larry: hello, folks. welcome to kudlow, i'm lar ry kudlow. all right president trump is slapped new 10% tariff on china with other things, stephen miller white house senior policy adviser will weigh in. president trump meeting with president with -- prime minister netanyahu at white house. liz peek and taylor rigs

will be here to talk about i don't know life, liberty and pursuit of happiness, first up our own edward lawrence, live at white house. you got something i'm not sure what you got something. reporter: we're waiting for prime minister of israel, benjamin netanyahu, he is the driveway is blocked off, procession waiting on him, he will be first world leader to visit the white house, president trump in his second term, two men will talk about the hostages that were released, and campaign against hamas and talk about making sure there could be peace in middle east. this visit is as trump administration is sending arms that are sitting in north carolina israel purchased, and bi biden administration sat on and refused to release, knaba mike waltz believes that u.s. can help move things forward. >> we need to get back to where we were in president trump's first term. the abraham accords, and

next round. and you know the on going conversations that special envoy steve witkoff had with saudis. reporter: administration officials say that presidencies gaza strip as a ddemolition site, witkoff said countless unexploded munitions are still there and damaged buildings that make it unliveable, it might be 10 to 15 years to rebuild, if a cease-fire can hold president trump believes that life needs to be changed for palestinians. >> it unsafe and unsanitary, not a place -- they have no alternative but to go back, if we gave them one, living in a beautiful open place, with some you know nice quarters, nice housing, of sorts, and we have the money and middle east to build it. reporter: special envoy

witkoff said they are in phase 2 of that ceasefire deal they are negotiating about next release of hostages. larry. larry: all right, edward lawrence, i appreciate it very much. let's see next up, update on trump's tariff diplomacy, fox news peter doocy is live in the briefs room, what's cooking. reporter: tell me. and all officials that we're talking to here at house tell us that tariffs are about keeping fentanyl out of the country. but we're hearing from one traded vi ad advisor that tariffs are part of a larger transformation that could be coming. >> if trump succeeds like he want to we'll shift american economy from one over reliant on income taxes and revenue service that is reliant on tariff revenues as well andii external

revenue service. reporter: canada and mexico tariffs have been paused. if it works, tariffs will stay on pause, if not we're back here in 29 days, none of that addresses chinese component, they have levied retaliatory tear on u.s., president trump is not that worried. >> it is the president's responsibility to protect american lives, that is why he imminented 10% tariff on china. now president xi reached out the to 1350eb speak about it, we'll see how that call goes. reporter: and reasons that we are reporting from briefing room this afternoon, instead of outside in the lawn, any minute, prime minister netanyahu will be here, we'll go back to hear what he and president have to have a, we is can bring it to you after. larry: appreciate it. can i ask you something from

your own skills. is this business with mexico and canada the trade -- is it a trade war? it is a drug war? it a border thing? how do you read it? reporter: it is a border thing. really. i think that the officials here are conscious of the markets, they did not want it to come across as trade war, fentanyl is a big component. it is about the border. because, once the canadians and mexicans assured president trump and his team that they they will follow through on previously stated plans to beef up the personnel and screening processes and aircraft that were patrolling on the border then the tariffs he signed were paused. it is a border thing more than anything. larry: all right peter doocy great stuff we would love to hear you from netanyahu meeting. if you could make it. so, folks, now, don't let china slip away, president trump, that is the subject

of the riff. we know that president trump has slapped new 10% tariff on china. and for a bunch of rei reerreason i hope he does not relent, at a p a pressure he said this. >> president xi any update on what you speak with him. >> i will speak to him at the appropriate time, i'm in no rush. larry: i love that, i'm in no rush. good for mr. trump. in china's continuous unfair trading practicesser with learning they never enforced hard fought china phase one trade deal negotiated by president trump in his first term. first enforced it someone to china trade team then, i can tell you dealing with china is like pleading water from a stone. key points where china's theft and intellectual

property and force to transfer of technology it, with few extensions, they do not lit american-owned companies operate in china, they did not make purchases of farm or manufacturing commodities they promised. and i fear renegotiating that will be a exercise in futility. and that brings me back to mr. trump's 10% tear itariff on china. one, very brilliant part of that deal of that tariff is the so-called de-- 800 dollar lit on duty-free goods coming to u.s. that has exploded exponentially in recent years, with cheap chinese retail store goods coming in to the u.s., and putting out over 7,000 mom and pop retail stores here, out of

