leland: all right. news continues from new york. don't forget tomorrow "fox news sunday," larry kudlow on. great conversation about tariffs coming up. molly: thanks for watching, thanks for joaning us, everybody. leland: happy mother's day. ♪ ♪ eric: well, a top house democratic upping the ante for his demands for president trump's tax returns, now issuing subpoenas for six years of documents and giving a deadline of may 17th to get them. but, you know, administration officials are pushing back, saying that request is out of bounds as washington on this saturday braces for yet another showdown. hello, everyone, i'm eric shawn. >> and i'm alicia acuna. richard neal sending subpoenas to the heads of the irs and treasury department within the last 24 hours after a request for the information was denied

earlier this week. ellison barber is live from the white house with more. >> reporter: yeah. officials are telling fox news that not only does the department of treasury have these subpoenas in their possession, but that their legal team, legal counsel there, they're currently reviewing it. the department of treasury and the irs says that president trump has one week -- or they say that, excuse me, the department of treasury and the irs say that there is one week, they have one week to turn over six years of president trump's personal and business tax returns. that is according to this subpoena from house democrats. the chairman of the house ways and means committee initially did try to obtain the returns by using a provision of the federal tax code that dates back to the harding administration and the teapot dome scandal, but mnuchin rejected the request, and the secretary says the request lacked a legitimate legislative purpose and violated supreme court precedent n. a statement, chairman richard neal said he

issuesed the subpoenas because he believed, quote, this action gives us the best opportunity to succeed and obtain the requested material. republicans think all of this is partisan politics. >> i view it consistently as a desire to delegitimize the president, throw mud on him any way they can. and so, you know, you've got "the new york times" publishing 30-year-old tax returns. good grief, it just doesn't make sense to me. but that's, that's where we've come to in congress today. >> the last eight presidents have voluntarily released their fax forms, and what i think we're trying to do is remain consistent with the previous presidents. >> reporter: in the past, president trump has vowed to fight all subpoenas from congressional democrats. >> and speaking of subpoenas, what are you hearing about don mcgahn and whether or not he'll testify in the coming weeks. >> reporter: in the past, the white house has told current and former officials not to comply with subpoenas coming from

congressional democrats, and sources are confirming to fox news reporting that was originally from "the new york times" said officials actually reached out to mr. mcgahn and ask him to publicly say he did not believe the president obstructed justice. mcgahn refused to do that. his attorney told fox news, quote: we did not perceive it as a threat or sinister, it was a request professionally and cordially made. congressional democrats want to hear from mr. mcgahn on may 21st. the house judiciary committee has subpoenaed mcgahn to get him to testify. if he does not comply with that subpoena, the chairman of the committee, chairman nadler, says they will begin proceedings to hold him in contempt. alicia? alicia: ellison barber at the white house, thank you. eric: for more we're joined by steve nelson, white house reporter for the washington examiner. steve, the white house puts the arm on michigan, and he says

take a hike. do you think we will see him testify? >> i do not think that we will see don mcgahn testify. the white house has been clear that they will be exerting, asserting executive privilege over various white house aides who democrats want to have come before congress to discuss mueller and the russia probe. i think the bigger question is whether we're going to be seeing bob mueller testify before congress. that's very much an open question and a issue that the white house itself has been evolving on in the past week. eric: the committee's been saying they've been negotiating with mueller. do you know what type of issues are up for negotiation? >> clearly, the cope and exactly what he would be getting into is an eshoo. we saw last week with the democrats trying to subpoena the mueller report and the underlying materials, you saw an issue there the white house declared executive privilege over that, they didn't want, you know, absolutely everything to be handed over to the democrats

there. president trump, of course, wants to turn the page, he wants this to be over, he feels he was vindicated by the mueller report are. democrats instead see the obstruction of justice analysis as potentially damning, and they want to dig deeper. eric, in terms of mueller's possible testimony, he becomes a private citizen, one assumes, in a few weeks. is it easier then for the committee to call on him and get him to testify when he's no longer a doj employee? >> yes, yes, that is much easier. there is the added question of, you know, what mueller wants. mueller's not someone who has sought out the limelight. we haven't seen him giving interviews about the report or his work and, you know, i'm not sure that if he ever were to testify, that we would see the fire works that some people are bracing for. of course, there are hints that he was dissatisfied with the attorney general's characterization of the report. he sent a letter to the attorney general pushing back on the

