american people, workers, manufacturers, farmers, ranchers, entrepreneurs, citizens -- liz: okay. >> -- from the unfair if trade. and tariffs is a major tool to do that. and, by the way, it's going to be a really -- you'll have a lot of shows on the tariffs and how they'll help get the tax cuts renewed in the new bill, because it's a great source of revenue as president mckinley, one of president trump's great heroes, did. liz: peter, here comes the closing bell. we thank you. we'll be watching the progression and how all of this unfolds. peter navarro. here we go, dow 44,000 is back with this 528-point gain. green on the screen. that's going to do it for us. "kudlow" is >> hello folks. welcome. president trump comes out with

an avalanche of executive orders and reforms on day one. he has optimism, energy confidence, unprecedented popularity persuading people. we really can be a shining city on the hill once again. the trump pump is back in the markets. we have senator ted cruz and tommy tauber vale, senator marsha blackburn on all of that and more in just a few moments. giving us a quick primer on these canadian and mexico tariffs. first on fox news, live on capitol hill. >> it is ongoing. we have a picture at the white house waiting for those folks to come out of the oval office.

i was where some of these folks made their way to the white house. a short while ago. they seem to be in good spirits. this is probably a temperature check by the new president to find out if they are still on the same. he probably wants to know where they are at with that and how quickly that will get done because as of right now, leadership is on the same page but there are some conservatives out there like the house freedom caucus that want a to build pack you have other republicans and, look, we've got to stick together and not let the perfect , the pursuit of perfection be the enemy of the good. that is what is going on. talking about this reconciliation package and hopefully we hear sound what comes out of that meeting. it is a busy day on capitol hill trump said nominees are

progressing. senator marco rubio sworn in as secretary of state this morning. vice president jd vance delivering the oath of office to him. a potential bump in the road to the hegseth. he was voted out of committee last night but there is a new allegation today from his ex- sister-in-law who is claiming he made his second ex-wife feel unsafe and that he had an alcohol problem. he has reportedly denied these claims. republicans have not even seen the testimony yet so it is unclear if this would dissuade them from confirming them. last night trump's nominee favorably reported out of committee with a bipartisan vote so we could see a confirmation vote coming for her soon. cia nominee john ratcliffe reported out of their committees last night.

she had her hearing today for un ambassador. she has widespread bipartisan support. these are probably the more controversial pics for the senate and these hearings have not even been scheduled yet. i would not be surprised if the president right now in the oval office is asking what is going on and why is this not happening more quickly. larry. >> great stuff. thank you very much. i am sure mr. trump is asking that very question. it is a good one. infectious trump optimism. it is a big american morale booster and a unifier. that is a subject of the rift. ♪ so, step back for a second and just think about this. first day in office, president trump delivered six speeches by my count. his inaugural speech which was wonderfully optimistic unity speech full of american success

and recovery kind of like reagan shining city on the hill is back and then he gave another speech on capitol hill to various house members and staff and then he gave another speech downtown at the capital one arena. then he gave three speeches that evening at the galas. auntie bogeyed up a storm. dancing with milani a who look so fabulous that she practically stole the show herself. and then during this long day, by some counts, he signed 118 executive orders. 118. most were biden rescissions, one rescission i specially like was ending the biden agreement to raise a global tax on american businesses. many of the orders turned us back to first term policy. somewhere new ideas like what to do about tiktok. then you have provoking security clearances and deep state anti- trump officials.

and then some doj regulations. recognizing two genders. male and female. executive orders in the oval office last night before he went off to the galas. he simultaneously held a news conference for about one hour. it is not far-fetched to say that donald trump did more in one day and joe biden did in four years. mr. trump still has much to do to clean up biden's mess. straightening out the country. all things are possible with an optimist who believes in the american dream of success and talks about golden era spirit what a welcome relief from the dark ages of joe biden and the fundamentally pessimistic visions of people in society

that is always held by socialists and progressives everywhere. you know, for them, it is all about the state. for mr. trump it is all about individuals, hardware, meritocratic climbing the ladder of success. mr. trump will close the borders to illegal immigration and deport the criminals as fast as possible. he will reopen the fossil fuels to boost energy production. hopefully bring down prices. he will doj has way towards ending the social regulatory state. did not mention this specifically, though we did not mention it specifically in his inaugural speech, he will extend his highly successful progrowth tax cuts and even add to them. wall street thinks tax cuts and tariffs will be inflationary, but the stock market is booming. we know that it cannot be inflationary. not only because it was tried once before and was not

