50%, we tax the same coming into our country at zero. not fair or smart in we'll start with reciprocal taxes so we'll charge the same thing they charge us each 800 billion trade deficit-have no choice make sure you join us, "squawk on the street" begins right now. ♪ >> good friday morning, i am carl quintanilla with jim cramer and david faber. stocks look to add to yesterday's losses s&p 500 is now down 1% three days in a row. europe is feeling the pain down to 2%. we'll get michigan sentiment in about an hour. yesterday's massive sell-off,

the president what he's saying today and how the markets may react, we'll go live in the house. >> autos and airlines, we got more of those names and we'll dig in the curling team is at the big board today, we'll talk with them and throw some stones before they ring the opening bell stocks are selling off off the globe one day after the president announced the plan hours ago, he tweeted when a country usa is losing many billions of dollars on trades, trade wars are good and easy to win. example, when we are down $100 billion with a certain country and they get cute, don't trade anymore, we win big. it is easy if you don't have steel, you don't have a country >> i am not surprised of this. first time i am going to come up with an anti-panic message

this is our president who's heavily influenced by numbers that shows tremendous decline in the amount of -- number of workers in the 1990s cut dan damico has been on "mad money" talking about navy and tanks, talking about the need of having a steel industry, which was not difference of what we heard from president kennedy we think the market is going to keep ongoing up. when i interview the president multiple times ahead when he ran for president, this came up every single time. he takes this cue from i am going to turn the floor over in a second from the speech and there is a may 24th presentation by the national security investigation steel, section 242.

there is more than half of steel located in china this is about mexico and canada. it is about massive supply in china that's lowering the price for everybody. it is about china. it is not about vietnam other than what's exported to vietnam. it is not about canada to some degree, it is about brazil and about korea lets get the countries right and i am going to go on the other side if you want to sell, you feel this is the time to dump, go right ahead. i am not going to stop you >> what about caterpillar? >> caterpillar this morning fro morgan stanley talks about heye denically priced in at this level. >> automakers?

>> i do believer dan damico's number you are talking about nxpi has more dollar amount in a car. it was purchased by qualcomm >> no. they have not purchased. >> that's right. they're still waiting for china. >> yes but, there are other devices, nxpi, that's far more important for the cost i would argue it would soon bee nvid nvidia it is a lot of what you can do for a living but it is not what i can do for a living. >> i don't understand of this may be a wider battle. i don't want to call it a war yet, why this would not be bad for investors the world over the merging market investors we can discuss the politics behind it or the reasons behind it and they may be justified but that does not necessarily mean that it is not going to be bad for stocks

for example, lets discuss the fact that in august last year of the investigation of china they have a year to do that. the report is due in august of this coming year that to me is a much more important moment if and when this is the first shot fired in what will be the bigger battle of china specifically. by the way, you may look at the numbers and china's steel but that's not really true it goes to south korea and coming out of steel and ends up in mexico and here >> so i don't understand why if this road continues to be one that they go down, it is not bad. >> it is good for the u.s. steel workers. >> for the 300,000 workers in the steel industry >> it is not >> bad for the investor public >> i did not say gm, ford motor general dynamics

>> is it going to make the cost of goods more expensive for consumers? >> if we start infrastructure then what? >> if we do infrastructure, we can go on, we'll go over to laguardia which was largely chinese steel. can that go up yes. was that imported from mexico? they cannot maintain its prices because of dumping i am not recommending the stocks of companies that are huge buyers, am i going to tell people to sell boeing at this moment is boeing a trade out? okay can people get out and get back in i have not seen people do that very well. i am just going to caution people if you go off the ball court presentation or largely, you will see it is penny per share and it is going to be passed on consumers, yes

i am saying this form of inflation is tameable for verses other forms of inflation that we have been experiencing am i saying lets go buy it, i am not. we are not over sold we are stilwel well above wherew are in the lowest of february. this is can be the favorable retest david, i am urging people to not panic because panic is not a strategy >> so i am guessing journal opt ed today the economic damage will compound because other countries can and will retaliate it will punish workers and undermine tax reform benefits and anger allies, you disagree with this? >> these were stiff than a lot of people are looking for, remember looking for 24% >> potentially across the board without any. he has not decided yet but to the extent that we explain steel

moves overall different ways it is hard to say okay, we'll exempt this country or that country because china can just dump in that country, can they >> yes, absolutely aluminum they cut back dramaticaldramati dramatically >> it is actually a little lower. >> othey havevery good presentation of how much it is costing them i want to go a little bit broader here and say that it is usually agriculture that it is impacted in the first. i think people are going to say this is going to hurt proctor. i am not buying that >> listen, if you take a look at the counsel economic adviser came out last week, they

estimate between 227 and $599 billion a year demeanof u. technology theft you know who that is >> okay. >> if they continue to go down this road and it is china. the chinese like stop buying soybeans or slow buying those boeing >> maybe they heal >> they got a leader for life now. >> they're working on that >> sorry >> average cost is $36,000 lets let's go over the number again it prices steel at 1125. i am going with this >> dan is my friend, okay? it is $160 talking about a .44 or a .55

increase in cars in nvidia raises its price, you will pay more and autonomous driving, you will pay more these matter drivers is this a chance to get in there and buy boeing boeing was 279 of december 7th of last year maybe it is a good opportunity to wait for it to come in. i am not going to tell people, look, this is your opportunity to dump microsoft of the international trade. i am not going to do it. >> when are you going to know how do you know when you are in a trade war? >> we did a trade war for 30 years, we just did not act like we were. >> the men's curling team. making their way toe the floor they're going to ring the opening bell great, great story they beat the top write of the

world, sweden to win the gold. lets check in with eamon javers at the white house hey eamon. >> good morning. the 500 point move on the dow yesterday in response to the president's tariffs announcement the president tweeting just before 9:00 this morning a new tweet saying when a country taxes our product product comint 50%, not fair. we'll soon be charging reciprocal taxes so they'll charge the same thing. what's going on here internally is an internal political battle for the soul of donald trump when it comes to taxes, trades and protectionism. gary cohn against peter navarro

of the trade expert here inside the white house of the more of the protection side, yesterday, it was navarro one and cohn zero that sparked a lot of speculations here that gary cohn may not stick around in the white house. sarah sanders was asked whether gary cohn will stay in the administrations this morning, her response, i don't have any reasons to think otherwise right now. that'll be read as a response to the question it is unclear of what gary cohn going to do going forward. will he decide that he's more needed inside the white house to fight against a protectionist impulse or if he decides that he lost that battle and move on >> eamon, thanks for that. the time as eamon said jim did

suggest, cohn told kelly last week that he'll consider leaving if they went this protection >> now, when we talk impact, that's negative for this stock market gary cohn did a lot to get through the tax packet if you want to craft this scenario of why this could be a tough moment for stocks, it would be if gary left. gary is someone who makes you feel that there is not as much chaos as jim stewart describes it he makes you feel more embolden. as long as he's there, you can step up and buy many groups. >> when we come back, the u.s. men curling team is here on the floor. they'll ring the opening bell and you will hear from them in a moment take a look at futures here.

