>> and squawk. >> box begins. >> right now. >> good morning, everybody, and welcome. >> to squawk box right here. >> on cnbc. >> we're live from the nasdaq market site in times square. >> i'm becky quick. along with andrew. >> ross sorkin joe is out today. but let's take a look at the market's reaction to those tariffs that the united states is putting. >> on its. >> partners to both. >> on. >> its borders, to both the north and the south. you can see right now in the us equity futures. >> there is some pressure. >> that's being added to this. dow futures off by about 560 points. >> right now the s&p. >> futures are down. >> by 85. the nasdaq. >> down by about. >> 344 points at the moment. treasury yields have not seen. a huge reaction.

>> at this point. the ten year. >> is sitting right at about 454. the two year is at 428. but currencies are sitting. up and. >> paying attention. the dollar is at its highest level in about. two years. with what we're seeing. >> here, you can see percentage. >> change the dollar. >> against the canadian loonie up by about 1%. >> the dollar is up by about 2% against the mexican pesos. and up just fractionally against the chinese yuan. again, those those tariffs of 25% on both. canada and mexican imports, 10% on chinese imports. >> crude oil. >> prices have been higher across the board. this is, of course, because we here in the united. >> states import about 60%. >> of our oil and. petroleum imports. the parts that we do import from come from canada. >> you can see year to date. >> wti is up by about. >> 3.5%. >> but it's sitting just below $75 a barrel, $74.22. and then bitcoin has been under. >> some pressure too.

>> you can see right now it's down by about 2.3% back at $95,685. >> president trump spoke to. >> reporters last night at joint base andrews after returning from a weekend in florida. here's what he said when. >> asked if he. >> was concerned about tariffs impacting prices for americans. >> no, no, i'm not going to say we may have short term some little pain and people understand that. but long term, the united states has been ripped off by virtually every country in the world. we have deficits with almost every country. not every country, but almost. and we're going to change it. it's been unfair to megan. >> cassella joins. >> us right now with more. >> megan, good morning becky. >> good morning. president trump acknowledging there are some pain from these tariffs. not something we often see. and now he's carrying out these threats that he's made for years. and his actions i will say go further than initially expected. there are of course, the tariffs we knew were coming. you just mentioned 25% on canada and

mexico, 10% on china and on canadian energy. but there were two surprises. the first was no exemptions. no company now can apply for a carve out. and the second was that the white house took away a rule that allows small packages worth less than $800 to come in duty free. that's a hit to small businesses and to fast fashion retailers like sheehan. so the value of goods impacted here is around $1.3 trillion or so, more than triple the value of goods that trump hit with tariffs in his first term. and that's before you count in the retaliation that's likely to target sectors like agriculture, alcohol, clothing and cars. so the question from here is what, if anything, will satisfy trump's concerns and get him to remove these tariffs? and the white house was really quite vague on this point. they told reporters that there would be a wide range of metrics, including only legal immigration into the u.s. and zero american deaths from fentanyl. and trump also told reporters last night that he will be talking this morning with leaders of both canada and

mexico. so some window for negotiation. but unless something changes, everything takes effect. guys, just after midnight tonight. >> i mean, megan, there's. >> still so many questions about what metrics. >> we're using to measure any of these things. lindsey graham. >> the senator, was. speaking yesterday. >> and he said that border. >> crossings are down. >> 60%. >> illegal border crossings. >> down 60% just in the last ten days. >> i guess. do we have any idea. >> how we'd be. deciding how we'd be. determining any of these things? >> it's really, really difficult to know. i mean, for example, they're always talking about fentanyl. and with respect to canada, peter navarro said something over the weekend about seizing enough fentanyl from canada from the northern border last year to kill thousands of people. the latest customs and border patrol data that i saw was that in the first nine months of last year, we had seized just 40 pounds of fentanyl from the northern border, compared to some 16,000 from the southern border. so it's hard to sort of put all of these on equal playing fields. it's why it's so interesting to

talk to the white house about what they need to see. you know, they've said there's this council, it's going to involve the homeland security secretary, kristi noem, secretary of state marco rubio, stephen miller, the domestic policy adviser inside the white house, a whole host of people who will decide whether some metrics are being met. they'll bring it to the president and then he'll decide whether to lift the tariffs. but it's hard not to think it's somewhat arbitrary at this point, because we haven't exactly seen a scorecard that they're looking at. >> president trump could be watching reaction from the markets, along with reaction from our allies and trade partners on this issue, too. so we will continue to watch and see how the market reacts. megan. thank you. >> now let's get to the. >> other story of. >> the weekend. >> they're all interrelated though. >> we're talking elon musk. >> this time going after multiple parts of. the government over. >> the weekend, then holding a. spaces discussion. >> happening on x, his own site. >> at midnight last evening. >> and steve kovach stayed up. late and is up early to tell us exactly what took place. yeah. >> a. lot took place here. i

mean, i think the big headline guys out of this. twitter spaces. it was supposed to be a status update on doge, but really went after what elon musk called the fourth estate of the government and blaming them for a lot of stuff and calling us aid, in particular, a criminal or organization. and the big headline out of here is that elon musk said that trump, president trump, gave him the permission to end u.s. aid. now, this is an organization that distributes $40 billion a year in aid across across the world for various charities and things like that. and he said he spoke with trump, and trump basically said, go ahead and gut it. we had all these reports over the weekend with musk talking about sending his deputies into u.s. aid, forcing people out, getting security clearances that maybe they shouldn't have. i have a letter from senate democrats to marco rubio who are very concerned about this, asking for explanation. but that was the big thing. and then there was

just a whole bunch of allegations without evidence kind of lobbed at u.s. aid, calling it a criminal organization. even at one point, musk was saying that it provided funding to the chinese lab in china, in wuhan, where they think covid came from, and therefore the u.s. indirectly funded the creation of covid. just a lot of wild stuff and a lot of wild accusations, which i will say, no evidence or real backing of what's going on here. but i think the main lesson here, guys, is a lot of interesting stuff said on this call, but we're really watching the twitter playbook play out here. when elon musk took over twitter two and a half years ago, this fork in the road email, this idea of going into agencies claiming fraud even though there wasn't not paying bills and things like that. we're seeing this play out now in the federal government from elon musk. and yesterday or last night, rather, this conversation around doge and what's going on. it's the first of many, by the way. they're going to do this every week now talking about it. >> in any detail, what. >> it means.

>> for him to have access to the treasury's. >> payment systems. >> they didn't get into that. that was another interesting. >> the other, the other, it might even be the. main story that took place over the weekend beyond obviously the tariff story, which is to say that. >> his team. >> is inside the treasury payment system. there's been now a treasury official who's departed as a result of. >> but the treasury secretary, scott bessent, apparently gave him the keys to the car here. >> but what that means meaning to. >> me, there's one. view which is, you know, are you in there to examine and understand how the system works? you know what? who gets paid when they get paid so that you can start to try to look at things? or is it that they're actually looking and specifically, you know, pressing the toggle saying right off, we're not that payment off this payment on that payment off this. >> there was some. >> allusion to that authority. he has to do that. you know, there was talk over the weekend.

there's this lutheran social services who saw that mike flynn making note of that. it's a service. the government, it's not for profit. the government gives them money. they give money for refugees, for folks who have autism, they do. you know, the united states has outsourced to not for profits in the country all sorts of work. right. and so the question is whether this group sort of on an ad hoc basis, has unilateral control to say, you know what, we're going to pay that we're not going to pay that like that. >> it wasn't he didn't he he. yeah, it is. and he didn't directly address that yesterday. but what he did say was we're saving something like billions a day. and with the. >> record how he was saving. >> with but with the recognition with the recognition, though, that, you know, there's a $7 trillion in spending and we're only cutting a couple billion a day. that was the only thing i saw that that could be it. again, he gave no details on that, but that was the only thing i saw that they're going

through these outflows of payments from the treasury. right. and saying, okay, let's kill this one, let's kill this one, let's kill this one. >> it's just. >> i mean, there are so many questions about how this was appropriated when it went through congress. if you can do that, if the executive branch has the authority to do some of these things. and, look, elon musk has made the point live by the executive order, die by the executive order. so if you are something that was put in place by a previous executive order, the white house absolutely can strip that out. but if it was put in place by law and you know. >> which it was. >> was put, was signed into law and executive order. so, you know, there were two things. it was signed into law by congress. there was also an executive order. >> that went along. >> with it. so that's where some of the confusion comes in. >> but there are. >> senators who are raising questions. >> about this. >> yeah. and i have a letter from the senate foreign relations, the democrat leaders on the senate foreign relations committee writing to marco rubio, saying, why is this happening? how is this able to happen? we're not seeing much pushback on the republican side, of course, and kind of allowing this to happen. in fact, yesterday, musk was joined by

joni ernst and senator mike lee. so two republican senators who were full throatedly endorsing this. and again, there are some really wild accusations made. i mean, the covid one i just mentioned about us sending money to china to create covid. i mean, that is just one of the more ludicrous ones. >> he's more concerned about the payment system. yeah, in a way, because ultimately, look, the agency, all of these different agencies authorize payments, right. and historically, the payment system, meaning the treasury's payment group just made the payments, it was their responsibility was not to ascertain whether it was a good payment or a bad payment, whether the money was being used effectively or not effectively. >> congress said to spend it. >> we're spending like the agencies or didn't like the agencies. i understand why using that prism, meaning yes, if you have access to that, that area, you should be able to study in a very that's that is the place you would go to study what's going on and to be able to identify potential places. but then the question.

>> sounds like they're going a step further. >> right? i guess where i'm going is you should be able. the good news is you can identify stuff that you may think is suspect or shouldn't be paid or whatnot. right. and then the question is, are you supposed to i think from a protocol perspective, go back to the agency that authorized said payment for whatever reason and say you shouldn't be making said payment, and then obviously there'll be a fight and debate, and that's bureaucratic. i get that, but but that doesn't. >> sound like what's happening. >> can i say. >> that because he's coming out here saying, i'm going to kill usaid? the president told me to kill this organization, and we're going to cut all the funding. >> and this. >> is very different than what we thought originally, which was this was going to be simpson-bowles 2.0. >> exactly. >> which was ineffective. >> by. >> the way. >> and by the. >> way, it was completely ineffective. and president obama chose not to follow the recommendations of that panel. they did not make this. if the vote stands, you have to do an up or down vote that goes through congress. that's what i thought we were going to be dealing with. but then there were questions, because at the same time, can you be in a position of making these and

still own all the other products, be involved in all the other organizations that he runs at the same time? >> that's that's another thing too. but right now, i didn't hear anything last night that said, that appeared to be in conflict with him running his other companies. there was the issue with the faa and the director of the faa kind of getting pushed out. i understand that, but last night, on the spending. >> side, it's like this is just going to be a committee. >> that makes. >> recommendations, that does nothing. and that's that is how it was in theory, set up. right. >> and that's. >> how we understood it. >> and that was the immediate thing. >> very obviously we very we did not get. >> and we thought congress would have an appetite to protect its spending power. and it's not doing that. it is kind of taking a back seat and letting this happen. and musk is apparently been given the authority to look at these treasury payments, to stop payments where he thinks they should be calling us aid. to your point, that lutheran organization calling that a criminal organization. yeah. i mean, these are just again, this is right out of the twitter playbook when you just went through blasted spending, threatened employees, told them they have to get out. that's

great for twitter. a lot of people probably think x is a better product today than it was before. the whole thing when this started, guys, was he did this amazing thing at twitter. he came in and cut all the fat out. and twitter is like a better product than it ever was. you can argue that, of course, it is a much worse business than it ever was. we know that because fidelity is marking it down, we know that its revenue is just a fraction of what it used to be. there's some talk of advertisers returning. how do you apply that to the government, though? and when people's lives are at stake, this is not about the ability to tweet. this is about, you know, providing 40 billion in aid that might be needed around the world. >> i'm still, by the way, i just want to be clear, i'm still long x even on a valuation perspective. yeah, because of x i. >> mean we'll. >> see i think. you don't think they got deep sea last week. >> no steve. thanks guys. thank you for staying up late and waking up early. and i'm sure we're going to be talking a lot more. oh, yeah. very, very soon. thanks. >> all right. >> when we come back, markets

reacting to president trump's first. salvo in a. >> trade war. is the sell off warranted? should you buy the dip? we're not talking about major declines. you are talking about some pretty big point. >> declines for the dow. >> though, it's a decline of 1.1% for. >> the. >> s&p, down 1.3% for the nasdaq, down by close to 1.5%. tom lee will join us to talk strategy next. >> and later we will. >> talk about the tariff strategy with. >> with one of president trump's top economic economists. >> kevin hassett, a name. >> we know. >> well, somebody we talked to all the time. he is the nec director. squawk box will be right back. >> in a world of uncertainty and. >> disruption. >> how will your. >> investments stay resilient? we've been navigating. >> change for 125 years, always looking forward, anticipating

risks and. trusted to manage over. >> $1 trillion. >> in assets worldwide. solving for the needs of investors today. >> and tomorrow. that's the >> and tomorrow. that's the power of -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald. fine, but i'm bringing this. [ whirring ] alright. or...you could try one of these savings options. the right money moves aren't as far-fetched as you think. there it is. see? told you it was going to all work out. thanks, future me. (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course!

you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah. for all those making it big out there... ...shouldn't your mobile service be able to keep up with you? get wifi speeds up to a gig at home and on the go. introducing powerboost, only from xfinity mobile. now that's big.

xfinity internet customers, cut your mobile bill in half vs. t-mobile, verizon, and at&t for your first year. plus, ask how to get the new samsung galaxy s25+ on us. us feel amazing and is something that. >> we get to use every day. >> all right. welcome back everybody. if you're just waking up, take a look at the futures. we do see some pressure on stocks because of the tariffs. and what is going to happen in reaction to that. dow futures

off by about 535 points. nasdaq down by 335. the s&p futures are off by 83. our next guest says that he is bracing for the markets to overreact to president trump's tariffs on canada, mexico and china and would advise investors to buy the dip. tom lee is head of research at fundstrat. he's also chief investment officer at fundstrat capital, as well as a cnbc contributor. and tom, there's not a huge dip here. we're talking about declines of 1.5% or less for the major averages at this point. is that the dip you're talking about, or do you think there's more overreaction potentially to come? overnight it was actually. >> i think when futures. >> opened it was. almost twice the decline. so the. >> small caps were down four. >> nasdaq down over three. >> it's good to see sort of markets. >> are catching their breath. >> it's the second. >> monday shock right. last week. >> was. >> deep sea. >> right. >> but i'd. >> say actually it's almost a victory that. >> if we open only down 1.5%. because i. >> think there. >> was quite a lot. >> of panic.

