seconds. great to see you. [closing bell rings] todd horowitz. on the tweet heard 'round the world. sell in may is true. the worst month of 2019 so far. have a good weekend if you can. that will do it for the "claman countdown." connell: president trump threatening tariffs on new imports from mexico if mexico does not take sufficient action stopping illegal immigrant from the u.s. border. >> it is just a tweet. it is just a tweet. connell: tell that to wall street. reaction in the markets, down 350 plus points on the dow. that is just 1.4% for the average. we finish down in the red for six straight weeks. longest streak we've had in eight years. just a tweet. s&p 500 and nasdaq ending in negative territory as well. s&p down 1.3%. nasdaq is 1 1/2%. we'll put it all together. good to have you with us on a friday. i'm connell mcshane.

melissa: this is of the -- "after the bell." blake burman standing by at the white house. kristina partsinevelos is on the floor of the new york stock exchange. blake, i will start with you first. reporter: melissa, looking down from my computer. we got a statement from nancy pelosi. we're getting her first reaction to the president's tariff decisions. she calls what the president did as reckless. the threat is not rooted in wise trade policy but more to do with bad immigration policy on his part that from nancy pelosi. we heard from president trump today as well, he sent out a host of tweets which he defends his move two ways. he says one the surge at the southern border relates to illegal immigrants needs to stop. he says there is a flow of drugs coming across the southern border, that needs to be curtailed as well. the acting head of the department of homeland security is kevin mack call lien. last night when he spoke with reporters he outlined how mexico could avoid tariffs going forward. he break it down three different

ways. mexico need to shore up its own southern border. also needs to target criminal organizations and needs to work with the u.s. on asylum. but the white house is not laying out any specifics or targets or goals that mexico needs to hit to avoid these tariffs. here was press secretary sarah sanders earlier today. >> one of the biggest things they can do is repatriation of thousands of people coming from central america. they can return them back home. that would be a very big first step. certainly we made some progress on a aisle lull. we need to do a lot more on that front. reporter: dissension is starting to pronormally is pretty friendly territory. joni ernst, chuck grassley, pat toomey came out against the tariffs. grassley and ernst say it could threaten their support for the usmca trade deal. representatives for the u.s. chamber of commerce, a

pro-business groups say they are considering taking legal action against the white house. that could potentially be coming here within the upcoming days. the white house has responded to that this afternoon saying the following in a statement, quote, the president is taking action within his authority to protect our national security. industries should be in communication with their counterparts in mexico to encourage the mexican government to work with the administration and stay off dangerous crisis at our southern border as quickly as possible. by the way i will end here. we found out that president trump spoke today with justin trudeau, the canadian prime minister. of course the usmca falls into all of this. also mexico's foreign minister spoken as well with jared kushner and mike pompeo. a lot going on. send it back to you. melissa: those legislators, furious about what is going on they could legislate to take care of the problem. reporter: they are calling on congress to take care of

tariffs. they would have to do that. melissa: blake, thank you. the dow closing off 7% marking first down month of the year. kristina partsinevelos on the floor of new york stock exchange. >> not only the dow but have 500. all three indices have the lowest close since 2019. trade fears, the fact that you have yields that are extremely low, and this continuous uncertainty for markets. look across the board there, down almost 7% for all of these indices. let's move on to some sectors hit the hardest. i want to focus on the auto sector. especially talking about the 5% tariff on june 10th could be put in effect from products from mexico. we're seeing a huge hit with general motors, ford, fiat because of their supply chains in mexico. you could see the average auto price year-over-year. increased 4% compared to last year. you could expect to see that

increased even more, if the tariffs go into effect. talk about oil. oil settling much lower for the month. a lot has to do with slow down fears, trade uncertainty, investment. oil is down about $3.30, the lowest settle we've seen since february. this month down about, there you go, for one month down about 6%. that is the largest percentage decline since november 2018. so i guess i could say the old adage is true, sell in may, go away. a lot of traders are here doing that to cover some of their positions. >> kristina, thank you. connell: 16% drop this month for oil, wow. not just mexico. the tariff dispute is in the headlines, we've been talking about it, u.s. china trade war is about to enter a new phase. edward lawrence live at white house with more. edward. reporter: it is saturday in

