>> we'll get it done next time. lou: thanks for joining us. congressman ron desantis among or gh the $100 million pads in london. here's lou. lou: our top stories tonight. a major victory for president trump's efforts to crack down on sanctuary cities. ththe federal appeals court ruld the effects as ban can moved forward. president trump naming larry kudlow as the next economic advisor. the trump administration working on draining the swamp. attorney general jeff session is

considering firing andrew mccabe days before his scheduled retirement which puts his pension in jeopardy. we take all of that up and much more. our guest tonight, president trump's top trade advisor peter navarro joining to us discuss the president's america first trade policy. the best complit political an -- the best political analyst on the special election pennsylvania. and chris farrell on judicial watch and the efforts to drain the swamp. our top story, a legal win for the trump administration. the state of texas cracked down on sanctuary cities taking effect after a federal appellate court upheld the law. that means teks as police

officers can ask people whether they are in this country legally or illegally during routine stops. and elected officials face possible jail time when they do not cooperate with immigration authorities. >> this is a great victory. reporter: a unanimous decision inside the fifth circuit court of appeals affirmed texas's controversial immigration law. the justice department says it's a win. u.s. attorney general jeff sessions calling it in part an important step in restoring legality to our immigration system which is what president trump wants, what the american people deserve. sb4 or as opponents have deemed it, show me your papers law was passed last year by texas lawmakers. but has been protested and challenged in court ever since.

the law permits law enforcement to inquire about a suspect's immigration status. >> this is just the initial fight, the initial battle. reporter: along with the aclu and pro immigrant rights groups, even major cities have fought back against this legislation. >> what they are saying is put aside immigration for the moment. we need to control our own police forces and our own resources. reporter: dallas, houston, austin, and san antonio all joined the lawsuit against the state. but leaders in austin having a strong message for those who don't wish to comply. >> this idea that there are particular cities in the state of texas that can actively denyify only in the the state legislature but now a court

order is astonishing. reporter: the judges took issue from one part of the law and kept it from being enacted. it's the part that could hold officers accountable possibly criminally if they don't inquiry about a suspect's immigration status. lou: from texas to western pennsylvania, last night's special election house race still too close to call. democrat conor lamb leading republican rick saccone by 500 points. that's .2% of the vote. gop officials are alleging voting irregularities. molly line limp in carnegie -- line live in carnegie, pennsylvania. >> it took longer than we thought.

but we did it. molly: conor lamb may well have swiped a congressional seat long held by republicans. his opponent, republican state rep rick saccone. >> we are still fighting the fight. we are going to fight all the way to the end. molly: the national party has his back preparing for a recount. >> i thought that the process of counting absentee balance lots was fraud. there are issues with the machines themselves. there are potential voter irregularities. reporter: lamb ran has a merchandise rat. distancing himself -- lamb ran

as a moderate. backing trump's tariffs and avoiding the alienation of his voters. >> the democrats, republicans, independents. the state democratic party chair claims the blue wave of 2018 began with lamps win. national party leaders are looking with hope towards november. >> we have quite a few conor lambs running out there. reporter: but a cones likely loss is reverberating. >> it's a 20-point trump district. that's a wake-up call. reporter: as republicans reflect on what it could mean for the mid-terms. >> the republican and democrats ran as conservatives. pro-gun, pro-life, antinancy

pelosi conservatives. that's the take away you see here. reporter: they have agreed to a saccone request to impound voter ballot and machines. lou: how likely do you you have a sense of it, how likely is a recount? with such a narrow margin why isn't it all but automatic? >> it would have been automatic if it were a statewis state -- e race. at this point in time they are taking steps in that direction. we'll see if they decide whether it's worth while. we'll have further information on that. lou: we are coming right back.

