i'm dana perino. trace gallagher is in for shepard smith. he'll have more? just a moment. >> trace: president trump calling after his meeting with kim jong-un. >> i decided to terminate the summit june 12. >> trace: ahead, the reaction. what happens now. did north korea actually ghost us? house and senate lawmaker in a meeting with officials. and the president talking about a spy. so today an attempt to learn the truth. the white house debating whether to slap new taxes on foreign car imports. could have a major impacted on american car companies and their workers. we'll see how wall street is

reacting to that and the north korean news in this hour of "shepard smith reporting." hi, i'm trace gallagher in for shepard smith. president trump says cancelling his summit with kim jong-un is a tremendous setback for the world. but the president says he had to do it after anger and hostility from north korea. >> hopefully positive things will be taking place with respect to the future of north korea. if they don't, we are more ready than we have ever been before. >> trace: back to fox's top >> president trump wrote a letter to north korean dictator kim jong-un explaining why he's story. the us and north korea hope to pulling out of the june 12th meeting in singapore. the white house released the letter after a north korean get peace talks back on track. foreign ministry official says the u.s. decide to meet at a let's bring in james jefferies, table or in a nuclear-to-nuclear show down. former deputy national security president trump wrote to kim. adviser to george w. bush. you talk about your nuclear

he helped supervise the last capabilities, but ours are so massive and powerful that i pray to god they will never have to negotiations with north korea. thanks for joining us, sir. be used. the president wrote that he i know you're the expert here looks forward to meeting kim but this feels more like a some day. negotiation more than a nancy pelosi says that president trump's letter reads like a cancellation. your take? valentine, but house speaker >> exactly. first of all, the strong paul ryan says to achieve peace, rhetoric out of north korea was there needs to be a greater not from kim jong-un, the leader degree of seriousness from kim but one of his subordinates. jong-un. president trump would have been the first president to meet with it was aimed at john bolton. a north korean leader. that's one sign. but the more serious sign as we have team fox coverage with secretary pompeo pointed out, rich edson. the lack of response from the reaction with mike pompeo that north koreans about setting up met with kim jong-un. the summit. first, let's get to john roberts 's done 12 -- helped do 12 for live at the white house. john? >> good afternoon to you. four presidents. where this goes from here is up you don't into this without to kim jong-un. it was a bold negotiating tactic knowing the details. the north koreans were sending a on the part of president trump cancelling this planned summit signal they weren't ready. after the north korean deputy >> and there seemed to be a foreign minister issued what the change in tone, ambassador, the white house amounted to a threat second time that kim jong-un met

of nuclear war. the white house says such talk with president xi in china. what is your take on that? and such threats ahead of a maybe you can get more out of summit wasn't exactly helpful. this if you put more pressure on the president warning kim president trump? jong-un that the united states >> that's possibly the case. and its ally, south korea and there was something in his visit to beijing. japan stand ready if north korea but we shouldn't assume that gets up to any nuclear funny china wants this whole crisis business. listen here. >> i believe that this is a with north korea end. it ties down most of our forces tremendous setback for north in the far east rather than korea and indeed a setback for focusing on china and the south china sea and makes china an the world. i've spoken to general mattis extremely important mayer. and the joint chiefs of staff without china, economic and our military, which is the sanctions on north korea won't most powerful anywhere in the be effective. china may be concerned about a world that has been greatly warming of relations between the enhanced recently as you all u.s., south korea and north korea and may have put the know, is ready if necessary. brakes on themselves via the >> the president pointed out to a change in tone by north korea. north koreans. in the last couple weeks, the >> been a lot of coverage today, president wouldn't say in the ambassador, about north korea. roosevelt room what he thought was responsible for that. taking journalists to the in the oval office on tuesday the president suggested that kim nuclear facility and blowing it up. there seems to be a big jong-un's attitude seemed to difference in the definition of

