wall street plunges as president trump announces new tariffs on steel and aluminum imports. the global retaliation we're getting fresh responses from asia and europe to the new tariffs. we're headed live to china and europe. from a trade war to a new cold war what vladimir putin said exclusively to nbc news that's getting attention this morning it's friday, march 2, 2018 "worldwide exchange" begins now. good friday morning. a warm welcome to "worldwide exchange" on cnbc.

i'm wilfred frost. >> i'm seema mody. global markets reacting to news that the white house is planning to launch heavy tariffs on steel and aluminum imports let's look at how futures are setting up for trade the dow is down by 94 points the nasdaq down 16 and the s&p 500 down 8 points. the dow posting its first three-day losing streak of 2018. the dow yesterday did lose 420 points looking at the mod in asia, stocks closing there with the hang seng closing with a decline of 1.4%. in europe, stocks there were responsing negatively to the tariff move. the dax leading the declines down 2%. similar story in france. and italy were down 1.89%. >> even though we had a big bounce back last week in the u.s., european markets, asian

markets never bounced back to the same extent. we have team coverage of the global fallout to the new tariffs. eunice yoon is live in beijing, karen tso in england, but we start can kawith kayla tausche >> president trump's announcement that he would seek global tariffs stunned investors, white house staff, cabinet staff and close republican allies on capitol hill >> surprised whoever advised him on this ought to be reprimanded. it will cause higher prices and make us less competitive in the world marketplace. >> that was the chairman of the senate finance committee the backlash was swift and wide ranging. you had business lobbies coming out against the decision and u.s. allies like canada

requesting exemptions. the world trade organization said the tariffs would break its rules. trump's move is a familiar one to the wto in march 2002 george w. bush slapped 30% tariffs on foreign steel that was met by retaliation from europe. a year after the tariffs were enacted, the wto said they violated international trade agreements, soon after that bush reversed them. it's unclear whether trump can be convinced otherwise yesterday in a meeting with steel and aluminum executives, he shot down gary cohn when cohn argued about rising prices for companies that make steel and aluminum products and the people who buy those products trump said that's not real world and a small price to pay >> i will pick it up quickly and ask a follow up in terms of we've seen a few tariffs before, things like washing machines,

steel and aluminum are bigger. do we get the sense there could be more tariffs to come? >> there are other investigations yinvestigatio s ongoing. tariffs is something the president has been seeking in his trade policy from the get go but his advisers, specifically cohn as well as rob porter before he was ousted and steven mnuchin have been trying to slow roll the situations, put them into lengthy investigations to keep the president from making a two hasty of a decision. there is still an investigation ongoing on intellectual property that could result in tariffs on consumer products, semiconductors and lots of technology that's being exported from china that's something the white house has until august to make a decision on. we're told that there is already a report sitting on the president's desk with recommendations, and that could follow this. >> thank you

a great deal of confusion around the tariff announcement. let's get reaction from overseas eunice yoon is live in beijing with that angle. >> no surprise that china criticized trump's tariffs saying global trade would suffer if all countries follow the u.s. example. this was the foreign ministry statement which came a couple days after the commerce ministry had warned that if the u.s. were to carry out some of these trade remedies, china would take necessary measures to safeguard its legitimate rights and interests. those are tough words out of the chinese government but what would that retaliation look like most analysts we've been talking to here say it would focus on the u.s. agricultural products and that industry. china is the second largest market for farm goods, such as soy as well as corn. and one analyst said to me just

last month, if you look at what happened after the trump administration slapped tariffs on imported solar panels as well as washing machines, the chinese initiated an investigation into sorgum grains, that's an important crop for the united states that was seen as a warning shot. it looks like a lot of people believe that soybeans could be next the chinese need the soysoybean but one analyst said at this stage in the market china is much more better placed to diversify and buy from argentina, ecuador, brazil and poland another way that we could see retaliation, analysts say, is don't expect this to look like tariff to tariff they say american companies could be vulnerable the ones that operate here because china has a history of taking out some action and retaliating in a completely different field for example, south korea

china has been very upset with north korea a south korea for having anti-missile system on their land and then they boycotted k pop bands. >> thank you and let's go to karen. >> shock waves are felt across global stock markets after president trump said the united states would impose tariffs on steel and aluminum imports stoking fears of a trade war even here in europe despite the fact we're not a major exporter of steel to the united states. here's the reaction. the european commission hit out at trump's proposed tariffs. jean-claude juncker said the move represented a blatant intervention to protect u.s.