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after winning an historic

gold medal we welcome the u.s. men's curling team john shuster and joe polo, thank you. >> congratulations >> thank you >> i want to ask you in pyeongchang, you are on the brink of elimination and the story goes, you win and had a moment outside the venue, what do you say to yourself >> it is literally sitting there looking and being like taking like the moment. this is silly or stupid that i could be having a bad time being in such an amazing place wh when i come back tomorrow, i make sure i join the moment with these guys >> you guys never lost after that >> no, we had the perfect scenario and we played the top

team in the world and we had nothing to lose and we carried that through the rest of the week >> can you explain the dynamic of what makes a curler because all the dads here thinking i can do that. >> flexibility and pfinesse and good team work >> is there a lot of upper core strength >> what's a good work out regiment >> curling is about being able to recover and ready to go 100% in about 30 seconds of after a minute break we do a lot of inner training and the core definitely, we put in the time at the gym as well as the time on the ice >> do you think u.s. is on the brink of a new dominance in this sport? >> i sure hope so. there are a lot of new curlers that's coming here shortly

i think we'll have a lot more dept depths >> mr. t talked to you, what did he say >> he's just saying hey guys, i am at home watching you guys and keep doing what you do >> keep going. >> yeah. okay, so we got two guys, may be two of you can explain really quick of what a typical stone through looks like what goes through your mind when you are trying to direct >> as the stone comes down, the most important thing you can do is communicate the second the stone is released, me and this guy who's the sweeper for six of the shots, we discuss how fast we think it is going and we relay it to the other end and they're trying to give us information how the orientation or the direction of it coming down the

ice. that's what we were hoping for and if it is not, we sweep to adjust the line and the speed in which it is going. the biggest thing in my opinion separates good teams from great teams are communication and how you can use that information >> incredible of the unspoken language that you have we are all proud of you. have a great time. everyone gets a turn the u.s. men's curling team. "squawk on the street" continues in just a moment

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the lower opening for all averages this morning. contin continuing heated talks from the president of yesterday's taf rif is not the last at all let's get to "mad dash" with jim. >> i was going to do the micro chip because people like that deal foot locker, it was disappointing. this is a very good company and it was making a nice recovery here why this matter because nike is up very high kevin plank was on "mad money" this week talking about lean inventory so there is no break through. one of the interesting things, i bring up nike because of china they're a big company in china if you want to do cassandra or

jerimiyah, nike is a company >> there are so many i don't want to go down that road >> i don't think it is realistic. >> okay. i understand why i think by the way lets understand that this has been talked about endlessly >> when it happens, you are ready to buy >> i remember we talked about potential risk >> 232 >> and 301 in china. in august, they got the report of intellectual theft and trade deficit with china >> right >> i don't know why you think this is just the first move. >> the things that the chinese have done. all the numbers are very raw, okay it is about how much china over produces and whether china will cut back and go to other industry that are cleaner which they can do.

aluminum is a hidden way they bring in aluminum. i am just saying, i want cooler heads to prevail, i know the market is going to be down we did have a bad february >> right >> maybe we'll revisit some of those levels lets take a look at some stocks that are not affected after we see the ones that are. >> stay with us on "squawk on the street." later, we'll have wilbur ross joining us talking authibo ts plan of tariffs from the president.

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>> the again, the vix problem were going up and people were betting. the vix let us down this morning at pretrading. futures were up about four ticks which was pretty interesting and wrong given how bad europe was at 4:30 it got worse and 5:30 it cascaded people are trying to figure out whether it is starbucks with a high single digit number or whether it is nike who where the retaliations are going to come or whether it would be apple what i am saying is that this was something that was going to happen and if there is far reaching implications were not readily available. boeing is the company that has the highest cost per device that i know because there are two million aluminum screws in the

planks those are going to go up by 10%. how about the demand >> right you are going way down the road here >> i am just trying to give a bare case. >> the usa team, they're not talking trade though, they're talking about the men's curling team the nasdaq, morgan brennan, brought us a pretty negative breath at the opening. as far as companies like u.s. steel goes, being a downgrade today saying these moves will have limited benefits. >> u.s. steel, i don't want to be too specific, they have the wrong kind of steel of some degree, they are ahot role they are tubular tubular is being used for all the pipes.

new quarter has been trying to take that market away. you could not use anything other than mexican pipes because it was too expensive. >> that tubular, it comes in from mexico and from south korea that was originally chinese. is that right? >> yeah. what i am saying is u.s. steel have historically been in trade and it has moved off because it is the lowest cost producer in the world so how can that be is in china? no these are subsidized countries korea is the ones that most people are anger about we are adamant and carl, you can talk about this that we must protect korea from north korea so we accepted certain behaviors. new core is a winner: if you are going to sell new core on this, you are basically saying gdp is

going to slow dramatically it is happening and it is good for new core remember new core is in in the best steel in cars they want the kind of business that the chinese are taking when it comes to the $4 billion renovation of laguardia. they would have liked to have that steel would they like the keystone pipeline steel of course, they would. i can go over and tell you where steel is from and it is insane but we use steel that are from countries that we would prefer to be the u.s., defense industry, john furious of the conversation, is really about the navy you know who thought like that >> who >> roosevelt, truman, and eisenhower >> that brings the cost up

again, right >> why is 232 exists >> exxon moves on refinery expansion in play right now >> again, i look at a car and i say that if you want to know what's costly in a car, it is the nvidia chip. which by the way wamo agreed with me. i am saying the property of the car, who has a thousand dollars to property a car in samsung the factory that harmon used is next to mexico that produces 500,000 cars in a year and most of them are in the u.s the workers work $5 an hour and health care is taken care of the state. nafta was 4-1 and now it is

