the president in the oval office right now an getting reports of reporters in the room including kayla tauschewe'll see the tape when the reporters come out of the oval office but just to update you on the newsier items from the folks in the room, one is the president was asked about that tariff deadline of march 1st saying i set it at march 1st if i see substantial progress being made it would not be inappropriate to extend that deadline another hint from the president that that march 1st deadline for new tariffs on china is softer than the administration suggested at the outset of these talks. the president saying if we are doing well i could see extending that the secretary mnuchin said in the meeting the expectation is to conclude this quickly the president saying he's recommending a meeting with xi jinping in march also, the president here is asked whether -- what the chances are that a deal might happen the president says it's more likely that a deal does happen now that vice premier of chin

kayla tausche is following this ory for us from washington tonight. good evening, kayla. >> good evening, sue. the u.s. and china touted tremendous progress in their discussions here in washington this week, edging closer to a deal by a march 1st deadline that would art tariff hikes or potentially remove tariffs on $250 billion of u.s. goods and chinese goods altogether. the president speaking from the nooval office this aft cited that tremendous progress and said he is pleased with what china has delivered. >> it's a very complexnd a very large -- it's the largest transaction ever made action to be perfectly straight. we have to get this put on papem at point if we agree. there are some points that we don't agree to yet, b i think we will agree. i think when president xi and myself meet, every point will b agreed to. >> reporter: the chinese side lioffered to purchase 5 m tons of u.s. soybeans, but now comes the hard part. in a f statementlowing the talks, the white house put out a statem states is particularly focused on reaching meaningful commitmen

kayla tausche is in washington tonight. >> r as preside heads to vietnam tocldefuse r tensions with north korea, he's touting another area of deescalation, trade with china, telling u.s. governors he's close to a deal. >> we're going to have a -- another summit. we're going to have signing summit, which is even better, so hopefully we can get tt completed, but we're getting very, very close. >> reporter: talks with china have intensified over the last week. china's president, xi jinping, touting significant progressnnd a delegat negotiating on his abehalf staye extra two days. the results, according to tweets from theenpres a deal in the advanced stages. progress on intellectua property protection, technology transfers, agriculture, services, and currency. and a potential deal announced at his florida resort, ma a-lago, in late march. president trump credits tariffs for gettings talks t far. >> tariffs are hurting china very badly. >> reporter: but investors and business leaders are breathing a sigh of relief that tariffs could be rolled back. here's warren buffett. >> i'm relieved at the

kayla tausche is in washington >> for a divided congress, a wish list from the president. from urgent priorities -- >> congress has 10 days left to pass a bill that will fund our government, protect our homeland and secure our very dangerous southern border. >> to pipe dreams. >> both parties should be able to unite for a great rebuilding of america's crumbling infrasucture. >> t requests to lift a logjam. >> this new era of cooperation can start withly fin confirming the more than 300 highly qualified nominees who are still stuck in the senate. >> according to theartnership for public service, fewer than half the political appointmentss at the departmf labor, justice and interior are filled. the president's cabinet has six acting officials, a record. the top senate democrat blames the commander in chief. >> he's failed to nominate anyone to a o fifth our government's top positions. this has nothing to do with the senate. >> with lawmakers still reeling from the shutdown, movement on other issues may have toome from the white house. the near ter to dos, cutting energy regu

but first, kayla tausche has more on the >> reporter: after two days of cabinet-level negotiations and just one week before a critical trade hdeadline, bresident trump and the chinese vice premier say a deal is likely than not. >> i would say that it's more likely that a deal will happen. the fact that they're saying, andhis is a very high delegation. this is a man who is revered all throughout china, as the vice premie so the facthat they're willing to stay for quite a bit longer period, douing up thetime, that means something. i think there's a good chance that it happens. >> reporter: despite that optimism, the deal is not done yet. the chinese delegation will be staying in washington for two more erdays, a which point the president's advisers will recommend whether to extend that march 1stdeadline. the president says there will be at least one more round of talks and then awe summit b him and the chinese president at which the biggest decisions will be made. so far the.s. team says there has been progress made on currency and on the issue of chinese companiestealing the technology

kayla tausche rorring that development moments ago.s lower on the day on concerns about global growth sliding is further the dow at the lows of the day down by 360 points, 1.5% that's what the s&p is down, as well. nasdaq is down a little bit sharper than that. we do have the traders here at the table to tackle all of that and more joe tear know val along with jim eleven tho

bob pisani tracking the action from the floor of the new york stock exchange and kayla tausche with us in a moment. headlines on today's trade that sparked the drop and steve liesman with new concerns about global growth. bob, you first >> the markets have three problems today that touches on everything you just mentioned. trade, global growth and most importantly, market valuations just take a look today besides the headlines on the trump chief meeting and meeting, or not meeting before that, sizable business and trade talks, he's the optimist in that particular group that didn't help markets europe and england and then european union, talk about lower forecasts, growth forecasts, depressingly lower numbers and the emphasis of what i've been doing for the last week or so, price these stock markets. the valuation of the stock market, so far, substantial school that believes there will be zero percent eps growth in 2019 if you believe that right now, the market is about 17 times folks, very expensive. historically, the market grows 6% earnings per year 15 times multiple. if you believe

