. it's 5:00 a.m., here is your five at 5:00 president trump slapping china with a new round of tough tariffs. klein pr china promising to fight back. and the trade war taking center stage on wall street this tuesday. a full market rundown is coming your way. the death toll continuing to rise in the wake of hurricane florence we're live on the ground with the latest there amazon doubling down its

alexa bet. and a story out of this world. spacex plans to send a japanese billionaire to the moon. that's coming your way this tuesday, september 18, 2018. ♪ good morning i'm dominic chu. futures are pointing to a higher open despite a new round of tariffs on china starting monday the u.s. will slap a 10% tariff on 2$200 billion worth of goods coming in from china that number jumps to 25% starting next year several products were spared from that tariff list including the apple watch, child safety items and manufacturing chemicals. the white house also says it is ready to impose tariffs on an additional 2$267 billion worth o

goods if necessary we will get some fresh reaction from china to those new import taxes. let's get to eunice yoon live in beijing with the latest. >> thank you very much china says it has no choice but to retaliate the commerce ministry issued a statement moments ago and said the tariffs are creating new uncertainty for negotiating. expectations were rising that the trade talks between steven mnuchin and the vice premiere, which were set for next week in washington, are going to be called off earlier today another prominent official at the securities regulator said that the tariffs had poisoned t ee eed the atmos negotiations the chinese have signaled in the past that they plan to hit the u.s. back with tariffs on $60 billion worth of goods and u.s. businesses here have been saying they're expecting

now for the chinese to implement more as they called qualitative measures that's defined as tax audits, more customs problems. another possible counter measure talked about today is something that the former finance minister discussed over the weekend export restraints. so these are restrictions on chinese companies from selling certain products to u.s. manufacturers. so the one that has been talked about a lot today are rare earths china is the biggest producer of rare earths, and these metals are important for a lot of different products that are in u.s. companies and u.s. products such as consumer electronics >> the trade talks were supposed to be progressing, these come in the wake of those trade talks getting renegotiated is there a sense now from the chinese this is a game from the trump administration or is this

viewed as something as a negotiating tactic >> you know, the foreign ministry had said they believed the u.s. is not sincere. and speaking to one of my sources in the government they said that a lot of chinese officials and negotiators were surprised by this decision by president trump because they felt that the negotiations were actually going pretty well so it is being seen as a game. it's being described as a way to contain china, it's something that they don't feel that the u.s. actually wants a deal so it's going to be very difficult to get this discussion back on track. >> and just to be clear here, these lists are always long with products that are either on or off the list can you tell us what the notable exceptions are to this particular round of tariffs? >> yeah. i was just looking through -- it's like 200 pages of tariff

products but some of the notable ones off the list are the apple watch, airpods, fitness trackers, that would affect fitbit, boys cicyce helmets, baby car seats. the ones still on the list are routers, equipment to make servers and networking gear and semiconductors if you remember, companies like scisc cisco, juniper networks, they had all gone and argued why products needed to make the u.s. competitive in 5g should be taken off that list, but it looks like the argument didn't fly. >> some of those wearables makers are happy about being exempted from that particular round of tariffs eunice yoon, thank you let's get a check on how the markets are reacting stock futures are in the green so far the dow would open up by 62 points the s&p by 7

nasdaq up by 21 points some green on the board despite the fact this new round of 10% tariffs on these goods if you look at what happened overnight in the asian session, we did see a bit of strength there as well. a bit of a catch up trade from japan. they were closed on monday the nikkei up by 1.5%. the hang seng up by a half percent. the european trade, we are seeing a bit of green there on the screen not as much as we saw in the asian overnight session. the dax is up half a percent the cac up a half percent. the ftse 100 is up by a quarter of a percent joining me now is dan isades ca. and we will talk about trade not having quite an effect on the market as we thought it would. there's a question now what is priced in the market

