this will affect prices of items americans purchase. [closing bell rings. cheryl: alex, thank you so much. dow snaps a three-week losing streak. now over to david asman and melissa francis. melissa: a trade war is on but a healthy economy is focus on wall street. the dow inding the day up 94 points, off session highs but still positive on the day. we're in a trade war, right? s&p 500 also ending the week in the green. the nasdaq surging with gains in technology. i'm melissa francis. happy friday. david: i call it a trade skirmish. melissa: i like that. david: happy friday to all of you. thanks for joining. i'm david asman. this is "after the bell." more on big market movers, first here is what else we're covering for you in a very busy hour. a major decision over the

weekend. democrats already are spending millions of dollars to block the president's pick even without knowing who it will be. monday's historic decision will be beginning of a game-changing week for the president. latest details from the white house. high-stakes talk in north korea. secretary of state mike pompeo putting on pressure, urging local officials to keep kim jong-un's promise and dismantle his nuclear arsenal and the missile testing. among our guest this is hour, steve forbes on trade and the economy. retired four-star general jack keane on north korea and the coming russia summit. jay timmons, ceo and president of the national association of manufacturers. melissa: back to the markets. the dow climbing higher for the second day ending positive for the week to snap a three-week losing streak. phil flynn watching action in oil and gold from the cme. nicole petallides on floor of new york stock exchange. nicole, start with you. talk to me about the trade. >> tariffs and trade, and also

jobs. tariffs, jobs. we went back and forth, everybody is talking about those two topics. looks like leaning towards a jobs report which was a perfect report. we had 213,000 jobs added more than expected. unemployment went up, because 600,000 people entered the workforce. they are looking for jobs. with that, that really brought optimism. manufacturing numbers boosted optimism. dow, nasdaq, s&p moved to the upside snapping a three week losing streak. we're watching trade related stocks which have been under pressure. you can see today, different picture. it was up arrows across the board. no one seemed to be worried at all $34 billion tit-for-tat duties put in place between china. apple off the all-time high of 194 and change. nvidia as a winner. markets as i noted it was

winning week on wall street. s&p and nasdaq snapped a recent losing streak of two weeks. russell 2000, tech, all up arrows. facebook new high, apple near the highs. biogen, well that trial success for awls heimers -- alzheimer's, big move for biotech. winning week. back to you guys. david: thank you, nicole. happy friday. phil, oil was up a little today but down for the week, snapping a two week winning streak. that is good news for the week. >> it's a good news if you're a buyer of oil, no doubt about it. a lot of concern in the oil market about more production coming online from saudi arabia but even a bigger concern, dave, this week was concerns that a potential trade war could actually lower global oil demand. but it seems like oil traders shook off those fears later in the day. that strong jobs number in the u.s. means strong oil demand

obviously. also there are some talk that south korea is going to join the united states and get zero oil from iran. they will join president trump's call for zero oil exports. that was a very supportive story. you have to look at the atlantic, dave. there is a category one hurricane in the atlantic. david: yes. >> it's a small storm, hurricane beyrl. but it could empact floats of oil going in and out of the country. oil traders have their eye on i will. oil prices were not impressed with anything. they could barely move today. closed a little bit lower but closed a little lower. david: not a good day for my krugerrands. melissa. melissa: the economy adding 213 jobs in june. 18,000 more than analysts estimated. unemployment rate unexpectedly

rising. that is good news because more than 600,000 americans entered labor force. more americans came back in, seeing new jobs. low unemployment prompting workers from the sideline. let's bring in today's market panel, jack hough, "barron's" editor, carol roth, former investment banker and paul, i will start with you, what is your reaction to this report? >> trade report or jobs report? jon at jobs report. >> on the jobs report i think it's a very strong jobs report. great job creation. we have healthy up tick in unemployment. i think that is, i call it healthy, people are coming in off of the sidelines. so we have 600,000 people joined the labor force. we still don't have the wage growth we like to see but i think going forward we might see wages tick up. melissa: carol, that sets us up for the goldilocks type report, where you don't see that much wage growth, that doesn't mean there is very much inflation out there, the fed can sit back, relax. what do you think?