business. in to bankruptcy, and expected 15 thousand would close this year, according to core site research, if this exemption is continued. i hope nothing like this is ever permitted again. wait this story gets worse because 800 dollar or less packages are not searched or investigated were at all when they come in to customs in the u.s., the chinese have used it to ship fentanyl related chemicals and other precursor parts. they ship them directly into this country, through the so-called 800 dollar demini mus exemption, bad enough that china bru

bankrupted mom and pop stores it is worse they are killing our kids that is the riff. >> joining me now taylor riggs on fabulous fox business and liz peek. fox news ex a fabulous fox news contributor. we have to include everyone in that. just to point out. this 800 dollar exception. too small to be examined, to too small to pay duties but not too small to put our mom and pop retailers out of business and here is the killer. not too small to contain component parts of fentanyl. we talk about how chinese put precursor parts to mexico. and i suppose canada, they put them in here too directly, some people dp gift mated there was -- guesstimated there was enough to make 3 million fentanyl tablets.

>> this is horrifying. you know anyone who pushing back on any of these tariffs that are trying to seal our rder against all this importing the fentanyl in particular really have to come to grips with fact that 70,000 people or more have died two year agos in fiscal 2023 from fentanyl poisoning that is re than car crashes this is horrifying to me that everyone just looked the other way. everyone in america knows something whose kid or brother or father or someone died of fentanyl, only reason they go down we have better anecdotes fort, not -- to your point not because the chinese cracked down on the export of fentanyl, that was part of that phase one deal. which size you point out never came to being, it still the, and i think that there is some talk about it buying renewed this should be number one. this can be number one. and to your point the

millions of packages come in every day. they will be randomly selected that is increaseddiblely important. larry: by the by, taylor, it sticks in my craw, we sweated, lighthizer was leader of group, great trade expert. mnuchin and wilbur ross and myself, and others, we went here a there, always back and forth. with staff, i was sitting as were -- most of us, the g20 meeting in argentina id to be. 2019, i am almost certain. and both sides big banquet table, chinese and united states, trump sitting across from se xi jinping first

thing trump asked president xi was to stop fentanyl provide death penalty for people in china involved in making it. and frank without batting an eye, xi said yes. he said yes. okay. and we all thought everyone would live happily ever after they lied. >> shocker. larry: that is what they to. he said all rigmarole like that whole phase one trade deal was rigmarole, i hope that president trump does not have you know particularly pleasant conversations with xi jinping and goes back on his deal or that 10% tariff or ending exception on 800 dollars. and killing our kids, you can't be tough enoh on china. >> stuff on -- quality is crap. that aside, i agree with

you, when it comes to trade with china. it is not surprising they lie, they are not our friend. their goal in life to do take us down they want to be number one, we're number one economy, they are close at number two, it was 2019 when i sat there and projects were china would takeover as world number one economy by 2025. guess what we're here, they ha not done it yet, it could be another 5 to 10 years, they are close, they like mexico will claim it is our problem. our children are those who addicted our fault. how dare they say that. we had a good analyst on our program today, said, if you take heroin you overdose on -- you know you are taking heroin. that say pack you go down, fentanyl is different, sometimes it is laced in a pill you think -- >> it is hidden. >> you think it is aderall,

you are not making the choice that i want to take fentanyl that to me, i don't know if this a bigge big deal that st struck he today, you have so mean addicted who don't want to be this is a drug war but i'm almost certain with china, you would know more, it is also a trade war issue. the data today showed that we can'tsume double what we produce -- consume double what we produce. china is an advances manufacturer and we're a consumer. larry: their economy is in lousy shape. >> that is the good news. larry: it is in lousy shape, one reason it is, liz, become closed and more closed in. the years of free market reforms launched by ping opened by nixon and kiss kissinger that ended 12 or 15 years ago, since then

government sector has been enlarged and credit going to government owned sponsored corporations, and the entrepreneurs have been closed down, they have done starved out for credit, some thrownn jail. they took over hong kong and r repressed that, you have a story of a people say, authority -- you can't trust them, taylor said you cannot trust them, i know you are not kean on trade tariffs with mexico and canada, it has turned out well so far we will hear from steve milner a little bit. -- steve miller in a little bit, sometimes you have to put your foot down, i would put it down in china as hard as i could. >> china has problem this is time to go after them. 10 years ago. harder to do that they are growing at maybe 5%, maybe not even 5%, they have a

demographic cliff coming up, there is a problem for them, ttheir working anxiety age pope p population age is declining, they have stepped on entrepreneurs, that in china that dared to make money, because of that reform that threatened xi jinping, that threatened ccp . they had to get rid of that class of people. they have been disappeared. it is unbelievable. larry: disappeared. there is no -- >> they disappeared. larry: not one iota of free speech in china. >> not at all. larry: not one. >> not even remote. and that is why i'm proud of trump for going after them again we learned, we we didn't know but we know bidens did nothing to implement phase one deal.