inflationary, but we want to believe mr. trump when he tells us this time it will not be inflationary either. he will start right away, it may be in just a couple of weeks and , perhaps slap big 25% tariffs on mexico and canada if they don't play ball with us and shut their borders to both illegals and fentanyl. mr. trump believes that he can sick the tiktok to non-drum and is ready to travel to china to do some business even though it will entail even higher tariffs. he has more work to do in the middle east to stop thomas from taking over gaza again. stopping iran from developing more nukes and have plenty more work to do in eastern europe to develop some kind of peace deal between russia and ukraine. he is already trolling mexico by renaming that body of water the golf of america. he has put panama and china on short leash notice that he will

enforce the western hemisphere. you may even add greenland to the mix and rename it the trump doctrine. meanwhile, mr. trump's incredible energy and optimism and belief in the old-fashioned american value of success and hard work is that while he may, he has so many things on his plate. you actually believe he can lead america to success. all of these endeavors. his optimism is infectious. americans have a long history of wanting to believe optimism and yearning for optimistic leadership. here comes mr. trump with a calm demeanor with his usual businesslike approach. this time with a renewed faith that god wants him to succeed and then you think right now for

one shining moment and one extraordinary honeymoon that he can do it all. why, because he thinks he can do it all. you know what, a large majority of us want him to do it all and that is two nights rest. joining us now, somebody who wants to do it all. we will bring back our great friend texas senator ted cruz. plenty to talk about after that and buster first day in office. i think that you will agree with all of that. can i just ask you one thing, it just kind of occurred to me, while he was running executive orders in that press conference in the oval office last night, before he went to the galas, he mentioned that by february 1, you could see a 25% tariff on both mexico and canada. now, i thought that he would have a little more time to negotiate with them over, you know, border control and their

help in military and fentanyl. declaring we will declare the cartels to be terrorist. were you surprised that in a couple weeks he may be slapping tariffs on, let's start with mexico. you are from texas a short neighbor. what do you make of that? >> i understand his threats of tariffs in the context of what he did in the first administration. he threatened the same tariff 25 % on mexico unless they help secure the border. that is how we got the remaining mexico agreement. that is how we produce historic low illegal immigration. the lowest rate in 45 years. i hope and believe that his plan is not to put the tariff in place, but rather to use that as leverage to get both mexico and canada to cooperate. that may prove wrong. by hoping on the advice that i have given the canadian government and i would give the mexican government is come to the table with as aggressively as human possible to actually

secure the border. deliver on that. i think the better outcome for everyone is not to put the tariffs in place because we suddenly have partners who are securing the border and addressing the crisis that all countries are facing. >> mexican president, so far somewhat aloof. she said a few nasty things, she said a few okay things, she had not come tomorrow lago to negotiate. putting a february 1 deadline on their just a couple weeks away. something has to give. otherwise the deal a couple years ago that we all did will blow up. how will that work down the road >> if the mexican president believes donald trump is bluffing, he is not bluffing. my hope is he does not have to. mexico will cooperate in secure

the border. i predicted we now have a president that will enforce the law. we will see the numbers plummet immediately and if mexico actively participates, that will help substantially. >> moving on to something else. energy policy. doing what he set out to do. all of these executive orders, going to open up production, open up the two oceans to drilling nt will open up to alaska. he wants to open up lng exporting. i think texas is the greatest in the world. texas, louisiana so forth and so on. are you happy with that so far? >> very happy. if you look at the mandate that came out of election day, one is to secure the border. another is to turn around inflation. another is to release the energy

by doing so we will see prices fall not just at the gas pumps, but at grocery stores and department stores and energy costs baked into the prices of everything. america is an energy superpower and finally we are acting like it instead of having joe biden and kamala harris wage war. if you have talked to some of the independents on your where some of the large corporations down that way, will they drill more, will it go back up, will the lng production go back up? what are you hearing from that crowd. there's an argument on wall street that will take a long time. acting like they are money managers and capital managers. what are you hearing from that group. >> i expect we will see

significantly more drilling. we will see more pipelines, more terminals, more investment. there is a lot of enthusiasm both from the majors, but also from smaller independents. i have a lot of friends that are smaller independents. you look at texas. texas was basically built by guys who had fourth grade education and began drilling holes in the ground one after another became the richest man on earth. that spirit is alive and well in the great state of texas and white fully expect we will see major investments in expanding energy production. >> i've been watching land man every sunday night. >> it is awesome be back one of the greatest things. if you watch it, you get a real education in the business. >> billy bob thorton is spectacular and it. i think it is the best show on television right now, except for yours, of course, larry. [laughter] >> slightly different category.

