if that is true this will continue. liz: the economy and data look good. i believe your theory is pretty spot on. good to see you, alan. thank you so much. [closing bell rings] liz: stocks down across the board. nasdaq snap as five-day win streak. connell: on this day a new round of tariffs kicking in. wall street taking notice with trade concerns pressuring the dow as they normally do when they're in the news, down 75, 76 points at the close. the s&p 500 is in the red, not down as much percentagewise. the nasdaq is down in of itself because it did have a five-day winning streak. up for a lot of the day. i'm connell mcshane. filling in for david asman. melissa: i'm melissa francis. this is "after the bell." here is what we're covering in this very busy hour ahead. the war of words heating up between the president and his attorney general jeff sessions firing back after president

trump railed against him in a fox news interview. amid all of this, both men attending a meeting together at the white house this afternoon. we'll take you there live. meanwhile tensions between the u.s. and china are escalating as billions of dollars worth of tariffs are kicking in today. what this means for major american industries and your wallet. hawaii bracing for impact as a category 4 hurricane barrels down on the big island. the president declaring a state of emergency. we're live on the ground in maui. connell: look at that radar. back to the markets first with the new round of tariffs hits stocks. the dow gets dragged down by sort of the usual suspects with this type of story. caterpillar, boeing, among them, along with goldman sachs. nicole petallides on floor of the exchange for us. hey, nicole. >> connell, melissa, you saw a picked bag, 50/50 action on dow jones industrial average. another round on $50 billion of goods. that weighed on some sensitive

stocks. we saw some companies talking about tariffs. hormel, sanderson foods just to say a few. ceos are concerned about that. as far as the dow finishes down 76 points, traders keeping a keen eye on u.s. dollar, the dxy did gain. there is something, that they're watching closely because that could really ruin, disrupt the flow we've seen on the bull market, global economy. they're keeping a keen eye on jackson hole tomorrow. we'll hear from fed head jay powell. those are things front and center. looking at some names pressured on the dow. boeing, caterpillar, 3m. these are the industrials. these are most involved in the trade wars, you can see caterpillar for example, down 2%. also, let's take a look at tesla, as our own charlie gasparino, breaking here on fox business, we told you yesterday that morgan stanley stepped out and stopped their coverage of tesla. well this is why. elon musk has retained morgan stanley as his advisor for the tesla privatization

attempt that we all heard about back on august 7th when he said he was taking the company private and funding was secured. so that is who he is is now hired as his advisor. tesla down a buck 54. we'll look at l brands. this is parent of victoria secrt and bed bath bodyworks. analysts hitting it hard, structure is not quite set. bed bath off and big laggard on the s&p 500. ad -- advanced micro got a late-day pop. connell: thank you, nicole petallides. melissa. melissa: china is responding with new tariffs of their own as president trump is attacking attorney general jeff session is jet again. hillary vaughn live at the

white house. break this down for us. reporter: some senate republicans say attorney general jeff sessions days at doj are numbered. senator lindsey graham says he doesn't think president has confidence for sessions. it may be a time for new face at the department of justice after the midterms that didn't stop the attorney general from showing his face here at the white house this afternoon in the middle of a public feud with the president, because trump said this, this morning. >> the dems are very strong in the justice department. i put in an attorney general that never took control of the justice department, jeff sessions. never took control of the justice department. and it is sort of an incredible thing. reporter: sessions shot right back with a bold statement directed at the president's comments saying quote, i took control of the department of justice the day i was sworn in. while i am attorney general the actions of the department of justice will not be improperly influenced by political considerations. the doj tells fox news they

intentionally released this statement right before sessions arrived at the white house because it would look weird for sessions to stay silent of the president saying his attorney general should have never recused himself from the russian collusion investigation and that sessions was a witness that there was no collusion during the campaign. the president also saying today, in a roundtable meeting with lawmakers china's trade abuses should be getting more attention, not russia. >> not enough focus has been put on china and that's been for a long time and we want to have have a -- big focus is on russia. not enough focus on china. there is now a 25% tax on that coming in. economically that helps us. this is different. that already helps. people say it is already having a big effect. we're already collecting that money. it is a lot of money. much of it is being collected.

