economy. [closing bell rings] small, mid-cap perform really well. liz: -- don't forget to look at those. liz: we won't. they are on the liz claman o.com facebook page. that women do it for the "countdown." see you tomorrow. melissa: the dow edging lower today, closing down about a 5 points here here. it is green for the rest of 2000, marking a new record close, second in a row. we'll take that. that is not bad. david: market likes small sized companies. melissa: we do too. i'm melissa francis. david: i'm david asman. glad you could join us. this is "after the bell." more on the market movers but here is what else we're covering for you during as business hour. america is ripped of off for years and will stop right now. president trump calling out bad deals as high level talks from representatives from u.s. and china continue inside the

beltway. the president is expected to meet with a chinese delegation at any moment now. while there are still reports of serious rifts in his own trade team. we'll keep a close eye on all breaking developments coming up. how do things stand with our second biggest trading partner, canada? canadian prime minister justin trudeau making headlines in his interview this afternoon with our own susan li. what he says about the status of nafta. hawaii's kilahua volcano erupting with the biggest explosion yet, shooting smoke and ash five miles into the area. new warnings issued for the entire island. we'll take you there live for an update. we have breaking news. history has been made in washington. the senate just voting to confirm gina haspel as cia director. she will be the first woman to ever serve in that position. the vote was 54-45, with two republicans voting no,

rand paul, jeff flake. haspel has spent 33 years at the agency. has been criticized for not condemning the cia enhanced interrogation program enough for some senators. she did promise her confirmation hearing never to revive the program. melissa. melissa: back to the markets. the dow turning negative for the year, ending down 54 points, but well off session lows. phil flynn, fox business contributor, watching all action from oil and gold from the cme. nick -- nicole, wan to start with you. what was the action like today. >> that is one of reasons why the dow jones industrial average could not clock in another win earlier this morning. the dow was up 10 of 11 trading days but couldn't hold on to gains of 70 points. got off earlier lows of 130 points. ended somewhere in the middle.

tech and telecom showed weakness. the dow was down as well as s&p and nasdaq. you know what the small cap, russell, we discussed yesterday another record all-time high for the russell 2000. all this as oil gained. phil will hit that. look at cisco systems. tech and telecom has been a laggard. topping estimates with the outlook somewhat tepid. the stock down 3.7%. the country is in transition from legacy tech company moving to cyber and internet. 10-year bond yields moving to highs today. that is worth noting as the u.s. dollar showed strength once again. we've had the dollar at 2018 highs this week. there is a look at 10-year bond yield. 3.11%, highest since july of 2011. here is look at jcpenney. we're focusing on the retailers, many reported, jcpenney, down, big time, down 12%. what happened? well this particular company at least in part blaming the weather for weaker sales, poor

sales overall. over the long term it really is a laggard. it is down 35%. last but not least, breaking news in the last couple hours here, paypal, according to sky news and "wall street journal" may be paying 2.2 billion to acquire a swedish company i settle. they complete directly with square for credit readers this could give paypal a footprint around the globe. what happens? paypal jumps 1.7%. square holds back about 3%. all this happened right near the closing bell. back to you. david: nicole, thank you very much. phil, gold tumbling to the lowest level since december. is that all about the dollar? >> it is, david. that is a big part of it. you would think gold in an environment where we're worried about war in the middle east and worried about the return of inflation, gold would do a little better. not so today. as nicole mentioned, we saw gold at highest level. year. gold at lowest level of the year. lack of fear, lack of rick, you

look at the weak vix index, there is not a lot of fear in the marketplace. you would think with oil prices going up they might get a little scared, right? we awe $80 a barrel in oil, first time since 2014 in the brent crude contract today. the u.s. oil market had a 10-day winning streak going. they ended up even on the day. a lot of selling because of the june option expiration. a big bull market. strong gas and diesel prices as well. back to you. david: i should have sold my gold over $1300 an ounce. i was thinking of it. thank you very much. melissa. melissa: walmart is taking on amazon for the you'll mat online title. the company, amazon, says by the end. year expects its grocery delivery service to reach 40% of the population. david: whoa. melissa: let's bring in today's market panel. scott martin, kingsview asset management, fox news contributor. kevin kelly from benchmark. i am fascinated by stats. i was looking at a bunch of

