rometty is the leader of trying to change that going to one of their institutes good stuff tell peter navarroi don't know. >> okay. >> just say beyond meat, that's the key. >> haven't mentioned beyond meat all show. >> when we come back, peter navarr navarro. don't go away. my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. ♪ puppalright, alright. ion. what's going on? my owner got a new puppy. my name is tiny. nobody cares. >>> good friday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, david faber at post nine of the new york stock exchange markets having

your reaction to the comments from peter navarro >> look, peter navarro wouldn't recognize a trade agreement if it fell out of the sky and landed on his head peter navarro does not begin to comprehend the consequences of what he's advising the president to do. it has been advising the president to do for more than two years. it's really a sear justicerious dangerous situation that he is advising the president and on cnbc and talking about things that he didn't have a clue what he is talking about. this move, if the president takes it, will very severely violate nafta. it will basically invalidate the entire agreement because we will be failing to fulfill our most fund al obligation in the entire 300 page agreement it violates the world trade organization agreements which compromise huge portion of the international law and critical for global stability these are the types of consequences you're looking at in the long term for this kind of move. >> matt, to play devil's advocate here, not saying right or wrong or disagree or agree, you spent time in the executive branch and spent time working

. >> let me tell you something that peter navarro said. he was asked of the impact on americans. there's a message that seems to be coming out of the white house that is inconsistent with what people like you and bill tell us about who pays for these tariffs. let's play what peter navarro said. >> this is one of the most misunderstood aspects of the trump tariffs. china, for example, bears the burden of the tariffs in the form of lower exports, lower prices for their products, lower profits for their companies. the government of china has borne the burden of those tariffs -- >> so has the american consumer. importers pay for it. >> no, the government of china and mexico will pay for it. >> is there anything that peter navarro said there that made economic sense? >> no, did he start with, hello, maybe that was accurate. look, people have -- this is not a random event. >> no. >> we have studied tariffs, economists have studied tariffs for decades and we've studied these tariffs, the ones that he was talking about. and 100% of the burden of those taxes -- and tariffs are taxes -- 10

they do not agree with the president on this measure on the other side that we have a hard liner peter navarro saying that he considers this move from u.s. president to donald trump a brilliant so obviously quite different opinions on that and besides that makes it cold now this weekend countermeasures from china actually will go into effect so we certainly opened up a couple of new friends and then also people on wall street are asking what does it all mean for possible kateri of so called words the european union so at this point everything seems to be possible but as we've seen the shop reaction on wall street maybe u.s. president donald trump might reconsider and so that those terrorists mexico might be avoided at the end so the trade tangle getting even more complicated there . for us in new york thank you now the u.s. china trade war the end just mention that's intensifying new chinese counter tariffs on u.s. imports go into effect on saturday targeting 60000000000 dollars worth of goods beijing also says it's creating a blacklist of foreign individuals and companies to ban from supplyin

emma chandra is here to tell us how the markets are reacting as peter navarro thought they should, is a good news,? >> we are looking at a loss of close to 1% for the dow jones and s&p 500. the s&p 500 was off by 1.4% earlier in the session, we are off the lows, and coming back from the highs as well. also wanted to mention the bond rally, that is continuing today. we are looking at yield below 2.2. 500 andook at the s&p how it has performed over the month of may, we should be of a to show you a chart here. this made is shipping up to be the second worst since the 1960's during the kennedy administration, looking particularly poor at the moment. i should mention, the dow jones industrial average is headed weekly loss, the longest losing streak since 2011. big movers today, retail. the s&p 500 retail index has been one of the big losers this month, down 6.4%. only two of the stocks in that index are in the green for the month of may, that is target and autozone. we had weak earnings in the last few weeks. gap falling yesterday close to 11%, it was close to 17% at the open today. ofery