so what is priced in the market. it seems like another round of tariffs, the market would go somewhat lower we saw the initial reaction, y now the markets are higher again. >> it's a 10% tariff and it's unclear when the tariffs would go into place as well. i think this is part of the gamesmanship this administration is playing with the chinese. i think the chinese view the trump administration as weakened now. you're close to midterm elections. i think this is a way for the administration to be in front of it the view that the chinese might have is that they're in a better position to deal with trump after the election because they think he will be, you know, hurt by midterm returns >> is your focus then as an investor on the trade talks directly, at face value? or is it more about the ripple

effects because of that? or what is beyond the midterm elections? i only bring it up because you brought up the elections is that the thing we should be focusing more on because it will have a clouding effect on whatever happens with those trade talks if the midterm elections fall a certain way >> it's part of that big puzzle that's out there that makes up how stocks are valued. what i posed it our investment committee yesterday is is this the bathtub about to shift again? are there different sectors that will lead post midterm election than where we are right now? and my thinking is that i think conventional wisdom is that the house will go to the democrats, the senate will stay with the republicans. but that's conventional wisdom i think everybody thinks that, including myself because intellectually you look at the map from the senate side. but that would actually be more

the exception than the rule. both chambers tend to flip in the first term of a president. but what if we're wrong? what if it goes all democrat or perhaps all republican could there be overreach on the part of democrats over kavanaugh's nomination midterm elections according to the real experts are all about turnout. that's really it so that's all part of it i'm sure that's the strategies that the chinese are thinking about in dealing with the trade issues >> we got a couple moments left. i talked earlier about what is priced in the market what is not priced in the market now >> what's not priced in is a democratic sweep or a republican sweep. i want to make one more comment on trade there's more progress being made we have gotten hafta, not nafta yet, because the mexican part is done i heard the canadian part is

more imminent, we might see that in the next couple weeks that puts more pressure on the europeans and chinese to come to terms with trade issues. >> dan veru, thank you very much for joining us >> thank you very much let's stick with that trade conversation macy's ceo sounding off on a trade war with china here's what he told courtney reagan last night. >> we do expect that there's going to be more tariffs, and it will start to effect a department store retailer more significantly because of the apparel pieces that will be part of it. what i can say is we've been working with our own supply chain. we've been looking at our own private brands and prepared for this >> he also added it's too early to tell how tariff also affect the average consumer as well we are continuing to follow the latest in the aftermath of hurricane florence the death toll now at 31 as

flooding becomes a major issue for parts of the coastal carolinas region contessa brewer is live in lumberton, north carolina with the latest are conditions somewhat improving now? >> they are improving. the power is on here in lumberton. the good news is the lumber river is receding. yesterday the river had crested over these bridges, and the town was flooding, immobilizing cars in the middle of the roadways. today the roads are passable and the river is going down. let's look at some other rivers of concern here. by the way, it did crest at a record it broke a record yesterday. the record had been 21.8 for the lumber river, now it's 22.07 so we're still above that record flood stage. the cape fear river, the flood stage is 10 feet it's expected to crest tonight at 24 1/2 feet

the waccamaw river won't crest until saturday these are the rivers of concern in north and south carolina. depending on where you live the threat is not over and the problems are persisting now because the flooding has undermined the roadways and the rail lines there's a csx line that run just along the river here it's immobilized you cannot run trains through it because of the flooding here here's pictures of a derailment that happened about 70 miles from here. a csx train carrying chemicals, some of the engineers went to the hospital with minor injuries because amtrak uses these rail lines, the disruptions to service are major everywhere south of the north carolina border with virginia >> contessa, was watching some of that video you brought to us. you were talking about the

roads. i saw a truck driving across a bridge like it was fine, but also the reporting yesterday about parts of i-95, a huge artery of a roadway, a highway system, what is going on now with people navigating through some of these roads? the closures, i have to imagine, are still in place in many places how are people getting around? what is it like to go and navigate through those causeways? >> you pointed out the problem i-95, major stretches of it in north carolina are closed. a stretch of it about ten miles or so is closed in south carolina you don't see anything so disheartening as watching rigs coming from with telephone poles, generators, essential supplies to restock walmarts and getting to what they think will be the detour, and then being forced to turn around and find a different way around that's the bad news. the good news is yesterday they

told us in the morning that there would be no way to get into lumberton it took us some backtracking and weaving around, finally we got here in large part because the localized flood hag beging has o dry out. but waze and google maps is not always keeping up with the most accurate information, but seems to be doing a good job with 95 >> all right thank you, contessa. we're just getting started on "worldwide exchange." up next, back to the markets with two drops and a pop the stock movers that need to be on your radar. and to the moon. spacex sending one ambitious billionaire on an out tofhis world trip full details after this break. let's begin.