steve liesman is with the key indicators and ylan mui with the growing and kayla tausche with the trade negotiations we begin with steve on the economy. >> thanks. the state of the union's economy is strong. the trump economy going 2.98% compared to 1.6% in the six quarters before that let's look at the sources of growth we look at the difference in the contributions with various factors. inventory is a big factor and equipment spending a lot of that happening before the tax cuts maybe there's more to come consumer adding a bit. federal government adding a bit. you could see that from the bigger deficits, but residential spending has been one of the standout negatives there job growth under president trump, 209,000 per month on average over the course of his presidency compared to 204,000 before that. the unemployment rate down 0.7% and more americans come in to the workforce. the question is not whether the state of the union's economy is strong, it's the question of whether it will stay that way. looks to be some weakening in the fourth quarter may be a little bit in the first but mos

kayla tausche is in dc with the very latest. hey, kayla. >> the next week delegation led by u.s. trade representative with steven manuchin and then as for the march 1st deadline, white house officials expect the president to signal tariffs will not escalate so long as talks are progressing as we have reported that would essentially render that march 1st deadline null matters could be complicated by an executive order that the white house is expected to release in the next couple of weeks that would widen the ban on huawei and zte technology its release could tie the hands of companies buying hardware and deepen the divide with internet companies in the western hemisphere versus the east here's ceo chuck robins. >> i don't think getting to some balkanized internet is the right answer because so many things we can do with the technology are going to require us to maintain connectivity which is why we have to get the cyber security stuff right and the trust right and, you know, notwithstanding whatever different governments think about technology providers. >> the u.s. has long said

kayla tausche in washington. >>> more "squawk alley" is ahead.&p 500 is up 0.4% we're back in a couple of minutes. >>> i am scott walker. here's what's coming up. aaron brown is back first time since making a big move. where she's investing now and why as we look at the state of the market >>> and investor david tepper turning up the heat on brent saunders leslie picker with new reporting and what could happen next and the call of the day takes on cloud play what separates winners from losers jon fortt, see you in a few. >> we'll be watching that. thanks, scott. >>> when we return, the buying opportunities in the faang group. "squawk alley" after a quick eak. the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. >>> checking where we stand across the ma

afternoon in washington where new trade talks with china are under way back on the home court now kayla tausche is in dc with the very latest. hi, kayla. >> reporter: hi, tyler good afternoon deputies from the two countries were meeting this morning beginning around 9:00 a.m. at the office of the u.s. trade representative joined later in the week to wrap up these talks by the principles of both countries. lighthizer and china hawk peter navarro as well as the commerce secretary and nec director larry kudlow this is the last round of trade talks with china before the president, president trump heads to vietnam for his second summit with north korea's kim jong-un and before that march 1st exploration of the temporary trade truce, trump said multiple times, be willing to extend that if talks are going well. as for what's on the agenda this week and what is left to essentially cross off the list before a memorandum of agreement could be notched, well, a ustr spokesperson said we have until march 1st for negotiations for a constructive process, not discuss specifics or negotiate publicly so far, the

let's get to kayla tausche in washington with all the details. >> hey, kelly. president trump tweeted yesterday, not only had enough progress been made to delay that deadline, the talks not only progressing but could be nearing conclusion here is what he said yesterday he said that another round of talks in the u.s. could be on the table followed by a summit with president xi jinping. >> i told you how well we did with our trade talks in china and it looks like they'll be coming back quickly again and we're going to have another summit we're going to have a signing summit, which is even better so hopefully we can get that completed but we're getting very, very close >> that signing summit is expected to be at mar-a-lago in march but what gets signed exactly is still a question. the president and his top trade officials sparred on friday, set a memorandum of understanding is simply not enforceable. >> i don't like mou's because they don't mean anything better off going into a document never a fan of mou. >> mou is a contract the way trades are generally, people

that's what i would recommend if asked. >> kayla tausche just reported that the number that is being floated around in additional chinese purchases of u.s. goods something on the order of 1.2 trillion over, i believe, the next decade. i'm not sure the time period was specified. does that number smell right to you? >> no. first of all, we have to be able to sell them things that they want to buy that are ours. if you look at the money, the things we sent to the chinese, about a third of it was aerospace, part of it was electronics and with the total 40% were telephones. only so much of our stuff that the chinese can buy, so them promising over the next ten years i'll buy a trillion dollars worth of things, i think that's unenforceable i'd rather have the chinese say, look, over the next 18 months, the trade deficit by 15% that would be $50 billion. i would personally rather see the chinese commit to that than say over the next ten years, i'll spend a trillion dollars. i think goals in life are better when set in a smaller time frame that you can really measure. >> dennis, thank you ve