>> i certainly agree with you, melissa. it was actually surprising given we don't have a lot of slack in the labor market to see a job report this good but i agree with you this gives the maybe wages are not as bad as we thought and maybe we can take the foot off the gas pedal here. melissa: jack, maybe this trade skirmish, i can't say skirmish, i go with dave. if the trade battle is set aside, the president wins, we're off to the races. we'll go supersonic on the economy? >> i guess so. melissa: i knew you would say that. >> from a skirmish to thumb wrestle. $34 billion. what is $34 billion of goods among friends. that is not enough to hurt the economy yet. the problem we don't know if there is endgame here in sight. we could see some of our earnings growth numbers downgraded in quarters to come. the important thing for the

second quarter we're approaching reporting season, those estimates have actually been rising. that is not because of tax cuts. tax cuts have already been put in the forecast months ago. that is because business conditions are strong. with a jobs report like this, this is report good for workers, great for stock investors. david: boy, almost impossible to keep this market down. investors dismissing trade war fears as china strikes back with tariffs on u.s. goods. fox business's edward lawrence live in d.c. with the latest. hi, edward. reporter: david, chinese ministry said any attempt to bully china with trade will fail. the chinese digging in on this. chinese commerce of ministry said specifically, quote, president trump last launched the largest trade war in economic history to date. this kind of taxation is a typical trade bullyism which is seriously jeopardizing the global industrial chain. now china matching u.s. tariffs,

25% on variety of products. we're talking also soybeans, suvs, as well as crude oil. the united states as you know has the $34 billion in chinese goods that are being taxed or tariffed starting today at 25%. there is another $16 billion in goods that will come in two weeks under these same tariffs. these are technology-related goods aimed to target china's technology dominance by 2025. now the administration here says china still just paying lip service to any changes. they have not seen any real changes in stealing american technology and opening the markets to u.s. goods as well as removing all their tariffs. >> right now, he has called the bluff of other countries that basically been abusing our firms and abusing our workers for a long time. but he wants better deals. as you worry about the short run strategy, the long run goal is extremely worthy one. reporter: on top of all this we

have dueling tariffs with mexico, canada, european union, also india. at the moment no deals are being done but possibly alluding to the fact that deals might be in the works here. other countries are trying to possibly wait to see if political pressure at home will get the u.s. to sort of back off their position, but if you look at jobs report today, as you guys have been talking about, it seems fairly strong. the president pointing to that tweeting out, jobs, jobs, jobs. the president saying, at least pointing to the fact he is willing to sort of set this out for now. he wants to level the trade playing field when it comes to tariffs. according to him, zero tariffs across the board, but at least level the playing field. david? david: jobs and growth. a lot of growth going on. edward, thank you very much. carol, we hear about this economy, jack laid out the details what is going so well with this economy right now beyond the jobs report. is that why the market taking the trade skirmish in stride? >> i like the word skirmish

because i think the skirmish is making people feel skirmish. david: i didn't say skirmish but that is a catch between skirmish and squeamish. >> there is lot to like what is going on in the economy. the challenge with tariffs, tariffs are taxes and taxes are not good for growth. i think market is giving everything a pass. they are focusing on jobs. they are assuming it will be contained, not expanded. david: right. >> i think if that happens, if we get numbers for next quarter, if we see guidance continue to increase, that will be good for the market. however if this starts getting into from a squirmish something more looks like a war, i think that will be a challenge and that could impact the back of the year. david: paul, when you listen to the chinese, the chinese call this the largest trade war in economic history. that is a little overblown, don't you think. >> absolutely.

what do you expect them to say? i've been actually calling these discussions with china trade negotiations because i think it is part of a much larger negotiation strategy, having to do with the protection of u.s. intellectual property and technology, as well as whole host of other things. i think the trade and tariff discussions are part of something much more broad. david: now, jack, if we do ratchet it up though, we are talking president going to 200 billion, even half a trillion dollars in tariffs, how does the market react to the next ratchet up? >> i think it reacts negatively. i can't imagine a scenario where tariffs go that broad and that high and it helps stock investors but i will say, keep in mind the backdrop right now. shanghai stock market down 17%. david: it is getting crushed. >> the things look much different in china. united states only economic zone in the world with positive earnings revision. we're starting from a position