more straight ahead. a lot to cover. but we have plenty of time. we hope you do as well. stay with us. drain the swamp. the disgraced number two at the fbi andrew mccabe faces firing just days before his retirement. we'll take up the corrupt fbi leadership. ed rollins joins us next. the pennsylvania special election isn't over. we'll have much more on ryan and the prospects for the republicans in the mid-terms coming up nex smile dad. i take medication for high blood pressure and cholesterol. but they might not be enough to protect my heart. adding bayer aspirin can further reduce the risk of another heart attack. because my second chance matters. be sure to talk to your doctor before you begin an aspirin regimen. ♪ with expedia one click gives you access to discounts on

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second amendment rights. the administration reportedly planning to replace the national security advisor h.r. mcmaster with ambassador john bolton. veterans affairs secretary david shulkin likely to be pout to be replaced by secretary rick perry. the governor saying that he's not interested. chief of staff john kelly, he could depart we are told. budget director mick mulvaney is a replacement. mulvaney would be good running any part of the cabinet. joining us is former reagan advisor and political

strategist, ed rollins. 500 votes and we have the speaker of the house saying it's a wake-up call despite all the irregular laishts and the call toims pound ballots. ed: his team ran a crappy campaign. you can't run campaigns in pennsylvania from washington, d.c. this is a door hanger. the reality is you need to spend money on supporting your candidate. lou: who picked saccone as the candidate. ed: congressional conventions, he won by 120 votes. there wasn't a real primary or caucus. unfortunately he was not a very

good candidate. he was lackluster against a young dynamic candidate who ran as a conservative. it's hard to say to a marine that he's anti-gun. lou: i would hope so. but there are a few of those animals. it looks like the president put his prestige on the line campaigning for saccone. we don't know what the outcome is going to be. why there would not be a recount. why there is not any hesitation. ed: having run a popular president ronald ray gab and co-chairman of the congressional committee, the bottom line, there is a big drop-off. the president can add -- lou: not to interrupt, ed.

these people in washington are getting paid to do this. the rnc, all of the campaign committees for the senate and congress. >> they need to find the best operatives in the state. lou: how about getting the best speaker of the house. he takes his orders from the chamber of commerce round table. ed: the president closed the gap. he had an impact. race was down 10-12 points. but you can't expect the president in a mid-year election to be the whole show. lou: what else have they got? ryan? ed: good candidates. elect me, i'm going to go to washington and be part of the trump administration and make things happen. that's the line they need to use. lou: saccone came to that late

in the process. mccabe may be gik up his pension. it may be taken away from him. we just heard from the office of personal responsibility. there is a problem with mccabe. he has until friday to be fired or he gets his pension. ed: if you lie to the fiebt's a felony. he lied to his boss. he lied to everybody. my sense is, this is an internal investigation. they have come forth with this investigation. it will be interesting to see if sessions follows through. lou: he says i will consider firing mccabe. we have the evidence that he lied. ed: it has to be done by friday.

tomorrow is thursday. lou: trey gowdy. the chairman of the oversight committee and senate judiciary chairman bob goodlatte have interviewed only two of 20 witnesses in their investigation of fbi and department of justicing corruption since last october. even by washington standard, that's light. what do you think? ed: i think they are both getting out of congress and they are on a cakewalk here. instead of the final thing being that you do the most of effective job possible by cleaning up this mess, neither of them have done that. them taking the position they have taken hurts the other members who have come forward to say there is no collusion. our enemies are using it against us. lou: larry kudlow, you and i

have known larry for years and years. your thoughts about his appointment to the national economic council. ed: does he agree with his positions? lou: you are talking about this like it's a negotiation. edrequire' the president who basically makes the decision. if you have going to go on, you have to agree all the way. larry will be the face of economic issues on television for the next year and my sense is he likes that role as oppose to being a real economist. we'll see how it works out. i like him web's my friend. but in this administration i'm not sure it' the right choice. lou: ed rollins as always straight from the shoulder. do you agree with president trump that it's time for america to ended the massive squandering

through almost a half century of trade and budget deficits. cast your vote on twitter @loudobbs. too few people are actually talking about these issues. peter navarro, we'll be talking with him in 10 minutes. follow me on instagram on "lou dobbs tonight." stocks closing sharply lower. s & p lost 16. the fcc charging a former equifax executive with insider trading. he sold company stock just before the company announced its cyber breach. up next, republican congressman trey gowdy increasingly swiegd

dems. dowdy, the chair of the house oversight committee agreeing hillary clinton. he says russia tried to hurt her campaign. what in the world is going on. we'll take it up with chris farrell. that and much more. stay with us. heartburn. no one burns on my watch! try alka seltzer ultra strength heartburn relief chews. with more acid-fighting power than tums chewy bites. mmmmm...amazing. i have heartburn. ultra strength from alka seltzer. enjoy the relief.