industry and that the eu will react firmly to protect itself interests. here's reaction to stocks in europe the steelmakers seeing a selloff. salzgitte down 4.3%. and thyssenkrupp down 3.2% and arcelormittal down 4.10. they released a statement. still producers around the world who should work the issue of overcapacity saying it was assessing the impact of u.s. tariffs on its business. theresa may is giving a key speech later today about her visit for the relationship with the european union after brexit. and the steel industry in the uk has effectively been on its

knees. how would the uk deal with a situation like that without the trading back drop of europe. back to you. >> people wonder whether an unintended consequence for president trump was the strong responses from the eu if it was originally intended to deal with china, it had bigger global repercussions for the president. the new tariffs could present some opportunity for your money landon dowdy is looking at some of the winners and losers. >> well, the tariff news rattling stocks on the process of an imminent global trade fight. the dow and s&p falling 1.5% as of yesterday's close, here are the winners and losers cleveland cliffs up 10% for its best day since october ak steel up 9.5% united states steel up 6%. the prospect of the tariffs was cheered by steel and aluminummakers in the u.s. who say their businesses have been decimated and thousands of jobs

lost due to other nations dumping cheap products in the country. it's scary for automakers and suppliers, boat and plane manufacturers and beer companies as it could lead to higher cost and fan the flames of fresh inflation anxiety. kratos down 8%, curtiswright down 6%. let's bring in guy adami good morning to you. a big selloff yesterday in reaction to this there's the washington chaos aspect there's the threat of inflation aspect, there's the threat of retaliation aspect which of those is the biggest reason for markets to fear >> the fourth reason, which i think is bigger than all of them, the haphazardness in which this decision was made this is a decision typically you use all your resource to talk about, you talk about it for weeks if not months, then you make a calculated move

this seemed to happen within a 30 or 40-minute span where it took everybody off guard in my opinion it was not necessarily the move its, it was the haphazardness in which it was done the moves in the market to the downside started three fridays ago when you had the wage number out of the jobs report the volatility we're seeing, the seeds were sown three, foir weewee four weeks ago >> that was my point >> i'm sorry i am not as proper as you are. >> quickly in terms of the overall market reaction, one thing that hurt markets in the last month or so has been higher rates. yesterday in reaction to this we saw rates fall significantly i'm wondering whether when the dust settles from the headline

grabbing move from the tariffs, if yields are lower, is that a reason why markets could recover again? >> yields are lower because people are flocking to safet here the reality is this economy is doing rather well. obviously now we have the tax stimulus as further gas for this engi engine the fed is in play at least three times this year if not four that's what has the market in a quandary we're about to exit the largest prop trade in the history of mankind. the market gave them a pass for so long thinking they will thread the needle. now people are saying maybe it won't be as seamless, and people short volatility in a complacent way for the last seven years will come home to roost within a few months that's what we're on the precipice on now >> a number of industry groups from boatmakers, beermakers,

manufacturers of automobiles are coming out denouncing the tariff move do you think these companies have enough influence to influence trump to soften the current deal >> the deal will get softened, but i don't think it will happen in the near future things happen quickly, but i don't think you'll see it for a couple of weeks. i think he's playing to his base this is something that, if you remember, he ran on this 18 months or so ago for him to sort of back off of this in a day or two, it's not the way he operates. i think this will continue to sort of flow into the marketplace. i think there's a point where he will come ou exactly what i meant, but i think that's weeks away. >> is the trump administration still supportive of business and with it the stock market

or with this move does it blow deregulation and tax cuts out of the water? >> people say he's business friendly, but i'm not certain that's the case. he's president trump administration friendly. that's what you're seeing now. the markets enjoyed the first year of his administration, rightly so but you have a lot of strange things going on. it's great to use the market as a record card for the administration when it's going higher if things go pear shaped, who will they blame if this unrav unravels that's the concern that's what i would be worried about as a trader/investor >> guy, thank you very much for joining us we're just getting started on "worldwide exchange." up next, a tale of two retailers. why gap is soaring and nordstrom

is sinking stocks to watch are coming up. and a new cold war what russian president vladimir putin said exclusively to nb ws that is getting a lot of attention. "worldwide exchange" will be right back

welcome back to "worldwide exchange." let's get an update on the market picture down 100 points for the dow. s&p down 6 points. the nasdaq down 14 we ended down 1.7% yesterday for