four-page analysis that was sent ahead of the release of the redacted version of the report. so democrats certainly see an opportunity to hold mueller in -- haul mueller in there and have him answer questions with a mar emphasis on the obstruction of justice issues. eric: do you think he would come voluntarily? he's kind of like joe friday, he's mr. by the book. we see the pictures and video of him in washington going to dinner at billy martin in georgetown, just that stone face and continues not to say anything publicly at all. >> mueller is someone who, of course, as you mentioned, he is very by the books, that's his reputation. i couldn't imagine him resisting an attempt to compel him to testify. it's unclear, though, that he's going out of his way to volunteer his testimony. it's certainly a fight that's going to be brewing, and it's an interesting matter. kellyanne conway, the white house said their initial

emphasis seemed to be he could do it if he want, that's what she said two weeks ago. president trump tweeted on monday mueller should not be testifying. on thursday he seemed to walk it back and said the attorney general will decide, of course, so long as he is an employee of the justice department he will decide. trump seems to be pushing this off on barr who, for now, has been taking the heat for the withholding of access for democrats in congress. eric: those shackles may be released once he's no longer on the government payroll pretty soon. meanwhile, "the wall street journal" is saying about this, quote: the real offense against the constitution here is by democrats, oversight of the executive branch is an important congressional power. but the supreme court has said it should be related to congress' legislative function or constitutional duty. it can't merely be a trolling exercise to see what nasty details they can find to score political points and discredit a president before the 2020 election. do you think that's fair? is it -- or is it the

constitutional duty and legitimate oversight? >> well, we should take a the step back and ask why this matters. one of the big reasons is this is setting the groundworks for what is likely going to be an impeach. effort by congressional -- impeachment efforts by congressional democrats. bill clinton, of course, was impeached by the republican house x there are many democrats who want to do the same for president trump. one of the articles of impeach. est clinton was obstruction of justice, and there's a clear avenue for them to pursue. even some republicans see this as a very real threat and feel right now what's important is a messaging campaign for republicans portraying this as a political persecution. eric: and steve finally, quickly, do you believe -- you just said there is a pathway toward impeachment even based on these allegations from those reports that haven't been proven. >> yeah. well, you know, i wrote for -- i wrote a magazine piece last week, and i talked to former

congressman bob barr who was the first to introduce impeachment legislation against bill clinton, and then he presided over the house proceedings. he says it looks almost inevident to him that -- inevitable to him and right now what's important is there to be messaging calling this political and emphasizing trump's unrelated accomplishments as president. so there surgeon hi is, even among trump supporters like bob barr, suspicion that this is where that's going. eric: bob barr, a name from the past, someone certainly, one would think, would not be for impeachment. interesting that he has that the insight from his experience in the clinton situation. steve nelson, thank you for joining us on this saturday. >> thank you. erik eric of course. alicia? alicia: no deal on trade, at least for now, after american and chinese officials suspended talks without reaching an agreement. this as president trump raises tariffs on goods from china lu also says washington's relations with beijing remain strong. the president tweeting this morning: such an easy way to avoid tariffs?

make or produce your products in the good old usa. it's very simple. david spunt is live in washington with more. >> reporter: good afternoon. the ever-changing story here. the trump administration not ready to confirm a date for future trade talks, but officials are hinting they will likely happen. chinese state media is reporting that u.s. negotiators will fly to beijing, china, in the next few weeks. at 12:01 a.m. friday, that is when those tariffs went into effect, up from 10 to 25% on $200 billion in chinese goods. these right here are just some of those goods, you can see handbags, clothing, bet -- bed sheets, colognes and perfumes just to name a few. on thursday the chinese vice premier left the first day of negotiations pessimistic. >> translator: china believes raising tariffs in the current situation is not a solution to the problem. it's harmful to china, to the united states and to the whole world. >> reporter: it's possible the

