thank you very much. >> make your way out, please. >> what do you mean by that? >> make your way out? >> basically. i will take that. it's fine. we have defense is so important. we need aluminum. we are negotiating with mexico. we're negotiating with canada and the nafta and depending on whether or not we reach a deal, also very much involved with that national defense. but if we reach a deal, most likely we won't charge two countries the tariffs. we have countries very much involved with trade and also on military, and working together with military. we'll be making a decision as to who they are? we have a very close relationship with australia. we have a trade surplus with australia. great country, long-term partner. we'll be doing something with them. we'll do something with some other countries.

we'll be very flexible. at same time we have some friend and some enemies where we have been tremendously taken advantage of over the years. on trade. and on military. if being you look at nato, where germany pays 1% and we're paying 4.2% of a much bigger gdp. not fair. so we have a lot of, a lot of things going on with general with nato because of my involvement. we have taken in $33 billion more within the next, year-and-a-half, they expect to have taken in $33 billion more and, mr. stoltenberg, who is running things is very thankful. he said it is incredible what's happened since we became involved. and i became involved by complaining because it was not fair. we were spending 85% of the money and frankly, food for everybody, but helps them a lot

more than us. helps europe a lot more than us. we look at the military equation too. general mattis, it is very important for him and me to maintain the great relationships. at the same time we both want fairness and we view the trade and the military and to a certain extent they go hand in hand and a lot of progress has been made. i'm very proud of nato, because when nato when you see the kind of money that is pouring in, it was never going to come in, people were delinquent, countries were delinquent, they weren't paying. now they're paying. not all are paying fair amount. some owe billions and billions of dollars of money. they owe billions and billions from past years. they haven't paid it. that is not fair. they want us to protect and want us to be a good partner. then they're delinquent on payment or they haven't made payments, or they haven't made payments which are fair. so we're looking at all of those

things. we're talking about tremendous, massive amounts of money. but that goes along with trade also, because we're looking at defense. but defense is very much also a part of trade. so we're going to be very flexibility. but as an example with mexico and canada, we'll be throwing nafta in. we're negotiating nafta right now. i think we're doing quite well. it was always my feeling that i would terminate nafta or renegotiate it, one or the other. i guess renegotiating would be easier but we'll perhaps coming up with a deal on nafta fairly soon. or we will terminate nafta. and we'll start all over again. okay? thank you, very much. everybody. thank you. [shouting questions] [inaudible] >> 10, 25 initially. i will have a right to go up or down depending on the country. i will have a right to drop out countries or add countries. we want fairness, because we

have not been treated fairly by other countries. thank you. thank you very much. thank you. thank you very much. connell: live coverage of the president's cabinet meeting in the white house as played back to us on the fox business network. that happened moments ago, plenty of news came out of it. i'm connell mcshane filling in this week for neil cavuto. we welcome you to "cavuto: coast to coast." we're watching a number of breaking stories including the ones you just witnessed. we'll see how the market reacts to all of it. investors are trying to figure it out. we've been up and down wall street as the president meets with his cabinet ahead of meeting this afternoon on aluminum and steel tariffs. we start the show every day with blake burman at the white house for the debriefing. interesting to watch all the meetings, particularly this one, because a lot of news came out of it. start where you will, blake. reporter: 19 you heard from the president. the most important thing you

heard from the president, connell, the last 20 or 25 seconds of it. there will be a 25% tariff on steel, 10% on aluminum, but it could go down or it could go up as well. the president also saying that some countrieses could be added to it, essentially kept on the tariff list, or some countries could come off of it. the president saying there are multiple times that he wants to be flexibility. that is a word he often uses. the president trump revealing this afternoon whenever official document, signing of this is released, he does intend to be flexible. the president also reiterates there that canada and mexico could potentially avoid these tariffs if there is a fair renegotiation of nafta. that of course is a major if, as the renegotiation of nafta is a large component of it all. what might we hear from the president at 3:30 this

afternoon? there is an event that wasn't on the official schedule that was added though as workers from the steel and aluminum industry from all across the country are coming to this event at 3:30 i'm told. what might we hear from him, connell? i have no clue. no idea. we have heard a lot on both sides from the white house today. connell: right. reporter: might he sign something officially? possibly. might he not? he called this an economic meeting. might it just be him laying out his stance? possibly. connell: can i ask you about that? is it an issue where the lawyers have to work through the deal? reporter: lawyers are working through this. the lawyers are working through this as much as the president wants to have this happen this thursday, he made in impromptu session, the lawyers have been working on better portion of a week, they have to dot the is and cross the ts as sarah sanders said during the briefing

if it goes through legal challenges. folks on capitol hill, republicans especially, do not like this. if they over turn with a law. they have to have this buttoned up and that is what the lawyers are doing right now. connell: the other thing i brought out, we're negotiating with canada and mexico, we come to a deal we likely won't be charging the countries those tariffs. he went on to talk about and specifically mention australia and then other countries. do you know anything about the process here? everybody is in at first and then you apply to see if you can be exempt? reporter: not sure exactly, if, you know, if any certain countries will be singled out in the document that is produced at 3:30 this afternoon or at some point. that is certainly something we keep an eye on. by the way, connell, of note, the comments about gary cohn. connell: oh, yeah. reporter: i reported yesterday morning that the door is not shut whatsoever on gary cohn

potentially at some point down the line coming back to this white house. and you just heard that from the president there a little while ago. leaving the door very much wide open. connell: you may be a globalist or he may be a globalist but i still like him. i have a feeling you'll be back. what a world. blake, thanks. we'll check back. plenty of of guests been here for neil speaking out against the plan. we welcome the former nucor corporation ceo. thanks for coming on. i heard you had a chance to hear the president's rationale and few moments ago and throughout the work. my first question for you, big picture basis, a lot of people came in, business executives, even members of congress, republicans, democrats, this is not a great idea for everybody. we know how it might help a steel company but it is not a good idea for the country. why is it a good idea for everybody, not just your old

company? >> it's a good idea for everybody, because it is issue of national defense, national security going forward. there is no country in the world who has any significant military might and strong national defense that doesn't have a healthy steel industry. if you don't believe me, just ask the chinese, who 15 years ago decided it was so important that they needed to make it strag gibbing industry -- strategic industry. hence they did a market economy with billion tons of new capacity, and entire demand in the world is 1.6 billion tons. connell: can you explain the industry for me a little bit because we're catching up to something you've been doing for years. hey, we make 70 some odd% of our steel here in the united states even though we would like that to go up f push came to shove, we're in military situation, dealing with a war, we could ramp it up here, in other words