change after he had a second meeting with the chinese denuclearization between north president xi jinping on may 8. korea and the united states. >> exactly. the north koreans who you'll not surprisingly president moon remember in the meeting with president moon a month ago signed up to a document that is having kittens about the says complete denuclearization of the peninsula. cancellation. but they take the north koreans he convened an emergency meeting definition that would include u.s. forces that are backed by at midnight seoul time today. president moon said they're nuclear forces and various other trying to figure out what arguments. the point is, the u.s. has to president trump's intention is and the exact meaning of it. insist on denuclearization. as the president said in talking it would be simple on the about this, this can be a step surface, trace. by step process. he's saying to kim jong-un, you want to be listening to me, not in fact, there's no other way to do it. xi jinping. the u.s. has to keep up their if you'd like to have economic prosperity, let's get together and talk, trace. >> trace: yeah. we talked about nancy pelosi and the valentine comment. what else are lawmakers saying? side or this won't go far. >> not surprisingly democrats >> trace: what is your advice are blaming this on president right now? what is the time for a cooling trump. nancy pelosi with the statement off? we keep talking to the north that would seem to require an koreans and the south koreans and the japanese and the chinese

extraordinary amount of to make this whole thing come together at some point in time. >> we keep talking with our omnitoins to make. >> this takes preparation didn't allies. there's some indication that make. they may not have known about it's clear he didn't know what he's getting into and now he's the change. there's a chance to make walking away from it in this progress. kim jong-un wants this or he wouldn't have released the chummy, palsy walsy letter to prisone prisoners. kim jong-un. the president is right to have pulled out. >> the letter in which we should but the president kept the door open. that's a very smart way to go remind you that the president forward at this point. intimated that he was ready to i think we should be comfortable seeing what happens next. annihilate north korea if they >> trace: yeah. played fast and loose with its if the phone rang from north nooks. kentucky's rand paul blamed both korea, the president might pick it up. thing you. sides. >> i'm still hopeful that at >> thank you. >> trace: meantime later we'll some point in time the summit take you live to south korea for will take place. this is a problem that sometimes a look at how folks are reacting with bombastic rhetoric on both to the summit cancellation. sides. it happened after north korea if we dial the rhetoric back claims they blew up the test down, we might have a better site that we talked about. a move that depending who you chance of having a summit. >> so now we're waiting and believe was a show of good faith wondering if kim jong-un will or just a show.

president trump called it spygate. the reports of an fbi informant have their knee jerk reaction talking to people inside his and a chance the summit won't campaign and this afternoon intelligence officials have been happen ever. briefing lawmakers from both if he thinks about what the president is offering here, parties about what actually went maybe the reaction will be different and maybe get the down. that is next. there's little rest for a single dad. summit back on track. we'll find out soon. trace? >> trace: the president loves to negotiate. john roberts is live. mike pompeo says north korea stopped responding as u.s. officials tried to organize the meeting between president trump and kim jong-un. >> over the past many days, we have endeavored to do what we agreed, to put teams together to begin to work to prepare for the summit. we had received no response. >> america's top diplomat facing the senate foreign relations committee minutes after president trump announced he was pulling out of the summit. secretary pompeo told lawmakers he's hopeful that peace talks

will get back on track. secretary pompeo met with kim jong-un and made two trips to pyongyang to lay the ground work for the cancelled summit. weeks ago he was smiling and shaking hands with the north korean dictator. and back pain made it hard to sleep and get up on time. rich edson is live with more. secretary pompeo says there's then i found aleve pm. still a chance it could happen. the only one to combine a safe sleep aid... ...plus the 12 hour pain relieving strength of aleve. >> the secretary state says the united states is prepared, ready i'm back. to hold its summit. aleve pm for a better am. state department officials were trying to contact north korean officials to coordinate on this summit. all hey heard back is dial tone. it's optimistic that the united states and north korea can coordinate a summit. he says north korea needs to calm its rhetoric and return his calls. >> we always knew, too, that still nervous [about buying a house? there could be a summit that a little. thought i could de-stress with some zen gardening. didn't work that ultimately was unsuccessful. there's been a great deal of at least we don't have to worry about homeowners insurance. work to think about what happens when you're at a moment and you just call geico. don't have the opportunities in geico helps with homeowners insurance?

