED THE TRADE WITH KAREN -- WITH CANADA. THIS LAST WEEK, THE PRESIDENT, IN HIS TWEETS, THREATENING TO IMPOSE AUTO TARIFFS IF IN FACT HE DOES NOT GET THE NAFTA DEAL HE IS LOOKING FOR, USING CANADA IN PARTICULAR IN THAT. THREAT IT COMPLETELY GOES AGAINST THE RATIONALE THAT 232 WAS PUT IN PLACE FOR AND SENATOR CORKER WORKED HARD TO BRING NOTICE TO THAT TO THE SENATE. I THINK HE IS ABUSING THEIR AUTHORITY THAT WAS GIVEN UNDER 232 FOR HIS OWN PERSONAL OUTCOMES, WHETHER IT IS WITH TURKEY OR WITH CANADA OR MEXICO, TO GO AHEAD AND GO AFTER ALLIES TO ACHIEVE OTHER GOALS, OTHER GOALS THAN NATIONAL DEFENSE. IT FLIES IN THE FACE OF WHAT THIS WHOLE LEGISLATION WAS PUT IN PLACE FOR FROM THE BEGINNING. AMANDA: THERE IS A SENSE THAT, ONCE WE GET A DEAL BETWEEN MEXICO AND THE U.S. ON AUTOS, EVERYONE IS BACK AT THE TABLE. THERE ARE A COUPLE OF. KEY POINTS THAT WILL BE STICKY ISSUES. IF YOU ARE ADVISING THE CANADIAN GOVERNMENT, DO YOU SAY IT'S TIME TO BACK DOWN ON SUPPLY MANAGEMENT OR IS THERE A SUNSET CLAUSE IN THIS DEAL? > > I WOULD FIND HOUSE TO GET THIS DEAL DONE -- FIND PATHS TO GET THIS DEAL DONE. BUT SINCE THE PRESIDENT WON HIS ELECTION AND CANADA AND MEXICO CAME TO SEE HIM IN THE TRANSITION PERIOD TO SAY WE ARE READY TO NEGOTIATE AND UPDATES NAFTA, THE WHOLE RATIONALE FOR THIS NOT GETTING DONE UP TO THIS POINT IS THE U.S. KEEPS PUTTING IN ROADBLOCKS THAT ARE NO GO ZONES. A SUNSET CLAUSE MAKE SNOW SENSE WHATSOEVER. BUSINESSES IN THE UNITED STATES WOULD NEVER INVEST FOR THE LONG TERM BASED ON A FIVE-YEAR SUNSET PROVISION. WITHOUT A DISPUTE RESOLUTION BASED ON CHAPTER 19, COMPANIES AND COUNTRIES WILL BE AT A SIGNIFICANT DISADVANTAGE. THERE ARE PATHS TO SUCCESS AND THERE IS GIVE-AND-TAKE. WE SAW IN TPP NEGOTIATIONS THAT THEY CANADIANS GAVE ADDITIONAL ACCESS. WE KNOW THERE IS ROOM WITHOUT GETTING RID OF SUPPLY MANAGEMENT OVERALL. BUT EVERYBODY SHOULD REMEMBER, PRIOR TO JUNE 1, WHEN THE U.S. PUT IN STEEL AND ALUMINUM TARIFFS WITH CANADA, 99% PLUS TRADE WITH CANADA WAS DUTY-FREE. SO THE PRESIDENT MAKING THESE POINTS ON DAIRY, WHICH IS LESS THAN ONE PERCENT AND USING THAT AS A TOUCH POINT, IT IS JUST A RUSE. I DON'T KNOW THAT HE HAS DEMONSTRATED YET THAT HE REALLY WANTS A NAFTA DEAL. SHERY: ON SECTION 232, SON SENATORS ARE LOOKING TO SEND THE AUTHORITY TO -- PSALM -- SOME SENATORS ARE LOOKING TO SEND THE AUTHORITY TO THE DEFENSE DEPARTMENT. DOES THAT MAKE SENSE TO YOU? > > IF YOU'RE TALKING ABOUT THIS BEING A RISK TO NATIONAL DEFENSE. BACK WHEN THIS LEGISLATION WAS FIRST PUT IN PLACE, HAVING THAT MORE SPECIFICALLY LAID OUT IS NOT A BAD THING. JUST BECAUSE THE PRESIDENT IS MAD THAT THEY HAVE NOT RELEASED A PRISONER, AN AMERICAN PRISONER IN TURKEY, TO DOUBLE THE TARIFFS ON STEEL AND ALUMINUM WHEN ACTUAL SALES FROM TURKEY HAVE PLUMMETED THIS YEAR DEMONSTRATES HE IS NOT USING IT FOR NATIONAL DEFENSE. D IS USING IT FOR HOSTILE ACTS TO ACHIEVE GOALS -- HE IS USING IT FOR HOSTILE ACTS TO ACHIEVE GOALS. THE SENATE NEEDS TO GET INVOLVED RIGHT AWAY. AMANDA: WHEN AND HOW SHOULD CONGRESS STEP IN TO GET A DEAL DONE? > > IF THE PRESIDENT GOES TO TAXING AUTOMOBILES AND AUTO PARTS, WE WILL HAVE A BRIDGE TOO FAR, I. WE HAVE SEEN -- I THINK. WE HAVE SEEN FROM THE AUTO INDUSTRY, TRUMP SENATORS AND CONGRESSMEN, FROM BUSINESS LEADERS, FROM OUR ALLIES, THIS WOULD BE DAMAGING ACROSS THE BOARD. IF HE CROSSES THAT LINE, THE

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Trump's Pro-Tariff Stance Is Alarming, Former Amb. Heyman Says

Bruce Heyman, former U.S. ambassador to Canada, discusses the ongoing Nafta negotiations with Bloomberg's Shery Ahn and Amanda Lang on "Bloomberg Markets." (Source: Bloomberg)

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