is not a national security issue. why is that wrong? >> that is so terribly wrong. you can't ramp up something you don't have. over the last, since 2008, the return on investment capital for the steel industry has been close to negative, okay? , negative. in order for capital intenstive industry like steel, chinese get this, so does everybody else in the world, in order for capital intensive industry like steel to be able to survive and be there when you need it, you need excess of cost of capital, factor of two or more cost of capital. the industry, even the biggest, most important, excuse me, the most profitable in the country are earning 50% of cost of capital. that is not sustainable. connell: tariffs are close? these tariffs will get you there. >> well, listen, the tariffs are a start. they're on top of other things that have been done over the years. >> right. >> i think the biggest, important thing people need to take from this, why it is good

for everybody is because this is part of a overall strategy of the president has talking about since his campaign days. trade reform was part of it. start off with tax reform. trade reform, regulatory reform, industry reform and infrastructure this is cornerstone of his overall policy. together they have a huge synergistic effect. if you do not stop the trade cheating going on all over the world it will undo the benefits of tax reform and everything else earnings that was the case in favor, it was shorter than we would like because we have to take you short taking the president's comments. >> come back anytime. connell: we will. as president was talking to blake about it, at end of comments in the cabnet room australia and other countries along with canada and mexico. bring in from the

"wall street journal" chief economic commentator greg ip. thanks for coming on from washington. i know you had a piece that the president was alienating our allies in the needed trade fight against china, which is part of this, certainly part of the next round we think of trade negotiations but now he says, australia and quote, other countries could be except. canada, mexico and some others depending on the criteria. does that alleviate some of your concerns? >> yes i think those, i think the president is showing important flexibility on that issue. flexibility was urged upon him by his own advisors including by gary cohn and the industry. he talked to a lot of steel and aluminum industry, saying we don't consider canada, a lot of other countries part of the problem. if you look at the commerce department analysis of the problem, really only one country, that is china. they are overwhelmingly major source of new capacity in both steel and aluminum last 10 or 15 years.

connell: right. >> the irony of the action president took it largely spares china because it is already underbasically special retaliatory duties by us. it is a action that hurts our allies, countries like canada, european union, japan, liberal, market-based countries. connell: wilbur ross, argues steel may not come directly from china because they're dumping it cheaply on the market, it is affecting price. the term they use, transshipping it. goes through another country and comes in. their arguments for across the board tariffs. maybe the president is backing off on that but is that economically sound? no that is legitimate concern that goes on. chinese companies will disguise the ore or metal and sent to another country send in disguise to the united states. it is a legitimate problem. the united states is not only country with a problem. the european union has been come training about transshipment as

well. why not basically cooperate with the countries that have same problem with china create a united front. a year ago in the dying days of the obama administration the u.s. brought a complaint against china about their aluminum subsidies. they were joined in that complaint by russia, european union and canada. that was a golden opportunity to form, as i might call it a united front on a common problem. this administration -- connell: i mean bush 41, iraq war type thing, you're building a coalition. >> that is exactly, that's right. as in trade in military matters you look around for countries that are your natural allies, on trade versus china, our natural allies are countries that share our shared market-based principles. that include countries like japan, european union and canned day to the last point the president took a step toward your position today? >> i do think he did. that is very important. it is still pretty conditional. only heard 30-day exemptions. i think if national security

really is your concern, you can't just think about oh, we have to make it all in the united states. you have to think about what countries can we reliably rely on to supply us and deal fairly with american producers. connell: thank you for coming on. >> thank you. connell: greg ip in washington for "the wall street journal" the market as weave been talking is selling off. we're right around the lows at 82 points lower on dow jones industrial average. we'll talk more about that coming up. we also have a war of word developing over sanctuary cities, something we've been talking about throughout the week. president trump for example, weighed in on that, the cabinet meeting. the legal fallout from all of that after this break. ♪ my mom's pain from

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patrol. very dangerous. she really made law enforcement much more dangerous than it had to be. connell: all right, that last comment was just moments ago. president trump and his cabinet meeting certainly heading back at the mayor of oakland after she lashed out at attorney general jeff sessions. fox news senior judicial analyst, andrew napolitano, the judge, who is who and what is what out in california. we have the lawsuit. the department of justice is suing the state of california over sanctuary cities policy. we have the -- >> i think they're both right. the mayor has right to say what she wants, is what the president said and characterized it, extremely dangerous, profoundly unwise. connell: illegal? >> no. no. because the statute prohibits harboring, hiding, secreting immigrants whose presence is -- connell: what do at that mean? >> doesn't prohibit speaking to them or giving them guidance. connell: what is harboring.

that is exact lay what wee zoo doing. >> harboring, putting them in the basement of the mayor's house, denying they were there. that is harboring. she could be indicted for that. connell: not standing in the way of federal authority. >> for her to say they're coming, if you want, we have plenty of lawyers for you. if they don't have a warrant in their hands, close your door. she is giving sound advice. the lawsuit, two statutes the doj attacked. one is the state of california prohibits anybody works for any state, county or local government from cooperating with i.c.e. the state can do that the state can regulate its employees. they can't harbor but they can refuse to cooperate. why? because the federal government can not commandeer, take over state officials an make them enforce federal law. they can't actively interfere with enforcement of federal law but they can't be compelled to help the feds enforce their own law. connell: under any circumstances? >> we're not talking about a war. not talking about the civil war. short of violence, short of a

domestic disturb answer or inner recollection, under any circumstance, yes. connell: if immigrants are part of a violent situation, investigating a crime, does that change? >> the state can look the other way but it can't hide them. connell: go ahead. >> remember the feds have plenty of assets and plenty of resources. they would rather have the state at its own expense help them than bring more federal resources in. the second statute, this is very troublesome, connell, this prohibits private business owners, private business owners, bookstore, restaurant, from cooperating with i.c.e. i.c.e. comes into your business, shows you pictures, you know these guys? if you answer yes or no, you could be prosecuted and fined by the state of california. that is punishing free speech. that is profundly unconstitutional. in my opinion will be invalidated as soon as federal judge sees it. >> that is the one we should be focusing on? >> absolutely. the state of california in its mania to protect undocumented aliens, mania to have everybody

have the same progressive, left liberal mind-set, is telling private business owners what they may and may not say to the government. that is absurd! connell: that is interesting. on the one hand governor of california, jerry brown is out there saying that the attorney general jeff sessions essentiallying doing this for politics, like a political stunt of the you could make the opposite argument as well, that the other side ising doing it for politics to get votes out in california? >> when i saw jerry brown, i thought of the song i forget who wrote it, still crazy after all these years. he hasn't changed at all! connell: cracking himself up, the judge. sorry. i would have laughed. i thought it was funny. you don't even blink. he was there, first time go around was years ago. >> he was a third of his present age. god bless him. connell: god love him. >> a pleasure, connell [laughter]. connell: telling the joke, laughing before everyone else. sign of a good comedian.

a sign of good timing. the president considering another round of actions against china, right? this could be the big one. we talk about steel and aluminum. china on intellectual property, that could be the big crackdowns. we'll talk about what it all means, what it could mean coming up next. sleek. maybe the most impressive part of the all-new traverse... is what's on the inside. surprise! what are you doing here? i've missed you guys. i haven't seen you guys in so long! what's happening? we flew her out. it's a family car, we had to put your family in it! yeah, it gets 7 thumbs up!