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lou: attorney general jeff sessions considering whether to fire former fbi director andrew mccabe. mccabe scheduled to retired sunday could lose a $2 million government pension. he's worked at the fbi for 22 years. not bad. fox news has learned that the fbi's office of professional responsibility made the recommendation to terminate mccabe following several conflict of interest complaints. congressman trey gowdy breaking

with fellow republicans, the house intelligence committee certainly. gowdy claim russia was motivated by a desire to hurt hillary clinton's candidacy. the intelligence committee, in their conclusion, 150-page report, found no evidence of that. joining us tonight is chris farrell, director of investigations and research for judicial watch. chris, good to have you here. let's start with trey gowdy. federal prosecutor. he's served in congress several terms. what in the world is going on with him? he's slow walking and he and bob goodlatte, they chair both, fbi and doj corruption. what is going on? >> well goo goodlatte is prettyw energy as far as being a committee chairman. and trey gowdy, you have to remember, is the guy that

brought us the 11-hour hillary clinton benghazi saga where she simultaneously played hero, victim and martyr. mr. gowdy never misses an opportunity to miss an opportunity what should have been a roasting, you know, turned into her coronation lou: it's strange. let's go to another issue, and that's jeff sessions. he's considering following the office of professional responsibility recommendation to terminate a man who did not divulge his conflicts of interest with the clinton campaign until a week after "the wall street journal" reported the story. and then only a week before the election itself. i mean, it's staring everybody in the face. >> mccabe should neither be fired, you know, or given his

requirement. retirement. he could be indicted. he could be held on administrative leave until he can be indicted. he should not collect a penny of retirement. he shouldn't be given lunch money. this guy needs to be looked at. you've already got an opr an an ig report saying that, you know, he was less than candid, which means he's lying in regular plain english. we know he was involved with strzok and page. we know he wandered over to the obama white house. we have these records already. this isn't guess work. you diswhy in the world are we g patty cake wondering whether he should be retired or fired. lou: why are we watching mitch mcconnell and paul ryan play patty cake with robert mueller and the idea of the special counsel with all of of these

issues before us, the corruption in the leadership of the fbi, the department of justice, the former attorney general under president obama, loretta lynch. when we go through this list it is massively democratic in substance and misdeed and i cannot for the life of me understand why these people do not have the guts to energetically go after and end the special counsel whose obvious purpose, as rod rosenstein said, mueller is not an unguided missile, he's a guided missile is the effect of what he said and it's directed at the press de presidency of dd trump. it's got to stop now. >> both the speaker and mr. mcconnell, they're awol. they are deliberately not engaging. it isn't as though they're taking it as it comes and addressing issues as they come up. they're absent. to call them leaders is

preposterous. lou: well, i couldn't agree more. they are obstructionists and they are doing the bidding of whomever is aligned against the prespresidency of donald trump. let's turn very quickly to the next steps. are we going to see a second special counsel? he has that under consideration. are we going to see the attorney general raise up the energy and integrity to fire mccabe? >> if there's a second special counsel, he has to begin investigating mueller. that's the problem. that is the sticking point. i think mueller is playing king of the justice department the attorney general is essentially been neutralized. and if they did appoint a second special counsel, they literally have to go after mueller. lou: and they're very much afraid of doing that. >> they are indeed. lou: thanks for being with us. chris farrell of you dish watch.

we're coming right back. stay with us. much more coming up. president trump taking command on foreign policy and taking control of who is working for him. >> i've gotten to know a lot of people very well over the last year and i'm really at a point where we're getting very close to having the cabinet and other things that i want. >> building a new team to bring a unique brand of leadership to the world. we'll talk about the changes at the state department and beyond. ambassador john bolton joins us next. and this thrill seeker. the focus of our nightly video. he goes high above shanghai with no safety equipment in a daring quest for breathtaking views. quest for breathtaking views. we'll show you his death defyin♪ when you have something you love, you want to protect it. at legalzoom, our network of attorneys can help you every step of the way. with an estate plan including wills or a living trust that grows along with you and your family.