front of you. i hope that we do. good to know. been doing it for years. i hope we're able to get back to that's really good to know. that place. i should clean this up. >> pompeo insists that when he i'll get the dustpan. met with kim jong-un two behind the golf clubs. different meetings in three get to know geico. hours, the north korean dictator and see how easy homeowners and renters insurance can be. understand what the u.s. demand was here. that the american government wanted north korea to surrender all of its nuclear weapons and he wanted to work towards that. while they're saying they're surprised by this, the secretary is saying at least they believe that kim jong-un got that point in his visit to north korea. trace? >> trace: yeah, rich, secretary pompeo says the pressure campaign against north korea will continue, right? >> that's right. he calls it situation normal. the united states is continuing what it calls its pressure campaign to diplomatically and isolate north korea and through sanctions. he's stressed, the secretary, has given nothing. no concessions to north korea as part of this and is not prepared to give any concessions unless

north korea can demonstrate that they're dismantling their nuclear weapons program. he says they are where they were about two weeks ago. and mike pompeo said the fate of the summit was up to kim jong-un. state department says that's the case. they want a receptive partner and that's the way this would get back on track if it's going to happen. trace? >> trace: rich edson live. thank you. ahead, negotiating with north >> trace: members of the house and senate from both parties korea. president trump sent his meeting with top intelligence message. officials on capitol hill. we still need to see how kim jong-un is going to take it. it's the second briefing today. we'll speak with an ambassador we're watching to see if anybody that knows a thing or two about speaks. both briefings coming after the dealing with north korea. that's coming up. feds had an informant with the trump campaign to investigate contacts linked to russia. the president called it spygate. he said if it's true, would be worst than watergate. mike emanuel has more. what are you hearing from

republicans? >> trace, the idea behind the meetings was briefing top lawmakers on allegations, classified information regarding allegations that a mole had been inserted inside the 2016 trump campaign. this is highly classified stuff. what we're hearing is carefully worded. paul ryan said inherent in the committee's work is the responsibility to ask tough questions of the executive branch. that's why we've insisted and continue to insist on congress's constitutional right to information necessary for the conduct of oversight. lindsey graham says the doj and fbi have some explaining to do. >> there may have been a good reason but it's unusual to have an investigation of a nominee and a spy. we have to have checks and balances. was there a good run. >> and wisconsin senator ron

johnson says ultimately the american people have a right to know. >> there's serious questions that need to be answered. from my standpoint, the top priority of this investigation is to reveal to the public exactly what happened so we can restore confidence in the fbi and the department of justice. >> also included in today's briefings here, the white house chief of staff john kelly,s will white house attorney emmett flood. so obviously those close to president trump have a keen interest in what the fbi and dodge have to say about these allegations of whether a mole was inserted in the 2016 campaign, this is red hot political stuff here on capitol hill today here, trace. >> trace: yeah. we were initially told that general kelly was going to organize this thing and be a part of it. the democrats fought tooth and nail to be part of these briefings. what do they say? >> we had the senate democratic leader saying he didn't think

the briefings should be held. he was pushing back on devin nunes requesting the information at all. >> when one party, representative nunes who so clearly wants to distort national security information for partisan purposes asking for a solitary briefing, there shouldn't be a briefing at all. our preference would still be for the justice department to cancel the briefing today. >> the house democratic leader suggested it would be better to cancel. >> the republicans have the possibility of aiding the president's defense in this investigation. >> these briefings are over classified information, so we expect lawmakers when we come out of this briefing will choosing their words very carefully. it's not likely we'll hear major

revelations and if for a change both parties can agree what they heard. trace? >> whatever they say will come back to you. mike emanuel live on capitol hill. thank you. a 43-year-old man running for district court judge in kentucky has died. just one day after he won his primary election. the campaign manager for dana alvarez said he collapsed at his home and diet at the hospital. local station wdrb reports that he had a heart attack. his campaign manager described the married father of three as a true public servant, a humanitarian and a champion for human rights and the immigrant community. coming up, we'll take a look at how the stock market is reacting to the two big announcements by president trump. what a possible import tax on cars could mean for you, a road rage attack caught on video, a guy roughed up a car and its driver badly. wait until you see what he used