>> over the weekend. >> yeah. >> look, the market to this point has kind of operated on the idea that this is a negotiation that's taking place, that these tariffs, if they are implemented, won't last for long. is that your thought process as well still? >> yes. >> i'd say. >> there's decent. >> odds that. >> let's say we go three months out. >> that the tariffs. >> will be. >> rolled back because concessions were. >> received. >> and there are there are also other mechanisms. >> in place. >> to sort of protect markets. >> from the downside. >> i know people think this is an. >> unlimited risk. >> scenario for stocks. >> but if the. >> tariffs come into play. >> and other. >> countries go. into recession, those. >> central banks will be easing. >> which will. >> actually improve liquidity. >> so i'd say that. >> as bad as things. >> look, i do. >> think there's downside protection. >> what do you think our central bank will do in reaction to this? because president trump a week and a half ago or a week ago, weeks go by so quickly. maybe it was two weeks ago, said that he would like to see our central bank, along with other central banks ease rates. our

central bank did not really seem to go along with that. based on the numbers and the inflation data that they've seen. >> well, for the fed, they'll have to tread carefully. because in the short term there would. >> be an. inflationary impact. it may not change. inflation expectations. >> but it's going to. >> be. >> realized inflation. so i do think it makes sense. >> for. >> the for the. >> fed to actually tread carefully. >> but if. >> i was. >> a central banker in a country. >> that got. >> hit with tariffs. and they're getting pushed into recession, of. course they'd. >> be easing. >> you know, i think the market looks at this and thinks, well, president trump likes a strong stock market. he likes to see those numbers on a daily basis. and maybe there's the sense that he will not get too stringent with things if he thinks that there's a big impact in the market. do you think that too? >> yes. i mean. >> i think ultimately. >> the goal. >> of the. the president trump is to. >> make the. >> us stronger, both. >> companies and. >> the economy. there may be

some short term. >> pain, and it's hard to tell how much of this is an investment in improving us. >> competitive positioning. >> i think. >> it. is kind. >> of. >> a test of resilience. >> right now, and the fact. >> that we're only down one and a half points, one and a half percentage. points on pretty major universal tariffs is actually. >> a sign of. >> resilience. >> a sign of resilience or a sign that we don't think it's going to continue. i guess that's my question. >> it's. >> hard to. >> tell at the moment. >> but usually the market overreacts. >> so if this is the first. >> reaction. >> i would probably. >> guess that the second reaction is pulling back from some of that decline. >> it's both sort of a combination of market meets policy meets politics moment, which is a sense in the market. i think that this is some negotiation and something happens quickly. i don't know how quickly though. we're talking about and then the second second order effect, not a second order, maybe first order effect is the, you know, americans like myself who love avocados. and right when my

avocado. no, no, i'm not joking. when the avocado costs, you know so much more than it did before. and not just avocados, but name all the stuff that's going to happen in the supermarket. and i imagine. >> there are a lot of. >> vegetables and. >> fruits in the next week, right? like this is going to happen. and then the question is what kind of political pressure there's going to actually be on president trump when the american public starts saying, i'm at the supermarket and this is not working for me, or do you think that the american public is going to say, i'm willing to accept this pain? i have my. avocado toast. i'm at my super bowl party, but i can't have all this stuff. like, is that going to be okay? because i was i remember being on tiktok during the biden administration when people would go on from the supermarket and, you know, say that the world was coming to an end because, you know, eggs cost what they cost. so what say you? >> i do think americans vote with their wallets. so if they're feeling the pain, just like when they feel pain at the pump, it does affect confidence.

and i think if people are feeling in. >> their. >> wallet what they have to pay. >> and. >> you know, many americans actually don't have an. ability to absorb all these huge costs. so i think you're going to feel the pain. >> do you think the companies absorb the pain, or do you think, i mean, that's the other thing about inflation, which is sort of an interesting thing. there's been these moments where some companies have absorbed the inflation. some companies have actually done the exact opposite. they have exacerbated the situation because they said, well, look, if everything's going up, we should actually. >> they have to raise their costs. >> to get ahead of this thing now. >> that's right. greedflation was, i think, a bigger problem before. i think there is a lot more pushback, and it's going to be tougher for companies to pass on prices. but i'd also, you know, take some of the executive order at face value. you know, this isn't really about rewriting all of trade practices as much as it is trying to get canada and mexico to talk about the flow of illegal drugs and illicit chemicals, etc. >> so to. >> be honest, he he has to have that. he has to have a crisis at

the border because otherwise it is congress's place to raise tariffs. if it's an emergency situation, then he can declare an executive order. he says europe is going to be next. what's the emergency that that we say is the reason that we're raising tariffs on europe? >> yeah. >> and maybe that's when the market will actually push back as well. >> yeah. >> what do you think of bitcoin. give me give me the read. what's what's the floor. what's the what's the top. >> yes. bitcoin i. >> think still. >> is going. >> to be one of the. >> best performing asset classes this year. >> okay. >> but i think that there is still an argument that in the short term bitcoin is a risk on asset. so as the market liquidates which happened over the weekend bitcoin takes a hit. so i would say february is not looking great for bitcoin in the near term. >> and so near term. if you were a chart master you would say $95,000 is not the low. >> probably not the floor for this month. so it could it could visit much lower levels, even

70. but of course that will be end up being a buying opportunity. >> is this a buying opportunity when it's just down 1.5%, or would you wait for more volatility to say, i wait till three 5% before you really jump in. >> for bitcoin? well. >> not for bitcoin. i mean the broader market. >> for the broader market. i think for the full year, s&p is going to be higher even by mid year much much higher. okay. january already proved to be a positive month for the market when it faced all these headwinds. and so i think this one's another headwind. but another reason to be looking to buy the dip. >> tom thank you and thanks for coming in so early. >> yeah. thank you. okay. >> coming up, we have you covered on president trump's new tariffs from every corner of the markets this morning. the auto industry could be one of the hardest hit. and phil lebeau is going to spend some time with us walking through what is happening in detroit over the weekend. plus, one of the last biden administration regulators that hadn't been fired. well, now he has been fired. we're going to bring you that story going to bring you that story after the break in just a (birds chirping)

medical discovery is like finding the right stone, and watching your discovery inspire further discoveries. dana-farber's momentum of discovery has changed cancer treatment everywhere. people aren't just living with cancer, they're living beyond it. (♪♪) (♪♪) ♪ empower ♪ i got her a little something. a little something, dad? hold up. walt rolled his 401k accounts into an empower ira, and it's grown nicely. i'm for team splurge. (♪♪) thanks, grandpa! get good at money. so you can be a little bad. empower. the. >> store and i lied and said i was an ambassador. do i get a discount? the owner called. discount? the owner called. >> (traffic noises)

(♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go. >> investments. >> providing an. >> added layer of security to improve your portfolio with guaranteed income. invest with confidence. build a better portfolio with bam insured bonds. >> this game to us is something deeper. >> it's a simple connection to a. >> ball. >> a club, and a single purpose.

>> it's a release. >> from the. >> noise. >> a respect to the silence. >> of the course. we love. >> this game because we need. >> this game because we need. >> this game. straight down. all the buzz around bitcoin isn't just talk anymore crypto has gone mainstream. at itrustcapital, you can buy and sell cryptocurrencies 24/7 with the tax benefits of an ira. that's right, with an itrustcapital ira, you can defer taxes until retirement or choose a roth ira for tax-free withdrawals later. setting up an account is quick and easy it only takes minutes. open your account today at itrustcapital.com. the new era of crypto is here. what tractor supply customers experience is personalized service. made possible by t-mobile for business. with t-mobile's reliable 5g business internet. employees get the information they need instantly. this is how business goes further with t-mobile for business.

>> on saturday, the white house fired the head of the consumer financial protection bureau, rohit chopra. the fact that he hadn't been fired yet seemed to come as a shock to everyone, including chopra himself. here's what he told us back on january 24th, when we asked if he was surprised to still have his job. >> i am ready. to pass the baton whenever someone is identified, and i'm working hard to set them. >> up for success. >> the cfpb. >> was largely expected to be a target for the doj's department's cuts. elon musk has openly pushed for that bureau to be abolished. >> meantime, president trump's tariffs against mexico and canada. they're going to have a deep impact on the auto industry and also potentially future car buyers. so we wanted to get to our automobile expert. phil lebeau is with us this morning who's been going through all of this over the weekend. lots of

different impacts. and i'm so curious what folks in detroit are talking about right now, phil. >> they're talking about how they can limit the impact of these tariffs, not only in terms of finished automobiles, but also with auto parts. and we'll talk about that in a little bit. let me give you some perspective in terms of how many vehicles that are sold. >> in this. >> country or were. sold last. year came from mexico and canada. and more of the production. >> two thirds of the production. of those imported. >> vehicles coming from. >> mexico, 3.72 million vehicles. now, these are vehicles. that were sold in the u.s, 16% built in mexico, 7% built in canada. >> which raises the natural question okay, well, if the tariffs go into. >> effect, how much will the price that. >> i pay at a. >> dealership change? it's hard to know. >> because it's hard. >> to. >> know how. >> much of this will be. >> eaten by the. >> companies, passed. >> along. >> to consumers, adjusted. >> because of shifted production. >> but s&p global mobility estimates that. >> the cost impact is.

>> $6,250 per vehicle, and most of that is likely going. >> to be passed along to the car. >> buyer if. >> these tariffs continue. >> and they last. >> over time and again. the automakers we heard this from mary barra last week. they are. >> trying to. >> or will try to adjust their production as much as possible. who can do that and who can't? depends on how exposed you are primarily to mexico. and we'll talk about canada. i know in the in the days and weeks to come, but i'm just focusing on mexico at this very moment. the percentage of u.s. sales coming from plants in mexico, vw. >> by far almost. >> half of its u.s. sales coming from down there. there you see nissan and then the big three, stellantis, gm, ford, the least exposed. it has the most of its u.s. production or u.s. sales coming from production in the united states. as you take a look at the shares of gm, ford, stellantis, all of them took a really substantial hit. i'd say on wednesday, they were all down about 1%. that carried through on thursday and friday. what is

the potential impact on earnings? and again, a lot of this depends on how much they are able to offset. worst case scenario, according to tom darian at rbc capital markets. and again, this is a worst case scenario 21% hit to earnings for gm, 15% for ford, stellantis at 12%, and an almost 10% hit to volkswagen. i mentioned the auto parts suppliers. they're probably in a bigger pickle than the automakers. why? automakers have a number of plants where they can shift around production to potentially limit the impact of tariffs. not the case with a number of the auto suppliers. and remember, more than half more than half of the auto parts and components used in vehicles built in the united states are coming in from mexico and canada, and they can't adjust that production. so it'll be interesting to see how many of these adjustments can be made. and it partially depends on how long this tariff lasts. >> what do you make of tesla's

shares, by the way? higher this morning? >> well. >> some of that will be people saying they have the most american made vehicles at their plant down in texas as well as their plant out in california. and there's some truth to that. keep in mind, they also have far fewer components. and so the components that they do have, most of those are sourced in the united states. so if you're playing the tariff game, you look at tesla and you say, well, they're the least impacted by anybody. keep in mind also that evs are such a small percentage of overall u.s. auto sales relative to the market overall, that it's hard to sit there. i don't think there's going to be anybody saying, well, i want to go where i can get the least impacted vehicle. i'm going to go to a tesla. a lot of other things are in play there. >> okay, phil lebeau, we're going to keep our eyes on all of this, of course. and i'm sure we're going to be talking a lot more to you about all of it as well. thank you. you bet.

>> all right. still to come this morning. much more on president trump's tariffs and the response from canada, mexico and china. >> we will run. >> you through today's market moves next. squawk box will be moves next. squawk box will be right (♪♪) now for something you can both agree on a sleep number® smart bed is perfect for couples. the climate360® smart bed is the only bed that cools and warms on each side and all our smart beds adjust the firmness for each of you. let's agree to agree on better sleep. a year? try rose and now, save 50% on the new sleep number® limited edition smart bed . plus 0% interest for 36 months. insurance checker to see if you're covered for glp one for free. no paperwork, no waiting on hold. just submit your

insurance card and we'll take care of the rest. join the over 100,000 members who've trusted rose to check their coverage and start losing weight sooner. go start losing weight sooner. go to rose new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire >> good drinking it. >> hello there. >> the all. >> day energy i get is good too, and it's easy on the stomach, but mostly. >> it's. >> because i look. >> good drinking it. >> experience the power of cnbc pro. track your portfolio from every angle on one optimized platform. become a smarter investor with the power of cnbc

and maria already asked for a budget reminder. >> smart buy. got it.

>> got it. boss otter, you got this. >> good morning everybody. welcome back to squawk box. we are live from the nasdaq market site in times square this morning. you are seeing some red arrows on this monday morning, a reaction to the tariffs that president trump plans to impose starting at midnight tonight. you can see right now the dow futures are off by about 560 points. s&p futures down by about 87. the nasdaq off by 355. they losses have been pared over the last many hours. but you are talking about declines of somewhere between 1.2 and 1.5% for the major averages. let's take a look at the biggest laggards in the s&p 500 right now. that would be the automakers kind of leading the way here. the way here. general motors off by about six and two quarter two thirds percent. constellation brands, the alcoholic beverage maker also at the top of that list. it's off by about 6% right now because of

concerns about what it will mean overall for the liquor industry. >> meantime, just capitol releasing its 2025 list of the 100 most just companies in america this morning. recognizing firms doing right by five key stakeholder groups workers, communities, shareholders and governance, customers and the environment. cnbc is just capitol media's partner, and we've got an exclusive on the launch of that list. our brandon james joins us to reveal the list. top ten. tell us what's going on and how things have adjusted or shifted, given the shifting winds of the politics of this moment. >> yeah, and we can definitely get into that too, right? the conversation around dei and how that. >> weighed into this. year's survey, but just capital use public data around 17 issues. and this. >> is. >> key that were identified by the american public as the people's priorities, worker related issues like paying a fair and living wage and supporting worker well-being. ethical leadership emerging this year as a top issue. more americans looking for transparency and openness from companies. so here's which companies measured up hp for the

second year in a row. america's most just company. you see bank of america, accenture, citi, and cigna all returning to the top ten. some new names this year like hp inc, union pacific. bny mellon this year two you're seeing more utilities, chemicals and construction companies ranking. higher with more representation in the broader just 100 overall, including trane technologies and eversource energy in the. >> top ten. >> those industries seeing job growth in the us created. here increased transparency and disclosure, plus notable investment. in benefits for workers. we'll be looking further into the. >> list. >> throughout the day into some industry specific leaders. plus, as. >> we said, the. >> dei conversation and how it played a role this year. but i'll let you dive further with paul tudor jones and hp ceo. antonio neri later this. >> hour as well. so here's my question to you. and i don't know how much you spent time on this. so the good news for hp, by the way, year over year the stock is up close to 40%. the reason i ask about stock performance is and we'll talk to paul tudor jones about this. how much do you think there is

actually any kind of correlation between stock performance and being on this list, or at least doing well by this list? the reason i ask is hp had a great year this past year. prior to that, it actually had not had a great year, or actually even there was a couple of years that it was sort of a challenge situation. do you see a correlation? >> yeah. >> so and. >> we also have a chart. >> for. >> this too. >> we actually chart the. just 100 companies from this. >> year's list against the broader. >> russell 1000. >> equal rate. >> right. >> and you can see that that index actually. >> does outperform for last year. >> the broader equal weight russell 1000 by about 5%. and so i think the conversation there to be had is if the arguments being made that these companies can't focus in on these core issues, right. providing a fair and living. >> wage. >> equitable representation in. >> corporate america. >> because it's going to impact their return on investment for shareholders. well, if the stock's outperforming the broader market, can you still. >> make that argument? >> brandon. it is a fascinating question and one we will be talking a lot more about during the broadcast. paul jones a little bit later. thank you.

thanks. >> all right. when we come back president trump adding 10% on china's current tariffs. but congress may want further action against beijing. we have that story next. and elon musk gets the keys to the treasury's payment system. he calls u.s. aid a criminal organization that, in his words, must die. we're going to talk about these developments next. squawk box will be right back. >> welcome to reinvented with accenture. today i'm here with margherita della valle, ceo of vodafone. you were employee 25 in vodafone italy. today. you're the ceo of vodafone. what is your strategy and vision for the future? >> we are changing our culture to really focus on our customers. we need to acknowledge that change is hard, but if people. understand it's for the right reason, then you get the power of the get the power of the organization with you.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire >> does it. >> feel like. >> you're not. >> being heard? thank you for calling. please hold. >> no. that's better. trey palmer doesn't have a massive call center. instead, your calls are answered by real people who know you by name and are empowered to help. like me. hey, chuck, how are you? what can i do for you? >> i want. >> the fastest. >> working glp. one for half the

price. rome now offers fda approved weight loss injections cheaper with results. you can see. >> faster. >> lose 15% of your weight with the formula from eli lilly that hits not one, but two hormones to curb hunger and nausea. weight loss. faster, confidence, higher. higher. >> price oh, it's cold outside. time to protect your vehicle from winter's wrath. of course, the hot sun can be tough on vehicles too. you need weathertech. laser measured floorliners and cargo liner will shield the carpeting from sand and snow. for your interior, there's seat protector and sunshade. plus, mud flaps and bumpstep for the exterior. impactliner, with shock absorbing rings, safeguards your truck bed from costly damage. order american made products at wt.com surf's up!