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connell: obviouslily steve and aluminum tariffs have people worked up but could be small potatoes what is coming next. president trump is eyeing a crackdown on china for something different, intellectual property theft. that is much bigger deal. adam shapiro with latest update. >> we ex-poured $130 billion worth of foods from china. we imported $530 billion worth of goods. the in august last year, ustr, robert lighthiser is

investigating the theft of intellectual property. we're told by outside advisor to president trump, that the draft report is done and administration is considering tariffs that they would announce at end of this month with china. expectation from analysts that would be big retaliation from china if we follow through. here is what president trump tweeted as we get ready for latest rounds of tariffs. quote, the u.s. is acting swiftly on intellectual property theft. we can not allow this to happen as it has for many years. when you consider how much trade between china and united states, there is a great deal at stake. it was robert lighthiser, the ustr, over past several months talked about need to crack down on china. the united states for many years has been facing a serious problem with china. this is one thing on the plate. but analysts worry that lighthiser could use power under the 1977 economic emergency powers act to create what they call a reciprocal trade regime.

that would ignite a very big trade war. here's what analyst, clayton allen, vice president at height capital markets, had to say about it. >> as china limits investments into its companies u.s. would limit investment in a similar fashion. if you're talking about trade war, 232 is artillery barrage, that is a tactical nuke. that is something that has much larger impact and much longer term impact on markets. reporter: 232 is the authority president has right now to do the steel and aluminum tariffs but again, the analysts consider that the opening salvo. what they're all talking about behind the scenes are these much bigger, tariffs or implications, should the united states move forward with tariffs against china to target the theft of intellectual property. that is what is coming at the end of the month, according to the outside advisor to president trump. connell: that is good reporting, adam. he has till august, my

understanding of it since they started investigation. coming up pretty soon here? reporter: administration has the draft report. it is being shared within the ustr but the administration is considering retaliation and response this month. connell: that's big. adam thanks. adam shapiro in washington. let's talk about this a little bit and potential backlash. congressman dave maney with us in the studio. something adam is talking about, the steel and aluminum thing, us included has everybody worked up and talking about trade but this is the big one, china, intellectual property. what do you make of it? >> i think it definitely is. we're moving to an economy powered by creativity and innovation and knowledge. it is not powered by steel. connell: right. >> the steel thing is the flash bang grenade, right? i will throw the thing that is flashy first. connell: yeah. >> it would have been nice if

your was more targeted after flash grenade. connell: this is more targeted. going after china. there is not much debate they are guilty of intellectual property theft, right? robbing us blind of billions and hundreds of billions of dollars estimates for years. as adam reporting as analysts said, what do you do about it? how strong can you be. what does china do in response? >> much slippery topic. ingot you can hold in your hand and code, underlying basis, look and feel. intellectual property is a vast umbrella. you want intercept it at the border. it is a much harder thing to put your arms around. connell: every single person agrees china is doing something wrong. all debates about the merits of

tariffs. what do we do about these type of things? >> i think the president is doing right, something analogous what is going on with north korea. which is there is tough talk with a feeling of possible action. he is known to be a great fan of richard nixon's madman theory, make them think i'm crazy. then send in the reasonable guys to do the negotiation. i think there is a piece of that going on but, you know, i also think there's this long-standing history of the president's fundamental misunderstanding of what -- connell: simply long-standing history. some agree. some disagree. you obviously do. he has been like this for years. and you know, you talked in the past about making analogy to our minimum wage debate i think it is interesting. another economic debate we have all the time. people get stuck on it. you think this is happening again. >> it is absolutely happening. here is the same or how like minimum wage thing. people on the left or those

adherents to more left, economically say you can change this one thing. we can require this one thing and everything else will stay the same. so we could require that you have to pay workers $15 an hour, trust me, prices -- it is just baloney. connell: right. >> here is the same thing. we can slap on 15 to 20% tariff and nothing will change. that is not true. you will tick people off on the other side. you will cause prices to jump. it sets off as you know a giant change reaction. connell: that is the fear. >> unanticipated events which happens to the left every time they make a change like that. here is president who anomaly stand on the right i can laser shoot this thing. connell: the other thing people identify with the arguments in similar fashion. look at someone working in the fast-food industry for example, whatever industry paying minimum wage, you say in your heart of hearts, that is to the fair. they quote, deserve to make more. they don't make a living wage. you identify with that when you

think about in terms of economics the thoughts might be different. a tough argument to come back against is my point. >> yeah it is. except that, you go back to the thing that all things in economics are interconnected. you can not change one without the other. it is like a balloon. you squeeze it here. you might want to say i want to compress it but that little bubble pops out on the other side and that bubble is usually not a good bubble. connell: i hear you. where do you think trump is this? we heard him in the cabinet meeting talking about exemptions going back to steel, aluminum for canada, mexico. he mentioned australia, mentioned other countries. maybe he is softening a little bit. adam tells us the china thing could be real serious in amount of dollars added to that. where is he? he is protectionist for years. so he really believes in this. been my point all week long. do you think he moderates a bit? >> look. i mean, my gut says we could use on this intellectual property

thing we could use a little stiffer spine. connell: right. >> like a little bigger baseball bat. i think he is bringing that. i don't think he aims at strategic level that richard nixon did. so i'm a little bit less comfortable with that. connell: maybe he should have done that first. we argued with tax cuts at the time. you should have went that instead of health care first. timing sometimes matters in politics. good to see you, dave. good discussion. in a moment the president's policy igniting a recharge for another industry? we could be talking about steel or aluminum. we'll talk about steel coming up. what it means for everybody else. more "cavuto: coast to coast" straight ahead.