much of it starts in a week. a tremendous amount of money coming into the coffers of the united states, which nobody has ever seen that before. reporter: the chinese delegation meeting with officials from the treasury department from washington. senior administration officials say we shouldn't expect a deal just yet. until china addresses specific concerns they laid out, they say it wouldn't be a good deal. melissa. melissa: hillary, thank you. connell: let's talk about this some more with our panel. we have keith fitz-gerald today, money map press chief investment strategist. heather zumarriaga, vision four vice president and analyst. heather, the president can make an argument the tariffs we're checking on can help us. right? you heard comments from the white house today. we'll hear from companies later this hour who would argue the opposite. numbers are adding up a little bit here. on days like this the market seem to take notice of it?

what are you thinking. >> biggest concern is rising interest rates or inflation. when you look back at this year, when the markets fell off usually due to inflation fears or higher interest rates. when the aluminum and steel tariffs were implemented march 23rd that marked a bottom for these markets. yes it's a worry or concern but i think a bigger concern for the markets will be rising interest rates. connell: interesting discussion. keith, where do you fall on that? the fed which we'll talk about in a few minutes is a big theme of the week with the jackson hole conference going on here. is it the fed or china, which one? >> i think i'm in agreement. i think the fed is a critical issue. however i think the more immediate concern for me is certainly china. here's why. china is a nation that literally does not understand, the net result they're digging their heels in at a time where they

can least afford to do it. their markets sold off radically. i think people are questioning that inside of china. i think somebody is going to break here. i think it is going to be china first. they're going to blink. until then the uncertainty is what is driving trade today. why you're seeing boeing drop off and caterpillar take a hit. traders are trying to figure out not necessarily financial implications but uncertainty associated with those things. melissa: moving on to another major story, the president is facing intense criticism over two former associates michael cohen and paul manafort. he is standing strong, telling america, the potential consequence if the democrats attempt to impeach him. take a listen to this. >> i don't know how you can impeach somebody who has done a great job. i'll tell you what, if i ever got impeached i think the market would crash. i think everybody would be very poor because without this thinking, you would see, you would see numbers that you wouldn't believe. melissa: heather what do you think about that? >> i have to agree if president

trump is impeached and if democrats regain house majority i think the markets will sell off. the reason why is because democrats historically have been in favor of higher taxes. so you look at reversing the tax policies and deregulation that this president put in place. that is it negative for the markets as corporate taxes rise, that eats into profits and makes us less competitive on a global scale. and as we increase regulations, that is going to really hurt small business sentiment. both are negative for the market. melissa: keith, i mean i guess they would be selling off on vice, now president pence. seems like he would pursue a lot of the same policies probably. i guess you're banking on a lot of things reversing, you know in 2020. i don't know, i do think it would be bad for the markets i agree with heather. they don't like any -- >> a crash. melissa: i don't know about a crash. they don't like that kind of uncertainty what do you think?

>> melissa i'm with you, trump may be a lot of things to a lot of people, i will not wade into that, but what he is is master building the brand and i think he is much as any other person out there is uniquely responsible for a lot of the market sentiment right now. that causes me a problem if he goes for any reason. >> that's the point. not from a fundamental perspective but from a psychological one at least that would not be a positive for investors or the markets. melissa: absolutely, guys. thank you. connell: let's move on to talk about the fed a few minutes. today the target might be jeff sessions as hillary was reporting but in the past jay powell has taken shots from the fed chairman. the chairman kicking off the first jackson hole summit out in wyoming. he will be speaking at jackson hole tomorrow. edward lawrence is there for us. what did we learn today, edward? >> one of the things we talk about is the economy. their plan going forward, or at least hints to their plan going forward and kansas city federal

reserve president esther george says she sees no reason to change the plan of gradual rate hikes going forward. she is voting member of the federal open market committee this year. she will watch the trade dispute to see if it affects numbers but she only sees growth. >> my forecast for the third quarter, i don't know where the numbers come out but we may see the range of 3% as opposed to my last forecast looking at the 2% range port for the that comes with an asterisk, because she doesn't know and see what other countries will do to step up retaliation tariffs against our companies. >> i do hear from some of our businesses in the region that say i'm going to pause on some projects until i i see. others will tell you this hasn't affected me or i'm passing through higher costs as a result of that. you're getting varying reactions. that makes it difficult to