>> our. >> president trump slapping another 10% on china's current tariffs. but does congress want to see more action against beijing? emily wilkins joins us right now. she has more on that front. good morning emily. >> good morning becky. well yeah. when it comes to increasing tariffs on china, at least one top lawmaker wants to help trump go even further. he's the chair of the house select committee on china. >> john molner. >> and he's pushing to really substantially increase the average tariff on chinese imports. and this is going to be through ending china's permanent normal trade relations, that status between china and the us. now, trump says that he has already come out and said that he wants to revoke this status. >> but to. >> do so, he would need congressional approval. molner is also pushing a couple of other measures against china, including limiting u.s. investment in chinese companies and expanding export controls.

now, most republicans so far. are supporting trump's tariff hikes, but maine republican susan collins is raising concerns. now, collins is the top appropriator on the at the top of chairman, rather on the powerful appropriations committee. and she said in a post on x over the weekend that, quote, these tariffs will have a significant impact on maine's economy and risk increasing costs for our residents. lawmakers will return to d.c. today, where they're likely to face pressure from a number of lobbyists, from farmers to homebuilders, about what the impacts of the tariffs could be. >> guys okay, emily, thank you for that. what a weekend it's been. we're all looking through it for a look now at the flood of announcements from the trump administration over the weekend. want to bring in axios co-founder mike allen? i don't even know where to start, mike. i don't know if you want to start. let's start with tariffs and then let's maybe go into the treasury. doge elon musk

ecosystem. but in terms of the tariff piece of this, how surprised should we be or not. and i ask because the president during the campaign said over and over again this was going to happen. having said that, we had lots of people come on our set and say, oh, it's just a bluff. it's just a negotiating tactic. however, i think he would say it is a negotiating tactic, but the only way to negotiate is to put the tariffs on 100%. >> i agree with your squaring of those. those are not mutually exclusive. andrew, just. >> to step back. that list. you gave is. just basically the last 24 hours. there have been 300 some hours of this administration as we start. week three today. but you're totally right that there's lots of people very close to the president who think that this is the beginning of a negotiation. they see the tariffs as a club to get concessions. so that's exactly your point that you have

to do it. and it's just like greenland saw that what people think at first think the president is quipping or positioning or. trolling quickly becomes very real. at the top of axios am this morning, we spell out all the times that president trump now including re-upping yesterday talking about canada as a 51st state, something that began as a dinner time, what people thought was him trolling prime minister trudeau at his dinner table at mar a lago. he keeps saying it. you got to listen. >> the question i'd ask you, though, before we get into the doge and elon of it all is politically. and we were talking about avocados. and i know it sounds sort of trite when we're talking about, you know. >> your homes. >> what's going to happen to people's super bowl party or whatever, but. >> your. >> avocados, right.

>> how much do you think that's going to have an impact politically when people go to the supermarket over the next several weeks? and what kind of pressure will they bring to bear on the president and his ability to negotiate these things? >> yeah, this audience knows better than anyone how responsive this president is to both his own popularity and the markets, which he takes as a proxy for his popularity. he's promised a golden age last night. if i look a little, if i look a little bedraggled, i was up from midnight to one to listen to elon musk's spacex audio presentation on x, where he said that under the president's golden age, he could imagine 0% inflation. if you get spending down enough, if you get debt down enough. so they're setting very high markers for themselves. and he knows that there's lots of reasons he was elected, all of which we've unpacked on this show. one of

them is that people felt prices were too high. so he's going to be very responsive to that. and that's why so many people close to him think that this is stage one, not the final act. >> hey. >> can i just point out something? i'm going back and forth with michelle caruso-cabrera. our audience knows her well. she makes a very good point, just that we should be watching the dollar very closely. the dollar is up about 1% against the canadian loonie. it's up about 2% versus the peso at this point. the inflationary impact of these tariffs decreases as the dollar increases. you know the inflationary impact you feel from that. it's not great news for our international companies that have already been dealing with a much stronger dollar over the fourth quarter for the dollar to step up and its appreciation over this time. but it is a valid point that consumers may feel it a little less directly. i would also say people like doug mcmillon, the ceo of walmart, who were at the

inauguration. look, it wouldn't surprise me if there was pressure from this administration to say, don't raise prices right now. find a way to eat some of this so the consumer doesn't feel this instantly? >> no, becky, that's. >> a brilliant. >> reading between the lines. very helpful. and i would just add to that when people say, well, why will the president take this chance? i can tell you from talking to people at the president's left and right hand that at the moment, a word that one person used for me this weekend is ebullient. he's feeling his power, something that an essential insight to understanding everything that's happening with this president is he no longer listens to people who say, you can't do that. you don't understand how that works. you don't know what's going to happen. that's not how it's done. he does not listen. he no longer believes that. as he quipped to one person, he said, usually i hear that from senators. he believes he knows his mandate and this is super

important. elon musk at his right hand telling him again and again, people voted for revolutionary change. and that's the list that andrew gave at the top. that's how elon musk is going through the government. >> this is the next the next piece of this that i want to talk about. so elon musk is now inside the treasury department's payment system, which, by the way, is probably the place you want to be if you actually want to understand at least where all the money is going, there's a difference between trying to understand where all the money is going and then to decide, you know, which payments you're toggling on and which payments you're toggling off. historically, all of those payments were paid irrespective of whether they were good or bad, because they were sent by the various agencies to be paid. and there was a view from a trust perspective that, you know, if you were a payee of the us government, you were getting that money. and that's true of whether you were a not for profit or just about anybody

else. and so my question to you is, how do you think this all plays out? does he turn off these payments? does he stop payment effectively? two organizations that historically were getting money. what happens then? do they sue the us government and say we have a contract or we have an arrangement or whatever it is to get that money? does that then play out in court? will the courts be able to turn those payments back on if, in fact, they were found to have been illegally or improperly turned off? i mean, this gets and are they civil cases or what are we talking about here? >> yes. yes. no. no. yes. the like you've outlined the complexities. and here's the way that i would think about it. the test of their the challenge for them is to bring the rigor and the transparency and the principles that they want to this without accidentally messing up a veterans program

and opioid addiction prevention program hitting an individual, which they have again and again said they don't intend to do. and the reason that's going to be. >> there's going to be collateral damage there. just it's just impossible for there not to be. i mean, i remember one of the things that elon musk did and look, you could argue he was quite successful at doing it. he fired a whole bunch of people, if you remember, stopped payment to a lot of people. but by the way, then turn some payments back on. then, by the way, rehired certain people after afterwards. >> right. with twitter now ex, he basically took the approach. like anybody that i don't know i need, i'm going to get rid of and then i can bring them back. and what that's going on throughout the government. new york times reporting this morning that around 1 a.m, usaid agency for international development workers got an email saying, work from home today. that's a first for this crowd,

but then a staff meeting tomorrow and they expect big reductions. we're going to see that in department after department. listening to elon musk last night on his spaces at midnight, which, by the way, he says he's going to do weekly. very interesting. own the next day's conversation. he is feeling both empowered and zero doubt that he knows that he is able to pull these things off. the he said the president had told him that they could shut down usaid, probably fold some of the functions into the state department. the president last night saying a final decision hasn't been made, but elon musk is winning again and again. >> go back, though, if you could, just from a legal perspective of how you think that this payments issue is going to sort itself out, meaning do you imagine they're going to be payments that are turned off? and therefore, what kind of legal, legal repercussions and the ability

for those who were maybe supposed to get those payments or at least got those payments before to try to get them back if they were supposed to get them. >> i have no insight into what they plan to do. i can tell you that based on past behavior, that they would be willing to they they would say, we're going to have to take aggressive steps to fix this. the analogy that elon musk used early this morning on his x spacex this morning about usaid. he said it's not an apple with a worm in it. it's a bowl of worms. it can't be fixed. you have to shut it down. and i know from the conversations that he had as the president was picking the cabinet with elon musk, literally his right hand, that he's the person in the president's ear reminding him of them, reminding him to be aggressive. >> we got to go. just one last question. daylight between the president and elon musk. is there any. and i ask because one of the comments that trump did

make over the weekend was that he thinks that elon has a lot of good ideas, but not all. i mean, basically said, you know, there's some good ideas, some not. some will let him do and some we won't. how does that work? >> and he added, but we love him. and elon musk said last night he loves the president. i would take the under on the daylight. these are two people who are used to running their own worlds, but the president likes elon's disruptive ideas. elon's clearly having the time of his life. i think it's going to last longer than some. >> mike allen, thank you for walking us through all of this. a very busy weekend, and thank you for staying up late last night, listening to that and coming on this morning. >> thank you. >> all right. when we come back we're going to talk about the president's tariff strategy with one of his top economists, nec director kevin hassett. squawk director kevin hassett. squawk box will be right (♪♪) i don't play for money.

before my mom passed, she told me to play big— play for something bigger than myself. now, my ambition is to play so i can help and inspire others. that's why i joined sofi. they help people save, spend, earn, borrow, and invest toward financial independence. so they can realize their ambitions. no matter what they're playing for. sofi. get your money right. >> it guides. >> our every waking moment. what we do. >> and how we do it. >> but the amount of light we need can change in an instant. >> and when it does, you can. >> control it. >> three day blinds. >> find the. light for your life. visit three day blinds.com to get started.

>> i'm alison. >> lundberg, strategist at americaneagle.com. >> wagner came to us with a. >> goal to make. >> their. >> website user. >> experience seamless and simplify. >> access to product information. for customers. >> we build enterprise websites like this all. >> the time. >> through a fully. >> integrated digital transformation. >> wagner spraytech. >> com is. >> now a fast, mobile optimized website with an engaging user. >> experience for. >> complete website and digital >> complete website and digital solutions. go with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper at its project, and mining friendly wyoming. u.s. gold corp has a reserve of almost 1.5 million ounces of gold equivalence, permits to mine, zero debt. nasdaq listed with only 12.3 million shares outstanding and a portfolio of world class american strategic metals assets. u.s. gold corp. join the golden age.

the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.

this morning. got a lot going on. some red on the screen. the dow off about 553 points on the back of this tariff. news and some other news as well. we'll talk about that. the s&p 500 off about 87 points. the nasdaq looking to open down off about 360 points. also want to show you treasuries. we're going to show you where that stands. the

ten year at 4.54.54. you're looking at the two year at 4.27. let's talk about oil. because those tariffs in canada 25% on everything oil 10% though. and you're looking right there at wti crude at 7453. >> it's probably worth pointing out that canada to this point has not decided to has decided not to retaliate at this point by slapping export tariffs on any of its oil and gas. alberta, where much of it is produced, is very much opposed to doing that at this point. it could be on the list for later. they have hundreds of billions of dollars that they are looking in retaliatory tariffs with. but at this point, energy is not one of them because it would hurt them pretty badly. >> let's show everybody nat gas and then we should probably show everyone bitcoin because interestingly and the dollar. let's do it. let's do a couple of things here. nat gas 3.3. let's show you. you want to do the dollar first. you want to do bitcoin. we can do them all. but it's important to look at it because you can really see the impact of what's happening here. bitcoin down at $95,000. that's

a bit of a risk off trade at this moment. we're talking tom lee just in the last hour about it being a risk on risk off sort of indicator of where things stand given the sell off. perhaps people who have sold out of the stock market or a margin call or whatever, had to then get rid of some bitcoin to pay for some other things, and then you can see what's happening in terms of the impact on currencies this morning as well. >> the u.s. announcing 25% tariffs on canada and mexico that are due to kick in at midnight tonight. also, an additional 10% tariff on china. megan cassella joins us right now with more of this breaking news over the weekend. and, megan, so many questions about whether this will be imposed, how long it will be imposed, what would be reasons for lifting some of those tariffs if they are imposed at this point? what are you seeing right now? wrap it all up for us. >> everything's out there. becky, it's interesting that there is still a lot of skepticism that these will even take effect when every indication that we've gotten over the past three days or so,

really since thursday, friday last week, was that they would. but we'll get into some of those questions. but first, this is an opening salvo that i would say goes much further than what we were seeing in trump's first term. the tariffs will cover about $1.25 trillion in goods, about 40% of everything that the u.s. buys from abroad. that's more than triple the level that trump set tariffs on in his first term. there will be no exemptions, meaning no company can apply for a carve out for their products. and the white house removed this rule that used to allow low value packages to come in without paying tariffs, dealing a blow there to small businesses and fast fashion retailers. trump is also acknowledging this time around that the tariffs could bring some economic pain. but he does say that the end goal of making america great again will be worth the price that must be paid. now. the tariffs are set to take effect at midnight tonight. trump does say, becky, that he'll be talking with both mexican and canadian leaders this morning. mexico's president also says that she will be detailing what their retaliation will look like later today. so there is that small window left

to work out a deal to get back to your original question, but it's still not clear what would satisfy trump's concerns right now that are centered on fentanyl and border security, or at least what would satisfy them before midnight tonight? becky. >> canada has already come out and said what their initial retaliatory impacts would be. about $20 billion of imports from the united states, things like alcohol, coffee, clothing and shoes, furniture, household appliances. and they're going to be targeting areas that are republican led things like whiskeys from kentucky, oranges from florida, appliances from south carolina. there's a second wave that is expected of about $85 billion. that would include cars and trucks, agricultural products, steel and aluminum aerospace products. so more to come on these fronts. and you've got ontario and british columbia that are already moving to block the sale of u.s. wines. i think ontario alone, according to the wall street journal, makes up about $700 million a year in sales of u.s. wines. so you

could feel the impact rather quickly. not a trade war at this point, but if you see the retaliatory measures and then president trump has said that he would raise the tariffs even further if there was retaliation, that's when you start to wonder where things go. >> that's a key point, that there is this retaliation clause, right, in the president's executive order saying that he can and will likely raise these tariffs further once the other countries retaliate. all three countries say that they will. we're going to hear more from mexico today about what exactly they're targeting. and while canada is giving themselves a few weeks for to get to their second round, there's talk, too, of things like tesla specifically, maybe seeing a 100% tariff. obviously that's more bluster than it is bite, but it's the kind of thing that we're likely to see. excuse me, in the coming days as these countries get more into it. and that's what the president could react to. he's going to be watching the markets today. he's going to be watching the currency today. you guys have been talking about the dollar. scott bessent has been saying before his confirmation that he doesn't want to see the dollar strengthen against other

countries, that that wouldn't be good to see it strengthen against other currencies. so watching things like the markets, seeing specifically what they're going to be targeting, seeing consumer reaction, some lawmaker reaction, though, i should note, we're seeing a lot of support from republicans on the hill, but a lot to still watch here in the coming days. >> yeah, we're looking at the dollar right now. it's up 1% against the canadian dollar today. it's up 1.6% right now against the mexican peso. it had been up about 2% earlier today. but remember that's after we saw a very strong dollar all the way through the fourth quarter, to the point that it was an issue that a lot of companies have had to start talking about international companies or multinational companies that are based in the united states. talk about that strong dollar and how it does lessen the profits that they're bringing back from overseas. so we'll continue to hear that and kind of keep a focus on it as it comes through the earnings season, too. megan, thank you very much. when we return, we're going to get much more reaction to president

trump's new tariffs. we will hear from white house economist kevin hassett that's coming up in the next hour actually less than an hour. so stick around. plus we're going to get into the sectors and individual stocks that could see the biggest impact from both the tariffs and retaliatory measures potentially coming from our biggest trade partners. squawk box will be right back. >> executive edge is sponsored by at&t business. next level by at&t business. next level moments need the next level it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! and trading

tools. >> designed to. >> help them outperform the markets. >> meet them at. >> interactive brokers investors marketplace for advisors advisors at interactive brokers keep all they earn on our low cost platform, with no ticket fees or custody charges, low margin rates and high interest earned on idle cash to get better results, get a better platform. the best informed investors choose interactive brokers. >> with 19 hotel brands at ihg hotels and resorts, you can guest how you guest unplug for the day or plunge into a long weekend at a holiday inn. savor the moment or savor the details at a crowne plaza hotel. stick to the agenda or experience something unexpected at kimpton hotels. choose from 19 ihg hotel brands and earn points for free

nights with ihg one rewards. >> here you go. >> is there any way to get a better price. >> on this? >> have you checked single care? whenever my customers ask how to get a better price on their meds, i tell them about single care. it's a free app accepted at pharmacies nationwide. before i pick up my prescription, i always check the single care price. >> it's quick, easy, and totally free to use. >> single care can literally beat my insurance copay. >> you just search for your. >> prescription and show your single care coupon at the pharmacy. >> so i just show the coupon. >> and get this price. >> that's right. go to single care.com and start saving today. >> the market for solar. energy in the us is expected to reach $125 billion by 2030. now meet solar max technology, a nasdaq company symbol smart poised for robust growth with strategic initiatives aimed. >> at developing. >> and managing large scale, technically. advanced commercial and industrial solar and energy storage projects. ranked in top 1% of all us solar installers. anticipating double digit revenue growth in 2024 through