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when liberty stands with you™. liberty stands with you™. liberty mutual insurance. >> more now on fox's top stories. president trump announced he was cancelling his meeting with kim jong-un. north korean officials say they destroyed the country's nuclear testing site. these satellite images show it happening. reporters said a series of explosions collapsed tunnels around the site and one sky news journalist said he could feel the heat and blew one opener is vaccination tower to smithereens. tv crews say they can't send video back until they reach an area with internet access. they called it a step forward to a nuclear-free world. kim jong-un did not allow

inspectors to watch. experts say that damage could be reversed if the north just wants to start testing a again. greg palkot is live in seoul, south korea. what more are you learning about the north korean testing site. >> trace, we're awaiting the first images from the closure of that nuclear test site. we're told maybe they will come in about three hours time. as you noted, there were invited foreign journalists at the scene. they're making their way back from the far northeast corner down to an eastern coastal city on a very slow train ride. north korea does in fact claim that this is a complete dismantlement of the site. there was an explosive closure of the tunnels that were used no the past six nuclear tests. those on the ground said it was spectacular a forceful blast. as you noted there were no

international observers allowed at the scene. there's to be a p.r. gesture by kim jong-un, this came a few hours before the cancellation for now at least of the singapore plan between president trump and kim jong-un for next month. maybe a little bit of buyer's remorse on the part of the regime, trace. >> greg, it's 4:30 a.m. there. has there been reaction to the big news that president trump has cancelled his meeting can kim jong-un? >> absolutely. you know, yes, it is very late here. we understand the south korean president was in a special session with his national security staff. they're urging direct talks and saying denuclearization cannot be delayed or abandoned from the reporting that we're seeing

about that session, trace. president moon taken aback by this change of heart, maybe not gotten any warning. he said he was quite perplexed and maybe regretting the whole thing. president trump has spoken about speaking with south korea and japan about military readiness for any new trouble. that's got to be a blow to the south korean government. they've been on the forefront of finding a diplomatic resolution to this crisis. it was south korean president moon and kim jong-un that met on april 27th in their own summit along the dmc. this white house summit cancellation seems to stand from a statement issued earlier thursday by the kim jong-un regime talking about a possible nuclear show down rather than a meeting in a meeting room. so far at least as you note, we have not heard anything back from north korea and whether they will respond and maybe agree with the united states to

respond the correct way. we'll see. back to you. >> right. president moon said a few days ago here in washington, it was 99.9% sure that this would happen. greg palkot. thank you. the head of the united auto workers says why have to be careful after trump order his administration to order new import taxes on cars. the union president says he does support evaluating trade. president trump told wilbur ross to look at whether other cars coming in from national countries pose a security risk. ross says the imports have hurt u.s. companies for decades. dan is a business editor for axios. he's the author of their pro rata newsletter on deals and

deal makers. it's fascinating here. good of you to join us first of all. you go back to the campaign. his presidency. president trump has been a champion of auto workers. the question everybody has is, will this affect auto workers, will it hurt them in the united states? >> well, we don't know what the potential tariffs could be. the devil is in the details. it could. there's auto workers that work for u.s. manufacturers, a lot of auto workers that work for foreign manufacturers. there's a question of what would be the consequence if tearies were to hit toyota, bmw, which have a lot of manufacturing. some union, some not. if the vacuum if you got rid of the imports, it would be good for domestic manufacturers, but they do also sell elsewhere. >> trace: everybody is asking the same thing. he's getting push back from members of his own party.

we got orrin hatch saying this is misguided. mike bishop saying it's good to level the playing field but you have to look at the consequences. right now it's unclear whether we have looked at all the consequences, dan. >> well, think of the consequences. we're not just talking about completed cars. we're talking about auto parts, too. so if you have a g.m. car made in michigan, sold to somebody in indiana, that car could become more expensive. when you talk about employment, the u.s. has a lot of auto workers but we have more people that work in auto dealerships in terms of selling and repairs cars. those people could get hurt in the sense that cars would be more expensive to buy and repair. >> trace: that's the key phrase. you say cars will be more expensive to buy. how much are we talking about here? a couple hundred books? what are we talking about in the price of a $75,000 car? >> honestly, we don't know