kayla tausche did make comments on trade negotiations. seemed to say that he would meet with president xi sometime after the coming meetings, in his words resolve remaining details. >> i was surprised how much of the 53 minutes he spent talking about china, despite original billing of the speech as declaration of a national emergency. he talked about this being the biggest deal ever. he talked about the fact he believes talks are going well, he said whatever that means, not laying down detail on where things currently stand, saying chinese delegation is coming here next week, and he is considering the possibility of moving that march 1st deadline if he feels talks are going well so certainly that would be welcome news to the market which wants to see progress on the trade front, but interestingly he said he would get democrats in the room who have been criticizing his positioning and posturing with china he said he would call on speaker pelosi and leader schumer to come and sit down with the chinese delegation or with president xi to talk

kayla tausche rorring that development moments ago. stocks lower on the day on concerns about global growth sliding is further the dow at the lows of the day down by 360 points, 1.5% that's what the s&p is down, as well. nasdaq is down a little bit sharper than that. we do have the traders here at the table to tackle all of that and more joe tear know val along with jim eleven thol this, megan shoe and women weiss. weiss, this is a big development that kayla breaks on the heels of kudlow interview today in which he said, "there's a pretty sizable distance to go in these u.s. and china trade talks." this is a pilon. the market selling off even more. >> i would expect more volatility as we get to march 1st. now expectations of a meeting should have been removed from the market today as of today because we didn't know but this is the seminal issue, the only thing important going forward because the impact is so significant one way or the other. jimmy and i were just talking about it i think you're in no-man's land. if we get a deal, the m

let's get the very latest from kayla tausche with more on this.e us a sense if this is a sign of real progress or is this the president trying to notch an early win here. >> well, i think that the question is whether there is enough progress for the president. he has been known to move the goalposts in these talks. he's never said exactly what his nonnegotiables are in this process. so certainly the fact that the two sides were negotiating throughout the weekend, he listed in his tweet a bunch of the different buckets that they were talking about, but he has communicated to his trade team that he wants a deal and it seems like they have reached progress on enough of those issues for them to delay the deadline. but we've been reporting since the first week of february that the white house was planning to move that did li move that deadline. bruh certainly see but certainly seems that nothing major happened to call off the talks so therefore the deadline is being moved. >> i was going to say, probably no more than these two men on this earth that ca

kayla tausche with the latest on that in washington hi, kayla. >> reporter: hey, mike official whitent this morning was that much work remains but that the two stids are working toward a memoranda of understanding to have the areas of agreement and will continue working on what they called intensive and detailed discussions but the president was optimistic enough today to say there's still a possibly of extending that march 1st deadline and declined to say what it would take to get a deal, only that talks are going very well, the u.s. will win billions and billions of dollars in exchange for the trade deal and he talked a little bit about next steps and what happens from here. >> i want it to be good for china and i want it to be good for the united states. we'll see what happens china's coming here next week. they're coming home, the traders. and then china's coming here next week and then i'll be meeting with president xi some point after that to maybe -- for some remaining deals we'll make them directly one on one ourselves. >> reporter: so, as a potential de-escalation of tariffs

for "nightly business report," i'm kayla tausche in washington. >>> the u.s. is also trying to settle a trade war with and now that country is celebrating the lunarew year of an impact the tariffs are h hang on its economy. eunice is in beijing. >> reporter: it isn't clear just how much work is going to get done on trade this week the chinese government is officially closed for the lunar new yeaoliday and the timing isn't particularly convenient, given president trump's march 1st deadline, only a few weeks ay. though some officials tell me they are working at least part of the time. a tremendous amount of work still needs to be done. trade representative bob lighthizer a steven mnuchin are expected to come t a beijin fother round of talks. they may have to work out the logistics of another trump-xi summit andhey have to handle many contentious issues like forced technology transfers. the leadership here will be able to get another read on the economy, the lunar new year is istmas equivalent to c or thanksgiving. people go home for big family events and buy a l

kayla tausche has more from our nation's capital. >> reporter: for the fourth time two months cabinet level officials from the u.s. and china met formally t keep working to endi the year-longtr e spat. the u.s. was led by robert lighthizer and sven mnuchin. the chinese led by the special envoy. they are trying to correct rights and agriculture.property solving these issues would require china to make permanent changes to its economy it's been unwilling to make before. observers aren'tti stic. >> we'll probably get a lot of chinese promises, but life isim abouementation, compleme d you're unlikely to see that. >> president trump wants manufacturing to move back to e u.s. but apparel makers say there aren't a lth of options. >> we don't have a whole lot of choices when we vacate china, which meanshat prices will go up and you will be seeing that in march, whether there's an agreement or there's no agreement. >> trade attorneys say a decision to delay otherwise automatic tariff hikes must be put in place by tuesday in order to be effective march 1st. this set of negotiations is expected