25. solar max symbol. >> smart. where? >> mizuho. >> sound familiar? it should. >> helping companies. >> behind the latest medical breakthroughs. >> mizuho was. >> there backing. >> the company. >> battling eye diseases. that was. >> us. >> to financing. >> a company revolutionizing weight loss treatments. >> yep. >> also us. so if you're looking for a corporate and. investment bank as a partner, you already know our work. >> now you know. >> our name. >> mizuho americas. a name worth knowing. >> today, the top 100 public companies ranked on issues of workplace ethical leadership and environmental responsibility. america's most just companies revealed who's in the top spot. special reports all day cnbc. >> welcome back to squawk box. new device or a new alert about a device maker. this one, a beckoned beckoned dickerson.

dickinson. the financial times, citing people familiar with the matter, are reporting that activist investor starboard value now taking a stake in the company it's pushing to sell its life sciences division. the ftc saying that starboard has met the group's management team and also sent a letter to the board imploring the company to spin or sell off the unit. the size of the starboard stake unclear right now. and we've reached out cnbc that is, to becton dickinson for comment. we come back a lot more on squawk box. we're going to talk about this market, sell off the tariffs and everything else. what a way to start the month of february. take a look at the futures. we are off about 1.3% right now on the dow, 1.6% on the s&p 500. just this morning the nasdaq closer to 2% off right now 1.85. we're coming back. and then later we should mention we've got economic council director kevin hassett. he's going to be with us. he's going to get into all of this importantly and what's going on inside the white house over the weekend. we'll house over the weekend. we'll come right back.

icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

bitcoin is. >> the best. >> performing asset. >> but its volatility. >> has kept many on the. >> sidelines until now. >> introducing the world's first suite of downside protected bitcoin etfs. capture bitcoin's. upside potential with downside protection with. 190 or 80% protection levels over the one year outcome period. asset management. >> at a time. >> of disruptive change. calamos today. for tomorrow. to send.

>> info kit.com. >> physicians mutual, physicians mutual. >> i'm bobby brown and i. >> started jones. >> road because. >> i wasn't done. jones road is a modern approach to my beauty philosophy. clean good for you.

products that are versatile and easy to use. learn more at jones road, beauty.com. >> i find it challenging to come up with a gift that's really impactful. >> but something. >> that really makes. >> a difference. jolie has been a tremendous gift. >> it's something that is not only looks beautiful. >> but makes us feel. amazing and is something that we get to use every day. >> welcome back to squawk box. markets digesting president trump's tariff orders. i want to bring in barbara reinhart. she's the chief investment officer of multi-asset strategies and solutions at voya investment management. and boy, have we had a weekend. and boy, are we trying to understand what is about to happen next. >> so it. >> was so. >> quiet over. >> the. >> past few months. we didn't have. >> to work on sundays. and yet here we are again. >> here we are. so what? what did you do yesterday? and what are you going to do this morning? >> right. so i guess the so. we actually. started preparing for this back in december. >> we thought that. >> markets were. >> getting. >> very overbought. >> sentiment was most extended. >> so we took our. >> equity overweight down in

december of last. >> year knowing. >> that this year was going indeed to be bumpy. >> we didn't think it would be quite this bumpy. >> so fast, but i think. >> the big thing that we're thinking. about today. is how much. >> this impact is going to be not only on the us economy, but also on. the chinese, mexican. >> and canadian. >> economies as well. this is a very big hit to these economies, and we. >> think that it's going to be. >> you know, a. >> pretty significant hit to the markets today. do you think as a result, those countries will offer concessions quickly? >> i think it's going to be so. >> painful for both sides, the us. >> as well as for canada and mexico, that i don't think that. >> this. >> is necessarily going to be sustainable. it may go on. >> for a. >> couple of weeks. >> but you. >> have to remember. >> if you take a. >> look at. >> global x. good exports, you know, china, mexico and canada are. 40% of those exports. >> you just said you think this goes on for only a couple of weeks. tell me why. >> because it's. >> going to be very painful for all sides right. >> this these. >> tariffs have the potential to

knock off about 3 to 5% of u.s. earnings. right. >> you're only. >> looking at about nine and a half to 10% earnings growth this year. so you're at the worst case scenario. you're cutting those. >> in half. >> meaning you think the companies are going to pay for this. it's not going to get passed on to consumers. >> no. >> so it's. >> going to hit it's. >> going to hit both sides right. so it raises. >> import costs. and then. also it's going to hit consumers as well. so consumers necessarily. >> are. >> going to start to try to think about how they can get around these things. but when you're thinking about auto exports and you know company cars that people drive, that's an issue. >> but here's the question. there's a venn diagram here. yes. on one side is the trump administration trying to get what it's what it wants. what a successful metric, by the way, is i think is still a little unclear. that's true. and so how much leverage does he have with canada and mexico. right. and how much time does he have? because he has more time, you'd think, than they do. >> yes. >> that's true okay. however, on the other side, you have the american public.

>> yes. >> right. and their costs go up. they we talked about the avocados. right. they go to the supermarket and start getting outraged. we don't know. right. how much time do they have. he talked about that this is going to inflict pain, at least temporarily, on the american public. how much appetite does the american public have for that? where those lines meet is where the sort of leverage point lies or doesn't. right. for the united states, you say that's three weeks from now? >> no. so i think that. probably mexico and canada probably are going to feel it more so than anybody else. china has kind of been put to the side. the tariffs are implemented. they're only 10%, 25% on mexico and canada. i think that mexico and canada are going to come to concessions before the us consumer probably. >> starts to. >> really feel the pain substantially. so this could go on for a couple of weeks. it could. >> go on. >> for a couple of months. i think the us consumer, probably sometime in the next three months, is going to really start to feel the pain of. >> this larger piece. you know, robert lighthizer was on 60 minutes. and also, i would argue the president during the

campaign argued, you know, if we implement tariffs, we're going to have a forced forcing mechanism, which is that companies are going to say both foreign companies and american companies. we're going to manufacture here. i would argue to you, that's only possible if you actually were to leave these tariffs on for a sustained period, like 12 months or more before companies say, okay, this is actually this is the future. >> places like sheehan and temu, i think i forget or one of the two of them are already building more warehouses here or taking more warehouses here to try and get around some of this. if they think that this is the long term over the next four years. >> yeah. i mean. >> if you. >> listen to global companies. >> they want to get a. >> toehold into the us. >> but i. >> have to think. >> that. you know, the. >> pain that us consumers are going to feel from the inflationary effects, that's anywhere between 3/10 and 6/10 of a percent on a on inflation, which. >> is that's. >> pretty substantial. >> we're talking about declines of less than 2%. i mean 600 points for the dow, 100 points

for the s&p 500. the s&p 500 on friday was only 1.4% below its all time high. this doesn't seem like it's all that volatile. like you knew this was going to be volatile. you must think there are much bigger drops to come. >> i got to think you're probably looking somewhere peak to trough, probably about a 10% drop. i know most people on the street think it's probably something closer to five. my sense is that and our team sense is that because multiples are so high, you just don't have the same type of cushion. so when you've got high multiples, lots of uncertainty. and i think most people on the street didn't necessarily think that the that the tariffs were going to be this severe this fast. that's what's caught everybody by surprise. >> today real quick because we're going to run out of time. yes. probably already have. we're all talking about the losers in this. is there any winner. is there anybody in the market right now that you say you know what. everyone's not focused on this. these guys are going to win because of this situation. >> yeah. so i think probably. >> the. >> winner is necessarily. in the longer term. i've got to think some. >> of the.

>> defensive names are going to be the winners. they're beaten down. they're not. >> necessarily owned. who's who's defensive in your mind. >> so those are the staples health care utility telcos. those probably win in the long run. >> you're not going to get us a name. >> i can't give you a name i'm a macro investor. >> barbara thank you. >> thank you so much. >> all right. when we come back, a closer look at president trump's tariffs and the impact on businesses across the united states. and later, new england patriots owner bob kraft will join us ahead of this weekend's super bowl. his foundation rolling out a new ad during that game. we'll be right back. >> oh. >> hi, frank. >> hey, goldie. >> i'm looking for those. >> reports from yesterday. >> they're on your desk, frank. >> of course they are. >> easily isolate phone calls to the driver's seat and the all new three row infiniti qx80. >> hi, i'm. >> jay jackson. for almost 20 years, abacus life has been purchasing life insurance. policies from seniors. and in

just seconds, you can use the free. calculator at abacus pays.com to learn what your policy might be worth. >> for many of my clients, selling their life. >> insurance to abacus was. >> right for them and their estate plan. >> don't sell. >> or lash your policy without going to abacus pays.com first. there are no fees and no obligations. >> get the real. >> value from your life insurance when you need it with abacus. >> did the state. >> of texas. >> just create. >> an alternative currency to the us dollar? i just. >> flew a film. >> crew to the. >> lone star. >> state to find out. what i discovered. >> is going to shock. >> you and could make you extremely wealthy. this currency, which is. being widely embraced. >> by. >> texas lawmakers. has already created thousands of new millionaires, including two texas college graduates who made $4 million in a single year. politicians down here in texas have already promised that no citizen of texas shall ever be deprived of their right to own

this new currency. the same law also states that all businesses must accept this new currency as legal tender. so mark my words, this has huge consequences for the us dollar, and it's going to make some people incredibly wealthy. get the full story of what's going on here in texas, including what you need to do to including what you need to do to profit. you just need with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper at its project, and mining friendly wyoming. u.s. gold corp has a reserve of almost 1.5 million ounces of gold equivalence, permits to mine, zero debt. nasdaq listed with only 12.3 million shares outstanding and a portfolio of world class american strategic metals assets. u.s. gold corp. join the golden age.

>> every day i'm reading extensively. i'm checking the markets throughout the trading. >> session. >> working the phones, talking to sources and doing my own reporting to share insights, information and all of the details that you need to be able to make money. >> welcome back to squawk box. i want to take a closer look right now at president trump's tariffs and the deeper impact on businesses and consumers. it seems these global supply chain reporter brian larocco joins us now. lauren, why so are these tariffs going to have such a big impact on american business and companies. and from your perspective, what do you believe is the deeper story here? >> the deeper story here, andrew, is that trade takes people and it's more than just a stock. it's more than diageo. it's more than anheuser-busch. when it comes to the alcohol, it's the farmers who grow the corn, the vineyards that grow the grapes and employ the

workers, and also the truckers. truckers now are going. >> to. >> be losing a trade. lane trucks get. paid based on load. so there is way more than just the stock angle of this. and also everyone's talking about oil when it comes to canada. what about the chemicals that the united states depends on. we're talking about chlorine. chlorine is used for our water treatment and food processing. it's actually our primary source of chlorine as an import. >> and from your perspective, what states do you think will become the most impacted here? >> sure. >> so according to some brand new research from this trade partnership group called partnership worldwide, they compiled data showing how much taxes that businesses are paying. and you've got texas, california, michigan, illinois, ohio and georgia, and they're actually paying the most taxes to texas last year paid a whopping $47 billion based on those taxes. and now adding on to the additional tariffs, these

states and everyone else, we're looking at a total of $233 billion in tariffs per day. that is going to be paid in taxes by companies. >> when you look at some of these issues here, when do consumers start to actually feel the impact on their pocketbooks? we've talked about going to the supermarket. we keep talking about avocados as our sort of prime example, but obviously there's a lot, lot more food at stake here. >> yeah. >> most definitely. i mean, when you look at it based on the product. so it's definitely going to be in the coming days. >> i have. >> been told that when you go to the grocery store, fresh produce and fruit is going to be raised and why you can't bring it in early. and so it's those products, and that's the reason why you're going to see that pass on. now for the general public. deer stags, who we just recently interviewed for the documentary on how companies are preparing for the tariffs. they make men's shoes and young boy shoes. the sweet spot for them is the $50 men's shoe. that shoe

is now going up to $75. the $35 little boy shoe is going up to around 60. so those prices, you're going to get sticker shock back to school. so parents are going to be getting the shock of their lives come july and august. because right now, andrew, this is when the retailers are negotiating with the apparel makers and the shoe makers in getting their items. >> lori ann, i want to thank you and want to throw one other one on the list that has been sort of undercovered, and it's something that i deeply care about, actually, i think becky cares about too. you have your newspaper there and your notepad and kids are going to go to school and need their notepad. paper. yeah, paper. if you like books, if you like newspapers, the trees, the pulp, it's in canada. so if that goes up 25%, thanks. >> all right. when we come back the market's looking at a lower open across the board this morning. dom chu is going to join us to have a look at the

biggest decliners in each of the major averages. squawk box will major averages. squawk box will be right back. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com explode? help yourself. it's time for an. accounting team that gets your business. we're making sense of modern day accounting, one acronym at a time. zen. do the official bookkeeping and accounting for e-commerce business.

>> 16 million americans suffer from chronic back pain, the sixth most costly health condition in the us. meet creative medical technology stock symbol sells on the nasdaq. creators of. stem spine, a regenerative medicine using stem cells to help fix the multibillion dollar chronic. >> back pain problem. >> stem spine was shown to be 87% effective at improving mobility and reducing chronic back pain, and that could be worth a fortune. creative medical technology stock symbol sells. >> want the fastest working glp one for half the price? ro now offers fda approved weight loss injections cheaper with results you can see. >> faster. >> lose 15% of your weight with a formula from eli lilly. see if you qualify at irokotv. >> we make sure the club members get the. access they need to make more. >> informed decisions. >> jim cramer gives. you much more than you. >> would ever. >> get from any advisor. it's more than a club. it's an dave's been very excited about saving big with the comcast business 5-year price lock guarantee.

five years? -five years. and he's not alone. -high five. it's five years of reliable gig speed internet. five years of advanced securit. five years of a great rate that won't change. it's back. but only for a limited time. high five. five years? -nope. comcast business 5-year price lock guarantee. powering five years of savings. powering possibilities. comcast business. >> authenticated luxury resale shop, now with code. tr20 for 20% off.