19-1 this is a lot of complex >> let's see other things this morning away from our trade dispute. you mentioned earlier quickly during the "mad dash." micro chip it is $8.35 billion and investment and net of debt overall and 68 and 78 a share is the number they're up the journal reported on this deal were in fact the likelihood of this deal were not long ago but, it is a big deal in the chip >> thank you for saying that consolidation is happening so quickly in this countrindustry bargaining power is so important. >> mcdonald's is another story rbc cuts their target from 190 to 170 they're citing deteriorating conditions

the stock was floating above the 50-day so long and it is now back to the level that we have not seen since may of last year. >> they did not feel necessarily of this great bargain. i prefer darden, they are doing an amazing job and speak softly. >> he came in and remember when the stock was about 93 or 94, he turned the company around but it happens that you get -- you can get some turns papa john's was close rival to pizza hut and domino's and papa john's fell on hard times. wendy's numbers are good i do like the number from burger king >> it is a horse race. >> it is a tough call because mcdonald's have been out pacing rivals on a comp bases

it is a little over done because the dollar is good for them. when panic is in the air and people see a stock that's up so much, they're going to ring the register register i think boeing is a stock to watch again because boeing has the most in china of the major industrials that i follow and has the most at stake of the amount of aluminum you cannot get a plank you cannot jump the cue. you go to mullinburg and you say i want to be at the top of the cue, great airline he's going to say listen, i am sorry. we cannot make the planes you need we are trying to expand everywhere i think that's important another one to watch is something that david brought up this week which is united tax and there is a company, you speak big company. >> go ahead.

>> general electric. general electric >> what do you put your hand over your mic? >> i put my hand over my heart >> you can see it is free trade more than any one. >> a couple of other things i want to get off. >> sure. >> xerox have been falling half of its net worth is wrapped up on this they filed a loawsuit this morning, we are suing you because we need the entire board. they want to nominate ten directors to that board as oppose to the four right now as icahn nominated. we'll see if we'll get to that here is some of the opening letters they sent this morning, they're fun to read. a board is so scared that

they'll use every technical advantage thof their disposal. it is absurd they want this company, of course, to dissolve the joint venture with fuji if they can and get rid to what they called of a certain extent. they already have on that and remember they're buying 50.1%. anyway, continued battle going on there they sue to say you cannot do this and you cannot close the window on us and then there is qualcomm, we have not talked about that >> it is coming. tuesday is the vote on qualcomm. >> hock tan.

>> what are you hearing, david, what's the horse race there? >> it comes down to the index fund, they represent 20% of the vote here. they all vote. retail is also in there. retail does not vote that much retail is more favor towards management, it is typical. we did get a fun per nasa coming out yesterday for some reason decided to come public, hey, we are voting our 8 million shares in favor of qualcomm talking about a $60 stock. that's a pretty significant amount we are not going to vote for the qualcomm slate the qualcomm board committed of getting a higher price >> did they give you a number, are they saying 750? >> the question is what is the number they engaged last friday and a week ago the other side says it is not

true we are fully ready to engage and one side says where? at a price of $120 a share they also said 79 is not best and final. qualcomm keeps on turning that way when they went down from 72 to down to 79. it is up to shareholders what i am curious to see is if they get four directors and not six. what do we do then >> that's a mess >> would hock lock himself up? >> he says he can back away from that so we'll see >> it is the continued battle over $400 billion. >> a lot of people feel qualcomm 6% are the highest >> yes regarded as a jewel and hock tan does not spend as much is that into consideration of

any sort of these index funds? >> they'll make a decision of funds. you said block box initially >> sorry, what i am trying to figure out is there are a lot of people, i speak to an industry and the first thing they say is we cannot have the jewel of qualcomm be bought by hock tan who strips this. >> we'll come back to a bigger theme which is china of a certain extent there was a report that they wanted to take on the view now and secretary mnuchin is pushing back on that the question becomes even if broadcom becomes a plan to be and moving to singapore. the committee for investment of the foreign investment in the u.s. reviews these deals on a

national security basis would object we set our part. >> one last story, jim, advertising, we had the wpp guidance now, it is proctor saying they cut their digital spend by 200 billions more than we thought >> i want to counter that by saying that the company that has the best consumer package good growth other than in generality isclorox i do think if you want to go to where the future is, you have to go to the web. a lot of companies would love just to negotiate a better price without the bid. when you go on a site, i visited whole foods on sunday and sure enough, i had a whole foods ad on my ite, it is a power of

what -- you are going against amazon, you are going against google cloud and against the future be my guest. >> they did not do so well >> i believe you >> the dow is down 305 down about a thousand point for the week so far. lets get to bob pisani on the floor. >> not getting much better, 6-1. look at the sector consumer staples, lets call it not as bad as the rest of the world here health care is holding up better tax and consumer discretionary, if you look at what's going on in jurisprudeneurope, it is notr stocks, all the big finances are down siemens are down and airbus is

down the number one risk is powell and velocity rate hikes. it has not change. we also have political risk in terms of the white house tur l turmoil. if you talk about cohn levering, they care very much about that other central banks out there, kuroda talking about maybe be they're going to end their money policy look at the japanese markets, everything there, the nikkei was down 2.5%. that's worst than the rest of the world than i think of kuroda's comment and if rick was here, i think he would point out the yen is at a 16-month high at the dollar. that's got a lot of people's attention here

>> steel stock century laluminum jim mentioned a short while ago, bank of america downgrading the u.s. steel they were saying steel prices likely would drop by 2019 due to challenges from the world trade organizations and also retaliatory threats and also said there would be reports of finish goods bank of america has an impact on this various group here. tough week for the s&p 500, we had three 100% down day in a row. if this holds up, we have not seen that one for a long time. last time we had four down days, it was august 2015 keep an eye on that. the 10% correction level, 2585 we are away from that. we are 65 points away from that. if you are looking for abbott. the vix is back again.

the cash vix is much higher than futures' contracts at march at 21 this does not happen very often. the market calms down and we get some kind of market reversal this is a high anxiety level when you see the fixed cash is higher than the futures. keep an eye on this one, the dow is sitting at its lows today, down 331 points. back to you. >> thanks, bob pisani. weubbe bu still to come, wilbur ross is going to join us as we go to break, the ten-yr is right around 2.84 and now 2.33 back in a minute

