00:00 Speaker A
markets growing less responsive to ongoing trade talks and there's different views on why that may be. For more, let's get to Yahoo Finance's Washington correspondent. That would be, of course, Ben Worskol. Ben.
00:12 Ben Worskol
Hey, Josh. Yes. So this is the question, kind of one of the big questions of the month for markets is sort of why are markets shrugging off this, these tariff threats that I'm on with you pretty much every day to outline, they come kind of every day from Trump. It's a nuanced question for sure. Our colleague Josh Shafer has a smart look at the kind of China aspect of this. But what I'm looking at for a story tomorrow in Yahoo Finance is the White House view of this. And this is important for traders to know because it's essentially 180 degrees away from most of what you're going to hear on Wall Street. The White House case, which has, we've seen in evidence in recent days, and it's gotten sharper, kind of as markets continue to rise, is essentially that the signal we're getting here is that traders are okay with tariffs now. That the traders are saying that they understand what Trump is trying to do with tariffs and that the market reaction is, is, is, is, is, is reflecting that. You see a lot of skepticism from that on Wall Street, who kind of give the opposite view that traders, it's not like traders like tariffs now. They just don't believe Trump is going to follow through. But we're seeing this again and again. Treasury Secretary Scott Beson offered this morning that the markets understand what, what Trump is doing now, which is a clear contrast to April. Somebody's going to be wrong here. These are two sides, and this is, the question is kind of whether this question gets tested. The way it doesn't get tested is if Trump can follow through on different trade deals and lower rates via that route for him. We saw, we saw one pact with Indonesia today. But it does get tested if some of these, these trade deals don't go through, and then Trump is essentially empowered by this view that he, that, that, by not, by, by the market's not rising so far, maybe he can stand firm on tariffs and go forward. Put another way, does the market looking at the Taco trade essentially lessen the chance of Trump, of Trump chickening out? We're seeing some concerns on that front that maybe the markets are underpricing. You were talking about Jamie Diamond earlier. He's offered commentary on this. The markets are complacent in this. This is, this is going to be a big theme of the next few weeks as we get to this August 1st deadline.
04:30 Speaker A
Ben, just quickly, you mentioned Indonesia there. I want your take because Trump did say he reached this deal with Indonesia. It does sound like we have, have some specifics there. Ben, what are the details?
04:48 Ben Worskol
Yeah. So we have some specifics from the White House side on what this Indonesia pact brings forward today. Trump sketched it out to reporters and also on a truth social, two social posts. The headline here is a 19% tariff on Indonesian goods and from, and according to Trump, a 0% tariff on US companies trying to do business. As, as Trump put it, quote, full access to Indonesia. He added in true social that there's other aspects here, $15 billion in Indonesian purchases of US energy, four, four and a half billion dollars in American agriculture, and 50 Boeing jets. The key caveat here is that we do not have confirmation on this from the Indonesian side. This is a trend we've seen where Trump will announce a deal, and then the question is whether the other side has agreed to all the terms here. We saw a little bit of that with Vietnam. But either way, this is a clear indication that this is the sort of model he even, Trump even had a comment about this today, that this is the sort of outline of what he wants with these other deals. Essentially, somewhere around a 20% tariff on coming in, on product coming in, and then a 0% tariff on products going out. It's the sort of same parameters of what he laid out with Vietnam. So, so he's, it comes with sort of Trump is promising other trade deals again ahead of this August 1st deadline, in his view hoping to be kind of this be the, be the model going forward.