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connell: back on

"cavuto: coast to coast." trying to get both sides of the tariff debate. there is news that u.s. steel and aluminum makers are firing up old mills they used to have, to bring back workers to work in those mills, in anticipation of higher demand from the tariffs that is the positive effect of all of this. illinois rublican congressman mike boss joins us. it is happening in your distribute. tell us about it. >> it is happening in my district. three years ago, as a matter of fact after i was elected to congress, u.s. steel announced they would turn down the production, a plant working since the 1880s in that granite city location. they turned it down. we fought everything. put new rules in to deal with the wto, all at faster rate to deal with illegal dumping but when the tariffs were bounce and and talked about, yesterday the announcement was made. they're bringing 500 employees back. they had some back already. now 500, firing up one or two

furnaces. it is very positive. connell: couple things, number one the president is talking about exemptions, canada, mexico, australia, possibly other countries. does that affect things in your view? >> no, let me tell you why. when we saw, i was in meeting with him on steel issue early on and report came out and recommendations were there, he chose, what he was talking about item 3, which is the all countries at a set level that he is proposed of the item 2 is a actually select countries and specific on what metal or what steel we're talking about. i think that is probably the safer and better approach. connell: okay. the type of steel? >> type of steel. for instance, what we have is, and that is why 232 actually works. 232 works because this steel is used for oil production. it makes tubing for, if we're trying to become self-sufficient -- and things would happen, we would be dependent on totally on korea.

connell: okay. >> however the other item out there is, we're concerned about, is there is wire production. that wire production goes into "transformers." there is only one plant left making that. if that would shut down, all of it comes from china. we can't be dependent on other nations for things like our power grid. connell: right. >> that is why 232 is very wise. i think celebrity -- celebrity tiff decision would be better going that. sheer statement is putting people back to work. connell: national security argument. >> you bet. connell: let me give you pushback on this as you know comes from many in your own party. the simple argument, is, we understand, congressman this can help some but helps few at the expense of the many. many people in your district don't work for the steel industry. >> sure. connell: you heard the numbers, far more people working in industry that use steel and -- >> we also hear from our

farmerses as far as trade war. nobody wants a trade war. that is why i believe going to a specific, which countries and limit what products. then it makes it very difficult to drive yourself into a trade war. at least i'm thinking that. connell: they're coming back in europe. talking about tariffs against some of our products, by the way, targeting, described in one of the papers this morning being shrewd. they are. they target products made in swing states that are going to be near and dear to some republicans i think? >> here is what we have to look at. they have been cheating, china, korea, others been cheating for years and they move around. this send as message we want fair trade. i don't disagree with the president on that. many of my colleagues want the jobs too. we'll work together. i think the president has done the right thing. he sent a clear message. the question is where he really

goes with it. i think the president sometimes makes statements and comes back and retracts not to severe level that he is. connell: this issue he has been consistent, we were talking about it a few minutes ago. this is kind of his issue. >> yeah. it is his issue. as we argue back and forth i can tell people, when 500 jobs come back after they have been gone three years i have some very happy people. connell: sure, people that have those jobs. what about the other side, if you bring back 500 and lose 1000 meantime in other industries? >> we'll watch as we move forward but we need to make sure everybody gets lifted up. we have, like i said, when we talk about 232, anybody these are for security reasons this was done. it has got to be, we got to remember if we become depend end on countries for power grid or fuel supplies we could be in trouble if something breaks out. connell: i have heard a fair amount of skepticism to the argument, people making the case, you know what, we have

enough steel in the country we can ram it up if we could. the former nucor ceo said -- i heard a lot of skepticism. >> here is the thing with that. you don't ramp up steel quickly. we know for a fact even with them saying yesterday they will turn this up, it will take four months to get that furnace up an firing and working again. that is what you have got to realize. if something broke out fast we have to have our own supply of steel. connell: congressman, thanks for the time. good back and forth an discussion. >> thank you. connell: very interesting economic issue and important issue certainly for people in the congressman's district. in a moment president trump's other item the meeting with videogame executives. you heard about this. this is coming up in a little over an hour after the florida shooting. we'll talk about the connection between violent video gapes and actual violence in terms of people that play those games. we'll talk about that ahead of the meeting when we come back.

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connell: business alert. one of two back-to-back, big stories today. amazon targeting low-income shoppers. new discount to prime members gerri willis is looking into. she joins us now. what is the deal, gerri. >> connell, that's right. amazon offering discount prime

membership to medicaid recipients as they target the fastest growing segment of online shoppers, low-income americans t would be 5.99 a month. prime is ordinarily the cost of 12.99 a month or $99 a year. for that members get free two day delivery. rival walmart has come to dominate with $13 billion in sales of shoppers using snap. according to "the wall street journal," walmart was responsible for 18%, 18% of the money spent through that program last year. the senior equity analyst at cfra research says he is not surprised to see amazon go after business that has been dominated by walmart. amazon and walmart have been going head-to-head in e-commerce all the time. they try to one up each other. amazon ted not return the request for comment. brick-and-mortar store base, recipients that shop for cash and use a snap card.

because most snap users have cell phones. and companies like ups have been adding pickup locations with lockers, amazon can now serve this demographic. connell, back to you. connell: every day we have amazon story and that is the one for today. gerry, thanks. health care merge hears been announced cigna plans to acquire express scripts. $67 billion when you include the debt. lauren simonetti joins us with details on that. >> connell this is another amazon story for you, yes in the health care industry. what we're learning now, cigna, they're buying express scripts which is a pharmacy benefits manager in a deal valued at $67 billion. so what does a company like express scripts do? they basically have major clients. talking about walmart being one of their clients. also the defense department. they use their side to negotiate lower drug prices for their customers but, lately you've seen enormous attention given to

the high cost of drugs. now companies are looking to bring down the price of health care which is expected to represent 1/5 of the economy in the next couple of years. we've seen drugstore chains, cvs health tried to buy aetna which sold $40 billion of bond to finance the almost $70 billion price tag. we've seen companies try to fend off desperately competition that is coming from amazon. amazon is teaming up as you know with berkshire hathaway and jpmorgan chase to form their own health care company for more than one million combined workers. amazon's entry into this market might have pushed cigna to pursue express scripts which that deal expected to close by the end of this year, pending approval from regulators as well as all shareholders. let's look at share price reaction really quick. cigna shares down 11% right now. but express scripts up almost 10%. connell: there it is, the amazon

connection. thank you, lauren. president trump has a meeting in about an hour with videogame executives after the florida school shooting. we bring deirdre bolton here in on this. unfortunately debated for years after something terrible happens. does violence in video games equate to violence? >> it mixed. i looked through studies with the american psychological association, there are studies that show yes, actually the more you play violent video games, the longer you play, more years you play, the less empathy you have for fellow human beings, less compassion. essentially the more aggressive it makes you. here is what is tricky? there is a media arm part of the american psychological association, so same group of people essentially who says there's no link. not surprisingly at all the ceo's of sony, microsoft, nintendo, activision, they have their own, let's call it representation group, lobbying group. connell: they're fighting against this for years. >> completely.

they say, listen our products are globally distributed. we sell just as many games in other parts of the world and mechanic, according to them is the only one with a true gun problem that is linked to adolescents. they also cite government studies, which do not show a link. and they say that the nra essentially is using video games and politicians as well instead of looking at what they call, are the real issues. so this has been going on for years. the other thing i want to say for these companies, two years ago, 10 years ago, they started to rate some of these games. connell: they do that already, right? >> exactly. they did that in response to basically consumer groups saying okay, maybe some of these games are too violent for a 10-year-old, but a 16-year-old can manage it. connell: i heard the president talk about but that rating system is in place. >> there are studies that show links and there are studies that

don't show links and volume all of high on both sides. connell: industry executives will bring up some of that. >> there is one extra thing, tech use, not even video violent game use, steve jobs, when he was alive limited his own kids. bill gates, sean parker. that is not video games. we don't know what this is doing to kids minds. connell: we got to run. my own kids staring at the phone or myself. thanks, deirdre. we'll cover it next hour. get back to tariffs. pushback from lawmakers. the president is still hearing that. what congress can do and then the president's own comments. who might be exempt. we'll be back in just a moment.