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welcome back to "worldwide exchange." amazon is making a big bet on alexa. kate rogers joins us with more >> good morning. cnbc has learned amazon plans to launch as many as eight new smart home devices powered by alexa by the end of the year these include a microwave oven, in-car gadget, an amplifier and receiver some will have alexa built in while others will connect to alexa-enabled devices. amazon is expected to unveil some of these devices at an event later this month the new products reflect the company's ambition to make the

technology for its digital assistant available everywhere by focusing on areas where people spend most of their time like their home and car. it would mark amazon's first push into home appliances putting it in competition with sonos, ge and samsung. in the moths havenst recent ears report, jeff bezos talked about making alexa more worldwide. shares of oracle are down. first quarter revenues narrowly missed estimates the co-ceo contributing the move to a stronger dollar. fedex's first quarter earnings missing forecasts employee compensation and other costs weighed on profits fedex also addressing the trade war with china. on the conference call, the ceo, fred smith said history is

very, very clear that countries that pursue the most open markets are the ones that prosper the most adding that mercantilism does not work shares of fedex down by 3% again in the extended trade. brazil's nutura cosmetics says it is not in talks with avon about a possible deal avon shares rose 21% on the heels of that report avon products up 11% in extended trade. it is a big week for housing. today we get a pulse check on the home builders with the nahb survey followed by housing starts tomorrow and existing home sales on thursday joining me now to discuss this is mark fleming, chief economist from first american. is the housing market in the u.s. under stress? >> i don't think it's under

stress i think we're seeing transition away from a historical seller's market to something that is more equal or moving towards a buyer's market a bit >> mark, are there places that are perhaps tilted a bit more one way or the other regions that are showing some signs of at least being more of a buyer's or seller's market >> the poster child at the moment is a market like the san francisco bay area it's got high house prices lack of affordability, lack of inventory, it's difficult to build there. if there was a challenge or stress in the housing market it's our inability to build more housing units to she s ts to shr everybody in the united states. >> another stress is that interest rates are on the rise i remember refinancing my house a couple years ago how much is interest rate fluctuation going to affect the housing market

>> it has two effects. you like many other homeowners have historically low mortgage rates, and you are not encouraged to sell or move because of that low rate but for the first-time home buyer, whether it's 4%, 4.5%, or the expected 5% mortgage rates we might see, that's still very, very low there's no indication that rate changes of these low levels are going to impact home buyer demand >> mark, there's a lot of data coming out this week we'll see if it tells us anything about the overall health ofhousing market. coming up, audi versus tesla. the carmaker is looking to take on elon musk's car. and if you missed the monday night football game, you're in luck all the highlights when "worldwide exchange" returns of good start packaging. n jr we distribute environmentally-friendly

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5:24 a.m. eastern time that's times square in new york city it's darker a lot earlier and a lot later these days audi is taking on tesla. the carmaker unveiling an suv called the e-tron. it will hit the market next spring and have a base price of $75,000. the highest trim levels start at around $87,000

don't miss the president of audi north america on "squawk box" later this morning at 8:30 a.m. eastern time. let's check the other top headlines. frances rivera is live in new york with the latest good morning the raging remnants of florence continue to wreak havoc along the east coast now triggering a deadly tornado outbreak several twisters have been reported throughout central and southern virginia. at least one person is dead after building collapsed the storm is expected to dump more rain today as it spins north. a dramatic showdown has been set between supreme court nominee brett kavanaugh and the woman accusing him of sexual assault. chuck grassley said in a statement to provide ample transparency we will hold a public hearing on monday to give these allegations a full airing. this week christine blasey ford

