tv The Intelligence Report With Trish Regan FOX Business March 22, 2018 2:00pm-3:00pm EDT
freedom" on fox news. live for you offer every development across the day. lauren simonetti for trish regan lauren: we're not down yet, two hours to go. stocks selling off as investors digest massive amount of news on the heels of president trump's major decision to impose new tariffs against china. hi, everybody, i'm lauren simonetti is in for trish regan. welcome to the "the intelligence report." president trump fulfilling another campaign promise. imposing tariffs on china for unfair trade practices investors let's say are not keen on this move. it was down 265 points. it was down much more moments ago. economists fear trump's aggression will spark a trade
war. we'll have much more on this straight ahead. the other top story, trump's top outside lawyer john dowd resigning from the president's legal team. the announcement sending shockwaves to wall street. prompting stocks to session lows in the 11:00 hour. what does this mean for the status of the russia investigation? we have details coming up. facebook's mark zuckerberg finally breaks his silence over the massive data breach that sent his company into free fall. was zuckerberg's apology too little, too late? we'll discuss with that. first get back to the very top story. the president announcing sweeping new tariffs against china. we go to the white house where adam shapiro has been covering for this for us. adam, what is the latest? reporter: this the latest that could take to us the process of tariffs being imposed on china.
the president signed the memorandum at 12:30 this afternoon which instructed the united states trade representative to come up with a list of items, we've been told by the white house 1300 in all, total up possibly 50 billion-dollars in tariffs. you her during the ceremony, president say perhaps as high on $60 billion. it would be a range of products told by senior administration officials on things that have to do with high-tech gear coming out of china. also on investment in the united states by companies which are state controlled by the chinese government. so here in a nutshell, when the president says this is about reciprocal, if they charge us, we will charge them, here in a nutshell, what the president said what we'll do in the united states. >> we have right now an 800 billion-dollar trade deficit with the world. so think of that. so let's say we have 500 to 375. say we have 500 with china but
we have 800 total with the world that would mean that china is more than half. reporter: so, now there is a 15-day period in which the ustr will compile the list of items, make them public within that 15-day period. then there will be a public comment period. people will be able to talk and comment on these tariffs. but already there is comment from capitol hill. the chairman of the senate finance committee, orrin hatch, who is concerned that indeed this tariff situation could lead to a trade war. here is what he said. >> i expect some pushback from china, i don't think there is any question about that. the question is are we in a position economically to really fight them? i do believe the president has good intentions. he wants to pull us out of some of these messes we're in but i'm not sure you do it by starting a trade war with china. reporter: you should know advisors to the president like peter navarro say, look, china has far more to lose than the
united states does. the united states gains by one metric, they said that there are for every billion dollars of trade deficit, roughly 6,000 jobs lost in the united states. when you add it all up the administration is saying we have lost 2 million jobs in the united states because of the trade deficit that is a gain of two million jobs in china. so you know the chinese government is responding to all of this. the premier in china says, i hope we can act rationally rather than led by emotions in order to avoid a trade war. back to you, lauren. lauren: makes you wonder if this is a negotiating tactic by the president? let's bring in paul deet strict. i want to bring up with you paul, good to see you, one of the things adam touched on, comments from orrin hatch. hatch is questioning if we're in an economic position to fight
china, to do this, to start the battle with china. do you think we are? >> i agree with him. it is a fact that china has more to lose in a trade war with us than we do with them. and so it's really, really important that we get this right. for so long free traders and globals like myself who really believe in free trade, we negotiated for decades. and then after we do the negotiations we have ignored unfair trade practices. we ignore when people cheat. we now have to go back and say enough is enough. we're losing too many jobs and those people who were the victims of our trade policies, they roted in the last election. lauren: right. >> they let us know what's going on. lauren: we have to undertake these tariffs in such away, paul, where we also protect consumers. look, we love our cheap goods. we really do. that are made in china that come from china.