the dow. the nasdaq and the s&p down a percent. trade news significantly weighing on markets. treasury note, ten-year down to 2.81%. a traditionally risk off day yesterday. we are down to 2.81% >> a classic selloff day >> except gold did not go up microchip technology is buying microsemi they are the largest u.s. commercial supplier of military and aerospace equipment. gap's fourth quarter earnings and revenue beating forecast same-store sales in the holiday period rose 5% gap expects profit to come in above expectations this year

sales growth will be flat. shares are up almost 11% here in premarket. nordstrom missed forecasts revenue beat as same-store sales rose 2%, that was propelled by the online business during the holiday season but shares down 3% splunk reporting better than expected adjusted earnings revenue rose 34% the company's also raising its outlook for the year, up 6.5%. shares of pure storage are lower today despite the company reporting its first profitable quarter. fourth quarter results topped forecasts and the revenue outlook is above analyst estimates. it's down 4.7% american outdoor brands is reporting a 33% drop brand in sales in the quouarter. they are warning of weaker profit and revenue this year flagging customer demand may

last another 12 to 18 months sticking with the gun story. georgia lawmakers striking down a proposed tax break for its hometown carrier delta air lines after the airline decided to cut ties with the national rifle association. delta is georgia's largest private employer with 33,000 workers statewide. more companies are changing policies for the sale of guns. l.l. bean raising the minimum age to buy rifles to 21. the company saying it only sells firearms in maine and only guns specific to hunting and target shooting it does not carry assault style firearms. and rei is stopping its relationship with vista outdoor the decision comes after vista failed to issue a statement following the mass shooting in florida. the brands include savage arms

re i rei currently has a hold on future orders on other products that vista sells. what russian president vladimir putin said exclusively to nbc news that is sparking fears of a cold war. "worldwide exchange" will be right back [ phone rings ] hey maya. what's up? hey! so listen, i was taking another look at your overall financial strategy. you still thinking about opening your own shop? every day.

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market with the dow down 130 points nasdaq lower by 21 yesterday the dow falling 420 points, a 1.7% decline the worst daily performance since february 8th stocks responding negatively to president trump's announcement that he will impose tariffs of 25% on imported steel. vladimir putin unveiling a host of new nuclear weapons during his state of the nation address yesterday. after his press conference, megyn kelly sat down with the russian president for an exclusive interview. >> several analysts in the west have said this is the declaration of a new cold war. are we in a new arms race right now? >> translator: my point of view is the individuals who have said that a new cold war has started are not really analysts. they do propaganda if you were to speak about arms race, then an arms race began at exactly the time and moment when

the u.s. opted out of the anti-ballistic missile treaty >> some analysts are suggesting you tested it and it's failed, and that's why you only showed animations of it today and have not yet produced any actual videos >> translator: are you talking about icbms? >> yes, the one that you claim renders defense systems useless. >> translator: as a matter of fact, every single weapons system discussed today easily surpasses and avoids an anti-missile defense system. >> but you've tested it? >> translator: the test was excellent. some of them still have to be fine tuned and worked on others are already available to the troops and already are battle ready >> for the record right now, do you have a workable icbm that's powered by nukes that you tested successfully >> translator: all of those tests were successful. it's just each of these weapons systems is at a different stage of readiness one of them's already on combat duty it's with troops.

>> and megyn will have more reporting from russia in the coming days. we'll look forward to that following that exclusive interview. let's check on what's happening outside of the world of business. francis rivera is in new york with the latest. good morning good morning me billy graham will be laid to rest in north carolina today his casket arrived in charlotte. 2300 people are expected to attend the funeral president trump, the first lady, mike pence and his wife will all be there. people in kentucky lined up in the rain fora 45-year-old bourbon. supplies of the 1800 final reserve sold out in less than an hour harvey weinstein will not be going to the oscars but his presence is felt a lifestyle statue called casting couch was displayed in

hollywood. celebrity chef wolfgang puck is preparing to host a feast for the big winnerers and 1500 guests his menu includes 300 pounds of japanese beef, 1400 bottles of champagne and a caviar parfait dusted with gold dust. >> calf area viar is not fattent >> you throw in the gold dust, it's all good. >> protein still ahead on "worldwide exchange," the big backlash. europe and asia responding to ffe new trade taris. we'll have more on that when "worldwide exchange" returns