said kavanaugh groped her at a high school party three decades ago. a twist in the russia probe. president trump ordered his intelligence agencies to declassify a cache of secret documents without redactions t he also ordered the release of the secret application to the foreign intelligence surveillance court to investigate carter page. house republicans claim it will show the probe was flawed from the start. those are your headlines >> thank you very much for those news updates still to come on this show, upping the ante. president trump turning up the heat on a trade war with china we're live in washington, d.c. with those details. and the big winners, losers and a major surprise during tv's biggest night. a recap of the emmys when

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the trade war heats up president trump hitting china with a new round of fresh tariffs. shrugging it off wall street pointing to another higher open despite major trade tensions a round up of the global reaction. and a must-see moment from tv's biggest night a full recap of the emmy awards.

it's tuesday, september 18th, you're watching "worldwide exchange" on cnbc. ♪ good morning welcome to "worldwide exchange." i'm dominic chu. brin brian brian sullivan is on assignment. futures are holding strong despite new tariffs on china ylan mui has more details. >> this is the second time the trump administration is slapping tariffs on chinese goods that 10% rate will take effect on september 24th. on january 1st the rate will jump to 25%. in a statement president trump said we have given china every opportunity to treat us more fairly so far china has been unwilling to change its practices. as our colleague, eunice yoon

reported earlier, trade talks with china appear to be off. yesterday white house economic adviser larry kudlow said the administration is willing to meet with beijing but so far the president has not been satisfied with the results >> we are ready to negotiate and talk with china any time they are ready for serious and substantive negotiations towards free trade >> the business community h has immediately begun criticizing these tariffs. the u.s. chamber of commerce said today's decision makes clear that the administration did not heed the numerous warnings from american consumers and businesses about rising costs and lost jobs on main street mean while the consumer technology association said this will stifle global leadership

and also create an internet tax on businesses and cause uncertainty for companies. president trump has said that he will retaliate if china continues to move forward with its own tariffs. we will see if the president makes good on that threat. dom, back over to you. >> larry kudlow also made some comments during his chat with becky yesterday. he said there's no real reason the tariff also have an impact or hurt the u.s. economy and also saying china just needs to say yes to some major trade development. any sense there could be headway being made behind closed doors or in back channels? >> it doesn't seem like it it seems like we're stuck with the war of words and the actual tariffs that will be hitting businesses larry kudlow made the argument that moving towards freer trade

would be pro growth, but many economists disagree with him you see the imf marking down growth estimates because of the trade tensions that are roiling businesses and businesses are saying eventually we will have to pass on these price increases to our customers. >> what's the next step here what happens next? where do we see -- is it a formal negotiation is it kind of like going through the back channels to chat a bit? what do you expect to see? >> initially there had been some discussion that treasury secretary steven mnuchin might lead a new round of talks with the chinese. that seems to be on hold for now. we will try to find out if there's any possibility of it getting restarted. that's a question, will the two sides come to the table and be able to reach some type of agreement before these tariffs really start to hit hard on

january 1st. >> ylan mui, thank you very much for that update. >> futures are pointing to a higher open. the dow would be open by 6poi8 points, the nasdaq up by 23, and the s&p up by 7. japan was closed yesterday, back with a roar today. the positivity is carrying over into europe now. we are seeing the dax in germany, it was up by a half percent earlier this hour, up by that same amount now the cac in france also up a half percent. the ftse 100 up by 0.2%. joining me now is chad morganlander from washington crossing advisers. chad, as we talk about trade, we asked dan veru in the last half hour what is priced into the market what is not priced into

