too burdensome off the economy. mortgage applications from homebuyers -- charles: i understand the skepticism comes to the fed. john, liz, ashley. thank you, connell mcshane in for neil. connell: good to see you, charles, thank you very much. all kind of things going on. we welcome you to "cavuto: coast to coast." i'm in for neil. president's trumps tariffs on steel and lame numb -- aluminuml be put in place. gary cohn gone as top economic advisor confirms the protectionist stance in the white house. what is next? is the trump administration still to be viewed pro-business? all kinds of views head next two hours. we're moments away from hearinge president. a live speech. he will speech to latino business owners. a live look at the venue.

once the president steps up to the lecturn we'll take remarks live on fox business. first, we have news from the white house who might take gary cohn's place or perhaps just as important, at least for markets, who is not getting the job, says he is not. blake burman joins us now. what are you hearing, break? reporter: possibly take peter navarro's name out of contention. navarro who is one of president's top trade advisors, one of those on this issue firmly pushing the president to institute these tariffs saying in an interview in the white house saying he not being considered to be gary cohn's replacement as the top economic advisor. cohn and navarro are complete polar opposites on the issue as it relates to tariffs. earlier today, navarro, at least not for the moment under consideration. a name to still keep an eye on told going forward, is larry kudlow, someone the president like as lot. someone who helped write a tax plan during the campaign.

someone talked about in the initial stages before gary cohn got the job getting that. i'm told that the president views him highly. someone also who you might not consider for the post potentially is mick mulvaney, the current omb director and interim cfpb head. mulvaney talking about white house, shifting to self other roles. his name has been floated out there. i was told earlier today, connell, that was idle speculation. the white house though says sarah sanders says there are plenty of candidates to fill gary cohn's post. listen here. >> he has a number of people he could choose from. in the meantime gary will still be here as a voice for next several weeks. we've got some great people from the economic community that help guide on this, whether secretary mnuchin, secretary ross, kevin hassett, a number of other people will continue to be strong voices. reporter: send it back to you. any moment we're expecting the

president to speak down the road here in d.c. at latino coalition summit. here he is. connell: blake, thanks. we'll take the remarks from the president live for you from the nation's capitol. we'll see what he says big issues of the day. come back and talk about it. here is the president of the united states. >> thank you very much. thank you. thank you hector, i'm thrilled to be here with so many of our incredible leaders in the latino business community, and you folks are good people, i know that, i know that for a fact. i have had to campus pete against you for a long time. [laughter]. i said i want to get out of that. i want to be president. it's easier. [laughter]. i especially want to thank chairman egg tore barreto for the invitation and leadership on behalf of american small business. i want to recognize secretary chao who is joining us

today. elaine? hi, elaine. [applause] you'ring doing a fantastic job by the way. thank you very much elaine. motion of all i want to thank all of you, the latino business leaders who are living proof that the american dream is back and stronger than ever. the latino community embodies the pioneering spirit of america we're a nation that loves adventure. you love adventure. that celebrates risk-taking and embraces faith and family as the true center of american life. as president i am committed to unleashing the full potential of the latino community by removing government burdens, by restoring safety and security to our neighborhoods, and by defending america's interests so all of our citizens can prosper. america first is about unity.

it is about coming together as one family, one big, beautiful american family. no matter our race or color or creed, to protect our jobs, our communities and our country. we want all americans to thrive and flourish together. our program is working far beyond our wildest expectations. we've created nearly three million jobs since the election. think of that, three million jobs. if i would have said that prior to the election nobody would have believed it. [applause] all right? they would not have believed it. today we have more hispanic-americans working than ever before in our history. setting records. new jobless claims hit a 48-year low last week.

[applause] last year the hispanic unemployment rate reached the lowest level in history. congratulations. [applause] i'm proud to report hispanic unemployment remained at or below 5% for the longest period of time ever recorded. you're doing very well. that's good. consumer confidence is at an 18-year high. business confidence is through the roof with a record number of small business owners saying that now is good time to expand. and by the way, we're going it keep your playing field level so that we don't have outside interests coming in and hurting our country, which they have been doing. they have been doing a lot of that over the last 25 years. and we're doing a lot of things

to stop that. you're seeing that actually already in the numbers. that is why these numbers have been so good or great, i might add. latino-owned businesses now make up more than 10% of all businesses in the united states. providing jobs for more than two million american workers. these businesses contributed nearly half a trillion dollars to our economy last year alone. latinos are also starting new businesses at three times the national average. that's pretty good, three times. the american economy is coming back bigger and better and stronger than ever before, and latino businesses are helping to lead the way. you're paving the path. at the center of america's resurgence are the massive tax cuts i just signed into law. now that is a lot of money in

your pockets no matter where you are coming from. [applause] business or personal, it's a lot of money. it's the biggest tax cut and reform in american history. we got no democrat votes by the way, not one. now they're all saying hmmm, maybe we should have voted. do you notice they're having second thoughts? they're saying we think we made a big mistake. we didn't get one vote. and at the heart of our plan itself is the tremendous relief for working families and small businesses. a typical family of four earning $75,000 a year will see income tax cut of more than $2,000. that is not crumbs, slashing their tax bill in half. we nearly doubled the standard deduction, meaning a married couple will not have to pay one dime of income tax on the first $24,000 that they earn.

we doubled the child tax credit because the most important investment we can make is in our children. that was a big thing. when i signed the tax cuts, just before christmas, it was like jet fuel for the american economy. within hours companies began announcing thousands of new jobs and thousands of dollars each of bonuses to their workers. over now million workers have already -- 4 million workers have already received tax cut bonuses. the number continues to grow every single day. as a result, of our business tax cuts and reforms, the family will see the annual household income eventually rise by an average of $4,000 a year. we have finally given american businesses a level playing field and you'll see more of this in

the coming weeks. we're bringing it back. our jobs have been stolen from us. our businesses have been taken. our factories have been closed. it is all coming back. you saw two weeks ago chrysler announced they're leaving mexico and they're coming back into michigan. open up a big plant. we have many plants opening. [applause] many, many plants are opening. they're coming back for a lot of reasons, they're coming back. but one of them is the tax cuts. another is the regulations. now we're able again to compete with anyone in the world. joining us today are two business leaders who are at the forefront of america's economic revival. jenette pranger, is the president of echo select, a technology staffing business in kansas city, missouri, great place. [applause] a lot of people from kansas city

i noticed. seen a lot of people from kansas city. a lot of friends there. not only is her company's tax bill going down, her sales are going way up, as other businesses hire and, just, really are working very hard. she is filling those jobs for those businesses. and they're really creating something very special. in fact, jenette says her business is experiencing the best quarter in the company's 22-year history and that's great news for everybody. congratulations to jenette. where is jenette? [applause] where is jenette? hi, jenette. pretty good, right? big difference, big difference. yep, a lot of people are saying the same thing. thank you very much, jenette. adam devone is joining us. adam is the founder of benefits exchange alliance, an hr

consulting firm headquartered in orange county, california. as a result of tax reform adam was able to provide generous five figure bonuses to everyone of his employees. they very much appreciated it. he hired six new workers. he planses to hire as many as 15 more this year. adam, wherever you are, this really beautiful room, packed with people, adam, thank you very much. thank you, adam. [applause] great job. a big difference, adam? like day and night? that's great, thank you, adam. and thank you both for investing in your workers and investing in your country, thank you very much. in addition to passing a historic tax cut we're also slashing job-killing regulation regulations. i have friend, great business people. many of them think that the regulation cutting is more important, frankly, than even

