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hello, folks. welcome to kudlow, i'm larry kudlow president trump is not budging, elon musk and doge is here to stay, we have more with john yoo and senators joni ernst and marsha blackburn. and trump makes a pivot on tariffs, reciprocity. art laffer, congresswoman claudia tenney weighing in and trump's approval rating soars to historic highs we talk with rich lowry and david webb on set. but first. we go to fox news jacqui heinrich live at the white house. reporter: yes president trump said on air force one today he would be announcing a 25% tariff on all steel and aluminum imports and this we're, reciprocal tariffs to any country that charges the u.s., sounds like an 11th hour deal, like with canada and mexico, might not stave it off, he

said to our bret baier ahead of super bowl, those deals are not really working out, he might revise them too. >> you announced tariffs on canada and mexico, you immediately got action from both on border security. >> i dod a lot. >> is that good enough. >> no. >> something has to happen. it is not sustainable i'm changing it. reporter: some changes are hitting roadblocks, federal judge blocking elon musk and doge from accessing records, elon musk called that decision insane, vice president jd vance went far as to suggest that judges can't control the executive branch. vance did couch his statement, in referring to the executive branch's legitimate power, president was asked about it last night. >> tremendous fraud and

waste and abuse. and theft by the way. and the day you are not allows to look for theft and fraud, et cetera, then we don't have much of a country, no judge should be -- should be allowed to make that a decision. that is a disgrace. reporter: president not suggests that judge's order should be defied. elon musk is left wondering whether op ins options are availablable this afternoon rhode island judge found administration defying a court order, continuing to block certain federal funding from going out the door despite a temporary restraining order. however, that judge did not go so far as to find the administration in con in contempt just get that funding out the door. larry: jacqui heinrich thank you.

>> elon musk is here to stay. democrats are going to have to deal with it that is the subject of the riff. so donald trump likes elon musk. and trusts elon musk. president trump supports elon musk efficiency audit that has already uncovered fraud in numerous areas inside of agencies, spending money on items that congress never mandated. he will include education department and the pentagon. and there may be much more to come. we'll have former justice department official john yoo talk about this whole subject. now, here is how i put it this morning on out numbered. >> the elon musk exercise is about systems and efficiency and delivery, it is not changes policies on the fly.

hence there is nothing wrong with an audit, they are finding judges, okay, who are all slightly to the left of whoopi. there is nothing constitutional, nothing policy about it. larry: so, attorney general pam bondi will move to try to vacate various restraining orders put on many of these president trump actions, including elon musk payment systems reviews. interestingly, none of the left wing judges have used case law so far. justice department appeals may have to go all the way to the supreme court. if they do, hopefully the supremes will act expeditiously. additionally, elon musk and doge staff are federal government employees. they have been onboarded and received ethicking trains and records training, they

have got up interim cl clearance, the idea that career employees can have access to sensitive information, but political appointees should not, is preposterous on its face. there is nothing constitutional about any of this stuff. nothing up constitutional. then comes a bunch of former democratic treasury secretaries. oh, writing in "new york times," efficiency audits in treasury department might somehow impede u.s. financial commitments. even reaching into the creditworthiness of treasury bonds, this is democratic hogwash, has scott bessent found, controls for spending of previous biden administration were unacceptable. they were spending money out the door without knowing where the money was really

going. end quote. last week scott bessent told me on this show, in washington d.c., quote, they are moving a lot of people's cheese here in the capitol. when you hear this squawking, and some status quo interest is not happy. end of riff. all right. joining me now, john yoo, former deputy assistance attorney general, and a berkeley law professor, john yoo welcome back. i heard you commenting on my commenting, i could not resist, i think i got it right, i think i got the story right, you tell me john yoo. >> larry, i was complimenting you for stealing best ideas from me. [ laughter ] because the way you describe it, it is right. every american we're go to go through process of paying our taxes, we open our

books, show them to the our the accountant. musk is in position of outside expert that president trump, went his presidential authorize authority he says take a look at books, musk does not have power to stop the spending or close departments, all he is doing is making recommendations to president, president trump is the one and his cabinet carry it out. i think a lot of americans, our democratic friends are shocked to see after 4 years of a compose presidency, energetic executive at work that founders talked about. trump can't be forced by congress to spend money unco unconstitutionaly, he can't be forced by congress to use money to interfere with national security and foreign policy goals. and i think that the

president has a right to pause spending as he has and say, i could find ways to spend taxpayers dollars more efficiently, if congress built a bridge for a billion dollars, and trump says i could build it for 500 million, i think that constitution gives that president that kind of discretion. larry: john yoo on that last point, are you referring to em impoundment authority, mr. trump and russ vought, talk about it they want you to spend a billion on something but you can do it cheaper for 500 million for example that is okay, it is impoundment authority is is not. >> it is right, larry, i heard you are interested in this too while you were in the administration. >> i still am.