the market it seems as though this solidifies the fact that the path of least resistance for the markets is higher. is that, in fact, the case the markets still want to go higher can we say this market is doomed to put all this stuff away and that we're always going to go higher >> i wouldn't say that in fact, we would be more balanced and cautious at this point. we think we're in a lower return environment going forward at a 4% to 6% total return for the s&p 500. couple of reasons for that one, the federal reserve is raying raray i raising rates. the trade related issues of 2$20 billion on a $20 trillion u.s. economy really is not a whole significant amount larry kudlow is correct in the previous segment that this won't

effect the u.s. economy nor earnings right now be careful because this can. >> why are all these ceos on the retail side of things saying this will hit the consumer cone tsuna consumers will feel higher prices if i'm playing along with the president's plan, maybe i take a higher cost item, i pay more and it's better for the u.s. in the long run from a trade standpoint are these ceos correct in talking about passing on costs to consumers >> they are. we're in the early innings of this but the ceos are correct a walmart is a low margin business model their operating margins are 4%, 5% if they get an increase in their goods, they have to pass that along to customers

that also goes for industrial. >> you brought up the sectors. you're a portfolio manager as you talk about the way the cost structures are evolving, given what we know about tariffs right now, does that mean you have to change the way that you look at investing? are you looking at certain parts of the market that are more attractive than others because of that particular cost pressure that's building for certain industries >> we have not been that terribly concerned as of yet, but we are concerned that this overall the u.s. economy and the global economy will start to slow down if this gets to be more of -- or accelerates. we would stay with more rising dividend companies, consumer staple companies we would go with the walmarts of the world. you want to be with the steady eddies at this point you have had growth stocks on a

tear you want to move towards low volatility value companies >> what's the most important market catalyst? is it trade? is it the fed? >> the federal reserve and it's global growth. so look at not only what the fed does next week but also what happens within the global economic trends. that will dictate earnings growth, which will dictate what happens with the overall markets. >> chad morganlander, thank you very much. >> we will continue to follow up on the aftermath of hurricane florence cleanup efforts are under way, and now small business owners are taking stock of the damage kate rogers has more >> after severe weather events like hurricane florence, some 40% of small business never reopen their doors, that's according to the insurance institute for business and home safety when small businesses close down in these cases it can be costly. the median for businesses impacted by extreme weather

events is around $3,000, but when impacted by flooding the price tag could be higher. from 2007 to 2011 the average commercial flood claim was $75,000. not all small businesses have flood insurance which is sold through the nfip to cover damages related to flooding. this is typically a separate insurance policy a total of 5.1 million active flood insurance policies nationwide, that's up from under 5 million last year. now that a disaster declaration is under way for hurricane florence, the sba has opened a business recovery center up in greenville, north carolina to help answer questions regarding loans. they offer long-term disaster loans for physical damage as well as working capital. businesses and non-profits as well can borrow up to $2 million to repair or replace damaged and destroyed real estate, machinery, equipment and to help business assets. it's also not clear how many businesses have been impacted by

florence and the damage done yet. one other important thing, less than half small businesses have excess business interruption insurance. so that helps to recover expenses once you close down >> just to have cash on hand >> dealing with the property lost inside, but oftentimes that does not take into consideration people not coming to your store because it's not opened. >> what can others learn from what happened? >> plan, plan, plan. you need to plan for something like this. think about what your insurance covers and doesn't cover flooding, the damage inside and outside the business there's all these different policies you need to think about. oftentimes many small business don't realize what they don't have until something happens >> kate rogers, thank you very much. let's talk more about the big money impact from hurricane florence joining me is randy biner senior

analyst of insurance research at fbr capital markets. we got that report about the impacts and the types of insurance people need to have. what does this mean for the insurers out there does this change the overall landscape of your coverage universe >> good morning. thanks for having me it was interesting listening to your segment there to your question of what kind of insurance businesses need, you usually have coverage for liability and property, but if they are in a flood area, they need to buy flood insurance. on this event, for the private insurance industry, which i cover, these are stocks like all state, travelers and progressive, the losses will be small because the wind speeds with this event were lower the flood loss mostly will be borne by the national flood program. at this point we think that the flood program will pay more out probably than the private insurance industry we're pegging the loss for

