somewhere and how protected are people's funds and money if they put them in the bonds. >> the world shifted on that front. these are, you know, kind of not the same emerging market political volatility we've seen a decade plus ago and look at credit default swap, which is a measure of credit risk and up tick in some ratings in here and i think you're being compensated for that political uncertainty and think about the debt profile and u.s. has among the worst in the world right now. liz: jack, good to have you and closing up and can't wait to see you on monday when it's february. larry: hello, folks, welcome to kudlow, i'm larry kudlow. karoline leavitt make it is official, president trump will

announce 25% tariffs on mexico and canada tomorrow. we'll break down what all that mean withs senator kevin cramer, house member claudia tenney in just a moment. plus, what does this mean for inflation and the economy? we'll ask steve forbes and ej antoni. you don't want to miss this. steves got the all star panel of steve pavlich and -- kate pavlich and panel like papa bush and first up, we need an update on the tragic awful plane crash in washington dc. our own grady trimble live at reagan national. grady, what can you tell us today? reporter: larry, just in the last few minutes and transportation secretary sean duffy announced faa is restricting helicopters from flying in the air space over the potomac river around the airport. that will remain the case until the ntsb provides it is preliminary report on crash so

about 30 days or so. there's a handful of active law enforcement and active air defense or presidential transport. there's a preliminary faa report that says that staffing was not normal in the air traffic control towers at the time of the crash. the report says there was one air traffic controller communicating with both helicopters and planes when normally those jobs are done by two people. that's something the ntsb will be looking into as part of the investigation and the ntsb is going to be overing the black boxes and that's going to be the flight data recorder and cockpit voice recorder from the american plane and going for them to piece together the moments leading u up to the crash with e plane and the american flight was seconds from landing and black hawk helicopter performing routine training and going to keep that going for altitude.

and transportation secretary sean duffy said both aircraft on standard flight path but today there were reports that perhaps the helicopter was flying too high at the time of the horrific midair collision. larry, we know that ntsb has not yet recovered the black box from that black hawk helicopter. they tell us they know where it is, and that'll be critical because that will tell us the exact altitude of that helicopter at the time of the crash and what was going on in that so the second piece of the equation when that collision took place. larry. larry: grady, few defense secretary pete hegseth going to launch his own investigation regarding the black hawk helicopter black box reporter: absolutely. he announced that yesterday and reiterated again on fox news today. he'll launch his own investigation through the department of defense and i can also tell you that the ntsb will be working hand-in-hand with dod

as they do their investigation because obviously the truth and answers and fact to what happened and what went wrong and how to prevent these types of things from happening again. larry: transportation secretary, our friend sean duffy, he's going to oversee the whole investigation, the black box investigation and all that goes with it? reporter: yeah, that's the ntsb, that's a separate agency leading the investigation and of course, every step of the way the dot will be involved in this and if there are recoendations from the ntsb from what they find, they'll make those and dot and e faa will be the ones responsible for implementing them but again, it's way to early to speculate what sort of changes might be coming down the pike. we await thapreliminary report. larry: all right, grady trimble, thank you ever so mu. appreciate the rundown. now, going to thwhite house for the latest on the war against xico.

our own edward lawrence joining us. edrd. reporter: yemexico, canada, and chin seems at 121 a.m. there'll btariffs. 25% on mico and na and 10% on cna. present trump coirming that in the oval office momen ago when he was speang and use press secretary announce these tariffwere in fa going in place, the markets took a dive, reted. thscreen.he result othatn the canaan pri minteno listen tth.n. >> if the presidt oos to implemenany tariffs against canada're readwith a respon a purposesl, forful, but reasableimmediate response. it'sothat weant,utf he moves forward, we wilso act. repoer: karoline leavitt canada, mexico, and china can do to avoid tariffs now so i asked out trade tensions, sten.