we'll have moto move, liz peek and tra taylor rigs, taylor and dagen mcdowell and paul ryan and brian brenberg. >> coming up, senate and house republicans need to crank up the tax cuts, we'll talk with chair of house ways and means committee, jason smith. i'll kudlow thank you, ladies. join thousands of advertisers who have built their businesses, reaching america's most influential audience. need creative? we can help. fox news media impact starts here. advertise with us today. so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants?

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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. larry: welcome back to show, chair of house, ways and means com committee, mr. jason smith of great state of missouri, mr. trump is serious with the tariffs that will be part of his national security arsenal, and his economic arsenal and trade arsenal. my thought simplistically if we will go with tariff route time to cut taxes we should get tax cuts in. so it almost like a matchbook, raise tariffs on that party but use revenues

to cut taxes for american businesses and consumers. >> you know, i agree, it is when luke at these economic decisions, it needs to go hand in glove with tariff increases with the tax cuts, that is why i've been pushing for my colleagues to not allow themselves to put their agenda in front of the president's agenda in delivering this economic relief for american people. larry: so what to we hear on one big beautiful bill business? >> you know, we're in process, waiting on budget of committee to pass a budget resolution, that is all process issues, american people, president does not want to talk process, they want to talk policy, and get it delivered to his desk that is what congress needs to do, it is very easy, the president was specific, he wanted p permanent see for

his. and provide tax relief for seniors on social media -- social security and tax relief on overtime pay. it is very simple, i would encourage my colleagues in u.s. senate, just to look at what president campaigned on and 77 million people supported. larry: a good point, we would love the blue collar boom this year not wait until next year. or play russian row roulette with tax cuts. we are ou out long islanders. -- outly ires, is there a chance getting back to 15% capital gains tax. >> everything depends on that we get from budget committee, that is why the ways and means committee

cannot move forward on tax policy yet, eliminating death tax, i have pushed for my entire time in congress, it does not make sense, a family farm, would lose half. upon death, you should not make death a taxable event, people work their entire life, and pay taxes their entire life, why should they be taxed when they are dead. larry: a head in ranch news cycles budget committee had to put off a vote, i see 2 to2 to 3 tril i don't trillion over 10 years is that realistic. >> what you thread this needle we could take cuts most that has ever been cut, in history of congress is 4 return billion. we could -- 400 billion, we

can beat that. i don't know what the number overall, whether a half trillion or a str trillion, there needs to be cuts. we also need to pay attention to revenues that are coming from president's tariffs, what he did on saturday, would have brought in more than 1.2 trillion dollars, when you look at loophole, on de minimis with china that will have a huge impact with 3 to 5 million packages that come in every day with no tariff attached. larry: how much is it work the de minimis. >> you look at everything he did 1.2 trillion. larry: how much for de minimis alone. 800 g dollar. >> hard, we have not calculations yet. larry: a lot of money. >> it will be huge, you have three to five million packages every day they pay zero tariffs that includes

on president's 301 chinese tariffs. larry: we have been talking about it. now, it will make it ways, there is fentanyl stuff in those little packages that get by the customs, they are not tariffing it unbelievable. that story. jason smith thank you for your time, good luck on the package appreciate it. >> coming up. president trump trade policy, we'll talk to white house deputy chief of staff for policy mr. steve miller. please don't miss or first interview with treasury secretary scott bessent, since he was confirmed, he will do that tomorrow at 4:00 eastern, live from washington, d.c. treasury man scott bessent will join me on set, washington bureau, i'm kudlow be right back.