private ensurers around -- insurers around 5 billion. and flooding will go over that >> are you saying insurers have dodged a bullet on this hurricane? >> effectively, yes. insurance policies sold by the private property casualty insurers cover mostly wind there will be some flood coverage personal auto is covered for flood, too that's driving a lot of losses but the wind speeds from this event were low, so much of the damage is qucovered by flood, a that is in the national flood program, most of that will be paid by the taxpayers in the issuance of treasury debt. >> we have been noticing over the course of the last week insurance stocks in general, not just the private insurers like you said, but the industry group has been outperforming the broader financial sector within that coverage universe do you think there's one that

stands out as better positioned coming out of this event >> it is pretty neutral. if you look at the way the stocks have traded since the event started, that would be two fridays ago, they're effectively flat especially for all state, progressive and travelers. they will see marginal impacts to earnings. there's a smaller cap company called national general, which writes a lot of business in north carolina and they will take some losses here, but they may benefit from price increases. for the other names it's going to be hard to earn back losses and in general property cash tall insurance has a lot of capital available for the risk and pricing remains under pressure it was a bit of a nonevent, but the industry is still facing margin compression >> all right thank you very much for that update we'll keep a close eye on those insurers out there >> thank you. still ahead, heading to the

moon spacex revealing its first ever private space traveler we'll tell y wouho it is when "worldwide exchange" returns (danny dichter) in 1989, a new wireless technology was being tested for the first time ever. it allowed more users to connect at the same time while on the move. other wireless carriers considered the tech too expensive, but we saw it as the birth of reliability and the backbone of a company we all know as verizon. so we were the first to commit to the cdma system and the first to build our entire network around it. today, once again, we're transforming reliability as we know it, building america's first and only 5g ultra wideband network-- with unprecedented capacity, enabling faster speeds and the lowest latency anyone has ever experienced on a wireless network. which is crucial, because we'll be relying on it more than ever. (man) it's really quite impressive, uh, what y'all have put together here to, uh, to show the quality of the system.

a live shot of washington, d.c. time for the top trending stories. kate is back with those. >> hi again. i moved sides. >> you shifted on me. the emmys taking place last

night. netflix and hbo were the winners were 23 wins each. "game of thrones" was the most awarded show with 9 wins perhaps the biggest moment of the night came during the acceptance speech from the best director winner. you wonder why i don't like to call you my girlfriend, because i want to call you my wife >> you have to be confident that she'll say yes, right? >> she better say yes. she -- look at that reaction she said yes, right? >> very sweet. very, very sweet >> talk about -- jumbotron is one thing. >> these are higher stakes than jumbotron. >> everybody is dressed up >> he knows how to direct and produce events >> he has a flair for the dramatic spacex is officially taking shoot to the moon a new level.

a lucky passenger is japanese billionaire entrepreneur and art collector, yusaku maezawa. he plans to bring six to aieigh artists along with him on the trip >> this is one of those things where being first is an awesome thing to claim, i don't know if i want to be in the first rocket >> i would think i want them to get this down. >> i'm okay being a second or third mover. >> great way to go out if it doesn't work out you were on the first trip around the moon. fingers crossed. spacex wasn't the only musk venture in the news yesterday. kimbal joined closing bell to talk about his own company but had some things to say about elan and tesla >> my brother is doing great he is doing a great job structuring the company. mostly right now the focus is deliveries we are trying to get great --

happy customers with model 3s in their hands. that's the total focus >> if addition to having a great has the, he's also a board member at tesla. >> that's right. >> the idea that tesla and its ceo and founder elon musk have come under so much fire that joe roggin podcast, he was smoking marijuana, is he fit to be a ceo, kimbal, his brother, maybe biased >> he's out there defending him, also on the board of chipotle and an adviser in their new accelerator program. busy man >> kate rogers, thank you very much. in the sports world the bears defeated the seattle seahawks last night on monday night football the final score, 24-17 the bears took a 24-10 lead after returning an interception for a touchdown, a pick six in the fourth quarter, they held on to make that win a lot of folks in click go

rejoicing for a big, big win khalil mack one of the big factors in that defensive stand. tariffs taking center stage this morning but how will washington's latest plan impact u.s. manufacturing brian sullivan is live on the front lines of the trade war with more from where, brian? >> huntsville, alabama technically madison, alabama at the polaris factory where all the rangers and slingshots are made we will dispel some myths out there. why an american vehicle made by americans in america sold to americans with 80% to 90% american parts can still be impact by edtariffs. that's coming up next on "worldwide exchange. at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand.

the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence.

