monica: it is interesting because at the same time we are seeing these so-called dependency of peter navarrodss anti-deficit that trade deficits are bad and yet the go after countries with whom the u.s. has large trade. deficits.ina -- trade china, and partners with nafta, and we also see the economic report that the president -- prepared by the national economic council. what is interesting is the chapter on trade contained in that report says and speaks of trade in a way that is completely different from the way that peter navarro and others within the administration speak of trade. again astension here to how exactly trade is viewed within the administration. we have an idea of how the president views and have some idea of how of his advisers view it. peter navarroof is definitely something to watch, but on the other hand this report is saying to be entirely different and contradictory. scarlet: i want to get your thoughts as well on the potential for the president to slap tariffs on imports on steel and aluminum. is there any link between that and what is going on in nafta discussions gi

to be elevated as a special counselor to president trump people have made a lot of this because peter navarro has some pretty strong ideas about free trade and where he thinks the problems are with free trade. he's made the argument that having a trade deficit is a bad thing inherently do you agree with that >> well, i actually wrote an article about it some years ago in "forbes" and i think having -- having very large trade deficits as a percentage of your gdp means you're transferring wealth abroad to other countries or claims on wealth, you know, and i felt we were -- that was excessive a dozen years ago or so. i don't like the idea of running huge trade deficits as a percentage of gdp at all you can say you're fooling foreigners because you're just handing them little pieces of paper and they're working hard making underwear, shoes, everything to ship to you. why not give them little pieces of paper that will get inflated away at some point, but i don't like large trade deficits. on the other hand, trade benefitted us and the other world enormously over time it doesn't mean that there can

we heard peter navarro has been promoted to an assistant to the president.many has on his side. this is one of the many hawkish trade officials and the trump administration. could this elevate a move of impact policy in any way? terry: there will always be a tension in this administration between the free traders who propose the policies that i , and people on 232 like navarro l want stronger trade action. that is not going to abate. what we do think and what we have said, myself and my colleagues who runs our china research is that, we don't see trade war or treat piece -- peace. series ofet a tit-for-tat between the united states and china. we think both countries realize there is so much at stake that they will not elevate. yvonne: the midst of all that is the geopolitical tension. we also heard that south korea is ready to talk with the u.s. do you think that there is a these meetings actually happening, and what could actually be achieved? think those i meetings have a good likelihood of being achieved. it may well be that they end up leading to somethi