because we don't know what the tariffs will be, potential tariffs. we're talking about the investigation got launched yesterday. it will take months to complete. then we'll see if there are tariffs. remember, the trump administration talks a big game about tariffs and often doesn't really impose very much. even take the steel and aluminum tariffs that exist but lots of companies got excepted. we assumed there would be $150 billion of tariffs on chinese goods. now according to the treasury secretary, that's off the table. we'll see what countries are excepted. the majority of u.s. cars that consumers buy are made here or made in canada and mexico, which wouldn't be tied to this. >> yeah. you make a good point. look at the corner of wall and broad. the down is down 62 points. but when the steel tariffs were

announced, it crashed. now they're saying let's see. the north american free trade agreement, could this spur more action? >> wilbur ross won't say but that has to be a piece here. the talks a stalled. mexico export as lot of cars to the united states. this is a lever that you could use there. we'll see if it works. they're talking about national security. there's big questions whether national security applies here. wilbur ross' argument is anything that affects the u.s. economy is a security issue. that's question. >> trace: thanks, dan. good to see you. >> thank you. >> trace: meantime, i mentioned stocks are sliding on concerns about import taxes on cars and the president's decision to

cancel his meeting with north korean dictator kim jong-un. a live look now at the cow. it's down a little bit. down 70 points. six more points than we first started this conversation a few minutes ago. not what you normally see when big decisions are made on tariffs. the fox business network connell mcshane is live in new york city. is that a fair assessment? didn't go crazy. >> 100%. the reaction initially was quite swift. you had money out of stocks in the morning and what we usually consider to be safe investments. we'll show you one chart of the dow jones for the day. you see it moving down after the president announced he was pulling out of the north korean summit. 11:00 a.m., down 280 points. to your point, we're down 60 or 70. not a big deal at all. early in the day when we had stocks down, bonds moved up in price. the yield on the note back below 3%. gold had its best day out of the

month. gold is seen as a safe haven investment. so gold is up, stocks down. i've been talking to investors throughout the day. after this initial sell off, the general read was this meeting being called off with north korea for now. doesn't necessarily change an investor outlook. maybe it complicated trade negotiations with china. most seem to consider this and to some extent the auto tariffs to be noise. as dan said, the auto tariffs, who knows whether or not they cam to fruition. it's a big time wait and see. >> it is. a big so what on watt street. the president rolled back restrictions on banks today as well. >> yeah. that is something that is quite well received in the market. you wouldn't know it today necessarily. financial stocks haven't done that great. many rallied ahead of the bill signing and the watt street saying has been you buy the rumor, sell the news.

knew this was in the works. the market went up when the bill passed, the financial stocks did. maybe profit talking, this move, less regulation on the banking city seen on wall street as a positive. it's been well received news. >> connell mcshane, good to see you. thank you. >> okay. >> well, it's been almost four years since malaysia airlines flight 17 broke apart in midair killing 300 people. investigators say the missile that shot it down came from russia. now we're hearing from moscow. details coming up on "shepard smith reporting." picking the right style takes time. one picky customer shouldn't take all your time. need something printed? the business advisors at office depot can assist with exactly what your business needs to grow.

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>> trace: some u.s. troops trusted with keeping an eye some of of america's most popular powerful nuclear missiles reportedly used and distributed lsd. that's from an associated press investigation. many operated a drug ring in 2015 and 2016. this happened at fe warren air force base, which is about 100 miles north of denver. one of the air men that used the drugs said he felt pair canadian. the other said he loved altering his mind. no evidence that they used the drug while on duty. the document show that investigators were able to track down the air men after one posted a snap chat video of

himself smoking weed. acid and weed. the air force disciplined 14 service members, six of them convicted of using or distributing lsd. russian defense officials say they had nothing to do with the crash of a malaysia airlines plane nearly four years ago. that from russian state media. according to investigators, a russian missile shot down the flight and killing everyone on board, almost 300 people. the investigators say they found irrefutable evidence the russians shot the missile from inside the ukraine. they released this video. they claims it shows russian military vehicles carrying missiles into ukraine. the shocker, not a single russian missile has ever crossed that border. benjamin hall has more. benjamin? >> hi, trace. today's announcement follows years of painstaking research,

looking at social media intercepts and television intercepts and they said today that they can confirm this is a russian missile that shot down the plane killing 289 on board. investigators in holland where 2/3s of victims came from said after studying videos and photos of a military photo that crossed from russian and draking the serial numbers that the missile belonged and came from a specific anti-aircraft military unit. >> jit has concluded that the flight shot down is from the aircraft missile brigade. >> the crash left bodies and