>> terms apply. >> all right. welcome back everybody. let's take a look at the futures this morning. there is some significant pressure on those futures. dow futures indicated off by about 620 points s&p futures are down by close to 100 points. the nasdaq down by almost 400 points. if you put this on a percentage basis. not not huge, but you are talking about declines of about 1.4% for the dow, 1.6% for the s&p, 500, 1.8% for the nasdaq. let's get over to dom chu. he's got a look at the areas of the economy and stocks in particular that are really moving on this tariff news. some of the biggest losers out there. >> dom. >> so as we talk about the idea that there are other ripple effects out there, of course we've talked a lot about the auto supply. >> chains and. >> things like what kind of trade goes between our countries, avocado prices,

mexican beer and everything else. if you take a look. >> at. >> the broader picture, one of the things we're paying attention. >> to is the tech supply chain. right now. >> it's not necessarily just a china. specific concern, but also what happens if there's a possible. global economic slowdown at some point. so the semiconductor stocks, in particular, names like nvidia, advanced micro devices, intel, micron and marvell technology among some of the biggest decliners in the premarket trade so far, driving much of that tech downside, especially for places. >> like the nasdaq and. of course, in. >> the s&p 500. so supply chains an issue. many of these chips go back and. forth as components and then finished goods between the us and china. so that's one thing to pay close attention to. the other thing that i want to focus on here is the rise in the dollar in general, not just against the mexican peso and against the canadian dollar and the chinese yuan as well, but just generally speaking. and what does that do to large. multinational companies that get a good amount of their revenues from abroad? what does that do

to their earnings down the line? so those multinational effects for names like apple, caterpillar, dow components there deere. 4.5% downside ralph lauren and starbucks. some of these companies that get a good amount of exposure internationally and of course to. >> specific locations like china as well. >> but that dollar rise, what will that do to earnings down the line. stronger dollar does have an impact on some of those revenues and earnings for some of these. multinational companies. so apple, caterpillar, deere, ralph lauren, starbucks among some of the notable decliners in the premarket as well. on a relative basis, the outperforming side of things has come on energy, believe it or not. wti crude and brant crude futures are both up between one and a half and 2.5% us benchmark crisis at $74.39. this is on fears of supply disruptions. what that does to prices over the near term, at least it pushes them up. eog resources, kotara energy, devon energy among some of the names that are actually green right now, us exploration and production companies and oil and gas again, not massive, but in a down tape like this, it's

notable to see here the issue becky comes longer term. right. because if we do have a longer term global economic slowdown that is bearish for oil. so there's this kind of push push and push and pull, this tug of war developing in the energy markets overall becky. so we'll keep an eye on those energy prices and those us based at least energy producers. i'll send things back over to you. >> yeah. and tom, one of the things we've been pointing out is we are still very close to our all time highs with the major averages. so really watching what's happening beneath the surface is pretty important. >> and to your point, we're seeing these declines, but it's not like we're at least for now, seeing that 1000 plus point decline in the dow, 2 to 3% declines in the nasdaq. we'll see if that happens later on down the line. but right now, hopefully things are somewhat stable. >> okay tom. >> thank you. >> you got it. >> okay. coming up, new england patriots owner bob kraft is going to join us in conversation. we're going to have with him in just a moment. and then later the just 100 list being revealed this morning. going to be hearing from just capital co-founder paul tudor

jones and hewlett packard enterprise ceo antonio neri. all that and more as squawk box that and more as squawk box rolls on after (vo) weight loss. for so long, i felt stuck. but zepbound means change. zepbound is for adults with obesity, to help lose weight and keep it off. activating 2 naturally occurring hormone receptors in my body, it works differently. it's changing what i believe is possible when it comes to weight loss. it's changing how much weight i lose. up to 48 pounds. and changing what happens. don't take if allergic to it, or if you or someone in your family had medullary thyroid cancer or multiple endocrine neoplasia syndrome type 2. tell your doctor if you get a lump or swelling in your neck. stop zepbound and call your doctor if you have severe stomach pain or a serious allergic reaction. severe side effects may include inflamed pancreas or gallbladder problems. tell your doctor if you are experiencing vision changes,

taking a sulfonylurea or insulin, having suicidal thoughts, if you're nursing, pregnant, plan to be, or taking birth control pills. side effects include nausea, diarrhea, and vomiting, which can cause dehydration and worsen kidney problems. zepbound means change. and when it comes to weight loss... change is good. discover the weight loss you could be bound for. talk to your doctor about zepbound. thousands of deaths each year. now meet new traband on the nasdaq stock symbol nctb. inventors of a versa, an abuse deterrent platform technology for pain management. new triband is expected to file for fda approval in 2025 for a versa fentanyl, with the potential to be the world's first and only abuse deterrent. fentanyl patch a versa is currently patented in a versa is currently patented in 46 dexcom g7 sends your glucose numbers to your phone and watch, so you can always see where you're heading

without fingersticks. dexcom g7 is the most accurate cgm, so you can manage your diabetes with confidence. ♪♪ (vo) it's half time, so you can manage your diabetes with confidence. (man) shower. it works. got two more upstairs. (vo) and the bedrooms. (man) i don't know what goes on in there. (vo) and the living room. (man) it's the hang out house. that's why i am moving. (vo) and get an offer on your house. selling your home to opendoor is so easy, you can do it during half time. get started at opendoor.com is your startup disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to apply now. entries closing soon. >> welcome back to squawk box.

this sunday kansas city chiefs they're going to be taking on the philadelphia eagles in the super bowl. the game is going to be featuring a new ad from the foundation to combat anti-semitism, featuring tom brady and snoop dogg. >> i hate you because. >> we're from. >> different neighborhoods. >> i hate you because you look different. >> i hate you because i don't understand you. >> i hate you because. people i know hate you. >> i hate you because i think you hate me. >> because i. >> need someone. >> to blame. >> because you talk different. because you act different. because you're just different. >> man. >> i hate that things are so bad that. >> we have to do a commercial. >> about it. >> me too. >> i find that chilling and amazing in so many ways right now. the man who created it all, robert kraft, is here. kraft group ceo, of course, chairman and owner of the new england patriots. and there is something chilling about watching that ad, and it is super powerful. bob,

we've had you on the broadcast before. you've you've run ads during the super bowl, but i'm not sure as powerful as this one. >> well thank you. >> i agree with you. well, we're trying. >> to get different messages, but we have two people. >> here who most people. >> wouldn't think they have a. >> lot in common given the backgrounds. >> and the. >> lifestyles. >> and yet. they're 100%. >> together on this issue. and when i called each of them. >> to do. >> it. they agreed. >> right away. >> because they. >> feel like i do, that there's something going on in the country. that is just not good for america. and i remember snoop saying, hey brother, i'm in 100%. anything that helps us

to bring back more love in the country. >> so where was where did the idea originally come from for those two specifically to do this? >> well, we were trying, you know, last year in the super bowl, we had doctor clarence jones, who spoke. about martin luther king and how the greatest enemy was silence. when someone sees something inappropriate, you speak out. i can tell you. one of the most disturbing things to me. and i've the lord has been privileged to give me a great life. i've never seen hate like it is now in this country, and we want people to reevaluate why they hate. and there's no reason to hate, you know, because of how people worship god. we hate people because of

that, because of their religion. so we thought at the greatest weekend for bringing people together in america. it was great to bring two people of the different backgrounds, and we have a little team that we thought about, and we were able to bring them together after i spoke to them and then our creative agency finalized the act. and it was always those two, and they said, they said yes immediately. what, what? and i assume i hope they're doing this for free. >> they are. no. yes. no, they were terrific. they never, never once did they say, you know, do we get think about that. each two people like this who have a profile that really is unusual

in their different communities. and for america today, and they represent something different. they feel this issue and each of them told me afterwards they were really inspired, and they thanked me for putting them together in this situation so they could bring this message to the american people. think about it. we're born with empathy and love. what? why do we hate people? >> i so. >> bob, help us get to the bottom of that which i wanted because you've started you started this a while ago. and the thing that actually saddens me is it does feel like it's gotten worse over time, not better. what do you think is happening? >> well, i personally believe it's a social media that was supposed to connect people, but i think drives people apart. and there's so much falsehoods and lies, and i hope there's a way

we can control the accuracy of messages that come out through that medium. but it is what it is. meanwhile, think about this country. i mean, i think for myself, the opportunities it's given me to live my dreams. and i just want everyone to have that. and i'm asking them, we're asking people our foundation to reevaluate why they hate people or why they hate any, any part of what people do. and if it's morally wrong or of criminal background, i understand. but otherwise it's inappropriate in my opinion. and that's why back in 2019, after charlottesville and the tree of life, we started this foundation because i saw signs of what was going on in

germany in the 30s going on here, and i didn't want the 40s and that that those of us who were privileged to have benefited by a way of life and america, i think, have to stand up and push back against this hate. >> hey, bob, i don't know if this is a fun topic or less fun topic. i want to know a who you're picking for the weekend, but i also want to know these tariffs because we were talking about paper and it got me thinking about cardboard coming out of canada. is that going to impact you? >> it's corrugated paper is brown paper. and we're we're doing just fine. we're in over 100 countries in the world and we're exporting and our business is very solid. and we deal in those countries and export. we export from africa to asia and

from canada into the us, as well as us into canada. so we're balanced and we we'll just watch what happens. >> hey, bob, i have another question for you. first of all, the ads. great. thank you for putting it together. i know basketball is not i know basketball is not your sport. but this trade luka doncic over the weekend to the lakers anthony davis going to the mavs i mean that had everybody i know buzzing about it. and i don't understand exactly what happened to why i think dallas thought luka was going to be with them forever. dallas fans who even have a luka holiday in july and held a wake for him yesterday. i was hoping you could understand it and maybe explain it to us. from the position of an owner trying to figure out how these things work, did it make sense to you? >> well, i don't sit in judgment

of anything. i don't have all the facts. but in a case like that, there are things going on. you know, you got agents involved, you got family members involved. you're. i know for us, we're always trying to strategically make the decisions that make us good year in and year out. we had a pretty good run. we had a couple of tough years, but we've done things that are hard that allow us to hopefully do well. i think there's things going on here that we don't know, and i think each team did what they think is in their best interest. one thing you got to learn is don't get lost in the headlines, because usually there's depth behind it. there could be some kind of chronic physical situation. i just think we don't

have all the information and no one's doing something like this without good reason. >> bob, before you go, you got a pick for this weekend. >> well, just. >> you're allowed to have a pick for this weekend. >> a good close game in the fourth quarter. i wish i was wise enough. we had the privilege to go ten times in our first 25 years, so i'm spoiled and i need to find a way to help our team get back into this game. it's one of the greatest experiences and all of america pays attention. and that's why the message of our foundation was so important for us to do this at this time. >> bob, it's great to see you. >> in the fourth quarter. >> we'll be watching and we'll be watching for that ad and its impact on hopefully the country.

thank you. appreciate it very, very much. >> thank you both. >> appreciate it. >> you bet. we come back. the impact of the tariff trade war on multinationals. we're going to talk about it. do not go anywhere. got a market sell off anywhere. got a market sell off this (man 1) we're standing up for our right to be lazy. (woman 1) by sitting down. (man 2) and reclining back. (man 3) 'cause we work hard and want to relax harder. (man 4) we, the lazy, are taking back lazy... (woman 2) ...on our la-z-boy furniture. (vo) la-z-boy. long live the lazy. >> a strong buy today. >> yet why. >> are so many legendary. >> investors quietly ignoring that advice and instead. >> selling the. >> stock hand over fist? >> every billionaire. >> on your screen has recently sold nvidia. some have offloaded millions of shares, in fact. hedge funds. >> are quietly. >> selling all of their tech stocks at the fastest rate we've seen. since 2016. my name is mark chaikin. during my 50 years

on wall street, i helped build three indexes for the nasdaq. that means i recognize these signals from the tech market and exactly what they mean for you and your money. i explain everything in my new free market briefing, including the truth about what's going on with nvidia today and the specific stock i recommend you buy instead. simply visit the website below to get the details 100% free. >> these mushrooms make you feel better. they increase. >> focus and energy while keeping. >> you calm and. >> stress free. plus, they. >> cut down on bloat. >> and heal your gut. >> wait. >> and they taste good. >> someone should make a coffee out of this stuff. rise. feel better? >> for the fourth consecutive year. interactive brokers is one of the fastest growing prime brokers and is now number five in preqin's ranking of top prime

brokers. interactive brokers serves both organizations and individual investors to get better results, get a better platform. the best informed investors choose interactive brokers. >> that build. >> the pool yourself. >> what could go wrong? >> some things are better left to a. >> professional. >> like when it comes to finding financial advisors. >> so take. >> the free quiz. >> then you'll be. >> matched with up to three vetted fiduciary financial advisors@smartasset.com. >> at the realreal. >> we authenticate everything. >> we check the date code. >> examine the stitching clue, the leather and. >> the. >> brand stamp. we even smell it so you know. >> it's real. >> and we drop 10,000 new rifles. >> every day. >> which. >> means you.

>> can shop. >> all this. hola. como estas, mademoiselle? >> hey, girl. hey. from right. >> here, get up to 90% off gucci, louis vuitton. >> prada, cartier. >> rolex and more. the realreal authenticated luxury resale. >> shop now with. >> code tr 20. >> for 20% off. >> terms apply. >> no, no, i'm not going to say we may have short term some little pain and people understand that. but long term the united states has been ripped off by virtually every country in the world. we have deficits with almost every country, not every country, but almost. and we're going to change it. it's been unfair. >> canada and mexico plan to retaliate against president trump's tariffs, potentially impacting many multinational companies in the united states. seema mody is here. she's going to join us with some of those names right now. seema. good morning. >> becky. >> good morning. >> just hours after. >> president trump unveiled tariffs on our largest trading partner, canada's prime minister vowing retaliation with 25%.

>> levy on. >> over $100 billion. >> worth of u.s. >> goods targeting. >> imports that are. >> manufactured in key. republican states. as you've. >> been discussing this. >> morning. >> like bourbon from. >> kentucky. orange juice from florida. >> trudeau also. >> encouraging his citizens. >> to choose canadian over. american brands, putting companies like. >> brown-forman. >> budweiser, j.m. smucker in focus. while power was. >> not included. >> in. >> this round. >> canada's trade. >> minister mary ng. >> recently telling. us that it could be on the table. >> i don't actually think. >> americans want us to not be selling electricity. >> oil and. >> gas to america because, you. >> know, i'm here in new york. >> the lights on. >> broadway. >> lots of it. >> is canadian electricity. >> while canada's energy was hit with. >> a lower. >> 10% tariff, rbc capital says. >> that could still. >> lead to mildly higher gas prices in the u.s. analysts say companies like. canadian pacific that. runs tracks from canada through the u.s. to. >> mexico. >> could be hit with elevated costs, as.

>> well as the. >> globally diversified. >> industrials that are. >> moving this morning. >> keybanc pointing. >> to tariffs, carrier. >> and trane. >> technologies, though caterpillar. >> and eaton. >> both making. >> the. >> point on their earnings. >> calls last week that they've been. >> making changes. >> to their. >> sourcing strategy. >> since trade tensions. >> picked up in. >> 2018 and. >> are well equipped to deal with tariffs. >> those stocks are. >> down right now. >> agriculture players like deere. and agco, also seen by the street as vulnerable. >> jefferies noting that. >> trump did increase. >> direct payments to farmers during. >> the last trade war. >> to cushion the blow. >> we'll see if that. >> happens again. >> and when. >> it comes to. >> retail, analyst at wedbush write that. >> mexico tariffs will. >> most impact. >> best buy given its nearly 1010 to. >> 15%. >> sales exposure. >> to that country. >> those tariffs are. >> expected to kick in tonight becky. >> okay. seema thank you very much. joining us right now to talk more about this is white house national economic council director kevin hassett. and kevin thank you for being with us this morning. got a lot of questions. and hoping you can give us a little insight into

what's happening. first of all, are there talks taking place behind the scenes that could potentially stop these tariffs before they go in? or is it your understanding that these will take effect at midnight tonight? >> there have been. >> a heck. >> of a lot. >> of talks. >> over the weekend. >> you know, i've been. >> in the white house for most of the weekend, and the thing i can say is that i think it's. >> totally, 100% being mis covered this story. what you need to do is go back and read the executive order where president trump was absolutely, 100% clear that this is not a trade war. this is a drug war. there are perhaps 100,000 people. >> last year that. >> died of fentanyl, and the fentanyl is coming in. >> across the mexican and. >> canadian borders, 80, 90. 95% of mexicans. >> want the drug war to end. and the same is. >> true in canada. >> and i can. >> tell you, i spent a lot. >> of time in canada. >> i was up in alberta and, you know, walking on the rivers and fishing. last summer. and i can tell you that there are places in big cities in canada that look kind. >> of like san. >> francisco, because the drug war is being.

