santoli here to break down the move that got started a few minutes ago when we got word out of kayla tausche'sorting as well that it looks like we're going to delay any decision on auto tariffs for europe. happy with -- >> i think for as long as a little bit of a twitch, yes, it makes sense. what i like to look at is what works when you get one of these moves. we, obviously, are just reclaiming that last hour of losses yesterday, not even coming close to doing that just yet, but it's big tech again it's not -- it wasn't the car stocks driving us higher at this point. it was basically we like when we're in the buying mood, when we think the market has had enough pain for the short term it tends to be the large growth stocks that's offsetting weakness in the banks today. that to me is a little bit of a tell of where maybe the leadership still has to be >> so auto tariffs were worth 150 points in the dow, but i'm still trying to figure out what is this crummy economic data out of china and the u.s. mean for us i mean it field feeds into the global deflationary story again. it feeds into the lower

kayla tausche starts us off tonight in washington. .the trump administration's multi-faceted trade sites and stalling on the other. today brought news house would seal aminum in mexico. or that deal is going to be a fantastic deal our country and hopefully congress will appro approve it quicy. >> it will be in the next 48 hours that ends retaliation on products like beer kegs, whisky and pork in hopes of clearing the path for the trade agreement. canadian prime minister justin trudeau expressedfi cnce. >> now that we've had a full lift on these tariffs we are going to work with the united states on timing for ratification, but we are very optimistic we will be able to move forward. w >> tte house shelving a tariff, ts time on automobiles with the decision delayed up to six months while itegiates with europe and japan, but trump hasn't ruled out those charges entirely. >> they take udvantage of on trade. it's not fair. we lost th80 billion wit european union. >> republican lawmakers who have stopped to persuade the president against tari

let's get to kayla tausche with the latest kayla. >> morgan, we've been talking about autos and steel and aluminum all throughout the day but i want to bring you an update on china where it appears negotiations between the u.s. and china have stalled with both sides digging in after disagreeing earlier this month on the deal text two sources briefed on the status of talks said the scheduling of the next round of negotiations is in flux because it's not clear what the two sides would be negotiating china hans signaled it's willing to revisit past promises on which it reneged in early may despite showing up for talks in washington last week the u.s. delegation has been invited to beijing, which earlier this week treasury secretary steven mnuchin appeared open to accepting but now sources say scheduling discussions have been put on hold essentially since the trump administration ratcheted up its scrutiny of chinese telecon companies seen as a shoot across the bow to beijing we reached out to the white house, the u.s. trade representative and treasury for comment. we did not get one befor

kayla tausche takes a look at where we epstand. >>orter: in the weeks after the u.s. and china talked tradee face to face, rift has widened. president trump doubling down blaming china for reneging. >> we had a very strong deal. we had a good deal and at the end they changed . i said, that's okay. we're going to tariff their products and we p a 25% tariff on their products. >> reporter: china's foreignai ministry that deal never existed. the u.s. has extravagant expectations. the trade now threate geopolitical issues. a u.s. warship sailing near chinese areas. korean war ng the era films echoed the current era. r an's foreign minis suggesting to china the countries could team up against washingtonphod the 2015 nuclear deal. cretary of state mike pompeo and huang ye spoke over the weekend. they said won warned the u.s. not to go too far in harming interests. google suspended android f servicm new had a way devices after the u.s. put them on a black list. congress can ban any use by huawei to disrupt rural networks. u.s. companies impacted by the trade war are cutting c

i'm kayla tausche in washington. >>> we've been reporting how tariffs are impacting ifferent businesses today we take you to different parts of the country where the trade tenons are definitely being felt. contessa brewer is with the lobstermen in massachusetts and diana olick reports on the home remodeling business in shington and we begin with jane wells at ground zero for chine import, the port of los angeles. >> yeah, you know, a funny thing is happening in th trade war between the u.s. and china, companies aorking around the tariffs. how? >> the chinese factorywn might a production site in vietnam and they simply move the production from china totn v and the chinese factory still makes the profit, but the u.s. impoer is t taxed because the goods are coming out of vietnam. >> okay. let me throw out new numbers in this trade war. according to a congressional group which monitors u.s.-china trade during theirst quarter, u.s. exports to china fell almo 20% but check this out. at the sam utime overall,. exports grew t.3%. hina is not buying as much of our stuff someones. >> we are seein

kayla tausche is breaking these headlines for you. kayla? >> reporter: kelly, we just received the joint statement between the u.s. and canada on the removal of the tariffs expected to happen within the next two days. in response, canada will remove its retaliation against the u.s. which has been in place for close to a year. they will drop all lawsuits at the world trade organization over the tariffs and open a new cons consultative process if they realize it's becoming a bigger issue in the future, the u.s. has the right to put new tariffs in place this is a significant cease-fire between the u.s. and canada, which have been trying to figure out how to move the usmca forward in the respective legislatures in the countries. we're not only expecting remarks from president trump momentarily where he's expected to address this issue we're also expecting remarks from canada's prime minister justin trudeau that will take place, flanked by steel workers at a steel plant in ontario. the same location, we might add, where canada announced retaliati