move to include the new currency tool has been pushed by mr ross and white house trade advisor peter navarroncy and this latest initiative could also ramp up, victoria, the pressure on china to compromise with the united states on a trade agreement. —— trump. victoria. thank you. now let's brief you on some other business stories. what might be the retaliation? china may have tested its nuclear option in the trade war, we are talking about government bonds, it sold $20 billion worth of us government bonds in march and if china sold its $1.2 trillion in us treasuries, it could raise borrowing costs in america, weakened the dollar and plunge global markets into chaos. bloomberg has the story that we were just talking about, some proposed new ta riffs talking about, some proposed new tariffs on nations with undervalued currencies. 0n the wall street journal, the latest tariffs will cost something like $831 per household. this is an estimate by the new york federal reserve which ta kes the new york federal reserve which takes into the new york federal reserve which ta kes into accou nt the new y

white house trade adviser peter navarro joining us earlier on "squawk on the street. here's what he said about the president's move >> i would say to you that the president is going to get this done by invoking the international emergency economic powers act and taking the appropriate measures this will get everybody's attention in mexico. >> great interview earlier, by the way, sara, on that front are these measures getting attention from canada, china, and europe as well ed mills, washington policy analyst at raymond james ed, thanks for joining us. first question is does this all damage the administration's credibility at making any deal on any topic given that a trade deal was already done with mexico >> absolutely. what you look at here is when i talk to the experts that really understand china trade they tell me that china is getting very concerned on whether or not president trump and the trump administration are reliable negotiators. and they're looking at this and saying look, this is the week that canada, mexico, the united states all started the formal proc

business groups so furious they may sue over this, but peter navarro says investors should look at it calmly. >>> and an ugly month on wall street, major averages all down more than 6% in may. bond yields are slumping too the 10 year below 2.2% we'll look at how best to position your portfolio. >>> and retail stocks are having their worst month since the great depression all bad news here. gap, kohl's, foot locker and nordstrom are getting crushed. are more store closures next we'll get in to that >>> but we begin with the selloff and dom chu has the numbers. >> so how about less bad still red across the board, but still less bad means that we're down about 280 points overall in the dow jones industrial average so far, but we were down about 329 at the low so, yes, it is still bad, but knots a bad. the s&p 500 over 1%, declines to the down side here again, we focused on it yesterday. the transportation stocks, namely on the heels of this u.s./mexico trade issue because transportation stocks including railroad companies like kansas city southern taking a move lower. dow jones itf iyt h

though other more hardline advisers like stephen miller and peter navarro are completely onboard. >> this is actually a brilliant move by the president to get mexico's attention, to get them to help us. so far, they've just been standing by and they really have the power to -- the two institutions that have the power to help us are the mexican government and the congress. congress has done nothing. the mexican government can really help us here. that's what we're asking them to do. >> cnn white house correspondent kaitlan collins now joins me. and kaitlan, why now? why impose these tariffs now? illegal immigration has been a problem for quite some time. >> that's the question that allies of this administration are having, because they say that this is going to potentially derail that new trade deal. but the president had been frustrated over the border crossing numbers and they've been at an all-time high lately and the white house argues that there is this crisis happening on the border. but we know this rollout was hastily arranged. they made the final decision to go through with t

the rain has stopped for now, but the damage is done strawberry grower peter navarro te his 50 acre farm was hit with an inch and a half of rain last the skin of the straiberry plan is very sensitive to a any type moisture. so any rainfall is just going to split and damage is a fruit. the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew and rot to the green and still healthy fruit nearby if you don't clean the plan now they also cause of mental stress on the plan so we just have to go in clean the plant out and basically start over. crews that should be picking healthy berries are busy calling the bad fruit. there is still some pre rain-free to supply chain but when that's gone tomorrow says fresh strawberries will be scarce for a week or 2 and prices will go up for a time these next couple of days are going to notice a less berries being picked unless various means and town right now is prime ti for strawberries navarro says his fields can usually whether ort lived rain but back to back to back storms here lik

the rain has stopped for now, but the damage is done strawberry grower peter navarro estimates he has lost 85% of what was right after his 50 acre farm was hit with an inch and a half of rain stra sensitive to a any type moisture. so any rainfall is just going to split wide open. you know cause right is just and damage is a fruit. the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew and rot to the green and still healthy fruit nearby if you don't clean the plan now they also cause of mental stress on the plan so we just have to go in clean the plant out and basically start over. crews that should be picking healthy berries are busy calling the bad fruit. there is still some pre rain-free to picked unless various means and town right now is prime time awrries sa his fields can whether a little short lived rain but back to back to back storms here like this past week is every barry farmer's worst nightmare very frustrated, you know this is you are entering. this is the time had may and june when you get your b

