terrified of doing that and i think it would be a complete disaster if the president did it himself. lou: byron york, thanks for being with us. that's it for us tonight. thank you. kennedy: tonight the president set to enact major tariffs on steel and aluminum. but could that actually slow down the growing economy? we have the answers. plus a new report on the mueller investigation showing he has new people in his sights. that could lead all the way to the oval office. have you heard about next week's special election in pennsylvania? we'll explain why it's so important for republicans to grab a fork. it is time to feast. kennedy: the president is right to take credit for a booming economy. the stock market is way up in the last year, unemployment is down. most people are getting more money in their paychecks. but the president has it all wrong on tariffs. and i hope he doesn't give in to

its isolationist desires by slapping what are essentially taxes on steel and aluminum that will start a harmful trade war. when the president satisfies his deregularegulatory jollies, the economy grows and people win with more money, jobs and mobility. but when he indulges his petty urges to reconcile trade deficits by economic force, he may be bailing out the steel industry in the short term but in the long run he's hurting millions of workers by putting jobs at risk that will be damaged by counter tariffs that hurt steel-based exports. we're already on ahigh wir on a. economic isolation never works and you can look no further than the great depression of 1929 that not only undid the economic gains from calvin coolidge's cost cutting and tax cuts. it launched us into the kind of financial turmoil that would be

comcompressed and compounded in this era. hopefully those around the president will bend his ear and will in the right direction so mr. trump doesn't throw the brakes on the economy. what goes up can keep going up. but he adds to the gravity with tariffs and a trade war, the fall back to earth will be fast, hard and hardly great. let's get into the show. i'm kennedy. kennedy: earlier today the president made his case for why we need those tariffs on steel and aluminum. >> our country on trade has been ripped off by virtually every country in the world. we lost $800 billion a year on trade. not going to happen. kennedy: the problem is, from a free trade perspective, tariffs never really work. why is the white house playing roulette with the economy?

former economic adviser to president reagan, art laugher is back. >> that was a great opening monologue. i loved it. kennedy: thank you very much, art. i hope that people like you can talk the president out of these tariffs. i understand the impulse, but i think long term it's the wrong one. what do you think? >> this man has said numbers of things i haven't agreed with over the past and every time it's proven that i've been wrong, not he. he negotiates positions, deregulates, he gets the tax bill in place. i mean he's done all of these wonderful things and i never thought that could happen but he did it. it did happen, it was wonderful. and of course you're correct. tariffs are no answer to anything. why should you deprive american consumers of high quality products at low cost. but if he says that, he can't negotiate with canada or with mexico on the rotten deal that is called nafta.

that deal is a very very bad deal for the united states and also by the way for canada and mexico. and it's really bad. but how can he negotiate if he tells us that he really isn't going to do it. kennedy: let's talk about that. you're saying it could be an fixing nafta. how do you fix nafta so you have truly free trade going in all directions. >> nafta is full of bells and whistles, nonsense and gore badge in there that is anything but free trade. it's like the tppf which i testified on a number of times. all of these nontariff barriers are to protect these countrieses. all they do is make them fat and lazy and not good at producing goods. we had that problem with the color television industry and all we did was triple it so that no one produces color televisions in the u.s. kennedy: we've tried steel protectionism in the past. >> under w. it was awful. we did it under reagan, he did

the anti-donald trumping provision and look at the steel industry. steel industry needs tough competition to make them strong. you don't make an industry strong by coddling them. the problem with the steel industry is they're located in wisconsin, they're located in michigan, ohio, they're located in illinois, all of the high tax socialist regulatory states. that's the problem. kennedy: all right. so you know i have no problem with moving the steel industry to florida, nevada and texas. >> don't forget tennessee. kennedy: but again i don't work in that industry, i don't live in those places and we don't want to be short sided and insensitive but you know when you talk about chinese dumping steel and that seems to be one of the biggest issues, teresa may says you have to have a multilateral approach. so a actors like china don't bombard the market with cheap