team, including secretary mnuchin, are in china as the latest round of negotiations continue our kayla tauschecloser look, but, first, lawmakers in washington reaching a budget agreement, unclear whether the president will sign it at this hour. ylan mui has more on the looming shutdown from washington ylan >> reporter: sara, there are several reports that the president is expected to sign this deal. democratic lawmakers have been getting briefed on the details this morning house speaker nancy pelosi told reporters as she was walking into that meeting, quote, i think we're in a pretty good place. republicans are also going to be conferencing this morning as well, but the caveat here is that the final text is still not ready. we're expecting the bill to be something like 700-plus pages so folks want to withhold judgment until it is public however, the top republican negotiator, senator richard shelby, did speak to president trump over the phone yesterday, and he sounded pretty optimistic after that conversation. >> i think that we're off to a good start with a lot of people, especially the caucu

for that kayla tausche will be monitoring in washington good morning, kayla.like the grilling that many white house and administration officials could expect from a democratic-led house, this is expected to be something more of a friendly fire from the house ways and means committee today, ambassador robert lighthizer has challenged traditionally republican notion of free trade at all costs and is has also espoused many labor friendly policies i'm told the democratic chairman of this committee even plans to compliment lighthizer in husband opening remarks before today's hearing, but what the members of this committee, 25 democrats, 17 republicans, really want to be hear from the top trade official in the united states is what exactly is being discussed with china and what it will mean for the economy and their comments going forward. they tried to get at some of those answers in behind-the scenes briefings earlier this week those wanting to whip team and vote-counting on monday and tuesday, and he spoke with the democratic members and their staffs, but all the

but we begin with the first possible signs of progress on moving towards some kind of trade deal kayla tauscheest on the negotiations kayla? >> reporter: thanks, morgan. we got a glimpse into those talks just about an hour ago in the indian treaty room in the eisenhower, the two sides flanked by robert lighthizer, peter navarro, the trait executive and the secretary of commerce and their chiefs of staff were in there as well. across the table vice premier and newly special appointed envy for china's trip who has been tasked with negotiating on behalf of president xi jinping himself. that's an issue that's come to the fore with china wanting to know from the u.s. side who speaks on behalf of president trump. who here hold the view that he agrees with most because multiple times throughout the course of these negotiations, they have believed that they reached a deal to hold off on tariffs only to have things escalate when a different figurehead from the administration leads the talks here's what we know about where things stand right now first reported by reuters which cnbc has later confirmed,

and china reports of significant progress are being made on some key issues kayla tausche has the very latest kayla? >> principipals have been shuttling back and forth with the eisenhower building and the trade representative, what's expected to be a day of negotiations with the formal indian treaty room when the press got a glimpse, a somber food with hands folded by the officials at the table the two sides trying to hash out half a dozen areas of agreement on structural issues that started this trade war in the first place and the u.s. also wants china to make a handful of concessions in the coming weeks on things like making more purchases of u.s. goods and rolling back tariffs that preceded this current conflict it's whether china will agree to any of this. the embassy of china in the u.s. declined to comment but suggested that a statement may be coming from the delegation that would potentially signal positive movement. >> there you see some of the officials coming out of one of the buildings where they've been doing some of the negotiating and the meetings how close is the u.s. a

guys >> kayla tausche, thank you. >>> u.s.over 200 times in earnings and investor calls so far in the first full week of february. with 60 of the biggest u.s. companies generating 10% or more of their sales in china. clearly getting a deal done before the march 1st deadline is critical joining us is an expert on these matters, stephen roach, current yale university senior fellow. longtime china watcher do you share the optimism out there in the markets, and as kayla outlined in d.c. over a potential deal >> good morning, sara. look, china's facing some cyclical pressures on the economy that are likely to remain intense through the spring before stabilizing and showing improvement in the second half of the year. i don't think we're going to get china to give on its key structural issues of industrial policy and innovation in response to cyclical pressures in the economy so i think the optimism which is looking for china to cave because of cyclical pressures is probably going to turn out to be wrong. >> you are talking about the

kayla tausche.e financial and founder of bronson group out of all the things that we talk about and you think about every day, is china one of the big ones or the other things? >> china, i mean, the fed has dominated the process at the end of 2018. china was right there behind it. throughout the year i think the trade war was probably the biggest thing adding to volatility then the drop was more fed induced. you had the word in that last interview about the asymmetric nature where we are. unfortunately, i kind of do think that right now if a deal doesn't happen, it's really bad. and if a deal does happen, which it will, it's just sort of good. it's mostly priced in. and none of us can quantify it clearly think the market is expecting that deals come. and i think the market's right to expect it both sides desperately need one. president trump needs one more politically. china needs one more economically at the end of the day, i think it's going to happen >> how about you you've always had an internat