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larry: look at this special edition, joining us new lee carter. and karoline downey. i want to end the education department. mr. trump wants to end it. >>y i -- so true, since biden administration it has been corrupted. here is the problem. i think fundamentally, because so much of department of education money foes to the teachers union there is a cabal between the teacher union and this department, unless you destroy, that department will always be a problem. this comes on the tail of new academic performance outcomes, that we just got,

national report card, lateralture, ready prefish read -- they still expect more handouts some money to be sent, there is no other product in market that looks like this, if you fail r yoroutinely you don't get rewarded for it. it has been caught, peddling radical curriculum. in k-12 schools and hostile to parents. larry: lee carter, i have a dream, treatment is education department is skinnied down to barest circumstances that includes promoting school choice, and loans, they cannot be canceled, according to supreme court, they are moved out of the education

department to treasury and federal financing bank who will work them out overtime and make money for taxpayers in education department, the bureaucrats have never seen an income statement or k credit analysis, they don't know what they are doe, and let congress figure out a new education department. a down sized department. 245 has good values, promotes school choice, what would folks think, you are an ace pollster. >> preach it. and talk about it. if they say we'll disrupt or end department of education as we know it people will be scared. there is nothing more popular in country than children, when you talk w about children, everyone wants them to get ahead, but we're failure our nation's children, we look at globally, education we're failing our children.

you talk about blowing it up, you will get people upset, if you talk about improving it up to modern standards, all in. larry: reading and writing and math, get rid of d.e.i. stop telling schools what to do, school board parents what to do. stststop making lones that should not have been made, you to it for the kids. school choice is greatest pro children movement. >> data shows that parents are unhappy with the school system. that is government run but they are happy with the teachers, you have to square that issue. some of them have loyalties to an individual classroom. but they know that this system this apparatus is failing their children, the test scores come back, negative. it is terrible. >> some values are

negative. i have to jump out. mr. 34 miller is waiting, keep treating. >> lee carter you are the best, caroline downey. joining me steve miller house deputy chief of policy, how are you, i'm glad to see you come back on. let's talk about trade and tariffs and the rest. with respect to canada and mexico is if it a trade war, a drug war or a border problem. help me define it. i'm supporting what you are doing, i'm trying to figure out what it may be. >> first, great to be back on on with you my friend, i look forward to having many conversations with you. often and frequent as you want. larry: thank you. >> the trade issue with

canada and mexico is long running one. you are familiar with all of barriers, including nontariff, in canada, you aware of systemic issues in terms of unfair trade policies with mexico, c canada has' substitute vat, mexico has a vat, u.s. manufacturers already at a huge disadvantage because of the i'm of the imbalance in trade. the a security based order about flow of fentanyl to u.s. and carnells and deadly truths and cr -- deadly drugs and crime from canada and mexico, hundreds of thousands of americans died because of fentanyl that comes flew both borders. they have pledged historic

security packages on northern and southern border to crackdown on fentanyl and cartels, canada's commitment to declare cartels to be a foreign terrorist organization is a see change how we treat them. mexico's commitment to mill militarize their own border. is a massive commitment. our defense department of defense is in touch with mexico, to end the flow of goods, and persons to u.s. that has never happened before in american history. these are see changes, they are mass of restructuring of western hemisphere security that president trump achieved, no american president has achieved prior in yes, agreed.

>> at end of 30 days, will there be any metrics or numerical targets in those areas you just talked about? what happens at end of next month? are there things we could key to. numbers, metrics, you tell me steve miller. >> yes. first most important is hitting numbers, canada pledged 10,000 border agencies and mexico 10,000 soldiers, on the southern norther, that not their commitment to mobilization but a specific commitment to have 10,000 troops on their border with the united states they are two metrics that are measurable and verifiable, c canada has to follow through to label cartels as terrorist organizations, canada made a spending commitment of

resourcing pouring into border, intelligence sharing commit and military cooperation commitment, they can be verified. as can mexico's progress in degrading cartels and fentanyl labs and we can measure numbers, how much illegal aliens physically cross the southern border, they are hard metrics and deliverables we have v verify. we'll see if they live up to them, there is a different process that was set to motion to day one of trump presidency to fix our trade and manufacturing policies to bring jobs and growth back to united states, president trump has been clear this is a top priority. larry: we had jas jason smith on aways and means chair, let's not cut link between tariffs and tax cuts

at home. for example the 25% tariff according to smith, i did not know it, on canada and mexico could have been worth might have been worth, over a trillion they could have contributed to tax cuts for large and small businesses and families, i was weighing in, steven smith, universal tariff idea about 10 to 15%% that could yield 3 our 500 billion dollars, i have talked to the president about this. it could be used. >> universal teartive. tariff. larry: that could be used for tax cuts. >> weighing in on that,. i don't want st want to be misunderstood there is a memorandum president trump issued his first day in office, america first trade policy, directed treasury,