kayla tausche in washington. next is michael froman, u.s. representative thanks for coming back this june anniversary of tiananmen square seems like it could be important how do you think, if at all, it changes the chinese stance toward trying to make any sort of a deal with the u.s.? >> it's an important date in their history and all sort of domestic politics about nationalism and asserting themselves we see coming out but over the long run, we need to be looking at what's going to happen with the u.s. and chinese economies. are we going to continue to be interconnected as we have been and we see that playing out in the rare earth discussion or a decoupling in terms of trade and technology that's the bigger, probably more substantial issue than when we get a new trade agreement in the short run. >> that's an interesting point, michael. as the trade war goes on, working around for six months so as not to impact their first quarter results. do you foresee this decoupling becomes much more substantial and that power shifts away from china econ

and china escalate kayla tausche is in washington with a busy few days on your beat, kayla. >> scott, one of the worst weeks for stocks all year coming off of whiplash on these trade talks, but ending with a rather sanguine set of staples from president bush on twitter after a week where he weighed in in a very vitriolic way and he said he held candid and constructive conversations, his administration did with china and the delegation led with the vice premier and the relationship between president xi and myself remains a very strong one and conversations into the future will continue and he doesn't say exactly when those talks will resume and up until now we don't know when those talks will be held and safe to say it won't be next week and the treasury secretary will be testifying on wednesday on the treasury department's budget and of course, normally he and the trade representative ambassador lighthizer have been the ones to travel to beijing, but certainly a rather calm end and conclusion to this week where the president did increase tariffs last night, more than doubling them on

kayla tausche starts us off tonight from washington. >> in a series o meetings in washington today tohore up the prospects for president trump's signature trade deal, the usmca. robert lig hhizer meetinge on capitol hill with house leadership after hosting canada's foreign minister where aluminum tariffs were on the top of the agenda. they've been soar f been the main roadblock to the deal. the u.s. would float a proposal chart a path forward. treasury secretary stephen mnuchin said all four companies were close to a deal. >> i think we are close to annd undersg with mexico and canada. i've spoken to the finance ministers and ambassadors lighthizer i leading the effort on this, but i can assure you that it is a priority of ours. >> chrystia freeland said she wouldn't estimate how long it >> we don't believe in negotiations. it's never wise to talk about time lines to predict the future? in the meantime t, the white hoe faces a decision whether to impose tariffs, it chose tohe delayecision by up to six months as it keeps negotiations open with canada, mexico, europe and japan, all of w

kayla tausche reports. >> talks with china re-opened tonight after the dispute that the language had become public and vitriolic. president trum l isving his options open, praising chinese leadership, but scolding them for backing off their commitments. >> i have no idea what's going to happen. i did get last nighty a v beautiful letter from president xi, let's work together. let's see if we can get something done and they re-negotiated the deal. >> hiking tariffs on $200 billion in chinese goods from 10% to 25% effective at 12:01 a.m. and threatening the rest of china's imports, too. >> it will be $325 billion at 25% and we're starting thatpa rwork today. >> trade isn't the only area the trump administration is rssping up pree, it denied china mobile license to do business in the u.s. and is a lookingt revoking licenses granted to chinese-owned carriers. the security of our next generation networks cannot be an afterthought. it has to be a top-level priority now. >> tensions simmer, this could be areakthrough or a breakup of the world's two biggest economic powers battling over trad

kayla tausche in washington with more on that kayla? >> reporter: an event commemorating the country's 1930s civil war known as the long march, president xi jinping told a cheering crowd, reportedly, we're embarking on a new long march and we must start all over again the company's top trade adviser, a company that produces rare earth materials, next front in the trade war. go into electronics and automobiles produced here in the u.s. and the stock of the company that xi toured rose on a signal that china would move to protect those domestic companies. meanwhile, president trump at a rally last night reiterated his belief tariffs work and his respect for president xi said on may 9th he expected to have a call with his chinese counterpart. no word on whether that has taken place. but the u.s. is moving to help tech firms and farmers affected by these tensions. the commerce department rolling out a 90-day grace period for the huawei ban and then there are reports of a new package of aid to u.s. farmers that could be rolled out this week.