debris strewn ovall over the ground. prosecutors have given their findings to russia, moscow. they have denied all knowledge of this affair. trace? >> benjamin, what do investigators say is the next step in this process? >> trace: one of the reasons they made this announce meant today is a few years ago, they said they had hundreds of suspects. they have narrows that down to a few dozen and they want to proceed with a criminal case. they say if they can't get the suspects to them in holland, they will continue and try them in absentia. they say they have asked for help from witnesses who can testify about the involvement with the russian military, people that have seen this rocket being fired. people that were part of the brigade. russia has floated a number of theories of their own suggesting that the ukraine was responsible for shooting down the plane. russia has used their veto power

to prevent a tribunal happening. when it moves forward, it will have to be in holland. >> trace: thanks, benjamin. the manned behind the wheel in a deadly school bus crash in new jersey has been charged with vehicular homicide. the driver crossed three lanes of traffic trying to make an illegal you turn. a teacher and a student died and 40 hurt. it happened in mount olive about 40 miles west of new york city. a hearing is set for tomorrow. hurricane season starts next week and the feds out with a prediction of how bad it will be. last year it was a doozy and they got it right. what are we in for this year? that's next. mom? dad? hi! i had a very minor fender bender tonight

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>> trace: a breaking news update of our top story. senior white house officials said president trump dictated overry word of the letter cancelling the june 12th summit in singapore. the official says during secretary of state mike pompeo's seconds visit to north korea, the north koreans promised to meet in singapore but they never showed up. kilauea volcano continues to spill lava across the island. now they're producing flames that are blue. the bizarre phenomenon are as a result of me than -- methane

gas. look at that. one official says this is the second time they've seen this. the kilauea volcano started erupting two weeks ago. it keeps going and going. forecasters say there's a very good chance this year's hurricane season be near or above normal. the season begins next week. in 2017, scientists projected an above hurricane season and they were spot on. last year, irma was the most powerful storm reported in the atlantic. it knocked out power to 16 million people in the southeastern united states. phil keating is live in marathon florida, which is very close to

where hurricane irma made landfall. >> full recovery still far away from the keys. seems like this persists. polluted views of paradise, which is the only reason that people moved down here. 16 trailers remained in this canal. boats have no more access. the money is tapped out. they're still waiting for fema reimbursements. furthering the delay, all the paperwork and the state's division of emergency management charged with disbursing the money. residents are beyond exaspera exasperated. fema has failed up. it's still not been cleaned up nine months later. >> noaa trained volunteers

pulled up 150 pounds of irma wreckage. crab traps, anchors. 100,000 of cubic yards of trash were still buried under water. monroe county says they submitted $35 million for fema reimbursement. to date, they've received $600,000. for its part, fema says it takes time but the monies will come. it's all about fraud prevention. trace? >> looks like it happened two weeks ago instead of nine months ago. thanks, phil. a new mission in search of the loch ness monster. that's next. dear great-great grandfather,

you made moonshine in a backwoods still. smuggled booze and dodged the law. even when they brought you in, they could never hold you down. when i built my family tree and found you, i found my sense of adventure. i set off on a new life, a million miles away. i'm heidi choiniere, and this is my ancestry story. now with over 10 billion historical records, discover your story. get started for free at ancestry.com

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problems. next, they'll show whether the loch ness monster exists. people began reporting sights in a lake in scotland. analysts will check out dna samples and she if it's legit. i'm trace gallagher in for shepard smith. "your world" with neil cavuto. downtown about 78 and starts now. >> neil: no go with noko. the president cancels the trip and the reaction from some democrats, let's just say, what a trip. >> it's clear he didn't know what he was getting into and now he's walking away from it. this have very chummy palsy walsy letter to kim jong-un. he, kim jong-un, is the big winner. >> neil: some on the left lash out today, a behind-the-scenes look at how the summit of the century went down.

welcome. i'm neil cavuto. this is "your world." man, what a world today. it's the biggest news story by far of the day. and the reason why this is the only story we are covering today. because you w