I wanted to ask you, Mr. Hassett, about the tariffs on Brazil. Can you explain some of the thinking? I know that the president cited wanting to have the prosecution potentially of Bolsonaro being a key reason for it, but what would it take to lift those tariffs off Brazil?
The president will decide that and we're in active negotiations, which have a deadline, and we'll see how it goes.
But was the reasoning for those tariffs beyond the prosecution of Bolsonaro?
We'll see how it goes.
Do you have any reaction to the better than expected economic data coming out of China? Is that sort of the antithesis of what Trump's trade policy is going to do in terms of [Inaudible]
There's a lot of ambiguity about what the real data in China are. And I'd have to study the latest data to see if I believe it. But there certainly have been lots of reports, anecdotal reports of troubles in China. But to the extent that the global economy is responding positively to technological change, which we're seeing across the world because of better computers and so on, it might have been a positive thing for them, but I've not studied the Chinese data.
But a lot of it is based on the expansion of sort of non-US trading partners. I mean, is that --
We have normalized our trade relations with China over the last few months. There was something over here. Yeah.
You mentioned Brazil. Part of the reason you gave them [Inaudible] that national security threat now is [Inaudible] can you explain that a little bit more? How is Brazil [Inaudible]
Well, right now, we've got IEEPA for fentanyl and IEEPA for trade deficits. We're saying that both our national security threats and both of those authorities are being used by the president at this time. Over here.
[Inaudible] station. Is there anything you can discuss about sanctions being discussed with Russia right now?
There's nothing I can talk about that. Go ahead.
On the EU, Canada and Mexico, where do negotiations stand? Those countries have received letters, but there have been talks underway.
There are talks underway still and I think that the president has set a deadline so that everybody gets the clarity that you all crave by the beginning of August. I have time for one last question, please. OK.
President Trump was clearly upset against Spain at the [Inaudible] for the lack of commitment of [Inaudible] spending and he said he's negotiating directly with Spain on tariffs. Did that happen because [Inaudible] the EU and the [Inaudible]
Most of the trade policy in Europe is done through the EU, and so specific discussions with Spain, I'm not that briefed on. I apologize. We'll see. We've got a few weeks left. Thank you very much.
Thank you so much, Kevin.