00:00I'm turning to China. One thing that has definitely not fall on deaf ears is tariffs. He has said many times again. It's a beautiful word. You yourself said retailers should not be expected to eat the tariffs. What do you mean by that?
00:15Well, the president has been putting pressure on Walmart specifically when they came out saying, wait a second, maybe a third of our products are somehow sourced or components are sourced in China. And those prices going up will be passed through to consumers. So prices will go up. It'll be inflationary on prices. And he pushed back and said, no, you should eat it.
00:35Unfortunately, he can say that. But, you know, most businesses aren't going to eat it. They're just not going to do that. They may take some of the margin, but they're going to pass these prices on. And none of this has happened yet.
00:48You haven't seen this yet in any of the data because we basically have a pause in these tariffs. But by the time the 90 days is over, these prices will probably reflect a higher price point because of input costs.
01:01I mean, at the end of the day, this is very, very simple. These tariffs are no different than the price of sugar going up or coffee or cinnamon going into a carrot cake.
01:12It's going to be inflationary. And that's what Trump is trying to avoid, because the last thing he can afford now is to have energy prices spike on consumers or to have eggs and butter and milk skyrocket because of tariffs in some way.