of relative strength. david: so carol, do we have the economic power when you look at the economy overall, when you look how china has been suffering right now, probably because they have got the communists trying to run everything and they're not good business people, that does play into all this? is jack right, we are playing from a position of big strength here? >> i think that is oversimplistic. i think we have the economic strength but they have the political timeline. they can do sort of whatever they want, which is what they have been doing. the challenge is, those numbers start continuing to deteriorate in china. that could have an impact on global markets overall. so even though we have this economic strength right now, we certainly don't want this to spill over into the global economy and be a drag on the global economy. >> right. >> at the end of the day that will impact america as well. david: good point all, jack, carol, paul. have a good weekend. >> that was a great discussion. david: very interesting. melissa: business is bracing for tariff impact.

next jay timmons from the national association of manufacturers explains why his industry is calling on the white house to get china back to the negotiating table. i don't know how we know china left the table. but anyway, later in the hour steve forbes sounds off an escalating battle between the white house and china. david: a task for secretary of state mike pompeo sitting down with officials in north korea today. imagine doing that? boy, that takes a lot. working to make sure kim jong-un keeps his promise to denuclearization. jack keane, he has been very out.on what should happen next, you don't want to miss it. the retired four-star general is here to respond. ♪us but nothing says "we got married" like a 12 ounce piece of scrap metal. yo! we got married! honk if you like joint assets. now you're so busy soaking up all this attention, you don't see the car in front of you.

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♪ melissa: bracing for impact. industries preparing for effects of the trade war between the u.s. and china. one organization calling on the white house to get back to the negotiating table before things escalate further. jay timmons, president of the national association of manufacturers. he joins us now. jay, how do you know china left the table? >> from the reports we have been seeing, various news outlets, china is simply not at table right now. secretary mnuchin, commerce secretary ross went to china few weeks back. it looked pretty promising there would be discussions. we are very hopeful there will be further discussions to end, i will call this a trade war i am concerned how this will escalate. china needs to frankly come to the table to deal with a lot of issues that have been problematic. melissa: the president says that things are going much better than we think behind the scenes. that they are already coming back and want to deal. you don't think that is true? >> i don't know. obviously i'm not privy to those

conversations. i'm hopeful that is the case. what i do know, what i think the american people know is that we have imposed tariffs on chinese imports and china has imposed retaliatory tariffs on american goods. that does not help manufacture evers. that does not help consumers. we're hopeful that this is way to negotiate a better path forward for trade relations between the two countries. >> if you end up with lower tariffs in the end, will it have been worth it? >> first of all we want to see no tariffs. melissa: of course everyone does. >> that makes sense. melissa: we all understand a tariff is tax and bad for everybody. we have that point of agreement. >> yes, but however, we have to have fair and balanced trade. we need to see end to intellectual property theft. need to see an end to counterfeiting. we need an end to state owned enterprises an an end to dumping. it is not just tariffs. it is market entry. china can just bring anything they want here, we can't the

same there. all the rules based trade objectives are part of a negotiation or agreement going forward. melissa: jay that is fantastic we're all on the same page in terms of where we want to go. >> you and i negotiate this thing, be done with it, right. melissa: but i think everybody that understands business and understands the economy at all knows that the goals that you're after are the things right for all of the players in fact. it is just a question how we get there. we've been in a position where we seemingly given away our leverage for so long. i understand you're nervous about the way the president's negotiating it but the position that we started in is pretty bad too. >> actually i would not say that i was nervous. i am curious to know if this is the tactic that is going to actually lead to a good, solid rules based agreement but i completely agree with you. for the last 20 years presidents of both parties attempting to force china to play by a logical

set is of rules. they have not done so so now we're seeing a different negotiating tactic. it is one that we hope will result in a positive agreement moving forward. quite frankly, we hope that that happens sooner rather than later. i don't think that's, i don't think that is a bad objective to have. melissa: no, it makes a ton of sense. doesn't it make you feel, i don't know anymore reassured to see, they're in a lot of pain right now. if you look at the stock market. they don't have elections coming. maybe they can endure more pain. they're certainly feeling effects of this already. >> right. i don't know that i would call their elections elections as we would know them. melissa: i was being sarcastic. i know they don't have any. >> obviously they can endure a lot of pain over there. i think this is obviously a worldwide issue. we have a global economy. i think it is perfectly fair to ask our allies to put pressure on china but i don't want to us