crappy steel. how do you do that? >> let's imagine japan wanted to give under the circumstances all of their cars. they loved america so much we'll give you every car we have free of charge, it's yours, a gift. would we want to nuke them for doing that? i meai mean seriously remember e whole purpose of the economy is to satisfy consumers, not producers. if we can produce something twice as well with half 0 the cost of labor, why not do it. it's not that we want more labo- kennedy: i agree with you, but you're making the argument that trade deficits aren't the end of the world. >> they're the benefit of the world. trade deficits are the opposite of capital surpluses. which would you rather have, kennedy. capital lined up at the borders trying to get into the country or out of the country. the only way capital can flow into the country is if we have has trade deficit. how fo do foreigners generate the flow. only way they do it is through a trade deficit. we had the biggest trade deficit

every under reagan and look at the boom we created. is that a problem? no, come on. kennedy: no. so we have to get off the talk that trade deficits are the siren that is -- you know, that the president is warning us that we're about to hit the rocks because we're not. it's a sign of economic health. art, i agree with you very much. thanks for coming back. >> i still think he's just negotiating and i hope that's the case and i hope he wins in these negotiations. kennedy: we shall see. i hope the country wins. the president's announcement on new tariffs may have hurt some world leaders but he put on a united front with benjamin netanyahu today. this was their fifth meeting and they have plenty to discuss, middle east talks and controversial israeli settlements. but the israeli leader made it cleer that the biggest issue facing america is this. >> if i have to say what is our

greatest challenge in the middle east to both of our countries, to our arab neighbors, it's encapsulated in one word. iran. iran has not given up its nuclear ambitions. it came out of this nuclear deal emboldened, enriched. kennedy: both trump and netanyahu have their own problems with in their representative homes, our president facing accusations of russian collusion and the prime minister facing investigation into bribery and fraud. can they get past and and lead the way against iran. let me go to my panel, katie is back along with media report at the hill, jo con chon and former cia officer, the one and only buck sexton is back. welcome everyone. what do you think took place in the meeting between the president, the prime minister and one jared kushner? >> it's partially a high-five

and a check-in here. it's the amendment and prime minister netanyahu getting together to say good stuff, nice that we're no longer in the obama-israeli paradigm here where things were rough during the eight years of obama. but the eminent issue is iran. kennedy: are we on the same page with israel? >> with iran? that all depends. the iranians are colonizing syria next door setting up bases, they have large numbers of ground troops there. we don't know the full scale of military assistance. if you're looking at in from the israeli perspective geography is rough right now. you have an iranian president in syria, also on your border, that's a problem. and the notion of the iranians putting advanced missiles in syria which could happen, might be a red line. you've seen air strikes. no one in this country seemed to care very much by the way. you've had an iranian drone

flying in -- kennedy: you know why? i don't think people know what that means. >> it's a big deal. kennedy: it's hard for them to. >> it wasn't like a drone you see at the beach by the way. it was a mock-upo upof one that went into years ago. this is a plane they're trying to take pictures of. the i israelis had to shoot it t of the sky. kennedy: what came out of the meeting. >> the media wasn't paying attention. what comes out of this meeting. i think they'll actually hug it out. go old school in that. but look, this is the one world leader that embraces the president more than any other by a country mile in terms of when we talk about netanyahu. for the president to keep his promise as far as recognizing jerusalem as the ca capital, i

think that's pretty big. but look, the palestinians are not on board in any capacity as far as any peace deal because of that promise being kept. kennedy: it's because jared lost his top secret clearance. they were on board before that happen. who is in bigger trouble politically? katie, you've got a two-sided corruption investigation back in israel and the mueller investigation obviously isn't slowing down. so who is in deeper yogurt between netanyahu and trump? >> i would have to say our friend in israel, netanyahu is not having a great time right now. kennedy: will he survive? >> i can't comment on that. but gee graphically israel has never been sush rounded by many friends and aren't now. it's going to drag us into it whether we want to be there or not. i'm hoping something constructive can come out of this but it might be a hug it out session. kennedy: it's impossible for us

to conceive of that geographic discomfort it would be like mexico launching scud missiles and canada. >> people don't understand how small it is. they don't know how easy it is to get everywhere. >> it would be like if you're in new jersey and you've got pennsylvania and new york lobbing mortars and rockets at you on a regular basis. it's right next door. >.hezbollah, hamas, things are rough right now for israel. in terms of the peace negotiations, the peace process, they're not on first base yet. the road map for how this goes, every administration tries to make peace, every administration fails, the pa palestinians maket worse. kennedy: meamaybe this administration is going to try. >> they're going to try.