them. let me read them to you. walmart is the biggest seller of groceries in the united states, bar none. i didn't realize that. walmart gets 56% of total revenue from groceries. amazon wants to take them on. amazon accounts for 43% of all online retail sales. online is only 10% of all retail in the u.s. and many chains are blaming amazon for the reason that they have had to shut down many of their stores and locations but as a result, they have better real estate locations, and they have limited their inventory because they have been forced to by competition. so synthesize all those facts for me and kevin kelly, what do you think? who wins, walmart versus amazon? >> well in the online grocery space it's certainly going to be walmart because they have their footprint all across the united states. when people are driving to work, from work, on their way home, they can stop by amazon, i'm sorry, they can stop by walmart, pick up their groceries they

just bought online. we saw from earnings, 33% of their e-commerce sales have grown and this is only going to continue going forward because they have locations, locations, locations. when e-commerce it comes to bricks and clicks. that is why amazon is starting to move into the physical store location space. whether getting locations from kohl's or just setting their own go stores. melissa: scott, i don't know. i never bet against amazon. they come in and they crush it. one thing i've noticed is that for their online grocery they started to process with brands that you can't find in a local neighborhood. they have figured out a way to get moms like me to be forced to go buy groceries on them online because they have the exact things my kids want and the other folks don't. what do you think? >> moms like you and dads like me, melissa. kk is right, starz physical

locations walmart dominates the space. to answer your question, i hate to do this, melissa i think they both win. melissa: okay. >> tell you why. walmart had interesting acquisition with flipkart where amazon is, but aren't dominating and flipkart is a sub of walmart that is the expanse here, the fact that walmart is trying other markets alongside what they have going in the u.s. i think helps the stock. a little caveat, when the market reacted poorly to the flipkart deal we started picking at walmart to buy into our company and our shares because we liked the reaction. we thought it was overreaction. we do own amazon because of the dominance you talked about. melissa: i think i win because i'm the consumer. these two are beating it out. david: there you go. melissa: prices are getting better, they're trying to kill each other. i'm getting my goodies. david: competition is a good thing. trade talks continue between chinese and u.s. officials in d.c. today. now the president who is about to join in the talks casting doubt on successful outcome.

edward lawrence is live at the treasury department. edward, what can you tell us? >> right now actually the delegation, the chinese delegation getting ready to go to the white house to have the meeting. it was added to the president's schedule for right now. so they expect that to happen any minute at this moment. now earlier today the chinese delegation met with the u.s. delegation at 10:00 a.m. to 12:30 p.m. they broke for lunch. they came back to work for another two hours this afternoon. this is so sensitive these talks, look at steps chinese took that we couldn't even see the vice premier he. our camera caught a glimpse of him going into the motorcade. our was openly camera to get greeting with the u.s. delegation going into the delegation. he shook hand on the steps of the treasury department with treasury secretary steve mnuchin. my sources say secretary mnuchin was in the greeting party. so was commerce secretary wilbur

ross, u.s. trade representative, robert lighthizer, larry kudlow but not peter navarro. the president gave that delegation very strict marching order. >> nobody has ever seen anybody from our country even negotiate on trade. trade with china and with other countries. i'm not just blaming china, china is the biggest, but trade has been a total one-way street outside of this nation you take money out by bucket load, whether the european union which you know so well. whether it is japan or south korea or i could name almost every single country in the world. reporter: the president taking this very seriously. the u.s. has their list of wants. now today the chinese presented their list of things they would like to see in these trade negotiations. as we said any minute now the president is going to meet with the vice premier for these trade talks here. then later on tonight, not at the white house i'm told, the u.s. delegation will have a

dinner to talk strategy about the next day. they will be back at it again tomorrow. david: secrecy is something to see. the chinese want to do this in private, as much privacy as possible inside beltway. edward, thank you very much. we have dinian black from tennessee, member of the budget committee and house ways and means committee. good to see you. the president says he is the negotiator-in-chief by all trade deals. don't be distracted what is going on with his team but some people are kind of distracted between what he said on sunday and what he is saying now. are you clear where he stand on trade? >> here is what i'm clear about. the president said he will put america first. he is the first president in a very long time that is willing to stand up to these other countries where we are having unfair trade practices and say, we'll sit at the table, we're going to negotiate. he is a strong negotiator. i'm glad he is at the table. david: i'm glad he is there. frankly i don't think there is