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intraday low jackie deangelis joins us from the heart of steel country in pennsylvania good morning, jackie >> reporter: good morning to you, carl. well, here at zuckerman industries in pennsylvania, a steel manufacturer, the management announced yesterday that employees across the board will get $1,000 bonus when president trump does impose tariffs on imported steel. so they are applauding this decision now, steel manufacturers in the u.s. have been waiting for this. they are saying president trump promised them he would help level the playing field, and they finally got what they asked for. >> this is going to create a lot of opportunity for us, quite honestly we've been competing so far with one hand tied behind our back and doing well, but we have --

we have been progressing, but it's been a repressed growth you know so at this point, this is really going to level the playing field, allow us to take off the gloves and fight fairly. we know in that environment we're going to win >> reporter: now, this company employees 2,300 employees, as i said but have idle facilities they will be able to ramp up creating hundreds of jobs, management told me, and they are really looking forward to that expansion. now, the source of their steel is from north america. that includes some from canada they say if anyone may feel the impact of the tariffs it's them, but they're still in favor of it and also think canada could be exempt because of nafta. there are unknowns here. will the president actually go through with this? yesterday we saw a big bump up in steel stocks. today they're telling off a little bit, but overall, from the steel industry's perspective, saying net-net, a positive, guys >> jackie, a good element of the

story we need to watch jackie deangelis talking about the steelmakers. dow down 3.12. stock trading with jim in a moment "squawk on the street" continues after this break and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. at&t gives you more for your thing. your getting serious thing. that moving out of the friend zone, moving in together and getting two of everything thing.

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time for jim with trading. >> i often try to find the stock that would bounce first if you wanted to take a stand would it be red hat? sales force? these companies reported great quarters no reporting last night, remarkable quarter. why does it matter splo splonk is big data. with our without rolled steel. nothing on splonk. do you hear me >> loud and clear. >> that's important. emerson is on tonight. why does it matter 20% of the business is from asia growth from china, about 10% one of the great companies on earth and mark bristo. barch david, turned out to be -- see if you can guess because it was on "jeopardy. bitcoin! >> i was going to say bitcoin but that's not really --

>> david, do it in the form of a question. >> very hard hitting that button in the proper timing. >> he was watching a lot of people confused you with watson. i thought it was einstein. >> i thought bitcoin, repository of wealth -- mts i'm asking dr. gold once called me a sissy on-air. >> did he really >> he said -- i says, geez, is it dangerous to mine in those places that you mine and he said, well, if you're a sissy. i didn't know where to go with it. >> called a sissy, a simulation and lennon the three things people come up with. >> i use lennon on my home because people confuse me. he as a mass murderer. i like to think of myself as a pu pureist. see you tonight, "mad money," 6:00 p.m. eastern time. when we come back, the secretary of commerce wilbur ross dow's bown 3.50.

the majority of steel led to a road after about 20 months we need to focus on what actually happens as opposed to speculating. that they expire early like back then >> either could occur. given what i've been reading in the brpress already getting pushback from trading partners the scope of the tariffs could, in fact, be narrowed over the next week or so. the more likely outcome in my opinion, the tariffs get enacted and we see something down the road, which reduces their overall impact. >> someone like the former ceo of nucor, dan dimicco says this is an overreaction in the market and stocks are screaming by. do you agree >> i do.

we need to take a step back, realize that the u.s. economy is looking like it's going to grow at about 3% this year. profit growth somewhere between 15% and 20%. and we look at the forward pe ratio of the s&p down into the 16 times range now far more attractive than the 18.5 times trading begins of the year for at least the next 12 months, buy the dip. right? valuations become more attractive in the equity market. bonds expensive. take advantage of the better growth story within the context of a balanced portportfolio. make an art, others, also, a skirmish in a trade war particularly with china and make an argument priceless go up, level the playing field and try to reclaim a standard of living for people we'd given up for a result what we've given up in the trade deals and it may be good for the american worker but bad for the american investor? >> yes not the opening salve o in a

parade war 2.2% of imports from china. >> we can go down a lot of roads to get to a lot of other -- $400 billion investment, not about steel. intellectual property and so many different areas and 301 investigation going on, a lot of people are focused on from the ustr i can just, paint a case where -- >> yes. >> -- caution should be administered here as opposed to buying on the dip. >> i absolutely agree you can paint a picture where it becomes a bit more ominous but what i would say is coming back to the fundamentals right? stocks continue to look more attractive relative to bonds we're not saying only own stocks we are lake cycle. take a balanced approach to investing. make sure you have fixed income to offset the equity volatility we think is a bit higher think year given the healthy outlook for profit growth we thinks stocks are a buy at the current juncture. >> transports selling off on this trade war potential and talk about tariffs

you've seen big industrials like caterpill caterpillar, boeing selling off on higher steel and aluminum prices did you stay away from those areas in market or buy into those areas of the market? >> i think you likely steer clear of those areas until there's a bit more clarity on what landscape will look like going forward. we think it is -- would be more prudent to take risk in other areas of the market. places like financials we still like energy i don't think you can be short tech given the way it's behaved over the course of the cycle to me, what this represents is another opportunity for investors to take a look at their portfolio, see how they're positioned evaluate whether facts changed and make sure they're in the right direction moving forward in 2018. >> this discussion makes a cone departure sound pedestrian is it? >> it makes it sound a little pedestrian, but i think emblematic of something that would feed into the story line that investors are concerned with i don't think it's a matter of that would be the decisive change in how policy's going to

be executed the next couple of years, but i do think it's one of those things that investors might look over their shoulder about. basically, what does it mean for the general tone of leadership, the priorities of the white house? i also think, though, this trade effort, even if it turns into like a longer-lasting kind of trading volleys about this whole thing, it has to be part of a larger discussion of, are are risks to the economy is it fed going to administer tough love despite the noise be fixated on that to change the market otherwise, we could wake up one day saying, wait a second. it's phang again interest rates off highs bond yield eased back and companies buying back $800 billion worth of stock you could see it happening at some point and a few plays on the s&p before back to the old lows and say, okay was that it or is this the big one? >> saw buying yields come down yesterday, i don't think i would have expected to see given the

inflation spheres this stoked in equities. >> exactly david's point. one of the risks that stems from this, higher input prices for these corporations higher input prices passed on to the end consumer now looking at an environment where the economy's bumping into constraints, running out of available workers, wages rise. prices rising independent of the wage pressure and perhaps inflation moves faster than people expected. the biggest risk in our view continues to be the market underpricing the fed reaction function in 2018 looking for four hikes powell made that clear in his testimony this week that's not outside the realm of possibility. >> well, buried yesterday. tell you that. david, mike, thanks, guys. when we come back, backlash over the tariffs a look at the companies that will be hit the hard effort and which ceos are speaking out against them heard from several yesterday wilbur ross, the commerce secretary joins us