>> you went through the reporter went through all challenges in court, presidents from thomas jefferson on have exercised some kind of impoundment authority, supreme court never issued a ruling on that impoundment act is unconstitutional. i think that trump, he is doing now, i think he is entitled to as president, to say i can create a sit of circumstances to challenge that impoundment act we'll take the case to supreme court, not defying the supreme court, he is trying to say i want my chance to persuade the supreme court to change their mind, if they keep -- they say that is is constitutional i will live with it i have the right to try. to get this supreme court to recognize the views and practices of presidents for over 200 years. >> hope he does.

i am quite certainly will. your logic is very interesting to me, come back to other matter, our fox legal analyst who was served in justice department, she is arguing a 4 freight great -- a great point, elon musk and doge group are government employees. and then she makes a second point, you have the people saying they are unconstitutional that is nonsense, th the second point, you can't have a situation where let's say a career employee, can see information, payment systems i'm thinking, you know where they start, and go and how they get there. but political appointees can. on the face of it that is nonsense. >> i agree, not just nonsense, i think it is ununconstitutional on part of congress to try to

prevent president from running the government effectively, i think that courts are outside their proper scope if they start micromanaging the executive branch. suppose congress passed a law saying that generals should come up with the plansplans and they end to the have to show to president, president is not allowed to get outside advice. that is ridiculous. president is the only constitutional officer under article ii of the constitution, everyone in the executive branch works for him, if congress is allowed to say people can't show notch, and plans as president decides that is congress micro managing the executive branch that violates reason that hamilton said we have one president. one person in charge, we have energy in the government. larry: i love that energy thing, i was there near hamilton when he said it john yoo thank you, we

appreciate your double duty today. >> thank you, larry. larry: folks, not so much switching gears but talk a little bit. bring in claudia tenney, friend and art laffer. claudia, give you quick shot. i want to talk about tariffs, with you and art. thank you both. we appreciate it. you heard john yoo, who is a very good constitutional lawyer, a former senior justice department aide, rebutting nonsense about unconstitutional this and that. and mr. trump can't have audits of his own agencies, he can't find out and weed out fraud and stuff. you heard john yoo, what do you think about this? what are your colleagues thinking about it? >> i thought it was a wonderful discussion here, is right, i was a constitutional lawyer, i tried cases and brought

cases in federal court. just on fun side i'm glad you stood next to hamilton you didn't get shot, and we still have larry kudlow. larry: i ducked. [laughter] touche. arthur, you know mr. trump has full confidence in elon musk, he will let elon roam far and wide, it is legal and constitutional, they will do a lot of government trimming and it is just what the doctor ordered, in economic terms if you put is in supply side framework don't you think it is pro growth, the government has gotten out of hand, and spending is going to place its should never have gone to in the first place. >> i agree, impoundment of funds makes sending, i was in nixon white house a million years ago you know

they were put in after world war ii after the germany and japan surrendered. truman impounded the funds. and that was a papp appropriate use, today what doge and elon musk are doing what every government department and agency should on its own. finding efficiencies, and waste, getting rid of waste abuse and fraud, when you to that, you not only accelerate growth, you know -- increase quality of growth, it is a win across board, i don't know why anyone would want more waste, more fraud and more abuse. and prohibition on people finds those misuse of funds. larry: now switching gears, an important announcement, double. president trump saying he is not using a universal tariff. so-called ring around the

collar he will use reciprocal tariffs. that is if you tax me i'll have to tax you. but if you lower your tack on me, i will lower my taxies on you, i say that say path to free trade, hen -- he wants to renew his 25 his tariffs on imports of steel and aluminum, claudia, you were on ways and means committee, what do you make. >> interesting point, reciprocal tariffs. i like that ideal most sounds like a free trade agreement, i think that tariffs have shown that we increase u.s. production and we spring our economy -- bring our economy back with steel and aluminum, only thing that i talked about last time, i am worried about copper fabricators