we have to do this in a way that we can protect american jobs and keep costs down for consumers. >> i think that will happen. i do not believe there is going to be a trade war. i think the chinese will do a tit-for-tat but it will be completely symbolic. the reason, you look at today, talking about putting in trade tariffs on agricultural products but you look at the agricultural companies and they're not down today. they are just flat. they were down a little bit yesterday. and so that's, that's an element of, you know, that we have -- lauren: obviously hitting the farm belt is hitting the trump base. that is almost a slap in the face for the president. >> it is but again nobody really believes that the chinese are going to do anything more than symbolic. it will drive up prices of food there. it will drive up inflation. they can't get the food any cheaper anywhere else. and so that's a problem.
lauren: yeah. prices go up for chinese consumer too. i have to ask you, do we trust china? they have this made in china, 2025 plan. essentially they control 10 major industries and tech is one of them. with that control they give low interest rates and federal subsidies. they prop up the industries, at the same time making it nearly impossible for any foreign company to compete. how do you change that? >> you use the rules and the tools that we legally have. i mean, last week or the week before when we did the 25% tariffs on steel that was a joke. lauren: in effect tomorrow. >> it was probably illegal. we used a never-before-provision of national security and we would have been sued in the world trade organization and we would have had to defend how canada is a national security threat to the united states. everybody was laughing at that. but what the president is doing today using the 301 section of the trade act is, he is actually
using a legal tool that we have to rebalance and it is proportional, it is fair and what we're saying is, as soon as you change your unfair trade practices of stealing our intellectual property, having forced technology changes, at that moment we'll take these a tariffs off. china can not defend these things. no other country in the world does what china does. this isis patently up fair that they have got to stop and i think they're going to. i think they will say how we got away with it for so long and no u.s. president actually come after us on it. i think they will negotiate and get rid of this. >> who blinks first is the question? the president was very clear earlier when he said look, i like president xi, we need china's help especially as we deal with north korea.
tough do this very carefully. >> the chinese know they're cheating. they know they're cheating. everybody knows they're cheating. they can't defend the trade war on really outrageously illegal, immoral practices. and so i actually think that the markets are going back up again once they realize that anything that china does in retaliation will be symbolic and will not be -- but this is an important thing if president trump is going to get reelected with that base, he has got to be seen to be stopping unfair trade policies and this is the way to do it. not the way he was doing it last week. lauren: gotcha. paul, thank you very. the dow was down 500 points at the low and the tariffs are not the only news affecting the market action. we also have president trump's lead lawyer resigning.
he has led the president in robert mueller's investigation. he is stepping down as of the p was saying ignoring his after vice. that led stocks down further. looking 2% broad decline for the week. we have ford o'connell and democratic strategist raj patel talking about the news out of the white house and it is unbelievable. john dowd might have seen his firing coming, i start with you, ford. he kept telling the president, this will pass, by thanksgiving, special counsel, russia mueller investigation is going to be done. we're still dealing with this. he is fed up. does he just want to sit down with mueller and do an interview? >> well look, from the outset president trump has seen the russia probe a witch-hunt in search after crime. he wants a legal team that sees
it that away. john dowd didn't fit into the equation. he saw the writing on the wall. he wants a legal team that helps him win the war of public perception. president trump knows, what mueller find or doesn't find he can win the battle in the court of public opinion, if he does, it won't matter and he will win re-election and it is a simple equation. lauren: the president brought joe deagain know have and jay sekulow there. >> joe and jay. lauren: there is john, a joe, a jay, there is a ford and a seraj those two gentlemen are better with the public persona and speaking with the media. that is what the president linings. >> sure but ford says he could win the court of public opinion. that is not how courts work. this is just an indication of an erratic profit impossible to work for, fires people on twitter.