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welcome back to "squawk on the street." president trump's announcement about tariffs stunned white house staff and cabinet members. the backlash, swift. our kayla tausche joins us with more from washington kayla? >> reporter: good morning,

morgan's in a gaggle this morning the press secretary said president trump is not phased by the market reaction and the tariff levels announced yesterday are not expected to change sarah sanders says never say never but i think he's committed to moving this forward, quote/unquote. the president tweeting the steel industry is in bad shape if you don't have steel you don't have a country, he said. earlier he said trade wars are easy to win. but not all trump's advisers are comfortable with the decision. the longtime well-documented policy disputes among staff reached a fever pitch this we're. gary cohn argued yesterday prices would rise for many companies producing steel and aluminum goods and the consumers who buy them but peter navarro, president's trade policy advisers told fox news last night the tariffs were beautiful. a strong step to defend workers. while those voices were diametrically opposed one in the middle the dsecretary of defense not i the meeting, in a memo last

week, targeted tariffs are more preferable that a global tariff. in addition, we recommend an interagency group to further refine the targeted tariffs. noted to work with allies to further fix the china issue, but the president did not take that advice allies are not going to be shy about fighting back. in 2002 when president george w. bush levied a 30% tariff on steel, europe readied its own tariffs on harley motorcycles and tropicana juices after the wto ruled the u.s. tariffs were illegal. bush rolled back the tariffs days before the measures would have gone into effect. we will see if the intervening days between now and when president trump signed the tariffs have any new effect. morgan >> hey, kayla, such great reporting on this thus far in terms of defense secretary mattis and the memo out recently that you just quoted, is there any sentiment he could still ent enter the equation in terms of

now and next week? >> reporter: seems he already shared his view in the memo sent to the department of commerce and left it there. he wasn't in the meeting yesterday and all mentions of the military the president directed at general kelly, chief of staff i'm sure if secretary mattis feels strongly about targeted tariffs versus the blanket tariffs he'll have many routes to weigh in to the president, butted president made up his mind and seemed to have ruled out several other options in that meeting as they were going sort of choice by choice and he said why each one would not be a good fit and why these global tariffs were what needed to happen >> kayla, thank you. kayla tausche in washington, d.c. for more on the tariffs and impact they'll have on the steel industry, joined now on the phone by todd llebo thank for join ug. >> thanks for having me. >> you're a private company. let me make sure i got this right. you buy american-made steel from

mills and provide the steel manufactured for construction, transportation equipment et cetera basically end markets? are you for these tariffs? >> yeah. that's correct i am for the tariffs you know, the devil's in the details in terms what the actual action is going to be. we heard the president's announcement and will await next week for the actual ruling and whether or not there's more specifics than just the global tariff across the board at the 25% level. >> what would you like to see in terms of details do you want to see more targeted or seeblanketed across the board? >> good question hybrid approach. more countries are shipping steel to the u.s. that are, what i would consider, at subsidized prices and unfairly traded and we need to address those i think that as we approach the global tariffs certain countries, there should be exclusion and certain products

that should have exclusion i think the exemption process will be key but i think for a first move i'm for a global tariff to make sure that we prevent more deterioration of the domestic steel industry and i've seen over the last ten-plus years. >> and the u.s. benchmark for steel according to platts hit a seven-year high yesterday. given your place in the supply chain here with this material, higher prices, what do they mean for your business and do those higher prices pass on to your customers? >> a good question, because we're sitting in the middle of it and we want to make sure we're supporting our customer base, and keeping them competitive at the same time making sure we have a strong supply base here domestically. right now we are passing on higher prices, although i think the price argument is a little blown out of proportion. when you think about the effects on the american consumer, the car is a great example when you think about the price of a ton

of steel and how much goes into an automobile. the actual price to the consumer is nominal i mean, the price of steel-toed using a benchmark of hot rolled coil domestically, $800 a ton. even if it went up the full 25%, you're talking about less than $200 to the end consumer per car. i really think that the price equation to the end consumer that's been discussed in the market is not really as significant as it's being made out to be. >> the price equation to the end consumer not as dramatic as what's kicked around this week, but in terms of your customers, be them construction folks, transportation, equipmentmakers, some of your other folks buying your steel products, what are you hearing from them? somebody's has to absorb the higher costs right? >> yeah. i think that prices are rising i think there's also fundamental support for a rising price environment with global pricing as a whole beyond just the tarif tariffs. sure, the tariffs play into the

curve price environment but there is fundamental support the steel market is a cyclical market we see volatility in pricing for a long time and will continue to see pricing in cycle and just at a point in the cycle now that with fundamental support and prices are elevated, manufactures will have to absorb higher costs i think those that have been sourcing domestic steel are used to this and prepared for this. i think those that have been sourcing steel from countries that have been subsidizing products, the united states will feel it harder and the reality is, it's a tough situation. if you look at it from the supply side of it, those companies that have been receiving steel from those countries at subsidized pricing, it's -- at prices that are below what the domestic mills can potentially make steel for there has to be some action at the same time you want to make sure that you don't get too

crazy with pricing that effects the entire manufacturing base. >> todd, quickly, because we have to wrap this up i'd love your back -- back up a bit. the big picture. you source largely domestically, what have you seen in the steel industry over the last five, ten years in terms of capacity declines and if this happens as it appears likely, what do expect to see in terms of capacity increases >> look at the industry as a whole from a global perspective, over the last 20 years we've seen global capacity over double we've seen the majority of that capacity increase happen internationally, specifically china, a significant portion of that we've seen domestic capacity decline. i've seen domestic mills shut down and we've seen domestic production down from peak levels look at the capacity utilization levels today we're operating in the low 70% for steel production we need to get the numbers above 80%. we need to have some imports come into this country but they