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>> we are also taken action to protect american industries vital to our national security, including american aluminum and steel. you'll be hearing about that at 3:30. connell: welcome you to our number two our number to cavuto coast to coast. connell mcshane feeling in for neil. the president gave me a preview but you can expect later today as we wait for the announcement on the steel and aluminum terrace. the market is down 30 points. the dow jones industrial average , run of wall street and elsewhere trying to figure out what to make of this. plenty of push back to it. the terrace that is for members of congress come in many coming from the president's own party. we heard from number of members

of congress to regulate. north dakota republican senator john homan. thanks for coming on. people who represent the farming states like yours do have concerns and we understand those concerns. and he alleviated by the president and his comments today talking about exemptions to some of these tariffs in mexico, australia and other countries? >> that's what we have to see. clearly we are concerned about her ability to trade and we have to be able to export our ag products. very good for our country and the other concern of course is a lot of times if there is retaliatory action come in the first candidate is the ag products. we have to be very careful, very targeted, very strategic in whatever is done. we understand what is trying to do with steel and aluminum, but we want to make sure it's done in a way that does not impact

ag, energy and other industries that are his. >> just so people understand it, the president hates everybody. maybe some exemptions. you are really concerned europe comes back. they've been talking about hitting products out of your stay. >> for example, china takes one third of all the soybeans produced in the united states. 70% for north dakota which is a huge producer. at the same time, they've got to be a fair trader, so we understand that we have to force them to work with us on a fair basis. that's where we have to be strategic and targeted in how we do this and work with our other countries, fellow countries to put the right kind of pressure on china cannot do something something to cause retaliatory tariffs. connell: can ask about what should we do question as it relates to china because the next thing coming down the pipe

is some sort of action directly against china as it relates to intellectual property, which is a much bigger deal. are you supportive of that? >> that's a legitimate concern. we want free trade. we want fair trade. we have to engage and make people treat us fairly. intellectual property is a good example of where we have work to do. we can get together with other countries, other trading partners and say you are dumping steel globally. it's not just an issue for the united states. it's an issue for a lot of countries we need to work together to put pressure on china in the right way. connell: but about the national security argument? i heard from member of congress last hour who said tried to challenge them on it, but this is legit national security concern. do you think it is? >> that is a tough argument. we import a very small part of our steel from china appear that it's a tough argument.

we should be looking under the antidumping countervailing duties and working with the other countries, with our allies like i described. true to us the big picture for all of this, what about the politics? are you another's concerned that this could be something that has a negative effect on republicans in the midterms? >> we are trying to work with the administration. we will see what happens here as we engage in a dialogue with the white house. irony talk to the white house. i retyped dhe secretary. he's coming to my my statements and north dakota tomorrow. to hear from our producers. we are trying to work with the administration to see what we can do. we want free trade and fair trade and we need to work strategically to do both. connell: would you support in a change in the lower congress has more power like it used two years ago in writing some of these restrictions? >> so that is part of the discussion.

something to do legislatively as well. >> you see yourself supporting that? >> we will see. depends what it is. good to see you. thanks very much. john hoeven north dakota. couple things, president trump on twitter from yesterday talking about china, which we are discussing asking beijing to cut the u.s. trade deficit. you may see in the tweed in the tweet fair, $1 billion reduction. it seems weird that the time we didn't talk much about it partly because it seemed weird at the time of "the wall street journal" did a little digging and found out $1 billion the administration is looking for in terms of reduction or trade deficit. it's $100 billion. apparently the president was off on that tweet or just a cool 99 billion. the independent women's firm board of directors and haworth, forementioned publication.

charlie gasparino is here as well. as a start of a wider discussion on all of this, but i saw been tweet that and i said what the heck good is that going to do if the trade deficit is so bad. should that be a hundred billion dollars? >> we need to get away from here and a deficit is a problem and lots of times at the trade deficit. whether it's one or 100 billion, are you telling american consumers these are american products to bring this into the alignment that he wants. they are emblematic of what's going on in the markets. they sold us big time last week when he originally announced as. we are very flexible friend of the president.

connell: can you pick up on the flexibility part before we bring charlie and? >> is a flexible pragmatic president. he's a businessman and major sheeter. give us directionally expressions of where, you know, what he's thinking about. are they final policy? no. he needs more letters. connell: we have exemptions for everybody charlie. maybe at the end of this, nothing on italy, by the way. >> the markets aren't that worried. they sold out pretty viciously initially on geary cohn leaving him that he came back. they were down just marginally. listen, i don't think this is good and it's kind of fun watching james here. connell: "the wall street journal" editorial. charlie: conservatives like james have been basically putting aside trumps manic

economic idiocy on trade for a long time and now -- if you have. and endorsing him. by the way, endorsing him as economic policies without worrying about this sort of, this insane thing have written on the side. and now -- let me make my point. and now trump is starting to show his protectionist colors and they are like what is this going to do with the rest of the economy. it could be the art of the deal here. term statements on protectionism and policies as he campaigned, i don't care. that's economic idiocy. maybe art of the deal. and by the way, does that scare you a little bit taken on the tweet wears off by 99 [inaudible conversations] i have to go to james van ness.