ability to get them up to speed in time but sometimes when you deal with commodity and small businesses and legacy businesses, where i'm in upstate new york we have thousands of jobs people producing and fabricating copper. from high-tech stuff and high grade industrial use for military and other building uses, i would like to see universal tariff for certain things, i like that idea of reciprocal tariff, we almost negotiate, it gives us more room for flexibility. i think that is what trump is always looking for, and stop us from getting taken to lunch by the world tr trade organization and country that china is manipulating the system, working around them, getting products in here by violates the laws. it gives our q country

confidence in u.s. >> arthur, i could make a case that reciprocal trade leads to free trade, i think -- >> totally. larry: in his mind and heart i think that president trump always believed that, i wrote a couple of op-ed pieces before g7 meetings, it is lead to freer trade, what to you think? >> i think totally. he is well, wear other country have higher tariffs on our product than we have on their product. you every country, has higher tariffs on our exports to them than we have on their exports to us, if they cut their tariffs to our level that would be amazing. he needs to thre threthreat --ly threaten to bring is tow is dow.

i think he is right. he scared the bejeebers out of me to be honest with you, he delivers on it every time. so far, i fully back what he is doing on having them lower their tariffs to match ourses that is reciprocal trade agreement leading to freer trade. larry: claudia tenney, blessedly, new omb director, russ vought is closing the cfpb . consumer finance protect bureau, it did not protect anyone but senator warren and her friends. and terrorized banks and financial institutions trying to make various loans, they are closing it down, president trump trekked russ vought to close it down, he is the right guy. and i'm hoping that congress will back up russ vought on

this. >> i love this move. i used to serve on a financial services committee. he is so excited about this. it is a terrorist organization in a way, financial. what they do they prevent banks from engaging, in what they are supposed to do assessing their own risk, protecting customers, they get in the way of banks ability to do that. all we have are big giants, they hurt the banking industry. they have taken diversity away. for clients at every level. i love this idea, someone who is been a lawyer to banks and worked with banks, love community banks. i love that they do this are useless organization, it is also d let's close it and

walk everyone out the door. larry: and arthur, if you keep on this path this is deregulation at the finest. you know this is a make believe, organization. this served no purpose. stopping business loans, personal loans, payday loans, credit card loans, putting their noses in to everything as though federal reserve and controller of currency and fdic, this is another one. you know. this goes with the elon musk stuff. put it in supply side ir ir-- supply cider side, this is pro growth. >> it is pro growth, and markets see it that way. the real rate of return on capital is popped up in last couple years from a negative negative number to a positive number, outlook for

economy is really great. according to bond market, inflation is not picking up. real growth is coming in. every is expecting this economy to do well, i think it because of deregulations, because of tax cuts, and pro-growth monetary policy witonce we get control. larry: the thing is deregulations, is already beginning. and that is what these audits are about. that is what this closing down on this unnecessary regulators, you are fabulous, art laffer and claudia tenney, house member from upstate new york. >> coming up. more doge, should cut agencies we'll talk about that with senator joni ernst, elon musk and doge, they are a very hot topic, stay with it. president trump is hot topic too. you should s see his approval rating from cbs no less, we'll talk about it later.

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>> elon, he is not games anything, i wonder how he can devote the time to it, i will tell him, to go check the department of education. he will find the same

thing. then i'll go to military, let's check the military, had great help with elon musk, he has been terrific. larry: there you have it. could not be clearer, elon musk is here to stay. joining us now to talk more about story iowa senator joni ernst, ma'am welcome. democrats have to deal with it elon musk is here to stay, mr. trump supports him. president trump was elected president, not the democrats, they are out of power, he likes what elon musk is doing, i think you like what elon musk is doing, i just want him to do more of it. >> absolutely, thank you for having me on today to talk about department of government efficiency. this is something that i have worked on throughout my scsqueal efforts for over a decade, now before we went to this congress, i was able to go to mar-a-lago present vivek ramaswamy and elon musk with an 8-page

memorandum of work that i have done over past decade, two trillion dollar savings blueprint for department of government efficiency, i am glad that elon musk and president have given us a platform to get it done. they are being very aggressive, you are right, larry, i am loving what they are doing. because without this disruption, it would have been business as usual. i would have gone on pushing out my squeal reports with no one in white house to grab hold of it, i am thankful for president. i am thankful that elon musk has taken on this additional duty on top of everything that he does. to really focus on cost savings and efficiencies for the american taxpayer. larry: i am vl glad, now you have friends there down the road on this 1600 pennsylvania. will you still back him, will your friend lindsey