these big tax cuts. according to a survey by the national small business association, the average small business spends $83,000 to comply with regulations in just their first year of existence. under the trump administration, we are fin alley getting government off of your backs and out of your pocketbooks. that is why i'm proud to report, we have cut more regulations than any administration in the history of our country. and we've only had 12, 13 months now to do it. so in a short period of time we've cut more regulations than any administration, whether it it is four, eight, one case, 16 years. nobody is even close. elaine, while i'm looking at you, maybe you could cut some

more. because it would take, 17, 20, 21 years to get a roadway built. [applause] we want to bring the numbers down to two years and even one year. if it is not done properly and environmentally good, we're not going to approve it. you will to the have to wait 20 years to find out whether or not it will be approved. i foe, elaine, you're working on it. in fact i instructed my whole cabinet, we're going for the final 40%. we need some regulation but you had regulations on top of regulations. you had the same approval to get from four or five different agencies. and it was ridiculous. it was impossible to do business. one of the reasons we're doing so well now is because of the regulation-cutting. so elaine, you will go and start cutting some more as soon as you get back to the office, right? we want to get the roads down to one year instead of two. [applause] and we will cut, even more red tape if congress acts on my infrastructure proposal.

you know we have an infrastructure proposal in front of congress. the democrats don't want to approve it because they don't want to give us a victory. they think we had too many victories. we have a lot of victories. we've had a lot. we're trying to have a daca victory for everybody, by the way, the democrats are nowhere to be found. they're nowhere to be found. [applause] really terrible. we're ready. you know the expression, ready, willing and able? we're ready, willing, and able. they are know where to be found. but also infrastructure. the people in the administration. we have hundreds of people out there, they are obstructionist. they don't want to approve them. then we get blamed for not having -- they are, just a terrible thing. elaine, we have so many people, is that correct? so many people from other agencies. your agency gets pretty good treatment i think but i will say, that many of the agencies just have so many people out there, including diplomats from,

as an example, germany. major countries. we have diplomats, they wait on line because the democrats don't want to approve them because they want to obstruct. that is not good. it has never been like this, ever, they never held them this long. republicans have never done this to this extent with the democrats. schumer and democrats ought to get going because it is the wrong thing for our country. it is very terrible thing. i have asked congress to pass a bill that generates $1.5 trillion on infrastructure and cuts the permitting process from 10 years down to two years or even less. after years of rebuilding other countries and we have built a lot of countries, it's time to start building our country again. [applause] but a wealthy nation must be a safe nation protecting the

security of our country is ply my highest duty. most important thing i can do. my administration is committed to securing our border, dismantling dangerous gangs and stopping the flow of deadly drugs that are just pouring across. it has never been a problem like over the last three, four years. and we're doing a job. and i will say, the border patrol and the i.c.e. and all of the different people that are working so hard, law enforcement generally, they're working so hard on the drug problem. never been a problem, many countries are having this problem. but there has never been anything like it in the history of this world. and it is destroying people's lives, so many. and we're going to stop it. every american child, regardless of where they live, or what family they come from, should be able to grow up in a safe community. my administration submitted a

balanced and responsible immigration reform plan to congress. our plan fully secures the border, provides a permanent solution to daca, which we're really working on. and modernizes our immigration system by ending extended family migration and the lottery system so we can eventually have a merit-based system. where people can come in and work for your companies, work for you and do a phenomenal job, a phenomenal job. people that love our country and want to love our country and our people. these reforms are supported by the vast majority of latino voters. more than eight in 10 latino voters think immigration to our country should be based on skill, not just a relationship with people you don't even know. this is the mainstream view of

all americans, including latinos. yet the senate democrats filibustered our plan because they don't care about the immigration system or reform and they don't want to solve the problem. they would rather use it to get elected. that is not working so well. but we remain committed to immigration reform that protects our country, strengthens our economy, and lifts our workers from poverty to prosperity. we want every american to know that the dignity of work, the pride of a paycheck, and the satisfaction of a job well-done. because when our people are free to live their lives and to follow their hearts, there is nothing, nothing at all that we can not achieve. what we are witnessing now is

the rebirth of the american dream. everybody in the world is talking about it. it looks a little nasty when you watch the news or as i sometimes call it, the fake news. but everybody in the world is talking about what's happening in the united states. it is really incredible. best numbers in so many different ways, companies, unemployment. so many records we're setting. the whole world is talking about it. and each of you here today along with millions of hard-working latinos all across your nation are making that dream into a reality. you're really making america great again. a lot of the people in this room are making america great again. [applause] you're unleashing the american spirit. you're bringing jobs to american

communities and you are fighting for the american way because you know that america is a nation that thinks big, dreams even bigger, and always reaches for the stars. you're reaching for the stars. i know some of you, you're reaching for the stars. you have been for a long time. and now you're getting there. together we will build great buildings, invent incredible new products, discover amazing new technologies, and blaze bold, new, trails in science and medicine and the arts. and we will do it all with american skill, american grit, and american pride. this is our time. this is our moment. go get daca. go push those democrats. telling you, it is close. this a moment for daca, for all

of us, but this is a very special moment. a lot of tremendous things can happen here. right now so many tremendous things can happen, if people want them to happen. this is how we are taking care of our people, taking care of our country. i just want to thank all of you for being here. having known so many in the room and having respected all of you, i can say that i'm very proud of you and i know you're very proud of our country. so thank you all very much, god bless you and god bless america. thank you very much. thank you. [applause] ♪ connell: president trump live in washington, d.c., addressing the latino coalition and their legislative summit for about 20 minutes here. the early afternoon on a wednesday as the stock market continueses to sell off with the president speaking on other stories that have been in the news we've been talking about.

the president for the most part in those remarks focusing at least towards the end on immigration. even said at one point go get daca, encouraging those in attendance to speak to the democrats in congress to get something done on that particular issue. anyway let's get back to what we've been covering throughout on fox business. i'm connell mcshane filling in for neil on "cavuto: coast to coast." i say the market has been selling off. we're down 32points on the dow jones industrial average. we were down 300 early. now we're back to where we were. president's top economic advisor gary cohn resigned last night after the stock market had closed. and there are big questions now about the future of this administration as we said at the top of our broadcast, whether the trump administration can still be considered pro-business with new tariffs about to be rolled out on steel and aluminum. let's bring in the panel to talk about all that is going on. campus reform.org media

director, cabot phillips, one and only charlie gasparino with us here in the studio and former investment banker carol roth. >> thank you for putting me through that. connell: you're welcome. >> you and ralph, i'm coming to get you. connell: you were here for your report. >> just listening to that -- i will never get back that 20 minutes of my life. connell: imagine us trying to listen to the president speak when we had to listen to you. another story all together. carol, the big picture, president didn't really talk about in these remarks, big picture, market down 300 points, gary cohn leaves. neil: this question, are we seeing something of a big shift in focus towards protectionism away from any kind of talk of free trade, away from an administration had been characterized year one as pro-business, is it still? >> i think we don't know. it remains to be seen. depend from a tariff standpoint something that ends up isolated whether in terms of geography. talking china, in terms of