well there are two sets of key points the first one you might see associated with peter navarro and certain of those advisors to president trump they want to change the basic chinese economy so that it is more friendly to more receptive to the united states and they want basic changes in china along that line then there are others like secretary of the treasury minucci who really wants this tension to go away because it's interfering with international trade and he i think understands what the others don't which is that china has successfully outgrown the rest of the world for the last twenty years i was not about to change the situation and the system that is working so well for them so you've got a stalemate if you really want fundamental change if you don't if you want to put this pointless and dangerous tension behind you then you will make an agreement both sides will claim victory and we'll go on to the next crisis for mr trump to focus on so china does seem to be taking steps to move the negotiation of the law they said they plan to open as forty four trillion dollars financial secto

peter navarro, the hill's john solomon, china expert michael pillsbury among our guests monday.have a wonderful, wonderful weekend, and a reminder to follow me on twitter @loudobbs like me on facebook, follow me on instagram at lou dobbs tonight. we thank you for being with us, see you monday. good night from new york. trish: tonight, attorney general bill barr defending himself from democrats who don't -- [inaudible] all of this as barr defends the president -- is hurting the credibility of our intelligence agencies. all of this as barr defends the president against critics who accuse him of hurting the credibility of our intelligence agencies. watch. >> i think one of the ironies today is that people are saying that it's president trump that's. >> shredding our institutions.

italy talking about economic nationalist to anyone who will listen and then the trade rep and peter navarro, the trade expert in the white house. all saying effectively the same thing that china needs to be stopped. >> your reaction to what ron just said and the idea that maybe, as this trade scuffle prolongs itself, that the global economy is going to slow, already seeing commodity prices come down, oil prices are down, and bond yields are down those are usually signs that people are anticipating a slowing. >> right so it's come from trade discussion to trade war to trade scuffle. i think we could find more nouns for this along the way i think one of the bigger backdrop pictures, there's a genre regime chaneral regime che for a long time, we were the long-term driver we were willing to enter into trade deals that put us in a slight disadvantage, to get the global trade going we were a great leader in doing that and got it up and running and now basically coming back to the table, whether you like the approach or not, looking at the deal and recognizing, okay, we were at a little bit o f a

peter navarro.and larry kudlow and the economic brain trust of the administration still in there. because trump likes him, his stance on china, his bell belligerent. is there something that comes out of kudlow and navarro that is positive? that could be true. neil: they will say there was compromise. >> maybe the markets will like it. anything but total trade war the markets might like that. neil: excellent column over the weekend. you are fair and balanced. those who say he is never-trumper, he is a fair and balanced trump per. >> i'm a sometimes trump per. neil: there are a lot of adjectives i can throw your way. the fact that it was balanced conference. >> i was at milken. manny the security barred said hello. neil: how is manny? >> he is a great guy. he loves cavuto. neil: ralph is shouting in my ear. >> so many people talking you up. neil: i paid them. we'll take a quick break, urge you if you can, to online read a very fair and balanced portrayal of this president from a guy that doesn't have

discussions, hold the line, even if the market feels a lot of unease, hold the line, listen to peter navarro but about the president moving forward on that on foreign policy, a hawk is in his ear but the president is saying i'm not really keen to do intervention in venezuela or iran and dealings with congress, fight them all, reject everything. it president trump like he was in the 26th floor of trump tower directing the scene. >> robert costa and the rest of our always excellent friends and contributors, can't thank you enough. appreciate you starting off our conversation tonight and coming up, this talk of threats from iran, real or imagined? we'll talk to a veteran correspondent who sees parallels to the past and later, that just signed alabama abortion law, the most extreme in our nation appears to be designed for just one thing. "the 11th hour" is just getting underway on this wednesday night. ♪ you know reliable support when you have it, and that dependability is what we want to give our customers. at comcast, it's my job to constantly monitor our network. prevent problems, and to help