this is what i'll say about what charlie just said. a lot of interviews like wall street types, investors. that's the one thing we do notice as they look at us, this will really happen. you're focused on other things, taxes, regulations being cut. to charlie's point whether it's attacking "the wall street journal" editorial page. charlie: i'm not attacking you. >> right chemistry of consistently attacked him on the bad ideas he's rolled out on trade and immigration. i think the parts of his agenda that he's gotten done in terms of cutting regulation, cutting taxes are huge for the u.s. economy. one of the reasons charlie doesn't understand is because he's looking -- charlie: understand peer >> you're looking to taxpayers in new york or don't the best deal. it's how good it is for businesses both large and small. also some confusion there, where some people in the press realize

initially how big it is for not just large corporations, but also pass through entities. >> everybody gets back, james. you guys are missing out trump is raising taxes. tax increase. >> i'm going to offer a responsive phrase to you. there is a method to the president's quote, unquote madness. as james says, what is accomplished as far as i know you that knowledge as well, in terms of deregulation, in terms of tax cut, things that no one, no president has done for a couple decades basically. that empowers our economy. it empowers our consumers and also increases our beverage around the world. when we have a strong american economy, one is talking about putting america first, what he is doing is presenting -- connell: the timing is your

point. connell: some people say there's never a good time. >> what's going on here? can i just get to this point? this is a bad time to do it. potential for inflation and higher interest rates for the unwinding its balance sheets. that higher interest rates. on top of that, a potential trade word which could cause inflation. the thing to do. >> i agree we don't need a trade war and terrorist have been trapped in history to be a mechanism that is a very dangerous double-edged sword of bass. connell: let me go around the room here. that's a debate now. i'll start with you james. how serious do you guys think the president is? i've been saying all week this is his one position of his positions he's taken, and this is what his most noncommittal serious about so that would let me ask you that he's very serious about this and we might be heading down a path that ends

up in a quote, unquote trade war. >> it is serious. you're right. this is one position is held for a very long time. i am worried and i think you would like to see more people in the white house with a free trade is. there were some pushing back. charlie: and he is is moderating and that it sounds like. >> it's really up to investors. they sent him a big signal telling him this is a big mistake. they've got to stay on him. if it turns out not to be the flexible by. connell: sell your stocks to send the president a message. >> the message he understands. there are worse things for a president to judge his performance on. it's dangerous for him politically because markets can go up and down. >> how serious is he? >> the president entirely serious about reviving our manufacturing. he's made great strides toward god. >> even if other countries

retaliate. >> the president is a man perfectly capable of evaluating evidence and good arguments. we here have moderate his position and he will continue to respond to realities on the ground. the last thing he wants to do is create for the american people. he is fulfilling his pledge that he made to represent american workers. charlie: he is hurting american workers. there's no logic. here's what i would say. i don't care how many -- >> special election in pennsylvania. no economic logic that any republican can twist and turn themselves to present this in a good light. maybe backs off. unless you're saying -- but it's a policy. >> woody's telling china and look, we party scene the chinese say that they are willing to talk with us about how we can reduce this deficit. we need to get serious with the

chinese about a lot of ways in which we can be better partners for each other. i agree with you. one way we've rendered ourselves on the ball is because hold so much of our debt. one thing the president done has reduce the vulnerability. connell: we are about 10 minutes away. good discussion. we'll keep going and probably have a chance to do it again tomorrow. not fair at gasparino going off the journal like that. connell: after break will get to the century city story. the lawsuit in california, some there as well. the president is actually getting set to visit the state of california. that'll be interesting. that's coming up next week. we'll be right back. baby boomers,

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you want the money, you can have the sanctuary cities. >> the federal government ought to do its job and not believe california for its own inability to solve the problem. this is basically going to war against the state of california. >> you heard it there. california governor jerry brown. doubling down on the taxis made against the department of justice over the sanctuary city lawsuit in california. the mayor has been in the middle of all of his pitches also said attorney general jeff sessions is pushing what she's described as a racist agenda of it all comes as president trump gets set to go out of visit california next week. yesterday was visiting with this group, the latino coalition chair. hector beretta joins us right now. good to see you. would you make of the california lawsuit? >> it's very unfortunate. in the last administration, some of the same people criticizing

the government were criticizing the government of arizona for getting out of their lane. it is not the purview of state to control our immigration enforcement policy. that's a federal responsibility. tempers get calm down. i'm from california. we have the president here visiting with hundreds of members in washington yesterday. california is a big state, an important state and we need to make sure the government and the state level is working with the federal government. connell: have heard the legal arguments back and forth. what about the politics? you're from california and no constituencies involved here. each side has accused the other performing are trying to a political stunt here. does this help come and take the democrat side of it, taking the side they've taken, does it help them with latino voters? >> california is a democratic state. the republicans elected anywhere

and i don't think there's going to be for a while. however, having said that, and this is the wrong fight to date that california is very dependent on the federal government for a lot of things. the new infrastructure product the secretary of labor introduced yesterday. that could be huge for california. i would hate to see california get into a battle with the federal government, especially in an area that is not their domain. federal policy is a federal governments responsibility, especially as it relates to immigration enforcement. connell: recover the president speech live on a rare this time yesterday, an hour before they says the latino coalition. you introduced them there. the president as he steps up to make his remarks. you guys have a chance to talk in a cell about what? >> very positive. not only did i talk to him, but 10 of my members talk to him personally about their businesses, even mention some of them during his speech

yesterday. very positive, very well-received. they like what is happening in the economy and they like the plan the administration is putting forward, especially run taxation, regulation infrastructure. the terrorists have yet to remain to be seen. most small businesses that do import and export our small businesses and they want to see a bubble playing field. they don't want to compete against countries like china that are doing things that put them at a disadvantage. connell: hector, looks like fun yesterday. things are coming to us today. hector beretta was at the latino coalition. he is the chairman of the group. video game executives after the florida shooting and that begs the question of whether we will see any kind of a move for more regulation to crack down on violence in the videogames. we will be right back. think your large cap equity fund

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white house today as is the case about everyday. one thing president trump has admitted what the video game executives after the florida shooting. they will talk at the top of the hour we are told about the environment, school shootings in any possible connection to the videogames young people like to play. hillary von has made her way over to the white house. what can you tell us? reporter: admitting you started in the next hour in this issue is something president trump has had concerns and not only as president, but also his father. he seemed to videogames and movies. his younger son, darren trump, has watched. some of the classic content worries him. this meeting has the potential to be a little bit awkward. mike gallagher, ceo of the entertainment software association is attending after the videogames industry released a strongly worded statement denying any link between video game violence and gun violence could like all americans we are deeply concerned about the level of gun violence in the united

states. videogames are plainly not the issue. entertainment is distributed and consumed globally, but the u.s. has been exponentially higher level of gun violence than any other nation. also in attendance, ceo of rockstar parent answered the entertainment software rating board and e. florida senator marco rubio will be there. he's been outspoken on gun violence following the parkland shooting in his home state. the point of the meeting to address any potential links between exposure to violent and video games to aggression and desensitization in children. there's another layer to the meeting. president trump's younger brother, robert trumka misses on the board of ed max media. they have developed some very violent video games that are also hugely popular like battle cry and doom. doom has sold over 10 million copies since its debut and also one of the pioneers of first-person shooting video games. that's an interesting thing to keep in mind as they watch the