kayla tausche. we've seen the u.s. and chinese markets hit this week. the etf attracts large-cap china stocks down 7% and the s&p 500 down 3%. so if a deal doesn't get reached who has more to lose is this the right metric to look at i ng president trump looks at it and says okay, we're only down 3% and the chinese market is down 7%. we are winning by 2 1/2 times and i can do that math in my head and maybe he's right. i don't think so the chinese are looking at a much longer picture and we look in terms of weeks and they look in terms of decades and i don't think the chinese have any interest in making a deal any time soon and they have tweets saying they're close, we're not close and the market goes up and down this is now 15 months after the fact give or take when it started in march 2018 and me, personally, i don't think we're any closer now than when we were 15 months ago. >> without getting overly dramatic on this which i never do i do think if we really want the global economy to be strong or the implications for the u.s. economy are such that if y

kayla tausche in washington. joining us now to talk about what all of this means for the markets is senior portfolio manager at ubs financial services charlie barinskoy is the vice chairman of ariel investment and ace l. levine from bmi mellon joining us for the hour how do you see it? what do you do on the market >> what's interesting is it looks like a classic tit for tat strategy and game theory problem here because you have the u.s. putting on tariffs, going slowly on whether or not we're going to go with the 325, 25% on the next 325. and china going slowly signaling retaliation but a stepped retaliation. so not overly done and signaling a willingness to talk i'll say this. i think this goes longer than june i think the market has not priced in this going longer than june and today we're feeling it and i don't think we're done yet >> how much -- when you talk about getting priced in, how much more are you talking about? we're almost 5% now from the record highs on the s&p. >> right let's put it this way. the

headline crossing as kayla tausche brought us that the administration plans to delay the auto importa move in the bond market, the yields, lower all day, lower off the weaker retail sales report,he fact thap administration is going to delay the auto import tariffs. again, this is a much broader issue than just china, would affect our european trading partners, a lot of cars from europe, japan, and u.s. automakers which import a lot of their parts and their cars dow also going positive. so we're 3 for 3 now. >>> today, we're unveiling cnbc's 7th annual disrupter 50 list our ranking of the private companies whose innovations are changing the world and disrupting the status quo. julia boorstin has been working on the list since its inception and joins us with more big day here. >> very exciting the 50 companies on our disrupter list were selected from over 1200 nominees using a combination of quantitative and qualitative metrics. the companies on this year's list tackle a diverse range of industries from retail and travel to health care and biotech. some are working in entirely new fiel

president trump making those tariff threats just days before trade talks were going to resume kayla tausche in washington with the very latest. kayla? >> reporter: kelly, it's a make or break week for trade talks in china. raising in the stakes and the end date for this friday to make a deal for the biggest to see rates more than double going too slowly and trying to renegotiate. given the new demands by donald trump, china is weighing whether to pull out of talks as it did under similar circumstances last september. and progress for a deal and president xi but the foreign ministry said they're looking for more information mick mulvaney and larry kudlow and mike pence with the possibility the deal won't work wut outbut cl out but more in the coming days. >> the president claiming that tariffs are actually good for the u.s. tweeting that they are, quote, partially responsible for the strong u.s. economy. let's bring in pimco, managing director hamilton plays strategy partner and our own steve liesman but, steve, we start with you to do some fact or fiction, sussing out of the president's com

kayla tausche has the very latest kayla? >> reporter: melissa, president trump is leaving his options open with china. he both praised liu he and praised china's president who sent what he called a beautiful letter but hammering china for breaking the deal and not only hiking tariffs this week but targeting the rest of china's imports too. >> it will be $325 billion at 25% and we're starting that paperwork today. so we'll see but you know what? as president of our country, i've got to do something about it and as president of our great country, we're going to be taking in more money than we've ever taken in. >> reporter: administration officials tell me that president trump thinks the federal reserve is hurting the u.s. economy more than tariffs ever will but a steel stomach for tariffs and repeatedly told ambassador lighthizer, if there's not a good deal, he wouldwalk away perhaps now that this has spilled out into the public, the administration has been on the record about exactly what china did. they can hold them to acco

kayla tausche with the latest. hi, kayla. >> reporter: hi, kelly we're trying to parse exactly what that comment from the treasury secretary meant and exactly what they conveyed the global times that is a state affiliated newspaper in china and the editor tweeting this saying, i learned from authoritative source that china trade talks did not break down both sides think the talks are constructive and will continue consultations. the two sides agree to meet again in beijing in the future so that is the editor of this state affiliated global times in china. now it's unclear where the president stands on this he said yesterday he would be speaking with president xi jinping and unclear whether that call happened last night but the tariffs did get raised at midnight we expect to hear from the president later today at an event at 4:15 where he's honoring military mothers with the first lady he is tweeting this afternoon but about the disaster relief bill and nothing, again, so far on trade since the tweet storm from earli

. >> hold your response for one second breaking news on trade kayla tausche, what's going on >> the official between the u.s. and canada on this deal that was reached to end steel and alum nuinium. canada will end its retaliation against u.s. products, the two sides will drop all lawsuits brought at the world trade organization on this specific metal tariffs issue and canada will have an enforcement mechanism to block the transshipment through its country from places like china to the united states and if there's an issue of oversupply in the future, they could potentially open up new consultations or negotiations on this matter. this is a significant cease-fire between the two countries. the tariffs have been in effect for close to a year and it is expected to be the road block that's removed that, allowing the usmca deal to go forward. >> thank you, kayla tausche. and george, if there was a decline in live sports, it would be a disaster for the traditional media companies, right? >> that's right. but still right now, the top 100 programs, sports is still highly valuable >> it might be high