expensive than normal thanks to that rain we got over the weekend watsonville strawberry grower peter navarroimates he lost 85% of what was right because this 50 acre farm there was hit with an inch and a half of rain last weekend. >>the skin of the strawberry plan is very sensitive to a any type moisture. so any rainfall is just going to split wide open. you know cause right if you don't clean the plan now they also cause of mental stress on the plan so we just have to go in clean the plant out and basically start over. >>crews that should be picking healthy berries are now busy collecting the bad fruit they're going to maybe be able to use the bed for juice, but certainly not the economic impact it would have had a there is still some pre rain fruit in the supply chain so handy if you're at the store and you want to get some strawberries before the more expensive tomorrow, the next day you might be in good shape. but was that supplies gone navarro says fresh strawberries will be hard to find for about a week or 2 and prices during that time will certainly increase kemp and back to you all r

suddenly, peter navarro and wilbur ross scheduled for the ceos to come to the white house. it wasn't on the white house schedule. john kelly didn't see. others in the white house were unaware. they slipped this thing in under the radar and off it went. it was -- those actions over the course of that week was part of gary cohn that week. >> there were valid questions as to why it's happening with the united states and mexico and still not europe where it all started. is there some sense that this now paves the way for canada in particular and mexico to get on board with work that is trying to be done with china in terms of settling that matter? >> potentially. and one of the things that could be part of this deal is an agreement by canada and mexico to limit the steel and aluminum that is coming into their countries from china that then is making its way into the united states. that is a problem that president trump has said is creating the oversupply, is killing the american jobs here. and that's something that they really wanted to eliminate with these tariffs in the first

peter navarro said the same thing on this show. it's malarkey. consumers pay those tariffs. americans pay those tariffs. conservatives used to be against taxes on americans. not anymore. >> i will take the middle ground here and say you both have made very good points. the fact enforcement is still a contentious issue which is why the united states seems to not end this trade war which at the point i think jonathan brought up agriculture. that's a huge deal, huge deal. so many of these farms are going bankrupt. we can bring up just the trade that has plummeted to china, this is the latest graph i grabbed from the u.s. customs. we can pull that up, maybe we have it, maybe we don't. you can just see visually there on the screen just how much it's plummeted and that's affecting americans. that's the issue. maybe they don't all buy washing machines but what about soybeans? what about corn? david: we are in the middle of negotiation, gang. just to reemphasize for those just tuning in, our man edward lawrence has been at the meeting between treasury secretary mnuchin and our chief

one wants a deal and leaking to the press and the hard-liners led by robert light houser and peter navarro who tell the president the chinese can't be trusted so when they try to walk back, trump put the hardliners in the driver's seat why not. they're right. you may not like the way the president conducted policy via tweet but he is right to play hard ball here and the chinese know it. that is why a deal is on the table. they could go back to ten days ago that they were happy with and the trump will give them a stay of execution on the higher tariffs. sound thought number two let's say it doesn't happen. the 25% tariffs go into effect and the end of the world happens, china retaliates, it will be negative for the economy but i'm less worried about it than most of the experts why? because trump watches the dow like a hawk, the equivalent of the nielsen weighting and this gives influence of high dollar stocks like apple and boeing and targets of people republic if they decide to go tit-for-tat. because if he witnesses a climb in the dow he'll get stocks rallying again but not only that i ha

and then there's peter navarro who has broadly been a hawk on all things trade and supported the president's tariffs and told cnbc that investors shouldn't worry. >> i would suggest to investors to look at this calmly, look at what we're trying to do. this is actually a brilliant move by the president to get mexico's attention, to get them to help us because so far, they've been standing by and they really have the power to help. the two institutions that have the power to help us, the mexican government and congress. >> reporter: we move to get mexico's attention the acting white house chief of staff, mick mulvaney told reporters last night it's his hope the tariffs don't go into effect and the mexican government has ten days to see if his response is efficient for the president. >> thank you very much >>> today's losses are adding to the sense of misery that's persistent throughout the month of may all three major averages having the worst month since december of last year dow down 8%. seema mody has more on may's meltdown hi, seema. >> reporter: hi, tyler what the market is trying to do i