china, new tariffs, upping of tariffs from the chinese. u.s. importing $16 billion of goods is was now 5%, now 10, 20, 25% tariff there. china escalating the trait dispute. they're creating what amounts to a blacklist for companies. these are companies that they are concerned about growing forward. it says it will include companies, organizations or individuals who china deems as impeding their legitimate economic rights. china will use this list like entity list that the department of commerce has. the u.s. placed huawei on that entity list which banned u.s. technology or huawei from using u.s. technology or component to roll out the 5g network. vice president mike pence in an exclusive interview with "mornings with maria," says we must follow through with china. >> it is structural issues. intellectual property rights, forced technology transfers, essentially the respect for

private property at this point china has not reflected in their practices and we need to see reforms in that regard. reporter: china pushing back with most of their government officials that the u.s. needs to trust them that they will protect intellectual property. however u.s. trade representative robert lighthizer testified in the past china has broken pretty much every agreement they have ever made with the u.s. back to you, connell. connell: edward, thank you. melissa: here is react jack hough baron's senior editor and carol roth, future planning file system, former investment bank. jack, we have to take them at their word, and trust them even though they broke every agreement in the past. what do you think? >> let's separate what is going on in china. china has business model for years now. they invite in multinational companies. they steal the company's technology. they get behind a hometown champion. give all kinds of government support, send that champion out

into the world to take market share, dominate markets. that comes at a time when there are all the transformative technologies out there. move to 5g, things like that. people can disagree about the china trade war but i think a lot of people are looking for tougher stance against china and this intellectual property theft. melissa: yeah. carol, i'm surprised to see the market react so much if it is indeed what it is to the tweet on mexico. we were talking about mueller. the president made announcement, saying i have something huge on the border. he threw out the thing about the tariffs so that everybody would say, why are we, why he is talking about this now? oh, because 1000 people crossed the border on wednesday alone. he is trying to focus the conversation, our attention down there. would you really take this to the bank so to speak in the market when so far it is tweet policy? >> i know but the markets don't like uncertainty. they certainly don't like rule by chaos. like jack said we understand

perhaps tariffs when it comes to china. this makes absolutely no sense when it comes to mexico. you will punish them economically, the reason why people pass through mexico to come to the u.s. is for economic opportunity. one of those things you can't get your head wrapped around from the strategic standpoint. melissa: but you're acting like it really is going to happen. >> who knows? melissa: because the very last time this happened he said oh look, they're behaving better already. he didn't have to, he wants everybody to get hysterical and focus on the problem because congress isn't fixing this. you guys are gullible i can't take it. >> it might be twitter policy but came with pretty specific set of numbers. melissa: so i did the last one. >> do not miss carol's point because they're poorer than we are. if we wage -- melissa: they're not coming from mexico. >> we're building a wall of stupidity. melissa: talking about a wall of stupidity, people coming over the border are not mexicans. you know that. >> some are mexicans. some are central america,

they're coming here for economic opportunity. >> exactly. if there was economic opportunity in mexico they would stop in mexico, they would stop there. melissa: no, they wouldn't because they want the american way of life. i mean all this is to get congress' attention on it. do something, you guys, instead of sitting there complaining. >> i'm not the least bitcoin vinceed the president wants to do something. i think he wants to have this issue come election time. connell: that might be. we'll see. melissa: you guys are gullible. connell: she called you guys gullible. melissa: i did again. connell: talk about bigger picture with the markets with trade war, whether we talk about china or mexico, whoever. in the backdrop of a booming economy overall. we have, good day to do it, with all in the news, end of the month, all the rest. major averages since president trump first started talking about tariffs. which was march 1st of last year. this is the day before. the dow is down only a little bit. less than 1%. the nasdaq and s&p are actually up. jack, i guess the question is,

