CNN "Wolf" - Transcript: Interview With Rep. Ryan Costello

Interview

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BLITZER: All right. So the reporters in the pool there are trying to ask the president some questions. Clearly, he was not anxious to answer any questions during that photo op as the reporters were escorted out.

Let's get analysis from Republican Congressman Ryan Costello, of Pennsylvania. He's joining us right now.

Congressman, thank you so much for joining us.

There's a lot of concern about these tariffs that the president has imposed. The speaker, Paul Ryan, says he hates, he opposes the tariffs as they are simply a tax on the American people. The price of all sorts of products is going to go up here in the United States. The president now says on agricultural product, he's willing to come up with a $12 billion bailout to farmers. What is your reaction to this latest dispute?

REP. RYAN COSTELLO, (R), PENNSYLVANIA: Well, very similar to the speaker and many other Republicans on the Hill. This is a self- inflicted wound. This is going to be very damaging to our farmers, to the agricultural sector. You know, using a credit facility created during the Great Depression to create a subsidy for farmers while we hopefully cross our fingers and bring about reducing barriers is something that gives me great pause, because we do not know what the strategy is or what the end result may be. But we do know that, in the meantime, over the past several weeks, the cost to American farmers in getting dairy and getting soybeans to market in foreign countries has been reduced by about 15 percent. And it is expected, through the Department of Agricultural that we are going to see less agricultural output get sold. And that's not a good thing in this economic environment. Where we want our farmers to stand on their own, earn an income without the help of subsidies.

BLITZER: Yes, $12 billion in deficit spending to, in effect, try to appease the farmers out there, the agricultural states. That's a series, serious issue. But do you agree with the speaker that the tariffs represent a new tax on American people? Because the price on all products is simply going to go up.

COSTELLO: Yes, I do. That is just a basic economic piece of the equation. I mean, that's not even in dispute. There are those that may wish to use a different term other than tax, but if I'm buying a product and then tomorrow, as a result of a particular policy of the product, it costs 10 percent more, to me, it's a 10 percent tax. That's what is going to be felt by the American consumer, across a broad section of the economy the longer this goes on.

[13:55:29] BLITZER: So what is going to happen? How do you see this unfolding?

COSTELLO: Well, my hope is that -- and I think all Americans' hope, is that if the president's going to do what the president's going to do here, I don't see -- he's not going to backtrack here. One thing you can say about this president is, he owns who he is. He owns his policies. And he's going to see them through to tend. My hope is that this $12 billion is the backstop that farmers need during this point in time where they're going to lose money. My further hope is during that period of time, the E.U., China, and even those in NAFTA realize that the president is serious, that he's going to see this through, and that they have to come to the negotiating table and that we get better trade deals out of it. I think that's the hope for every single member of Congress, every single American. And while I can, and many others can be critical of the $12 billion subsidy, I think we need it as a result of him imposing the tariffs. We don't like the tariffs. But the hope is that we end up in a better place, months from now, with better trade deals with a host of other countries. The concern is that we don't get there and then have to deal with perhaps another round of subsidies in order to shore up the agricultural sector.

BLITZER: Yes, one of the ironies, and several people have pointed this out, Congressman, the $12 billion could come from China because China would lend the U.S. the money, part of that so-called deficit spending --

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COSTELLO: You're very correct.

BLITZER: Yes --

COSTELLO: I'm glad you pointed that out. I'm glad you pointed that out.

BLITZER: That's a real serious issue.

Let's continue this conversation down the road.

Congressman Costello, thank you very much for joining us.

COSTELLO: Appreciate being with you.

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