5 Things Trump Said in the NY Times Interview that Relate to Supply Chain
A new President means new policy direction. This all has implications for US as well as global supply chains.
Today, the New York Times published the transcriptof one of the only interviews done with President Elect Trump since the election on the 8th. Given the limited amount of information on how the President Elect’s policies might impact supply chain and the headline-grabbing nature of this interview, we thought we’d go through the transcript and highlight the potions that have some relevancy for global supply chains.
Note:we haven’t added anything to these transcripts, but we have removed non-relevant components and have attempted to ‘depoliticize’ the passages by removing references to the campaign. Each part we have removed is marked by …[eft] and doesn’t include any parts of sentences. Consult the above link for the full unaltered transcript.
On the Competitiveness of American Businesses
JAMES BENNET, editorial page editor: When you say an open mind, you mean you’re just not sure whether human activity causes climate change? Do you think human activity is or isn’t connected?
TRUMP: I think right now … well, I think there is some connectivity. There is some, something. It depends on how much. It also depends on how much it’s going to cost our companies. You have to understand, our companies are noncompetitive right now.
They’re really largely noncompetitive. About four weeks ago, I started adding a certain little sentence into a lot of my speeches, that we’ve lost 70,000 factories since W. Bush. 70,000. When I first looked at the number, I said: ‘That must be a typo. It can’t be 70, you can’t have 70,000, you wouldn’t think you have 70,000 factories here.’ And it wasn’t a typo, it’s right. We’ve lost 70,000 factories.
We’re not a competitive nation with other nations anymore. We have to make ourselves competitive. We’re not competitive for a lot of reasons.
That’s becoming more and more of the reason. Because a lot of these countries that we do business with, they make deals with our president, or whoever, and then they don’t adhere to the deals, you know that. And it’s much less expensive for their companies to produce products. So I’m going to be studying that very hard, and I think I have a very big voice in it. And I think my voice is listened to, especially by people that don’t believe in it. And we’ll let you know.
BARBARO: Leaders of Brexit about wind farms that might interfere with the views of your golf course and how to keep, what structures, can you talk about that meeting, by the way?
TRUMP: Oh, I see. I might have brought it up. But not having to do with me, just I mean, the wind is a very deceiving thing. First of all, we don’t make the windmills in the United States. They’re made in Germany and Japan. They’re made out of massive amounts of steel, which goes into the atmosphere, whether it’s in our country or not, it goes into the atmosphere. The windmills kill birds and the windmills need massive subsidies. In other words, we’re subsidizing wind mills all over this country. I mean, for the most part they don’t work. I don’t think they work at all without subsidy, and that bothers me, and they kill all the birds. You go to a windmill, you know in California they have the, what is it? The golden eagle? And they’re like, if you shoot a golden eagle, they go to jail for five years and yet they kill them by, they actually have to get permits that they’re only allowed to kill 30 or something in one year. The windmills are devastating to the bird population, O.K. With that being said, there’s a place for them. But they do need subsidy. So, if I talk negatively. I’ve been saying the same thing for years about you know, the wind industry. I wouldn’t want to subsidize it. Some environmentalists agree with me very much because of all of the things I just said, including the birds, and some don’t. But it’s hard to explain. I don’t care about anything having to do with anything having to do with anything other than the country.
FRIEDMAN: Just so you know, General Electric has a big wind turbine factory in South Carolina. Just so you know.
TRUMP: Well that’s good. But most of ‘em are made in Germany, most of ‘em are made, you know, Siemens and the Chinese are making most of them.
TRUMP: They may assemble — if you check, I think you’ll find that the, it’s delivered there and they do most of the assembly.
The Impact of Automation on Jobs
FRIEDMAN: Are you worried, though, that those companies will keep their factories here, but the jobs will be replaced by robots?
TRUMP: They will, and we’ll make the robots too.