united states is not finished with this tariff trade situation with china. trade representative robert lighthizer, who was at the negotiating teenage with the chinese, put out a statement. it says the president also ordered us to begin the process of raising tariffs on essentially all remaining imports from china which are valued at approximately $300 billion. and just yesterday after a few short hours of talks, the vice premier was spotted at the nearby willard hotel having runs. of he said that -- lunch. he said that talks would continue. he said it's up to the two presidents, meaning president trump and president xi, to talk this out directly and see if they can come to a conclusion. now, we're told the two have not spoken yet as of saturday, but president trump said just a few days ago he received a letter from the chinese president, and they may speak by phone at some point. until that time, china has already made it clear they are preparing to retaliate for the move made by the trump white house. alicia, no word yet on the specific measures china may

take, but we are hearing that conversations will continue in beijing at some point in the next few weeks. alicia: okay, thank you, david, in our nation's capital. and coming up a lit -- bit later this hour, we'll talk about this with gordon chang, and tomorrow on fox news channel two high profile news merricks will be reacting to the latest between the u.s. and china. white house economic adviser larry kudlow will join chris wallace on "fox news sunday," and maria bartiromo will speak with republican senate lindsey graham of south carolina who, in addition to chairing the senate judiciary committee, also sits on the senate foreign relations committee. eric: promises to be a big sunday tomorrow as always here on the fox news channel. the u.s. ramping up its defenses in the middle east amid what we are told is a growing threat from iran. sending the uss arlington and deploying a patriot antimissile system to the region besides the uss lincoln aircraft carrier

battle group that is already steaming on it way. all this after iranian president rouhani warned that the islamic republic would stop complying with parts of the nuclear deal. here's acting secretary of defense patrick shanahan. >> it's important that iran understand that an attack on americans or its interests will be met with an appropriate response. we're in the middle east to defense terrorism, but with we will direct ourselves. eric: gillian turner live from our washington bureau with more on this developing story. >> reporter: hi, eric. the pentagon is building up a deterrent force to potentially use against iran, dod announcing yesterday that a warship and patriot antimissile battery are headed to the middle east. this move comes in respondent to iran prepositioning missiles aprocess the region. the pentagon saying in a

statement, quote: the united states does not seek conflict with iran, but we're postured and ready to defen u.s. forces and interests in the region. the patriot missile batteries, it's used to shoot down ballistic missiles and aircraft. the uss arlington, which will transfer from europe to the mideast and swap out with another warship in the region, is used to transport marines and aircraft, to support all kinds of warfare. now, military experts say it's highly unusual for the pentagon to broadcast its movements so publicly. >> they have some likely very good intelligence here, and what we're trying to demonstrate to iran is that we will respond. that's why we're being so public about it. you're showing a carrier strike group going through the suez canal. we normally don't do that. >> reporter: fresh on the heels of the one-year anniversary of president trump's withdrawal from the nuclear deal, the secretary of state in

london said that so far iran's tough talk has mainly amounted to bluster. >> we'll have to wait to see what iran's actions actually are. they've made a number of statements about actions they've threatened to do in order to get the world to jump. finish we'll see what they actually do. >> reporter: secretary pompeo's message so far has been the u.s. isn't seeking war with iran, but he says for 40 years they have been killing american soldiers, attacking american facilities and taking american hostagings. so, eric, moves that, obviously, require a certain degree of self-defense. eric: yep. 603 americans killed by iranian-backed mill saws -- militias in iraq. we should not ferret that. meanwhile, chairman kim jong un should be called criminal, so says the father of o otto warmbier. fred speaking at the u.n.. we'll tell you about the new senate bill that's aimed directly at the north korean dictator named after otto.

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collided with two barges that were carrying about a 25,000 gallons of a chemical used to make gasoline. it is not clear how much of that product spilled into the water, but officials say they are monitoring the air, for example, in the area and, apparently, there is no danger to the public. alicia? alicia: also in texas, houston is bracing for more flooding after torrential rain and flash floods stranded drivers, knocked out power to thousands of homes and shut down major highways in the region. now a new system is moving in, threatening other parts of the south. meteorologist adam klotz is tracking it all in the fox extreme weather center. >> reporter: yeah, unfortunately, we continue to see a setup that's going to bring more rain across the southeast. temperatures running up into the 80s, you run back just a little farther off to the west, 60 degrees. warm air and cold air meet, we're going to keep getting that throughout the rest of the afternoon and running farther into the weekend. heavy rain running across the