from the get-go he is unstable. we're seeing his legal team abandon ship which could be sinking as mueller closes in. courts work in actual court. >> that is great, suraj since i'm a lawyer, that you tell me how courts work. >> so am i. >> we should make the point the special counsel should have never convene in the first place because there was no special cause. the only reason the special counsel was convened, the democrats would not accept the election results and would look for any way to take down the trump presidency. this is blemish on the constitution and democrats are taking us nowhere in this deal. lauren: does that the resignation mean the special counsel investigation is in a special face. >> they are looking for one thing only, obstruction of justice charge. john dowd was telling president, you did sit-down with mueller,
anything cron construed as exaggeration or not on cue but i will be charged with obstruction of justice. this started with collusion. they found none of. now we're -- >> we're not done with this investigation right? we don't know that we haven't collusion. i don't know what you all are so afraid of. if we're looking for the truth, let's let this investigation play out. we should protect mueller and let's find out what we find out. then we can have this debate about whether this is obstruction or collusion. why are you so afraid of truth. >> i'm not afraid of the truth. first -- lauren: i want to get to other big topics. we had two major leaks for two days. leaks are a problem for the white house. the president is fuming over reports that he ignored guidance on his call when he congratulated vladmir putin. he was not supposed to do that. he did it anyway. also not condeming the poisoning of a spy in britain. and now today axios is reporting
leaks of trumps of a close circle in the oval office not getting what he wants in the spending bill in congress. so, su are aj, is chief of staff john kelly promising to get rid of leakers and there is still a mole or a few moles there. is he not doing a good job? >> start with the fact that the president should not congratulate a dictator's sham election and not condemning a state-funded assassination of diplomats on foreign soil. that is pa threat nick in the first place. >> obama congratulated him in 2012. >> not only obama congratulated him, congratulated president of iran as well. this is nothing burger. >> everything can't be a nothing burger ford. the leaks are basically, look, if someone in the white house decided only way to get the president to listen to them go directly to the media, because that is the only thing is president cares about media coverage and name.
maybe this is cry for help. maybe this is the right thing for to do. >> wait a minute. russia thing is nothing burger. one, because obama did it. i wouldn't have done it for one simple reason it undermines your message getting tougher on russia. the real problem here is the leaks, lauren. whoever is doing this in the white house or national security council should resign, they're hurting america, hurting the agenda and hurting the white house. lauren: resigned or fired or charged because it could be criminal. >> absolutely. lauren: pressed for time as always. good to see both of you lawyers. >> good to be here. lauren: coming up the house passing the $1.3 trillion spending bill a short time ago despite objections from the house freedom caucus. next we'll talk to congressman french hill. he will explain why he voted yes for this bill. we will be right back.
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plan. house freedom caucus asking the president to veto the bill. this is what they wrote to the president. we urge you to remember the forgotten men and women of america to placed their faith in you to change base as usual in washington d.c. we urge you to join us and reject this omnibus. he is signing the bill despite not getting what he asked for. congressman french hill is joining us. >> thanks for having me. lauren: why did vow you vote yes? >> i voted yes because the president wanted to rebuild the military. the first pay raise for men and women in uniform for eight years. president trump got into office said that is the first thing i want to do, our biggest, most important constitutional duty to defend the homeland and defend our interests abroad. that is why i voted yes. lauren: there was nothing done on daca, nothing done for he dreamers. there is a win for the border wall, correct? >> there was. there is 100 miles of additional
border security in the bill. new judges, over 100 new immigration judges on the border to ajudicate people there illegally. there were wins on homeland security and big one on national defense. lauren: how do you reconcile the different republican points of view on this? you have speaker paul ryan, look the gop house passed all the bills in september. we asked for 74 miles. we did 100 in this bill. >> right. lauren: yet you have, jim jordan the house freedom caucus, cofounder saying this is the worst bill i've seen in my ten years in congress. how do you justify the two different republican points of view and also control the deficit, come on, $21 trillion? >> right. yeah, the deficit is a problem. we have to reform our mandatory spending programs which is 2/3 of spending. as big as this bill is, 1.3 trillion only represents 25% to a third of federal spending. the other two -- 2/3 we don't
spend on. i called for a vote on balanced budget amendment i hope to have that before tax day in april. that is my objective. we have to get our house in fiscal order. we do it through reforming the mandatory spending programs. the time for mr. trump to negotiated harder back when this deal was agreed to the white house, the senate and house a month ago. i believe speaker ryan has done the best he can with the bad hand that's been dealt not having all the appropriation bills passed in the senate and not having 60 votes in the senate. lauren: i venture that you read war and peace. i don't think you read it twice. you would have to read it twice in order to read all 2300 pages in this bill. my question is it fair? do lawmakers have enough time to go through this? >> two points. one, we passed all 15 of our appropriations bills before september 30th that is the base text of this bill.