>> are wseng the startf a trade r? >> i don't think s. i think the president is going to i want memhet the tariffs tomorw, and he wl respond to mr. trude's wrote at does theime i am sure. administration need to see in order to avoid the tariff s? >> w the tariffs are incoming tomorrow on canada, and the reason for that is because both canada and xico have allowed an unprecedented invasion of illegal fentanyl that is killing american citizens. porter: she says looking at total spending cuts shrinking the government and reducing energy, you may not see inflation. sources familiar with the talks tell me both canada and mexico have laid out what they're doing at the border and plan to change to meet trump's expectations and i'm told they have frustrations because the trump administration has not given a punch list of what must happen to avoid tariffs and president trump has said he wants illegal crossings to end as well as ending fentanyl crossing at the border. under the biden administration's last 19 days, average encounters

crossing the border with mexico illegally was more than 2,000 per day and look at that line. the average encounter down in the first nine days of trump administration to 126. you see the impact that president trump already had on this and we'll have to see how long these tariffs remain in place for all three of the countries. back to you, larry. larry: edward, regarding mr. trudeau, i didn't know he had a job. and speaking as a private citizen or why is he speaking? reporter: he's going to hold that position till they find a replacement and party finds a replacement. he's talking tough towards president donald trump but, you know, i see what's going to happen. it's going to hurt their economy and warned canadians to be prepared for real pain. larry: silly me. i thought he was out of power. edward lawrence, thanks for a great update. appreciate it very much. folks, mr. trump tells mexico

and canada, america first, and that's the subject of the riff. if president trump believes that mexico and canada are damaging america's national security by failing to sufficiently help us on the border to prevent illegal crossing ands prevent the influx of fentanyl or other drugs, or not helping us to defeat the mexican cartels and i believe he's absolutely right to use his tough tariff diplomacy by slapping 25% tariffs on both countries. that includes the 10% tariff hike on china, which is supplying the fentanyl drug components that are then manufactured in mexico and then sent across the u.s. line. china by the way is subverting the usmca north american free trade deal by building plants in mexico and dumb 7ing cheap cars into the -- dumping cheap cars

into the u.s. and without adheres to u.s. domestic content and other rules. the announcement by press secretary karoline leavitt, president trump made up his mind and will impose these tariffs tomorrow and it's very clear, that's the president's conclusion. whether he has any specific metrics in mind regarding illegal crossings or drugs or sex trafficking and all that remains to be seen. and whether he's negotiating with canada and mexico remains to be seen. he has laid down the law. tariffs are legitimate tool to engage with national security policy as well as economic policy. and presumably the requirements at some point then the tariffs could be lifted. well, we don't know that. and we await a statement from the president himself, perhaps tomorrow or perhaps tonight even. by the way, mexico's ties to

china have become a major problem. mexican imports from china have increased 50% over the last five years. chinese investment in mexico is up by the same 15%. usmca rules must be changed to place explicit limitations on chinese content. right now the u.s. is running $170 billion trade deficit with mexico. and it's sustained across numerous product groups. canada is a bit different and u.s. is running a $70 billion trade gap with them, but if energy is removed, we actually have a surplus with canada and that surplus going to includes automobiles and manufacturing. now, 60% of u.s. oil imports come from canada and canadian oil companies provide us with a

20% discount and their heavy crude has to be refined into gasoline and diesel fuels. some oil experts are pointing out, a 25% tariff wipes out the 20% discount. so they fear that gasoline prices in the midwest and in the northern states could jump by perhaps 40-75-cents. the oil industry is hoping for a carve out from the 25% tariff and we'll see about that. on the tariff news announced by ms. leavitt, dow jones fell about 130 points and they believe the tariffs are inflationary and i suggested before, tariffs are not. sure, there might be some minor one time product price increases, but exporters to the u.s. will bare 50% or more of the tariff increase by luering their prices in order to sell to american consumers and businesses. that was our experience with

china during the first term. only way inflation picks up in a sustained fashion is if the federal reserve keeps printing presses wide open. mr. trump's truth social post on wednesday, he criticized the fed for failing to stop the massive bidenflation that ruined blue collar affordability with a 20% price hike over the past four years. mr. trump's own economic plan, lower tax rates, deregulation, unleashing energy production, large reductions in federal spending and dc bureaucracy. all that is profoundly counter inflationary. and it's pro growth. that's why inflation is not the issue. and yes buy the by, mr. trump posted he'll not tolerate any replacement of international dadollar on u.s. trade and

threatened tariffs on brazil rush sharks india, south africa and china. and mr. trump's tariff diplomacy is geared towards protecting america's national security and protecting america's economic security. he insists that america comes first and that's the riff. all right, let's kick this around a bit. phacolouis new york congresswoman claudia tenney and we have the fabulous north dakota senator kevin cramer and both fabulous today and miami a good mood, really good. claudia, kick us off. you're up there by canada and the weighs and means committee and by trade and so on and so on