need to be imports that are fairly traded. if we can get capacitization up, getting existing mills operating at better rates and see mills come back online and we need to make sure there's a strong domestic industry here in the united states because the steel industry is the foundation for a lot of other industries and if we look at it from a long-term perspective without steel how does that affect downstream manufacturing long term and what are the other countries doing long term in terms how they are going to approach manufacturing in the future? so we want to be independent in terms of steel production. we don't want to rely completely on that and from a security perspective. >> todd, one last thing. e were asked the ceo of air stream, the trailer company, earlier in the week about this quote, we're fearful of that, bound to drive up domestic prices we source all aluminum domestically but the knockout effect from tariffs can't help us watching carefully and hope the administration does the right

thing here are you saying utilization can offset those >> i think they can. we have to see the results of this action. we have to see how the mills actually respond to the tariffs. we want to make sure that from a pricing environment what we don't do is just have prices shoot up and then allows imports to come in at the levels they're coming in and we don't achieve what we want to achieve. it's important that in what happens here, the industry has to respond in a certain way to achieve what we want to achieve from these tariffs and we want to see greater capitalization, more production and the industry has to do its part now based upon what the government is doing in terms of tariffs. >> todd, great insight thank you for joining us todd leebow, majestic steel. >> thank you have a great day. going to break, look at retailers today. foot locker ands penney hammered after reporting

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time for our bts fund. back discussing potential winners and losers of the new trade tariffs if we get them. >> if we get them, right no trade etf, sectors very much in play. yesterday the xme, s&p metals in mining etf got a good pop. think about these as a way to gauge the markets estimated probability of whether, in fact, we do get some of these measures into play. this one is giving back, u.s. steel a downgrade today. some of those steel stocks directly in the crosshairs pulling back today on the consumer side, iyj, u.s. industrials etf that had pulled back more than the market yesterday, obviously users of all of these materials again, not something that it's going to be in effect tomorrow

on the earnings but one to watch. another one in the land of unintended consequence to potentially next round if it gets rolling people worried what it means for agra business in the united states if there are retaliatory measures by other countries, a major export here. the moo, the agra bisset f has been on the weaker side and that would be one that might be vulnerable if, in fact, u.s. farm industry is targeted. >> thanks, mike. all right. when we come back, commerce secretary wilbur ross will be with us on the heels, of course of thaanuncentt nome yesterday lots to discuss with the secretary.

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and on almost every one of those calls pg&e is responding to that call as well. and so when we show up to a fire and pg&e shows up with us it makes a tremendous team during a moment of crisis. i rely on them, the firefighters in this department rely on them, and so we have to practice safety everyday. utilizing pg&e's talent and expertise in that area trains our firefighters on the gas or electric aspect of a fire and when we have an emergency situation we are going to be much more skilled and prepared to mitigate that emergency for all concerned. the things we do every single day that puts ourselves in harm's way, and to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. good morning, everyone i'm sue herera here's your cnbc update at this

hour a suits bombing in kabul, afghanistan killing one and wounding 22 others the blast occurred in a area home to a police station a bit earlier in the week afghan president ghani called on the taliban to take part in peace talks to "save the country." in west africa, gunfire and explosions rocking the capitol the government says four islamic extremists were killed after attacking the french embassy and attacked army headquarters in th that capital. and dismissing reports as lies by the u.s. to pressure north korea. it does not produce or stockpile chemical weapons. here at home in california, heavy snow causing problems in parts of the sierra mountains. whiteout conditions. more than two feet of snow has already fallen another foot is expected today and we're not having such

great weather on our neck of the woods, either. that's the news update at this hour. back downtown to you carl >> oh, going to be kind of a tough 24 hours here on the east coast, sue thank you very much. and welcome back to "squawk on the street. carl quintanilla and almost an hour into the trading session. dow down another 1 1/3%. and got breaking news from wilford frost who joins us on the phone this morning >> hey, carl, in relation what ywhat -- to what you just discussed a huge, huge mistake by the president. he says he still is a pottive in generin -- supportive of the president's agenda but it could have global long-term

repercussions. i feel the disappointment in the action is the fear of retaliation as opposed to whether or not it will spike inflation or anything like that. it's the fear of what this could do to global trade going forward. that's from the ceo of one of the major u.s. banks >> well, wilfred, thank. wilfred frost reporting, of course, on these tariffs we've been talking about them all morning income, they obviously impacted trading yesterday when we first heard about them and continue to be the focus, this president's plan, of course, to impose new import tariffs on steel and aluminum something he is expected to officially unveil next week. has will it mean for nafta u.s. trade, equity markets and the trump white house? bring in the u.s. commerce secretary wilbur ross who joins us of course on cnbc interview from florida always a pleasure to have you. particularly at this important time let me begin by simply asking,

are these tariffs going to be exempted for certain nations, or is it your expectation when they are imposed it will be across the board? >> well, what was announced yesterday by the president is a very broad concept of 25% on all steel and 10% on all aluminum. so we'll have to see the intricate details, but that certainly is the broad outline, and, therefore, it will have a fairly broad effect, but it's a trivial effect people talk about cars it's about one ton of steel in a car, and the price of a ton of steel is $700 or so. so 25% on that would be one-half of 1% price increase on a typical $35,000 car.

so it's no big deal, and it certainly isn't anything that should have taken 2 point some odd hundred million dollars off the price of general motors. it's a tremendous overreaction. >> i want to talk about the market reaction in a moment. just coming back to what you just said. so it would apply, though, to every country? whether ally or not in terms of the import of steel and aluminum from those countries nap that is your expectation correct? >> well, that's what the president seemed to announce yesterday. >> what does that mean, "seemed to announce," commerce secretary? yeah. >> let's assume that to be the case >> okay. >> this is not the first time that we've put tariffs on steel. we have tariffs on many forms of steel. the reason that we've had to go this route is that the conventional trade methods don't

solve the problem of systemic global overcapacity and global dumping, because people, you put a tariff on it coming from one country. they transship it through another one. so it has to be broad. it has to be global in its reach in order to solve the fundamental problem. >> commerce secretary, you mentioned, of course, on the market's reaction perhaps in your words an overreaction, given the actual cost that would go up to u.s. consumers or to make goods that are -- that are made of these underlying products but there's an argument to be made that this is simply the first shot in what will be continuing pressure from this administration, particularly as it relates to china, and many people pointing to the 301 investigation that was begun by the uscr last august. >> august. >> yeah. last august. and the -- the concern/question about, what it's going to happen there?