so much of the 2300 pages was approved by regular order. no, we didn't have enough time to study the bill like we should. again i fought the process of the house and senate not having a good, defensible appropriations process that gets done on time. that is what we need. and president trump can help there, by demanding that the senate next year pass a budget and pass the appropriations bills on time. lauren: what happens in the senate next few hours? does the government shut down, 12:01 a.m. saturday morning? >> i don't think so,. lauren. i think senate concurs. why? because this is the big picture deal that the president trump and house and senate leaders negotiated. i think we will avoid a government shutdown. lauren: it will be a close down. >> it is always a close call, it is washington. lauren: president trump was elected to change the way washington does business. that is harder than we thought. >> he is hard at it.
we want him to change it. first thing we do honor the troops, fund them the right day. secondly change the appropriation and budget process to get it for the american people. lauren: congressman hill, thank you for your time. >> thanks, lauren. lauren: facebook ceo mark zuckerberg finally speaking out saying i am sorry for the company's data breach. investors are not impressed with the apology. the stock is down 1 3/4% today. what does zuckerberg need to do to gain the public's trust? we will have the intel next. compensated. our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else.
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>> this was a major breach of trust. i'm really sorry that this happened. we have a basic responsibility, to protect people's data. if we can't do that, we don't deserve to have the opportunity to serve people. lauren: that was facebook ceo mark zuckerberg, finally issuing an apology following the news data firm cambridge analytica
may have improperly gained information from 50 million facebook users. zuckerberg promising this will never happen again. investors don't seem too confident. it took him several days to make the apology. facebook shares are lower by 1.8%. joining us deirdre bolton and media reporter for the hit.com joe concha. >> hello. lauren: is this too little too late? >> yes. five days later you saw the stocks respond. a lot of what mark zuckerberg said last night in the tv interview is what people feel like they should have been doing to begin with, right? this is not a company that doesn't have resources t has 2 billion users. it generates a lot of cash. so i think from a business perspective they probably didn't want to hire more engineers which costs more money, eat into profit margins. this quite frankly is the
result. this is a problem because this is the second strike fence them. when we go back to the run-up in our u.s. presidential election, 2016, more than half of the u.s. voting population saw an ad that was either generated or manipulated by russian bots. it 125 million people. mark zuckerberg ignored that, ignored that and was forced to face it. we're seeing same thing. one analyst i spoke to thanking i never thought of questioning the leadership of this company and you ignore, ignore and for two big data issues i begin to question the leadership. lauren: joe what do you make of the leadership? you have mark zuckerberg saying i was young and too inexperienced i trusted wrong people. is that what you want to hear, he is a young, 33, but is that what you want to hear from a ceo? >> this company was created in 2003. he had 15 years in practice. the old saying in pr, to your
point, deirdre, is get out in front of the story. to hide under a pile of coats doesn't give any sort of confidence. here is the thing he has precedent on his side in this sense. there were plenty of companies been breached, major companies with these type of numbers. yahoo!, 3 billion people affected. ebay, 45 million people affected. target affected, people heard of this. equifax. uber. >> this is not a breach which is a point we need to underline. this is third party taking advantage of the system. they didn't break in. >> right. >> honestly what users are even more aggravated about. it wasn't, i know facebook feel very victimized and they have taken some steps and tweaks. i heard zuckerberg say i will go in front of congress if it is necessary to explain what is going on in my company. but this wasn't a break-in the same regards. lauren: it was our information. do you think people will delete facebook? there is a whole campaign deleting facebook but it is so
ingrained in our lives, do you think that the repercussion here, that they lose use? >> no. i don't see it. >> we are all effectively lazy, and social media is clicking, liking, posting, what we've it is. they own, facebook owns a lot of the nextgen products. for example, instagram. a lot of teens are in instagram. facebook owns that. whatsapp, a way for people to communicate overseas, facebook owns that. if you want to be high and mighty do the research, figure out what they own if you take a stance and delete a lot of stuff. >> lazy but -- lauren: a distraction, but facebook going through tens of thousands of apps making sure your data is protected and used the right way. does this become a distraction for the company? i know they have resources but they have to police things a little bit differently than they have. >> as you said -- lauren: advertisers and developers. >> they have the resources.