come after our allies without having that as our common goal, going after china. all roads to, to subsidized products and trade practices seem to lead to china right now. that really needs to be our focus. melissa: definitely but the president offered the g7 zero tariffs, why don't we drop it. they looked at him -- >> i like to see that happen worldwide. that would work out pretty well, as long as we're playing by same set of rules. melissa: jay timmons, you are infinitely reasonable. i hope you come back. >> i will tell you this as parting shot, 95% of manufacturers today have optimistic outlook about their business. melissa: good. >> and 87% are investing andp% are -- 77% are hiring. good day for manufacturing. we want to keep the trend going. melissa: good, sir. david: that is why the market up. twitter is escalating battle against fake and suspicious accounts.

wait until you hear how many it is suspicious. suspending 70 million accounts in may and june. more than a million accounts suspend ad day according to new report by "the washington post." that pace continued into july. the rates of account suspensions more than doubled since october when the company under congressional pressure revealed how russia used fake accounts to manipulate the u.s. presidential election. that is a lot of fake accounts. wow. melissa: it is. dangerous conditions out west. officials ordering new evacuations as raging wildfires destroy homes and shut down highways. a live update coming up. president trump narrowing down the choice to replace justice anthony kennedy on the supreme court. details on the short list next. the employee of the year, anna.

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melissa: the president is preparing to announce his nominee for the next supreme court justice on monday. we are hearing more details about who is on the short list.

blake burman is live at the white house with the latest. blake? reporter: this keeps on getting narrower and narrower and narrower, melissa. we believe president trump is down to three, possibly a fourth at this point. we also know according to sources that vice president mike pence has been instrumental in the interview process. he was so last time for the process that led to the selection of neil gorsuch, the white house following a similar playbook this time around. the vice president interviewed brett kavanaugh at his residence in washington, d.c. that make sense. kavanaugh sits on d.c. court of appeals. kavanaugh was a former staff secretary to president george w. bush. the other two, the vice president met with indiana as those two are based on courts out of the midwest. raymond kethledge was appointed by president george w. bush to the sixth circuit. president trump had a very good interview with him. amy comey barrett, on the 7th circuit of the she was

appointed to the circuit by president trump. the white house is preparing for the possibility that the president could settle on thomas hardiman as his election. hardiman ended up being the runner-up last time around when the president eventually selected neil gorsuch. the white house is preparing maybe he goes to number two this time around. president has not said publicly which way he is leaning. listen to him last night in montana. >> if you tune in monday at 9:00 i think you will be extremely happy with the selection, right? [cheers and applause] they're all great. they're all great. and i want to thank justice kennedy for his lifetime of truly distinguished service and he had confidence in me. reporter: here is how the schedule shakes out. right now president trump is in new jersey. he will be joined by the vice president tonight. we're told the two compare notes. a decision likely to take place some point over the weekend because the president will announce it monday night.

after that it will be off to europe. president trump heading to brussels and nato headquarters there. he will press nato nations to spend more on defense. he heads to uk with meetings with prime minister theresa may and a sit-down with her majesty, queen liz -- elizabeth. and first lady joins as well. the president has couple days off in scotland and then finland to the summit with vladmir putin. safe to say the president will make his pick monday night and headlines follow him overseas after that. melissa: i love how he tees up prime time, 9:00. he is off to see the queen. hilarious. blake, thank you. david: in his stride last night. for more on the president's supreme court decision, john decker, fox news radio white house correspondent. he is attorney. only attorney in the white house press room, is that right, john? >> that's right, david.

how are you doing? david: we hope you're a recovering attorney. right now you're a practicing one. who do you think it is going to be? >> as we heard a moment ago. david: don't hedge, don't hedge. >> blake read out fine candidates. the final four, hearing those names, raymond kethledge seems to me a really good choice for the president. obviously anyone on that list has been vetted by the federalist society. he is an individual who served 10 years on the circuit court in michigan. and i think that the president got along well with him during that personal interview that they had at the white house. for me that the choice i think the president will likely go with. prime time on monday night. david: by the way, we just had color bars go up. somebody pushed wrong button. wasn't you set alarms off. >> okay. david: my own pick is tom hardemon, as blake was telling us he was up for the position when gorsuch got it. he was number two on the list.