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wall street plunges as pruch announ president trump anoun nnounces w tariffs on steel and aluminum. we have live reports from asia and europe ahead. you're watching "worldwide exchange" on cnbc. good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody. >> let's check in-on-the m on t

markets. we saw a pullback yesterday when the white house announced a heavy tariff on steel and aluminum imports we were down 1.7% for the dow. down over a percent for the nasdaq and the s&p it was when those tariffs were announced that we saw a selloff after what was a positive morning with some decent data out early yesterday morning. we are down as you saw in the premarket about 100 points on the dow. significant declines in reaction to that news yesterday japan down 2.5%. hong kong down 1.5%. europe also lower. it was lower any way yesterday before this news germany down almost 2% today germany fell into correction territory again yesterday. when we talk about the rebound we had last week, we never saw as big a rebound in europe and asia this week is negative for

everyone we have full cnbc team coverage of the global fallout of the tariffs. eunice roon is liyoon and karene joining us, but let's begin with kayla tausche. >> the announcement wond 't be made officially until last week, bu president trump's announcement that he would seek global tariffs stunned investors, white house staff, cabinet staff and close republican allies on capitol hill >> surprised whoever advised him on this ought to be reprimanded. it will cause higher prices and make us less competitive in the world marketplace. the backlash was swift and wide ranging business groups said they strongly disagree. u.s. allies like canada said they would take responsive measures

the wto has seen this before in march 2002 george w. bush slapped 30% tariffs on foreign steel. europe retaliated then against exports from key swing states from bush. the wto said they violated international agreements a year and half after taking effect, bush ended up reversing them critics will try to soften trump over the next few weeks, but it's unclear he can be convinced. yesterday in a meeting with steel and aluminum executives, he shot down gary cohn when cohn argued about rising prices for companies that make steel and aluminum products and the people who buy those products trump said that's not real world and a small price to pay back to you. >> this is seen as a diplomatic jab to president's china xi jinping. it came the same day as his top economic advisor was at the white house. any thoughts on whether trump will reconsider his position on

tariffs and where does the road map go from here >> as far as what the president's mindset is, people have said it's clear he has made up his mind. that he already decided on the round numbers, 25% for steel, 10% for aluminum he doesn't want any countries to be exempted. it appears he thought this through and this is the decision he arrived at. sources say the white house is planning a rally in pennsylvania for next weekend, we could get a formal signing that is tied in conjunction to that event. unclear what that paperwork would say as far as the implementation date of the tariffs. so there will be many critics who will try to get that

implementation date to be far out in the future to give them some time to negotiate with some allies and try to explain the situation to them. >> kayla, thank you. let's go to eunice yoon in beijing with the potential response from china. >> the foreign ministry said that global trade would suffer if all countries follow the u.s. example. the foreign ministry statement was softer in tone compared to past statements by the government, that could be because there's a widespread feeling here that china may not see impact at all from the tariffs. we were speaking to steel companies and aluminum producers and they said they don't sell a lot to the united states in fact, less than 3% of steel imports are to china, and for

aluminum it's 6% they said this was a counter productive move for the united states, saying this is a stupid trade protection measure, which will only make the u.s. weaker instead of stronger, over protection of the u.s. steel industry will only make the industry more outdated also speaking with a former government official here who said that the bigger impact is not going to be on china, but it's going to be on traditional u.s. allies like japan and south korea. we saw officials from those two countries saying they're in negotiations talking with the trump administration trying to get their voices heard before the final details of those tariffs are announced later next week >> eunice, thanks for that we're also getting a strong response from the eu karen tso has the latest on that angle.

>> shockwaves are being felt in europe after the announcement of tariffs to the eu for the steel. the eu president, jean-claude juncker said the move represented a blatant intervention to protect u.s. industry and that the eu will react to protect its interests the german government spokesperson saying the german government rejects u.s. tariffs on steel and aluminum. we heard from the economy minister saying these tariffs would distort world trade and saying europe would respond appropriately if the u.s. went ahead with plans here's the reaction. steelmakers and automakers are selling off sharply. arcelormittal is down about 4% they released a statement saying steel producers around the world

should work together to address the issue of overcapacity. saying it was addressing the impact of the u.s. tariffs on its business automakers also rely on a global supply chain this is in doubt and nafta crops up automatically, too what happens to those talks. one final nuance, we have a key speech from theresa may outlining her vision for the uk/eu vision it's a reminder in a trade war, would you rather be in a trading block. back to you. >> let's touch on that theresa may speech lots of question marks about the specifics as it relates to brexit and the irish border. if the prime minister gets a question or makes a comment around the steel tariffs, it will be puff tougher for her to answer it. she'll have to walk a tightrope