graham still back him if he finds problems in pentagon spending? >> absolutely, and you know me very well. i am a defense hawk. but i am also a fiscal hawk. and just because i appreciate the men and women in uniform does not mean that i don't want to do better by them, and our american taxpayers, we know that the pentagon is wrought with waste, i had a good conversation last week with a contractor that has been working on a platform for about 10 years now. he said that there are about 800, 800, acquisitions civilians that meddle in there and want to make a change, it adds up to billions of dollars, on top of the original cost to deliver the platform for the war fighters, we have to do things differently. and i know that mr. musk and

the president they are intent to do this, and we can figure out the smartest way to do it work smarter not harder. larry: is there going to be a war between republican senate and republican house. budget chair lindsey graham, he has a budget resolution, i don't know whether it is proposed or voted on. but he wants to first bill to exclude the tax cut extensions. whereas speaker johnson, of the quoted today saying, that house is trying to put together one big beautiful bill. that would include tax cut, border and defense and so on. not a war between the states, just between the senate and house? >> well, i hope that there is no war. i hope we can find a peace treat to move forward. most senators agree we need two separate bills, to

provide immediate results for our constituents. across united states house is very intent on that one big beautiful bill. bottom line, what we have to do is find a way forward, we have to make sure that the tax cuts go forward, and it is not just an extension we want to see permanent see for our american taxpayers, but we know that we need to do something about our southern border and make sure that defense national defense is adequately provided for in this very unsecure world that president biden left us. we do have a lot of work to do, but, i am praying for peace between the ch chambers not a civil war. larry: i love peace, one big beautiful bill would create peace, senator joni ernst you are great, ma'am thank you. >> thank you very much. larry: all right, coming up, muit must have killed cbs

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larry: okay, sir, cbs put out president trump's historical approval rating, must have killed them to do it, joining to us talk about it rich lowry, editor and chief of national review, and david webb, hoist of david web -- host of the david webb show. the numbers, they have been out and about. 70% like the fact he is keeping promises, 53-47 approval. that high, then the other numbers 69% he tough, 63%, he is energetic, 60% focused and 58% he is effective.

those are numbers that any president could only dream about, but joe biden could not. >> yes, 53% is highest approval rating ever in this poll. series. and it goes to basic approach, small -- i'll tell people what i want to do, if i get in, i'll do it they see the greatu urgency to do it as positive, that energetic number, we were fed a lie among than others during campaign he was just as old and out of it as joe biden, he was exhausted. remember there was a period he is not doing interviews, now a tornado of energy. that put light to that. larry: 58%. david webb say he is effective, which is important. all of these are important. effective, how about, that getting stuff done. >> right, you don't just say what you want to do then try to do it you are tummy --

are actually doing it backed up by that is existing law biden crushed law, he didn't want border security, and so much more, foreign policy. now trump is come in say, hold on. i'm not making it up, tomorrow government's job is this, law says do you this border among other things we'll do it and that is what makes it effective. people are seeing those results. like the guy who comes to hour house said i'll fix your dishwasher, and when he leaves it works. >> i never had that experience. i understand the theory. [ laughter ] very interesting. is he, here. the "shock and awe" of day one closing the border and beginning the deportations. how important was that? starting with the worst of the worst. to use tom homan's words,

the criminals first, he didn't wait 24 hours, he went right after that. yhow important. >> huge, it is a top 3 issue in campaign, his time knows really -- his team knows really well, they shut down border first time, they are on the way to that against, images of rapists, and murderers, going, made everyone think, why did we have to wait until now for them to go. and on issue. i believe that is highest rank he had in the poll 59 percent approval. on immigration. larry: it was the absolutely badged it right now. you know, no what is it ands and ifs or buts, i thought interesting was nominations, they north all over yet, i -- they are not all over yet, i bel bet he will win. on seasonally adjusted

excluding matt gaetz, it was faulty seasonals but rest of it from hegseth, brilliant to go with hegseth first. >> it merits security again, right strong military, peace through strength, other thing is no matter what democrats do, they are fighting to delay, they look to delay if you contrast how fast biden got his nominees, i would is a the republican senators like mckowski and collins and mitch mcconnell, who voted for some of those biden appointees, if you can vote for them, then your objected to giving president his team is ridiculous and tran transparent. it this is about what american people need, give the president his time. one thing you know about, you have known him a long time, if he does not see it work out he am fire someone -- he will fire someone that goes to effectiveness.