precisely say this means to the economy going forward. reporter: we may hear more of from speech of federal reserve chairman jerome powell. we will lay out he sees the economy going forward as we get towards or at towards that neutral federal funds rate. connell? connell: chairman powell tomorrow. edward lawrence, thanks. melissa: obama care versus republican tax cuts which one is more popular among americans? surprising results of a brand new fox poll coming up. connell: then there is hawaii, bracing for the strongest hurricane in decades. we're looking at how it looks from space. millions of hawaiians are ordered to evacuate or healther in place. we'll track the storm from the weather center. we'll bring you a live update from maui. melissa: the clock could be ticking for jeff sessions as the attorney general following new comments from the president. top republican lawmakers are weighing in on all of it, when and if he might be removed from office. chair of the house oversight committee jason chaffetz is here

next. >> when everybody see what is going on in the justice department, i put justice with quotes, it is a very sad day. jeff sessions recused himself, which he shouldn't have done or he should have told me. ♪ you wouldn't accept an incomplete job

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how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. >> i put in an attorney general that never took control of the justice department, jeff sessions. jeff sessions recused himself which he shouldn't have done or he should have told me. even my enemies say that jeff sessions should have told you that he was going to recuse himself. then you wouldn't have put him in. he took the job. then he said i'm going to recuse myself. i said, what kind of a man is this? melissa: president trump slamming attorney general jeff sessions for recusing himself in

the russia probe and failing to lead the doj. sessions firing back, quote, i took control of the department of justice the day i was sworn in. while i am attorney general the actions of the department of justice will not be improperly influenced by political considerations. here now is jason chaffetz, former house oversight committee chair and a fox news contributor. i know you've been really critical of jeff sessions in the past. >> yes. melissa: i actually think that pushback is what president trump is after. he doesn't like wimpy people. >> it was a nice comment but coming way too late. i think he is one of the most ineffective attorney generals we've ever had in this nation. donald trump is right. he should have told the president before he took that job, that he would have to recuse himself. a lot of legal analysts said he should have never done that. it was counterintelligence operation that was going on, not a criminal investigation, so you have nothing to recuse yourself from. he has not pursued a number of prosecutions that certainly members of congress, myself,

wanted to see him do. melissa: like what? >> bryan pagliano, he refused to appear before congress twice, even though issued a subpoena. he still wouldn't prosecute that. he told me eyeball to eyeball he would not do it because it was too close to hillary clinton that is the type of political consideration i her him in person, right face-to-face, that he said he was making. what he is saying there, i don't believe him. i really don't believe him. melissa: why do we continue down this path? he is getting a ton of heat. jeff sessions is is not willing to step aside. the president hasn't fired him i guess because, what reason do you think he hasn't done it? >> i think because of the mueller probe. i think the president has been very disciplineed just saying arms length. he is the constitutional officer that is supposed to be running the department of justice. he has great latitude to do so as the president. he is backed by the constitution. melissa: do you think that is why he hasn't fired him? >> i think the moment the

mueller probe is done, jeff sessions will be booted out, on his way back to alabama. melissa: we haven't noticed the president is terribly disciplined in the past like twitter other things. seems like he goes with his gut. what you're saying make sense but hard to attribute to that reason? >> when he is dealing with world leaders, dealing with situations with the department of justice i think he has been very disciplined. he has been calling out the attorney general, i heard one story, i don't know if it was true, but i heard it from somebody in the room, they were at a cabinet meeting going around the table, the president was lauding compliments to each member of the cabinet and skipped over jeff sessions. that should be a signal to him he is not happy with how the attorney general -- i don't think congress is happy how the attorney general is acting. can't seem to get documents duly owed the congress. there is all kind of conflicts. melissa: a lot of pressure. >> he is sitting there. he is there in name only. name a big case where he is really involved? he gets involved in some

immigration stuff. but issues of the day, fbi is in chaos. most of the senior leadership is gone. it either had to be fired or they have been reassigned or been dismissed or they have quit. they're in chaos right now. the attorney general is nowhere. melissa: there is a pattern with the president, i think you tell me if i'm going wrong here, where he tried to reward the people who supported him early on. >> yes. melissa: he thinks he is trying to be loyal. you supported me when no one thought i would get elected. you were not one of these johnny-come-latelies. but those people end upbeating him in the end. i think the people who supported him every were kind of desperate on their own. they were in a position where, you know, chris christie or, like some of these people that came along, when he rewards them, it ends upbeating him because maybe they weren't kind of the most -- >> it was interesting, during the campaign donald trump was not seeking the endorsement of the washington establishment. but there came a point, it was a

