“Never Rule Anything Out With Trump:” WH Reporter on China Trip

>> AS WE HAVE SAID IT HAS BEEN 10 YEARS SINCE PREISDENT TRUMP FIRST VISITED CHINA IN 2017 IN THAT TIME A LOT HAS CHANGED BETWEEN THE WAR IN IRAN, TARIFFS, TERROR ON AND MANY TECH LEADERS WONDERING WHAT ISSUES TRUMP AND THE CHINESE PRESIDENT WILL PRIORITIZE DURING THIS TRIP WHITE HOUSE CORRESPONDENT TYLER PAGER WALTER ISAACSON TO DISCUSS WHICH GLOBAL ISSUES COULD INFLUENCE THE MEETING AND WHAT TRUMP MIGHT BE HOPING TO ACHIEVE.

>> THANK YOU AND WELCOME TO THE SHOW.

INFLATION SHOT UP 3.8% EXCEEDING EXPECTATIONS SOME OF THAT IS FUEL COST SOME IS TARIFFS.

BOTH OF THOSE WILL BE ON THE AGENDA WHEN PREISDENT TRUMP MEETS THIS WEEK WITH PRESIDENT XI JINPING IN BEIJING.

LET'S START WITH THE FUEL PRICE.

TO WHAT EXTENT IS IT GOING TO BE PREISDENT TRUMP'S GOAL TO GET THE CHINESE PRESIDENT TO HELP OPEN AND BRING DOWN FUEL COST?

>> CERTAINLY IT IS GOING TO BE TOP OF MIND FOR THE PRESIDENT WHEN HE ARRIVES IN BEIJING.

YOUR MEMBER PREISDENT TRUMP POSTPONED THE TRIP HE WAS SUPPOSED TO GO IN APRIL AND HE PUSHED BACK UNTIL MAY BECAUSE THE WAR HAD BROKEN OUT.

THIS CONFLICT BEHIND HIM AND OBVIOUSLY IT IS NOT.

SO REGARDLESS OF THE OTHER TOPICS THAT BOTH LEADERS WANT TO ADDRESS IT'S GOING TO BE UNAVOIDABLE THAT THE LEADERS WILL HAVE TO WORK THROUGH THIS CONFLICT AND THE IMPACTS ON BOTH COUNTRIES AND THE GLOBAL ECONOMIC SYSTEM SO IT WILL BE TOP OF MIND.

WHAT ROLE THEY ASKED TO PLAY REMAINS UNCLEAR BUT WE HAVE SEEN CHINA PLAY AN IMPORTANT ROLE IN GETTING IRAN TO AGREE TO THE EARLIER CEASE-FIRE SO WE KNOW CHINA CAN EXERT PRESSURE ON IRAN WHETHER OR NOT PREISDENT TRUMP ASKS TO GET INVOLVED IS UNCLEAR BUT IT WILL DOMINATE THE CONVERSATION.

>> WHO NEEDS THE STRAIT OF HORMUZ OPENED MORE CHINA OR THE U.S.

?

>> A GREAT QUESTION , THEY BOTH DO.

FOR PREISDENT TRUMP IT IS A HUGE DOMESTIC POLITICAL PROBLEM AND A ECONOMIC ONE BECAUSE OF THE WAY IN WHICH THE WORLD RELIES ON THIS.

FOR CHINA IT IS A KEY WATERWAY FOR THEM TO GET OIL AND GAS INTO THE COUNTRY.

BOTH LEADERS HAVE YOU TO PUT CONSTITUENCIES THAT THEY NEED TO GET REOPENED AND FOR PREISDENT TRUMP IT IS A CONFLICT THAT'S DRAGGING HIM DOWN POLITICALLY WITH HIS OWN BASE AND WITH THE REST OF THE COUNTRY BUT IT IS ALSO DISTRACTING HIM FROM OTHER THINGS HE WANTS TO DO AS I'M SURE WE WILL TALK ABOUT CUBA AND OTHER FOREIGN POLICY OBJECTIVES THE PRESIDENT HAS THE MILITARY IS HEAVILY TIED UP IN THE MIDDLE EAST WHICH IS CONSTRAINING HIS ABILITY TO DO OTHER THINGS.