industry, focused on steel and aluminum or if it broadens out and also depends on who comes in to replace gary cohn. we heard from blake earlier, larry kudlow name is thrown out there. he is very free market. that balances it out. connell: the other thing we heard from, blake, charlie, not at least now, things change by the minute at the white house, peter navarro has taken his name out of consideration in public comments. >> you know what is funny? larry is friend of mine, full disclosure. i speak to him regularly. everybody wants to be part of the game i guess, right? what larry needs to do a gut check here. if someone like gary cohn who is democrat on lot of issues, liberal, progressive, on lot of issues, on trade, if a guy like that can not be in the administration how can you? connell: same thing with kudlow. >> unpack how gary cohn left. yesterday i reported at about 1:50, one, a very good friend of

his works on wall street, more than that, they were telling people that he is likely not to leave on this that he still wanted to be part of the administration. he is not going back to goldman. he doesn't know if there is a clear path back to goldman. he wanted to be part of the game in washington. he thought he might get you there the tariff stuff, be a player, voice of reason on trade. connell: what happened? >> this is what happened. the president called him. called everybody in the office. this president says he wants divergent viewpoints. he made sure everyone of his cabinet answered the question are they for tariffs or not. connell: would they support his policies? >> would they support the tariff policies. obviously if you're telling gary cohn that he can't say yes, right? he was effectively fired. now here is where it gets interesting. if you are putting gary cohn to the test on this one thing, you are basically signaling, i think, that you're becoming much more protectionist. much more protection i in this environment is not good for the markets. connell: that is what the

president has been for 30 plus years. >> here is the thing, the difference now, that nobody rationally thought he would carry it out, nobody would believe it for whatever reason. cabot, let me get your views. the president's twitter account, last couple tweets have been about china. if the next trade action will be watched closely, it is going to be about that. a lot of people thought this should have been first, cabot. he is talking about going after china for intellectual property theft for example. >> interesting to see, china for many people is an easy enemy, especially for the administration, steel-aluminum tariff, china is not impacted by tariffs. canada and e.u. is hardest hit. look at administration -- connell: in this big shift we're trying to figure out if we are? if this is playing it simply a protection i administration from economic point of view? >> not surprising given what trump was saying throughout the campaign. this is not new rhetoric. the action is surprising. this is global thing we've been seeing. look what is happening with

"brexit." look at italy, germany. this is definitely a time where protectionism is rising populism is rising. >> this is concerning. if it was just tariffs wouldn't be the worst thing in the world obviously. not that great. is it nafta next? that is the whole thing without cohn in there. the markets are saying he is not stopping here. he is going full-on protectionist, which we never really thought he was going to do. he is is, more than rhetoric i will craft bert trade deals, he will implode trade deals. >> a really difficult time for that given fact we're facing increasing inflation. >> higher deficits. connell: is there good time for these type of policies. >> i'm a free market person. i think we grow the pie having free market trade. that is way we make america better but i'm not in favor of it but particularly this is something that could bring the growth -- connell: you guys all agree -- >> you studied it a lot.

when was last time it worked, tariffs? >> we seen it under many administrations including under bush. it was rolled back. >> reagan. >> this is what scares markets, president on very strong ground going after china on theft of intellectual property and artificial intelligence, all the sort of stuff that is the new economy. >> that kind of steal, that kind of steal you should be going after. >> that is what people are worried about. why aren't you going after that first, not this other stuff which, let's be real clear, production of steel and aluminum is done efficiently. this will not create a lot of jobs. connell: we've got to run here because of the time we took to take the president's speech for charlie. by the way. >> every word was pure gold. >> here is the big fib. connell: thanks, guys, appreciate it. take a quick break, come back, talk about, well the weather. we're getting walloped in the

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>> they're especially harmful to our law enforcement, your law enforcement. so that's why the department filed a suit against the state of california to invalidate these unjust laws and to immediately freeze their effect. federal agents must be able to do the job that congress directed them to do. connell: all right. that is the other big story of the day, the attorney general jeff sessions announcing this justice department lawsuit against the state of california over sanctuary state policies. let's talk about from the "washington examiner," commentary writer emily jashinsky. thanks for coming on. the administration think this is is political winner to take on california in this fashion? >> certainly i think they see it

that way and when you go back to 2015, 2018, three years ago, a huge part of the early days of president trump's campaign actually was what happened with kate steinle. that gave him a really early boost. i don't think any of this is surprising. the only surprise it took the administration more than a year to actually get to this level. we've heard these sentiments coming from the department of justice since the inauguration back in 2017 but honestly it's, i'm wondering whether it was sparked by what the oakland mayor did last week. session had tough words. connell: he went after, he went after her pretty hard, the mayor of oakland. >> yeah. he had serious word for her, makes you wonder whether that was the real catalyst. all right, we're slapping entire state of california with a lawsuit. not just about them passively ignoring federal law. the about california, the state, implementing laws actively subverting federal authority. connell: three of them. california has three laws that prohibit cooperation with federal authorities which is

what this is about legally. from what i'm reading, they based their legal argument on obama era case from 2010, in the state of arizona they were looking to crack down on illegal immigrants. supreme court came down, found some provisions unconstitutional. that is what acted as precedent for this, something that sets it up legally but what are you hearing how it might play out? >> that is interesting going back to the ruling. it was a mixed bag. some of the things were unconstitutional, some weren't. it is a battle of tenth amendment concerns of states, and states rights and larger concerns where federal authority can be exerted to supersede state authority. this is an important case. this is not just something happening in california. there are cities doing this around the country. other states passed similar laws. connell: that's right. >> the justice department is making a move that will help these issues be resolved all over the country, not just in california. they need to be resolved because

employers, if you talk to employers in california some are so frustrated because they don't know what to do. there are consequences if they don't follow state law but consequences if they don't follow federal law. it's a tough situation. connell: as a political situation, fairly red, blue, who supports it and who is against it, how it plays out in the midterms. president thinks they can pick up or make headway on this in certain states, right? , red states? >> that is exactly correct analysis. this is something for the progressive base, that is really energized right now, this will energize them even more. connell: that's true. >> at same time, president trump's base, they're really favorable to as well. this will be a polarizing midterm cycle. this certainly adds -- connell: you think? emily, thank you very much. we'll keep covering that, one of the big stories of the day. the other one is the market dropping. stocks are down today. there have been fears throughout about the possibility of a trade war breaking out, right? well gary cohn departure seemed

to put the hammer down that the president is serious about these protectionist policies and tariffs. down 300 on the dow, with the moment the treasury secretary steve mnuchin has been telling us. we'll be back with that. you wouldn't accept an incomplete job

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>> what you're saying is, these tariffs will not impact economic growth. >> we're comfortable that we're going to manage through this so it is not detrimental to our growth projections. connell: all right. that was earlier this morning obviously with maria, with the treasury secretary. we're down 306 on the dow. the administration certainly standing by the idea of putting steel and aluminum tariffs in place. the treasury secretary says they will be put in place. let's go to scott martin. fears rising over a trade war and we've been talking about them. what would you say, scott?