our kayla tausche has the latest good morning, kayla. >> the talks went into the evening and culminated blair house here across the street into the evening. they kicked up again this morning just about an hour ago i saw the treasury secretary's chief of staff hurrying in a little bit later with a binder that says china meetings on it i know that doesn't give you much here's what we know from our sources about the state of play between these two countries as they stand right now first we know that china has made a substantial offer, an increase to its earlier offer to reduce the u.s. trade deficit. this would include buying more agricultural products and energy products we know that there are memos being drafted on these six key issues that would provide structural changes to the chinese economy if in fact china does agree to them we saw president trump tweet yesterday in a statement that appeared to signal that he was willing to back off this potential ban of chinese companies from participating in u.s. 5g build-out. overall according to a senior administration official, talks are movin

kayla tausche is covering that story. >> reporter: deputy u.s. trade representative is leading talks in beijing accompanied by under secretaries from treasury, commerce, agriculture and many other arms of the administration it's a return trip for this group. they were there in january just a month ago. they're going to lay the groundwork now for treasury secretary to arrive on wednesday to continue the talks at the highest level because the u.s. is still looking for formal concessions from china on structural issues and wants to agree with beijing on how the deal will actually be enforced it's the yut come outcome of the negotiations that will determine the president's next step. higher tariffs impacted trade flows. the import of chinese goods subject to that higher 25% tariff slowed while the lower 10% tariff on 200 billion in chinese goods has not caused a meaningful decline part of the reason that is because chinese producers lowered costs to cover what u.s. businesses are paying. they look at doubling those tariffs in just a few weeks. we're

kayla tausche. >> reporter: they're sanctioning four governors of venezuelan states in line with thegime two of them share a border with colombia where clashes broke out over the weekend as they blocked humanitarian aid from the united states from arriving the release from treasury says the new rules block any dealings with individuals or any entities in which the individuals hold a more than 50% stake, but it emphasizes that sanctions are meant to change behavior and they're not intended to be permanent. this comes as the vice president, mike pence, is heading to colombia to meet with the opposition leader, juan guaido this is a way for treasury to increase pressure on maduro allies ahead of that carl >> the vice president tweeting about that even as you speak, kayla. thank you. watching some of the venezuela news today. >>> a new wave of apps cutting ties with facebook over user data collection. "the wall street journal" reports thatseveral fitness an wellness apps stopped sharing sensitive information related to users' health. joining us, recode editor at large and cnbc contributo

kayla tausche was there in the room and has the latest summary of what took place >> reporter: afters of cabinet-level negotiations and one week before the deadline on trade, president trump and the chinese vice premier both said a deal is very likely. >> i would say that it's more likely that a deal will happen the fact that they're staying -- this is a very high delegation this is a man who's revered all throughout china as the vice premier. so the fact that they're willing to stay for quite a bit longer period, doubling up the time, that means something i think there's a good chance that it happens. >> reporter: despite optimism, the deal is not finished and not ready for prime time quiet the chinese delegation staying in washington for two more days and president trump said at least one more round of talks before he meets with the chinese president likely in march to hash out what he calls the bigger decisions on the table. as for issues that have been discussed, we know that currency has been finished. that agreement has been reached according to the treasury secretary and accor

kayla tausche, of course, has been covering the u.s.de element in all of this, and as we were saying with eamon a moment ago, kayla, maybe that gets addressed in the coming hour, maybe not. >> reporter: yeah, maybe if the president takes questions or if he decides to go off script, perhaps that is something that he could address here in terms of where this national emergency declaration and the china talks sort of fit together here is the president is essentially taking a something for everyone approach going into the 2020 election season as eamon was just referencing you know, there's this idea that the president if he's going to be back away from this extremely hard line that he's pushed on china for the last year in order to appease the stock market, to appease fortune 500 executives who have been talking to him about this, then he needs to provide something for his base so that is the border wall and this declaration of national emergency. in the meantime while he's seeming to potentially move towards a deal with china that would se

kayla tausche has been monitoring that for us and she is on capitol hill with the latest kayla? >> reporter: morgan, this hearing is billed as an update on the u.s./china relationship, but so far the conversation has touched on china in great detail, but also the canada/u.s./mexico trade agreement which lighthizer says if that doesn't pass, it would be a catastrophe for the country, and also some of the bilateral talks going on with japan, europe, and other allies of the united states but on that china deal, since i last spoke with you guys on the air, the ambassador has said that he hopes that any deal will have a fully enforceable currency chapter and also, that there is much work to be done. he has noted that china is pushing for all tariffs to be removed, but has so far not committed that the u.s. would follow through on that certainly, that would be a key portion of any deal. but as for what happens this week, of course, the president made the decision to delay the automatic tariff hike on march 1st, this friday, from 10% to 25% on some $200 billion in goods imported from c

kayla tausche has the latest from the white house >> reporter: the president spending a significant amount of time in that national emergency declaration talking about china and those ongoing trade talks with the u.s. team on its way back from beijing, setting up for another round of talks here in washington next week. the agenda is unclear as is the specific progress notched in bay ying this week the president today said he would be willing to extend that march 1st deadline just two weeks away if, in fact, these talks continue to go well. here's the president earlier >> it's very complicated there are many, many point that we're bringing up that nobody brought up or thought to bring up but it's important. we were on the wrong side of every one of them. there's a possibility i'll extend the date and if i do that, if i see we're close to a deal or the deal is going in the right direction i would do that at the same tariffs that we're charging now i would not increase the tariffs. >> reporter: when the president was asked another time about the possibility of extending that date he said you'