they made billions and billions of dollars where they can add teams to address this. to deirdre's point before, not only lays did i but ad dicked with facebook. particularly if you have kids. put up photos like you do day and night. i won't delete the account because i don't think i have too many sensitives things on there any way. lauren: what do you think about mark zuckerberg being the ceo? do they have a way to bring in more grownups? >> sheryl sandberg was supposed to be the grown up in the room. in fairness i know i have friend at high level we really wanted to get this statement right. we realize the weight, the gravity of the situation. so they did want to go back and part of mark zuckerberg's statement yesterday was the whole forensic analysis how they handled that going back to 2007. if you read that hole post. i think they were trying to get it right. i think they need to get more people on the board. they need a business decision,
will we have thinner margins and higher more engineers? after the russian fiasco with the ads, they hired a thousand editors. that does nothing with 2 billion users. >> the good news, however i don't think we have to hear anymore speculation about mark zuckerberg running with mark cuban to take down donald trump. lauren: he got a taste what it is really like. joe, deirdre, thank you so much. we have a massive selloff on wall street right now. in fact we're looking what could be the uglyiest month of march, ugliest decline in seven years. the dow is down 414 points. more on the selloff that the on news that the fed is being more aggression sir, one of donald trump's lawyers resigned, tariffs on china and much, much more after break. ♪
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of $200 million in a bid to save up to 400 bankrupt toys "r" us stores. all of this as toys "r" us begins the liquidation process. could start today or tomorrow. going out of business. the major discounts will start soon, parents out there. youtube is tightening restrictions on firearms videos, banning videos showing how to assemble and use a firearm. the move comes after receiving criticism for lax policies regarding what people can post in the wake of the florida school shooting. and millions digging their way out as the early spring nor'easter dumbs -- dumps a foot of snow in the northeast, 4,000 flights canceled yesterday alone. i don't want to say this, but prepare for another nor'easter, number five on sunday. we definitely have a nor'easter, perhaps number five on wall street today. we have the dow down 405 points for many, many reasons today.
one of them is president trump ordering sweeping new trade measures, tariffs against china. let's bring in our panel. heritage capital president paul schatz and tjm's tim anderson. tim, i begin with you. do you think this is a tariff or spending bill has something to do with this, legal changes in the white house? what do you make of this? >> four or five things in addition to facebook in addition to the story about facebook before the break casting negative outlook on the market right now. the china tariff news is not new. people have been talking about it since last friday. i can't imagine like that is a predominant factor. the facebook story it is what it is. might draw into question to what degree tech lost the leadership of the market. maybe if investors lose confidence in the whole social
networking business model, maybe that's, maybe that is a bigger issue. all that being said, the market is down quite a bit. we have, we created a little bit of technical damage in the market. very important for the s&p 500 it hold 2650. that was the intraday low on march 2nd and i believe on february 14th or 15 you are worried about those levels, once we reach the levels we'll notice end to the selling? >> you know you would like to combine that with maybe a very, very high volume day on the selloff. maybe where we get, maybe where we get a reversal. it doesn't look like we'll have a 90% down day today. sometimes that turns into being a contraindicator that sparks some buying the next day. these, the market, you know, technically is weak right now. there is four or five items out there. lauren: we're looking what could
be the biggest march decline, for a market basically gone nothing but up, paul, since the president has been elected, the biggest march decline in 17 years. we have 400 point selloff right now for the dow jones industrial average. >> right. lauren: i am it is making me feel this is no big deal. what do you say? >> remember the market peaked january 26th. we had a 10 plus correction in february. we're still in a very nice little trading range. people don't like to see the big numbers, 400 point declines. they certainly love the 400 point rallies. i would argue we're still finding equalibrium. the market is figuring its way around the big decline in the february. lauren: right. >> the news cycle is full. the big dark cloud over the market is the tum tariff tantrum if you will. long term it is really, really bad. couple that with the fed raising rates and this huge experiment of raising rates and trying to