two schools of thought, this is the way president sees the world, like it or not. he talking 30 years. japan in the '80s, china. some on wall street waiting hoping he kind kind of moderates his position even with gary cohn out. we haven't seen that yet, what do you think? >> no, we haven't. i mean the tough talk is disruptive, you're right, connell. not the status quo from previous administrations from recent past. i think wall street worries about change. now overall, i like what trump is doing as far as looking out for america, but you know, this is a drastic change, so you're talking about import tariffs as net importing country here. you talk about a tax on canada or mexico what we import from them. two major trading partners. nafta comes up here. impacts to the american consumer and impact to the s&p 500 stocks. that have to be worked out depending how tough we get. connell: that is the point. depending how tough we get.

we've always had tariffs. every now and again somebody gets out of hand and you target them. in this case china, president tweeting about intellectual property probably has more broad support for that. do you read it as shift in policy because that is what it is big time? post-world war ii, we have been a free trading country, right. >> i do read it as a shift. i read it some degree at least initial overtures as testing of the waters if you will, just to see what the appetite is what we can get. the reality it's a shift. a harder line on things, stand we'll go through adjustment period, longer term if we stick to new trade policy that does benefit the person worker and maybe there is initial impact to the american consumer, reality long-term benefits probably outweigh the short-term costs. connell: that is interesting. you're, you could be talked into it? not a lot of of people in the investment community feel that way, you could be talking into

it or sounds you are already talked into it? >> we have a massive trade deficit. we sent a massive amount of jobs overseas. massive amount of production overseas. our wealth has been somewhat taken from us in that respect. if we bring changes that bring back the production and growth, that is a good more money, if we saved more money, didn't buy as many things, our trade deficit wouldn't be as bad but our economy wouldn't be as strong. >> that is not the american way, isn't it. connell: we want to save a little more but do we want to stop spending? that that never gets mentioned about it. president talks about zero-sum game, we are importing more, feels like it is more complicated than that don't you think. >> connell, growth helps everything. growth is the bottom rhine to all this. it is okay to spend. it is okay to borrow as long as you're growing an economy. connell: we are. >> so true. if those things keep going on

the way they're going, with new policies coming out, less regulation, lower taxes things we've seen from the administration, some change in trade policy could be well-digested. connell: i haven't asked you yet, i'm curious, have you changed your strategy how you look at the market because of this and if so, how? >> we prepared our investors, our clients to be ready for more volatility. by that means we're taking more precise shots with our asset allocation, meaning that days like today where we have cash on the sidelines, we're putting it to work. days where we had earlier, massive 400 point rallies in the dow, maybe we take off higher risk stuff. getting clients and investors we have, that have entrusted us with their money, just getting them ready for more bumps and bruised days as we see with reaction to the trade policies so far. connell: man, see you as us. appreciate it. scott martin. talk to you soon. we'll get through this together, something like that.

now the market is down. we've been talking about that. trade is the big story, we're down 279 still. the other thing is immigration. when the president was speaking at the latino coalition event in washington he hit the democrats over daca. in his view, lack of willingness to kind of get anything done on daca. more on that coming up next. but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪

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connell: we brought you president trump's comments earlier this hour, to the latino coalition group in washington in which he made remarks about immigration, blaming democrats for not acting on so-called dreamers. tennessee republican congressman diane black joins from us capitol hill with more on what might happen with daca. the president says democrats are dragging their feet, right? what is really happening there in washington on this daca fix? anything going to get done? >> well the president put out his plan. he has been very clear about america first and about what we do in the daca situation where the young people were brought to this country not by their will, but by their parents will illegally. we want to be sure we do kind of things we need to do. those have been out there. all of the pieces of this, in

making sure immigration is done the right way. connell: i was in washington the last time we had the immigration debate. it was on senate side, not on your side of the capitol. there were four amendments put forward, by partisan bill, grassley amendment was taken most seriously. the bipartisan side, the one that had more support was killed by the white house. didn't meet all the standards the president had set. the grassley bill, failed, got fewest votes. that is not as conservative as what you guys are considering, isn't it? if that didn't get done, how will you get something done now? >> i think sometimes timelines, pushing on timelines really what make a difference to bring people to the table. but i can tell you in the house we feel very strongly you have to do this in order. you have to make sure first of all, protecting our country and securing it. as we said for years, you have to make sure the border is secure. you have to look at chain migration, look at visa lottery program. connell: sorry to interrupt, those are the four pillars the

president talked about. >> they are the four pillars. connell: you need all of those to get daca. can't be just border security, for example, is what you're saying? >> no, it is not. what will happen, five, 10 years, down the road if we don't fix the other things we'll be back in the same situation. i don't think this is conversation we need to keep having. make sure america is first and we're securing our border and take care of the young people came to this country by their parents bringing them here illegally, not them coming here illegally. connell: deadline march 5th came and went. the courts made that somewhat irrelevant. when can we get something done by? >> i hope that we'll take this up very soon and get this off the table, bus we have very important things we need to do. connell: yep. >> when you let something like this hang on, it sucks the air out of the room and, we don't get to the other important issues. there are very important things we need to do. connell: one of the ones we keep talking about of course all the time, including today, we're

focused on economies is trade. you don't necessarily have something to do there unless you and congress were to change the law. where do you personally come down on the trade debate? are you with speaker ryan being more targeted, surgical, more on the president's side? >> i believe that the president is someone who tries to cut the best deal they can. at the end of the day we'll look at more targeted approach. we need to be sure we continue to have those companies that are dealing with this issue here in our country, that they don't get treated unfairly. so in my own district, electrolux, 250 million-dollar project, that thought, we want to be sure targeted to those areas, those bad actors, yet at same time, not hurt those we have good relationships with, because economically it can also impact us. it will in tennessee. connell: you're right, it is lee call. we'll talk about the pennsylvania special election. there is lot of support of

special measures in the steel country. you're not first republican tell us you're hearing something different from your constituents and business leaders? >> we want to be sure that businesses that i have in my district and the state of tennessee continue to be able to operate as they have in the past with good jobs. that is what is important to me. that we have good jobs in our community. we have people working hard get it keep those jobs. we can expand them. connell: what is the best way to do that? is it a, is it to punish one business, help another business be, protect some industries that have been hurt over the years, or, you know, to take down those barriers to be more in favor of free trade? what is your, you know, because everybody does have their own local concerns. so if local business comes to you in your distribute, we're getting hurt by competition here, what do you say to them? >> well i think overall, we just need to look who are our good trading partners. we know who they are. we know ones that are not, ones that dump and ones that cause us a problem.

that is what we have to do. we have to surgically target them, make sure we understand we're not going to tolerate that. connell: why the president might have more support on next trade measure related to china. congresswoman black. >> thank you for having me. connell: we'll also have more on the selloff in the stock market. we were down 300 plus. down 277 on the dow. as the president searches for replacement for his top economic advisor, gary cohn. more after the break. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. ... y not? your hotel should make it easy to do all the things you do. which is what we do.