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sarcasm, and defines. joining me, john bolton, now a senior fellow at the american enterprise institute, fox business contributor. great to see you, ambassador. vladimir putin reminding teresa may that you do not threaten a nuclear power. do you think that was sage counsel? >> no. look. i think the british have got to be a lot tougher on this. i think the expulsion of the russian diplomat is a knee jerk reaction. the united states needs to stand with them. president trump called the prime minister yesterday, i believe within an,and said that we woul. we've got former spies in this country who might be vulnerable to this. let's be clear what the real issue here is. lou: then i want to get to the real possibilities. >> the real issue is the russians used a prohibitive chemical weapon -- lou: should we go to war?

let's put up the list of the response of the british government and the uk. you said she should be tougher. this won't be hard to beat. expelling 23 russian diplomats, blocking lavrov's invitation to london, threatening further sanctions, as i said. and this is a capper, john. no royals will attend the world cup. i mean, how impotent can the uk look in the face of a co confrontation with vladimir putin and his nuclear state. i mean where are we going here? >> we're going downhill at this rate, that's for sure. lou: absolutely. >> it says to putin, i can try and assassinate people on british territory and get away with it. what they ought to do is close the entire russian embassy and the consulates, send them back to russia, freeze every russian asset in their financial system they can find, get their tough-minded friends in europe to do the same. lou: wait a minute. i want to write these down.

who are the tough-minded allies of the uk and europe? would that be germany? >> we'll find out soon enough. this is a serious problem. lou: but it needs a serious response. and they're impotent and lacking in ability to match the fire power of russia. it's a fool's air rand to play theiear rand,e's errand, don't ? >> the future of nato. lou: teresa may is a moron and because she's insulted our president, we should go to war with russia. are you kidding me? >> i'm not advocating that. lou: what are we going to do? >> this is the kind of activity that if left effectively unchallenged, it's simply going to encourage putin and others to do the same. and you know, it's a wake-up call for the europeans if they don't respond effectively.

but i think it has to be for us as well. lou: and when i wake up and i think that we're sitting here -- the president putting his arm around teresa may say, don't worry, it will be fine, we'll put our nukes with yours against putin. i mean this is madness, absolute madness. >> well, i don't think that's -- lou: this is a woman, by the way, a state visit, wouldn't permit him in london. we have to listen to their idiot mayor in london. sadiq kan khan coming to a. >> what i'm talking about is financier of britain as it exits the union which is a critical step i seem to recall you agreed with. lou: absolutely. >> we need to stay with them despite weaknesses in their --

lou: they can't have our nukes and they can't give us a targeting coordinates. >> what putin has done, i think, is testing the brits and testing us as well. and remember, we've got american troops in real proximity to russian troops in syria right now. lou: h.r. mcmaster, the word is from our sources that he may be leaving. i don't believe any of it at this point. it may be fake news. but one thing i would hope is abts absolutely true is that you would be the successor to h.r. mcmaster were he to do that. what say you, ambassador? >> well as you know, i never comment on those matters. lou: just one little exception. just one little exception. >> i always look forward to speaking with you. lou: i look forward to that as well. thank you for that straightforward answer as always please roll the nightly video and watch as this

daredevil scales a tall tower in shanghai. and you may notice, he does not have safety equipment. and that is a peculiar place to want to sit, in my opinion. that just is -- that is bone chilling. after making it to the top he just sits there, take in the breathtaking views of the vast city below him. and you know, i'm curious how a man would muster up the guts, having gotten up there to get back down. we'll have that part of the story perhaps later up next, president trump putting american workers first, stepping up pressure on china and the european union to actually make fair trade deals to get rid of the trade surpluses that they've lived on for so long. so much american money, trillions of dollars. it's time for us to think about this. that's what the president says. his top trade adviser, peter that ra