mcmaster and steve bannon and peter navarro. they really came to loggerheads about this.erviewed a number of them personally, and they talked about how tense and nasty these fights were. bannon said they were the nastiest fights they had had in the white house, beyond any other issue they had. one day it almost came to blows, general john kelly had to come in and separate them into different rooms because it had become so heated. gary kohn had been frustrated. they were just bringing pictures -- they weren't bringing data to the meetings. he found this frustrating, he came from goldman saks, it was very data driven, he couldn't understand this was how policy was being made, and they came to blows quite often. >> laura, thank you for your work on this, laura sullivan, npr investigative correspondent. trump's trade war airs tonight 10:00 p.m. eastern on pbs and online at pbs.org. linda u. is a fellow at oxford university, and author of what would the great economists do. how brilliant minds would solve today's biggest problems. can you give me your evaluation of where we ar

whispering in the president's ear, you know, on immigration, it's stephen miller, on trade, it's peter navarroith a hard line. here it's john bolton. and what you miss when you skip the process is you sometimes fall into these dangerous situations, where someone's agenda is driving it, rather than the intelligence. and the president has neither the respect for the intelligence process, i think, or the attention span for the intelligence process, to actually be the leader of this. so he gets led around, and he'll wake up, you know, one morning and say, how did we get here? i'm angry at john bolton. well, he's the president. >> you know, peter baker, your friend maggie haberman over at "the times" is reporting what are the president is really angry about is the reporting that's out there suggesting that john bolton is somehow manipulating the president or pushing things without the president's knowledge. the question is, is does john bolton have the authority within the administration to get the united states to do things that the president doesn't want to do? how much tension is there, really?

. >> christine, there had been two camps in the administration, peter navarro pushing for a harder dealribed as accommodationists, steve mnuchin and others pushing for something softer. do we know who has the upper hand? >> i have been told several times when i've asked this question to folks around the president, he is the one driving china policy. it is him and him alone. he has been very strong on china for very many years. he thinks this is a core campaign promise he's got to level the playing field with china. what he doesn't want -- people around him don't want a big soy bean order, undoing the damage done in the past year, problems with not stealing american intellectual property. the u.s. economy is in a better position than china. maybe president trump thinks he can keep tariffs on for the rest of the year, raise tariffs and he has the upper hand here. >> by the way, guys, it stands in stark contrast to former vice president and candidate joe biden saying it's not a big worry. >> also, we talked about this. you and i pay the tariffs. it ends up in the prices of goods we buy. en

the rain has stopped for now, but the damage is done strawberry grower peter navarro estimates he hast was right after his 50 acre farm was hit with an inch and a half of rain last the skin of the strawberry plan is very sensitive to a any type moisture. so any rainfall is just going to split wide open. you know cause right is just the damage is a fruit. the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew and rot to the green and still healthy fruit nearby if you don't clean the plan now they also cause eventual stress on the plan so we just have to go in clean the plant out and basically start over. crews that should be picking healthy berries are busy calling the bad fruit. there is still some pre rain-free to the supply chain. but when that's gone tomorrow says fresh strawberries will be scarce for a week or 2 in prices will go up for a time, these next couple of days are going to notice a less berries being picked unless berries being sent out right now is prime time for strawberries navarro says his fi

the rain has stopped for now, but the damage is done strawberry grower peter navarro estimates he has lost 85% of what was right after his 50 acre farm was hit with an inch and a half of rain last the skin of the strawberry plan is very sensitive to a any type moisture. >>so any rainfall is just going to split wide open. you know cause right is just and damages, the the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew e have to go incrs that should be healthy berries are busy calling the bad fruit. there is still some pre rain-free to supply chain but when that's gone tomorrow says fresh strawberries will be scarce for a week or 2 in prices will go up for a time these next couple of days are going to notice a less berries being picked unless various means and town right now is prime time for strawberries navarro says his fields can usually whether a little short-lived reign, but back to back to back storms here like this past week is every very farmer's worst nightmare very frustrated, you know this is you a