gulf coast, that on top of areas that have seen so much precipitation in the last week. this is radar estimated for the entire last week, and you start to see some of these deeper reds and purples, that is widespread 6-8 inches. so the ground is sap a rated -- saturated. and, of course, any new rain is just going to add to this and bring a whole lot of flooding. there are bug areas where we're -- r talking about flood watches, mississippi, eastern texas, austin running over towards houston. all of these areas. here's our future radar. all of this going to be on the move from now throughout your saturday, into your sunday, running across the southeast, eventually kind of getting up into portions of the mid atlantic and new england. just a very soggy kind of weekend here off and on for the eastern half of the country, bringing more rain to areas where they really don't need it. this is our estimated rainfall from now running you all the way into the middle of this upcoming

week, getting into wednesday. in some of these darker colored areas in the mississippi delta, that's getting up to another 2-4 inches of rain. so, alicia, this is going to be a mess. and any flooding that folks are dealing with there, unfortunately, it's going to be that way for a while longer. alicia: and they really need a break. thank you so much, adam. what president trump has to say about his democratic challengers, next. ♪ ♪ 'cause let's be honest... nobody likes dealing with insurance. right? see, esurance knows it's expensive. i feel like i'm giving my money away. so they're making it affordable. thank you, dennis quaid. you're welcome, guy in kitchen. i named my character walter. that's great. i'd tell you more but i only have thirty seconds so here's a dramatic shot of their tagline so you'll remember it. when insurance is affordable, it's surprisingly painless. where he actually asked meon i be"mommy what's wrongr, with your teeth?" if i would've known that i was gonna be 50 times happier...

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wrong direction. the latest average suggests the president might be right with biden holding a commanding lead. but of course, it's still extremely early in the election process. let's bring in the political panel. david mcintosh is president of the club for growth and robin byro is a former obama campaign regional field director. thank you both for joining me today. robin, i would like to begin with you. in the early goings of former president obama's first run for president, way back in 2007 when he announced, hillary clinton led by a by an average of 10, 11 points. so much of politics is not what it used to be, is this lead something that biden can maintain? it's spring of 2019, after all. >> honestly, i predicted that his best day on the campaign would be the day that he announced. it shocked me, allysia, that he picked up 11 points after he annoyanced so. it's really anyone's guess. honestly, i thought his campaign

would die by attrition, a slow death, as some of the newer, younger candidates with some fresher ideas came forward. but this message that he's got is resonating with american voters. alicia: david, what are your thoughts? >> i agreed with robin before and thought the same thing. i think the president has a good point bernie sanders has significantly and the others haven't caught on yet and that's given vice president biden a shot in the arm and boost in the polls. i think the real ani the real as history's 2016 campaign where she came on at the beginning as the establishment pick. joe biden's got that. he's the guy from washington for decades. the party wants to see him because the polls show he does well against president trump. will the progressives sit back

and let party establishment dictate their nominee again? a that remains to be seen. if one of these new young people can consolidate that momentum the way biden did in '08, you could see a real contest still, i think. alicia: i want to go back to that. that seems like on the minds of voters', the one that's are being polled, they're thinking about biden and sanders. we see some of the polling, biden is actually polling from some of the sanders base, that sanders less to the left side of politics. is that a concern for anyone who is not biden? >> oh, yeah. absolutely. that should be a concern for anyone not biden. because it shows that the majority of the country really is on this somewhere in the middle. they're not so far to the left, not so far to the right. it's right there in that sweet spot in the middle. some of these other candidates are going to have to craft a message, sort of like amy klobuchar is, that really resonates with more of the rust

belt and midwest. alicia: we saw the rcp average of polls at the beginning of the segment. i want to point you out to one out of new hampshire, the first in the nation primary state. look at thed lead biden has over bernie sanders, he's two to one. is this an early sign of the president's point, that the former vice president will, quote, steamroll the competition and david, start with this one. >> it's a big lead for biden. again, i think it's a drop by sanders that explains most of that. ing interestingly, you see mayor pete there in third place coming from nowhere. so i think it's going to evolve over time. the activeists will be very energized. they tend to be lessen newsas particular. you look at the poll, and anybody under a 50, bernie is stilstill t beating. biden those be happy with that result, starting out of the

