Interview
Lunch Program | Part 1: A Conversation with Wilbur L. Ross, Jr., Secretary, U.S. Dept. of Commerce
- Renegotiation of NAFTA is scheduled to commence immediately following Congressional acceptance of a letter authorizing 90 days of Trade Promotional Authority.
- Significant trade deliverables with China are anticipated within a 100-day window following the Mar-a-Lago summit.
- A 20% average tariff on Canadian softwood lumber is expected to rise, yet the resulting cost impact is projected to affect only about 30% of the lumber supply entering the U.S., avoiding a doubling of total lumber or housing costs.
- Home prices are expected to continue rising rapidly due to public enthusiasm and past underbuilding, as the tariff constitutes a relatively small fraction of the average house cost.
- GDP growth is not expected to see substantial impact in the current year due to the incomplete implementation of Obamacare repeal, the tax bill, and regulatory reforms.
- GDP growth is projected to exceed the 2% to 2.5% range in the first full year when all regulatory, energy, trade, and tax reforms are fully effective.
- Tax legislation is targeted for passage this year contingent upon Republican unity and the overcoming of Democratic opposition.
- Delays in nominations are attributed to political fears that successful reforms could become a decisive factor in the 2018 congressional race, leading to a slow-walking of the process.
- Business executives are reported as being very encouraged by the new administration, exhibiting heightened excitement compared to campaign rally events.
- Political obstacles include a lack of unity within the Republican Party and a heightened level of Democratic unity against the administration.
- The stock market is described as anticipating future economic developments by moving ahead of the actual economy.
- Custom slippers receiving media attention will be auctioned off for charity.