written called the population bomb. look at america. we are creating new foods. literally dreaming it up. liz: markets kicking off the market in rally mode after a three-week losing streak. the president heads to the g-7 meeting as he faces a world in turmoil. while the united states is economically strong, vice president mike pence is warning chain and on the hong kong protests. the media moving on from russian to racism and now recession.

we are going to show you why the media is wrong. there are three things you should watch out for that do trigger recessions. none of them are happening now. the media pundits admitting we should not be recruiting for a recession. the white house is talking about a payroll tax cut. the journal says navarro's tariff policies will trigger a downturn. navarro fired back that the journal did not ever seen a job they didn't want to offshore. house democrats debating whether to formally censure the envoy to

israel. more criticism of joe biden. he tweeted out a statement that downplayed the anti-israel boycott movement as just quote ideas. bernie sanders trying to politically capitalize on this by attack u.s. aid to israel. we'll show you the fallout on i.c.e. raids from companies employing illegal immigrant workers. we have new numbers on how many people the feds prosecuted on this. i'm elizabeth macdonald. "the evening edit" starts right now. [♪] liz: welcome to the show, you are watching the fox business network. the president heading to the g-7 meeting. nearly 20 foreign diplomats

telling "politico" their home countries are quietly preparing for president trump to be re-elected in 2020 as chinese officials appear to be holding off on trade negotiations in case trump is defeated. reporter: that could have been the president. headed to g-20. the white house today, they were talking about china. the ambassador was here talking about relations between the two countries and talking about hong kong. but the markets took off on news about huawei. the commerce department extended for 90 days to allow companies to sell to huawei until mid-november. >> it's another 90 days for some

of the telecom companies who are dependent upon huawei. we are giving them a little more time to wean themselves off. reporter: they will need a special license to tinseling to huawei. 110 billion dollars in imports goes under tariff september 1. another $156 billion of chinese imports will be imposed september 15. the delayed bunch includes iphone, computers from apple, ipads. the apple ceo tim cook met the president to ask thoism revisit the tariff issue. the president said he made a good argument and the president will think about it. he said tariffs are not the end,

but the means to the end. >> let me be clear on this point. we don't want china's markets to suffer. in fact we want them to thrive. president trump has a positive relationship with president -- i and we have great d with president xi and we have great respect for the chinese people. reporter: the federal reserve, there are signals that there could be a rate cut likely at their next meeting. reporter liz: here is president trump with more on china. president trump: if i wanted to make a bad deal and settle on china, the market would go up. china would like to make a deal, i am not ready. liz: the former white house

trade visor. what is the baseline deal the trump administration would accept? >> it will be something that has structural reforms related to forced technology transfer. that's what the president is talking about when he says he needs a good deal. if the u.s. wants to get there, they need to say more things like the very much was saying today. one of the biggest obstacles to the deal right now is the politics, and the politics in china and the perception that this is about the u.s. trying to contain china. i never saw the president viewing it this way. he just wants to create an even playing field. the president needs to be clear u.s. didn't start things in hong kong and that is the perception right now in china. i think the u.s. messaging this.

liz: you have been in these deals and seen them unfold. we appreciate your exer-o -- -- your expertise. the president delayed tariffs until december. when you hit a product with tariffs, it's hit at the wholesale, the mid-level range. that's the wholesale price, not the retail price. so we are not talking about 10% on a $1,500 computer. we are talking about the consumer hit here. am i wrong in my understanding of how these tariffs work? this affects consumer spending. >> it depend on the product. sometimes consume letters be hurt more and sometimes they will be hurt less. i think the president has

recognized that and this is a nuanced question. but more important than focusing on who pays. the best argument the administration can make, we have a strong economy. and what better time to exert leverage and get a good deal. if we don't do that now, the economy will be in worse shape and it will dwarf the tariffs. >> some people compared it to reagan and george w. bush leaning in. the "wall street journal" pinned a slowing of the economy worldwide on white house trade advisor peter navarro. here is peter navarro firing back. why why hasn't the "wall street journal" been edearly toizing

about china stealing our technology and forcing transfer of technology from our companies and the currency manipulation? so the "wall street journal" -- it's walled the "wall street journal" for a reason it represents wall street. the "wall street journal" never saw an american job it didn't want to offshore. liz: tough word for your company. >> we are for the rule of law. we edito edof d we editorializey times. if he's looking for better treatment of american companies. but tariffs put an enormous cost on the economy.