gates in new hampshire that way. alicia: is this the competition that the president and republicans want out of the gate? he is doing well in the polls and he's running on an obama policy platform. i would like to go to you on this, robin. wrote about this in a fox news op ed. >> i did. thank you so much. i do honestly think biden is probably president trump's preferred candidate to go up against, because, yes, he might be centrist but that works against him also. i'm from the obama era. i've been called part of the old school. so in the end, kind of like david said, this may speak to voters because it's just not bringing anything that fresh or new, like some of the younger candidates are. david mentioned pete buttigieg. he's really captivating so many hearts of people in my party. so it's interesting to see him rocketing right ahead with this, a allysia. alicia: what do you think, does the president want a battle with

biden? >> i think his recent interview indicates he probably does. i imagine he sees the lineup in that case becoming outside of washington versus long-time washington insider and he feels he has an advantage in the blue wall states and the southern states that will be the battlegrounds in the next election in the fall. alicia: okay. we have a long way to go, especially in politics. david and robin, thank you. >> great to be with you. >> thank you. eric: kim jong un is a, quote, thug, a murderer, who said that and why, next. i can't believe it.

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hi. maria ramirez! mom! maria! maria ramirez... mcdonald's is committing 150 million dollars in tuition assistance, education, and career advising programs... prof: maria ramirez mom and dad: maria ramirez!!! to help more employees achieve their dreams. eric: north korea continues to act true to form, aggressively defiant, test firing several short range missiles in less than a week. the pentagon says the missiles flew for more than 200 miles before they splashed into the

ocean. this is what president trump told politico. they're short range and i don't consider that a breach of trust at all and you know at some point i may, but at this point, no. these were short range missiles and very standard stuff. very standard. meanwhile, there's mounting pressure on capitol hill for washington to enact stricter sanctions against kim's regime in the name of otto warmbier. this father attended a united nations conference yesterday on human rights in north korea and the history of the nation's abductions of other citizens. he supports it in a bill named for his son, intended to increase pressure on kim jong un. >> we use this term chairman kim and i swear it makes me sick. he's a criminal. we give him this status on the world stage and we call him a chairman. he should be called criminal kim. if we're afrayed t afraid to tee

truth of who we're dealing with, we don't stand a chance of making a difference here. we aren't willing to stand up to north korea, if we're going to enable him, we're going to have the same conversations five and 10 years from now. every member of kim's regime is a -- he's a thug, he's a criminal, and he's a murderer. it's that simple. eric: federal judge in washington, d.c. ruled otto warmbier was falsely arrested, tortured and sent home to die by the brutal regime of kim jong un because he was an american. now, there is a push in his name to make the north korean dictatorship pay for its continued defiance to denuclearize. >> this is an opportunity to stand up for otto, to stand up for a world where bullies cannot have their way. the kim regime and kim himself

ultimately needs to be held responsible for the brutal, horrendous murder of otto by putting his name on this legislation, it's a way to keep his memory alive and to remind the world of the atrocity of this regime. eric: senator pat toomey and senator chris van holland have come together in a bu bipartisan effort to honor otto and send kim a message. otto was a college student from ohio when he was arrested while on a tour of north korea. the otto warmbier act would clamp down on banks that illegally support the regime and its nuclear program. >> the goal is to put the maximum possible economic pressure on the kim regime of north korea. in effect, would a bank have a choice, deal with north korea or deal with us. >> it's either/or. if you're going to deal with

north korea, you will not have access to the u.s. banking system. i want them to have to choose. i'm pretty sure you i know what choice they'll make and that is designed to increase the economic pressure on kim. eric: the senators say the measure is especially needed now because two recent summits with president trump have not moved kim to get rid of his nuclear weapons. >> we've seen no progress, no real progress. in fact, maybe some backsliding now. so yeah, i think it's absolutely time to ratchet up the pressure. >> do you think kim wants to give up his new you clear weapons? >> no, i don't think so. eric: otto's parents support the bill. >> the less we keep the pressure your on north korea, they are not going to change and i am very afraid that we're going to let up on this pressure. eric: analysts say the bill's sanctions to get kim to back down. >> the u.s. needs to increase its negotiating leverage by enforcing tough sanctions against north korea and north korea's partners. exert enough national pressure

so that kim grows worried. eric: behind the effort is the legacy of otto, a young man who represented americans freedoms and values and whose faith exposed the true face of the kim regime. >> what happened to him really reflects the nature of the north korean regime and kim jong un. kim jong un is around the world, he goes to summits and there's a lot of bom pomp and circumstanc. he runs a brutal regime that killed an american. we thought it was really important to remember otto. he fall intuse the clutches of -- fall intuss into the clutchea proprofoundly evil dictator. they beat him to death. it's a disturbing reminder of how horrible this regime can be. eric: eventually the senators hope this will go to the