. >> let's remind everybody what kayla tausche is reporting based on her conversations with sources. the trump administration is likely going to make a decision by the end of this week to delay whether or not they'll slap on auto tariffs on european vehicles built in europe, imported to the u.s. that would move the new deadline back to mid-november right now, a vehicle built in europe and brought over here pays a 2.5% tariff and the trump administration has said maybe that should be closer to 20% or 25%. this is huge for the european automakers remember, last year, just in terms of what we brought into this country from europe, while they only -- we only sell about 6.7% of our vehicles that come from europe, it represented $62.5 billion in business for the european automakers. that trade deficit over $45 billion. that's why volkswagen, bmw, daimler, all those stocks moving higher >> fiphil, thank you. >>> we're also keeping a close eye on the retailers courtney reagan with the details for us >> so april retail sales fell 0.2% from march. that's a disappointment. analysts were looking

kayla tausche has all the latest in the u.s.attle and aditi roy standing by for tilray earnings. a reminder we have an interview coming up on that too. >> the tilray ceo coming up, instant reaction ahead of his company's earnings call in just moments from now let's get straight to bob pisani with the biggest moves on the new york stock exchange for today this rebound we saw. bob? >> it was i rebound but it was less than half the losses we had yesterday. mercedes going into the close a bit and it was on much weaker volume overall as we move to the up side. this is the good news. we had some really oversold conditions on big sectors. energy, semiconductors, china stocks even the dow jones industrial average was way, way oversold. and all of them saw bounces though mod evaluate. we did see some moves up in energy i did want to highlight that's been terrible recently energy sort of a proxy for global growth. oil stabilized around 61 names that are awful this month like halliburton and schlumberger did have modest gains but the decli

and china ended at noon kayla tausche is live in washington with the latest on the state of play and does it matter, kayla, that the talks ended so soon? >> reporter: four hours of talks last night, two hours of talks today before the u.s. team bid good-bye to the chinese officials and then we saw the top two u.s. officials, the trade representative and the treasury secretary head over to the white house ostensibly to brief the president and his economic team over there and here was the summary from the treasury secretary on his way out. >> we are done >> reporter: and what were the results? >> they were constructive discussions between both parties. that's all we're going to say. thank you. >> reporter: steven mnuchin using an adjective he's used nearly every round to describe the trade talks. what will president trump and president xi do? the vice premier said he came here to the u.s. under pressure and also communicated that it really was up to the leader in china to make a decision how to proceed. >> okay, kayla, thanks i thought we'd hear from him directly kayla, thanks very much

two people who know how this works are with me from the white house, hans nichols and kayla tausche. hans, what is the president proposing? >> reporter: i'm glad he used "threat" in there, this is both a proposal and a threat. this isn't policy yet. the president himself will decide what metrics are let when he removes this threat. they aren't firm on what the flow of migrants has to flow down to, how much it has to flow. yesterday at this time we were wondering what the president's announcement on immigration would be, there was back and forth at the white house whether anything would come today. on twitter, it dropped like a bomb last night. here is what he said, on june 10 the united states will impose a 5% tariff on all goods coming into our country from mexico, until such time as illegal migrants coming through mexico and into our country, stop. the tariff would be 5% on june 10 and go all the way up to 25% until they stop the flow of migrants. number one, they may have briefed some members of congress, particularly republicans, but they didn't get buy-in. chuck grassley, joni e

>> all right kayla, thank you kayla tausche in washington. so no deal with china. thing it does from the market's perspective it creates that political uncertainty and the fighting back and forth of the usmca and wharf we want to call it it's certainly not a positive and at best it's a negative. >> a slew of retailers out reporting after the bell, gap, ulta, costco, let's go to courtney reagan at headquarters. >> costco shares have been flat to slightly down after hours here after holding relatively steady for the last two months they did surge following the previous earnings report and haven't done much since and earnings are stronger than expected and revenues in line and the wholesale club posting strong comps more than 5.5% and the u.s. division the strongest. membership fees $576 million, a bit below estimates and above last year and there was a negative drag from foreign exchange and membership renewal rates still strong at 95% from the u.s. and canada. chief financial officer richard gallanti spoke about tariffs before going to questions and answers. >> as y