meeting go underway in just a few minutes. connell: hillary, thanks. hillary von at the white house reporting on the videogame meeting. we'll talk more about that now. speaking of the white house, we just heard from blake berman of course covered the white house on a daily basis that the president indeed with two hours from now, indeed will sign the proclamation as it relates to the steel and aluminum terrace. it will be signed. we are told that's the latest at the meeting. let's get reaction to the videogames story from a psychotherapist named robin wunderlich who was with us. is this something -- hillary did a good job laying out both sides and talking about the business and concerns. is this something that had to deal with and talking to people and if so is it legitimate? >> i speak with a lot of parents. i'm also a parent whose children have been interested in some of these games. really the studies are inconclusive. the studies find both ways are

for kids to watch violent games in some cases right after watching the game, they are more volatile or more likely to engage in short-term fights. another study say, you know, we followed the senate can be cathartic. there is a decrease. >> i wonder and again this is not scientific at a stretch, whether it has to do with the use of technology. i shouldn't even say my kids. myself, too. furniture phone all day, for example. the use of technology and how that affects mood, how that affects how you act later in the day. versus how violent the technology is. >> i think it has to do also with what child displayed in these games and under what circumstances. if a child who is prone to anger is playing these games, if they're socially isolated, if they are bullied, will they interpret these games in a slightly different way?

we certainly need to look at that and parent need to look at what games are they putting in their child's life and how do they influence important discussions so that they can separate moral competence between which you play in the game and what you do in real life. some of these games when the children played the video game with other kids, contemporaries can lead to prosocial behavior. is this a factor? we want to look at everything. i think that would be a stretch at this point. tree until you haven't seen conclusive evidence of abuse. >> no, we have not. a lot of these are done in a vacuum. is there punitive parenting. we have to look at poverty, the child's personality and how they interpret these games. there's so many things of concern. it would be such a bad thing to prosocial games out there. so what we have those violent games, are we having games that

show an alternative? treated the situation dealing with a child or a parent or you suggest to my earlier point that you shut off technology altogether, take a break and reduce it or do come and save a game come and save a game you're playing we've talked about a lot in our sessions or whatever it may be. this try something different. again that is silent -- less violent. which works better? >> having a good communication with your child. start young when they don't want to reject what you are saying. and yes, the more you can engage in family conversation so you know how your children are interpreting different event, the better off in the stronger your child is going to be the parents relationship with the child. connell: that's probably a larger point. dr. ludwig, thank you for coming in. a moment ago, president trump will indeed find the steel and aluminum terrace proclamation. he will sign it two hours from now. that is 3:30 eastern time at the white house.

more in a moment.

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i'm just surprised it means in my kitchen. so, that means no breakfast? voya. helping you to and through retirement. connell: it is breaking this or the white house here this afternoon and the best time to get before it happens to the president will assign his proclamation on steel and aluminum terrace. this afternoon at 3:30 eastern time. any debate the white house has announced the president indeed will sign it. former budget director, former governor of indiana, current president of purdue university, ms. daniels joins us now. good to see you. mention your titles and formal titles would have unique perspective having seen all of these types of debates from many different chairs. would you make of this one? the president talks for terrace, 25 and 10 steel and aluminum but exempting canada, mexico, maybe

more. >> i steer clear of most things political these days in deference to make her a job, but i'll give you an academic answer. here are purdue we have some of the finest economist in the country. i've yet to find one that can make any argument for this move. it's pretty well documented and understood that it will cost jobs, run the prices in this country and it's unclear what foreign policy, let alone national security rationale to justify the price we are going to pay. it does seem an unfortunate decision. maybe there is a game plan here so clear none of us have figured it out in coming to some terms that other countries. right now that would be pretty hard to identify. connell: would be happy to engage in an academic discussion. we've had a few of them, also screaming matches on this issue throughout the week. i thought it was interesting icon part of this the president was in a cabinet meeting earlier today he actually mentioned history. you know, there are pre-world

war ii the united states and many presidents who are protectionist. he mentioned a couple, president jackson and somebody else after that i believe. there's some protection in this country for years and then it all changed after world war ii. >> developing countries, when we were a lesser developed countries in the current parlance, developing companies have tried this from time to time. a historical reference for most of us is the 1930s where it didn't work out too well. it is interesting to think about this from the standpoint of indiana. we are the number one steel state in the country, have been for 40 years. part of that and the people who make it possible. were also the number two auto stay, number one rv state and one of the most manufacturing intensive states in the country. here in indiana, the leading steel staple be a big net loser of jobs and obviously consumers.

>> net you end up losing jobs on this. especially if other countries retaliate or the groups of countries that the european union retaliated like they threaten to do. a question on your job there at purdue in a moment, but if you'll indulge one more question, and the next one coming down the pike is something specifically dealing with china and the theft of intellectual property by the chinese. so, argue, as we were saying an academic discussion, posed in general to terrace or punishment of other countries across the board or are there times when a semi-shady need to go after them. >> on an issue specific cases, there is always room to look out for the interest of this country without knowing exactly what measures they might be contemplating. i think a lot firmer ground bear. there have been abuses. we do know that.

you can't find any rationale like that, i can't anyway in the steel and aluminum area. so i think it would be a much more auspicious ground to have a trade debate over. >> there really isn't much pushback that the chinese are not playing fair they are doing our intellectual property, ideas and the numbers add up depending which study looked at, fiber $6 billion in a single year cover which is obvious that a lot of money. i had a question about your current position at purdue. it is interesting because maybe we should talk more about this, but the way universities are going to have this acquisition megabyte caps and university. it looks like you are moving in to this idea of a big move to online education. tell us about it. >> expand as the word i would use. we want to expand our service to the whole universe of people that are in need of further

education and the country needs time to earn it. i'm talking about working adult who we don't serve right now at purdue university. there are 36 million fellow citizens who started college and never finished. a huge opportunity if we can get them to a higher place in terms of skills and education. a great way for them to improve their lives and obviously the nation needs more trained workers. we are going to close within two weeks. we've got the final regulatory approval last thursday. the school will open as purdue university global, purdue global in april. we are very excited about it. the chronicle of higher education, which asserted the bible of establishment higher ed has a special report out right now that says the adult learner, population higher ed can no longer ignored. we agree with that completely.

we want to extend the quality education purdue is known for her to a population that missed it the first time there's a chance at it now. connell: we have to go, but that sounds like something in the trade debate when it's retraining and people are going from one job to another. is that fair? >> absolutely it is. we have to be at the front edge of online education. it has applications in our traditional 18 to 22 population. our first focus is really on expanding our mission to these fellow citizens, many of whom are hungry for more learning. i've got in the way in right now they can't put dry campus for four years. >> makes sense to do it online. keep us up to date. thank you for coming we appreciate it. now there is a new poll out and if you read into it, looks like it reveals some trouble for certain senate democrats in states like the one governor

daniels is from, indiana and others were president trump one and democrats are running. the new poll and what it means, coming up next. whoooo. when it comes to travel, i sweat the details.