you don't think he has a chance? >> i do. he served both as district court judge and now serves on the third circuit court of appeals in philadelphia. he is certainly well-respected. as we mentioned just before, he was the runner-up to neil gorsuch when the last vacancy came up for president trump last year. so the president's intimately familiar with him. the interview that he did last year with judge hardiman. david: seems like conservatives knocked cavanagh out of run is that right? >> that's right. two conservatives are concerned about his nomination. i heard from marco rubio's folks and also from ted cruz's folks. they don't think he is conservative enough. see him as wishy-washy on social issues. for them that might be a deal-breaker. then we're looking at those other three names blake mentioned moments ago. david: talk about a deal breaker, some are concerned, susan collins and murkowski from

alaska, concerned about one of the women that is up for the position and normally you would think that woman senators would support a woman as supreme court justice but not coneey barrett. i assume because of her stance on abortion? >> we don't know specifically her stance as a judge on abortion. we may know her stance as -- david: if we don't know then why are they opposed to it? >> they're concerned about many so of the things she said during her confirmation hearing which was less than a year ago. david: is it because, i have to cut to the chase, jon. is it because she is a catholic? if so when did being a catholic be a disqualifier for that position? >> i can't get inside the head of either lisa murkowski of alaska or senator collins of maine. i don't know their specific reasons. i think any of those names ultimately could get confirmed by the senate. harder pub for some, rather than

others. judge barrett might be one of individuals might be a harder push to get them over the finish line. david: the extraordinary thing, if she hasn't specifically said what she thinks about roe v. wade, i can't think of anything other than religion being what these people are against which, i thought we were through with that when john f. kennedy entered white house. who knows. jon, thank you very much. >> thank you, david. have a good day. melissa: stocks popping on a strong june jobs report. investors dismiss fears of a trade skirmish. the dow ending up 99 points, a little off session highs. the dow snapping a three-week losing streak. david: standing tough on trade, fears of a trade war between the world's two biggest economies, becoming reality. or is it? where does the trade fight between u.s. and china go from here? steve forbes, forbes media chairman is coming right up. melissa: easing tensions with north korea. mike pompeo looking to lock down a timeline for kim jong-un to

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tokyo with the very latest. hi, rich. reporter: hey, david. the secretary of state is preparing for his second day of meetings in north korea. it is unclear if he will meet with kim jong-un. he did the last two times he went. first as cia director. the second time as secretary of state. yesterday, which was friday, it is saturday here now, the secretary had three hours meetings with top north korean officials. these discussions are an attempt to work out major details outstanding from the framework that president trump and kim jong-un signed last month in singapore. american and north korean officials have been in discussion with the summit. this is secretary pompeo face-to-face meetings with north korean officials since the singapore summit. the tear says on the trip i'm continuing to momentum on implementation what the two leaders promised each other and the world.

to rid the korean peninsula of nuclear weapons. the exact definition of that, how the u.s. will verify and how the north korea will dismans tell its program and they are trying to understand the extent of north korea's nuclear program and capabilities and confirm it is no longer a threat in such a secretive country. kim jong-un continues conversations with xi xinping, china is essentially the top ally in the region, really the world for north korea. the u.s. and secretary pompeo will consult with american allies. that starts later this weekend. the secretary of state will come to tokyo and meet with top officials from japan and south korea. david? david: rich edson, about to get a sushi breakfast in tokyo. melissa: here is retired four-star general jack keane, fox news senior strategic analyst. thanks for coming on and what do

you think mike pompeo's stance is right now? certainly great question. what the singapore summit was largely about one deliverable, simply the pledge that north korea would denuclearization with a signature on a document. that was the deliverable. and now amid the reports of course that we're getting in the public domain they're actually expanding their nuclear, ground and submarine ballistic programs, secretary pompeo knows the details of what north korea is truly up to. so he is going in there with that knowledge that goes way beyond what we're being exposed to in open press. but what the deliverable is, what he wants from them is specifically this. he wants identification of location, of all of their nuclear sites. that's fuel, storage, research, testing, et cetera. and, the same for their ballistic missile sites.