and your thoughts and impressions on the tariff story. >> it's a national security issue and i think we need to change the behavior, we need to bring our supply chains back and tariff wills help in that. the issue of the tariffs is we have to distinguish between when you're tariffing a commodity and something like automobiles and it makes the big difference looking at for example in up state new york, we have a lot of copper fabricators and united states relies on canada and other countries for 42% or more of copper supplies and don't have the permitting and ability to produce the copper we need for our own supply. so a universal tariff going for them for example in my region and insteads of targeted adjustment going for them with good relionships and i think i understand the overall goal and i think there's a way to make them effective without actually causing massive carnage and loss of jobs and the ability to

actually put down essential commodities like copper and uses in the military and all kinds of resources going with medical supplies and there's a lot to talk about and curious to see what the gnat torr has to y since -- senator has to say since he's from the north as well. larry: i've always favored liked seline tariff and raiseys 10% baseline tariff and raising about $500 billion and use t $500 billion to cut taxes on american businesses and individuals. it's a nice swap. anyway, hear what senator kevin cramer has to say about this. >> well, first of all, larry, in your riff you id good foundation and representative tenny did a eat job from her perspective and i agree with both of you. i think the taris like canada will be short lived and the reason i say that is ty didn't

even wait for the final tally in november before they made adjustments to meet the demands that president trump put on way particularly ithe area of these types of things and doing a good job but give you numbers and canada producing 5 million barrels of oil per day and we buy 4 million and 80% of the market and i don't know if oil will be carved out and i hope it . for all the reasons that you stated, oil is tied rectly to inpolice station and obviously i hope there's more and ambassador hillman and joely and several premiers and pro trump premiers throughout canada and struggng with the whole thing and to claudis point about the relationshipwe do need, we do need to keep this a strong relationship and that's why i

think we'll come to resolution quickly with canada. larry: by the way, i think mr. trump would say that we are going to pick up our energy production a going for the location and it's short term dislocations and claudia tenney, let me ask you this, the china problem. china, looks like whatever goes wrong and he's got a piece and that's been e story now for many, many years. mr. trump is clearly making one of the, i think one of the first of my china repass. china sneaking into mexico and providing w materialfor fentanyl and other drugs and getting manufactured imexico d across the board toter united states and china investing heily in mexico an producing cheap steel and cars and china sneang that over the boaboardeand avoiding all the domestic content rules of usa.

something has to be done. mr. trump putting 10% tariff on china and i don'know tt' the last we'll see. my point is he's china inside mexico and i don't s t mecans, yoknow, having chinese abide by the usmca rules for exame. and then what are they doing about the feanyl problem coming across the southern border? >> all great, larry, china uses belt and road initiative to leverage weaker cotrs r africa a south america seeing china and flying them to chi and all the jetsn the airpt d they're making their w in d need to pupressu on mexi and we needo be able -- one ofhinst's part of the whole trump plan is to become me powerful onomically andassi growth, tax cu and we e the power housagaiand economicly a obviously going toetith defense as weland econics is al impornt and reay putting presre on meco.

at's why the tarif are going into t summer point and where they're not complying and need to be beholden to us.and we need to be the worls leader and nothing el, larra tariffs at president trump put inlace on china throh e den adminirati are still in place. larr right, they didn't takethff wel oblyave to do more. setor crerjust, you know, step back from there with e subpna annncing ackjusteeps tom atent of america f. the longerm and ort te ah t.he's sayg america eap imports and all the rest

ofhat. he's sayg icfirst, setokecrer in fact, we hav't even lkedboutanads pathic contributi to nato and membe spg of natnal securi ypoint,arry, this i whi never cebeg ed thatheibers aramazed th donald umisoingexactly what d do. i know is,t's pround. not to mtionlay, he does it so bi he to the media multiple nobohould be sprise byars. rry: you're both wderful. the way, the democrats are complely unhinged. ey'rcompletely unhinged and hes are spin 3:00 o'clock 60 degrees in bothirections

right now. madame congresswoman claudia tenney, thank you as always. kevin crameralways appreciate it. coming up, donald trump is more concerned about inflation than jay powell and the fed. how about them ape les and selling a 30 year treasury bond backed by gold. what do you think about that? we'll talk with steve forbes and ej antoni next upright here on kudlow. ♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate. can focus on people, not process. oh actually, i have a question ... keep up, nick. do you have to be sick to take a sick day? patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. agents like secret agents? secret agents i control. with your mind? you know ... i played a secret agent once. - we know. - oh gosh ... i liked it.