better negotiator in the country, however, look what he said on sunday about zte. this is the second largest telecom country in china. it employs tens of thousands of people. it is out of business right now because of u.s. sanctions against it because they were trading with our enemies and everything. on sunday he said president xi of china and i are working together to give massive chinese phone company zte a way to get back into business fast. too many jobs in china lost. commerce department has been instructed to get it done. now he is saying once again they're bad actors. so on zte it is very hard to get a clear direction from the president. >> i think that is what makes him such a strong negotiator is that he sits at the table. one time he may say one thing. another time he may say another thing. but the at end of the day he is putting america first. that is it what i like about him. he is going to make sure that a deal that is done will benefit the united states because for too long we've had trade deficits all around the world. it is about time we have a

strong leader to say no more. david: they have been stealing our intellectual property. >> yes. david: they have been -- a whole lot of stuff they have been doing bad but there is also a question about the team, the trade team the president has. some of them believe in open free trade. others believe that should be really delegated down to what is fair trade and nothing more. here is what larry kudlow, the chief economic advisor of the president said this morning. take a listen. >> we have a very strong negotiating team. that doesn't mean there are occasional differences in tactics and so forth, i get all that but i will say this, there is a lot of misreported gossipy stuff. david: is it gossip or is there a real split in the trade team the president has? >> i think one thing i have found from the president, working with him on tax reform i found this, he wants all different views in the room and that again is a good thing in my opinion. i like that, i like to sit

around the table to listen to different views. the president is the negotiator. he will be the one to negotiate the best deal to make sure america is put first. david: you know what? melissa made a great point. when we were in break, follow the business people in the administration, not the academics. i don't think you can go wrong if you do that the president believes in business. business works better than academics no offense, bureaucrats, agreed? >> who knows business any better than he does, right? he has been a very successful businessman. we'll leave him to negotiate. he will do a good job. david: congressman black, i certainly hope so. thanks for being here. pleasure seeing you again. >> thanks for having me. david: absolutely. melissa: hawaii's kilauea volcano erupting shooting plums of smoke and ash five miles into the air. new warnings issued for the entire island. look at that. >> unbelievable. "the new york times" detailing the origins of the trump investigation but did they also just confirm that james comey's fbi spied on the trump campaign?

we'll be asking former federal prosecutor doug burns. melissa: it's a busy day in washington. president trump meeting with the head of nato calling out countries who are not paying their fair share, singling out one country in particular. giving us update on north korean talks. we're live from the white house next with all of that. ♪ liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance.

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whether or not there will be a summit june 12th with kim jong-un essentially was, we'll wait and see. the president says he believes that kim jong-un wants to strike a deal but he also said the recent meeting that the north korean dictator had with president xi of china, the second meeting president trump thinks that might have had influence over kim jong-un. any event the president said both sides are still communicating in the potential lead-up to this june 12th meeting. >> north korea is actually talking to us about times and everything else. as though nothing happened. will it happen? will we be going on that very special date? and can some great things happen? you know, we'll be looking at it very soon. reporter: north korea has objected to the comments made by the newly-minted national security advisor john bolton at the end of last month which he said the libya model is the one u.s. would like north korea to follow as it relates to

denuclearization. north korea pushed back on that possibility. the president earlier today said he would be willing to offer some protections though to the north. >> we're willing to do a lot and he is willing i think to do a lot also and i think we'll actually have a good relationship, assuming we have the meeting and assuming something comes of it and he will get protections that will be very strong. syria never had protections. if you look at syria, look, or if you look anywhere around the middle east, you look at iraq, you look at libya, with libya certainly they didn't have protection they had the exact opposite. that was absolute decimation. reporter: now the president would not say though if he would be willing to reduce troop levels on the korean peninsula, potential outstanding question leading up to and possibly after these talks. by the way those comments were made as the president sat down with the head of nato,ian stoltenberg. president trump has been on a