glass half-full or half empty. if you're writing a story about this, for "barron's," is the story theoretically -- >> as i sometimes do. connell: you know what? it is amazing the headline we're not down more. more is the story. in this economy, these earnings we've seen on corporate side we should be up a lot more, what would you write? >> take the china trade war that is pretty quantifiable. it is not really big subtraction from s&p 500 earnings when it gets down to it. the most powerful force in the financial universe is still low interest rates. we've seen rates move lower as investors flock to safety in 10-year treasury. connell: that is the headline? >> there is no competition under the sun for stocks. that is why the market is not down more. connell: the headline it is not down more as opposed we would really be off to the races. what do you think, carol? >> i think the headline the glass is half insane. hard to figure out what is going on. businesses don't like uncertainty. they want to plan for the

future. obviously president trump has done a lot of good here but he keeps shooting himself in the foot with some of these tweets. even if melissa finds us gullible it will have effect -- connell: i don't think you are, carol. >> i appreciate that, connell. connell: but jack on the other hand? maybe a little bit. i'm probably the most gullible of all you guys. thank you, jack and carol. fun times. melissa: we'll have more on the tariff fallout. why our next guest said tariffs on goods from mexico will be paid by you if they actually happen. the american people that is. connell: gullible guests we're about to have on. meantime details on story we had yesterday. latest threat from inside of your medicine cabinet. why medications from china could be a national security risk. melissa: the outbreak continues. centers for disease control revealing measles cases are reaching historic levels. what you need to know later this

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connell: president trump, you may have heard is threatening to impose new tariffs on mexico if the country doesn't take action limiting number of migrants crossing into the united states. american business groups,

including the chamber of commerce are considering legal action. we're joined by neil braddy, chief policy officer at the chamber. good to see you. what type of legal action are you considering? >> we're exploring all of our options. our number one goal to make sure the tariffs don't go in place on june 10th. we learned about this like everyone else when it was announced last night. since then we've been doing everything we can to convince the administration not to move forward with the tariffs, while simultaneously looking what legal options might be available to businesses an consumers to challenge these tariffs and what congress might be able to do. connell: in the u.s. courts you mean? >> yeah. we're still in the preliminary stages of it. the effort to make sure tax on american businesses an consumers don't go into effect that, we leave no stone unturned. connell: have you spoken to the people at the white house about them today? >> we talked to the folks at the white house day, and? >> we urged them not to proceed

down this path. our view this has tremendous negative impact on the economy and on american families. frankly there are other ways to deal with what is a very real problem that the president and administration are right to be concerned about along the southern border. connell: do you think there are better solutions, if so, any ideas? >> absolutely. there is no single solution to this, but we certainly need republicans, democrats, congressman, administration to work on border security, reforming immigration asylum laws. we have good working relationship with mexico. connell: does mexico need to do more though? >> they have been stepping up their effort. certainly they can do more. we need to help them do it. connell: how do you change the incentives? senator grassley says with remittances, fees there could be looked at. if not tariffs, what i guess is my question? >> first of all the mexican government has every incentive to control the flow of migrants from their southern border

across their country into our country. the frankly we have a good working relationship. the united states with the mexican government. which ought to be leveraging that to do more. we ought to be doing more in the northern triangle countries where the problem is originating from. tariffs won't do anything to solve the problem. connell: finally what is your sense what is really going on here? some in the business community said this is issue, we get it, jack, somebody mentioned earlier. we get what is happening with china. whether you agree or disagree with the policy, you kind of get what the motivation is. in this case, people said, wow, is tariffs, are tariffs going to be the answer every time? will the president turn to tariffs every time? whereas still others, melissa, brought this up, it is negotiating tactic, trying to get attention to the issue. what is your sense what is going on here? >> i don't want to speak to motivations here but there is very big difference between china and very real trade and

economic policies of china, which can be addressed and ought to be addressed and administration deserves credit for taking it on. totally separate issue of my grace and immigration to the southern border. we can't solve every problem with tariffs and threats of tariffs. in fact in doing so all we're doing is undermining our ability to solve the problem at the southern border and undermining our economy. connell: but this is still in the news. we'll hear from you guys next week on the legal issue you think? >> i don't want to put a timeline on it but we'll be doing everything we can between now and june 10th to make sure these tariffs don't go into effect. to make sure consumers are not paying it buying avocados or tequila for the summer margaritas or cars. connell: that is probably the bigger one. good to talk to you, neil bradley. melissa: i'm concerned about the my avocado toast with tequila

chaser. connell: everybody is making the joke about that. that is the real issue. auto industry is the issue. just a tweet. melissa: we'll see. connell: never going to happen. melissa: we'll see. inching towards iowa, residents in the state are getting ready towards lots of visitors, presidential competitors. how the pack is looking in the iowa state. did you hear about this one? a report that the north korea regime executed officials over the failed summit with president trump. what we now know after the break. ♪to or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