of not annoying president trump much. >> it's a tricky one domestically the steel industry has been on its knees in recent years. it's just trying to get back into the game with restructuring across the steel industry in the uk you're right, there's the security relationship with the united states, but this is the problem all along, can you separate national security and trade? this story has a whole bunch of issues across economies in the uk and europe. you know this discussion around brexit as well it's been an ongoing discussion whether you have more power to be part of negotiating block like europe, part of the eu or whether you want to be a stand-alone power. if you think about this trade fight as it plays out, where does it leave uk steel makers? would they be a casualty in a situation like this unable do anything if the eu retaliates and the u.s. has this trade implication for tariffs that lingers for years. the uk would be in a very, very

difficult position for steelmakers. >> karen, thank you very much for that looking forward to that prime minister's speech. that's at 8:30 a.m. eastern time. joining us now is tony cresendi let's get your xhecomments on t tariffs. >> more than likely the actions from here will be targeted and surgical rather than something broad. this was done under the u.s. trade law called 232, which allows for this. section 301 is where the united states could say nation x, y, z, we don't like the damage you've done to us over time here's a large retaliation that would be something different and not something we

would expect it's also important for investors to take perspective on thisissue. i sit today in rockefeller center where most of the people in this tall building are service oriented workers 85% of the work force in the u.s. is service oriented we don't care about steel and aluminum, the u.s. economy will chug along and keep going. it's an important issue from an animal spirits standpoint, how investors feel it's important for the administration to calm investors. we would look for actions or words from them that would suggest we should be calm. >> you said these tariffs were kyrgyz c surgical one reason the markets reacted as they did is because they thought it was not surgical and that there was chaos going on at the white house. they felt haphazard in nature. >> if it's just steel and aluminum, for the u.s. $19

trillion economy it's a drop in the bucket yesterday the markets extrapolated, looking forward to say there could be more of this. more actions from the u.s. and more retaliatory actions from other nations. that's the worry we would expect since this is an administration in washington that seems to be market friendly, that ultimately we'll take actions and use words that soothe markets we don't want to overreact to this yet what are your thoughts on the impact to the u.s. consumer? will it raise consumer prices, the reaction to inflation, and what do you base on president trump's words yesterday about the tariffs >> there will be no effect on interest rates it's too small a portion of that 40% of the index is the housing market that relates to rents and things

of that sort the service sector is what matters most it's not in the service realm. and probably won't affect it for the bond market, it depends on how the equity market handles it and how the credit market handles it and whether it looks to other actions and other retaliatory actions that might occur and that might upset the animal spirits that have been lifting the markets. on the medium to long-term strategy it doesn't change anything in the short-term you want to own bonebonds. this is something that people have worried about, the rise and flow in bond prices, but this shows why you have to stick with them, things can happen out of the blue >> thank you very much still ahead, trump's tariffs folly, what the "wall street journal" editorial board is calling the president's big move

on trade. and a look at where the dow is trading lower by 114 points. nasdaq off by 22 "worldwide exchange" wilbe t back

good morning welcome back to "worldwide exchange." the white house announcing plans to impose new tariffs on steel and aluminum imports the "wall street journal" coming out strong against the plan. the editorial board writes this tax increase will punish

american workers, invite retaliation that will harm u.s. exports, anger allies abroad and undermine his tax and regulatory reforms. a very strong opinion there from the "wall street journal," which is usually supportive of his business policies. >> i also like how they -- we tend to fix ate over china in terms of where we'll see the retaliation, but they say canada is the biggest buyer of steel accounting for 50% of u.s. steel exports. you have to wonder how that complicates the nafta renegotiation. >> also look at the ft today there's an interview with the eu trade commissioner an interesting take on that. saying we wanted to deal with this idea of chinese overdumping of steel

but those actions will force us to react into a different way. even if the intention was to deal with china from president trump, there's been global repercussions from it. still to come, more on the tariffs. what the new plan could mean for the u.s. economy. and a quick look at u.s. equity futures the dow is lower by 134 points. the s&p down 11, the nasdaq down 27 more on market action coming up. . thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

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that table was like... so big! can one bottle of new dawn clean all the dishes? we did it! 6,000 dishes! a drop of dawn and grease is gone. welcome back to "worldwide exchange." what does the new tariffs on steel and aluminum mean for the economy. let's look at u.s. futures and see what they're doing down 150 points. the s&p is down 11 points. the nasdaq down 27 yesterday we did see markets down 1.7% for the dow.