>> LET'S TALK ABOUT TARIFFS WHICH I ASSUME ARE A COMPONENT OF THE BAD INFLATION NUMBERS WE JUST GOT WHICH MEANS THE FED WILL NOT LOWER INTEREST RATES LIKE HE WANTS.

PART OF THE TARIFFS ARE CHINA.

UP TO 30 OR 40% TARIFFS WITH CHINA.

THE GOING TO TRY TO LOWER IT AT THE SUMMIT?

>> THAT IS A HUGE AGENDA ITEM FOR THE CHINESE AND SOMETHING THAT WILL BE DISCUSSED.

THE PRESIDENT PUT TARIFFS ON FROM THE FIRST TERM AND PRESIDENT BIDEN CONTINUED THEM.

SO WHAT THE MINDSET IS, HE WANTS TO >>> A NEW DEAL HE SAYS THE U.S.

HAD BEEN RIPPED OFF BY CHINA FOR YEARS.

ONE OF THE DELIVERABLES WE COULD SEE FROM THE SUMMIT WITH SOME REALLY REPORTING IS INCREASED ECONOMIC INVESTMENT AND ECONOMIC PARTNERSHIP BETWEEN THE U.S.

AND CHINA AND PRIVATE COMPANIES.

THERE IS A LONG LIST OF HIGH PROFILE CEOS AS PART OF THE U.S.

DELEGATION SO I THINK THAT IS ONE AREA WHERE WE COULD SEE PROGRESS IN TERMS OF TRADE DEALS LOWERING OF THE BARRIERS BUT AS ALWAYS WITH PREISDENT TRUMP ON THE WORLD STAGE HE IS UNPREDICTABLE SO WE WILL WAIT AND SEE WHAT SORT OF DEALS ARE IRONED OUT AND IF THEY ARE MEMORANDUMS OF UNDERSTANDING OR THE BEGINNING OF NEGOTIATIONS WITH A FINAL CONCLUSION OF NEGOTIATIONS WITH RAGE REAL TRADE DEALS ANNOUNCED.

OFTENTIMES THE RHETORIC OF SKIERS THE REAL DEAL.

>> YOU JUST TALKED ABOUT THE CEOS TRAVELING A WHOLE BUNCH OF THEM.

YOU WROTE IN THE NEW YORK TIMES IT WAS A LONG LIST OF TIM COOK, ELON MUSK AND OTHERS.

WHY IS HE TAKING OVER ALL OF THESE CEOS AND WHAT DOES HE PLAN TO ANNOUNCE WITH THEM?

>> WE ARE WAITING TO HEAR WHAT IS GOING TO BE ANNOUNCED AS PART OF THE TRIP, OFTENTIMES WE GET THE INFORMATION JUST BEFORE IT IS ANNOUNCED OR WHEN HE ANNOUNCES HIMSELF BUT IT IS CLEAR THE TRUMP ADMINISTRATION WANTS TO INCREASE FOREIGN INVESTMENT IN THE UNITED STATES, TRUMP HAS BEEN CLEAR HE WANTS FOREIGN COMPANIES TO BUILD FACTORIES AND MOVE MANUFACTURING BACK INTO THE UNITED STATES HOW PLAUSIBLE THAT IS IS UP FOR DEBATE BUT IT IS CLEAR THESE HIGH PROFILE CEOS GOING TO CHINA AS PART OF THE EFFORT TO INCREASE INVESTMENT IN THE UNITED STATES.

IT HAS BEEN A HUGE TALKING POINT OF THE PRESIDENT.