kennedy: we're going to talk about jared a little later in the show. but let's go to the mueller investigation where specialg counsel reportedly has a hit list of trump associates he's targeting. a grand jury subpoena from robility mueller's team sent toen unnamed witness asked for unwritten communication of any kind between the witness and some of the biggest names in the campaign starting in 2015. the list names paul manafort, steve bannon and among others, the president himself. in response to the report, former cia official need price says the subpoena shows that this is, quote, with a few exceptions, the entire senior campaign team. mueller is threegh treating it a criminal enterprise. what is going on? >> it's interesting that he's asking for communications. he should be asking for direct messages on twitter as well if

you're including the president. from november 1st, 2015. that's interesting. kennedy: that's further back than what we thought the time line was going to be. >> here's what i wonder. if in the end they somehow come up with there was no collusion, which was the whole point of the special counsel but there was obstruction of justice over a crime that wasn't committed, does half the country remotely accept that outcome? kennedy: too rabbit holes . >> way too many. i'm worried this is going to spread out into a never ending investigation that goes five million different directions and it drags and drags. i feel really bad for hope hicks right now. i think she's not having a good week and a half. the white lies thing, which is the stupidest thing to get upset about. whenever anyone says i'm on my way, that's the biggest white

lie told in the world. all of these people on the list, rabbit holes everywhere. kennedy: last word buck. >> i was sad about hope's departure. it hurt me on the inside. the mueller probe, all has to do with the russian interference. it's not just collusion. that's the political motivation of why we're here. but let's talk about the sock puppets and the twitter trolls and how they may have affected the election outcome. and because you don't have a specific crime, anything that you find interesting that falls in the rubric of russia may have done something during the election. but the white house is not in disarray. the white house has always been a no traditional bureaucracy. kennedy: chaos is oxygen in the white house. >> trump is the commander in chief who likes to be on a ship in the storm. kennedy: the panel is going to return. many more opinionses opinions.

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ken welcome back. the "the new york times" reporting that an adviser to the united air of emirates is now a focus of the russia probe leading some to believe that the investigation is expanding to include pay-to-play allegations against the trump campaign. according to the times, special investigators with questioned the adviser in recent weeks to see if they tried to buy political influence by donating to donald trump's presidential campaign. the purported pay to play allegations come as the department of justice continues to investigate the clinton foundation for receiving donations and speaking fees that fell suspiciously close to favor of timetables and discussions and decisions made by hillary clinton's state department, very serious charges. joining me now to discuss who should go to jail and who shouldn't, senior judicial news analyst, judge napolitano. >> it's an unhappen my subject.

unhappy subject. i ac disagree with the presidenn many policy things but i want him to succeed. this latest revelation of what bob mueller is looking at in my view comes from his recent treasure trove of evidence in the form of rick gates. gates was the deputy campaign manager after manafort was fired, stayed on to run the campaign with bannon, stayed on throughout the transition and visited the white house many times in the early months of 2017. manafort's business partner for many years. manafort bothed will never plead guilty, pleaded guilty and now spill his guts to mueller. kennedy: you this is a result of the deal that rick gates made with the special counsel to keep himself out of decades of years in prison. >> he was exposed to decades and years. he's now exposed to two or three years, not decades, years. and that will probably be

reduced to months. because of his cooperation helping mueller. kennedy: what could he have sai. >> just as we never heard of the lawyer before, we've never heard of this united air of emirates guy and it turns it he was around during the campaign, throughout the transition and at the white house. you said it perfectly, was there a pay to play. stated differently, was there an agreement with the campaign. you provide us with something of value. i'm using that phrase intentional because it comes from the federal statute in return we'll look favorably upon the needs of your oil rich united air of emirates once donald trump is elected president. the reason i say something of value is because it is a felony to give or receive something of value from a foreign national or entity when you're running a federal campaign. kennedy: that's what the clinton