mission to get other members pay pay 2% in his comments he singled out germany. david: watch out, miss merkel. melissa, thank you very much. melissa: they have a great relationship already. here is retired general jack keane, a fox news military analyst. thank you so much, general. there are some questions for you. let me start with north korea. what do you make of these various smoke signals back and forth? it sounds like the way they're talking to washington nothing has changed but obviously something's changed because they canceled that meeting with south korea and we're getting all of these other reports. what do you make of all this back and forth? >> i think it is mostly posturing. i really do believe the summit will go forward because it is certainly in kim jong-un's to do that and obviously in our interest as well. they are frustrated with something that hasn't been mentioned, has to do with a defector in south korea who is

mouthing off that kim jong-un will never accept the u.s. position of complete verifiable, complete nonreversible denuclearization. that sparked him. john bolton's comments may have done the same. it will come down to this. we'll have a meeting with the kim jong-un regime. they know president has two years on presidency. they want to drag this out, freeze, disarm, dismantle. we want to do that quickly as possible, likely in two years. melissa: to summarize, they are frustrated with a guy mouthing off in south korea, basically they want to slow down our expectation how quickly they're killing to get to this point where from american, especially american press makes it sound like they will hand over the keys and weapons on the day we have the summit. you're saying he is trying to signal, not going to be quite that easy? >> right. and i think our team certainly is expecting that.

never would have expected them to say okay, here's all of our nuclear weapons, here's all of our ballistic missiles. but i do believe there is going to be some real tension because the point is, is that it is likely kim jong-un does not want to give us all of his weapons even though he will tell us he is giving all of those weapons. so verification and inspection will be a key aspect of this. that will go on for months after the deal is formulated. melissa: so probably we'll have this summit or this meeting will go on. then there will be sort of the press afterward where the media will say, oh, we didn't get what we were promised or what we thought they would get out of it, and hand over all the weapons after the summit, look it is not a great deal, we should prepare ourselves, that is the reality he will not try to hand over everything right away and it will be a longer negotiation than people would like? >> i think likely he will give us something. melissa: yeah. >> to show some good faith but i

don't believe it will be all of his missiles and all his nuclear weapons. melissa: yeah. >> that expectation is a bit much. but as long as there is a process there, and there are milestones and objectives associated with that process that makes sense to me. melissa: i don't want to throw you a curveball but david and i were just talking about these reports that assad has gone to russia? what do you think about that? what do you make of it and what if it is true? >> has been there before. melissa: as of right now, what do you make of that? >> i don't think there is a major issue there. russians and iranians successfully propped up the assad regime. there will not be any political settlement in geneva. that is pure fantasy. they scored a military victory here, we have to be honest with ourselves what this is really is. iranians are so confident, conducting a military build-up

in israel targeting israel. melissa: why we had to pull back the iran nuclear agreement. why we have to be very tough from here, i would think you would agree with that? >> absolutely. we still don't have a strategy in place to counter the iranians in the middle east particularly in syria. we have rhetoric that says we'll do that but we don't have a strategy yet. melissa: we need to get that going. thank you, general. >> thank you, melissa. >> closer to our own border venezuelans are heading to the polls sunday despite opposition claims the contest is already decided. incumbent nicolas maduro is expected to win despite awful inflation, dire shortages of everything from food to medicine. maduro in power since 2013 is preventing some of the opposition's most popular candidates running in sunday's vote. it is a rigged deal. melissa: amazing. optimistic on nafta. canadian prime minister justin trudeau telling fox business he is feeling positive about a deal

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melissa: canadian prime minister justin trudeau talking one-on-one with fox business's susan li about the nafta sticking point. she joins us live from the newsroom with more details. susan, what did he tell you? >> sticking points apparently. may 17th this is soft deadline that speaker paul ryan he needed a nafta agreement in hand to pass it through the 2018 session of congress for fast track authority. the deadline has come and gone. i asked the canadian prime minister if he had any updates for us in terms of where nafta was going? >> one of key sticking points

for mexico and for us, is this idea of a sunset clause and a trade deal to put it in, i guess, put it in a frame maybe someone, i don't know did a lot of real estate deals might understand, if you agree to build a building on a particular parcel of land but only hold the lease for five years, and after five years you actually lose the lease, you might not be interested in investing the building going on that land. >> you heard the arbitration another sticking point. rule of origin on automobiles and cars, i believe they have a deal but that was supposed to be a third sticking point. but he did bring it up that they have some sort of agreement