. >> matt, do me a favor i've got to jump down to washington for some breaking news with kayla tausche. we'll come right back to you i know my panel has questions for you, as well >> scott, we've landearned thath u.s. has reached a deal to lift steel and aluminum tariffs the spokesperson for prime minister justin trudeau in canada tweeted that trudeau spoke with president trump earlier today and that these tariffs on steel and aluminum were the main focal point of this conversation. we have been hearing throughout the week that a deal was close and that the trade representative, ambassador li t lighthizer floated a deal earlier this week. now we're learning that they could announce this deal to lift steel and aluminum tariffs as soon as today. the question that we don't have an answer to right now, scott, is what would take its place what sort of enforcement mechanism or perhaps new type of rule of origin-type limit on where this steel and aluminum could come from when it comes to the u.s., that's the part of this equation that we don't know yet that we're waiting to hear >> appreciate

kayla tausche is going to have much more. "squawk on the street" is coming up now >>> good monday morning, i am carl quintanilla with jim cramer and david faber. another monday, you just heard the chinese announced retaliatory tariffs on 60 billion u.s. goods europe is right across the board. that ten-year approaching two for one. our road map is going to begin with trade tensions taking stocks todayme china retaliates >> uber's big suffer, suffering the first dollars loss and shares are falling again in the market was the fix in 44 states against teva and other drug company accusing them to inflate drug prices. china is striking back against the u.s. saying it will raise tariffs of $60 billion of u.s. goods beginning june 1st the president warns china not to retaliate. "i say openly to president xi that china will be hurt very badly if you don't make a deal because companies will be forced to leave china for other countries, you had a great deal and almost completed and you backed out." jim, that confirms some of the reporti

kayla tausche's going to break down the latest from washington.the national retail federation is our guest then later, jeremy siegel is going to join us to discuss the markets and much more. "squawk box" returns right after this ♪ it's us. millennials. everyone's favorite. there's just one thing hurting us more than student loans: credit card debt. sure, dad, call us irresponsible. we're only dealing with insane living costs and housing costs. it's just not right. but with a personal loan from sofi, you can consolidate your credit card debt into one monthly payment. and get your future right. get your money right with sofi. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - annc

trade representative's office in washington kayla tausche's there with the details. can see behind this big bus there are two black suvs that currently hold the chinese vice premier and the chinese delegate that are set to arrive for trade talks. of course we have about 30 minutes before that starts they have security to go through. there is a lot of process that needs to happen before they can enter those talks. but i've just been told by the network cgtn, state chinese television network, that liu he, the vice premier, had media availability for chinese media, at the willard hotel here in washington just a few blocks away to my left, where the delegation usually stays when they come to town. no american media were present or were invited to that. but the translated quotes that were provided to us by cgtn say the chinese have come with sincerity and rational approach and the tariff hikes are not a good way to solve the problems between the two nations and that if tariffs are raised it's not only harmful for the chinese economy but also the american economy. that give

kayla tausche joins us with more on that. kayla?hey, wilf the official readout from a truncated round of trade talks came via the president's twitter account where he had an adjective for each of his top trade officials. constructive, which is the favorite word of the treasury secretary. to describe this round of negotiations during heightened tensions between the u.s. and china. he says that conversations into the future will continue that's an undetermined time frame there. it is expected that the next trip will be by the u.s. delegation over to beige i saw ambassador lighthizer just after this statement came out. i asked him when they would be heading over there he declined to comment and the treasury secretary told our eamon javers that there were no talks planned as of yet so we will wait and see compactly when this next round continues. i do know from sources who are briefed on these talks that it's expected to be a matter of weeks before the president greenlights this potentially massive new round of tariffs on the remaining

they're spectacular. >> greg, thanks for joining us >> thank you >> we've got breaking news on trade kayla tauschethe details kayla. >> we've learned that the white house plans to start the clock on passing the new nafta, the usmca, as soon as today. the first order of business is submitting a statement of administrative action up to congress that starts a 30-day window after which the white house has to send the implementing bill for the usmca up to congress so that's a lot of jargon but what it essentially means is that within the next 30 days you will see that bill with the treaty or would-be treaty congress would be voting on would have to be sent up to the hill remember, the white house hopes to pass the usmca by the end of this summer. the vice president is in canada meeting with prime minister justin trudeau to discuss ratification and the path forward for this deal. canada has started its process to move forward and could ratify the deal very soon and it's very reasonable that the u.s. would communicate to canada that it plans to do the same within the next day back to you. >> what's your

president doesn't seem to be in a rush to make a deal with china but jamie dimon says he should be kayla tausche with more on that. >> reporter: on friday, china's retaliatory tariffs take effect in response to a tariff hike that will start to hit importers in the coming days a chinese official tells state media, it could move to protect rare earth producers next. those stocks are soaring because these minerals are a tiny fraction of overall imports but a critical input for cars and phones that are made here in the u.s. on a state visit to japan, president trump referencing beijing several times saying the u.s. could relax its hard line on huawei but it's not ready to make a deal yet and also, china should have done an earlier version of the deal before these tariffs worsen again earlier today, j.p. morgan chase ceo jamie dimon saying the protracktive fight is having a real issue with business. >> trade is being a skirmish to far more buoyant than that other surprises, that could be a thing that changes confidence, changes people willing to invest you see businesses thinking about moving the sup