. >> bob pisani, thank you >>> let's turn to kayla tausche in washington where trade talks between the u.s. and washington are continuing >> we know the midlevel talks are still happening at the office of the u.s. trade representative today earlier we saw treasure secretary steve mnuchin leaving the building, braving the snow there's a blizzard here in d.c this is ahead of cabinet level talks happening there tomorrow this deadline of march 1st is fast approaching for the u.s. to make a decision on a possible extension as the change would need to be implemented before shipments arrive march 1st of course, president trump is heading to vietnam to meet kim jong-un in the next week or so president trump is suggested multiple times he'd move the deadline which china in a state-run newspaper says is proof a deal should happen soon. trump's words further stoked the stock markets of the u.s. and increased pressure on the trump administration to close the deal with china the u.s. is currently trying to extract more concessions from china in exchange for that possible extension of the deadline c

kayla tausche joins us with more on that front.ecky those high-level talks with close with a meeting at the highest level. president trump at 2:30 today will begin receive the chinese vice premier as special envoy. as for what's happened in the last month since the two met, there have been two more rounds of high level talks. lots of paper passed back and forth. and the contours of a deal emerging around these six issues including forced technology transfers and intellectual property to this begins. and china has also increased the offer to buy agriculture and energy products. the u.s. has asked for action on ten items before the presidents of these two countries will need to seal any deal which if any of those items china has agreed to is unclear, as positive. ending with a lively dinner at the blair house. we will see if that camaraderie continues into today and what exactly some of this language looks like if and when we get a statement from the delegation. >> i don't know what it means, that things are going well then you get b

kayla tausche joins us with more >> good morning.na behind the scenes next week the treasury secretary and lighthizer will go to beijing. they are going back and forth to get a deal on paper. this would likely take the form of a memorandum understanding. once those points are agreed, president trump and president shwe axi are expected to take a meeting president trump said he wanted to make a deal and praised xi but said he wasn't giving in just yet >> we've put massive tariffs on china. it's hurt china's economy badly. i want them to make a fair deal. we have a good chance to make a deal i don't know that we're going to make one, but we have a chance if it's going to be a deal, it's going to be a real deal. not a stopgap. >> meanwhile, the white house is working on a campaign to support the business world for the new mexico/u.s./canada deal. and gop senator pat toomey says democrats are still resisting it quote, i don't see this as a high priority for speaker pelosi maybe i'm mistaken i don't think the path forward is all clear brad

kayla tausche joins us with more last hour we heard about the perspective from beijing on this, but what'sspective from here in washington? >> well, the goal of washington is to put together the framework for an agreement with china that president trump and president xi would formalize at a future meeting between the leaders. earlier in the week they tried too hammer out the fine print. now the south china morning post is reporting that president xi could meet with secretary mnuchin according to their sources. up until now, there had been no text for a potential deal. the date for a meeting between trump and xi remain between what the u.s. has said publicly it would accept and what china has said it will offer but at a cabinet meeting yesterday, president trump said he wanted a deal he believed china does too he'd be willing to extend the truce if talks are still going well >> the 10% or $200 million goes up on march 1st. so far i've said don't do that if we're close to a deal where we think we can make a real deal, i could see myself letting that slide for a little while. but generally sp

want to get over to kayla tausche who's in washington with the latest details >> good morning.the talks with china will take place in d.c. this week. you have chinese officials that are going to be in town beginning today. continuing those talks principles will be meeting beginning on thursday. the white house says the talks have a view to achieving needed structural changes in china but also says the two sides will discuss china's pledge to buy more goods yet again the president was briefed over the weekend on where things stand with china in a tweet he said of this china trade deal that there is big progress being made on so many fronts this is as the white house works to avert with beijing. that would happen in ten days. but they're also considering snapping new tariffs on imported cars most of which comes from foreign allies the commerce department officially submitted its study to the president over the weekend. it's unclear when the report will be made public if at all or what its recommendations are but a flurry of opposition has already arisen from auto industry groups

let's begin this final hour of trade with kayla tausche, ylan mui. kayla, let's start with you on trade. >> reporter: underpinning a market rally with optimism on talks in china to produce some sort of trade deal the president speaking in the oval office with the president of colombia earlier said talks in beijing are going well. >> we have a big team of people, very talented people over in china right now, negotiating on the china deal it's going along very well we'll see what happens but i think it's going along very well they're showing us tremendous respect and something which a lot of countries didn't used to show the united states they're showing us respect now. >> it is on that negotiating team on which the hard work here falls. the president has asked his negotiators, led by u.s. trade representative ambassador robert lightheizer, that have alluded for decades. we have learned from sources briefed on the talks that president xi jinping is expected to meet with u.s. negotiators on the ground in china to reciprocate trump's meeting with vice pre