land man the best show on tv. you are absolutely right. talk to me if you can or care to about tiktok. yesterday mr. trump talking about extending, he will extend the order to close down tiktok. okay, fine. he was ruminating in his press conference last night in the oval office that perhaps you could have an ipo, may be a private equity deal, maybe the government would take 50% of the deal or 50% of the profits. he was tossing around some very substantial numbers. it kind of sounds like to me that he would like to keep tiktok viable. in order to buy it, somebody has to sell it. i don't hereby dance wanting to sell it and i don't hear the chinese. then again, i don't know, what do you think? >> forcing china to sell to give up ownership and control. chinese propaganda and espionage that should remain the objective

that is what i hope and believe is president trumps objective here as well. there are a lot of deals that you can envision that would make that happen. it would speak volumes if bytedance refuses to sell it tells you it's a chinese communist government that this was never a business. ordinary businesses do not decide to go bankrupt and shut down rather than take aliens of dollars. that is not a rationale business decision. china says no it is because their only interest is using this for espionage and propaganda. it really doubles down on the national security threat. the delay, whether 75 days of the statute originally envisioned 90 days, the delay was written in the statute to allow time to close a deal. we need that deal to happen because we need china no longer peddling poison to our kids. >> you know, i always assumed, you know, we looked at this back in the first term. i always assumed as i think you

are inferring, china was using tiktok as essentially a spy machine pulling together all of this personal information. you know over 100 million americans, maybe 15,170,000,000 americans but mr. trump raised an interesting point. in his press conference last night while he is signing away executive orders on everything under the sun he is saying, well , how much information or who cares about the private information of a bunch of teenagers and gen xers. in fact, the more information of that crowd you know, it could be the scariest thing you have ever read about. i have never really quite thought of it that way. he is thinking out of the box. are we overestimating the spiciness of it? and underestimating the gen x communications or is it really, in your judgment, and i rely on your judgment on these kinds of things, 100%, is it a spy

machine and we have to do something about it? >> i think it is designed to be a spy machine. it is not just kids. 170 million u.s. users. half the population of america in the ability to engage in real-time espionage is a real-time thing to hand to and allow our most african geopolitical adversary to have. the propaganda aspect is serious they push garbage to our kids. i talked about this at length. how they use substance abuse. self-harm, suicidal ideation. they push anticapitalist messaging. they push anti-israel and anti-semitic content. it is very much an information operation directed at weakening america and in particular targeting young people.

that is why you see such a bipartisan consensus in congress to say that we cannot allow communist china to have this power over the american people. >> i think our new secretary of state agrees with you, sir. anyway, senator ted cruz, thank you. coming up, we will talk more about the threat that we may have a tariff war in two weeks. could kick in sooner than anybody thought. not necessarily about china, but it could include mexico and china. two people going into some of the details. wall street's number one washington washer. we will be right back.

the way i approach work post fatherhood,

has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. >> well, thinking in terms of 25 % on mexico and canada because they are allowing vast numbers of people, canada is a very bad abuser also, vast number of people to come in and fentanyl to comment. >> would and would you enact that? v-neck february 1. [inaudible] >> i may, but we are not ready for that yet.

we may wrap it. essentially, all countries take advantage of the u.s. >> joining us now to talk about this, february 1, which i think that is new information from president trump. anyway, john carney co-author and dan clifton head of policy research as strategic, he is the best washington watcher on wall street or in washington, for that matter. welcome. let's start with you john carney you heard him, february 1. i think, particularly, mexico, if the president, if she thinks that is an idle threat, she better think again, that would be my guess. >> i think that is what donald trump is responding to. mexico is not treating this seriously. neither is canada. there's a donald trump is bluffing. i don't think he will come down

with the tariffs. they don't have to change their own policies. he is not asking for that much. he is asking for return of the status quo ante. what existed last time he was president. they should give that. if they want to test donald trump on it i think they're going to find out that donald trump is not bluffing. the tariffs will come. >> dan clifton, how do you read the story. >> as you remember november the president said he would put the tariffs on mexico on day one. i think what the president is doing is keeping his foot on their throat to make sure that they are reinforcing the remaining mexico policy when it comes into effect. when you read these immigration executive orders, these are sweeping immigration changes that the president is putting forward that will finally get our borders secured.