pivotal part in the primary, jeff sessions stepped up and rallied and supported donald trump when he needed it. i don't think the president really interviewed anybody else for the attorney general's position except jeff sessions but it ends up that not only did he mislead him, not telling him he was going to recuse himself is but he has been terribly ineffective in anything he has been done. melissa: another thing, if you look how law enforcement works, whether district attorney or whatever in new york where president trump comes from, we're used to this attack dog that is sort of there at the side of the governor, whoever the leader is, mayor, that sort of thing and i think that the president was envisioning something along those lines. even like you have a bobby kennedy, you have somebody who is your wing man, who is your attack dog. it hasn't worked out like that. is it fair of him to want something like that if that is what he is after? >> so i wrote a book, called the "the deep state" coming out, giving a little plug, but i

recount a situation where we talk about this very thing. that is exactly what i think he was looking for in jeff sessions but it is not what he is getting from jeff sessions. melissa: real quick, your book is terrific. people say there is no deep state. you were someone there, experienced it first-hand. you give actual examples. if you want ammunition who tells you there is no deep state, that is something trump is making up. buy the book. you have all the details. >> thank you. we spent a lot of time putting together. there are parts in there about jeff sessions he is not going to like. melissa: that is a good tease. jason chaffetz. thank you. connell: quite a tease, melissa. turning to space fight, the vice president of the united states laying out plans today to send humans back to the moon and maybe beyond. we'll talk about that as well. secretary of state mike pompeo heading back to north korea. what can we expect from his trip? that's next. >> using diplomacy to resolve the north korean security threat once and for all remains one of president trump's greatest priorities.

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>> other nations seek to steal, copy, or control american intellectual property. we have very, very little safeguards up. we had in many cases i would say, marco, no safeguards and now we have probably the best there is in the world. i think not enough focus was put on china and that's been for a long time. and we want to have a -- big focus is on russia. not enough focus on china and other countries frankly. not just russia and china but many countries we have to watch and probably individuals as well. connell: president trump earlier at the white house talking about among other things, administration response to the theft of intellectual property. as trade talks with china are underway this week. our next guest has been warning about china's i.p. theft for years and years.

gordon chang, the author of, "the coming collapse of china." always good to see you here in new york, gordon. the president is talking about this to marco rubio, john cornyn and others in the white house. any sign we make progress on this, the inchoo niece will change their ways? >> this is very difficult. intellectual property theft is at the core of the chinese system. it is more than that just that. you have a lot of stealing, cheating, lying baked into chinese society, has been for centuries. we'll try to change this of course, and we actually have to because innovation is at the core of our economy. if we don't commercialize innovation we don't have much of an economy. connell: for years american companies are going in there, let's be honest, they have a billion people, 1.6 billion people in china, that is a lot of business opportunity. they made the tradeoff, because they have to. they have kind of known this is going on, had no other options. i wonder how we do change it. is tariffs the answer in your

view? >> if we don't have tariffs, the question is what? connell: exactly. that is the question. >> a lot of people don't like terrorists. they make complaints bit, but the point is you have got to do something, you have to impose a cost on the chinese. if you don't like tariffs the only really effective alternative is total import bans on chinese products which is far more drastic. we may very well get there, connell -- connell: really? >> a number of people are talking about this. there is a long progression of things we're doing. we first started to talk with the chinese. then we had agreements. the chinese didn't honor them. so president trump you puts on tariffs. the next progression which is something more stringent. but at some point we have to do this, this is core to our economy right now. connell: now one of the areas that always works into this conversation is north korea because, the president kind of had said he held back on china a little bit, hoping he would get their help with north korea. not sure how well that worked

out. want to ask you about that in a moment. we learned that secretary of state mike pompeo is going back to north korea next week. he will not meet however, we're told with chairman kim. what can we expect out of that visit and how do you think the president played all this, north korea and china? >> i'm not expecting very much from the visit. kim jong-un looks at his relations with the president of president trump. president trump expected to meet with kim, kim didn't see him. we shouldn't be surprised, look i saw the president -- connell: top level guy now. >> seeing pompeo is sort of a step down. the problem is, that that meeting in early july went very poorly, as bad as it could have done. right now the problem is you have china, russia, even south korea are busting sanctions. connell: so is the president's strategy here, using china, trying to leverage the north korea situation backfire in your view? >> it didn't backfire. it is something we had to try because everyone expected it but