do you expect the administration to comment on the 301 investigation? the technology transfers they say that occurred to china you have, in fact, in the past called china protectionist dressed in free market clothing? >> well, protection of intellectual property is a very, very important issue, and the chinese have not been very respectful of it but i'm not going to prejudge what might be the outcome of another investigation. what i would like to do, though, is to emphasize again the limited impact this is a can of campbell's soup this, in the can of campbell's soup there's about 2.6 cents -- 2.6 pennies -- worth of steel. so if that goes up by 25%, that's about 6/10 of one cent on the price of a can of campbell's soup well, i just bought this can

today, at a 7-eleven down here and the price was $1.99. so who in the world is going to be too bothered by 6/10 of a cent here's a can of coca-cola. >> nobody. >> here's a can of coca-cola. >> yes. >> coca-cola has three cents worth of aluminum in it. so if that goes up 10%, that's 3/10 of a cent i just paid $1.49 for this can of coke. it doesn't mean anything so all of this hysteria is a lot to do about nothing. i explained it's a fraction of a percent on cars. now, retaliation retaliation is not as simple as the people who are crying that the sky has fallen and i'll tell you why. take a typical crop, soybeans. we're one of the major suppliers

of soybeans in the whole world, and the only reason china or anyone else buys soybeans from us is that it's the cheapest price that they can get. so the first thing is, if they were to cut back on some agricultural products, it would cost their economies more. second, in many cases, we're such a big factor, that they will have trouble finding a s s substitute where they can find a substitute, those products have already been sold in some other market so to the degree there's diversion from that present market to, say, china, that would open up the other market for u.s. agriculture so i think this is scare tactics by the people who want the status quo the people who have given away jobs in this country, who have left us with an enormous trade

deficit and one that's growing it grew again last year, and if we don't do something, it will keep growing and keep destroying american jobs. >> secretary ross, this is morgan brennan first of all, i really appreciate you breaking down the numbers and bringing us props to do that. recent washing machine tariffs a lot of haul leb hull lablu arou, how much is this is about dumping steel and aluminum from other countries and how much is about pushing companies, be it u.s. companies or even foreign companies, to increasingly set up shop and do more manufacturing here in the u.s. >> well, let's talk about the washing machines and let's talk about the solar panels many of the same people who were

crying chicken little now also be opposed to those two moves. the real reason why lg and samsung decided to do factories, and they're big factories. i went to each of the ground breaking these are 100,000 square-foot factories. so they're not small things, and they're expandable they could even be a million square feet. i believe the main reason they initiated the factories was, they knew we were going to put tariffs on similarly, with the solar panels that industry had been reduced from 32 domestic players to 2. now half a dozen companies have announced they're going to reopen closed solar panel factories. that's what we need. we cannot allow dump material to kill american jobs we should be exporting products,

not exporting jobs >> mr. secretary, it's carl. just a question. not oh much about the policy but we come back to process in one way or another you said the president "seemed" to announce this there were reports trade officials within the administration weren't exactly clear what the president would say yesterday. is this normal or should we have expected policy to have been agreed upon ahead of time? >> well, this investigation has been fully vetted by the interagency process. we had six or eight meetings of the trade committee. we've gone through numerous written comments from other agencies no end to discussions, including lots of discussions with the president. the president has been's consistent all the way from his campaign days to the present about doing something big to protect steel and aluminum

so it should not have come as a shock. now, as to the idea of differing views within the white house -- sure one of the things that the president encourages is healthy discussion within his immediate white house staff and within the congress departments of any big move, because that way he's sure he has heard all points of view by the time he makes his decision but there's only one person in washington who was elected president. that's donald j. trump so at the end of the day, it's his decision, and i believe that everybody should rally around the president's decision we only get to have one president at a time. >> secretary ross, i want to get back to this idea of jobs. have you crunched the numbers? do you have a projection you're working on in terms of how many jobs you think these tariffs will create in the u.s. versus elehmanate

eliminate? >> well, there have been something like 70,000 jobs in steel alone that were lost from 1998 through last -- 2016. there's been a similar amount of jobs lost in tens of thousands of jobs lost in aluminum at the session yesterday, just about every single company that was there said once this is finally put into bed, and is real, that they will be reopening plants and rehiring people so you are talking tens and tens of thousands of jobs being created, and hundreds and hundreds of millions of dollars of capital investment coming look at what happened with washing machines look at what happened with solar panels we need to be exporting product, not jobs

>> secretary ross, back to the larger issue, which is, is there a coming trade war with china? a., is there one coming? and, b., when the state-run newspaper of the global times warned, for example, not that long ago that boeing orders would be replaced by airbus, that u.s. auto and iphone sales in china would suffer a setback. u.s. soybean, you just spoke about, imports halted. do you believe them? >> well, here's the situation that we face the united states ever since world war ii has made huge amounts of unilateral concessions. in the early days after world war ii, it was probably good public policy to rebuild europe and japan from the ravage -- and china -- from the ravages of the war, but the mistake they made, they didn't put a time limit on the concession so as time went on, we agreed to

things like the following -- the tariff on automobiles coming into the u.s. is 2.5%. tariff on automobiles going into the european union, 10%. tariff on automobiles going into china, 25% that's a disequilibrium. so while all these countries talk about free trade, they actually are the most protectionist countries in the world. i was at davos on a panel, which you might have seen. it was televised and i asked the other panelists who were the director general of the world trade organization, the head of cardill, a major agriculture exporter, head of standard charter bank and managing editor at "fortune" and i said you're complaining about u.s. being protectionist if we aren't the least protectionist major country in the world, please tell me who

is you know what? they had no answer because we are the least protectionist. so what's really been going on is the other countries have been picking away at us, dumping materials in here. subsidizing their industries and we haven't been fighting back. the president pledged during the campaign -- >> right. >> -- and now has kept the promise. he is going to fight back. now, at any point there may be a few casualties and that just comes with the nature of the beast. >> all right secretary ross, finally, it was a february report from your agency, of course, under which you found the quantitiies threatened to impair national security section 232 action, that promulgated or brought this about. why is this a national security concern? >> well, national security is a

defined term in the 232. and it covers a lot broader things than just the military. it specifically says that we must address the overall needs of the economy, the overallaffect on jobs the overall infrastructure it's true steel and aluminum is needed directly in defense industries, however, there's certainly kinds of alloy that are used, made principally of steel, but alloys that are used to provide the armored plate for vehicles that we use in warfare. we are down to one producer of that any other that we need has to come from abroad similarly, the very high quality aluminum alloys that we need for