but there has to be cooperation for mexico on the other side to do that and he just does not want to make sure their caravans coming through. i will tell you this, putting up significant offers on the budget wanting to see more progress in the arctic. starting to be able to make and rose and canada as a very good road to that. this is a president that is in a unique position because he has been here before and he knows where the levers are. he is laying them down to make sure that all the policies work. >> just to follow through on this, remaining mexico back in the first term which was very successful in large part because president over door gave us 25,000 troops on the border. it was a big help. enormous help. the numbers were knocked down

right away. i've heard nothing similar to that from the current president. i think trump will send troops to the border. he sent american troops going to the border. i think that she is making an enormous mistake here because he will slap a 25% tariff on autos or manufacturers. they totally rely on us for the entire mexican economy. what do you make of it? >> i can do a little reporting and breaking news right here. i can say that donald trump had people reach out to mexico and say we are not asking for very much. we want you to send the same troops that were there before back to the border, enforce a policy that you agree to enforce when i was president before and he has basically received radio silence in response. donald trump's message is we are going to impose the tariffs.

if you will not respond, we will impose the tariffs. this is a broader message. the rest of the world is waiting to see how this gets resolved. donald trump full tear waiting for mexico to go along with his demand, the rest of the world will say we also do not have to do what donald trump says. >> i will just guess that if he goes ahead and imposes a 24% tariff let's say on autos and manufacturers and we know that china has been coming through mexico in order to avoid the u.s. mca domestic content, is -- mexico's economy will get her. they will get killed. correct me if i am wrong. they will not get hurt, we will get hurt. >> absolutely. it will hurt them much more than it will hurt us. this will be a significant shot across the bow. when you read that executive order it is an excellent

document. we have not made any decisions yet but everything is on the table. we will look at every single trade issue there. why is china not committed on its purchases. who was trade balances out and then you want the agencies to report back in april, right around the time we will be doing the extension. we will come up with a plan. i think the president indicated that yesterday. we are just not ready on the universal tariff. they are trying to figure out how to structure it. they will not put the u.s. in recession over tariffs. they will not heat up inflation because that is what they got elected on. trying to figure out how to get that rubik's cube to the right policy beds. there is chaos at the borders. mexico will pay a very high price for that. they will wind up cooperating and this will end up fostering

ahead of the renegotiating. >> let me just skip that. china investment in mexico to avoid. >> i think that that is one of the key things on trump's mind. it is an issue. he did not mention tax cuts. in the inaugural speech. i don't think he has given up. >> i was surprised that he was not growth the year. i think he put a lot of pressure on the senate on this issue and i think he did not want to be seen as hammering them. it is in the hands of the lawmakers now. they have to follow through with tax cuts. this was an olive branch. >> i wanted to hammer the senators, actually. thank you ever so much. trump is president and democrats have no idea what to do about it

joe biden is so sleazy, pardoning his family. it is a bone crusher to be a democrat today. weighing in right ear onset.

we create an alternative here. we have plenty of brainpower. we can make a cheap outlook. instagram is far more sophisticated than tiktok. >> we can make gen z grade again [laughter] thank you very much. joining us now is alabama senator. welcome back. i do not know if i want to make gen z right again or not. i have to think about that one. i do want to ask you, some pretty strong regulatory executive orders yesterday. one that really interested me, one that says no new regulatory orders, i love that, schedule f. anyone who is engaged in policy, i don't know exactly how many there are. some estimates run 10,000 some go as high as 50,000.