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maria: do you think the president is in fact this is just a negotiating tactic maybe he won't end up with a 25% tariff on steel and 10% on aluminum? >> we are definitely going to end up with these tariffs and roll this out very very quickly but again there will be a mechanism where to the extent that the president wants to give waivers the president can do that. we are moving forward with these tariffs and that's the plan. >> with that we welcome you to our number two of cavuto coast to coast i'm connell mcshane filling in for neil that's the treasury secretary steven mnuchin signaling earlier the steel and aluminum tariffs are going to happen as he said very very quickly. stocks have been dropping throughout the day and have hit new lows within the last hour on fears that we really may beheaded for what we call a trade war. we have with us here to start

the hour aaron gibbs market watchers, all to use a broad term, and let me go to you first on this because the debate we've been having here is you heard the treasury secretary there's some hint of moderation he's saying well there could be places where you might get exemptions if you're canada or mexico down the line or certain types of steel but broadly speaking this is president who has been consistent on this issue. how do you interpret it for the markets? >> so for the markets when you just look at the size of what you're protecting so that aluminum and steel industry that is about one-third of 1% of the s&p 500. it is tiny, so you're creating this potential trade war and about one-third of all revenues come from outside the u.s. , so you're putting at risk one-third of all revenues for one-third of

1%. >> just to be clear your point isn't necessarily this is not a big deal because it's so small but you could be making it a big deal because it's not worth it because it's so small right? >> yes what i'm saying is you're protecting a tiny tiny portion of the overall market and putting at risk a huge amount of money. >> yes. >> so i see the risk reward here just being completely ill- logical because you're potentially creating a reward for a very small industry and putting at risk something in the order of magnitude of a hundred times more dollar amount at risk >> i get it and it's almost like the same analogy of how many people work in industries using steel and numbers are nowhere close ryan let me ask you about that because erin makes that point that a lot of people have made they don't see the economic logic for this. we could talk political arguments all day long but what do you think of the long term impacts for markets into is there really a big shift in how the united states does business so to speak?

>> i don't think there is at all and at this point one of the reasons why they pick steel because most of the market is 70 % domestic and we don't import a lot of steel from china so i don't think china cares and last week was the perfect test when the market sold off heavily after the announcement but by friday we were right back to the same levels before the announcement so i think it's a lot of noise right now. >> okay so there's two views larry i guess you're the tie breaker at least for the purposes of this panel but how do you see things? >> look i think the market sees it as a big deal and of course the markets today are a lot like the weather in the northeast and that is real messy and the forecast for both has become increasingly uncertain not just as it relates to the market but also the fed policy and we know trade is messy and we saw it today the trade deficit numbers are massive so this is a conversation we need to have. the devils in the details later this week as we find out the specifics on the actual policy. we don't want to get ahead of ourselves and assume the

administration took the stupid pill when it comes to pro growth economic policy. >> and carve out thins that may or may not be included actually we have two out out of three so ryan basically your point which is fine your point is that this is a nothing burger and we can get through this and a whole lot of talk about not a whole lot so if that's the case, why would gary cohn leave over this and i understand what the white house is saying he was going to leave anyway but timing wise he clearly left when this program was being put forward which would lend credence to the argument that he didn't really think he was going to be listen ed to on big picture issues going forward. is that fair? >> yeah i think it's very fair. bottom line is he's been happy for a while and this is probably just the straw that broke the camel's back because i think trump basically didn't take the time to meet with some of the people that he wanted to meet with on the issue, so i have to think that this was a long time coming. >> well you think that's a big deal ryan just could be we're going into less pro-growth

administration a less pro- business administration so is that an open question now with all these policies or you don't think so? >> no because i think the over riding themes are still there. we have synchronized global growth around the world and i think that's much month powerful pool than some tariff that we have, you know, that has a very small impact on the overall. >> you think it's just whether what happens next erin we think china is the next target which is targeted and surgical to use paul ryan's terms maybe get more broad support but do you think we're in a big shift and is this administration still as pro- business as it was in year one erin? >> well i think they think they're still pro-business it's just a bit miss guided. it was clear that these tariffs were meant to hurt china, but in fact the u.s. imports very little steel and aluminum from china, so i think that's what they're trying to do. they're just not executing. >> the point to be fair and the president talked about this larry a little bit yesterday the point is that steel gets dumped

on the market by china and sometimes doesn't come directly into this country, but the steel being dumped on the market drive s down the overall price, it goes to a wholesaler somewhere else, eventually comes here so their theory is if you have to have it across-the-board or not have it at at all the pushback is don't have it but what's your take? >> sure tough negotiating is a pro growth pro business policy and cohn's departure was associated with tax policy which is favorable for investor confidence so i think all evidence is the cards are still on the table we'll have a replacement for cohn whose most likely to be a pro business person so we need to give this administration a few more days and see how the policy crafts out it's still a pro-business climate. the stock market is the barometer for this administration, we have record performance all of the tools are still there we just need tougher negotiation on the global stage that's what this administration ran on and they have in place and they will play out with china and our other trading

partners. >> we got to run blake burman from the white house told us that peter navarro who was basically the opposite of whatever gary cohn was seen as has taken his name out of the running to be gary cohn's replacement or said he's not up for the job. >> that's a good thing for the market. >> right well not yet, right, not today but you mean big picture you'd rather see cudlow or somebody pro-growth. guys thanks a lot appreciate it down 344 right now. all right, what about a global divide european union doubled down on this pledge to fight the tariffs we have heard from them a number of times this week basically saying you do this and we've got something in-store for you. we have right now, the global auto maker's ceo joining us out of washington d.c. what's the risk here? talk to a number of business leaders and you're one of them. you worried? >> you know, i'm very concerned. there's significant risk here. these tariffs will raise prices on american consumers of cars

and trucks that are actually built in america. they're going to invite retaliation from our trading partners and allies and by the way they're going to erase much of the benefit of tax reform and tax reform benefits that would have been used to invest in plants and equipment are used to pay for higher steel and aluminum. >> what about the wilbur ross argument but the idea that it's relate to your business that you've got a car that's 35 grand or whatever it is and this is just a miniscule amount the price goes up. that's his argument. >> this not a tariff on soup can s. this is a tariff on steel and aluminum broadly and i'm a middle class kid from long island and it's not trivial to talk about increasing prices on cars and trucks. i think that's a significant issue. we've done a great thing, the president and congressional leadership has taken action to reduce taxes and put money back in consumers pockets and increasing the price of cars and trucks is not what we need right

now. >> what about the bigger picture our last panel we talked about china . what about nafta though all the speculation that the president is using this as some sort of a negotiating tactic with canada and mexico when it comes to nafta. i saw a report that came out of fitch a little bit earlier today saying that if we do exit nafta, which i don't think anybody is talking about but if we do exit nafta it would have a big impact on the midwestern states and also some of the border states, some of the smaller economies there. are you worried about that? not necessarily getting out completely of nafta but the changes that might be made how are those negotiations going from a business point of view? >> absolutely the nafta is absolutely critical to american auto manufactures and american auto workers. we've been winning under nafta. we make more than 1 million more cars and trucks in america made by americans than we did before nafta. this is a great benefit to the american people and to the american auto industry so we have to get nafta right. you know, frankly has --

>> just real quick what does that mean because forget pulling out say we don't do that. what might we get wrong in the way these talks are going? >> obviously in any trade agreement you've got to set the rules for content produced in the region and so if we decide that we're going to increase the content requirements so high that no current car made in the region meets them, then manufactures would just pay the tariffs or they would have to redo their supply chains, all of which adds cost, complexity, uncertainty and prices into consumers. >> that's what it all comes back to john good to see you thanks we'll follow-up. thanks, connell. >> now the other big story of the day today the attorney general out west doubling down on the administrations lawsuit against sanctuary city policy in the state of california so to talk about that we bring hillary vaughn in today she's chasing down reaction doing a good job at the nations capitol. what have you found, hillary? >> connell well sessions is ready for a show down with california lawmakers. the doj challenging california over three laws that u.s.