foundation was, that's what it was obviously set up for. the uae donated millions of dollars to the clinton foundation. how is that different than what is being loosely reported here. >> the clinton foundation is able to accept donations from any source as long as there's no quid pro quo from the spouse of the head of the clinton foundation. and again you said it in your introto this segment. it's now the bill, hil hillary d chelsea foundation. mrs. clinton is secretary of state. he's receiving donations from foreign countries suspiciously close in time to favorable decisions made by mrs. clinton. what's the difference. she's using the power of government to influence official government decisions in favor of her husband's donors. that's at least the allegation and that's what the fbi is

looking for. that's called bribery. kennedy: yes. >> remember you don't have to bribe the official directly. you can bribe the official indirectly by bribing her husband. kennedy: that's why the setup of the foundation is so brilliant in the first place. the money comes out pretty clean when it's laundered through a charitable organization. >> so the question is can the same justice department that exonerated mrs. clinton, ala jim comey -- there's a difference between extremely negligence and grossly careless, or do we need another special prosecutor to invest -- special counsel to investigate mrs. clinton. or should the same special counsel investigating russian collusion and any clution with mr. trump investigate the foreign collusion with the clinton foundation while he's at it. kennedy: what is the answer? >> i don't know the answer to that. it is going to be up to jeff sessions unless it involves russia and then it's up to rod rosenstein. what do career doj people fear?

they fear the consequences of investigating their predecessors because they don't want their successors to investigate them. if that's the way you feel, you shouldn't be in the government. kennedy: i agree. it's only about covers your ars. >> yes. we're confronted with a whole new area that robert mueller is looking at and a potential new area that the doj should be looking at, mrs. clinton, bill clinton -- kennedy: if you're looking at some of it, look at all of it. because she's not president is no reason for her or the foundation to escape justice. >> we start out by saying we want trump to do well. but yet it frustrates me. instead of say in a tweet why aren't we looking at police clinton, pick up the phone and tell the ag to do it. kennedy: he was a political supporter. supposedly they have a relationship. have an adult conversation. thank you so much. always great to talk with you.

coming up, jared kushner and ivanka trump the next white house insiders to be shown the door? we'll read the tarot cards next. oh! there's one. manatees in novelty ts? surprising. what's "come at me bro?" ..u owners and lessees

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kennedy: there it is. the trump white house has seen

plenty of turnover. now it looks like jared kushner and ivanka trump are struggling to stay relevant. john kelly the' reported is questioning their white house rolls. jared and ivanka aren't too happy with him either. so will the president's daughter and son-in-law be the next to go? let me ask katie after lip. she knows an awful lot about the white house. let's discuss. i interviewed anthony scaramucci last week. and he says this whole evident about jared kushner is a concerted one to get him out the white house. >> i think the reports about john kelly singling out ivanka

and jared kushner. if you look at the way he looked at the security clearances. it was dozens of staffers in the white house. so to say he's going after jared kushner i don't think mends with the facts. but there are questions what jared kushner's role will be going forward. benjamin netanyahu has been assigned to coming up with some kind of peace agreement between the israelis and palestinians. the israeli palestinian issue for the united states is all about security. kennedy: it's impossible to take on a task that huge without having that clearance because of the information and untell surrounding it is classified at that level.

katie: jared has never worked as a low-level staffer for anybody. he has been running his own companies since his early 20s. big high-profile international companies. regarding ivanka, there are questions about whether kelly has been going after her. but she has been a positive force for the administration on tax reform. kennedy: and family leave. but it does seem odd as we are hearing about the downgrading of the security clearance, you are reading stories in the "new york times" detailing the questionable aspects of jared curb fresh's business practices -- jared kushner's business practices and whether there were four countries trying

to manipulate him, including israel, and use him as a pawn to their advantage. that's the part that is very curious. it seems like there is something going on that's disfavorrable to him to get him out the white house. katie: any country will try to guest get close to anyone who is close to the president of the united states. there has been questions for years about kushner's business ties. he had to change his security application multiple times for forgetting about multiple connections. to give him the benefit of the doubt he does have a lot of different business outlets and has worked with numerous people all over the world. kennedy: bottom line, is he out? katie: i don't know. i'm not going to make predictions on that. but i wouldn't say john kelly is