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connell: the latest move from the rogue machine, rogue is putting it mildly if this is true. north korea executing several members of their negotiating team in the wake of failed summit between president trump and kim jong-un. that is the report from a south korean newspaper. fox news correspondent benjamin hall is in london with more

detail. reporter: this purge is reminder not only the murderous nature of the north korean regime but what a failure the hanoi summit was to the north koreans and kim jong-un personally. the negotiators went with the intention of getting sanctions relief but left with nothing. the senior envoy who led the working level negotiations at the hanoi summit was apparently executed at a airfield by a firing squad along with four other officials including a translator. apparently they betrayed kim jong-un and spied for the u.s. but the purge went further. kim chol, considered north korea's foreign secretary was apparently sentenced to hard labor in one of the country's numerous labor camps. he was the man sent to hand deliver a letter to president trump and met regularly with secretary of state mike pompeo. it is always hard to verify news out of north korea and this is an confirmed but the regime executed people for political mistakes in the past and the hanoi summit was an embarrassing failure for kim on the world stage.

there remains growing concerns diplomacy which blossomed since 2018 could be reversing. since the hanoi summit ended in failure, north korea tested weapons and boosted its angry rhetoric towards america. it is unclear if there will be a third summit between president trump and kim jong-un, something the white house president trump is open to one if denuclearization is the key talking point but in the meantime there is the g20 summit to be held in japan at the end of the june where president trump will meet with president xi of china and certainly north korea will be high on the agenda there. back to you. connell: benjamin hall in london. melissa. melissa: joining us to react, bruce clinger from the heritage foundation. forker cia deputy chief for korea. do you think this report is accurate? >> we have to wait for more confirmation. as the report points out there have been numerous times similar reports proved to be incorrect. reportedly executed officials

come back to work. even those purged come back after three months in reeducation or hard labor camp. it seems it will continue the impasse between the u.s. and north korea over denuclearization talks. melissa: yeah, first of all, how did this report get out in your opinion? >> well apparently the reporter for the south korean media is a north korean defector who has sources in north korea. people have said he reported reliably in the past and found things that proved later to be true when north korea announced them. it could very well be true but given the times in the past where such reports were incorrect, we still need to be a bit in a wait-and-see mode. melissa: would kim want this to get out there to show he is super tough or whatever it is? >> it could be. there was some reports in north korean media which, official media which didn't say any names but did emphasize that antistate

activities will be dealt with harshly. that could be sort of the precursor to a formnal announcement about the personnel changes. melissa: how does it change between what is going on between the u.s. and north korea? >> well, in a way it doesn't have an effect because north korea was already refusing to both talk with both washington and soul seoul was trying to provide humanitarian assistance. north korea was dismissive, said it was an insult. the he is not able to get working level meet the north. that is typical but with previous envoys. north korea only wants to deal with president trump. as we have the impasse, clock is ticking. kim kim said north korean's patience will end at the end of the year when they will take strong but unspecified measures.

not specific but more north korean rhetoric. melissa: what should president trump do here? react, does it change the calculation at all? >> i don't think he needs to address this. we should implement maximum pressure, despite the claims of maximum pressure there is still many things the u.s. is pulling punches on. melissa: like what? >> even enforcing u.s. law. we saw the president last year said there were 300 north korean entities. these are entities violating u.s. law he is not sanctioning. recently he reversed treasury department sanctioning of two chinese companies violating u.n. resolutions. >> but what about seizing the cargo ship? they were furious about that and that seemed pretty hostile on the president's part? >> that was actually seized by indonesia in april of last year. in june of last year the pus put in the paperwork to have it legally transferred to the u.s. jurisdiction. so it is actually been in work