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>> that's a hypothetical question and the president is swept on ensuring that he effectively implements tariffs while cutting inflation and cost for the american people and all the other economic measures they can make and going for them like we saw around the first term. larry: joining us is steve forbes, editor in chief and he's been here all day working on fox media shows and ej antoni and going for the outline and stastarting with a quick thoughn this 25% tariff with little 10%

of china. >> in terms of neighbors and may get it over the weekend and it's going to be quickly resolved and that's going to come down here. governor trudeau does not want to have his government with a big fat recession on its hands and that's already entrained and with columbia, made sure that everyone knows this man is serious. mexico as we discussed want to get control of the cartels and they don't want to go the way columbia did nearly 20 years ago being a tar tell state, narco state. i think they'll try to work that out. i don't see this going for man a few days and over the weekend they're determined to get that resolved asap. larry: that's really interesting and analysis of that a. steve forbes, your reaction to the tariff story in general. >> steve is spot on come together level of the tariffs but i want to emphasize the long

term plan here is most likely to start replacing income taxes with tariffs. i mean, that's really how the government essentially funded itself during the entirety of america's golden age. trump said that he wants to get back to that and so i don't think we should have any illusions about the fact that these tariffs are simply threats in order to get a better deal for the american people. that's part of the truth absolutely. talking about the long game here, tariffs are the real deal. larry: ej, you're describing what i think is a universal baseline tariff of whatever it could be, 10%, 15 or 20. could start small and ramp up or could be big. that's a little fferent than the bilateral tariffs. >> you're right, that's a very goodies tinction and again, what we're -- good distinction and

these threats are in order to get a better deal on specific topics, a lot of which aren't economic and again, this idea that some people are floating around and all these tariffs and there'just threats that he will have plans and act on them mber one and if he can't get these noneconomic issues across the finish line and number two in the long run we'll beooking at exactly what you described that universal tariff. larry: ie to favor them. hot off the presses, oil and gas will be exemplary and they'll be at 10% also. from our produce. so i mention that had inhe riff. steve forbes, president trump's mawonteresting postings on trutsocial and goi for the and he's more worrd about the job all.hey haven done their he didn't attack them on

interest rates and went throh -- they're more worried about climate change and dei than inflation and yesrday last eveni he posted he wants to keep ng dollar and havi the worlds reserve currency and -called change and he'll go after them too. >> ihi he's ght in terms of the federal rerve not understanding the value of a currency and focusn the state of the economy and that'll take care oitse if you have the right licies in place. economy through minimum interest ras and thinking the economy doing well and will overheat and people sweating at nht maki too much money d crush prosperity because of inflation d no, it doesn't. fed has to rejigger their whole model way of looking at the world and i think emphasizing and not about the independence of the fed and the way they operate in the world and good sign they don't understand

inflation and gold price, commodity price moving up and are they paying attention to that and what's that telling them about the state of the dollar? not just currencies but in general. the whole world depreciating the currencies. larry: ej, we got currency at 3% and business investment fell throughout that report which is why we need the trump program and to steve's point about inflation or to trump's point about inflation, the so-called pce deflater has been -- the core at 2.8% since may and he hasn't changed or come down. let's quick thought, ej, on this? >> unfortunately, larry, you're ablutely right and the inflation is not trending back to 2% target and letting it go too hot for too long and all the consumption we saw making up entirety of economic growth last quarter and just fueled by debt. that's true on consumer side and

government side. we're actually adding more to government debth we are adding to gdp right now. that's the definition of unsustainable and economy that biden handed to trump. larry: business investment fell across the board and remarkable. steve forbes, last one real quick. i would like, this is fun. i'm serious. just one. one 30-year treasury bond backed by gold. >> absolutely. first step to making the dollar, team dollar as good as gold and making the world, you don't have to worry about the bricks and holding real bricks and solid dollar and solid economy. absolutely and the way to start is by having gold backed bond and baby step to getting back to real sanity and getting the fed back on track. get that dollar. send them to north korea. larry: send them to north korea. mr. trump likes the gold story and it's underrated and people don't talk about that and ej antoni. thank you so much. steve forbes sticking around and doing more service for fox media

today and coming up on the show. should president trump invade panama? why papa bush once did. know what i mean? that includes the canal. steve forbes sticking around and we're also going to add katie pavlich and joe concha on set. are so much more than clients. they're go-getters and game-changers, legacy-leavers and visionaries, healers and confidants. the goals that matter most to you matter most to us. helping you achieve them is what we do best. with personal financial advice from an advisor you can trust, and goal-based investing and solutions. it's no wonder we have a 4.9 out of 5 client satisfaction rating. ameriprise financial. advice worth talking about.