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connell: welcome back of this is a good story largely because jeff flock is doing it. forceout testing vehicles to perform in the winter weather. mr. flock is in michigan with a look at that. hey, jeff. >> i am in bp, upper peninsula. the ford winter proving ground for them in the front seat of the new ford expedition. right now you are looking not to test on a track of both i.c.e. and snow. this is what it looks like without the new technology expedition hounds. i'm just going to call them expert stunt driver at the moment. this is what it looks like without the new controls on. >> with everything off. >> we are spinning, not getting traction. jermaine management system. >> what it does is allows. let's go ahead and if you put that in, that helps it.

we are just getting rattled to death in here. if you put that on, what happens? so what it did as it was actually utilizing the three different systems. the transmission system, stability control system. and it actually -- everything is getting traction. the sales have been crazy on this thing. to make more than fast enough. good news for them. >> it'll be good news for us, too. >> i enjoyed that. i'm actually glad it's over because you make me nervous. i would want you to flip it over. that was very good. thank you, jeff. interesting stuff.

a new poll out revealing if the election were held today, there were some senate democrats that might be in trouble and might lose to their republican counterparts. are democrats on the screen here, reported to be the most at risk up for reelection. "the wall street journal," fox news contributor and dagen mcdowell all here in the studio. gillian, what do you make of this, the joe manchin and others could be in several trouble? i think against generic competition for what it's worth. >> we are seeing a lot of republican support building in blue-collar states. west virginia, pennsylvania, ohio. typically unionized states. i think trump has expanded the gop constituency to kind of bring them in. the other interesting dynamic we have a plenteous tax from the last, which we see in california, illinois and pennsylvania. i'll be interested to see how that dynamic plays out.

connell: will be interested will be interest to see how this tariff deal works. you can come out and support that might help you in the midterms come back from these numbers. connell: someone like manchin is smart enough that she get behind whatever might benefit your stay. one thing to note against claire mccaskill, there's been a major seven-figure ad flipped by the koch brothers were they been running television video spot, $1.8 million worth initially. guess he promised tax benefit to people in misery, but said no and she stands up nancy pelosi and chuck schumer. a lot of this is how much money will get behind these candidates. connell: it's interesting because numbers wise, manchin, tester can even mccaskill, all the stories we hear about how well the presidents approval's numbers are, the president is well above 50. maybe this blue wave thing is not as real as we think. >> what i thought was most

interesting is that it's an unnamed republican candidate, so they don't know exactly who, but any that this democrat arty in here. as julian alluded to, democrats used to be the party of the working class. that was their brand and they don't have that brand anymore. president trump is doing things that would've traditionally not been so conservative like this tariff, but her working-class types of things. it'll be really tough. i'm opposed to the tariff plan as well, dagen. dagen: at his attacks. >> it's not necessarily conservative proposal here, but it seems like the lines are blurred a little bit. connell: i said it might help democrats fight back and get something they can support. the cat may be right, maybe it helps republicans. dagen: want to point out that 10 senate seats you are talking about, he did when an number two in terms of the tariff, helping steel and aluminum. you see some coming back online.

but again, 6.5 million jobs potentially at risk by steel consuming. connell: in a congressman for not district. i'm thinking what if you move a thousand? dagen: in 2002, that's what happens in the world of 188,000 people employed in the steel industry at the time. connell: who do you think helps or gets hurt at the whole terror thing because it will matter in these types of states. >> i honestly think the people in steel dependent industries, the builders, anything were steel or aluminum is an input, they are just going to get slammed. that is a huge proportion of jobs. about 45 times as many as direct steel workers. i also think you'll see a lot of consumers see their prices rise. connell: you have to support it. say you're running again, the unnamed republican and you end up running against, pick one, mccaskill in misery or maybe

more to the point mansion in west virginia. we have to support something you're against? republicans are in a tough spot in other words. >> some republicans who have been free trade, free trade all along are now saying yeah, and let's do this. fair trade, which is not traditionally republican proposal. >> renegotiating a trade pact that is different than slapping a 25% on the feel of a different thing. the democrats particularly on the house side have been raising money hand over foot. not the dnc, but the democratic national commission at a record year last year for a non-election year. more than $105 million raised. the journal did some analysis of 22 republican held house districts that hillary clinton won in the $4 million fund-raising at vantage over the republicans at the end of last year. connell: it's interesting

because we've seen that it is he has been extended in the state of texas. one of the reasons i want to talk about the poll because it pushes back against that a little bit to say maybe that is true and there's a lot of enthusiasm for democrats. but it's tough for them in the states trump one. >> really, i do think they have their own tea party problem bubbling up from the sanders when. there's a lot of antiestablishment. if you look in pennsylvania, the candidate land is railing against nancy pelosi. going to be something that hurts their rods, too. connell: well, democrats have learned from hillary clinton you actually have to show up and hit the ground with your feet. connell: things, guys. appreciate it. things are coming on. dagen is getting attacked by peter navarro in the air. we don't have enough time for that. dagen: do that when you're in the studio with me. connell: i know, i laughed.

quick break and then we'll get to the white house. a lot going on including the videogame maybe. we will be back to cover it all. "cavuto: coast-to-coast" right after this. investors will always be. investors will always be. we see two travelers so at a comfort innal with a glow around them, so people watching will be like, "wow, maybe i'll glow too if i book direct at choicehotels.com". who glows? just say, badda book. badda boom. book now at choicehotels.com each day our planet awakens but with opportunity comes risk. . . th . . . and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs.

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with consultation or visit kohlerwalkinbath.com for more info. connell: got this tweet from elon musk, tesla, spacex fame about the tariffs. we raised this with the prior administration nothing happened. just want a fair outcome ideally where tariffs are equally moderate, nothing more. hope this seems reasonable. elon musk, president talked

about the rich guys with their rocket ships, elon musk. my favorite quote of the day, we'll be sending something very beautiful to mars in the very near future. one of the things that came from the white house. more important things to come. here is trish regan for the next hour. trish: thank you, connell. 90 minutes from this second, president will sign his steel and aluminum tariff proclamation. we will also learn whether or not some countries will be exempt from the tariff. and investors taking the news i would say in stride. we're down 39 points with the s&p and nasdaq composite index inching higher. i'm trish regan. welcome to the intelligence report. there is a lot of push back on the tariffs a lot of it but i've been saying over and over again on the show, the president may actually be using this as a way of really getting at china, the bigger issue of china. don't forget they're out there stealing our intellectual property to the tune