immigration and custom enforcement officials said make americans safe put their agents in danger and actually lead to more arrests but sessions saved his most scalding words for oakland mayor blaming her for helping 800 criminals dodge ice agents. >> the mayor of oakland has actively been actively seeking to help illegal aliens avoid apprehension by ice, so here is my message to the mayor. how dare you. how dare you needlessly endanger the lives of our law enforcement officers to promote a radical open borders agenda, and just think about the situation it puts california employers in. they want to help law enforcement. they want to do their civic duty >> i asked senator dianne feinstein what her reaction was to the doj suing her home state. she says that immigration laws should focus on people here illegally who are criminals or a

problem and that she backs the california ag's statement. >> what is happening here should be connected to the security of community or of state, and not just be done in the middle of the afternoon at a school when a daughter comes out and the parent is going to meet them and somebody comes up and says you're under arrest and that person is deported. >> one of the laws that seem challenged puts businesses in the middle preventing them from cooperating with ice agents. do you think that's fair to put business owners in the middle of the political fight? >> no, i don't and it should not in that exchange connell, feinstein ended up telling me that she actually needs to look further into that law and can't comment on that particular point i also spoke with senator john kennedy who says shame on california lawmakers for choosing which laws they think they want to follow and which

laws they don't. connell? >> all right hillary vaughn on the big immigration story of the day. in just a moment we get back not only to trade wars but there's been a theory that some throughout there from time to time that a trade war always has the possibility of leading to a real war and we do have news today that china boosted its security spending so should we be worried about that? that and more coming up. you know what they say about the early bird...

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>> well we've certainly been all over the story of this threat of a trade war, especially with china emerging on the scene at the same time china's boosting its own domestic security spending, the president aiming to solidify his power there remember he wants to stay there, pretty much, forever. retired navy captain chuck nash joins to talk about this and i mentioned before the last break happened there's this theory that the threat of a trade war could lead to a real war that's not to say there's prediction of a war with china, but do you think all these policies and all this kind of rhetoric can kind of heat things up with the global stage and give us fewer allies and more enemies? >> well, i really don't think so , connell, and the reason is

because we are the largest market in the world and in china in particular, is a massive manufacturing power. they're spending money hand over fist on these massive engineering projects civil engineering projects as well as industrial projects where the dumping comes in but they're spending all that money because they have a massive population that they're trying to keep under control and thus they try to keep them employed, so they have to have a market in which to sell and we're the market. >> and also spending a lot to the earlier point on their own security, right? >> yes. >> what do you make of that? >> that is so chinese. here is the issue with chinese. if you look back thousands of years in the various dynasties what the chinese have learned over time is whenever they are not united they are vulnerable which is why the taiwan issue is a major issue and always has been and always will be for china, until they can unify all the chinese people, that's going to be more than a thorn in their

side. they see it as a major national security issue so keeping the pl a, the people's liberation army has gone under a massive restructuring in the last five to seven years. the reason is is because before it was mostly a ground army and it was meant to keep the population under control, so as you bring up, now that president ping set himself up as leader for life kind of thing -- >> that's something else. >> yeah, but now that he's done that he's violating chinese law in essence so he really has to crackdown on his population and thus the massive security stake that's turned into a total police state in certain areas of china and will spread to the rest of china probably pretty soon. >> all right well obviously keep watching it then this whole president for life thing sfas it nateing, i guess for lack of a better term. >> my pleasure tom. >> we're about to get new information from the federal reserve top of the next hour that beige book comes out that

tells us about the regional economies how things are going how strong the economy is, is it too strong ahead of a big jobs report on friday in the middle of a big trade debate with the market down by 297 on the dow. got all that we'll be right back but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪

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>> i can assure you the president is very focused on jobs, as you know, it's his number one priority, the president is not going to do anything that creates job loss in these other areas. again, we have a thought out process, this is something we've been talking about for a long period of time. we're comfortable that we're going to manage through this so that it is not detrimental to our growth projections. >> all right that was part of the defense this morning from the treasury secretary steve mnuchin on the plan for tariffs on steel and aluminum. the republican party has been

divided over that plan we bring in south carolina republican congressman mark sanford to talk about it. you know, what do you think of that argument, congressman, that you know, the president is all about jobs. i've seen at least one study i'm not sure if there are any others that this plan if it goes into effect as its been talked about will lead to a job loss in the country of 146,000 jobs, so more jobs or fewer jobs as the president goes ahead with this? >> decidedly fewer jobs a whole lot less in the way of capital investment, a lot of bad spin-offs and we don't have to guess at this. this is something that our country experimented with a couple times before. we did it in 1828 with the so-called tariffs of obama nation is what they were called deep impacts, you know, with regard to the south and south carolina where i'm from it was advertised as to protect jobs and industry. didn't either. about a hundred years later we did it again in 1930 with the tariffs, world trade declined by about two-thirds, lost jobs lost

investment lost capital hurt industry so i mean this is not something we need to guess at. this is something proven not to work in our own history in this country and its been proven something not to work in a whole host of other countries around the globe whether in venezuela or other places that have tried high tariffs as a strategy for protecting local jobs. >> now, even i believe that was really from what i've heard had a lot to do with the 1928 presidential election and this time around we have an election not as big as that but a special election next tuesday in the state of pennsylvania so if you're representing pennsylvania would your outlook on this be different than somebody representing south carolina? in other words is this more of a local issue? >> no what's not, what's interesting is charlie dent, a member from pennsylvania, spoke at the conference earlier this week, he stood up before all of us as the republicans gathered and said this is a bad idea from hershey, pennsylvania, they make the chocolate kisses and

apparently they're wrapped in little aluminum wrappers and they said that adds to the cost, and so it was interesting to hear somebody from steel country talking about what a bad idea this would be and the way it would be a job killer in steel country. >> that is actually interesting from where you sit how big of a deal is this and what i'm really asking is are we seeing a real shift in policy and you've made historical references a number of times to something we haven't seen in this country a long time which is a protectionist outlook. years ago we had tariffs on everything but as an economic policy protectionism was something that was embraced but post world war ii its been rejected big time. >> correct, so we have about 70 years since world war ii that the tide has run in the opposite direction and there's certainly not perfect trade out there and certainly some imbalances that we need to work at correcting but the bias has served our country very well. >> but do you feel like we're going backwards to that? >> yes, yes.

>> so it's a big time shift, is that why gary cohn left do you think because this is a big time shift in focus for the administration not just a one- off? >> this is a fight in terms of how we create jobs. there are a lot of different ways in which you can try and create jobs this is a strategy that works not only by gary cohn but what's interesting is prime minister of sweden was here yesterday and he was saying it's not a good idea. our allies to the north in canada said this is a disastrous idea and if you do it to us we'll do it to you. >> do you republicans have a strategy that's been talked about paul ryan on down in that conference you were talking about to fight back against this white house what are you guys going to do about it? >> yeah, i mean, i think that we're reacting, so i wouldn't say you begin with a strategy because we're reacting to what came our way but i think the first thing is to make point, make it a very clear as to where you stand on this issue.