let's send it over to kayla tausche in washington for a broader look at where the u.s.-china trade war stands right now. kayla? >> sara, safe to say there's no progress to speak of with china's foreign ministry spokesperson saying the deal that president trump keeps blaming beijing for breaking never existed. china also says the u.s. fabricated the issue of forced technology transfers though a european union study says it's not only happening but it's worsening. these trade tensions between washington and beijing are beginning to spill out into other geopolitical issues. you had the u.s. sailing warships near disputed territory in the south china sea you have china airing anti-american movies in prime-time on state television channel cctv which said the programming change reflected an echo of the current era. and then you have iran asking china for help to protect its nuclear deal as tensions between iran and the u.s. escalate as well there's a morgan stanley note out that says if this reescalation of trade tension between the u.s. and china doesn't get resolved in a fe

kayla tausche has that breakdown in washington. kayla. >> reporter: well, sara, the relationship with mexico appears to remain intact its president today with a measured response saying it intends to move forward with the ratification of the usmca. and mexico's foreign minister is expected to touch down in d.c. momentarily for some meetings here and earlier today he called those new tariffs, those proposed tariffs unjust. and said they make no economic sense for anyone and perhaps we'll get a few more comments this afternoon. it's welcome news for china, where companies may have been considering leaving china and moving to mexico to avert those tariffs. maybe they're reconsidering those moves. but the relationship that's really going to be fractured here is that between the white house and the business community if it goes forward with these tariffs. the chamber of commerce hit back against the white house earlier today and said that it is exploring legal recourse against this we've also learned that other business groups are weigh

kayla tausche is in washington with the latest on trade and tariffs, which is the root of this sell-off. an

kayla tausche with the reaction from big business and trump's inner circle steve liesman looking at the impact on the economy and auto makers, those stocks getting whacked today. how mexican tariffs have agriculture. let's start with you >> as opposition grows from the allies in the business community as well as capital hill, we learn more about how that opposition played out here at the white house behind the scenes privately by steven mnuchin and robert lighthizer, both of whom oppose the president's decision to put forward tariffs on mexico in response to an immigration problem. i should note the usdr and treasury say both of these officials support the president's position but told by three sources that opposition was raised behind the scenes so who supported this policy and where did it come from i'm told by multiple sources that the leading advocate for a harder line on mexico was steven miller, the president's senior adviser and immigration hard liner who had his ear during the trip over the weekend to japan and i'm told by one source that the president returned from that trip ri

but that's not all he said kayla tausche has been following the action all day for us. kayla. >> president trump slowing down the sabre rattling in the last 24 hours, saying last night he's allowing three to four weeks to make a deal. today that he respects china's leader, xi jinping, and that he thinks the u.s. will prevail >> this has never happened to china before our economy is fantastic theirs is not so good. we've gone up trillions and trillions of dollars since the election they have gone way down since my election so that's the way it is. that's the way it stands we're going to do very well. >> so that's where the president is but over on capitol hill lawmakers are divided. some like mark rubio and steve scalise praise the president but others say they're disappointed. mitch mcconnell is expected to weigh in within the hour and that could be newsy when he does. >> we'll look forward to that, kayla, thanks. let's take a closer look at the impact of the tariffs and whether the u.s. is pushing on a string by pushing for a better deal joining me is derrick scissors d

let's get to kayla tausche in washington. >> u.s. soy bean farmers hit from multiple forces, delaying and stockpiling crops. china halting good will purchases that would have totaled nearly 6 million metric tons on saturday the total tariff rate on soy products entering chain will rise from 28% from beans and 34% from oils. trade sources say the fight is likely to intensify further before it cools down i'm told vice president mike pence is planning a speech on china's human rights record tied to the 20th anniversary of the tiananmen square massacre and could mention human rights sanctions. a white house official plans commemorating the speech around the anniversary. one of many hawks vocal about china within this administration, it's important, kelly, because as we expect potentially this administration to weigh further sanctions on companies like hick vision, my sources are saying this speech is a potential venue for that announcement >> kayla, that's huge news that would be next tuesday now you have all weekend of speculation going

kayla tausche is in washington and joins me with the latest >> the president digs in his heels on china tariffs, the administration is relaxing its stance toward allies the white house plans to delay a decision on whether to put auto tariffs in place that's according to four of my sources. by law, the white house has another 180 days to make a decision so long as the u.s. is negotiating with countries that would be affected. and then there's steel and aluminum tariffs the senior administration official says the u.s. trade representative planned to float a proposal to remove those tariffs at a meet with canada's foreign minister that just ended. canada, mexico and republicans in congress have said they'll not take up the nafta deal if they're still there. the treasury secretary said a deal on that could be close. >> i think we are close to an understanding with mexico and canada i've spoken to the finance ministers. ambassador lighthizer is leading the effort on this but i can assure you it is a priority of ours >> mnuchin told reporters later he didn't say they'd remove those tariffs ne