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the trade war with china to go away any time soon here's what he said at the investor conference. >> this thing will last long if you want to have a slot at solution, there's no shot at solution china and u.s. trade lasts for 40, 30 years, becomes such a big size if there's no problem, it's impossible there are big problems, it is substantial. ma said new trade rules are needed around the world including an upgrade to the world trade organization. escalating trade tensions with china could have a major impact on u.s. jobs, especially in manufacturing brian sullivan is live on the front lines of the trade war he joins us from a polaris assembly plant those atvs, i guess they're

cinnamsi synonymous to u.s. manufacturing, because i see them all over the farm country >> that's why we're here that's why we came here. we thought what is an american industry that's highly discretionary, a consumer product. you don't necessarily need one of these but you might want one of these the president wants these to be made in america, as they are, using u.s. parts, by americans, sold to americans. we thought where would be the best place to spend the day at cnbc and get to the heart of the trade and manufacturing story. and in a state which went for president trump the third most of any state, only behind north dakota and oklahoma. about 63% of alabamians voted for the president. so here's the interesting story. this ranger, you know it, it's a workhorse product. made here in america, with the majority of american parts i had a chance to talk to the ceo last night off camera.

he'll join us on "squawk box." he said here's the thing, even though i'm making stuff here with american parts like the president wants us to, i'm still impacted by tariffs because my competition is either sourcing from china and making it, say, in mexico, where they're not getting hit, or they're making part of it in canada like can am or getting parts from mexico because they're getting around the tariffs, steel and aluminum tariffs are in effect. there's still a lot more that may come down the pike they're getting hit, so they have a pricing disadvantage because these are made here. we want to make sure we're able to sell them at a price people buy them if you don't have a customer, you don't have a product, you don't have a company even though they're made in america the tariffs on steel and aluminum which are in effect, the 323s, not the 301s, those are still relevant and they need to remain pricing competitive so

these can be made right here in madison/huntsville, alabama. >> the bottom line is it's always about jobs. that's the real factor you talk about costs, but how will this -- we know jobs are at risk here. tell us how the jobs conversation plays out with the ceo of an american company like at polaris >> here you go about 1300 people work at this plant, it's been open for two years. the economic impact is about 8 $1.8 billion of direct salary impact 150 million in other indirect impacts, let's call that a $2 billion idea that's a big deal in alabama average wage of more than $82,000 in this county if they want to expand production and if it is non-competitive from a price perspective what do you do you make your product somewhere else maybe mexico, poland, coming up on "squawk box," the ceo, scott

wine, will join us and talk more about all those things we hit on and trump and tariffs and trade. hope you join us >> always great. thank you very much. that does it for "worldwide exchange."

good morning another salvo in the trade war president trump ordering a 10% tariff on 2$200 billion worth o chinese goods. that could go to 25% by the end of the year. we'll talk to wilbur ross live this hour. are you ready to upgrade your iphone? we will take apple's new devices for a test drive and tell you about the new alexa powered device that amazon is planning to roll out this month. and spacex announcing its first paying space tourist we'll tell who the company is planning to fly around the moon

as we cue the frank. it's tuesday, september 18, 2018 "squawk box" begins right 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. let's look at u.s. equity futures. you will see there are green arrows across the board, despite the ratcheting up of the trade war with china you can see the dow futures are indicated up by 63 points. s&p futures up by 7. the nasdaq up by 22. yesterday stocks were down nasdaq was the loser, down by 1.4% even the dow suffered its biggest loss since augus