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panama and f news what are you see something >> larry, the fight is all about that and this one from atlantic into the pacific and shaving about two weeks off the trip and going around south america and that's because the panama canal and given to panama and going for

them and took full control of 20 years later and there hasn't been a controversy for the past 25 years well there is now. secretary of state and going for them talking about who is controlling the panama canal and the president of panama going to say we're not going to talk about it and it's not a subject for discussion. a real battle over who controls this waterway both strategy and i can very important to the u.s. economy. larry. larry: they're not going to talk about, sure. thank you, buddy. appreciate it. for more on that, bring back the great steve forbes and katie pavlich and joe concha and author of the greatest come back ever. i'm going to katie. this is a forbes thing but i'm going to katie on it. papa bush took out -- what was

his name, manual norriega in 19 # 9 because he was interacting up and a dictator and a drug lord and bush went in and he was gone in about 23 minutes and 14 seconds never to be heard from again. so, i wouldn't mind seeing something like that right now. >> yeah, it's laughable that the panama president is saying they're not going to talk about it because they will. they're obligated to talk about it because of the treaties they signed in the united states in the 1970s about the exact issue. trump is very concerned about ewe trillionty of the canal and talking -- neutrality of the panama canal and china talking down the signs and people living or a family there, and china trying to buy up the real estate on the canal in addition to the ports dealing with the shipping. if you look at treaties they signed, it says specifically that the united states reserves the right to invoke military

force should the neutrality be threatened. larry: i didn't know that. the treaty says that? >> yeah, the treaty says that. doesn't say it has to be turned over. doesn't say anyone can take over. says should the neutrality be threatened, united states reservings the right to invoke military force to ensure neutrality stays. he's on strong footing here when it comes to it. l i don't want to sound like a warlock but gee whiz. i have a chill down my spine. after all, this was -- it's a little unfair and papa bush wanted this finest moment and it sure straightened out the panama story and straighten it out again. >> can i rewind for a second. are you saying we should storm the beaches of panama? larry: the locks of the canal. >> not advocating for military force. >> that's the right we have. larry: never negate katie

pavlich. never ever. that's my experience below these many years. >> it's a bylaw in the building. this is katie pavlich. >> that's the treaty. >> it's the same thing with greenland and all the raw minerals and 95% of greenlands and exports are going by the danish government and here's whattive to do and for $57 million we don't call the residents off on a million each. this is yours and oh, by the way, enrich yourself with all the oil and gas and minerals we're going to mine here if you -- larry: percentage. it's like alaska by the way. >> it's a million and going for that. larry: you're a foreign policy plan. >> on panama, there's no military action and the president is pro american and

got to play to the base, democracy. what's going to happen is the chinese are going to be forced out both at other ends of the canal, real estate going to be great, great bargains coming up, land sales. land sales and as for greenland, if you want greenland, have them go independent and then make them the 51st state. that way they get all the federal aid and the democrats should like it because they get an extra member of the house of representatives and couple of senators but that way you have a bigger land mass than any of the u.s. purchases, louisiana purr which is, alaska purchase and it's the biggest shift appealing to trump and the idea of getting an extra senator or two in the senate and make a mistake. that way they know we'll defend them and we're obligated to defend them and we're going to defend alaska. larry: i wouldn't mind starting

with panama. i love what katie has to say. speaking of katie, good week for trump's noms and it's a pretty bad week for democrats and democrats in my view are unhinged and freaking out and it's -- their heads are spinning 360 one way and then they spin back 360. like an old cartoon figure and don't know what to do and can just talk about j6 and going high on the election and sexual allegations. i mean, pretty much the trump with attacks against the president and look at the cabinet that joe biden put together and compare the nominees that donald trump wants and have people saying this person is not qualified, it's very easy to compare and contrast the differences between the qualifications of previous cabinet and current one. the current one is much better and not to mention the democrats are pretty salty there's two