for a year. that's enforcing u.s. law and u.n. resolution, so we shouldn't turn it back. it is seizure of criminally related activities. that is not something that is negotiable. melissa: bruce, thank you. >> thank you very much. connell: so the crisis in arkansas that we've been covering is actually getting worse if anything. president trump declaring a state of emergency. the water levels continue to rise, reaching historic levels. we're live on the ground for you with a look how residents are dealing dealing with this dangerous situation. melissa: plus parts of florida still recovering after hurricane michael tore through the state seven months ago. officials already preparing for the worst, for the upcoming season. an update from the panhandle next. connell: aiming to become a global pharmacy. why a leading expert says america's dependence on chinese medicine could soon mean higher prices for you at home. she will explain later on in the hour.

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you can see how close the water is creeping up to the house there. this street is lined with beautiful homes and businesses, the water is getting a little too close for comfort. because when you do a pan across this way, we can really show you how waterlogged the region is, melissa. there is nowhere for this stuff to go. more and more water keeps moving in this direction from downstream. so you can guess why some people are on edge, hoping for the best, when it comes to the forecast. now, for context and perspective, on how widespread the flooding is, want you to look at those area pictures. nowhere does it really do it justice than from up above, to show you how widespread we're talking about miles and miles of farmland under water. stretches of busy roads are closed, impassable. the governor of this state essentially saying it could get worse before it is going to get

better. listen. >> we had over 500 homes that have been affected here in arkansas thus far. that is probably a conservative number. but one of the greatest impacts we see is in the farmland that has been flooded, thousands of acres. reporter: back out here live. you see the stick out there in the water? the homeowner tells me that he put that out there on tuesday of this week to kind of get a sense, to gauge how much the water was coming up. he says, since tuesday that it has come up about four, four 1/2 feet or so. so it is a gradual process. and when you're sitting there in your home, or in your business, and you watch it, getting closer, and closer each day, melissa, you can understand why so many people across this whole region are impacted and, on edge right now. back to you. >> casey stegall, thank you for that. connell: up to florida,

particular to the panhandle where local and federal officials are getting everyone to get ready as new hurricane season officially kicks off tomorrow. residents are trying to recover from the damage left behind by hurricane michael. that was seven months ago. fox news's phil keating is in mexico beach, a place that was absolutely decimated by michael. how are things today there, phil? >> connell, mexico beach, seven months since the last time we were here, pretty much look as whole like it did back then, a wasteland. a lot of debris is removed buttons of debris remained. this town ever 1200 people, now has 400 and sure surrounded by all this damage. >> no help. >> they still live in mexico beach, in the fema trailer, surrounded by destruction, a few neighbors, homes like theirs

gone, not beginning to be rebuilt. this is the new life over the past seven months. >> people can get real frustrated very easy, you look around, still seeing debris and nothing going as fast as you would like it. it becomes part of your life, looking at debris. reporter: up the road at tyndall air force base, critical flight training returned five months ago. this is where the eye of the storm made landfall. 325th fighter wing squadron still has not early meantly returned. >> what a hurricane does, blows out windows and roof off building that happened hundreds of times on the installation. reporter: this cool nell is overseeing 3 billion-dollar base rebuild. the base commander says tons of progress has been made, getting to daily. but getting premichael will take years. >> how is tyndall doing? we're getting the mission done, that is our job.

we're doing it with a whole bunch of temporary solutions putting in place. these are not long-term solutions. reporter: up the beach from tyndall is the town of panama city. it was hit very hard as well. it remains in a massive recovery mode. they lost 13% of their population. 30% of the schoolkids never returned because their parents never returned from the evacuation. more than 50% of the apartments in the city still unliveable. connell: so important for us to go back as phil does to the locations. still so much work to do seven months later. phil keating. melissa: presidential candidates attempting to win over iowa citizens. we're live on the ground in today mine with the fight just heating up. uncharted territory in the national spelling bee. the nation watched in amazement. that is all coming next.