there. he didn't, he didn't comment on any other agreement in 2018. when i asked him about other issues including north korea and whether or not we can trust kim jong-un, well, you know, trudeau says, there are people in this world that you can't trust but you have to work with them anyways. one more interesting point for you guys, he was not invited to the jerusalem embassy opening and isn't invited to the royal wedding this weekend either. melissa: interesting. >> yeah. melissa: there were a lot of nugget in there unexpected. thank you for bringing that to us. that was really good stuff. thank you. david: i thought canadians were cousins to the brits. i thought they would be happy to have them over. melissa: yeah. david: all three major indices averages ending lower. this as the 10-year treasury yield continues to climb for the fourth straight day. it is at 3.12% right now. this is the highest level since july of 2011. pretty high right now. melissa: all right. your clothes could be getting more expensive. the trump administration says it

is looking to protect consumers but many retailers beg to differ. the fallout is coming up. david: also the mueller investigation entering year two. the president vocalizing his frustrations with an investigation stealing spotlight from his administration's accomplishments. more on that coming next.

david: very busy day marking one-year anniversary of the mueller investigation. there is a judge critical of investigation finally getting ahold of the so call scope memo. in gave mr. mueller's marching orders. judge t.s. ellis will decide whether mr. mueller exceeded his original scope of the inquiry. today "the new york times" had a long piece seeming to confirm an earlier report that the fbi actually placed a spy in the trump campaign, first time that ever has been done, if true, in presidential history. here now to discuss this is doug burns, he is former federal prosecutor. doug, let's first go to this judge, t.s. ellis. >> yes. david: he said mueller is indicting people with the sole purpose of getting the president, that is he indicting people in something that is way beyond the scope of the russia investigation just to get them, squeeze them to get them to say something bad about the president. >> the problem he identified, he really gave him a tongue-lashing, manafort was

already under investigation in the eastern district of virginia, david, before mueller was even appointed. so the point is the judge calmly said, guys, how did that arise from the mueller probe? david: now he has the scope memo, which unredacted, he can look at whole thing. he can't unfortunately share it with us, but look at himself. >> original scope memo said russia collusion and what developed from it. they went back to the rosenstein for expanded scope incidentally. that is the second memo. judge, a lot is redacted. judge said no, no i want to see it. david: bottom line, if in fact the judge decides mueller exceeded scope of the original intent of the investigation, could this be the end of the mueller investigation? >> well i don't think it goes to the whole investigation. i think remedy david, is more specific just to manafort. he could either, a, dismiss the manafort case in front of him saying beyond the scope, or b, refer it to the eastern district of virginia, just like the cohn

matter was referred to the southern district of new york. david: let's go to an issue whether there was a spy that the fbi put in the trump administration. as i said, never done in presidential history, certainly by somebody who became the president of the u.s., to have a spy. >> yes. david: they used something called a national security letter. i had been unaware of this. kind of like a subpoena but you don't need a judge to get it. the fbi essentially can write their own ticket for these things and serve it to people, right? >> in federal law enforcement in addition to grand jury subpoenas, you have administrative subpoenas that agency can issue. irs does that after 9/11 what happened was these information letters were authorized by congress. the point is, you don't need a judge's approval. david: that is for terrorism. this is an investigation, on a guy running for president which has all kind of implications for mixing church and state. >> totally read my mind. the dark secret in federal law

enforcement, seriously you have things designed for organized crime or drug dealing, in this case terrorism, they start using it in other areas. so you're absolutely right. i think it was a little bit overaggressive. david: over the top. what about putting a spy in a campaign? by the way, it is less important who that spy was as kim strassel on "wall street journal" said last week, as it is when the spy was put in place. >> right. david: if the spy was put in place before the papadopoulos meeting that they say is what led to the investigation, then there is something else going on. it is an investigation borne of prejudice, not of evidence. >> no question whatsoever that this has to be looked at really closely, right? everybody says, sunlight is the best disinfectant, you heard that from different sides? that is what you need here. the point is, oh, we already had ongoing intelligence investigation. that is why we needed to do that it is problematic. david: i'm getting a wrap.