former democrats that are now up to be in major positions. larry: i think that bothers them. >> i think it bothers them the most and saw the grillings of rfk jr. and tulsi gabbard come to heads of democrats and see them as traitors to their cause not just on the campaign trail but working for the president. larry: joe concha, unhinged democrats and here's trump. he's pulling 50+. his popularity approval, 50+. >> which he's never been at. larry: right. it's really big stuff. democrats are in the mid to low 30s or some such thing like that. the tide has turned and all the noms get through and i don't know about tulsi gabbard, kash patel will get through. they couldn't lay a glove on him, and i think they were grinding their teeth because they couldn't lay a glove on him. >> he was the most impressive since we've seen since pete hegseth, i think. larry: yes. yes. >> he was seen as most vulnerable target. to your point, earlier,

quinnipiac had a poll out earlier this week, 31% approval for democrats right now. it's the lowest ever since quinnipiac was asking the question and republicans are at highest approval ever. overall, there was a conference yesterday hosted by msnbc in washington. i swear to god. jonathan asked this question, do you believe kamala harris lost because of racism and misogyny? every single candidate raised their hand. it's all they had at this point because they can't talk policy because they're on the wrong side of every coming to inflation border, crime, war, censorship. you name it, democrat party spoke and they don't have a leader. >> seen as uncool. >> uncool. larry: they are. take a look at them. steve forbes, we've seen cycles before, why can't the democrats come out and for example, there's been in history tax cutting democrats or you wrote a book on one. >> i did indeed. larry: deregulating democrats. deregulating democrats. jimmy carter for all the flaws

he was a deregulator. >> zero based budgets. larry: capital gains taxes. i don't know what's stepping the democrats without much time. >> they're afraid of far left still and afraid of primaries and need one or two election cycles before they back them up on the play book. it's dead. >> i'm going for this. they're counting on things going to go wrong and do well in the midterms and get control of the house and senate reporter: going for 2026 and in 2028, they'll take it all back. that's what they're counting on and once that fantasy goes by the board and we do well in the midterms and that's going to shock them. >> good luck taking on jd vance in 2028. larry: i'm telling you. i think the democrats are just pathetic. i mean, i know that sounds partisan. >> that's been beaten over the head a few times. larry: maybe they haven't hit

bottom. >> ryan higgins close to the bottom. very close to the bottom. maybe they'll get there. larry: it's a 12 step program. joe concha, katie pavlich and steve forbes, thank you very much. we'll ask former dhs secretary chad wolf, next up. i'm kudlow, thank you, kids. appreciate it.

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lyric all right, issue here is defense secretary pete hegseth says military force is on the table with respect to problems on mexico and the cartels. joining us now, former dhs secretary chad wolf, executive director at afpi, chad, give me what's on the top of your head. pete hegseth wanting to put it on the table and talk about bombing them or bombing the drug factories. what do you know about this? >> look, i think the sequoyah tear is right and all options on the table and we need to stop admiring the problem and the problem being the cartels and influence in their reach across the border and going to get serious with them and designation from the foreign terrorist organization and designation that the president talked about and issued military

force against him and pushing the government of mexico to do more against the cartels and if they can't or won't, then i think it's incumbent. larry: chad, that's part of the reason for the tariffs that were announced today and president sheinbaum, do they go after the cartels or they intimidated by the cartels and do nothing. are they part of the cartels? who's running mexico anyway? >> that's a great question, larry. the government of mexico and current leadership there, i think they are definitely limited in what they can do in their reach; right. whether that's because they have influence or they just are outmatched by the cartels. they have a limitations on what they can do, but even though they have limitations, they can do more than what they're doing today. they can invite the u.s. in to help them combat cartels and

territory along their northern border and as united states we can't have that and allow that in the criminallalty and there needs to be more action and needs to be more focus on this issue. president trump and secretary hegseth and others are leaning into this. larry: 20 seconds, chad, why doesn't our military take out the drug factories? they're just drug factories. why not take them out. >> we have the capabilities overseas and not routinely but precipitate and we did it in columbia in the 80s and there we had a willing partner and wanted to do it and need mexico to be that same partner. larry: great stuff, chad wolf, afpi. former homeland security. thank you, buddy. i'll be right back with my last word. ♪

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larry: well, as katie pavlich said on the panama canal business, the treaty says no foreign interference, and if this is foreign interference, then the parties can take action a uniharmly. think about that -- unilaterally. liz macdonald's going to to take some action -- elizabeth: larry, thank you so much. just a quick point on that, i've been talking to d.c. sources. there is concern that china's military is at those two bookended seaports outside the pa