YOU OFTEN HEAR THEM SAY THE UNITED STATES HAS NEVER BEEN THIS HOT EVERYONE WANTS TO INVEST AND COUNTRIES FOR AND REALIZE THERE'S THAT'S A WAY TO GET ON THE GOOD SET OF TRUMP BY ANNOUNCING INVESTMENT DEALS IN THE U.S.

BUT THAT IS DIFFERENT WITH CHINA AND ARE PROMINENT CONSERVATIVES AND REPUBLICANS RAISING CONCERN AND ALARM ABOUT CHINESE FOREIGN INVESTMENT IN THE UNITED STATES THIS IS SOMETHING TRUMP AND OTHER REPUBLICANS HAVE TALKED TOUGH ON LIMITING CHINESE ACCESS TO U.S.

MARKETS AND THIS IS A SHIFT IN POLICY IF TRUMP ALLOWS INCREASED OR REALLY ROBUST CHINESE INVESTMENT SO IT IS UNCLEAR WHAT WILL BE ANNOUNCED BUT THE MURMURS OF INCREASED CHINESE INVESTMENT IS RAISING ALARM AMONG A BIPARTISAN GROUP OF EXPERTS, LAWMAKERS HERE IN THE U.S.

>> LET ME DRILL DOWN ON A SPECIFIC TYPE OF CHINESE INVESTMENT WHICH IS THE ONES THAT INVOLVE NATIONAL SECURITY RESTRICTIONS.

A LOT OF THE CHINA HAWKS IN THE ADMINISTRATION WANT RESTRICTIONS.

MY TO TRUMP LIVE THOSE NATIONAL SECURITY RESTRICTIONS?

>> WE HAVE SEEN HIM TOYED WITH THAT AND THAT IS A CONCERN OF NATIONAL SECURITY PROFESSIONALS AND CHINA HAWKS.

ONE OF THE THINGS TO REMEMBER IS HIS RHETORIC ABOUT CHINA WE HAVE SEEN ON THE CAMPAIGN TRAIL HAS NOT ALWAYS MATCHED HIS POLICY APPROACH FOR TRUMP WHAT MATTERS IS CUTTING DEALS.

HE HAS USED ANTI-CHINA RHETORIC IN PART TO TRY TO CREATE OPPORTUNITIES TO STRIKE WHAT HE THINKS ARE BETTER DEALS WHEN IT SO THERE'S GREAT TREPIDATION WITHIN SOME TRUMP ALLIES THAT HE WILL LIFT RESTRICTIONS AS YOU OUTLINED AS PART OF THE NEGOTIATING PROCESS.

AGAIN IT WILL DEPEND ON EXACTLY WHAT HE ANNOUNCES AND SAYS BUT THE RELATIONSHIP WITH CHINA AND THE UNITED STATES IS SO BASED ON RHETORIC PARTICULARLY AS IT RELATES TO TAIWAN AND THE STATUS QUO OF HOW THE U.S.

TALKS AND RECOGNIZES TAIWAN THAT EVEN A SLIGHT RHETORICAL SHIFT COULD CHANGE POLICY IS A TRUMPET GOES OFF SCRIPT OFF-THE- CUFF EVEN IN HIS OWN ADMINISTRATION THAT ARE PROCEEDING CAUTIOUSLY AS THEY WAIT TO SEE WHAT HE WILL SAY.

>> I DON'T UNDERSTAND ABOUT TRUMP SEEMS LIKE THE SIMPLE THING IS DOES HE WANT MORE TRADE WITH CHINA OR DOES HE WANT VICE PRESIDENT VANCE THAT ONCE LESS TRADE WITH CHINA IT DEPENDS ON THE POLITICAL CIRCUMSTANCES AND CLIENT HE IS EXISTING IN WITH THE BROADER ECONOMIC CONDITIONS THE PRESIDENT HAS MADE CLEAR HE CAN SEE ALL OF THESE OTHER COUNTRIES INVESTING IN THE UNITED STATES AND TRADING WITH THE UNITED STATES AS A POSITIVE THING TRUMP DOES NOT SEEM TO SHARE CONCERNS THE VICE PRESIDENT AND OTHERS DO AT LEAST PUBLICLY.