sell assets at the same time the treasury is going to have to issue more and more debt. there is a lot of stuff going on. in a support period of time. markets can deal with it over the long term but when some things are thrown upon it at once you will get some volatility. right now to the downside. i don't think anything hugely to worry about, even if the dow declined to 23,000. i think we see new highs, 27,000, by the time it getting warm out. lauren: i want to drill into the tariffs, particularly ones we're expecting against china right now. if you look at monsantos, and archer midlands daniels, they sold off, a lot of trump base, the farm country, was terrified about tariffs and reciprocal reactions from china but today they're not doing so terribly. the big manufacturers like boeing, face it, china is one of the biggest customers for boeing, they're down, but they're not downing a agressively in a down market,
tim? >> no, they're not and those are some stocks that have certainly boeing has had exponential move higher combined with last year's 90%, what we've seen so far this year. look, i think that a lot of this tariff action against china is to set up talks with north korea a couple of months from now. and i think a lot of the tariff action on the aluminum and steel industry was a was a predecessor for the renegotiation of the nafta treaties. so the bottom line is, once we get past those points you might see some of us not really having as much of a negative effect as some people are worried about. lauren: last question for paul. seems like so long ago, although it was just 24 hours ago we had the federal reserve hiking interest rates for the sixth
time in the rate cycle. we had the market go up 250 to down 44 by the end of the day. how much of the selloff today is the fed's influence and interest rate hike? >> my view very little. i think the fed problem is a longer term problem. i do not think -- listen, our forecast was for 3.5 rate hikes this year. i think the risk to the upside, to me four is big, a chance you could get five. the problem is, they're selling assets they're at same time hiking rates, never been done before. let's not underestimate tariffs. history shows us tariffs and trade wars never, ever, ever, end well. for first time in a while we're on recession watch for mid 2019 and mid 2020. i'm really concerned not for 2018, but certainly that clock is starting for economic weakness next year and the year after. lauren: tariffs often make prices to up. we have rates going up too. that is a big problem.
paul, tim. thank you very much. >> thank you. >> as we've been saying stocks sinking today over fierce of well, a trade war, massive spending by the white house. you know, are the markets overreacting? tim says, yeah, maybe a little bit but i'm going to talk to one business leader next who says, these tariffs, particularly on steel and aluminum that go into effect tomorrow are necessary for the manufacturing industry and for american jobs. stay with us. just one free hearing test at
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lauren: secretary of commerce wilbur ross and u.s. trade representative robert lighthizer in the hot seat. lawmakers grilling them about president trump's tariffs included steel and aluminum tariffs which by the way go into effect for tomorrow and possible retaliation. for latest, connell mcshane is live on capitol hill. connell, break it down for us. reporter: it is interesting, lauren, we have news on the steel and aluminum tariffs and all the chalk about china and the u.s. trade rep was up here and made a list of countries at first will be except from the tariff. we'll go to the map to show the countries. mexico on the list as we expected, included european june, -- union, australia and
south korea. at first, robert lighthizer says they will not be subject to tariffs as negotiations continue. that is on steel and aluminum. you mentioned wilbur ross. he was a different hearing. he was really pressed by members of congress districts where farm something big business about the prospects of a trait war. we had a number of reports that the chinese with actions taken in the u.s. might be preparing their own set of tariffs and might target u.s. products like soybeans, big-time exports to china. so the secretary was asked about that and here is his response to that threat. >> whether they will respond and if they do, in what form no one really knows but i don't think that whether we call it national security or something else, it is going to have any impact whatsoever on the nature of their response.