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lou: president trump ran on an america first agenda and he is sticking to that agenda. >> i want you to buy american. you know, we help people, we help countries, we give aid to countries. where do you buy your equipment. oh, we buy from other countries. i said what about buying from the united states.

well, we haven't been doing that. now they do it. lou: joining us now to assess the kerr funk l if you will that is getting stronger than that over tariffs and actually protecting the wealth of the united states and american jobs, two of the finest economists in this small city of ours, bill, the chieand john. good to have you both with us. let me start with you, bill. these tariffs, i have never heard so much bull in my life as the people clucking about a president who wants to bring us back to reciprocal much rale mul balanced trade. how much more straightforward could anyone be. >> you know, lou, one of the things everyone is confusing is we don't have a world of free trade. we have a world of distorted trade. we have a world of full of tariffs, customs unions.

putting on a tariff or off a tariff isn't going to make the world better off or worse off. it depends on the situation. president trump has one thing in mind, to make growth happen in this country. and i think everything that he's ever said at the beginning of a negotiating position. and his specious with the tariffs and nafta partners is a good example of how you're saying you're going to put on tariffs and now you bring everybody to the table and say let's make a better deal. lou: why isn't there some maturity here. canada and mexico have had a free ride since 1994. >> and that's a sad fact. lou: it's unrealistic. it is ridiculous. we have a trading partner this mexico that wants to export their poor to our country, they want a free easy pass across our border. and by the way, how about a hundred billion a year, and we need another $50 billion for the illegal drugs being shipped into your country across the border. at what point do we say, come

on. >> this is horrible. you've had both political parties one up until trump, try to hide this problem that we in terms of unfair trade. the fact that our exports are subject to impediments that other countries aren't facing when they export to the united states. and of course one of the reasons why donald trump became elected president was because he had the courage to go ahead and address this issue. lou: and actually acknowledged on the campaign trail that the middle class has been the target of the elites of both parties in the business establishment in this country for 30 years and that's why our middle class has been shrinking. and you know the other one i love from the chamber of commerce, the business round table, don't worry about the trade deficits. it's not a zero sum gain. the hell it's not. as any economist can tell anyone at any time, those trade deficits reduce the rate of gdp

growth and they cost trillions. we haven't had a trade surplus in this country since 1975, for cryin' out loud. >> we haven't had a lot of trade distortions. and the whole point of the bilateral approach is to say here's the picture. we can always join the club but can we make a better deal. that's the theme that president trump is trying to drive. let's make a better deal to improve the situation for all countries, but in particular for the citizens within our country. lou: isn't it interesting that president trump is the remarkable president over the course of the past 70 years. he is the president who sort of awakened the country and said, you don't have to be a victim. and it's not politically correct for you to be a victim. and we're going to make certain that americans, working men and women, their families, we're not going to be the victims of everyone. it's okay to want to have your sovereignty. it's okay to insist on public safety, whether it's in your schools or whether it is in your nation. >> that's so true.

the average american has become an endangered species and we want to reverse that as soon as possible. these giant trade deficits are a sign of a loss of global competitiveness suffered by the united states. you can blame some of that on the education system. my goodness. we rank very low compared to other countries, in areas like science and mathematics. some of it is the fault of leadership, business and political leadership. lou: as jum my buffet would say, some of it is our own damn fault. we've put up with incompetent leadership in both parties that our teeth should be aching every day that we size up the damage that has been done. >> lou. lou: yes, sir. >> fair competition gets everybody to be at the cusp of the frontier and gets all of the parties involved to use the latest technologies. trade is always a good thing except when it hurts some people m than others. and one of the things that the globalists have forgotten is we need domestic policy to make up