ONE OF THE STRIKING THINGS ABOUT THE TRUMP RELATIONSHIP WITH CHINA HE SAYS I HAVE A GREAT RELATIONSHIP WITH XI JINPING.

THAT'S VERY DIFFERENT RHETORIC FROM WHAT WE SAW FROM THE PRESIDENT ON THE CAMPAIGN TRAIL IN 2016, IN 2020 AND 2024 WHEN HE RAILED AGAINST CHINA AS HE PAINTED A THREAT TO AMERICAN ECONOMY AND LIVELIHOOD BUT THAT'S NOT ALWAYS THE POLICY APPROACH HE HAS TAKEN BUT IN PART IS A DIFFICULT PART OF THE QUESTION BECAUSE THE TRUMP POSTURE >> SUPPORTERS WOULD SAY PREISDENT TRUMP IS NOT PERFECT YET PERFECTLY CALIBRATING NUANCES OF WHAT HE SAYS, SOMETIMES HE JUST SAYS THINGS WITHOUT FILTERING THEM.

WHAT ARE YOU WORRIED ABOUT OR WHAT ARE THEY WORRIED ABOUT WHEN IT COMES TO DESCRIBING ISSUES LIKE WE WILL NOT ORDER WILL SUPPORT TAIWAN INDEPENDENCE.

>> THERE ARE CONCERNS WITHIN THE INTELLIGENCE COMMUNITY , LAWMAKERS ON CAPITOL HILL , DIPLOMATS AROUND THE WORLD WHO ARE FEARFUL THE STATUS QUO ABOUT THE WAY IN WHICH THE U.S.

INTERACTS WITH CHINA AS IT PERTAINS TO TAIWAN IF IT WILL SHIFT BECAUSE IT'S LARGELY BASED ON STATUS QUO, BASED ON PRECEDENT AND PUBLIC STATEMENTS THAT HAVE BEEN MADE IN THE PAST.

CARE ABOUT PRECEDENT.

SO IF HE SHARES THE COULD YOU POLICY TOWARD BEING MORE LENIENT TOWARD CHINA'S POSITION ON TAIWAN CHINA WANTS TO REUNIFY WITH TAIWAN AND TAKE CONTROL.

IT WILL BE VERY INTERESTING TO SEE HOW PREISDENT TRUMP HANDLES XI JINPING ON THE ISSUE.

>> EXPLAIN MORE LENIENT DOES THAT MEAN WE MIGHT SLOW DOWN ARMS SALES?

>> THAT'S UNCLEAR PEOPLE BIPARTISAN GROUP OF LAWMAKERS ON CAPITOL HILL ARE TRYING , THEY ARE TRYING TO MAKE CLEAR THE COULD YOU POSITION ON TAIWAN THROUGH CONGRESSIONAL LEGISLATION AND RESOLUTION.

IT IS UNCLEAR WHAT TRUMP IS GOING TO SAY AND ANY SHIFT IN RHETORIC , BECAUSE THE WORDS ARE IT PERTAINS TO THE POSITION ON TAIWAN AND THE DIFFERENCE BETWEEN THE COULD YOU POSITION ON TAIWAN AND CHINA POSITION ON TAIWAN IF TRUMP IS NOT CAREFUL WITH HIS LANGUAGE DIPLOMATS HAVE RAISED CHINA COULD INTERPRET THAT AS A CHANGE IN POLICY ON TAIWAN.

>> DO YOU THINK HE COULD MAKE A CONSCIOUS TRADE-OFF DECISION TO BE MORE LENIENT ON TAIWAN AS YOU PUT IT IN RETURN FOR HELPING TO OPEN THE STRAIT OF HORMUZ?

>> I'M NOT WARY OF ANY PREDICTIONS WHEN IT COMES TO DONALD TRUMP'S POLICY ABLE SAY THAT IS A CONCERN OF PEOPLE I HAVE SPOKEN TO IN RECENT DAYS AHEAD OF THIS.