trade deal with china as he extends the deadline for a deal past the previously set march 1st date kayla tausche washington with the latest kayla? >> reporter: the most optimism yet, morgan, coming from the president today. in nearly 30 minutes of televised remarks to a set of governors visiting the white house, he talked about that north korea summit that's going to happen in vietnam he said it was going to be tremendous he called on governors to lobby for infrastructure spending, talked up the 200 miles of wall that will be built pretty soon with new funds, but the trade headlines is what the market is focused on and what we're honing in on right now. he said on china he said there's going to be a signing summit between him and the president of china at some point soon, that they are making progress, and let's listen in on what he said about that >> it was a tough -- it was a really tough negotiation, and same thing with mexico, but in the end we got it done, and it's a great deal for us, and it's a very good deal, i think, for canada and for mexico. they have to get it approved also we have t

kayla tausche joins us now. >> reporter: larry kudlow was in the white house briefing room and gave reportersgoing after touching base with those negotiators. >> and i talked to the group they are covering all the ground they are hard at it. they are going to meet with -- with president xi so that's a very good sign, and they are just soldiering on, so, you know, i like that story, and i will stay with the phrase that the vibe is good but i can't give you the details. >> the vibe is good. the team met with the vice premier and held a photo-op and had an expanded bilateral meeting in beijing we're still awaiting with what happens with the march 1st deadline kudlow says there's been no decision made on extending the deadline, but sources say it's actively being discussed and while the flexibility signals positive movement in talks, the existing tariffs, 25% on $50 billion in chinese imports and 10% on an digital 20 billion will stay in place in the last year u.s. companies paid more than $11 billion in tariffs on chinese goods coming into the u.s., $2.5 billion in november alone that's the most

. >> thank you kayla tausche now with the state of the trade. >> reporter: it was a main campaign pillar trade will figure prominently in the state of the union last year the president called to replace old and unfair deals with new ones. >> we will work to fix bad trade deals and negotiate new ones and they'll be good ones but they'll be fair. and we will protect american workers and american intellectual property through strong enforcement of our trade rules. >> reporter: so far, the president's made the most progress with allies controversially using tariffs to bring them to the negotiating table. the result minor changes to an older deal with south korea, a deal with europe that's still in the planning stages and could result in more natural gas and soybeans sent to europe and then talks with the united kingdom and japan that are ongoing and a deal with mexico and canada awaiting approval with congress but deals with adversaries are more elusive, notably china. high-stakes talks continue through this month but the deficit with china keeps growing and that has been one of the presiden

kayla tausche is in washington with the latest. >> reporter: we know president trump tweeted yesterdayhat an enough progress was made with china to delay thetariff deadline and today the president said that not only had talks progressed but they're nearing conclusion with another round of talks in the u.s. followed by a summit with president xi jinping. >> i told you how well we did with our trade talks in china and it looks like they'll be coming back quickly again and we're going to have another summit we will have a signing summit which is even better so hopefully we can get that completed but we are getting very, very close. >> reporter: that summit expected at mar-lag-o in late march. what gets signed is not clear. it's clear that the president wants to make one with china and with others. >> we lose $800 billion a year on trade think of it. it's inconceivable no one knows whatthat means. and we're fixing that all up we start with mexico, canada, china. china's the big one. 50% of the number. even more. we are doing well. that could happen fairly soon. >> reporter: prumesident tru

kayla tausche is tracking it with the latest. >> the second day of negotiations for this round will geter way as that delegation of number two officials from the u.s. trade representative, the departments of agriculture, commerce and treasury work to edge closer to a deal with china before treasury secretary mnuchin and u.s. trade representative robert lighthizer join in on thursday and going into the week there's still quite a bit of space separating the stances. china was willing to help close the trade deficit, a priority of president trump and structural issues and enforcement were elusive. the u.s. may be willing to remove or relax tariffs as china is asking and some concessions on recognizing china as a market economy or allowing access for chinese companies in the u.s. are unlikely now, if a deal comes together or potentially just moves toward a deal later this week, the march deadline may get moved and talks solidify on that trump/xi summit on a to be determined date and time there's debate there, too. a senior administration official tells me there's no meeting on the books and

little bit more time to do so carl >> kayla, we're going to watch that closely thanks very much, kayla tauscheive days until another government shutdown and things looked so optimistic on friday. >> they did, carl, but right now there is a stalemate, and it's over two very separate but related issues the first, of course, is funding for the border wall. sources say the democrats have been willing to offer between $1.3 billion to $2 billion for a physical bearier, less than half of the $5.7 billion that president trump originally asked. democrats seem to want to cap the number of beds available for illegal immigrants who are captured inside the u.s. they wanted that cap to be at 16,500 republicans said no way. that could result in potentially criminals being released back into society now, meanwhile, over at the white house, kevin hassett is saying if another shutdown does occur because of an impasse over those issues the economy could still take it. >> the economy has moved far with all of this uncertainty we certainly hope it reselves quickly but, you know, i think we've seen what happened be