for what the losses have been and we've never put those in place. i think president trump is trying to say we need to have a fair trade policy where our citizens who lose from the global trade are made up for. but we have to have more trade to get close to the frontier. we need more trade but we need fair trade. lou: and point in fact, the president is saying exactly that. i love it when e talks about fair trade and reciprocal trade, balanced trade. >> that was the message at davos, wasn't it? lou: are you kidding me? davos didn't mean a thing it ever said. >> that was president trump's message at davos. lou: you mean his message? >> yes. lou: i was going to say, the globalists at davos, their ears are still ringing. >> american industry has to pick up the bill too. think of all of these great industrial companies from the past that lost their way. they decided they wanted to be more like banks. i can name some of them. that was a giant mistake we all can't be gol goldman sac.

if we make autos, focus on making autos. that's what the germans do and the germans have giant trade surpluses despite the fact their labor is just as costly if not costlier than ours. lou: it is. by the way, it's because their trade policies and they've been sucking the united states dry since the '60s for cryin' out loud. we're going to be back with more. we're waiting on peter navarro. we're having a technical problem at the white house. we do not know why. we're trying very hard to fix our camera or whatever it is that's technically incorrect because he really needs to be a part of this conversation. we'll have more with our panel when you come back. you don't want to miss it. the middle class, is starting to grow. wages are moving higher and president trump has been in office a whole 14 months. wow. what have we got to expect -- what is ahead. we'll find out with our panel when we come back. stay with us. today, we're out here with some surprising facts

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lou: joining me now, a key adviser to president trump on america first economic policies, peter navarro. he's the director of trade and industrial policy and the director of the white house national trade council. peter thanks for being patient. we had trouble with a camera or something. >> i was right here watching it. but these guys are great here. such a pleasure to talk to you

again, lou. before we get started, let me say i would like to offer a warm welcome to larry kudlow, he's going to be joining us in the house behind us. he's been a friend of mine for the past ten years, brother in arms during the campaign and the president sure made a wise choice on that. lou: that's very gracious of you and i'm sure he appreciates that. let's turn to trade. i've been talking with bill lee and john lunski sitting here with me. neither of them in any way has a problem with tariffs. they think it's absolutely critical. we're looking at china that has stolen trillions of dollars in this country in billions of form, not just in trade but an active espionage program for 30 years. the europe ononwith all o unionr

impediments. how soon do you expect to see those tariffs in place having a real effect in protecting american jobs and boosting our national security by making certain that the steel and the lualuminum are the highest quality? >> president trump is doing a great job, very strategic. last week we helped two industry which with pillar industries this country, steel and aluminum. the next thing on the chess board is to deal with something that you've been talking about for years. china is stealing our technology but also more subtly, the transfer where american companies go over to china they have to give china the technology. it's the worst kind of abuse. we're going to be moving forward with some recommendations for the president a. and i'll tell you where what, ts nobody that's going to oppose

that. capitol hill is concerned, the business community, the manufacturers. lou: why does it take the president at the white house to say to the american people, it's not coming from congress, not coming from business leaders, to say our very national security is at stake. our strategic industries are at stake and the ability of this country not only to compete but to engage our enanies in geopolitical conflict should they come. >> look, donald j. trump was the first candidate in modern his think to take this head on. he had the courage to basically tackle the issue and he got into office -- lou: doesn't it say more, peter. >> -- surrounded by the swamp. i mean, look, there's a lot of people to blame in this town -- lou: well i want to blame every damn one of them, peter. >> i'm sure you do. you do that every night, sir. lou: due cos twe're out of time.

>> we'll get it done next time. lou: thanks for joining us. congressman ron desantis among or g tomorrow. good night from new york. kennedy: tonight the house passes a bill but will it do anything. kentucky congressman thomas massey explains why he voted know. the pennsylvania senate race is tight as a latex dress. i'll talk to the libertarian candidate. and the president pushing a second phase of tax cuts. what would that look like? jump on the k train. it's time to get chugging. kennedy: millions of students pulled out of thousands of schools in a nationwide walkout demanding action after the florida high school massacre. some asking for gun control, others for school safety and the innocent voices rang through the halls of congress where the ho