satellites and for aerospace applications, we have only one domestic supplier. that's a very dangerous thing. and what brings it about is that you can't discard the need of the steel company or the aluminum company to make a profit overall there isn't enough military business on its own to make them profitable so they must have these other businesses to keep the mills going, because it's the same mill that makes these other products that makes the very defense sensitive material so it's an oversimplification to say, well, defense directly is only a few percent also, we have huge infrastructure need. our roads are crumbling. our railroads need help. our airports especially need help we need strong infrastructure. the grid, all kinds of things,

in order to have a vibrant economy, and if you don't have a vibrant economy, you don't have national security. general mattis has been on record quite a lot as confirming you need economic strength, it's military strength, and he's absolutely right >> secretary ross, so glad you brought that up and certainly you have a lot of insight on aerospace and defensive leaders because of the noaa weather satellite taking place this week you brought up secretary mattis, and military and defense needs where aluminum and steel are concerned. you put out that memo last week saying that they did believe that tariffs were important in terms of targeting unfair trade practices that this is a threat to national security but also had said in that memo that, "the dod continues to be concerned about the negative impact on our key allies regarding the recommended options in the

report." basically calling for more targeted tariffs we heard something similar from alcoa yesterday. please, don't put tariffs on canada why would it make sense to be blanketed? doesn't it make more sense to be targeted based on what you just said and comments from mattis and aluminum producers >> well, my report speaks for itself i proposed several alternatives to the president, but this is a presidential decision. and the president decided that for his purposes, the most effective way to do this was a broad tariff i'm not going to second guess the president. people who tried to second guess him during the campaigns lost the primaries, and then lost the general election so i'm not going to second guess the president. he knew what the alternatives that i had proposed were, and the important thing about those alternatives, they were all

designed to achieve the same result namely, getting steel production up to about 80% of capacity. because that's what it needs to be viable as a term industry same for aluminum. and both were operating at well below the capacity utilization that's needed for long term liability. so the question that president addressed is of the various alternatives to achieve the end resu result which one did he think would be the most effective and he clearly decided on the one he announced. >> you made that point pretty clear, mr. secretary and your point about price increases. minimal is a good one. i wonder though when you listen to the journal op-ed page, the point is that it not just punishes workers or antagonizes

allies, it undoes the tax reform that administration worked so hard to pass you are not worried about that >> not a bit the journal has always been a very free trade oriented newspaper. they've been very courteous to me about printing my editorials and such as that so i don't want to say that they're totally one sided. but their point of view has been a globalist point of view for ever and i think we have to differentiate between what's good for corporate america, because corporate america is the main audience for the journal, and what's good for mr. and mrs. america. it's fine for general motors or some other company to open a factory in china instead of in detroit. but what about the american worker who's left behind i think we should be focusing on the needs of the american

worker middle class america has been the victim of all these trade practices going back for all these years. income to middle americans hasn't gone anywhere and a good portion for the reason, not all of it, but a big part of the reason is the unfair trade practiced. so i agree with the journal that in a truly fair world you'd have free trade but it doesn't exist it's only degrees of unfairness of trade and we're trying to level that playing field. >> mr. secretary, as always, we appreciate your willingness to take time with us. if you do choose to have that campbell's soup, there is a lot of sodium in there and a lot of sugar in the coke as well. just, you know, there you go >> well -- >> okay. >> very nice all right. wilbur ross, commerce secretary joining us let's get to meg and get a

sector sort. >> markets are opening down today with financials standing out as one of the worst performing sectors in the s&p. down 1%. brighthouse financial trading at all time lows, back to the spinoff from metlife and ameriprise and unum group. >> thawinnk you, meg. with more on what the tariffs could immediate for aerospace, defense, and also beer, james mcgreevey is president and ceo of the beer institute which represents more than 5,000 brewers including miller, coors, anheuser-bus anheuser-busch and also with us is former army secretary, currently ceo of aerospace industries association which represents more than 340 aerospace and defense companies like boeing, lockheed martin and

northrop grumman thank you for joining us today >> good to be here >> eric, i'll start with you probably just heard commerce secretary wilbur ross talking about the fact that this is not such a big deal. the market's been overreacting and that the increase in cost from these tariffs is not as large as what is being kicked around right now what is your response to that? >> we're always worried about pricing throughout our supply chain. this is going to impact companies big and small in aerospace and defense world. more importantly, we're concerned about retaliation. the aerospace and defense industry generates the largest net surplus in the manufacturing sector over $86 billion a year we've got 2.4 million people that work in the aerospace and defense industry and they're paid double the national average and they thrive on the exports of their products. >> do you see this as an issue of national security >> i don't see it as an issue of

national security. as secretary mattis said in the mom yo memo, it's 3% of steel and aluminum that goes into the defensive sector and defense part of this i'm more concerned about negative effects this might have on national security as he said and you talked about with secretary ross, economic security is an important part of national security. economic strength, stability and we can see how the markets are reacting we can see how our allies are reacting so i'm concerned about some negative impacts that this might have on national security. >> and, james, secretary ross also just a few moments ago held up a can of beer -- >> it was coke -- >> coke and beer, coke and beer. okay so when he earlier in the interview held up a can of coke, he said three cents of aluminum. somebody that covered alcoa for four years including before it broke up, i find it hard to believe that aluminum is a big input cost for the beer industry

is it? >> actually, aluminum is the biggest cost for beer importers. for us, this tariff which is really a tax is a $347 million impact to our beer brewers and beer importers tariffs are taxes. taxes are job killers and prosperity killers and the administration is fixing to put a $347 million tax on the production of beer and we're very concerned about that. >> what about switching over from aluminum? we saw it with water and soup where all of a sudden it's getting packaged in paper and other types of materials s that something that could happen if the tariffs take effect? >> it's hard to know what the product mix would be after this. the decision has not been made yet, obviously the formal decision, we really hope that the administration hears the financial markets, hears the points of view of people like us in the beer industry and the thousands of

other industries that are affected by this tax and takes a different course in the next week. >> gentlemen, we have to leave it there thank you so much for joining us, james and eric >> thank you >> thank you when we come back this morning, a lot more ahead on the tariffs. dow off the session lows, down 275. and the wolf huffed and puffed...

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good friday morning. it's 7:00 a.m. in canton, ohio it's 11:00 a.m. on wall street and "squawk alley" is alive. ♪ good friday morning. i'm carl quintanilla there is a lot to get to