what you've seen so far is this investigation borne of prejudice or evidence? >> i think there are problems that need to be looked at with the way it started and the way it has been conducted. david: we're looking at it now. dug, great to see you. >> my pleasure. melissa: tensions rising as a delaware judge shoots down cbs's request for temporary retraining order against the redstone family. this will be beginning of what will be an ugly fight who will control the future of company. connell mcshane is following the case closely. what can you tell us? reporter: a win today for shari redstone a loss for les moonves. we'll see what happens next. the drama definitely drags on. the judge declined to issue a restraining order against redstone. she is firmly in charge. she could come in, fire the board ever directors if she were to choose that just so happens, in 20 minutes there is a board meeting supposed to start. we'll see. the statement from cbs we received earlier, while we're disappointed the judge did not

grant a tro, the ruling clearly recognizes we may bring further legal action to challenge actions by nai, national amusement company. that we consider to be unlawful and we will do so for now though the takeaway if you're following all this drama, redstone stays in control. the board is unlikely to dilute her stake as was the plan even if they move forward with the vote, unknowns, will she fire directors? what happens to moonves? does the merger move forward with viacom? moonves loses this fight and speaking to analysts he has committed advance, he run cbs well, advertisers like him, he gets paid at least $150 million if he is fired. that is pretty good position to be in. he went in, getting back together with viacom didn't make sense from his point of view. he lost that fight now but real losers might be investors in

cbs. intraday of the stock going down as soon as the ruling came out. some hoping that cbs would remain independent, do a deal with a telecom or technology company. that made more sense to them. viacom's stock came back at the end of the day but still ended up down. melissa, thanks to the delaware judge, the redstone family is in control. the cbs board is meeting in 18 minutes. we might get more fireworks within the hour. we'll see. melissa: connell mcshane, on top of it. david: what a story. melissa: yeah. david: a disturbing trend for big implications for america's aging population. birth rates plunging to a to-year 30-year low. less younger workers paying into social security at a time baby boomers are getting ready for retirement. rates are falling consistently for three straight years. not a good thing. melissa: a blowout on the big island, hawaii's kilauea volcano

erupting sending a plume of ash30,000 feet into the sky. we have live report from the ground. that's next. over the years, we built on that trust. we always found the way. until... we lost it. but that isn't where the story ends... it's where it starts again. with a complete recommitment to you. fixing what went wrong. making things right. and ending product sales goals for branch bankers. so we can focus on your satisfaction. we're holding ourselves accountable to find and fix issues proactively. because earning back your trust is our greatest priority. it's a new day at wells fargo. but it's a lot like our first day.

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e*trade. the original place to invest online. david: hawaii's kilauea volcano erupting sending ash soaring 30,000 feet into the air. fox news's jeff paul live from the scene in hawaii jeff, there are also big boulders that are very dangerous, right? reporter: absolutely. this is where we're standing where first-responders are staging to get together in case there is another erupt shun at volcano. so far several areas near the bottom of the volcano have been evacuated due to high levels of sulfer dioxide. this is the area where lava is spewing in the neighborhoods. we've seen those images. we're a hour's drive away from the summit where they estimate the ashes spewing thousand of feet in air.

down below where the fissures are, the toxic gas forced several schools to close. for those close, directlydown wind down wind from the ash, they need to stay indoors because this might not be over. >> because the situation as i said is dynamic. so you could have the event such as we saw this morning. it is a short-lived event. it might, you know, it may have relieved pressure temporarily but we expect these kind, like i said, more groundwater may be getting into the system. we expect that similar events could continue. reporter: now from where we're standing you really can't see that dramatic plume of ash and for most of the island it is hard to get a visual on it. it is cloudy out here. i don't know if you can see behind me, the rain is coming down. compared to other days the air looks difficult and it is cloudy down below.

it tastes different. every one is on high alert watching to see what this volcano could do next. david: a dangerous time for those folks. jeff paul, thank you very much. take care. melissa: i hope he is careful. david: yeah, i know. got a cast on. melissa: shoes and clothes are in danger getting a lot more expensive. president trump's tough tariffs on chinese imports have not gone into effect but a leader in the clothes and shoo-in industry, what he did this week to put the kibosh on that's tariffs all together. ♪ lity. we can help with the financial ones. learn more or find an advisor at massmutual.com with dell small businessout your technology advisorsial ones. you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

melissa: u.s. retailers are warning of expensive consequences for american consumers if president trump's proposed tariff on chinese imports goes into effect. our next guest condemned those tariffs at hearing in front of