larry: rich lowry how important is debate now between one big beautiful bill or two, and mainly centering around getting the tax cuts extended or permanently extended. or the 2.0 tax cuts tax free-tips and how important. >> t that is huge. i think going to the point david made with the appointments n nomination confirmed. in you pressure one individual senator almost unsustainable for that member to not buckle do what president wants. that will be really important if that can transfer to the house and senate on this reconciliation bill, there will zero margin for errors. larry: what would happen, i would like one big beautiful bill tax cuts done t

permanently and throw in 2.0, i believe in the laffer curve. if you lower tax rates, revenues go up, economy grows faster more people work, it all brins in revenues and far fewer people have to white. cheat. so how important is this? >> it is extremely, first time around, the revenue side paid for it. throw that argument out. you know, i had some -- access in. i went to congressional retreat, first time they let a show -- bod broadcast giving me access to talk to good amount of these 200 plus members, then putting them on air to talk about the issues. i saw come out from conversations off air people more united in giving trump the recancell rec recon -- reconciliation that needs to

happen. and with all respect to guys that i do like, reagan ru rule, it applies here. if you get 80% of what you want. the big beautiful bill, once you have a win on table for american people, that is what put this demand in to the white house, once you give them that win, i will give you their support, you can go for more, but you have to cross the end zone. larry: rich on this point. almost like lindsey graham taking the ho house,o, that is his style. what happens there is a war between the houses? they can't afford it. >> they can't, also, house is not that far behind schedule, given the complexity of this, it needs patience. larry: patience? get it done. bet's budget resolution i will like it. >> fabulous stuff, rich lowry and david webb thank

you, no war between the states david is cohoists "the bottom line" this week with dagen mcdowell, 6 p.m. here on fabulous fox business and rich lowry writes all of the time in new york post, coming up, on kudlow, elon musk and doge will save taxpayers a lot of money, we use that to cut taxes, haha. how about, that i am kudlow.

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for just $15 a month. and learn how xfinity rewards members can get a food delivery gift card when they add streamsaver. bring on the good stuff. larry: joining us now, welcome back to tennessee senator marsha blackburn thank you, ma'am, suppose with this budget resolution. suppose in next 10 years you put in a 3% gdp growth, not 1.8. but three. and then you put in elon musk and doge, spending cuts, i don't think, a trillion, a trillion and a half, i will argue get you about 4 trillion dollar worth covering new tax cuts, old tax cuts, middle tax cuts, anything that you want, border spend, defense spending. just those simple things, senator blackburn, i appeal

to you. >> well, larry, you and i are on the same page. because as you know, what cbo does is what we term static scoring that is assumes that making a policy change does not yield a revenue change. that is static scoring. what we want to see is a dynamic scoring, because we know that pro growth tax cuts pay for themselves. they always have, they always will. and if we can get those two scores and then look at that range that the give members a bitter idea of what the true numbers will be. what we do know is this, if the house cannot get the votes to come forward and support a permanent on the trump tax cuts, based to current policy, if they are not supporting that, then

that is the equivalent of supporting a 4 trillion dollar tax hike. and you are right. that is a no-brainer. every one of them ought to support that, i don't think that anyone wants to vote for a 4 trillion dollar tax hike. and then, when you look at the rescissions from freezing federal hiring, doing federal retirement and 53 o -- buyout, we're north of 65 thousand federal employees on, that when you look at what we're doing to reap from doge, look at money we're finding every single day. the waste that was at usaid. the waste in money that is going to some of the u.n. programs like una the waste in spending millions to type of d.e.i. classes in serbia? when you look at this, and

add it up, you will have a big number. that is going to be a current year number, if you look at 10 year window say that number times 10 that is your savings. larry: i think so. i just down understand why -- don't understand why many people in the senate are backing away. not necessary. i mean i hate to get in the weeds in baselines but the comal budget office is n first in favor of tax cuts, as you well-known. we have talk to it for years. i just don't understand. senator lindsey graham, he is a friend, he wants to go out there but does not want to include tacks that makes life harder for speaker mike johnson, and for president trump. who already said, he want tax cuts to be permanently

extended. >> absolutely, they should be. and whether it takes us one, two or three, reconciliations, a favor one that dials with border -- that deals with border, energy and military, the low hanging fruit items to put in a bill, and build that momentum ethen permanence on 2017 tax cuts so people know what the tax code will be. and we get closer to a f flatter rate, and give president trump the opportunity to come around and to a third reconciliation, we can look at those issues like tips and overtime. and social security. and salt and all of other tax credits people are waiting for. let's look at how we get rate down so individuals are spending less, how we make 7

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larry: that's it for kudlow, thanks for watching, folks. - [narrator] november 7th, 2000. (tense music) election night in america, and nowhere are the stakes higher than in houston, texas,