this is by many measures an outstanding economy. but what we are not seeing is a lot of corporate business investment and that's the fear of tried fights that's making executives reluctant. liz: business investment versus consumer spending. it's almost like when we hear the recession talk in the media, everybody gets so much information all day long, they lose their common sense. three things trigger a recession. >> mistakes by the administration can certainly contribute to an economic problem. 2% growth is good, that's what we had last square. why are we even growing faster. liz: but that's not a recession. that's a slowdown. >> what we are talking about is

the threat created when you don't have businesses investing ultimately, and we saw that big capital investment boom after the trump tax cuts. it allows workers to become more productive and earn higher wages. that's what we are seeing. but we are also seeing a signal that wonderful impact we got from the trump tax cuts is threatened by this. >> the white house is talking about a payroll tax cut to help the u.s. consumer continue to spend. i don't want to get too wonky it's tiger and tedious to see people talking about the yield curve. the central bankers are buying u.s. treasuries. there is $17 trillion worth of negative bond. that's keeping the long bond

down. but what peter navarro would say to you, the worst job losses due to trade, look at these numbers coming out of california, texas, new york, pennsylvania. he's saying the trump white house is trying to stop that. >> he doesn't seem to believe in the power of the trump agenda as far as tax cutting and deregulation. the problem in america is too few workers. this an amazing job market. 7 million positions were near the all-time high seven month ago. donald trump basically solve the competitiveness problem in this country with the tax cutting and deregulation. i'm not saying it's not valuable if you could get china to stop stealing our intellectual property. but you have to realize this is a big cost with tax and trade.

liz: what i'm asking you is this. do you think peter navarro with his policies will trigger a u.s. recession? >> if we decide that it's the government's job to decide how much other countries buy from us, if it's going to manage every one of these trade relationships and basically keep tariffing until we have a trade surplus, yes, that will be the result. liz: do you think president trump should fire peter navarro. >> if i was president, i would, but i'm not the president. liz: jairms free man from the "wall street journal." thank you so much. mexico has started busing the thousands of illegal i am grants

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on russia, then racism, now recession. chris, what gives. critics are saying the 2020 democrat policies amount to economic vandalism. >> the people from the left say this wait will take to beat trump in 2020, they should be careful what they ask for. a recession is not good, it's not good for the on -- -- it's t good for the country. many democrats have ideological blinkers on. what they are going to do if elected won't change the

recession. liz: the obama administration is to the right of the hard left 2020 democrats. obama's policy is not so state of the art. here is vice president michael pence today warning about the u.s. will have a recession if a 2020 democrat wins. >> if any one of the democrats on that debate stage wins the presidency, the gains of the last 2 1/2 years would be wiped out. taxes would skyrocket. the stock market would tank. and we would get that recession the left keeps talking about. liz: your take on mike pence here? >> there is always a danger.

holding your administration too closely to the economy, the economics are out of the control of any administration, at least in a market like we have. but deregulation is one of the first thing that drove our economy and got engine going under president trump. some of that gas is going to wear out for the continued deregulation and trying to get american industry back. thousands are strong -- those are strong things for the u.s. economy. liz: president trump has had a lot of successes on his own without any help from congress. we have a new move. look at this. by top ceos in the u.s. what they want to do may under cut senator sanders and elizabeth warren's plans, their

anti-business plans to go after big corporations and have the government take over big swaths of the u.s. economy. 200 ceos in the country agreed driving share prices is not a priority. they have to take care of their workers. >> the social cues they are responding to is not necessarily good for the country. we are not going to see the ceos, instead saying we just care about profits. they will say things like we need to open our borders more or not do business with the u.s. military. liz: chris bedford, great to see you. come back soon. lets many get you an update on more stories crossing the wires. attorney general william barr is

removing the acting head of the bureau of prisons during the probe of how jeffrey epstein was able to commit suicide inside the jail. the death toll in costa rica from tainted alcohol climbing to 25. a total of 59 have been hospitalized for ingesting what officials suspect is fake alcohol laced with methanol. the victims range in age from 22 to 72. a lung sickness from vaping has

sickened people in 14 states. the symptoms are similar to pneumonia. most of of the patients are basically young people. to kansas. strong wind gusting 6-7-mile-per-hour. caused 140 rail cars from two trails to derail in kansas. fortunately the rail cars were empty. to hawaii. the u.s.s. arizona memorial set to reopen. the memorial was closed in may 2018 when a crack was discovered in the loading structure. it marks the final resting place of marines and sailors killed during the surprise attack on

pearl harbor by the japanese in 1941. illegal immigrant workers fleeing their factory jobs in states like georgia. new and growing questions about why so few companies have actually been prosecuted for hiring illegal immigrant workers. later in the show. congresswoman rashida tlaib and ilhan omar explain why they did not travel to israel during their escalating controversy with that country coming up. ♪ ♪ introducing the all-new chevy silverado. with fifty industry-firsts. it's the strongest, most advanced silverado ever.

