00:00Mr. Secretary, why do people assume this is the last war?
00:04The President began this morning saying, be cool, five hours later, he announces a new policy.
00:09Why will investors in the market assume that this is it?
00:12Because, again, as I said, we've given 90 days, and the only certainty we can provide
00:19is that the U.S. is going to negotiate in good faith, and we assume that our allies will too.
00:24And in terms of certainty, we will see what China does, but what I am certain of is that
00:33what China is doing will affect their economy much more than it will ours, because they have
00:40an export-driven, flood-the-world with cheap export models, and the rest of the world now
00:47understands, because when we put up our tariff wall, those exports were already flowing to
00:53the rest of the G7 and to the Global South.
00:56Mr. Secretary, how much of this decision was driven by the bond market cratering overnight?
01:03What is happening with China selling their bonds?
01:06I have nothing that says that, and we actually had quite a good 10-year auction today, and
01:12all this was, again, this was driven by the President's strategy.
01:16He and I had a long talk on Sunday, and this was his strategy all along, and that, you know,
01:24you might even say that he goaded China into a bad position.
01:29They responded.
01:31They have shown themselves to the world to be the bad actors, and we are willing to cooperate
01:37with our allies and with our trading partners who did not retaliate.
01:42It wasn't a hard message.
01:44Don't retaliate.
01:45Things will turn out well.