>> but would you be open to changing the law to give the power back to congress to -- >> in other words there's a bill that is going to be dropped here shortly. i've already gone on as a co- signer to the bill, with mark meadows and the like and basically looks at section 232 which i think in this instance is being abused under the ospice of national security, that in fact undermined our national security and what this bill does is it says no this needs to go back into legislative check and balance which is what we see in most other areas of government. >> i assume the president will veto it and then it's tough to get something like that through. >> we'll see but beginning of the process. >> congressman good to talk to you good discussion. we appreciate it we'll check back and major nor'easter in the middle of all this is slamming the northeast again and far from over. now, you know, normally if neil was here he would send me up to cover it but since i'm here doing this we have picked

someone else. we'll show you coming up, more on the storm. nah. not gonna happen.

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>> all right take a break from everything else going on to show you this. what a disaster the snow hitting the northeast again, and for all those of you who may be watching us at work, the worst could be yet to come on your way home. we have the weather bell chief meteorologist with us, do you know it's a top trending topic on my twitter right now is, joe i just looked, thundersnow. so i guess we have thundersnow. >> that is right. that is right. and well that's because there's so much upward motion air is rising so fast with the developing storm that you get thunderstorms developing and it's actually more common in march than in the middle of winter although we have had situations in the middle of winter where you have thunder snow, but this is a sign that the storm is developing very very quickly. i'll tell you one of the great things about getting old connell is that you've seen so many

weather situations and you've researched so many weather situations from the past, these things are things that you expect, back on february 8 and 9 we started warning our clients that this pattern was really going to get wild in march, because of looking at what happened, for instance 1962 i brought that up, 1958, so we're seeing a repeat again and by the way it's not over after this one , sunday into monday there maybe another storm but over the next several hours the heaviest of the snow which is now banding along i95 will come into the new york city area, the evening rush hour will be miserable and with this being heavy wet snow, it means that the trees and power lines could come down and keeps working its way up the i95 corridor for boston and on up to portland, maine. >> are these all similar? i was up in boston for that first cyclone deal we had which was a lot of snow and last one was a lot of rain but the way they form they are all similar storms the ones we're dealing with? >> well it's fascinating we're

in the last eight to 10 years of the warm atlantic oscillation. what's that? that is when water is very important. waters very warm off the east coast of the united states and was like this in the 50s and early 60s we had a lot of warm water and you saw a lot of these march storms and it's phenomenal how close this pattern is because in europe march was very very cold and in the united states they were very cold back in the 60s, so it occurs during the end game of a certain pattern where the ocean is warm and now the ocean is warm and a lot of cold air around what happens. you get these natural massive clashes along the eastern seaboard and it's really interesting. for years i used to say to myself why can't the weather be as bad as when my dad was a kid if i'd go back and look at all of the weather maps, well guess what? it's returning and it's something we have to deal with. >> it's kind of interesting, yeah, if you were in our last conversation you could have told us what the weather was like

when they passed the tariff act in 1930. >> actually, connell, 1932, march 7, 1932, lowest barometric pressure ever recorded in u.s. land station outside of a tropical storm or hurricane was at nantucket in the great storm there, january 1913 it was in new york also, so yes, i do know those. >> stuart varney was telling me he covered both of those. >> [laughter] >> anyway all the flights that are canceled today, this nor'easter threatening as joe pointed out the real threat of it is that the power could go out for some people which was a big issue last week. now normally neil was in i'd probably be out covering this neil would say go out and cover this and my good was to have gasparino do it which is a hoot but instead deirdre bolton it's on you. >> about an hour ago this kind of looks like a couple flakes, mostly rain but as you can see,

it is coming down and in some places in the northeast, we've heard meteorologists say we could get up to a foot of snow so the governors of massachusetts, new jersey, new york all declaring a state of emergency and as you can tell it's really coming down so you mentioned those cancellations. we have a shot of jfk right now to show you more than 2000 flights have been canceled jfk accounts for about 40% of the canceled flights if you like, tomorrow already a lot of flight s being canceled particularly out of boston more than 200 and in fact newark as well accounting for about 25% of the cancellations so far. i want to make the point though that the airlines are trying to help travelers, so between american, delta, united, they're actually offering travel waivers , so a one-time without fee change basically you can change your ticket even if your flight was not canceled. also want to let you know people

know what's going on with amtrak in case people think that amtrak is easier, so no normal schedules. if you have an amtrak ticket at the very least just go to their website because no normal schedules are running at all. there's more than 50 trains that have been canceled running up and down the northeast and they are running a modified schedule and of course connell you mentioned power. as of this morning so before any of this precipitation, more than a quarter of a million people still had no power left over from friday, so obviously today is probably getting worse as we speak back to you. >> did you know you're covering weather today because that scarf is serious. this just says please send me outside, please. >> exactly they saw you walking in we'll have deirdre do it. they are like do you know what she's the right person. >> well done, thank you deirdre, we'll get away from the weather back to tariffs it's the way we roll around here tariffs and weather and there is the president and his tough talk on tariffs, maybe timed for a

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>> so, president trump's steel tariff talk in the steel tariff

that's about to be rolled outcomes just in time for a crucial congressional race out in pennsylvania, steel country i'm actually going out to cover it for fox business next week, we have real clear politics co- founder tom bevin with us and one of the things talked about thomas you know is i tried to show off that i've read an article or history book by making that 1928 reference to the 1928 election for the 1930 tariff act that in this case, something similar maybe politics of driving it and the politics of steel in pennsylvania the republicans and democrats tell us about the race. >> well as you mentioned, i mean this is steel country and this is a district that trump won by 20 points that republicans are having an awful time keeping a hold of. they spent a ton of money there. conor lamb is a good candidate on the democratic side a veteran former prosecutor, young by, republican and democrats like the campaign he's been running, and so into this mix, here come

the tariffs and again this is a district that has a lot of union households in it, and again households that voted for trump and but as we've seen in these special elections democrats are energized this is going to be two pools coming out in the first week of march, one has conor lamb ahead by three points one has rick saccone ahead by three points. >> i guess they both the tariffs come from a republican president , saccone's claim to fame in all this is a state legislator but he was i was trump before trump he's been quoted saying that so do the tariffs from trump help him or lamb can say i support that too and it's kind of a wash. >> it's probably more of a wash, but look, you know, it's hard to quantify how much this is going to help the republican candidate given the fact that trump is going to be there trump is going to talk about the tariffs, trump is supporting saccone, but trump has gone in other races and supported other candidates and it hasn't worked out that well so we'll see. it's hard to quantify certainly

can't hurt him in this district what republicans at large are concerned about is whether the tariffs will hurt them in other races around the country in november, if in fact it causes an increase in prices and sort of wipes away the tax cuts which they believe are really helping them right now by putting more money in peoples pockets. >> what's your read on that what kind of conversations you been having the last couple days i notice even when the vice president goes out to speak he's been on the road a lot at campaign-type events and talks only about the tax cuts and even the president today when he was out in washington tax cuts got into a few other issues but nothing on this how worried are republicans about the political impact? >> well, i'll tell you what they are going to be a lot more worried about it after next tuesday if they lose this seat. >> right. >> they had said -- >> that's true though you get the tariffs and you still lose in pennsylvania of all places. >> yeah. >> correct, i mean, this race, i mean even if setting the tariffs