going after him. kelly wanted to set rules on security protocol. kennedy: but that doesn't fit into a convenient and dramatic narrative. people are much more likely to believe kelly he'll boeing him. what a time to be alive. a harvard psychologist has a new book called enlightenment now. all the stories of mass shootings, it's far better to be alive today than any other point in human history. higher i.q.s, growing incomes and most of importantly, more vacation time. that's a reason to celebrate. the party panel is back. katie, a lot of people made this argument. but it's not a popular their tough that now is a good time to be alive. we are richer, safer and

smarter. but isn't it the truth? katie: it's absolutely the truth. the poorest people in the world are better off than the poorest people 50 years ago. but the better off you are the more time you have to sit and think about the things you don't like. miss are you loves company. there is a reason we have these tv shows on that are about drama and death and dying and struggle and strive because that's what we like to watch. you are not going to see things that say let's talk about things that made us happy all day because that's boring. >> another part of this here is the fact that we can work from home more often. brick and mortar doesn't exist for a lot of people because of technology. we are happier because we are

more entertained. growing up in the new york city area, i had four channels with a stupid antenna. now i have 1,000 shows i can watch. the life expectancy. 100 years ago, you know what the life expectancy was? it was under 40. now it's 78.5. twice the fun because we are living device as long. kennedy: there is a difference between happiness, the greek ideal. it's something you attain and gravitate over time if you giddiness answer euphoria. and because people aren't always euphoric they are not happy. buck>> this reminds me of the js witjesuits i studied with, who

said who told you you had a right to be happy. who knew anybody cared about a harvest any more where? who does a harvest. there are some things i do not miss. going on family trips in a small car with no air-conditioner. the sign says rabbit possible rd we would gift a go. food is so much better than it's ever been before. kennedy: it can never be too good. kennedy: a huge special election a week from day can be a preview of what's going to happen in november. it's a race the gop needs to win

to throw a roadblock in the democratic stampede. what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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tripadvisor. the latest reviews. the lowest prices. mvo: with everything that is going on around us and in the nation, we need to work together. we need to do it more often to help people that need help. ♪ ♪ i'll stand by you. fvo: he's encouraged other people to look around and notice one another and take the time for each other. that's his gift. ♪ i'll stand by you. kennedy: it's all hands on deck in pennsylvania for a special election. the victory might seem like an easy winter republicans since the presidents wong the district

by 20 points in 2016, but the polls show a much tighter race. democratic opponent conor lamb has outraised saccone by 20 times. "the washington post" report hints the timing of trump's talk on tariffs is coincidentally close to that of this election when you consider pennsylvania is the traditional home of the steam industry. hence the steelers. here to break down the importance of this election. fox news editor chris stirewalt. let's talk about that first. there is a lot of hubbub around those tariffs. there are republicans who are very upset at the idea much a trade war.

but this issue resonates in the sweet spot that is pennsylvania. chris: it's western pennsylvania to boot. trump won that district by 20 and that is so. but republicans is only 10 points. this should be a safe republican seat. but the president is more popular than his party in. >> substantial part to economic protectionism. the winner he is picking is the steel industry and aluminum is going to be very popular with people in that part of the country. kennedy: is it worth a trade war? chris: i just do politics. sorry for your 401k and how much your car costs. but it may be good politics. let's say the president ends up doing short of what they are talking about. we want to do it in and year like it's a big tariff.

kennedy: you could make it seem like a real tariff. get the win in pennsylvania then walk it back upon fushter reflection. chris: he can always trump it later. but the deal here is if the democrat wins in this seat there will be a bunch more retirements and chaos and panic on the republican side. this one is there is no excuse for the republicans to lose this one, if they do it will be the sign of a bad bad year that causes people to do other things to protect themselves. kennedy: and it's the first look we can get at the 2020 presidential matchup. chris: 020 will be here before you know it. ken there are next year is almost here and next year is when they decide. every race is a bellwether. whether it's the alabama senate

race or the fifth district in georgia. is it more bellwethery than other bellwethers. >> is this the one that will tell us the story about everything? no. we want to see what voter intensity looks like in these districts for democrats and republicans so we can gauge where it's going to be in november. kennedy: both parties want to see if their message gains traction if it's tweaked a little bit and how they can use that as a template for other races. kennedy: faint works they will keep using it. kennedy: a high school basketball player proves you don't have to be helen mirren to take a daring shot.

does it go in? find out.