kayla tausche has the latest. >>> the trade truce with china will either end or be extended principleseet thursday u.s. negotiators, all the usual suspects, this time including china hawk and white house adviser peter navarro. the u.s. is pushing for permanent structural reforms that would be enforceable. china pledged to buy more soybeans and energy. the two countries agreed any deal on paper would be in the form of a memorandum of understanding. the contents are still to be finalized. president trump was briefed on saturday on the last round of talks in beijing, following which he tweeted about the progress being made on so many fronts he called it big progress that was being made but as the administration moves to de-escalate tariffs on china, it is considering new tariffs on autos and auto parts, a policy that would target u.s. allies. trump commissioned this study last summer as a way to gain more leverage over europe and canada since then, he suggested he wants a 25% rate it is unclear if the commerce research supports that or when we'll see the report itself or whether we'll eve

and china continue today cnbc's kayla tausche has the latest from washington. >> reporter: talks expected evening and go through tomorrow the treasury secretary, the vice premier of china shuffling back and forth across 17th street here in washington between the eisenhower building and the office of the u.s. trade representative what they're discussing we have learned from sources are six memorandums of understanding on the structural issues that the u.s. has been trying to get at throughout the course of the year the u.s. proposed a separate ten-item to-do list for china, short-term deliverables that the u.s. wants to see china deliver on in the next month or so before the two presidents meet to make sure that china is committed to doing the deal and unclear which of those if any china will agree to and bloomberg reporting that china tabled an offer for additional $30 billion of u.s. agricultural products just a few minutes ago, sean hannity when's in the president's inner circle sent out a tweet essentially touting that story and new reported offer from china signaling that that was --

. >> libby, to that point -- we were just talking to kayla tausche about it the fact that lighthizer didn't answer the question about what would happen to the tariffs the u.s. has in place currently on those chinese goods and metals coming into the country. your thoughts on that? >> yeah. it's a great point and i think that, you know, ambassador lighthizer and president trump are kind of a meeting of the minds here, that they believe that tariffs are an effective negotiating tactic i think president trump has said that tariffs have gotten a better nafta agreement, that they brought the chinese to the table. and so i think that they are going to be, you know, very ambivalent about rolling back tariffs too quickly. because i think both of them, both the president and bob lighthizer agree that tariffs have been an effective tool here in terms of increasing u.s. leverage over our negotiating partners. >> libby, what's your take on president trump's efforts with north korea and not so much whether it's likely to lead to ultimate victory there, but what it means back here in the u.s. is it

kayla tausche joins us with more on that front. good morning >> good morning.h sides. ambassador lighthizer arrives in beijing ahead of the high-level talks this week. the white house is hoping to de-escalate tariffs. the white house unveiled an executive order yesterday to counter china on artificial intelligence it's potentially banning chinese telecom environment in 5g. an executive order could come out this week. also dangling auto tariffs as additional leverage. the administration is trying to maintain this hard line even as it negotiates a deal that would require significant u.s. concessions. that's a dynamic that was highlighted by president trump last night in el paso. >> my administration has taken the toughest ever action to crack down on years of china's abuse and trade practices have been unfair. i have a lot of respect for president xi, but he's representing china and i'm representing the united states >> an editorial in a state afail yited chinese newspaper says it's only that relationship that matters between trump and xi casting doubt on the rol

kayla tausche joins us from washington. >> the two sides have been exchanging papers on these issues that point in order to extend that deal. talks are at a critical juncture in washington. the vision pce premier liu he is authorized by president xi jinping to negotiate on his behalf leading the u.s. side is ambassador robert light highser who has been holding a firm line on this march first deadline and has been communicating that's a firm deadline and that in order to extend it, concessions need to be won over by the u.s. side. i'm told the u.s. has proposed a ten-item action list as reuters has also reported of short term deliverables that the u.s. would get from china in order to extend this deal, whether china would agree to any or all of those concessions is still unclear. in the meantime, companies that import goods into the rust wondering what exactly happens next week if in fact this march 1 deadline were going to be extended that could happen so it could be entered into the federal register and take effect by march 1. if there are ships on the water or shipments that are at

kayla tausche joins us with more >> good morning.essure on the u.s. to reach a deal and in that op-ed you mentioned, china warned it would retaliate yet again. china's premier who is in d.c. negotiating said the country also would not make any changes to its monetary policy after currency markets moved yesterday based on expectations for a more stable yuan going forward. despite the tough talk moamongs those negotiating, president trump said the march 1st deadline is a moving target. >> the talks are going very well our group just came back and now they're coming here. i can't tell you exactly about timing, but the date is not a magical date a lot of things could happen real question will be will reraise the tariffs. >> not a magical date. that is a break with his top negotiator robert lighthizer who has been firm about that deadline telling reporters in late january when he was asked about the possibility of an extension that there was, quote, none at all. as far as i'm concerned, my deadline is march 1st. the president's economic a