commerce, u.s. tr to analyze our trade imbalance in the world, that would then form the legal basis for the kind of tariff policy that you are talking about, based on finding of that review, as you mentioned. that could lead to trillions of revenue collect, in addition to what process we end up with c canada and mexico, they are included any global review, president's long-term -- short-term goal but long-term benefit to shift our revenue collection away from corporate and income tax, to import collected. that is a system that founding father set up, a disappointed in my libertarian friends when they forget this our founding fathers did not want an income tax or intrusive internal revenue service crimes and crawling over aspect of our lives, they w wanted a smaller

lean every government, funded by simple collection at border, president trump falling on shoulders of men who founded this country. larry: i like it. sometimes you forget about it. >> never forget about tax cuts. >> last point, we were talking about this. if we don't abolish education department, can we get rid of most of it? get were education department for good values and school choice, and student loans, instead of canceling get them to treasury department let them work it out. let's have good values and skinny down the education department, can we do that? >> president -- president's platform to be clear, is to

send education back to the states. a smaller learn didner department is better than a bloated department. this is to end the federal department of education and move to the states. but gain, a slimmer, leaner, didn department of education is better than a big bloated instock drinking indoctrining a center in dc, he wants sc schools to be family controlled. he wants parents, and local communities to control how their kids are raised and educated. >> supply, mr. stephen

miller. best to katie and our kids. >> thank you. larry: hang on. we'll take a quick break, then talk to one of our favorites oklahoma senator markwayne mullin when kudlow returns. ♪ empower ♪ so handsome. oh, i can't buy this. woah, woah. your empower investment account has grown. you earned it, so... (♪) get good at money. so you can be a little bad. empower. (man) what if all i do for my type 2 diabetes isn't enough? or what if... (vo) once-weekly mounjaro could help? mounjaro helps your body regulate blood sugar. and can help you eat less food. plus 3 out of 4 people reached an a1c of less than 7%. and people lost up to 25 pounds.

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larry: welcome back. oak senator markwayne mullin. we appreciate it. good news on noms, tulsi gabbard reported out of committee, robert f. kennedy out of committee, and my friend susan collins voted for ac tulsi gabbard. >> susan did her due diligence and tulsi did a good job talking with her, proud of her. sizsusan is in a tough state in maryland. she getting a hard time and makes har votes. i would rather have her in office than a democrat from maryland. great to see tulsi gabbard get out with anon -- arkunanimous republican

support, the same with robert f. kennedy and with kash patel. we have to let clock run on people that are in front of them, there is a 30 hour debate time. and i believe that time will work out where we could vote on tulsi gabbard and bobby by the end of next week. >> that would be great. that being a republican from maine, the great state of maine. >> did i say maryland, sorry, maine. larry: no, i'm not contradicts it is a easy mistake, i have known senator collins for many years, i count her as a friend whether we agree or disagree, she does what she does, she has as much integrity as anyone i know. >> i would agree with that, i mess up maryland and maine i dlike january and june for me, i will agree, she is honest, as tomorrow and as today, she -- what she says you can trust.

and she is my chairwoman o onapprops, we get along i love talking with her, she brings a different perspective, i wish some people would realize a republican from oklahoma is different from republican from maine. larry: just sounds like president trump will get his noms, really -- >> he is. larry: it started with pete hegseth, and it just moved down the line. i know there are ups and downs, it seems that end of day, he was guy elected. he was the guy with mandate for change that is putting up his cabinet was on theo officers who he wants. >> larry, can i add, not just putting them forward, he has come to heel, met with senators -- to the hill, and met with senators and building a coalition,

telling people we need everyone there, we has led from the front why we is such a great leader and we're blessed to have him as president of united states right now. larry: maximum pressure on iran. we have prime minister netanyahu in dc, maximum pressure, economy sanctions. stop the oil sales, stop china from buying oil and breaking the sanctions, and how about nuclear threats senator markwayne mullin. >> well, i think right now they already have some form of nuclear ability, but we don't know what deliver mechanism they have yet, what president trump has didn't he will make iran choose if they continue to fund this nuclear program, that we can never allow them to have, you can imagine leading the world terrorist organization to have nuclear

power it would destabilize the whole region, president the hard sanctions like first in office, causing the populous vote to go against the current regime, they will be able to make a decision can do we need our people -- do we feed our people or our own agenda, i believe this pressure will work, we're not looking for a fight or a war, we're looking for is peace, president trump believes in peace through strength, you have is showing strength, and also standing with our straggest strongest ally iz israel. larry: terrific stuff, senator markwayne mullin thank you so much, we'll be right back with my last word.

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