it hasn't worked and i'm glad president trump started to change his posture but we need to put a lot more pressure on the chinese because in the last several months we've seen them relax border inspections. that means a lot more goods are getting into north korea that shouldn't be there. we have chinese banks continuing to launder money for the north koreans. this is unsustainable for us. connell: i think 50 billion in tariffs on each side with more to come. we'll see how it goes from here on out. always good to see you, gordon. melissa. melissa: shares of gap sinking after hours despite a beat on second-quarter earnings and revenue. the company delivering the 7th consecutive quarter of comparable sales growth led by the strength of old navy but citing global same-store sales down 5% for the quarter. connell: taking on tax cuts. why americans feel positive about obamacare than tax reform.

details on that coming up. surprising to people. melissa: hurricane lane bearing down on hawaii, as islanders brace for the first major storm to hit the state in 25 years. the forecast and a live update from maui. that's next. >> we are anxious. we looked at the track this morning and saw that it was coming nearer than we thought. >> even if we dodge it, there will be a lot of rain, a lot of tronc wind. i'm expecting, fearing damage for my house. ♪

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connell: while these are incredible images of potentially a devastating storm from space here, the category 4 hurricane headed for islands of hawaii, your lane lane bringing heavy rain to. rick reichmuth is in the weather center. >> foot of rain on the eastern side of the island with the storm. the amount of concern the amount of time the storm will interacting with hawaii. that is not just making kind of a beeline straight through it, it is moving to the start of the big island, getting the rain. moving to the north. still getting rain. rain spreading out across much of the islands at this point. it will pull off towards the north eventually make a move off toward the west. that is the official track of it. most of our guidance is showing

that. as it moves to the north, it will weaken a little bit, and have closer interaction with maui and oahu. we can't rule out the center moves over one of the islands. best case chance probably doesn't, but continues to bring heavy rain there. the official forecast curves it off towards the west. that process of that turn will also take some additional time. that mean as longer period of the rainfalling across all of the state. the storm splitses here as it makes the westerly turn. does it happen before it gets to the islands? that is what we'll certainly hope for instead going over. as it counters the north, it will encounter wind sheer, air in the upper levels of the atmosphere that rip the storm apart. because of that we think it will have a weakening trend as it moves toward the north. that doesn't mean the rain isn't going to continue to fall. we already have flash flooding across the eastern side of the

big island, the eastern side of maui as well. not yet around oahu, at lease flash flooding going on. take a look at this, additional rainfall, eastern side of the island where heaviest will be. western side of the big island not as much. just quickly, that center right there, that red, that is hurricane force winds. that orange is trop storm force. we'll see tropical storm force winds across all of the islands by i the time this gets done. connell: we hope for the early turn. rick, thank you very much. melissa: as hurricane lane gains ground, president trump offering assistance announcing on twitter obviously, i have authorized a emergency disaster declaration to provide hawaii with necessary support ahead of hurricane lane. our state is coordinating with the federal authorities. you are in our thoughts. fox news's adam housley is live in hawaii with the latest on how residents are preparing. what is it like there?

reporter: we started getting rain 15 minutes ago. the first rain in some time. this is surreal to be here. we were here for a wedding, same kind of scene, people going for jogs, walking with their kids, playing on the beach, going in the pool, however there is no equipment out here, no place to sit down, no chairs. everything that might fly away with wind has been put away. it is a bit of an odd scene at the same time as people prepare for what is many coulding this way. a bit to my east or right is the big island 35 miles where we're standing right now. that is where the rain has been coming down hard for 14 areas. one area on the east side where helo is located. that is a lot of rain anyway. it comes down heavy and hard. the other island are bracing for that same possibility. everybody watching the forecast. the forecasters continue to tell people to prepare as do authorities in the state of the as you might imagine the stores for the last couple days have been crowded for the most part. from what we tell people are taking this very seriously. no one seems to take it lightly

i should say. everybody has been basically hunkering down and getting everything they might need to taken themselves. when you talk to those in charge they tell you that is a good idea. take a listen. >> we haven't really faced a hurricane of this magnitude in, as far as history i have can remember. it is going to be new experience for everybody, if it maintains its current strength. i'm hoping and praying that it will diminish in strength. >> what is for sure though is that hawaii will be impacted by hurricane lane. the question is how bad. reporter: yeah, how bad will it be melissa. everybody is watching forecasts coming every ten minutes. we're getting some sort of update. it continues to break up there. we'll get some rain here. the question is how much and how will these elands handle it. as you can see, starting to come down here now really for the first time. melissa. melissa: wow, adam. careful. thank you for that reporting.