also, something we don't talk about, but our government is very much aware of, is chemical, biological weapons that we know they're holding. he wants the location and identification of all of that. step two, then he wants access to be able to verify what they just provided to him. that would be with inspectors, international observers, to be able to do that. once they give us this information, we'll have a sense if they're telling the truth or not, melissa. we know some of that ourselves, our own intelligence agencies. melissa: yeah. >> the final thing is, what people are talking about, a timeline to disarm and to dismantle. we will arm wrestle with them over that. assuming the other two steps are there. and it is accurate. then he wants at least on paper, a timeline, they will probably want that over several years at minimum. we'll do that in a couple of years at a minimum. melissa: i would ask you, you

know all these players, look at video of may 9th, everybody is smiling back and forth, kim jong-un is smiling, mike pompeo is smiling, do you think that is his posture now, or do you think he has gone over there with a very serious stance, we're not fooling around anymore? >> yeah. but, he is dealing with the asian culture and, building up trust is very important. we have got to understand, the lack of real substantive dialogue between the two nations, united states and north korea. the lack of ambassador and diplomatic relationship is profound. in that culture, you don't have one or two meets and then you're buds all of a sudden and you go out and make substantive change of the social aspect of it, we don't talk about it too much because we don't see it is also pretty important.

and sometimes decisions are made in social settings, to be quite frank about it. the trust factor, patting on the back, smiling, you saw that a lot with president trump and kim jong-un, we can't be dismissive of that. some people are. those are important points in this culture we're dealing with. we bring a different culture ourselves, more pragmatic, we want something done yesterday, we want to see action, have energy around all of that. so those two cultures will come together. i know that secretary pompeo is very clear-eyed what he needs north korea to step up to. if he believes they're not really stepping up, he will tell that to the president. then they will go to plan b. melissa: general jack keane, always wonderful to have you on.

>> wonderful talking with you, melissa. >> have you ever had to shake hands and smile with somebody you despise and somebody you thought was a monster? melissa: wow. when you add the last month -- david: i have to do it with fidel castro once. sometimes you have to do it with these guys. it makes you feel awful. you have to take a shower. i praise pompeo the work he is doing. could save us all. wildfires raging out west. time is running out for homeowners in the path of the flames. how emergency officials are working to keep these homes safe. that is coming next. with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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my visitors should be the ones i want to see. melissa: wildfires continue to menace residents across the western u.s. with the first fatality being reported in northern california. fox news's alicia acuna is in the l.a. bureau with all of the details. alicia. >> hi, melissa. this is a fire that popped up within the last 24 hours.

officials confirmed to fox, one person has died. we're awaiting details how that happened. approximately 8,000-acres had burned and many homes, according to crews. it is burning right along the oregon-california state line. for a while it shut down parts of interstate 5 which is the main north/south route along the west coast. there are red flag warnings. they are expected to remain for the rest of the day. california governor jerry brown declared a state of emergency. this is one of 60 significant fires burning in the western part of the country right now. 105,000-acres burned so far. 200 miles south and west of denver, you talk about a fast-moving fire, officials say when this one started, it was burning 16 acres a minute. it is third largest in colorado state history. it has destroyed upwards of 250 homes. officials said they did get some rain which helped with containment but it also prompted a flash flood watch.

colorado governor john hickenlooper is touring fires including the fire near aspen. authorities believe it was ignited by a couple of people at shooting range using tracer bullets. hickenlooper says colorado is using most resources in its history. a growing problem with the fires, folks flying drones over them. colorado senator cory gardner addresses that today. >> if a moron wants to take a drone above a firefighting operation they need to wit quit it. we need to get the word out people should knock it off and let firefighters do their job. reporter: melissa, it is so dangerous, when the drones are up there, forces planes carrying retardant and drop the retardant and land, stop fighting the fire. melissa: that's terrible. thank you for the update. david: apocalyptic. looked like the end of the world there. not backing down, trade battle between u.s. and china, both sides are prepared to stay in it

for the long haul. does anyone really win in one of these situations? forbes chairman steve forbes is here next. and now for the rings. (♪) i'm a four-year-old ring bearer with a bad habit of swallowing stuff. still won't eat my broccoli, though. and if you don't have the right overage, you could be paying for that pricey love band yourself. so get an allstate agent, and be better protected from mayhem. like me. can a ring bearer get a snack around here?