the international trade commission yesterday. rick, is the president and ceo of american apparel and footwear association and he joins me now. the numbers are really staggering. we get number one, they are the number one apparel importer, china gives us most of our imports for apparel, 72% of our shoes come from china. 41% of clothing comes in. you say it would add how much to each family's annual bill? >> at least $500, but that is minimum. that is really minimum. melissa: so this is always my question about this. when i talk to ceos of companies who make almost anything, they would rather make it here in the u.s. but the cost is just too high. what would it take in the u.s. in order to make the cost the same? i understand labor is so much cheaper in china but lower energy prices, like what could you do here in the u.s. that would compensate for the higher cost of labor? >> it is very hard. the reality is to make raw

material here, make fabric here, because that is capital intensive. that doesn't involve a lot of people but assembling a garment is difficult, very labor intensive. in order to be competitive in the world market you have to go elsewhere. melissa: but here is the flip side of that, what people tell me, if you make something in china, you don't have the same quality controls. there is certain percentage of your product you can't sell anyway. you have the higher transportation costs because you're going there, shipping it here to be sold. so you could save on those two things, right? >> the thing you would save most on is time, speed to market is very important. melissa: okay. >> quite frankly quality coming out of china is very good. the logistics out of china is very good. where we are interested in reducing 41% of the apparel and 72% it just mathematically doesn't work. it has been going on for years. this is not something that's

new. melissa: yeah. but there has to be a way to make the math work or be closer? >> they're trying everything. they're trying local factories. they're trying automation. melissa: automation, right. that is one of the big things with labor, if you automate you don't need the labor. >> the problem with automation with our industry, if you look the a garment it stretches and it moves and comes in multiple sizes, it ends up being a lot of hand work. so it is very, very difficult process to automate. melissa: what about lower energy prices? that is something that makes a big difference? >> it makes a huge difference but not enough to make it competitive. believe me if we could make it in the usa we would. melissa: yeah. when the president looks at tariffs and he is saying there is huge tariffs on american goods that go there, there is none here in china, the goal is to make all the tariffs lower. do you think there is a chance through these negotiations they get china it lower tariffs still

being able to get your product from there? >> it is more complicated than that. i wish there was an easy solution to this problem. we're having in washington right now three discussions. one is on nafta, effects on that. melissa: right. >> one is literally what will happen with these tariffs. and the other is the vice premier of china is in town looking what will go on with their trade situation. tariffs would not be helpful if they were on apparel. right now, believe it or not, it is a hidden tax on the american consumer, right now, everybody pays, believe it or not, 12 1/2% on apparel and 11.3% on footwear. you're paying that already. you want to add 25% on top of that? melissa: that will be a stick to bet theme down everywhere on all the concessions. that is starting point of negotiation. >> it is starting point because having inflationary effect.

people are scared, looking to source elsewhere. the old adage you can't put 10-pound in five pound sack. it will burst. they're looking to where to place goods. prices are going up. >> they're screaming i have to go. i hear you. you make great points. we appreciate you coming on. david: being kicked out of the oval office is a badge of honor. jim acosta bragging about treating all presidents the same. >> say once and for all. >> i'm say once and for all i'm moving on to james simpson. i will not take another question from you. >> can you give us a question. can you -- >> i'm not taking your question. >> can you -- >> you are fake news. >> i want to ask you sir. >> i'm changing it from fake news. >> doesn't that -- >> very fake news. ♪

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. >> are you their least favorite of all? >> probably, but as fdr once said i welcome their hatred.

>> you do? >> i do. when i covered barack obama, i was just as tough on him. people might not believe that. [ laughter ] >> jim acosta claiming he's always been tough with presidents. you be the judge, take a listen. >> i wanted to ask you what some people are calling your best week ever. >> all right, that was a question to president obama, your best week ever. >> here's "the evening edit." >> i want to have peace in the world, that's what i want, more so than the nobel peace prize or any other prize, i'd like to see peace ideally in the middle east but in the entire world, and i think we have a chance of doing it. liz: president trump weighing in on north korea, china trade, the european union, syria and more. we're on it. this as the u.s. comes up with a possible deal on north korea nukes, but will north korea take it and meet with president trump next month? we'll bring you the details. and tough negotiations as u.s.-china trade