connell: if we learned anything last few years this country not to take hurricanes lightly which luckily they're not doing. we'll get back to the tariffs we're covering in a moment. a number of businesses bracing for impact of the tariffs. we'll look how two specific industries reacting to the latest moves. jeff flock on the left and gerri willis as well with story telling on the tariff beat. melissa: i love it. ♪ not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges... how mature of them. for drivers with accident forgiveness liberty mutual won't raise their rates because of their first accident. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty ♪

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>> we're getting word from the mexican economic minister there is no deal right now on nafta. we had been hearing reports through the day we might get word there is one. looking right now, they're on a pathway that could last into the weekend and into next week. so still talking, still working but not a deal as of this second. as new tariffs on the $16 billion worth of chinese goods kick in today we're looking in depth how are these tariffs, how are the tariffs and

trade tensions affecting u.s. businesses? we're on the ground with two major american manufacturers. first up is jeff flock. he is talking to auto workers at a ford plant in chicago. jeff? reporter: it could be worse, melissa, in terms of the impact of this tariff. it is actually worse on german automakers than u.s. automakers. that is the ford explorer plant where they made 13,000 ford explorers last year that were sold in china. but that dwarfs the output of german plants here in the u.s. that shipped to the china, now subject to that tariff. take a look. bmw's x5 and x3 made in the plant in south carolina. that is 80, 90,000 vehicles. mercedes makes its gle in alabama. that is another 40,000 vehicles you subject to the tariff. why do you care? too these are german vehicles not american vehicles? because these employ a lot of

american workers. at the plant in south carolina, there is eight thousand, almost 9,000 workers. last year they made 371,000 x series bmws. 107,000 of those went to china. that is about 29%. so if the sales fall off, some of those workers might get laid off. you look at the tale of the tape, bmw taking the heaviest hit, 106,000 of their vehicles made here in the u.s. plants, that is great. employs american workers. go to china, subject to tariff. ford is the biggest hit in terms of u.s. automakers. 45,000 of their vehicles made here, shipped there. you wonder about gm, you say gm, don't they sell more cars in china than they sell in the u.s.? yes they do but, melissa, they also make them in china. only 2000 vehicles or so made here in the u.s. by gm, exported to china. they do all the business they sell in china, made in china. that is probably good way to go.

make it where you sell it, get rid of all the tariffs some day, that would be nice. leveling playing field. melissa: the manufacturers like to operate, especially the last stage assembly in the place where they actually sell it. that is what saves costs. jeff, thank you so much. great reporting. connell: completely different industry now. we're going to boating where a company in florida already feeling the effect of the tariffs as well. gerri willis is in orlando today with that story. hey, gerri. reporter: hey, connell, that's right. check out my 33-foot, 300,000-dollar cruiser. do you like this? fits me like a glove but probably too small for connell, that's for sure. i sat down with duane cook, ceo of company, regal boat in orlando. he told me tariffs are cutting into his business, cutting hard. a big problem for them. here is what is going on. retaliatory tariffs being put in place by the eu, canada, mexico, and yes, china.

and these are big. in europe, 25% retaliatory tariff. that means if regal sells 100,000-dollar boat to somebody in europe, when it hits their shores, it costs $125,000. as you might expect, all of their orders from canada and europe have been canceled. canada has a 10% tariff. so the tariffs mean a lot to this company. there sin creased prices for aluminum and steel. these are fiberglass boats of course. but higher prices, taking a big bite out of this company's business. i want you to hear what duane cook himself had to say about his business. listen. >> what will happen to regal, we've been growing at a fast rate. the economy's good, consumer confidence is good. tax reform, all these things have been good. our growth is going to be leveled off. we probably will not be able to grow at the same rate or maybe not at all. reporter: so, obviously hitting this company hard but also the industry hard. it is a 125 billion-dollar

industry employing tens of thousands of people. that will be, mean a lot to employment. but at the end of the day what we're seeing here, tariffs a big concern here in orlando, at regal boats. and i got to tell you, it is an american-made business. 95% of the boats on the water in the usa, made in in the usa. connell: good story. sometimes you don't think of these things. i'm lucky to get a canoe, gerri. reporter: i have a kayak. i have a kayak. melissa: battling over two signature achievements, obama care or trump tax cuts. which is more popular with voters as we head towards the midterm elections? some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions

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melissa: surprise finding, a new poll reveal americans view obamacare more favorably than the gop tax cut? what will it mean for the midterm elections. here is hadley heath manning, independent women's forum policy director. what do you make of this? first i have to say i discount polls now, and people hate it when i say this, people who pay for polls, but after the last election, you have to take every poll with a grain of salt. given that, what do you make of this? >> we've known for a long time obamacare is divisive issue. the percentage of people who say they favor it, even support it in this poll is 51%. that is not something to write home about, however the gop tax plan is 40% approval that should be concerning for republicans. it should be reminder they need to communicate well what the law does, state of the economy. reminding people, objective our economy is in pretty good shape. on the other hand, obamacare is 8-year-old law now, it is

enjoying status quo advantage, people perceive some benefits from the law, especially people newly-enrolled in medicaid and generous taxpayer-funded subsidies to lower their cost of insurance. they may not see the cost of insurance has been skyrocketing. melissa: other thing struck me unfavorables are really high. if you look at people who view the tax law unfavorably, 41%, more than are favor ann, and unfavorable on obamacare, 44%. sort of like, when you ask people, they hate, they're quick to say they hate stuff too. >> that's right. why i said it has been divisive. there are people who, just as people who perceive those benefits to be helping them, there are people on the other hand, as a direct result of the affordable care act seen their premiums go up. those are people who don't get subsidies that i mentioned. or there are people who had insurance plans canceled all together after they were

promised to keep the plans they liked. those people effectively found new means to take care of themselves now. they joined health care sharing ministries. they may have direct primary care arrangements with doctors. they have never been able to scrap together what they had before the affordable care act, which is to say an affordable insurance plan. melissa: yeah. i also heard someone else aing today, which i thought was pretty smart, when you look at these polls, doesn't necessarily translate to turnout. it doesn't tell you a lot about how these people feel. does that make them feel a certain way about a candidate? and does that mean they're actually going to go out and vote? if you try and translate this to the midterms, what do you think this tells us about the midterms, if anything? >> well, of course in addition to favorability or unfavorability on the individual issues, we have to think about how voters are weighting those issues. obamacare, although was a big subject of discussion in 2017, hasn't been at the center of the debate in 2018. democrats are moving to the left and proposing medicare for all.

i think that will be more of an issue on the health care front. as you mentioned likelihood of voters to turnout, that is something pollsters don't start asking until later in september. we're still a lot of us on summer time, until the kids get back in school and buckling down to paying attention to current events, a lot of people aren't sure they will vote or how. melissa: what do you think will be the driving term of the midterm if you have to pick a issue? >> the economy is wrapped into one. tax plan, the tariffs, the trade deals. i think that will be the number one issue, however from this poll we think people have partisan lens which they you view the economy. republicans say they think things are going excellent or very good. people who are independent or democrats don't see that as much, so we're going to have all-out debate over the statistics and indicators around what they really mean in people's pocketbooks. melissa: hadley heath manning, thank you for your time.

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america will lead mankind to the stars once again. it is now the official policy of the united states of america that we will return to the moon, put americans on mars, and once again explore the farthest depths of outer space. melissa: vice president mike pence pledging a return to american dominance in space at the johnson space center in houston earlier today. connell: would you go to mars?

melissa: no. i hear there isn't a return trip. i'm not super excited about that. my son went to speed camp last week and loved it. very cool. yeah. connell: that's it. melissa: "evening edit" starts right now. it's part of my whole life. my whole life has been this way. nobody said geez, this is controversy. i don't know, i always had controversy in my life and i have always succeeded. i have always won. i have always won. it was controversial when i ran and i won. now the country's doing better than it's ever done. we have the best economy we have ever had in the history of our country, and more jobs today, literally today, we have more jobs, more people working in the united states, than ever before in the history of our country. black unemployment, asian unemployment, women unemployment, hispanic unemployment, historic lows.