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♪ david: well, may not be a trade war. as we've been saying it is a hell of a skirmish. china responding to $34 billion in u.s. tariffs with new tariffs of their own. president trump remaining steadfast these measures can force china to play by the global trade rules that they have been violating ever since they joined the world trade organization in 2001. steve forbes, chairman of forbes joins us. when china was let in the wto,

in 2001, they agreed to play by the rules but they haven't. you can't have free market exchange if you don't have rule of law. they're not playing by the rules. what should be done? >> that is the whole point of the post-world war ii period. the policies in the 1930s which ended up hurting everyone, they realize you have to have rules of the road. you have to have mechanisms to deal with that dispute. david: but they thumb nair nose at all mechanisms. >> why the response should not be tariffs, sales taxes on american consumers and american businesses, everyone gets hurt by the sales taxes take them to the wto at the same time make a deal with our neighbors, allies in europe to go to china, here are the abuses. we'll target certain specific companies and maybe industries. if you continue with these practices you have the whole world, not just the u.s. versus china, it is whole world. david: forgive me for being

somewhat skeptical about the power of the wto -- >> but you combine it with the wto. go through the wto, but you have allies in europe and china. go to china this, company, this bank, you take one of major chinese state-owned banks, threaten to cut them off the west. david: steve, a little like north korea. we've been relying on our allies in the u.n. and all these diplomats for years to get them to cut back on nukes, it hasn't worked. i'm concerned that reliance on these international organizations and europeans would provide the same kind of results with china, that is nothing? >> the difference between, well, just a little thing on north korea. we didn't keep the sanctions on for very long in the past. we kept giving them up even though we had 20 years of failure. with the wto it has been fairly effective. we win 86% of the cases we take there. that gives us authority to take extra special measures, not just the u.s. acting on its own. if you act in concert with europeans who hate the trade

abuses, latins hate the trade abuses, that has impact. david: by the way, larry kudlow, who is a free trader, he is also bought into the president's fair trade talk as well, but he has said that. he has said it's very important for us. mnuchin said the same thing. get together with others, so that we can, as a world, face what china's been doing. they're lying. they're stealing. they're cheating. >> it hasn't been done before. that's the thing. during the obama administration, wing and nod. bush administration obviously had other things on the table after 9/11. but, if you make it a priority, as president did with iran, pulling out of the iran deal changed complex in the middle east. david: what about, we talked about this before, the strategy that he has to make a deal? you start with a really extreme position. you pull back get the deal done? in fact some of the things he is saying pulling out wto, congress

is not going to do that? >> you don't have to deal with the wto. what you propose with the wto, increase the enforcement teeth. start that process. meantime, picking certain companies, banks, you can make a real difference without punishing american businesses an consumers with sales taxes. david: steve forbes, great stuff. thanks for being here. have a good weekend. >> you too. melissa: brewing in the atlantic, the first hurricane of the season gaining steam. we'll tell you where it is headed next. ♪

melissa: hurricane beryl is brew in the atlantic. the first hurricane of the season, making its way toward the caribbean islands with maximum sustained winds of 80 miles an hour. david: that ain't a lot. it's tiny in size. but the category 1 hurricane is intensifying and expected to reach land by the end of the weekend. well, it's a natural phenomenon

ma. you live in the east you've got to learn to expect these things. like fires in california. melissa: the map looks cool but it's not cool when it gets here you. david: have a good weekend. melissa: absolutely. that duds it fo does it for us. president trump wrote the art of the deal. he's committed to making better deals. he's going to deliver better deals. and right now he's called the bluff of other countries that have been abusing our workers for a long time. but he wants better deals. as you're worried about the long run stretch, you should understand the long run goal is extremely worthy. >>.>> well the trade war is on. the u.s. and china implementing $34 billion in tariffs and it looks like that may just be the start of it. steve hilton know as thing or two about international trade. he's here with his take for calls to abolish i.c.e. the white house now launching a