let's get straight to the latest on the new tariff threat to mexico kayla tausche has been lighting up the news wires all day and just got off the phone >> reporter: we're trying to learn exactly how the policy which was hastily rolled out yesterday afternoon, how it came to be and where the support and where the opposition was from within the white house and beyond we've learned from our sources including one close to the white house, one source briefed on the matter and senior administration official that the treasury sect and the trade representative boast b ambassador bob lighthizer were opposed to the mexican tariffs i received a call from jeff emerson who tells me on the record that ambassador lighthizer supports the president and says he supports this strategy. that is directly against what we have learned from our sources, but we will present both of those pieces of information to you are viewers. and i've also learned that the president's frustration this week originated from his trip to gentleman can pan where he spent a lot of time with stephen miller, his hard line immigrat

trade what else is new the most recent being that the trump administration plans, according to our kayla tausche, to delay auto tariffs for six months, good enough to turn the s&p positive pete, nice to see you back at the table. that's all it takes, positive headline on trade and the market gets swayed. >> and i think the one read i'm trying to take away from this is how far are they extending the true today talks we're talking about every single day, which is china. obviously that time frame has come and gone, we've gone back and forth with the tariffs and all this the interesting thing in the market right now is not only is there an incredible amount of volume flowing in right now, about $3 million above normal in the options market, is flowing so the paper is there. but what about volatility? how about the fact that about four or five trading sessions ago, we had 23 we haven't even come close to that since even with all this movement that we're getting, we haven't seeing volatility spike in there. that's why i think this turn today, it's almost like the market was anticipating something. is

kayla tausche at the white house. >> reporter: we're learning more about where the personnel with the white house stood exactly on this mexican tariff decision i learned from two sources, including one who is close to the white house, that the idea for this strategy originated with steven miller, the president's immigration advisor who was traveling with him on his trip to japan over the weekend. and according to my sources, the president returned from that trip riled up about the surge in border crossings because steven miller had had his ear on that trip but i'm toldthere wasn't broad support for the rollout of these tariffs, including, as you just mentioned, opposition from the treasury secretary and the u.s. trade representative, two officials whose ideological views on tariffs are not normally aligned but in this case, they were. i'm also told that ustr staff was not in support of this because they felt that it would jeopardize the usmca deal. of course, the vice president was in canada. we've learned that larry kudlow, one of the loudest free trade voices in the room at the whit

news, though, to get to right now. >>> news on tariffs out of washington we want to get over to kayla tauschefficial postponement of auto tariffs for six months, as cnbc reported what happened earlier this week. in a proclamation that the white house just released, president trump says that he agrees with the sole finding of the commerce department's report that was submitted in february, that investigation on whether automobile imports and parts imports threatened national security the president says that he concurs with the finding that automobiles and certain parts are being imported into the united states in such quantities and under such circumstances as to threaten to impair the national security of the united states, but the president says he's directing ambassador lighthizer to conduct negotiations with the european union and japan on these auto parts and other trade issues to update him within 180 days or six months, as is allowed by law, and to figure out how to proceed from there so, you are getting an official postponement of those auto tariffs, though we should note, if at any po

eastern time however, the negotiations are continuing today kayla tausche joins us right now with more. and kayla, this seems to be kind of a quickly moving story, so what can you tell us right now >> reporter: it is well, the latest is that we got a five-tweet thread from the president just a few minutes ago where he noted that talks are continuing and said that not only will this tariff hike to 25% bring in more money to the united states, he also said that he's putting plans in place to put levees on every single dollar of goods imported from china. he said the massive payments will go directly to the treasury of the united states he says tariffs will bring in far more wealth to our country than even a phenomenal deal of the traditional kind, and he says that he is going to divert the proceeds from these tariffs to u.s. farmers who are being hurt by chinese retaliation. he says, if we bought $15 billion of agriculture from our farmers, far more than china buys now, we would have more than $85 billion left over for new infrastructure, health care, or anything else now, he nekts cessa

china divide deepening in the tech world, tech firms beginning to cut off huawei supplies kayla tauschefrom washington with an update on this tense relationship. good morning, kayla. >> protracted is the word you used the rift between the u.s. and china is widening to include other geopolitical issues like iran, taiwan and the u.s. warships sailing near disputed territory. all subjects of discussion between the secretary of state mike pompeo and china's foreign minister during a phone call over the weekend now google will suspend android business that requires technology to be transferred it is a blow to huawei's new devices coming to the market but the company is getting a small lifeline from the u.s. the commerce department may allow some huawei equipment to be purchased to avoid disrupting rural networks in places like wyoming and oregon that already have orders out there. beijing is warning the u.s. not to further harm its interests, though president trump in tweets in an interview last night continues to knock china for what he calls breaking the deal. the foreign ministry spokesma

kayla tausche is going to have much more.with jim cramer and david faber. another monday, you just heard the chinese announced retaliatory tariffs on 60 billion u.s. goods europe is right across the board. that ten-year approaching two for one. our road map is going to begin with trade tensions taking stocks todayme china retaliates >> uber's bi