>> lost by. this government in canada. >> as well. the good news is that in our conversations. >> over the weekend. >> one of the things we've. >> noticed is that the mexicans are very, very serious. >> about doing what president trump. said in the executive order, and that is getting more aggressive, much, much more. >> aggressive about. >> the drug war. but the canadians appear. >> to have misunderstood. >> the plain language of the executive. >> order, and they're interpreting it as a. trade war. and i think. >> that that's probably. consistent with the policies that we've seen. >> from this failed government. >> in the past, where they've let their own drug problem get out of control. and instead of addressing the drug problem, they want to blame the us and perhaps get some political benefit out of saying that trump's tried to create a trade war. why would he do that with. canada and mexico? this is 100% about a drug war. it's 100% about fentanyl. and more people died last year than died in the vietnam war. and president trump. has vowed to americans. >> that he's going to make that stop. >> all right, kevin, this is really interesting. just the idea that maybe there's something that could be

negotiated. let me just make sure that i'm understanding this correctly from you. there's something that could be negotiated in the next 24 hours, in the next several days. that would mean the tariffs would either not be put on or would come back if it were to satisfy president trump's concerns about what's happening at the border and the protections there that are taking this. i mean, we're calling it a trade war because canada has already said that they're going to retaliate across the board with, you know, tariffs on alcohol, coffee, clothing and shoes, furniture, household appliances, whiskeys, fruit from florida, all of these issues. you're saying that this is really more of a negotiation to try and say, no, we want more focus on the border. and if you give that to us, these go away. >> this you. >> know, this. >> is not what i'm saying. >> people need to read the executive order. president trump. >> has. >> said this is about. >> the fentanyl crisis, right? no. but so i. >> don't know how. >> somebody reads the executive

order if you're in canada. >> and then. >> comes back and says, oh, this is we're going to start a trade war. we're saying we're really, really serious about going after fentanyl, and president trump means it. and so there's all this fentanyl shipping across the borders there in the past have been caravans of people parading across our border carrying drugs and other things. and the response of our neighbors has not been, hey, we're going to help you stop this problem. it's go ahead and build a wall. so, so imagine, becky, if i had like all. >> this stuff. >> going on. >> in my house next. >> to yours and all this stuff was leaking. >> into your. >> property, and then you say, kevin, you got to stop all that crime in your place. and i'm like, hey, you know what, becky? build a wall. that's disrespectful. and, you know, and this. >> is the this is the. >> attitude the president has towards what's going on right now. he wants. them to be respectful of the united states and help solve the problem rather. >> than. feed it. >> so this is really. >> a. >> lot of progress. >> for the mexicans. >> this is really just the opening. okay. so mexico is really where the biggest problem for fentanyl is. we have one of our reporters earlier this morning. i haven't seen these figures myself say that

something like only 40 pounds of fentanyl was was found at the at the canadian border versus a huge, much huger position down in the south part of this border. this is a way to get people to the table to say, we are going to attack this and work with you. and that would call off all of these tariffs that are going to be put in place. >> president trump will. will decide what he's going to call off and what he's not. but he wants. >> everybody at the table. he cure. there's not a clear set of standards that say if you do x, y, and z, this won't happen. >> well. >> they clearly haven't done it in the past. and, you know, the amount of organized crime in. >> the fentanyl space in canada. >> is also very disturbing. and so. >> it's not just a measure. >> of like 40 pounds here or there. the fact is, the president has said a very clear guideline for people to work with him collaboratively. these are some of our best trading partners and our best. >> friends to. >> solve this incredible. problem that has. >> been spinning. >> out of control, you know, and they've. >> not really been addressing. and again. >> i in. >> edmonton last summer, i walked out of my hotel and they

had an ambulance there helping somebody. >> who had. >> od'd sadly on fentanyl. and then as i'm walking to my restaurant. >> two people get in. >> a. fight with the cops. over drugs right there just in downtown edmonton. and this is just by one day when i'm staying there. >> and the fact that canada is like san francisco and it's spreading to the us. >> and it needs to stop. and that's. >> what the canadian people want. and it's what the american people want, too. kevin, i won't dissuade you of your views or perspectives. i think the question mark on all of this is, you know, did you need to do you need to implement the tariffs to gain leverage in these negotiations? were the threat of tariffs enough or not? you know, i'm reading the wall street journal, which historically has come out on on the side of republicans and conservatives. they call it the dumbest, the dumbest trade war. and there's a question of how long. again, to becky's question, this goes on, you would imagine you'd have more leverage, frankly, the longer it goes on. but there's

the flip side, which is how palatable it is for the american public to take whatever pain is inflicted in the short term as well. the thing i would say, say, aaron, and i hope joe is feeling better, by the way, i miss him today. the thing that i would say is that in the. >> end. what president. >> trump has not only created a lot of leverage for the united. >> states in this negotiation, but he's given the. >> the politicians in canada and. mexico an enormous amount of leverage. because the people of canada, they don't they don't want to have a drug war that they lose. and the people of mexico don't either. and now, because president trump has raised the level and made it clear that this is the number one policy issue for the united states this weekend, then all people in. canada and mexico will. >> support actions. >> by those. >> politicians to get ahead of the. >> curve on the drug war. >> and so i think he's doing the. >> politicians a favor. >> kevin, if you if you were listening to any of the nhl games this weekend in canada,

they were booing the star-spangled banner. i mean, we are losing a lot of goodwill. and i just wonder, is this negotiation one that is simply on the drug trade when you have president trump also saying that europe is next? what where does it come down with europe? this seems like this is something that's being used more broadly. i understand it to negotiate better positions. for americans, it seems like it is much more than a drug war. >> this matter this weekend. is 100% about the drug war. and i think the outcome is likely to be very positive for americans, canadians. >> and mexicans because. >> president trump is forcing politicians throughout. >> the continent to. >> take this matter seriously. and they'll probably be a lot of cheers from canadians. as president trump meets the stanley. >> cup champions. >> today. >> too, as well. >> kevin, can you react to this? so scott bessent, who's now the treasury secretary, wrote a letter january 31st, 2024 to his

own investors. this is chi square capital management, and he wrote the following tariffs are inflationary. this is our treasury secretary who wrote this not at the time though. which end would strengthen the dollar? hardly a good starting point for a us industrial renaissance. so he's saying this is hardly a good starting point for a us industrial renaissance, as our treasury secretary is saying. this goes on to say the tariff gun will always be loaded and on the table, but rarely discharged. in this case it was discharged. can you just react to what he was saying? you know, i've not read what scott was saying. i've certainly talked about tariffs with him quite a bit over the years and months. i've known scott for many years. and the thing is that that president trump's agenda is a massive. massive supply side agenda that's going to include big tax cuts. >> big. >> deregulation, you know, fairer trade policy drill, baby drill. and the idea that if you

were to look at like the worst model outcome of tariffs by themselves. >> and say that president. >> trump's going to create inflation is basically means that, you know, you're going to get an f from me in my intro economics class. >> so the fact is, you. >> need to look at all the policies together. and, you know, frankly, if you do, i. >> think this is going to be one of the biggest supply. >> side positive shocks that we've ever seen. and finally, i just want to say. >> going back to canada. >> if, you know, if i'm a market guy, as scott was, you know, i'd be i'd be getting. bullish on canada and mexico because the political pressure on these people who've been making really, really bad choices is going to be very, very great. and the idea. >> that a. >> renaissance like you're seeing in the us could happen throughout the world, i think is really, really. bullish for global economies. >> kevin. i mean, i know you well. we've known each other for a long time, for sure. it doesn't sound to me. yeah, it doesn't sound to me like you think these tariffs are either going to go into effect or if they do that they will last for long. i mean, you know far better than we do. what kind of negotiations are taking place behind the scenes. and it sounds like you think mexico is more

willing to play and more willing to find solutions to these things than you think. canada is based on what you've seen so far. >> you know, so far. >> president trump. >> is going to decide all. >> of this. you know. >> you know, at a time that he chooses. but there are positive conversations that have happened over the weekend, and there are positive conversations that are going to happen between the leaders of these countries. you know, over the next hours. and president trump will then see what people have to. >> offer and then. >> make the call. but i can tell you that everybody's. >> been very. >> impressed by the. seriousness of the. >> mexicans. >> the fact that they read the executive order and understood it, whereas. >> the canadians. >> like, either didn't read it or misrepresenting it to the canadian people for political gain rather than trying to solve canada's problems. and if you wonder why canada has so many problems right now, it's because they have politicians. >> like that. >> i mean, i would ask you the economic implications. steve liesman is here. he did a flash survey asking a bunch of economists what they saw. i think every one of them in that

flash survey said that if these tariffs did go into place, they expected gdp to go down and inflation to go up. did you all run your own economic potential impact at the administration? >> you know, we're working on getting the final numbers for the president's budget as we speak. but i can tell you that the growth that we saw in president trump's first term pre-covid is looking like it's going to be a low number compared to what we get when we run all of president policies. >> through the president's budget. >> and again, i would ask people to do this. and i've been very public about this, you know, on your show last fall that if you want to analyze the policy. effect of the trump administration, you need to look at all. >> of them. >> and not just take like a couple of papers that say that tariffs are bad and say, that's the whole thing that's. >> going to happen. >> but if we model the whole thing that we're definitely getting growth. that, as president said, looks like a golden. >> age to us. and as you. >> remember, becky, that when we did this, we had a huge report

where for every single policy we went through, the academic literature had quantified why we thought we're going to get, you know, half a percent from here and three quarters from there and so on. and we're doing. >> that again. >> we're doing. >> that again. >> i guess my question would be is it's much broader than one simple economic policy. i think you're right. they all have to be taken together. but i think it's more than just economic policy that we're talking about here, too. this is national security. this is defense. and i wonder, are there experts in in those arenas who are in the room when these negotiations and discussions are. >> taking place? there are absolutely there are. and again, if you go back and think about the 100,000 people whose lives were lost because of fentanyl last year, and then think about it, you know, in terms of the way that economies value gains and losses, you know, in government cost benefit analysis, we say that each life costs us about. $10 million. so think about we're talking $1 trillion loss every year because of fentanyl. and so if we take

some costs to fix. >> that then of. >> course it's going to pass any cost benefit tests and any, you know, test of humanity as well. the president is serious about solving this problem, and he's going to do it. >> he's going to do it. >> kevin, the president can look to the drug war and raise tariffs as a result, because tariffs are really the province of congress to put on. if there's a national emergency like like this, the president can say that he's going to raise tariffs as a result when he says the european union is next. what what is the reasoning? what is the emergency there that would give him the authority to do that? >> well. >> you know, we'll. >> see what happens when we analyze it. >> the president has. >> like broad, long run views about how tariffs could be part of a of a smart tax reform. and then he's got near-term things. that he's tried to solve like the fentanyl crisis. and the fact is. that it's a very. very serious problem. it is an emergency when more people die last year than died during the entire vietnam war. and that's why the president has put this

right at the top of the agenda, just as he's taking office. >> and i guess one thing we've been trying to figure out, maybe you have more clarity on this. i'm sure you understand it better than i do. the president has has said that he wants to do this to fight the drug war, meaning that if we can handle that, then the tariffs won't be put in place. but we've also talked to other people in the administration, including peter navarro, who pointed out that, look, we're planning on raising money from some of these tariffs, that that would be part of our our way of balancing the budget. if it's a negotiation and we get what we want on that front and the tariffs aren't there, how do you fill the hole that would then be left for the money we thought we were going to raise. >> right again for this matter, for this emergency order. it's about drugs and it's about the drug war. it's not about a trade war. and if in the future, as part of an overall reshaping of the tax code, the president uses tariffs and big supply side tax

cuts to create a. >> golden age, then. >> he'll do that. he's got to study that and let us know his final decision on that. as the monks come in over the next few months. but but right now this issue is 100% about the drug war, not about the trade war. >> okay, kevin, want to thank you very much for being with us. see you again. it's great to see you, too. and this does. >> i. >> think, from the white house lawn, know. >> from the white house lawn. and i think that matters because i think this is messaging that is being sent out. i think this is clearly. part of that negotiation, too. kevin, we appreciate your time. >> thanks, mick. >> let's get over to mike santoli. he's standing by at the nyse. and mike we have seen some pretty decent market moves around the potential implication of these tariffs. >> yeah for sure becky. >> so some sharp somewhat predictable. but at this. >> point you might. >> say measured. >> moves at. >> the index. >> level at. >> least so far. in fact a little. >> bit less. >> dramatic than it was last night. so it's looking like. >> in. >> the. s&p 500.

>> index fund down about. >> a percent and a. >> half to start. >> where that would put it is a level. >> that the s&p was at about a couple of. >> weeks ago. we actually. >> spent a. >> lot of time around that, you know, 59, 50 area. that's the index equivalent there. >> and you can just. >> sort of, you know, draw the. >> shelf there. >> we've been. >> chopping around. >> this area. >> the unanswered. >> questions include, what's. >> the treasury yield response going to. >> be over time, whether in fact. >> those somewhat defensive seeming. >> you know, big growth companies in the nasdaq maybe catch a bid that would mitigate the index effect. or is. >> it going. to be an opportunity. >> to just. >> take down risk. >> across the board? >> the day will. >> tell us. some of that. >> take a look. speaking of risk, appetite. gauges bitcoin versus gold. >> so far in this. very young year. and of course you see bitcoin just kind of drop off. >> gold naturally is sort of seen as an equivalent is bitcoin. digital gold is. >> gold analog bitcoin. >> whatever it is i think part of this. >> is that bitcoin. and crypto trade 24. >> over seven and. >> they're global assets. >> and there's a lot of. >> gains built up in them.