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melissa: breaking news. president trump just tweeting quote, i will announce my second term presidential run with first lady melania, vice president mike pence and second lady karen pence on june 18th in orlando, florida, at the 20,000 seat amway center. join us for the, this historic

rally. the rally will be at 8:00 p.m. eastern time. so we know what the announcement is. >> we're now in uncharted territory. connell: uncharted territory as well. how about spelling unprecedented. this is crazy. watched a little bit of this. historic eight-way tie, an eight-way tie at the scripps national spelling bee. a record number of spellers correctly spelled a word in the 20th and final round. they ran out of words to challenge them with, no words left. all eight of them won. they're all cochampions. they were given a full 50,000-dollar cash prize in addition to a scripps up. melissa: how they run out of words? how do they run out of words. connell: i watched five words. i swear to god did not know one of the words. these kids, every single one calmly gets up there, everyone was right. melissa: they had a lot of words in the english language. they weren't prepared. connell: whatever.

melissa: eight win remembers fun. 2020 chase. democrats prepare for record turnout when the first-in-the-nation iowa holds its presidential caucuses in february. some key changes are impacting the way candidates are campaigning. fox news's peter doocy is live in des moines with more. peter, are you running? reporter: i am not running. it is too hot to run outside, jog or run for president, really but there is a big change that was just announced by the dnc. we've known nor months there would be more women than ever on stage in the debate answering questions, we now know there will be more women than ever answering questions. the dnc they will mandate, every network hosting a dnc debate for the presidential cycle has to have at least one female moderator. that is the not the only big change. we're learning caucus night, isn't just going to be one night. it will start a couple days earlier, with virtual option one

official told me which is something like a conference call. >> so i mean that in the past a campaign strategy was to get butts in seats, people to the caucuses, people out on caucus night. now they look strategically to say is there certain percentage of my voting population to virtually caucus? reporter: right now "real clear politics" average of polls in iowa shows three democrats in double digits. biden with a slight lead, bernie sanders, then pete buttigieg. the rest of the pack is bunched behind them but the head of the party in iowa tells me to expect some movement on that leaderboard. >> we are still eight months away. my people will be caucusing. so people are getting a chance to get us there, meet the candidates. i still think it is anyone's game at this point. summer will be a critical time. reporter: of course they do still need physical locations to host the precinct caucuses on that one very fail mouse night

in february. they have 45% of the locations picked out, much bigger than last cycle. melissa: i'm suspicious of the virtual caucusing. thank you, peter. connell: ford o'connell is with us and christie setzer. welcome as always to both of you. a little talk out of iowa. if you didn't hear earlier we talked a little bit about tariffs. a couple senators from iowa who are both republicans are not in favor of the president's latest move. i think one of the big questions about the whole election will be, will farmers who by and large are supporters of the president, will they remain loyal to the president? it seems like a lot of people, they're getting hit in the pocketbook, maybe they won't. it is not that simple. how do you think it will play out, ford? >> trump won iowa by nine points in 2016. if he is going to win re-election in 2020, he will have to win iowa. he is trying to brace any harm

may come to them because of tariffs. he is fighting china, he is absolutely right. this battle with china really helps trump with the industrial midwest and pennsylvania, wisconsin and michigan. the key here is not to lose states like iowa or arizona in this sort of battle. so i think farmers are going to stay with him. they just want to make sure they're made whole. connell: they might, christie, that story i have heard, i was out there couple times twice, heard that exact story from farmers, you guys are getting hit. they would say something, listen something had to be done, we're with the president on china. now mexico might be a different story but do the democrats have an answer on that issue, on trade? can they make a different argument? can joe biden make inroads on that, what do you think? >> sure, of course i think so. take something like the mexico announcement today, president trump has managed to unite democrats and republicans against him. he managed to unite chamber of

commerce, afl-cio against him and probably american people, people who follow politics of all stripes. broadly unpopular. seems as though the only people who in fact favor of this decision, steven miller, mick mulvaney. connell: maybe his base. not a decision yet. just a threat. so there is -- >> that is just a threat, that's true. when you eschew get policy and good politics what favors feel good in the moment, which is something of a donald trump hallmark, you're leaving yourself open to people decided they no longer want to support you. i actually agree with ford, i think many of these, that iowa is pretty demographically safe for trump. it is obviously older. it is white. it is rural. these are all things that are in his favor. connell: ford, a state like pennsylvania or state like michigan with similar arguments, should the president be careful here in terms of not hurting his