they're going to respond in whatever they think will be most politically hurtful way to us. reporter: that is what a trade war looks like, the most politically hurtful way to us. we will watch to see how that plays out, lauren. watch out for negotiations and exemptions for the countries. and on the china tariffs there is important 30-day comment period included. keep an eye on negative shuns there. back to you. lauren: the key word reciprocal, connell as the president noted there. thanks, connell. take a look at market stocks, dramatically lower on fears these tariffs will start a trade war. the dow down 400 points. the s&p down 38. nasdaq down almost 100. our next guest says steel and aluminum tariffs are absolutely necessary and they are just the beginning to revive america's manufacturing industry. here to explain is president of the alliance for american manufacturing, scott paul. thanks for joining us, scott.
>> great to be with you. lauren: some steel and aluminum stocks are down as much as 15%. but you say these tariffs go into steel and aluminum, i know we're talking about a lot of different tariffs but that they are absolutely necessary? >> they are necessary and this process will take more than a week and take months and years to unwind. we had a big buildup well-documented in the metal sector in particular of massive global overcapacity, much of that residing in china. the tariffs are a first step in stablizing this market, having commodity prices which are already subject to business cycles in a pretty major way, be further distorted by governments like china's, is very disruptive. it is disruptive to american workers. it is disruptive to steel consumers and i think the goal of the president, this is one i support. is that the at the end of the this process we have a stable,
secure, supply of steel in the united states. it means that we will grow steel jobs. and it will benefit consumers because you will have steel-making capacity close to home. and we will not let beijing drive us out of business. lauren: and that creates manufacturing jobs in your view, right? >> it does. steel has a long value chain. it supports six or seven other jobs in the community. already you see announcement of steel mills opening or reopening in illinois and in florida, in ohio. aluminum smelters in kentucky and in missouri and i think these are the leading edge of announcements like that that will have more robust domestic supply. keep in mind we've been the largest importer of steel in the world. we have a very open market but we've had really, really unbalanced trade. and the tariffs are the last resort in our effort to stablize this market. it is something that i'm very happy that the administration is
proceeding with. lauren: peter navarro said something on mornings with maria that resonated. remember the solar panel and wash be machine tariffs, they seem like they were ages ago. he said those have not created a meaningful increase in consumer prices. they have created a meaningful increase in investment in the u.s. what do you think about that? >> i think that is right. if you look at the steel and aluminum tariffs, you throw the latest round in, they are a fraction of economic output in a 20 trillion-dollar economy. meanwhile, you have industries that involve major capital investments that provide good middle class jobs, that will be able to stablize, that will be able to invest in their plant, equipment and workers, that will be able to grow back their market share, that has been eroded over time by these unfair trade practices not only in the united states but around the world. when they're competing not against other private sector firms but against the government of beijing. that is not the way the game is
supposed to be played. we've been in a trade surrender as the vice president said for a couple of decades. that era is coming to an end. i think american workers will be better off for it. lauren: he says 60,000 factories and six million jobs gone. scott, thank you so much. we'll be right back with more intel. :
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major declines across the board. tomorrow morning i will have analysis of the selling and much more on fbn a.m. 5:00 a.m., make sure to watch, and you know, i'm handing ashley webster who is going to be doing the most important hour of the trading day. in for liz claman. i'm handing you a 470-point sell-off. >> gee, thanks, lauren, lauren simonetti. perfect storm, rocking the markets and nothing to do with the nor'easter that blasted through here overnight. president trump signing $50 billion worth of new tariffs targeting china and pushing for more. the president claiming the move will make the usa much stronger and richer nation. wall street is worried about the chinese retaliation to all of this. the dow off 466 points. now, at the same time, the president's top personal attorney steps aside, the market took a leg down immediately heard that john dowd resigned.