president's desk so he can sign otto's bill into law. joining with more on this and its importance, we're joined by analyst gordon chang, the author of the new book, losing south korea. the otto warmbier brink act is aimed at targeting four chinese banks. why is that important? >> it's important because most of the transactions that involve busting sanctions, in other words, supporting commodity sales from north korea to elsewhere or sending oil to north korea, all of this involves banks and most of the banks that are involved in this are chinese. we know from reporting that all four of the big four chinese banks have been involved in handling north korea's illicit financial transactions, especially the bank of china. it's important for us to go after the banking. we do that, kim doesn't have money. kim doesn't have money, he what those cough up the missiles and the nukes. eric: what happens if he finds the strai stranglehold.

that decreasing the amount of rations to south korea and importing brandy and cigars and delicacies to office 39 which helps support the elite and keeps kim in power. >> it certainly does. and kim has been flaunting his sanctions violations by tooling around pyongyang in a brand-new mayback, a sale of a luxury car to north korea is a violation of u.n. sanctions. he's driven in a lot of he mercedes. these are not old vehicle that means kim has got access to all sorts of luxury items. not only the small stuff like the brandy but also vehicles. that means our sanctions enforcement has been less than vigorous. we need to do something about that. that's a separate issue. eric: i guess he gives that stuff out as rewards. he's got a mayback. where does he get a mayback from? that's like $200,000. do you know what dealer it was? was it from germany. >> we don't know the dealer.

but obviously it's important. eric, you touched on something critical. that's gift politics. the kim family rulers, not just kim jong un, but his father and grandfather, have given out luxury items to regime elements to buy or maintain loyalty. if there's no gift politics, there's no regime. if there's no regime, there's no missile or nuke programs. eric: what do you think the president should do about the otto warmbier act if it passes the senate. >> definitely he should push for adoption in congress and should sign it immediately. there are treasury regulations that morthat would more or lesse same things but they have not been enforced. the administration has not been enforcing the sanctions. we need to enforce the rules on the books and we have to with the brink act to increase the penalties in new legislation. eric: that's in front of the senate now. both pat toomey and chris van

holland sponsoring that bill. we'll keep up with that and see what happens with that. don't go away, gordon. after the break we'll talk about the impact of the u.s. raising the tariffs on chinese goods and we have reaction from the consumers about the trade war here at home when we come back. is that net carbs or total?... eh, not enough fiber... chocolate would be good... snacking should be sweet and simple. the delicious taste of glucerna gives you the sweetness you crave while helping you manage your blood sugar. glucerna. everyday progress

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that means that the prices for many different products rise dramatically, products from china become uncompetitive with products from other countries. alicia: analysts and consumers expressing concern about the ongoing trade war with china as president trump's new tariffs rile the market. jacqui heinrich is live in new york city's herald square with reaction. >> reporter: the question right now is just how quickly are you going to see prices jump up in stores. macy's, walmart and target are some of the biggest importers of chinese products. a lot of companies made bulk orders ahead of the tariffs. mom and pop shops may pass off additional costs to consumers faster, as of 12:01 a.m. yesterday, more than $200 billion worth of chinese exports were subject to a 25% tariff, up from the previous 10% rate. most of the goods that were

impacted are raw materials that manufacturers buy. but $40 billion worth of consumer goods are also being hit. these are things that americans purchase regularly. at the grocery store you can expect to pay more for seafood, vegetables, shell fish and paper rods. handbags, electronics, clothing, furniture and hardware will also cost more. some businesses and consumers are expressing sticker shock. >> we've recently got e-mails from our vendors notifying us that with this tariff increase that the bicycle components, everything in the industry will go up. >> i'm already paying up the ying-yang for everything. i don't have too much money to spare. >> reporter: experts estimate that if these tariffs stay in place, it could cost the average american family of four about $767 extra per year. of course, the president has not yet played his final card which