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kennedy: a new report claims a growing number of silicon valley software producers are getting

pet chickens to help them cope with the stress of their jobs. but those are the only chicks most of of them can get. wee begin at the new york state high school basketball championships where one player had a times up moment of his own. they were down with 2-3 seconds to go. he drills the half court shot to win it. if i had to guess, it wasn't the last show the took that night. you know. high school kids love soda. it has gone viral the last 24 hours. hashtag #metoo.

elton john was in no mood to celebrate in las vegas where he decided saturday night was all right for walking off stage. this video is courtesy of tmz. fans joined elton john on stage for a sing along. but when one man refused to stop grabbing him. elton john decided to walk off stage. john later issued an apology to fans and spent sunday performing for fans at his oscar party. sources say it was attended by some of the most of talented people in music and miley cyrus. number three.

during the 1932 world series some day he did point to the bleachers before he swung. while others say he was alerting cops to a mugging. the stories agree the babe's bat is going up for auction. they are expecting to fetch a half million for the legendary lumber from the 1932 series which is enough to buy three beers at this year's world series. the auction house describes the bat as the equivalent of thor's hammer. topic number four. babe ruth may have been the sultan of swat. but nobody had more hits than marion barry. the former washington, d.c. mayor was honored with his own

statue saturday. and by all accounts the unveiling went great though the statue did have a little crack in it. sure we may joke about marion barry, but he was one of the greatest leaders of washington, d.c. fans of the mayor were elated to see the statue unveiled. there was a time when getting your own statue on pennsylvania avenue would be considered a hollywood ending. but day it's when you get fired for hitting on your co-workers. it is mugshot monday. we have two winners from the same family who got here by way of hollywood.

carrie and her father charles apparently dumped a bucket of popcorn on a 2-year-old girl because the girl kept saying the word popcorn during a showing of "star wars." witnesses say they argued with the girl's mother and they dumped the popcorn on the toddler. the father and daughter duo were arrested for the movie mayhem. the incident took place in our friend jimmy failla's hometown of levittown, new york. but he was not involved in the crime. he would never share his popcorn. the good, the bad and the leg from last night's academy award in the "nightcap."

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how much money do you think you'll need in retirement? then we found out how many years that money would last them. how long do you think we'll keep -- oooooohhh! you stopped! you're gonna leave me back here at year 9? how did this happen? it turned out, a lot of people fell short, of even the average length of retirement. we have to think about not when we expect to live to, but when we could live to. let's plan for income that lasts all our years in retirement. prudential. bring your challenges. kennedy: the os cashes continued their ratings slide as the broadcast was down 15% from last year. jipy kimmel was mildly amusing, but other times showed signs of apathy and boredom as though the most of prestigious hosting job in tv was beneath him.

people no longer go to movies hollywood pats its back on -- pats itself on the back for making. activism feels important. but for something meant as escape i am, the self-congratulations is too serious for people who want a breather from their already difficult life. icons have been shredded and ryan seacrest was almost bullied off the red carpet. and no one was bold enough to kop confront him. i guess his accuser doesn't deserve the same level of support because acrest is too big -- because sea crest is too

big to nail. tomorrow night on the show, robert wolf, kimberly guilfoyle and nasa astronaut scott kelly. >> underground, this was his home. >> ...dug with shovel and pick. >> he came at a time in america where if you could dream it, you could do it. >> it's a unique architectural creation. >> you can't go anywhere else in the united states to see something like this. >> but will his legacy be buried forever? >> he called my great-uncle the human mole, and that infuriated the family. [ door creaks ] [ wind howls ] [ thunder rumbles ]