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they are take together streets, even as the military threatens them and local police threaten them. what's your reaction. >> i am not surprised. within the last two months you have seen the protest continue to grow and the chinese are continuing to expand their influence. this key development shows they are willing to use disinformation to create instability in hong kong. beijing has the authority to go in and utilize its military to expand itself and gain more influence and continue to disrespect hong kong, autonomy. liz: it shows courage. twitter took down 1,000 fake accounts originating -- suspected -- originating out of

china. they are saying u.s., you can't sell f-16 to taiwan. there is no surprise there. right now it's a tit for tat and president trump mentioning you continue the violent crackdowns in hong kong, there will be no trade deal. that puts a lot of pressure as they have been experiencing a slowdown and economic growth. you also have another situation where the chinese have been under a lot of scrutiny in terms of human rights abuse. also in western congress the u.s. congress has been condemning them as well. liz: you are an army major and you served in iraq, right? i want to switch gears to what

happened with isis in that's suicide bombing in kabul, the wedding party. i think now 63 people dead, 182 injured. what does this mean for the peace talks with the taliban? >> it's reminder that isis gained a lot of mow men full. they have been able to conduct counter attacks. they have been able to do that in a stronghold which is kabul. the united states has to negotiate the taliban to get them committed that they counter iran if a troop withdrawal happens. >> let's move on to the iranian oil tanker. iran warning the us if it tries

to seize the crisis there will be a heavy price. this brings a lot of cute any in terms of the united states pressure campaign. see much bring to the table where now you have iran saying, leave this ship alone on its way to greece. you also saw prior activities for instance i am going to increase enriching uranium under the iran deal. they shot down a u.s. drone. also they did a medium miss soil test. so there has been a lot of activities with iran. and i think we need to consider some sort of diplomatic communications with them. in core retoday whether to get the senator ron paul to speak with them, that would be a way to get diplomatic communications

with them. liz: do you support the president on his policies on iran and iraq and afghanistan? >> there are some disagreements i have with them. but i believe we should have diplomacy and utilize that more as a way to secure our interest. >> we have a whole lot of show on the evening edit. mexico trying to bust back to its southern border guatemala. tens of thousands of illegal immigrants at the u.s. border. congressman tlaib and ilhan omar take on their critics over their anti-israel positions. that story coming up. ales. all before lunch, which we caught last saturday.

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liz: a report that illegal immigrant workers are now fleeing food factories in the georgia. this after i.c.e. raided mississippi food plants. 300 of the 600 arrested were let go on humanitarian reasons. ways your take on this happening in georgia? >> perhaps those in our country illegally are beginning to get the message that just because you made it here across the border does not mean that you can stay here. this has been a message the trump administration has been trying to make clear. border protection doesn't end at the actual physical border. it requires enforcing our immigration laws inside our country. if we had employers employing

hundreds if not thousands of illegal immigrants, that's a problem. liz: the transaction ago record clearing -- transactional record clearing house. they found only 11 individual employers and no businesses prosecuted for hiring illegal workers last year. only 15 employers a year get caught and prosecuted. 15 year since -- since 986. -- 1986. employers are in a dissuasion where a lot of illegal -- a dissuasion where illegals obtain false birth certificates and social security cards.

so it's hard to know who is in the country legally or illegally. specifically it was reported 200 illegal immigrants who also had criminal records. it's important to have these agencies who are able to do their job. when you hear the rhetoric from the left saying they want to abolish i.c.e., it shows how difficult it would be to deport anybody who is here illegally is subject to deportation. liz: reports coming in, reports coming in saying mexico is sending many of the 30,000 central american illegals trying to cross the border, that mexico is putting them back on buses for a 750-mile bus ride back to mexico's southern border guatemala. it's part of the remain in mexico program by the trump administration. do you think this will serve as

a deterrent? >> i think that's quite possible. we have seen numbers drop this summer. we don't know if this is the reason why. but thus far mexico and perhaps guatemala are willing to do more to help us enforce our borders than liberal politicians in congress are. this is a policy mexico agreed to and it's encouraging to see them foul and enforce it and have it produce a substantial difference when it comes to the crisis which is also a humanitarian crisis. instead, what we are hearing is more open borders. liz: coming up, still ahead. joe biden making another mistake. this time in the fight over israel. with joe biden down playing the