. >> we'll begin with kayla tausche in washington. trump's tariff threat.t are we going to see the talks this week? >> we're waiting to see what the latest is. chinese officials are weighing whether to proceed with trade talks in washington that were expected to produce a deal in principle. china's foreign ministry said they're preparing to come to the u.s., but evaluating the situation after president trump raised the stakes for talks yesterday, tweeting that tariffs on $200 billion in chinese goods would mark than double on friday to 25% which would end the six-month truce with beijing ark the two sides negotiated in earnest. negotiators warned president trump that china was waffling on some of its commitments. china's vice premier was set to visit with a 100 person delegation with the u.s. officials telling me last week the working goal was to have an idea by the time the visit concluded this friday. the president's announcement is abrupt the treasury secretary said talks last week were productive and had suggested a deal would move uncertainty and lift

kayla tausche joins us to break down that tweet.orter: there is a lot on the president's twitter feed his frustration with mexico is palpable, it was bubbling over with the rising number of border crossings that resulted in hastily put together tariff announcement last night. remember, president trump in february used his emergency powers to declare a national emergency on the southern border that's currently being challenged in court. and while he used a slightly different economic power to declare the emergency that allows him to put those tariffs in place, trade adviser from the white house peter navarro said earlier this hour that's completely legitimate. >> the use here, what we're using is using a regulatory method to address this threat. and tariffs are one such use of the threat what is happening now is mexico, by being a bystander in this criminal enterprise, is imposing enormous costs on the united states >> reporter: this is an approach that got the green light from the white house counsel's office navarro calls it a mode

welcome back to "squawk box" this morning for the latest on the trade war, we're going to go over to kayla tauschea. >> good morning, andrew. the trump administration is expected to roll out its next aid package to farmers this week to blunt the effect of retaliation from china, even as retaliation from mexico and canada ends. three soybean farmers we reached out to did not know what was in the package, and a usda statement said "the program is being designed to avoid skewing planting decisions one way or another. farmers should continue to make their planting and production decisions with the current market signals in mind, rather than some expectation of what a farming support program might or might not look like based on inaccurate media stories." as the administration moves to try to diffuse these negative effects, though, a new quinnipiac poll shows deteriorating support for the administration's trade efforts on president trump's handling of trade, 39% of voters approve 53% disapprove on policy toward china, 40% approve while 50% disapprove and when asked whether president trump's trade polic

, as one of his deputies hears a plea for restraint, and this came from a top chinese official kayla tauscheul shot of the capitol. i was right. kayla. >> reporter: yes, good morning, joe. a standoff between the u.s. and china over trade issues is deepening. the rift is widening now to include other geopolitical issues president trump said in a pretaped interview that aired on fox news last night that he's okay, though, with the current state of play. >> a lot of people won't be happy with this answer, but i'm very happy now we're taking in billions of dollars. china is obviously not doing well like us you see what's happening their economy's not great. our economy has been fantastic because they were catching us. they were going to be bigger than us. >> on saturday, u.s. secretary of state mike pompeo spoke to chi china's foreign minister, who according to state media, warned pompeo the u.s. shouldn't go too far in harming china's interests. they also spoke with iran, tehran and the south china sea as the u.s. sailed a warship just miles from the area and beijing called that a provocation.

- no, not a deal with china -- this is the still-pending united states/canada/mexico agreement kayla tauschevice president mike pence will be meeting with canada's prime minister justin trudeau on thursday in ottawa to discuss the ratification of this new nafta deal, or what the u.s. calls the usmca. canada's moving toward passage of the deal, posting an official notice that could mean a bill to ratify it is introduced as soon as wednesday before that meeting. trudeau telling reporters yesterday that canada's going "to be aligning ourselves very much with the pace of the american administration. the white house hoped to pass the deal by the august congressional recess but has not yet sent the deal up to congress removing steel and aluminum tariffs two weeks ago cleared a major hurdle for republicans, but democrats remain the wild card working groups studying issues like labor and enforcement could make progress, but rank and file members still say portions of the deal aren't workable as is president trump said last week he doesn't think top house democrat speaker nancy pelosi understands the

say now because we've totally blanketed every issue, every nuance, every possible way to talk, kayla tausche.c. did we get anything wrong? you've thought of all this stuff already i'm sure >> well, you guys hit all the high level points. i was on a briefing call last night with the acting chief of staff mick mulvaney and the acting secretary of homeland security, which made some interesting comments about the administration's strategy here this tariff will escalate throughout the summer if mexico does not provide what the administration feels is a sufficient response, although these officials didn't put any specific numbers behind what that win would constitute, just that they wanted to see border crossings come down significa significantly and substantially and that they're taking this on a week by week and on a day by day basis. the president said he wants this problem remedied as soon as possible, although a response from mexico's president seemed to hit back at the president president lopez obrador saying social problems are not solved with taxes, saying that mexico promotes dialogue and