YOU MENTIONED EARLIER IN THE CONVERSATION YOU MIGHT WANT TO MOVE ON TO OTHER THINGS HE HAS MIRED IN IRAN HE IS EYEING CUBA EVERY NOW AND THEN, WHAT HAPPENED IN VENEZUELA EMBOLDENED HIM ON CUBA BUT GAVE HIM PAUSE.

WHAT DO YOU THINK HIS THINKING ON CUBA IS NOW?

>> I AGREE WITH YOU OPERATION IN VENEZUELA EMBOLDENED THE PRESIDENT TO GO AHEAD WITH THE ATTACK ON IRAN.

THERE WERE OTHER FACTORS THAT PLAYED A ROLE BUT THE MILITARY SUCCESS AND SPEED FOR WHICH THEY WERE ABLE TO CAPTURE AND START WORKING WITH THE INTERIM GOVERNMENT ABSOLUTELY SET THE TONE FOR THE PRESIDENT TO ENGAGE IN OTHER MILITARY ACTION AROUND THE WORLD.

CUBA IS A PLACE TRUMP WANTS TO EXERT POWER AND CONTROL OVER.

THEY HAVE BEEN SLOW IN THE ABILITY TO DO SO BECAUSE OF THE MILITARY BUILDUP AND COMMITMENT IN THE MIDDLE EAST BUT THE PRESIDENT HAS HAD RECENTLY CUBA IS GOING TO FALL, THE REGIME IS GOING TO COLLAPSE AND HE WANTS TO EXPEDITE THAT.

WE KNOW HE HAS BEEN FRUSTRATED THE PRESSURE CAMPAIGN AND THE CONTRABAND HAS BEEN BUILDING UP AGAINST CUBA AND IS NOT LED 24 COLLAPSE YET.

THE TIMING OF WHEN WE SEE MORE PRESSURE EXERTED ON CUBA IS UNCLEAR BUT WHAT IS CLEAR IS THE PRESENT IS COMMITTED TO EXERTING MORE PRESSURE ON THE REGIME AND TRYING TO FORCE IT COLLAPSE BUT THE SEQUENCING HAS BEEN IN PART DELAYED BECAUSE OF THE LENGTHY MILITARY CONFLICT WITH IRAN.

>> DO YOU THINK THE SECRETARY OF STATE MARCO RUBIO WHO YOU HAVE COVERED QUITE A BIT IS HAWKISH ON CUBA AND IS PUSHING THIS?

>> RUBIO HAS MADE CLEAR VIEWS ON CUBA OVER THE YEARS AND THIS IS SOMETHING IS PUSHING FOR AND BELIEVES STRONGLY IN.

>> I HAVE ENJOYED YOUR COVERAGE OF SECRETARY OF STATE MARCO RUBIO AND YOU TRAVELED WITH VICE PRESIDENT VANCE ON THE PAKISTAN MISSIONS IS THAT RIGHT?

DO A COMPARE AND CONTRAST OF WHAT RUBIO AND VANCE ARE DOING ESPECIALLY WHEN IT COMES TO IRAN.

>> IT REALLY INTERESTING SPLIT SCREEN I WAS ON AIR FORCE 2 WITH VICE PRESIDENT JD VANCE WHEN HE WENT TO PAKISTAN FOR THE IN PERSON ROUND OF NEGOTIATIONS MEDIATED BY PAKISTAN WITH IRAN.

JD VANCE WAS SORT OF THE FACE OF THE NEGOTIATIONS.

LEADING THE DELEGATION.

WITH A SPECIAL ENVOY AND THE PRESIDENT'S SON-IN-LAW.