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liz: the progressive hard left congresswoman rashida tlaib and ilhan omar holding a press conference over their fight with israel. >> we give israel more than $3 million in aid every year. but denying a visit to duly elected members of congress is not consistent with being an ally. >> it's unfortunate prime minister netanyahu has apparently taken a page out of trump's book and instruction from trump to deny this opportunity. while folks are shocked this happened to us. but today we'll hear from folks who will help show the reality

from many who have been barred from going to israel. liz: this after israel said yes, congressman tlaib can visit her grandmother on humanitarian grounds, but that she could not engage in boycotts while in the country. daniel, critics are saying tlaib's visit to her grandmother, was that just an excuse? >> absolutely. this press conference they just conducted proves that their hatred to israel is boundless. they never miss an opportunity to disclose the lemon of hatred. the former prime minister of israel said peace will come when

the palestinians love their children more than they hate us. congress one and rashida tlaib just proved she hates us more than she loves her grandmother. or why would they miss the opportunity to come when she was accorded the licenses to come. she opted to use it as a stunt, grandstanding against israel. liz: the group organizing and funding their trip to israel is an avid supporter of the bds movement and their members expressed support for terrorism against israel. representative tlaib calling for a boycott of talk show host bill maher after bill maher said on his tv show that tlaib and

omar's boycott of israel is a purity test for democrats. >> it's a [bleep] purity test. bds is a [bleep] purity test for people who want to appear woke and actually slept through history class. it's predicated on this notion that's very shallow thinking, that the jews are in israel mostly white and the palestinians are browner so they must be innocent and correct and the jews might be wrong. as if the occupation came out of the blue. these completely peaceful people found themselves occupied. liz: ambassador, your reaction? >> i agree when every word. this is a comedy show, but bill

maher hit it on the head. the congress women calling for boycotting this. it's not consistent with their own incitement. it's like the thought police. this is not the conduct in any civilization between civilized people and certainly not the democracy. liz: critics are saying of these congress women, why don't they take on what's going on with women, the anti-gay and anti-women persecution over there. we also have the world jewish congress condemning tlaib fear her statements. there has been silence from the two of them, what the middle eastern countries have been

doing to women, gay people, slaughtering children. joe biden tweeted this. no democracy should deny entry to visitors based on the contents of their ideas. is the bds movement just an idea? is joe biden right? >> well, unfortunately not. bds is not just an idea. it's calling for action for basically to destroy israel. the founder of bds is repeatedly saying palestinians will never accept a jewish state in our own land. and they say, their battle cry will be the entrance to the jordan river to the sea. by the way, with vice

president -- former vice president biden which i respect have much. but i would remind him that it was during this administration when presiden -- that presidents in that a former israeli member was not allowed into the united states based on his ideology. liz: ambassador, thanks so much for joining us. we really appreciate. senator lindsey graham warning the fisa documents that triggered the russia probe are nothing but a quote fraud on the quote. that coming up next. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost.

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elizabeth: senator lindsey graham not mincing words, warning that justice department inspector general probe to both -- obama administration obama ra probe will not be pretty. >> will be ugly and damning regarding the department justice handling the russia probe. i want the american public to hear the story, i don't want people to believe what i say about it, i want them to read for themselves how bad it was, warrant application to fisa court i believe quite frankly was a fraud on the court, i want

it all out, i people to see how off the rails should invest got. elizabeth: with us now. republican congressman tom. our reaction? >> i don't have any particular insight to what the horowitz report will reveal or the other investigation, including one by u.s. attorney john durham, only insight, is we might with mike ol horowitz, a group of judiciary members in late june, he told us they were in process of preparing a report but they had to reinterview witnesses, only reason i think they came in possession of contradictory information, i think that lindsey graham is correct. the picture that is taking form now is one of a nexis of

democratic partisans in intelligence agencies in department of justice, creating a fall nair -- fal false narratd feeding it. being used to initiate investigations into leak news of that investigation to the press. in an effort to influence the 2016 election, when they failed to do, that to use that on undermine the legitimately elected president, that was the insurance policy that peter strzok ominously spoke of in his e-mails. elizabeth: meaning the steale files. >> yes. elizabeth: everyone understands the necessity to figure out how deep russia got in, in middling in the u.s. election. there is a separate track, about that about politicizing the intelligence community. when you say condra dec --

contradictory, we talking james comey, peter strzok, others contradicting each other? >> that is what i suspect, i can't think of any other reason why he would have to go back and reinterview witnesses he has already talked to. elizabeth: john brennan testified two years ago he shared information with the fbi. about trump campaign associates, so, is the ig ig try to dig to t cia did? >> inspector general does not have jurisdiction over the other anxiet -- agents but he can make referrals to the district attorney, i am quite confident before this is done we'll have a clearer picture of what is going on. elizabeth: thank you congressman, great to see you.

thank you so much for vagus in your home, thank you for watching, lou dobbs is next right here on the fox business network, have a good evening. lou: good evening, president trumplining up with pro-freedom demonstrators in hong kong, washing china that taking -- warning china that taking any action against millions of protesters there would jeopardize any potential trade deal with the u.s. >> no, i think it would be very hard to deal if they do violen violence. if it is another tiananmen square, it is a very hard thing to do. if i wanted to make a bad deal and settle on china, the market would go up, but that would not be the right thing to do.