TRUMP: It’s a big thing, we’ll make the robots too. Right now we don’t make the robots. We don’t make anything. But we’re going to, I mean, look, robotics is becoming very big and we’re going to do that. We’re going to have more factories. We can’t lose 70,000 factories. Just can’t do it. We’re going to start making things.
I was honored yesterday, I got a call from Bill Gates, great call, we had a great conversation, I got a call from Tim Cook at Apple, and I said, ‘Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.’ He said, ‘I understand that.’ I said: ‘I think we’ll create the incentives for you, and I think you’re going to do it. We’re going for a very large tax cut for corporations, which you’ll be happy about.’ But we’re going for big tax cuts, we have to get rid of regulations, regulations are making it impossible. Whether you’re liberal or conservative, I mean I could sit down and show you regulations that anybody would agree are ridiculous. It’s gotten to be a free-for-all. And companies can’t, they can’t even start up, they can’t expand, they’re choking.
I tell you, one thing I would say, so, I’m giving a big tax cut and I’m giving big regulation cuts, and I’ve seen all of the small business owners over the United States, and all of the big business owners, I’ve met so many people. They are more excited about the regulation cut than about the tax cut. And I would’ve never said that’s possible, because the tax cut’s going to be substantial. You know we have companies leaving our country because the taxes are too high. But they’re leaving also because of the regulations. And I would say, of the two, and I would not have thought this, regulation cuts, substantial regulation cuts, are more important than, and more enthusiastically supported, than even the big tax cuts.
SULZBERGER: We’ll go with that. I’d like to move to infrastructure, apologies, and then we’ll go back. Because a lot of the investment you are talking about, a lot of the jobs you are talking about — is infrastructure going to be the core of your first few years?
TRUMP: No, it’s not the core, but it’s an important factor. We’re going for a lot of things, between taxes, between regulations, between health care replacement, we’re going to talk repeal and replace. ’Cause health care is — you know people are paying a 100 percent increase and they’re not even getting anything, the deductibles are so high, you have deductibles $16,000. So they’re paying all of this money and they don’t even get health care. So it’s very important. So there are a lot of things. But infrastructure, Arthur, is going to be a part of it.
SULZBERGER: It’s part of jobs, isn’t it?
TRUMP: I don’t even think it’s a big part of it. It’s going to be a big number but I think I am doing things that are more important than infrastructure, but infrastructure is still a part of it, and we’re talking about a very large-scale infrastructure bill. And that’s not a very Republican thing — I didn’t even know that, frankly.
SULZBERGER: It worked for Franklin Roosevelt.
TRUMP: …[eft] I have a friend, he’s a big trucker, one of the biggest. And he orders these incredible trucks, the best, I won’t mention the name but it’s a certain truck company that makes — they call them the Rolls-Royce of trucks. You know, the most expensive trucks. And he calls me up about two months ago and he goes, ‘Man, I’m going to buy the cheapest trucks I can buy.’ And I said, ‘Why?’ and — you know, and this is the biggest guy — he goes, ‘My trucks are coming back, they’re going from New York to California and they’re all busted up. The highways are in such bad shape, they’re hitting potholes, they’re hitting everything.’ He said, ‘I’m not buying these trucks anymore, I’m going to buy the cheapest stuff and the strongest tires I can get.’ That’s the exact expression he used, ‘the cheapest trucks and the strongest tires.’
We’re hitting so many bad points, we, you know, I said, ‘So tell me, you’ve been doing this how long?’ 45 years. He built it over 45 years. I said, ‘Have you ever seen it like this?’ He said, ‘The roads have never been like this.’ It’s an interesting …
eft’s Two Cents
- The interview creates more questions than it answers. For example, how is the US going to find enough talent to realistically become a leader in robotics in a matter of years? How much of a tax incentive will the government have to provide the likes of Apple to build factories on US soil?
- The President Elect is clearly actively engaging business leaders on what it will take to get them to bring jobs back to the US.
- Jobs and a favourable business climate seem to be top priorities for the President Elect.
- Infrastructure investments seem to be getting pushed down the priority list.