>> so if there's a lot. >> of concern. >> over a weekend when you're going to have. >> some kind of event, that's. >> going to create a little bit of a of. >> a risk gut check, it's going. >> to hit bitcoin and crypto most. >> and actually. >> even bitcoin has firmed up a little bit in the last little while. >> now. >> retail traders have been a huge part of the game this year so far. one of the big reasons that the market has been able to be up 2.5% in january was. >> retail flow much. >> more aggressive. than institutions? take a look here. robinhood shares. >> as well as palantir. palantir is one of the. >> favorites of retail traders. >> right now. this is a one. >> year. >> chart. >> so you can see just exactly how steep the ascent has been. there's been. >> this. >> tireless bid in there. does that go away? does that. stick with us? >> is that raising. >> fragility risk. >> in the market. >> or is it. >> actually acting as support? a lot. >> of. >> this. >> stuff i think people are trying to debate right now. as you start. >> to see. >> i think robinhood has indicated lower. palantir pretty firm. >> at this point, guys. >> hey, mike, i don't know. i've been trying to assess listening to kevin hassett right just now

from the nsc, an economic advisor, talking about how this is a drug war, not a trade war. that's the messaging from the white house. it sounds like this is a negotiation. i am more convinced than ever that this is not either not going to happen or not be long lasting tariffs based on what i just heard from the white house. >> or at. >> least that's. >> certainly we have to be. >> open to that possibility that this is an opening salvo. >> the market seems to be treating. >> it that way. >> for what it's worth. i mean, i don't think. >> if people felt. >> as if it was going to be this. >> level of tariffs indefinitely, that you'd be. >> down only. >> a percent and a half. and things. >> would be relatively normal. >> i agree with you. now, of course. >> i think the. >> white. >> house. >> because they have to, you know, do these moves with. emergency powers. you have to cite the immediate drug risk. so, you know, i. >> think there's. >> a lot of mixed. >> messaging out there. >> there is. and we will see how the market susses that out and how it reacts as we get closer to the opening bell. mike. thank you. >> yep. >> thank you. when we come back, legendary investor paul tudor jones is going to join us

alongside the ceo of hewlett packard enterprise on the new just 100 company rankings. stay tuned. you're watching squawk tuned. you're watching squawk box and help us retire. it's a simple ask of our elected leaders. but the tax treatment we rely on to grow our 401(k)s, iras, and other retirement plans could be on the chopping block in congress. any policymaker who makes it harder to save for retirement is standing against the financial well-being of 120 million americans. it's time to prioritize our retirement savings. learn more at help us retire dot org. help us retire is sponsored by the investment company institute, representing asset managers serving individual investors. business shape the future. >> or be. >> shaped by it? how will we capture the imagination of tomorrow's consumers? overcome operational constraints to focus on future growth. and harness

technology and ai to power entire. industries? with the full spectrum of services across sectors. >> we're. >> all in to shape the future with confidence. >> with the fundrise flagship fund, you can invest in the same kind of real. >> estate. >> investments that empower the world's largest portfolios for decades to start growing your decades to start growing your real e (shower water runs) (♪♪) (♪♪) public companies ranked on issues of workplace ethical leadership and environmental responsibility. america's most just companies revealed who's in the do. you

first. >> time consignors. >> get. $100 extra. >> terms apply. >> welcome back to squawk box. this morning, just capitol out

with its list of america's most just companies. cnbc is just capitals media partner. joining us right now in an exclusive interview, legendary investor paul tudor jones, co-founder and chairman of just capital. he created all of this. he's also the founder and chief investment officer of tudor investments, of course, also antonio neri. he's the ceo of hewlett packard enterprise. it is ranked number one in the just 100 for the second year in a row. and i've got about a million questions for all of you, including tariffs. given the news of the moment right here, paul. but i just want to i want to start with this list and i want to start with actually just a very 30 zero zero zero foot question, which is it feels like the world has shifted even in the past couple of months, politically and otherwise, around so many of the issues. this whole idea of stakeholder capitalism, esg, dei, all of that seems to have been thrown out. maybe the baby has been thrown out with the bathwater, i don't know, but i'm so curious, given that your work is based on polling, based on

what the american public actually wants, and you also just had an election, and how you think about all of this? >> well, first, let me. >> just say it's ironic. >> that we're here. >> on the day to celebrate the. >> best of american. >> business, on the same. >> day that we're also. tariffing the hell out of them. >> but it is what it is. and what i would say is, is that the election result. >> that we saw. >> and president trump taking office again, i think is completely congruent with the polling that we saw this year for what constitutes just behavior. the number one issue, and it is year after year after year, is pays a. >> fair and living wage. >> it's all. >> about the. >> american worker. and president trump was elected to office because this. >> country felt. >> like the middle of. >> middle america. >> those that were those that sit there and work for all these

companies weren't getting. a fair shake. so i think this is exactly synchronous with what we see in our polling. and it's so funny when you mention dei, esg. >> all those terms. >> i can tell you at a, at a, at a macro. >> level. >> just the just polling that we do is about usa. and i know it sounds corny, but but it's a fact. it it's about what the american public thinks is the best behavior for corporations to do on behalf of all americans and all stakeholders, and that's workers and communities and customers and shareholders and the planet. so i think if anything, if you're if you're a maga person and you've got to 100% respect what our polling shows, because all we're doing is asking the american public what they think. it's as maga as there is anything.

>> before we get to antonio, let me just ask you this about performance, because one of the questions is how correlated the outcome of the just 100 list is to performance and maybe importantly, outperformance. how has it changed over the years? >> yeah. so since our inception about seven years ago, the just 500 has outperformed the russell by about 10%. the just 100 has outperformed the russell by about 40%. the just 100 outperformed the s&p by just a little bit. but the point is aligning yourselves with what the american public thinks is great for business is also great for your shareholders and your share prices and your business in general. and there's nobody that embodies that better than that gentleman, antonio neri, who he really is, the classic american dream story. he started

as an intern at hewlett packard enterprises and worked his way to ceo. there's no better horatio alger story than him, and trust me, we would all want our kids to work at hpe given the things that he's done. >> well, that's what i was going to ask. thank you for that. paul. antonio, it's nice to see you this morning. you've now been at the top of this list two years in a row. and i'm curious what you think you're doing differently than other than other companies and frankly, how much you think about the various metrics with which you have succeeded on this list. and by the way, i should say your stock did outperform in a very big way this past year. on a longer term basis. it's a little bit more of a complicated story. but when you look at these these metrics with which you've you've come atop this list, how much are you focused on those things individually or are you focused on something else. and it just so happens that you've come out on top on the other metrics as well. >> yeah. well good morning

andrew, and good morning, paul. nice to see you again. and thank you for the amazing honor and recognition for the second year in a row. it's an honor that we take very seriously. and our 60,000 employees are cheating today for again, this amazing award that we take very, very seriously. to your point, andrew, you know, when i became ceo, believe it or not, seven years ago, two days ago, you know, one of the key priorities i had was culture. culture is everything in my mind. in addition to focus to our customers and our innovation. and now the culture of the center is our employees. so how do we create an environment where everybody can come to work and thrive to create business value that ultimately is good for shareholders and for the communities we operate. and there we put a lot of emphasis about our values, our benefits, and our ability to attract and retain and develop that talent and pay equally. and so i'm very proud of the work we as an

organization have done for the past seven years, and we see that in our results. it's not just the voice of the workforce survey that we do every year. we are this company now performed consistently in the mid 80s, where a lower attrition rate they ever had, including the top attrition rate, which is very low single digits. but it's the ability to really attract that talent that continues to fuel that innovation to solve some of these bigger societal challenges we all face, you know, ensure that these technologies, like ai are inclusive, that ultimately, you know, we design systems that consume less energy. and then think about the circular economy that we drive. but in the end, in the end, it's all about those employees that come to work every day. >> antonio. but i think there's a lot of ceos who are trying to understand. it's really almost like a mental framework question, which is, are you focused on profits and driving growth and all of those kinds of

things? and it just so happens the way you run your company and the culture you've created has, has created these, these opportunities and benefits across the way? or are you focused in a very specific way on the culture and these issues, and how much focus and mindshare are you focused on those things versus what some people might think of as sort of the old classic way of running a business just trying to grow, grow, grow. i ask because i think it's a mental model that people are trying to understand. >> yeah. and the two are as the latter, obviously, and the two are correlated. right. so you can't perform unless you have the best talent and you can't deliver value to shareholders unless you have the best human capital strategy. and at the core of that strategy, again, our employees. and so you have to work together. you can't take it as an afterthought. ultimately, our journey in the last seven years to reinvent the company is to focus on the areas where we can play and win, and

the capabilities that we need are both on the innovation side and the human capital side. and in order to focus on that human capital side, you've got to create a culture that people can see themselves to come to work every day. so i don't see andrew. the two separated. i think one and the same. that's why we know we focus on those two things. we talk about it before, you know, and, you know, everybody goes through a journey in their life, both on the personal and the professional side. so one of the basic things we have done, in addition to focus on pay and pay equity, is, for example, you know, offering 26 weeks pay leave when you have a family event, like having a child. and those are the things that resonate. but ultimately we can measure the result in our in in our performance. you know, when you think about carbon footprint, we now have requirements from customers that they ask us, what are you doing to reduce the carbon footprint in your systems? or what are you doing to reduce the human slavery. and so these are the

things that we focus across our business, and we know it's good for business, right. >> hey, paul, while while we're here and i know we started by just mentioning tariffs, we have a market sell off that's literally happening as we're speaking. and i'd be remiss to not get your perspective on what you think is happening and what you think will happen as you try to measure and game out. this scenario. >> yeah. >> i'm happy to answer that. i would like just to say one last thing with regard to what hpe does. hpe ranks, i want to say ahead of 97% of the russell 1000 on paying a fair and living wage. our number one metric, 40% of our metrics are around worker compensation, worker treatment, wellness, etc. 50% of the top 1000 companies in america don't pay a living wage to their

customers. if there was one. one thing that we take away from our polling year after year after year, there's nothing more important than that economic issue. and of course, i think that's why president trump was reelected, because you have to solve that. you have to solve higher incomes for middle america and for working, working people, men and women. you're going to have to solve that. and so that's hopefully what our rankings do is that we highlight the companies where they are in their sectors, where they are against the rest of the world. certainly the top 1000 companies where they are and how they need to improve on taking care of their workers. that's the bottom line of all this. and that's, i think, the bottom line of the last political election to just and i want to just add one other comment on our polling, which i found fascinating, which was we had two metrics that moved up

substantially in our polling. they were very related ethics, ethical leadership moved up five spots to number two. the second most important determinant by the american public, and then honest and transparent communication moved up seven slots to number four. so the number in two four most important things is judged by the american public are ethical leadership, honest communication. and i think that's extraordinarily telling for our political leadership today in that americans just want to be told the truth. they've seen, i think, from both parties. they've seen so many things that they know with their own eyes aren't true and they're exhausted by it. so i think that's the most every year we see something new in the polling in covid security, safety,

company safety and security was the number was jumped way through the roof because everyone was so afraid to go to work. so it's funny how the polling changes year by year, depending upon what the environment is. and there's a big lesson that there's a huge thirst for honesty and ethics in business today. >> fair enough paul, given that i know so many people are waking up this morning and they're turning on their tv and they're thinking about tariffs and trying to understand what's happening, as i said, there's a market sell off literally happening as we're speaking. and so i just i want to get there with you just just to understand what's going on, even inside your own firm, as you're thinking about it this morning. >> well. >> there's so many moving parts and there's so many things that are crosscurrents. the one thing that i would say is this is a completely, totally different landscape than trump 1.0. so if i go back to january of 2017 and

i look at where we were and the three big asset classes and where we are today, wow. it's a much, much shakier ground that we're treading on. for instance, let's take fixed income. in 2017, we were asking the investing public to pick up $1.2 trillion worth of duration. that was how much we were issuing at the treasury this year. that number is $2.7 trillion of duration. so that's just a it's an all time record. so that's a completely different landscape in terms of the bond market. if i go to the foreign exchange market in 2017, there was $8 trillion that foreigners had invested in the united states, more net $8 trillion that they own more of us than we own of

them. that was 40% of gdp. fast forward to today. that number is 23 trillion. foreigners own $23 trillion more of us equities and debt and real estate today versus 8 in 2017. that's 80% of gdp, twice what it was. and again, it's a good problem because it shows that american exceptionalism has drawn that capital in. but we have to be careful. and then finally, if i look at the stock market, 2000 january of 2017, kind of average pes were around 19. today they're 25. we're a full 30% higher than we were in 2019. we could have a 30% correction in the stock market and just be back to slightly overvalued. so trump 2.0. i think trump being

trump, i don't know if it will play as well as it did in 1.0 because there's no room for mistakes. and look, he's my president now. i pray he makes all the right decisions because we are precariously perched from a macro standpoint, i don't think we've ever had as many things that are connected and circular and could go wrong. so it's going to take a maestro to pull this off in a way that kind of preserves where we are now and the major economic assets, excuse me, the major asset classes. >> it is a longer conversation. we hope to continue it with you, paul and antonio. antonio, congratulations. thank you. just 100 list out today. you can check it out online. and we appreciate both of you being with us. >> thank you so much. thank you. congratulations, antonio. >> thank you paul much appreciate it.

>> when we come back we're going to break down president trump's tariff strategy, what we know of it so far. and also talk about how the levies could affect one of america's tech giants. right now, though, as we head to a break, a market headline for you, we are tracking the reaction from key firms and strategists to president trump's tariffs and the new administration in washington. former star jp morgan strategist marko kolanovic telling a bloomberg podcast that he sees the s&p 500 retreating into the 5000 this year with potential turmoil from the new political climate. taking the index into the 4000. we shall see. right now, the s&p is above 6000, 6040. we'll keep an eye on this. it is indicated to open down close to 100 points. we'll have more wall street reaction after a quick break. stay tuned. you're watching squawk box and you're watching squawk box and this ♪♪ well would you look at that?

jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! unbelievable. stop waiting. start investing. e*trade ® from morgan stanley. [ car engine revving ] >> with 19 hotel brands at ihg

hotels and resorts. you can guest how you guest unplug for the day or plunge into a long weekend at a holiday inn. savor the moment or savor the details at a crowne plaza hotel. stick to the agenda or experience something unexpected at kimpton hotels. choose from 19 ihg hotel brands and earn points for free nights with ihg one rewards. >> inside wealth an exclusive newsletter for a select audience inside family offices. how the wealthy become ultra wealthy robert frank's high net worth robert frank's high net worth pe dad: hey boss. you okay?

son: i said i'm fine. ♪ dad: you can talk to me. son: it's been really, really hard for me. >> the details. >> physicians mutual, physicians mutual. >> all right. welcome back everybody. now to some additional tariff reaction from wall street. the economics team from goldman sachs, led by jan hatzius says that the outlook is unclear, but that they do expect

the canada and mexico tariffs to be short lived. goldman's chief u.s. equity strategist, david kostin, writing large tariffs pose downside risk to our s&p 500 earnings estimates and return expectations. jp morgan's michael feroli also noting that using fentanyl as a justification could provide a quicker off ramp than more traditional applications of the trade act. he says qualitatively, tariffs should push up prices and depress growth. but j.p. morgan is holding off on changing its forecast because of the uncertainties around that implementation and potential retaliation. bank of america global research notes that companies are better positioned this time for china tariffs, because china exposure has been reduced by more than a third since 2018. but tariffs on mexico are likely to be more painful as import exposure has risen since 2018. speaking of tariff retaliation, the premier of ontario, doug ford, says that he is banning american companies from contracts within his province. he said that that

would effectively shut off u.s. companies out of tens of billions of dollars in new revenue from those contracts. as a result, ford said that he is ripping up the province's contract with starlink because, in his words, ontario won't do business with people hell bent on destroying our economy. so we'll see. now for one of the biggest questions facing wall street this morning are president trump's new tariffs temporary or permanent? our senior economics reporter steve liesman is here. he's trying to take a look at that issue. what do you think, steve? >> we'll come. >> back to what kevin hassett. >> said, i think in just. >> a. >> second. >> clarified some thinking. >> along with a. >> brief i just. >> got from. >> the white house. >> but president. >> trump has linked. >> the new tariffs to progress. >> on. issues like fentanyl. immigration and trade. >> deficits, suggesting actions by. >> mexico. >> canada and. >> china could. >> undo them. >> but he's. >> made other. comments that. >> suggest there actually may be. no way to get. >> rid of them any time soon. he posted on. >> truth social this. >> weekend, make. >> your product in. >> the. >> usa and there are no tariffs. >> that suggests a different

and. >> more permanent underpinning. >> for these moves. >> when campaigning in october 2024, he said. when we were a smart. >> country in the 1890s. >> this is when the country. was relatively. >> the richest. >> it ever was. >> it had all tariffs. it didn't have an income tax. trump has. >> praised president. >> william mckinley. >> mckinley. he had. >> the. >> nickname the napoleon of tariffs and raised. >> plenty of protectionism. >> and raised us tariffs from 38 to 50%. >> more importantly, president trump. >> needs revenue to pay for. >> his. tax cuts. >> and efforts to. reduce the deficit. >> at the same time. >> a year ago, scott. >> bessett, now treasury. >> secretary, was among those. >> supporters of candidate trump suggesting tariffs would. >> be. >> rare and use a negotiating tool. >> he told his. >> investors, according to the wall street journal at the time, the tariff gun. >> will. >> always be loaded. >> and on the. >> table, but rarely discharged. >> and yet. >> trump is threatening additional tariffs on europe, as. >> well. >> as tariffs. >> on. >> steel, aluminum. >> copper and computer chips. >> wall street more or less bought this temporary tariff spin. morgan stanley, writing over the weekend full implemented tariffs with staying