the nasdaq and s&p down over 1%. let's talk more about that impact on the economy. steve liesman joins us with his take >> good morning. i'm hearing a lot of negative commentary from economists about this i don't think it comes directly from the impact of steel either imports or domestic production we're talking about total imports, 0.2% of gdp but u.s. production being 0.5% that's not where the impact comes from look at how the market reacted here's one way to gauge the impact if you look at what happened to market caps yesterday, we call this stealing value from the tariffs. this is after the close. steel stocks gained 2$2.3 billin in market cap. the s&p lost 3$328 billion in market cap you can say how can that be given that it's such a small percentage of gdp? the reason is because of quotes like this from goldman sachs

the possibility that this spreads. this could lead to other trading partners taking similar action the and could ultimately weaken the international trade conventions like wto rules, they go on to say there's a good chance this could lead to the president to announce he intends to withdraw from nafta that's where the concern comes from, the amplification of this. in addition it will mean higher prices >> steve, just a tweet here from president trump. he says when a country brackets the usa is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good and easy to win when we're down 1$100 billion with a certain country and they get cute, don't trade anymore. we win big it's easy. essentially he's saying when they have a massive trade deficit with a country like china, the retaliation is less likely to be pronounced because china has more to lose than the

u.s. is that fair >> i'm glad you were getting that meaning out of that tweet i didn't understand what it meant. that's one way to think about it if somebody wants to give you something for free, you should take three of them if countries are dumping steel in a country or dumping a product, the best thing you can do to retaliate against them is buy more product when a country is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good i don't know anybody who thinks trade wars are good, but the president apparently does. >> steve, thank you very much for that let's discuss more about the economic impact of the tariffs david rosenberg joins us first question before we get into the nitty gritty of the economic impact, you herald from

canada what's the view north of the border on these tariffs? >> canada gets hit the worst out of this. it's now trying to get an exam sh exemption. the view of canada is universally concerned. does it make the nafta renegotiations that much harder? is this a precursor that there could be a full collapse of nafta? this raises the odds people say he's just doing what he said he would do during the campaign a lot of people were also saying you have to basically think about he's putting into play the increasingly negative trade actions it wasn't steel and aluminum he started this off with the dairy farmers, software, lumber, what the administration tried to do with bombardier this is an ongoing string of

trade actions against our partners it's hard to say what will happen to nafta out of this, but it could get abrigated >> what do you think about the automobile sector? >> i think it's one of these sectors where it will great winners and losers as far as the u.s. is concerned. from a market perspective it means several industries now will face a margin squeeze it will raise prices in the united states in certain parts of the goods producing sector. we have to keep in mind one thing. steve didn't mention this, basically you run a current account deficit, you have a capital account surplus. i find it astounding that nobody talks about the fact that the balance of payments have to plans. nobody has mentioned that china owns 1$1.2 trillion of u.s. treasuries that's what happens. basically the u.s. runs a trade deficit, and at the same time runs a capital account surplus

last year because of the trade deficit, the u.s. sucked in money into the stock and bond markets. the trade action from china may not be putting tariffs on exports of u.s. soybeans, they won't necessarily dump all their bonds, but maybe they won't show up in the treasury auctions that will be doubling under the fiscal policy of the u.s. government. >> respond in the currency market we've seen that before >> they might. but all they have to do is not show up as they normally do. the fiscal policy will raise the size of the treasury funding options. >> we have to leave it here. thank you very much. >> thank you that's pretty much it for "worldwide exchange. let's check in on the futures markets before we go we're down about 150 points. >> nasdaq lower by 30. s&p 500 is lower by 12 >> much more to come on the

steel and aluminum tariffs on cnbc "squawk box" picks up after e th short break.

. trade turmoil. wall street plunges down the same amount the previous two days as president trump announces new tariffs on steel and aluminum. from a trade war to a new cold war what russian president vladimir putin said exclusively to nbc news that is getting attention this morning. and a tale of two retailers. nordstrom falling sharply. the gap is soaring after their holiday quarter reports. we'll dig through the numbers on this friday, march 2, 2018 "squawk box" begins now.

♪ live from new york where business never sleeps. this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. yesterday we saw a huge drop for the stock market this morning futures are in the red once again futures down by 163. s&p off by 12. the nasdaq off by 32 what's most significant about this is the steady drops that we've seen all through the course of this week. >> except for monday >> except for monday we have seen declines that have continued day after day. yesterday big surprise market had been up by as much as 156 points at the time it was down by as much as