would be to apply the 25% tariff to all remaining exports from china, totaling $325 billion t worth of goods. he has not yet done a that. allysia. alicia: jacqui, thank you. eric: for more on the tariffing, let's bring back -- tariffs, let's bring back gordon chang. the tariffs went up bit by bit and we had the negotiate in washington had that basically failed. what do you predict? >> i don't predict consumers will pay $767 more per year. a lot of fact r tosse -- a lot s will mitigate against that. there will be some absorption by chinese producers. also, we have number of factories that will move back to the western hemisphere. i've got a friend who is a manufacturing consultant. on friday afternoon when the tariffs were going up, he got a call from an asian businessman,

wanting to move his factory out of china, into central america. this is really important because if factories go back into central america, we're not going to see these large caravans moving up towards mexico into the united states. eric: you mean central america, like honduras, guatemala, one of those countries. >> right, into central america. this has all sorts of good implications for us. eric: you ho.eric: how do the? do they seem to be pulling back? >> i think they're numbe they dt to do with president trump. i think they're extremely worried. their economy is not growing at the 6.4% pace that they claim. they know the additional tariffs can sink them. i think right now they're in a little bit of a panic in beijing. eric: you're saying despite chinese bluster, they're vulnerable? >> extremely vulnerable. i think xi-jinping is in a

difficult poe sismtion he doesn'position.he doesn't have l strength to exert his bill. this is a political system in beijing that's in turmoil. i don't know if the united states has someone they can talk to on the other side who can meet commitments that are made. that really means that there's not going to be a trade deal anytime soon. i think actually that's a good thing, because we do need to get those factories back to either the united states or central america and that will be good for us, from a number of different perspectives. eric: in the short term, you're seeing a hit on wall street. it's made things kind of unpredictable. >> well, sure. and wall street doesn't like any sort of disruptions to normal business but the point is that china's stealing 3 to $400 billion a year in u.s. intellectual property. we've got to do something about that. the president is focused on this issue and it will cause some pain. but ultimately this is going to be a good thing for the u.s.

because we need to protect our i.p. if we can't protect our i.p., eric, we do not have an economy of the future. eric: 300 to $400 billion a year. why haven't they in all these years made some realistic good faith, sense sear effort to try -- sincere effort to try to stop that? >> to do that you would have to criticize two individuals, names are george w. bush and barack obama. you might even throw william jefferson clinton into the mix. for a lot of reasons, the u.s. has not protected u.s. businesses and workers against malicious attacks by china. that's an extremely long, long story and a sad tale. eric: it is as that. at least right now the president says he's doing something about it. gordon chang, always good to see you. thank you for sticking around for these vital stories on this saturday. >> thank you so much, eric. eric: of course. alicia: we'll tell you who made a big commencement speech today and what his advice toys the

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(gasp) (singsong) budget meeting! sweet. if you compare last quarter to this quarter... various: mmm. it's no wonder everything seems a little better with the creamy taste of philly, made with fresh milk and real cream. alicia: vice president mike pence with some words of advice earlier today, while delivering the keynote address at liberty university's mentionmen's commet address. >> to our graduates i have have faith. have faith in yourselves proven by what you accomplished to get to this day. class of 2019, this is your day.

the world awaits. as you leave this place, go forth for liberty. make liberty proud. alicia: roughly 18,000 graduates took part in the ceremony. congratulations and good luck to every one of them. eric: absolutely. that season of the year when you had the graduation commencement speeches, do you remember who yours was, allysia. alicia: i do not. i remember i thought it was very compelling, as much as i remember. eric: i was on the four and-a-half year plan at georgetown and we had one year was mother theresa and the next year was bill clinton. barbara at temple had helen hayes. no, you were at fordham and steve who is in the control room at temple, steve, you had bill cosby. oh, how about that. well, we'll see who our sons and daughters get when their time comes. thanks for joining us this afternoon. allysia, good to have you here

in new york. alicia: good to be here. eric: we'll be back later on at 4:00 p.m. eastern with more. paul: welcome to "the journal editorial report," i'm paul gigot. the battle between president trump and congress heating up as the house judiciary committee voted to hold his attorney general, william barr, in contempt for refusing to provide lawmakers with the full mueller report. the president asserting executive privilege over the unredacted report and underlying evidence and fighting congress on another front as well with treasury secretary steve mnuchin telling lawmakers he would not comply for a request for six years of the president's tax returns, prompting a subpoena from the house ways and means committee. democrats are objecting