biggest strength which you say is the strong economy, right? you need to be careful, because in those states, he might be vulnerable, biden can take advantage? >> he has to be careful. he is talking about very pharaoh margins, pennsylvania, wisconsin, michigan but what i will say here though, essentially if joe biden is the democratic nominee, right now he is the undisputed front-runner. he is weak on china. says they are not on our competitor. he is weak on tpp, weak on nafta. this is bringing to the middle class worker to bring back our jobs. america sold its soul over last 20 years for cheap consumer goods over backs of working americans. that is what he is making the case. connell: we have to go. i wonder whether that china comment will come back to bite him. we have a year to talk about. ford, christie, have a great weekend. >> thank you, connell. melissa: the measles outbreak in the u.s. continues.

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connell: the cdc reporting 971 please les cases in the united states, for the year 2019 so far greatest number reported since back in 1992. now, many of the outbreaks in new york city and in rockland county, new york just north of the city, the cdc is saying "if these outbreaks continue through summer and fall the united states may lose its measles elimination status". melissa: so you heard yesterday fox news reporting on the emerging national security concerns with u.s. reliance on china for prescription drugs. today we are joined by rosemary gibson whose the author of china rx, and she was one of the first

to sound the alarm about this. you know, i was really surprised to hear how many drugs that are prescription drugs, or even ones that you buy over-the-counter that are made in china, and brought here to the u.s.. tell us about the problem. >> oh, sure it's an untold story and let's be clear. china's aim is to disrupt, dominate and displace american companies and harm our ability to make our own medicines. we can't make penicillin any more in this country. when we have the anthrax attacks here in the united states, when the federal government needed to buy a really important antibiotic for treatment for anthrax exposure we didn't have it here. we had to go to a company in europe, a good company and they in turn had to get the starting material from a plant in china. what if china is the anthrax attacker and are antibiotics for

superbugs. so many we can no longer make here in the united states. it's absolutely shocking and it's a story that just hasn't been told. melissa: it hasn't gotten a lot of attention so start with some of the generics they make and blood pressure medicines and the like that have had strange chemicals on them or different things how big of a problem is that just from a safety perspective and standards? >> oh, it's a very serious problem. there was a blood pressure medicine recall millions of americans were effected by it, and the worst culprit and this hasn't been reported with a company incline, and the fda found a carcinogen in these blood pressure medicines but the chinese company had more than 200 times the acceptable limit of this carcinogen per-pill. higher than any other company. melissa: part of the thesis is that if they take over the business and they essentially control the market but there has been a cost advantage and that's

how its kind of gotten this way once again we're taking cheap goods in exchange for not thinking what it could mean down the line they could another thing they could do is raise the price dramatically once we can't do it any longer. >> here is what's happening you're absolutely right. we are losing control over the supply of our medicines and that's not an exaggeration and when we lose control, we lose control over price. china will be setting the price. we'll be the price taker assuming they want to sell us medicines they can withhold them and that's a huge national security risk nobody is talking about but we're beginning to. melissa: rosemary gibson we're out of time really important story thank you for bringing it to us. >> thank you for having me. connell: we said this yesterday but we talked so much about the tariffs and the trade but it does bring us to a point where we're realizing there are other issues we should are been talking about. melissa: it is the free market at work you go somewhere where it's cheaper to make it and source it but then all of a

sudden once they are dominating it but you need more competition in other countries we can turn to "our bodies, ourselves" to produce these products. connell: anyway have a great weekend and thanks foyer joining us. melissa: bulls & bears starts right now. david: vice president mike pence rallying support for the president's new nafta deal, or u.s. mca and promising canadian prime minister justin trudeau that the u.s. mca will get passed this summer and the washington post now reporting the president has put a plan in motion to force nancy pelosi's hand hi, everybody this is all bulls & bears" an action packed day, christina partsinevelos, oh , no we have jonas max ferris, adam lashinsky and gary b. smith good to see you, gang thank you for joining us. let's go first to edward lawrence with the very latest on what is