what the order says is president , a president as the right to fire him if he or she does not like the way they are behaving. this is a long time trump goal. >> president trump has an agenda , larry. he has been sitting around waiting and thinking about all of this. he has people investigating all of these things. there will be lawsuits going everywhere. guess what, we have a new sheriff in town. he has been serious about this. he will take control of this. he will put people back to work. he will make sure everyone goes with the right regulations. it is a different world up here just for one day walking around here in the capital. the media, mainstream media is going absolutely berserk. >> i just think that trump is so

optimistic very optimistic talking a lot about success a lot about unity. i think a lot of people want this. there's a reason he is so darn popular right now. people want it. democrat, independent, black, white, i think people want optimism and they want to see somebody that can solve all the problems that joe biden's dark. brought. >> they want to hear their leaders talk. joe biden never gave a press conference. maybe one or two in a years time president trump gives press conferences. he has a game plan. he understands what is going on, what is good and what is bad. will he be able to fix everything? sure, he will not be able to fix everything. we are in a tailspin right now. in every area, the economics, foreign relation, the border,

you name it, it is out of control. he has a plan for because he has been thinking about it for four years. >> big story, big headline in today's wall street journal. believe it or not, hamas is effectively retaking control of gaza and part of this is functioning this new cease fire. i cannot believe that president trump would permit this, but that is what the biden cease-fire had. what do you make of that, sir. >> between egypt and gaza, that is where a re- up all of the recruits. they bring people underneath the fence and when they had a cease-fire, even netanyahu said this. when we do this they will re- infiltrate gaza. they will have everything that they need to fight back. it is just slowing the war down right now in a period of time. it is coming back. hopefully we can get this done.

if we continue to let them reload every time there is a cease-fire, you will not ever have a solution to this. >> yes, sir. appreciate it. running a little short today. as always, we appreciate your vision. coming up, we have to extend the trump tax cuts. must extend the trump tax cuts. let's get it all done in one big beautiful bill. we will talk about that was senator marsha blackburn. we will be right back. ♪

the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.

joining us now tennessee senator michelle blackburn. senator blackburn, always great to see you. you are on the radio saturday and you had what i thought was a really brilliant idea. you said with respect to this one big beautiful bill debate, why not just extend the tax cuts not trump tax cuts two-point oh, but just extend the current policy tax cuts and put that in to the first bill. and then if you want a second bill later on for more exotic tax cut, marsha, i have sold that, i have talked you up to a whole bunch of people and people have said, yes, it is a great

idea. let's just extend, put that into one big beautiful bill and way down the road to do more bold things. i have loved it and so is everyone else that i've talked to. >> well, i think that it is the route that we should go. let's use current policy, let's make those trump tax cuts permanent from 2017 and then let's come back and do no tax on tip and overtime and social security. they are the people that want to lower the corporate rate. and all of those will require offsets and they will take longer. the easier portion would be to extend the trump tax cuts from 2017 and make that permanent and then come back for that second bite at the apple with a more difficult components and it

gives us time to build support for that. >> also, look, a lot of people think if you are just extending the 2017 tax cuts, that is all you're doing, nothing new, there is a current policy baseline that does not have to be re- scored. it does not have to be deficit so forth and so on. just keep rolling through that the way you what unfortunately some spending program. a lot of senators believe that. a lot of house members believe that. it makes the job even easier. >> yes, indeed it does. then for things like my bill that would take care social security for seniors right now at $25,000, people do not pay tax on social security. but let's raise that to 34. let's take away the marriage penalty and say that it is 68,000 for a couple that is filing and then let's index it for inflation.

so, they are, we have a current policy that we can tie to. we can update and find the appropriate offsets for whatever that would be, but, it would be a smaller amount because we are updating that policy. >> just the extension and things like the 100% appreciation and the kiddie tax credits and the reduction in the rate reduction, that is a plus for the economy. it is a huge plus. it gives people more confidence to go out there and invest and spend. i just think that this is absolutely a bill for all seasons. >> i do, too. the american people have been so clear. they want the border secured, they want the price at the pump to come down. they want our military tablet they need to carry out their mission. they want us to get inflation in the cost of living under control

they want these tax cuts extended. >> thank you, senator blackburn. terrific stuff. ...

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after last month's massive solar flare added a 25th hour to the day, businesses are wondering "what should we do with it?" i'm thinking company wide power nap. [ employees snoring ] anything can change the world of work. from hr to payroll, adp designs for the next anything. larry: tell you what watch out. they didn't help mr. trump on the border 25% tariff here it comes. it'll decimate their economy. oh, and by the way, gulf of america, has kind of a nice ring to it you know what i mean? elizabeth macdonald has a nice ring to it. liz: [laughter] we hope, you know, larry i love your talk about optimism. it is a force multiplier and i was reminded o