IT IS A CONTRAST BECAUSE RUBIO HAS LARGELY BEEN FOCUSED ON VENEZUELA, SOUTH AND CENTRAL AMERICA AND RUBIO HAS EMERGED AS SOMEONE WHO HAS BEEN MORE ASSOCIATED WITH WHAT TRUMP HAS SEEN AS THE FOREIGN POLICY SUCCESS OF HIS SECOND TERM, TRUMP IS PROUD OF THE MILITARY OPERATION IN VENEZUELA, WITH THE CAPTURE AND THE WORKING RELATIONSHIP OF RODRIGUEZ WHICH HAS BEEN MARCO RUBIO'S , JD VANCE WAS OPPOSED TO GOING TO WAR WITH IRAN.

HE EXPRESSED CONCERNS IN SITUATION ROOM MEETINGS WITH THE PRESIDENT AND SENIOR ADVISERS ABOUT MOVING FORWARD WITH MILITARY CONFLICT AND HE WAS TASKED WITH TRYING TO STRIKE AN AGREEMENT WITH IRAN TO END THE WAR.

OBVIOUSLY THE AGREEMENT HAS BEEN ELUSIVE SO THE TWO OF THEM HAVE BEEN THE FACES IN SOME WAYS OF THE KEY MILITARY OPERATIONS OF THE PRESIDENT'S SECOND TERM EVEN THOUGH THEY DO NOT AUTHORIZE THOSE MISSIONS THEY HAVE SORT OF BECOME THE LEAD, THE LEAD ADMINISTRATION OFFICIALS THE MOST HIGH-PROFILE ADMINISTRATIONS HANDLING THOSE.

IT HAS BEEN A SPLIT SCREEN INTO WHICH ONE TRUMP SEES MORE AS THE OTHER, IT JD VANCE'S WORK IN PAKISTAN IS SOMEWHAT BOUND BY THE PRESIDENT'S INSISTENCE ON WHAT A DEAL WITH IRAN WOULD LOOK LIKE SO IT IS NOT FULLY ON HIM TO NEGOTIATE A DEAL ON HIS OWN BECAUSE HE IS DOING IT AT THE DIRECTION OF THE PRESIDENT.

BUT IT HAS BEEN A MOMENT OF MEDICAL SETBACK FOR JD VANCE AS HE EMERGED AS THE FACE OF A NEGOTIATING TEAM THAT IS SO FAR BEEN ABLE TO STRIKE A DEAL WITH IRAN.

>> LET ME READ YOU A HEADLINE.

IT IS THE TRUMP ULTIMATUM TO IRAN ALMOST UP THEN HE FOUND A OFFRAMP, SOMETIMES TRUMPET CHICKENS OUT AS HE MAKES THESE EXTREME THINGS AND THEN HAS TO WALK THEM BACK.

IS IT POSSIBLE HE WOULD SCALE BACK HIS DEMAND TO SIMPLY OPEN THE STRAIT OF HORMUZ AND DECLARE VICTORY?

>> NEVER PUT ANYTHING OFF THE TABLE OR RULE ANYTHING OUT WITH PREISDENT TRUMP.

OFFER IN RECENT WEEKS SAYING LET'S REOPEN THE STRAIT OF HORMUZ AND KICK THE CAN DOWN THE ROAD IN TERMS OF NUCLEAR NEGOTIATIONS.

TRUMP HAS SO FAR REJECTED THE OFFER.

COULD THINGS CHANGE?

ABSOLUTELY.

WE HAVE NOT SEEN THEM YET, BUT AFTER THE CHINA TRIP THERE WILL BE A MOMENT OF RECKONING IF THE STRAIT OF HORMUZ DOES NOT REOPEN AND THERE IS NOT SOME NEGOTIATED SETTLEMENT TRUMP WILL HAVE TO MAKE A DECISION ABOUT WHETHER OR NOT HE WILL RESUME MILITARY ACTIVITY OR FIND THE OFFRAMP AND END THE CONFLICT.

>> TYLER PEDRO THANK YOU SO MUCH FOR JOINING US.

>> THANK YOU SO MUCH FOR HAVING ME WALTER.