power don't appear to be in the price of key markets. so despite assurances tariffs would be rare and just using negotiating tools, markets should at least be thinking about the notion that tariffs could instead be widespread and important revenue measures that are more permanent for the trump administration. we'll get a look at how the fed is thinking about all this on tariffs and the outlook for gdp and inflation. in exclusive interview we have with boston fed president susan collins today at 11:00 on monday. movers. >> you know, i will say after our conversation with kevin hassett, who was standing on the white house lawn. obviously an economic advisor to the president on these issues, i changed my thinking to some extent. >> i heard. >> it because he didn't really seem to want to talk about the economics of what this means. he wanted to talk about how other parties, canada and mexico, but mainly canada, he thought were misinterpreting what the executive orders were trying to accomplish. that seemed to me like it was almost like, hey, just give us some some something. we can say that we

have a win here and this will go away. >> i'm going to give you. >> the most. >> critical explanation, and then i'll walk. >> it back. >> yeah. >> some of this has been a bit like boiling the frog, right? okay. don't worry. they're temporary. don't worry. they're temporary. you remember lutnick was on, or all these guys are in the campaign. they'll be rare. >> and temporary. >> over the weekend, i thought it was real. and they really wanted this to come on. and there was going to be something coming from this. after that conversation, i thought maybe they don't. >> but you heard those comments by president trump. bring it back to the united states and pay no tariff. what does that tell you? is that a temporary tariff if he gets rid of the tariffs that canada that he just put he's going to put on canada, that doesn't change the issue of making in the united states. look, he has a different idea about how to tax the country and where revenue ought to come from. he's he's praised tariffs as being the best solution to a lot of different problems. so i don't know i feel like there's two different things going on. i think kevin wants these things to be temporary. he comes from a part, i think, of the republican party that still believes in free trade. there are those

people that that have that for years and decades of republican party. >> he's been in the room. and you know that president trump watches, and anybody who's speaking has an audience of one, if you're working for him and speaking on these things, i to me, it was a this may not be the real thing. and look, it's he kept saying this is part of a broader overall way of looking at the world. and he's right. president trump does want to get to the point where he feels like we're not getting ripped off as much, where you have better hand in some of this leverage, and maybe that's piece by piece around the edges. so that's i'm just telling you what i thought after listening to kevin, i. >> enormous respect for what kevin says and what you said. let me just tell you, i didn't have the time to prepare this before i got on air. white house, i asked him, did you guys do an economic analysis of this, which you asked him? they sent me the following. i'll just read you the first line. >> okay. >> tariffs strengthen the american economy, raise wages and create jobs. that's the first line in their response to me about what the economic analysis of this is. that tells

you that they see this as not a leverage thing. now maybe okay, there's two ways to think about this. maybe they these are temporary ones, but that doesn't mean you're out of the woods for a more permanent tariff structure that could be out there soon. >> and by the way, the tariffs that president trump put on china in his first term. >> they were kept. >> they were kept and they were kept by president biden following that. and so this was a, you know, a new way of doing business. >> i just feel like there's a very big difference between what we do with china when we have real national security issues with. >> yeah. >> then with canada. i was just in canada. they're such nice people there. the mexicans are such nice people. there are friends there. and here we are. >> and neighbors and our biggest trading partners tend to be our allies. >> we have a tiny, tiny trade deficit with canada. let me just tell you a real concern. first of all, one of the economists i read over the weekend said recession in canada is now the base case. that's one. wow. two

is that when you think about what causes recessions, it's the idling of productive capacity. what happens to some of the capacity? maybe it's small and the american economy absorbs it. maybe the canadian economy doesn't. having recessions in our northern and southern neighbors is not necessarily the best. and by the way, our our top trading partners is not necessarily the best for the us export economy. >> yeah. look, there's uncertainty and a lot of it. and that's going to lead to more volatility in the markets. we're seeing it again this morning. >> we'll have our cnbc fed survey over the weekend. but as you said every single economist marked down gdp. >> and marked up inflation. >> and marked up inflation as a result. >> but we'll see. we'll see how. >> there are alternative ideas out there. >> yeah steve thank you. >> thanks. >> amazon among the us companies likely to feel the effects of tariffs. but wall street is finding some silver linings. kate rooney joins us right now on what president trump's move might mean for amazon. hi, kate.

>> hi, becky. >> good morning. so these tariffs are expected to. >> be. >> mostly negative for amazon. but some investors are. pointing out. >> the. >> impact on foreign. >> low cost competitors. so think of names like. >> shein and temu which could. >> be some consolation. >> for amazon. >> so bulk of items available on amazon do come from china, mostly. >> through those. >> third party sellers, not from amazon itself. so rohit kulkarni at roth estimates 30. >> to 40% of those who. >> sell on amazon import. directly from china. about 60% of all of the items sold on amazon are. from those third parties. they may really be the ones here absorbing more of those cost increases. amazon sells fewer goods directly. compare that to, you know, a walmart or a target, for example. and then mexico, where tariffs are set to be 25%. that makes up less than 10% of amazon's seller base. so there is an impact. >> prices are. >> likely to go higher. the upside tariffs are taking aim at a. trade loophole. it's gotten a lot of attention. it's helped

amazon's competitors. she had tamu as i mentioned they've skyrocketed in popularity really by undercutting on price. >> and they've used what's known as the de minimis. >> exemption, which lets exporters ship packages. worth less than $800 into the us duty free. that is going to be going away. dan ives of wedbush is among those that thinks that dynamic makes tariffs a net positive for amazon. the company does report earnings on thursday. >> investors are. >> really going to want to know about amazon. what levers can the company pull, how are they going to mitigate some of these costs and the effect on margins? >> becky. >> yeah. and kate, you know, steve and i were just talking about the tariffs being either an on or off. you know these this they're either on or they're off. but there's a third option too is that they are on. but in a in a more diluted version with a lot of carve outs for other areas too. the de minimis one is interesting and it certainly impacts sellers on, on etsy on some of these other places too. but the idea that it's going to hurt some of the fast fashion that comes straight in from china. i don't know that

anybody's going to be really crying a river over any of that. >> yes, absolutely. becky, by the way, conversation with steve was fascinating. but i think the de minimis that that loophole, regardless of what happens on the rate of tariffs, if they stay that loophole hurting amazon's foreign competition is huge for what was seen as sort of the bear case for amazon for a while there late last year. there's all this talk about sheehan. >> and. >> ta'amu really eating into amazon's market. >> share and the threat. >> from those. so, you know, analysts are saying, yes, prices might go up. the company, by the way, has the scale and the. logistics scale to potentially absorb some of that. but the competition side of this is really one to watch. i think one that investors begrudgingly might be excited about here. >> yeah. thank you for pointing all that out. kate, it's good to see you this morning. >> good to see you. thanks, becky. >> when we come back, we're going to get some expert commentary on elon musk's doge team reportedly gaining access to the federal government's multitrillion dollar payment system. more commentary from the

street this morning on tariffs as well. bank of america's savita subramanian writing that if the current tariff hit on mexico, canada and china remains. the s&p 500 could see up to an 8% hit to earnings per share. a lot of different moving pieces here again. we don't know if the tariffs will be put in or put in in full. you don't know exactly what's going to happen to the dollar as a result. but we've been watching the dollar this morning on the threat of this. and the canadian loonie down 1% against the dollar. the peso mexican peso now down by about 1.6%. the last time i checked on this. we'll continue checked on this. we'll continue to watch it. s at&t has a new guarantee. because most things in business are not guaranteed. like a distraction-free work environment. -yeah,i'll circle back around. -get those steps in, kevin. your coworkers keeping things confidential. [phone ringing] oh, she's spilling all the tea. ♪♪ or office etiquette. yeah, that's not guaranteed. i know you can see me! you know what at&t guarantees? connectivity you depend on,

the deals you want, and the service you deserve. can i get that logo bigger? or we'll make it right. that's the at&t guarantee. with unexpected moments of inspiration around every corner and through every window. quiet mornings in the sun with portals. >> to new. >> worlds and. >> fine dining with a view. >> your window. >> treatments should be as inspiring as your home and the remarkable routine of your daily life. three day blinds. >> in the world. of investing. >> a beast. >> lurks between the numbers. some watch from the safety of the sidelines, but others saddle up and ride that one ton rowdy ribeye for all he's got. if

that's you, join us on tastytrade named best online broker for options trading. genius loves company. >> nothing stands still. >> not technology. >> not the. >> market. >> and not franklin templeton. we've been a firm in motion for over 75. >> years. >> always innovating. >> today we are a leader in public and private markets, digital assets and. >> custom tax. >> management. >> empowering advisors with. >> solutions to build. >> the portfolios. >> of the future. >> today. >> franklin templeton. >> franklin templeton. ruri: ichi, ni, san, shi... (1,2,3,4 . . ) hina: ichi, ni, san, shi... (1,2,3,4 . . ) akari: ichi, ni, san, shi... (1,2,3,4 . . ) others: ichi, ni, san, shi... (1,2,3,4 . . ) others: ichi, ni, san, shi... (1,2,3,4 . . ) (♪♪) (♪♪)

you were made to chase your passions. we were made to put them in a package. you inside the numbers. >> what are the earnings. >> trajectory tell. >> you though. >> right now. >> smart analysis crucial strategies. >> great to get your first reaction to this print we got from nvidia. >> and when the ceos have a big announcement they come here first. what's your take. >> on not just the. >> quarter but how. >> things look from here helping you make the right moves. >> this has been a key number. >> the street was watching. >> a wild hour of earnings. >> earnings season special coverage all this month on cnbc. >> all right welcome back everybody. treasury secretary scott bessent reportedly granting elon musk's doge team access to the federal government's payment system, which handles trillions of dollars in payments. that move is ostensibly about rooting out government waste, but many are concerned about potential politically motivated meddling

and the exposure of sensitive taxpayer information. for more on this, we want to bring in natasha sarin, who is a former treasury department official under janet yellen. she's now a professor at yale university's law school and school of management. and natasha, first of all, thank you for joining us today. this this can sound like a pretty arcane topic. do you want to try and explain why people should care about this? yeah, totally. >> and thanks. >> for having me. you know, when i first heard this. >> story, this weekend. >> or last week. >> i was just. >> like, stunned about. >> the nature of the disclosure here. and maybe. >> just, like, give. >> your viewers. >> a sense. >> the bureau of fiscal. >> service is kind. >> of like. >> the accounts payables department. >> for the federal government. >> so money coming in, money going out, they're kind. >> of responsible. >> for the plumbing, the sense. >> of the. >> mechanics of how tax credits gets paid. or how. social security benefits. get paid. and as. >> such, this data. >> and. this infrastructure. >> is incredibly sensitive. >> it has the. >> social security.

>> information and. >> the private information of. >> every single american in this country. and so i've. >> been wracking my brain for days. >> trying. >> to come up with. >> like a. reasonable reason. why unelected. sort of not even really. >> political employees. >> of the federal. >> government would. >> need access to this infrastructure. and i. >> frankly cannot. >> come up with one. >> i worked. >> at the treasury department for two years. i worked on issues. >> related to payments. >> i thought about tax credits and tax policy, and. >> i was nowhere. >> near this data. >> and the reason for. >> that is it is. not these are not policy. questions that are. >> at play here. this is purely mechanical. >> it is like. >> cutting the checks that go. >> to households. >> and so the only reason. >> i. >> can come. >> up with, frankly, that. >> you might want access to that data is because. >> you want unilaterally to. >> be able to. >> determine what kind of programs are paying out and what kind of. >> benefits are paying out in ways. >> that are. >> frankly, scary. >> and illegal. >> well, that okay, many points on this. first of all, that is

what they've said they're doing. they're looking for payouts that are going directly to people or to organizations that they think are fraudulent. would you be able to see it in that system? so. >> becky. the thing is, like i saw. >> that and i saw that elon had tweeted that, i mean, there is. a filter. >> in place that the. >> treasury runs, which is called the do not pay list. >> and essentially it's doing. >> exactly that. >> it's saying people who are known members. >> of terrorist. >> organizations or people who who are. >> deceased, so shouldn't be getting tax credits. >> it's kind. >> of making. >> sure that those people. >> aren't getting paid. >> the bureau. >> of. >> fiscal service. >> is running sort of. >> $5 trillion of payments and. >> over a. >> billion, a trillion. payments every. >> year out. >> of its systems. >> so ultimately, i totally support the idea that. >> we need. >> to do more. >> to combat. >> fraud and. >> waste and. >> inefficiency in government. but the right way to think about. >> doing that. >> is for the agencies. >> who. >> are telling. >> treasury who. >> needs to get paid for particular. programs to get better about.

>> running those filters themselves. that's like not the role of and not. the job of this system and this infrastructure. >> okay, i think that was elon musk's point. i don't remember where i read it. maybe he said it last night on his spaces conversation that took place for about an hour at midnight last night, said that that system has never turned down a payment, ever, that that they've paid them out to, even if they're on a terrorist watch list, they pay them out anyway. >> that's just. >> frankly. >> it's just not it's just not true. >> and the. >> thing that i have been stunned by is, and you saw a letter from senator warren this morning to secretary scott bessent. >> that was along these. lines as well, is. >> like, what. >> is happening is you're seeing. >> sort of tweets from. doge and doge affiliates. >> saying particular. agencies are evil and need. >> to. >> be shut down, or that. >> particular payments that they're paying. >> out, they're. continuing to make out, make. >> illegal payments to known terrorist organizations. which a couldn't be further from the

truth. but b. >> like truly. denigrates the important role that the payments infrastructure plays in our. system and the people. >> who run it. play in this system. these are the people who. >> are responsible for and have been responsible in the past for when you're approaching debt. ceiling crises, determining what. the x date is, and making sure you come up with. >> strategies and. contagion approaches. >> for when the government may or may not be approaching default. >> they're the ones who are. >> paying out $5 trillion to households and government contractors. >> each and every. >> year, and. >> they're doing this in a way that is. >> incredibly complicated. >> and i can't. >> stress enough. this is. >> not a political act. >> this is not dave lieber. >> who resigned last. >> week. >> who was. >> running the bureau of fiscal. >> service, had. >> been at the treasury. >> department since. >> 1989, worked for republicans, worked for democrats and was revered by both. >> and who has since resigned and retired after being put on administrative leave when he refused to give access to some

of this last weekend. natasha, thank you for joining us. we appreciate your time. squawk box will be right back. >> at capital group. >> we take care when. >> crafting our. >> active etfs. >> our portfolio. >> managers and. analysts collaborate to strike the right balance between strength, flexibility, and endurance. we believe this hands. >> on approach. >> sets our active etfs. apart so they can make a. >> difference at the core. >> of. >> a portfolio. >> because we don't. >> fit molds. >> we prefer to cast originals. >> we prefer to cast originals. >> capital group. (grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential.

old school grit. new world ideas. morgan stanley. carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management. disrupting the status quo? scan this code or go to cnbc.com. slash disruptors to w.

scan the code now and ask. >> about. >> the bosley guarantee. >> all right, let's take one more look at the markets this morning, how things are shaping

up with the tariffs on the horizon. dow futures down by about 600 points. s&p futures are down by close to 100. the nasdaq off by about 380. if you're looking at this on a percentage basis s&p 500 off by 1.6%. the dow off by one and a third percent. the nasdaq down by about 1.75%. of course we're watching treasuries too. the yields haven't budged all that much. the ten year at 451. the two years at 424. we'll see you tomorrow. right now it's time for squawk on the street. >> no, no, i'm not going to say we may have. >> short term. >> some little. >> pain and people understand that. >> but long term. >> the united. >> states has been ripped off by. >> virtually every. >> country in the world. >> we have. >> deficits with almost every. >> country, not every country. >> but almost. and we're going to change it. it's been. >> unfair. >> that is. >> the. >> president announcing. >> tariffs on imports from the. country's