aside this race has a lot of implications for both sides heading to november democrats are going to be, there will be panic in washington on the republican side and glee in washington for the democrats if they manage to take this seat again because this is trump country where he won the election, so republicans are pretty worried about it. the tax cuts have become more popular and are trending more popular even as we head into tax season, so we'll see if that ends up being a net plus for them in the end. i think the talk pre-tax cuts was more blue wave in other words the democrats could run the table and take both the house and senate maybe and then the tax cuts came into your point and as they grow in popularity, the congressional ballot, the generic ballot getting closer but now are we back to this blue wave talk are the democrats getting more and more confident of people talking about texas this week? >> well certainly the blue wave did not show up in texas based on the primaries yesterday, but if you look again broadly speaking, the real quick politic s average for the generic

congressional ballot which is that measure, if it were held today who would you vote for democrats were up nine points and they were up when they won 30 house seats and only need 24 right now to retake control of the house of representatives so, you know, i don't know if there's a big blue wave or maybe it's a little blue wave, they may end up falling just a bit short but democrats definitely have the enthusiasm on their side for some of these house races around the country which are by and large fought in the suburbs. >> let me ask you one question i asked this to mark sanford the congressman on but do the republicans have a plan to counter that is it a legislative plan to shift to something else or just try to keep the focus on tax cuts and not so much trade, i mean what's the republican plan? >> that is the plan. it's focus on tax cuts and, you know, the other things that they can to the from the administration, the deregulation the judges, those are the kinds of issues that republicans are going to focus on because

nothing gets done in congress this year and some of the other proposals that the president has whether it's tariffs whether it's the infrastructure will add to the deficit and republicans are willing to look the other way on the deficit for these tax cuts because they wanted to have something to take the voters in and that is what they're hanging their hat on. >> the tariff issue is just tough for many of them because they have gone on the record against it and the democrats won't support anything the president is in favor of so it's a tough political argument. thank you very much for coming on. president trump, you know, earlier today was at this event and he called out the democrats over a potential daca deal. he's done this a few times recently. listen to this. president trump: we're trying to have a daca victory for everybody by the way and the democrats are nowhere to be found. >> nowhere to be found well we found texas democratic congressman who joins us now in a potential daca deal. what do you make of the president's comments congressman

>> well he needs to look at the right places to find the right democrats to work with him. certainly, you know, we want to work with the administration to find a solution to daca but look at the three proposals that have fell in the senate one was the trump proposal that didn't pass the other one was the bipartisan proposal didn't pass, i think senator flake tried to do the three-year, three by three proposal that didn't pass, and i've been in contact with my friend, chairman goodlatte maybe we can find something to do in the house, but again, there is ways of doing this that if we can sit down, hopefully we can find a solution to daca. >> isn't that bill that you referenced that goodlatte bill more conservative than the grassley amendment in the senate which failed or has it changed? could you guys support it could you see yourself supporting what they are talking about in the house? >> again it was drafted without any democratic input and if they want to pass it through the hastert rule which means the majority of the majority without any input from democrats then it might be hard to get any

democrats on, because again, bipartisanship basically means let us sit at the table and negotiate some language, not have a bill, come in at the end and sign on to the bill that's not my perspective of bipartisanship. >> one of the things to talk about earlier one of your republican colleagues on is you guys for better or worse seem to always operate on deadlines and we thought for a while march 5 would be when the courts came in and said that's not important for various reasons we've moved past that, so now what? i mean that's fair right that congress looks at a date and says we've got to get it done by then because it's a deadline, is there a new one you're looking at and maybe a timeframe we could work towards? >> i think my colleague was correct, congress is not very proactive or doesn't move in strategic ways. we work from crisis to crisis and when a deadline is taken away from us basically the supreme court did that when they told the trump administration follow the regular legal appellate process, that took it

was a double-edged sword. one it gave the dreamers a little bit of time relief but at the same time it took the pressure off congress the deadline to come up with something. >> what did you make of the case out in california with the justice department suing the state over its sanctuary city policy jeff sessions made a speech out there. >> again it's an issue up in california. i'm one of the democrats i don't believe in sanctuary cities because just simply in fact i don't have any sanctuary cities in my district. my brother is the border share down in laredo, and he honors those, so i don't believe in sanctuary cities in the first place but again, unfortunately there are people in two different sides that probably have to figure this out in the court setting. >> while i have you here before we wrap this up, you know it is kind of i was talking to tom bea vin and just mentioned in the passing what's it like in texas now for democrats?

is too much being made of that this week that there's certainly suddenly a resurgence of the democratic party in texas and they might be able to take on say senator cruz? is that getting overblown or are you feeling it as well there's something to it? >> look i've seen texas when it was dark blue, when i started off years ago in the state legislature and i saw the transition to a red state. i think what we had is we have a lot of enthusiasm in the state of texas in fact if you look at it, during early vote there were more democrats than republicans but on election day, the republicans make that and ended up with about 450,000 and again it's early. we got to see what happens between now and then, but as a democrat there is enthusiasm out there in the state of texas. >> it's anti-trump? >> well i think i wouldn't say just anti-trump it's just basically try to provide balance when president obama was there

the american people wanted to provide balance and they elected a republican congress and i think the american public if you look at the history the historical trends that we've had where there's a certain president they like to bring in another party to provide balance to the process of the administration is bringing. >> last thing, the president's getting pushback on his own party on this trade policy it would seem to be something more democrats would support, do you? >> i don't. i don't. i think it's a mistake for any country to setup trade barriers, we saw what happened in the 1930 s when we did that and it was not good for the united states, it was not good for the world economy and i hope we don't go there. i disagree. thank you congressman good to see you, joining us from capitol hill. there is news coming in on the florida grand jury formerly charging nikolas cruz, 17 counts of murder in the mass shooting in florida just breaking at this hour. more after this. think your large cap equity fund

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connell: coming up here top of the hour, we'll get information from the federal reserve. waiting on the beige book. the dow is down 240 points. a lot to look forward to. you never know what is next. sarah sanders will have the white house briefing as well. maybe more on the trade story which we've been covering. interesting day after the gary cohn resignation. we knew the markets would be worth watching and they have been. trish regan with the beige book and more through the next hour.

>> bet i am. thank you, connell. we are minutes away from the new report from the federal reserve which may provide a little insight into the health of our labor market and our overall economy. as stocks continue to sell off, we're a little off the lows of the session on the heels of that the news that president's economic advisor gary cohn has resigned. he announced his resignation from the white house, signaling the administration will move forward with its proposed tariffs for trade. what does that mean for the market? how does it affect investments? investors contemplating on that. they tend to overreact, that is part of overreaction you're seeing. 240 points down. perhaps some come in to scoop up buys. we'll talk a about the next hour about tariffs, we need them. whether they can impact china such a way that will level the playing field for us, for american workers and for

american intellectual property. which let as face it, has been stolen to the type of 200 plus billion dollars a year. i am trish regan. welcome, everyone, to "the intelligence report." let's go straight to the beige book now. >> the economy is expanding at a modest to moderate pace. that is slight downgrade in language from solid in the january federal reserve statement. manufacturing is also strong. the fed is observing mixed consumer spending across districts. several districts experiencing worker shortages for qualify workers and wage growth picking up at a quote, moderate pace. a key quote from the federal reserve beige book. economic activity expanded at modest to moderate pace across the 12 federal reserve districts in january and february. consumer spending was mixed as non-auto resales increased in just over half the districts while auto sales declined or were flat in every distribute. some other headlines, employers