the rain has stopped for now, but the damage is done strawberry grower peter navarro estimates he has lost 85% of what was right after his 50 acre farm was hit with an inch and a half of rain last the skin of the strawberry plan is very sensitive to a any type moisture. so any rainfall is just kind of split wide open. you know cause right is just damage is approved. the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew and rot to the green and still healthy fruit nearby if you don't clean the plan now they will also cause eventual stress on the plan so we just have to go in clean the plant out and basically start over. crews that should be picking healthy berries are busy calling the bad fruit. there is still some pre rain-free to supply chain but when that's gone tomorrow says fresh strawberries will be scarce for a week or 2 and prices will go up for a time these next couple of days are going to notice a less berries being picked unless various means in town right now is prime time for strawberries navarro

steve mnuchin. t other side, the nationalists included bannon, along with robt lighthizer and peter navarrohawkish economist whose film "death by china" caught trump's attention. >> one of e most urgent problems facing america, its increasingly destructive trade relationship with a rapidly rising china. >>ullivan: the two camps disagreed sharply over whether aggressive measures like tariffs would help or hurt the american econom >> we had a mindset that great power, you know, it wasn't just your military. you had to be a great economic power. and a greapower had to be built upon, had to be built upon a great manufacturing basee to "makeca great again," you've got to bring manufacturing back to thetr co >> sullivan: some of the people that are very pro-tariff right now make an argument that the united states has lost itsg manufacturse, and that this is actually real people's lives at stake here. >> well, the data would show manufacturing jobs have gone down in the united states, so i undersnd where they're saying there. the flip side is, factory output, or what we produce in the united state

the rain has stopped for now, but the damage is done strawberry grower peter navarro estimates he has lost 85% of what was right after his 50 acre farm was hit with an inch and a half of rain last the skin of the strawberry plan is very sensitive to a any type moisture. so any rainfall is just going to split wide open. you know cause right is just the damage is a fruit. the ferocious here are filled with cracked and rotting berries which must be cold or cleaned to guard against the spread of mildew and rot to the green and still healthy fruit nearby if you don't clean the plan out also cause of mental stress on the plan so we just have to go in clean the plant out and basically start over. crews that should be picking healthy berries are busy calling the bad fruit. there is still some pre rain-free to the supply chain. but when that's gone tomorrow says fresh strawberries will be scarce for a week or 2 in prices will go up for a time, these next couple of days are going to notice a less berries being picked unless there is being sent out right now is prime time for strawberries navarr

some advisers like trade adviser peter navarro arguing for tariffs, others are opposed. had to be physically separated at one point. 0ne diplomat involved said they were even, "...having fights in front of the chinese delegation". gary cohn was the president's economic adviser until last year, he says, "every dollar of tariff that's collected is coming out of disposable income of the united states consumer". the point is the fact that he is not in the white house suggesting the argument went against him.|j in the white house suggesting the argument went against him. i think ultimately, if you look at who occupies the big chair in the white house, it's trump and we all know that he is a big proponent of using these kinds of terrorists, he that a before and imposed a before and the fa ct before and imposed a before and the fact that we see him ratcheting it up fact that we see him ratcheting it up as an indication he believes it's a tactic that works. thank you both. authorities in germany have fined the car—maker porsche nearly six—hundred—million dollars over a diesel em

secretary steven mnuchin, but then on the other side things there were people like his trade adviser peter navarro who were telling the president this is the move that would get mexico's attention. of course, that rollout has not gone as smoothly as the white house had hoped and they are getting an earful from some republican lawmakers on capitol hill who are urging the president to reconsider this move but so far, us a showed on his twitter feed, he's not shown any signs of backing o. >> that is an understatement, and since they haven't been living under a rock at the white house, i'm sure they expected this backlarks even from members of their own party. thanks for that reporting. wall street is react quickly and harshly to the terror threats. the president's move adds more economic certainty to the markets already unnerved by the prolonged trade fight that's going on with china. let's get straight to the new york stock exchange. alison kosik is there. alison, you understand the pulse of that place so well. explain why this is such a big deal to investors and what we've seen so far since the mar

business groups so furious they may sue over this, but peter navarro says investors should look at ity. >>> and an ugly month on wall street, major averages all down more than 6% in may. bond yields are slumping too the 10 year below 2.2% we'll look at how best to position your portfolio. >>> and retail stocks are having their worst month since the great depression all bad news

manufacturing but you also had one of his top economic advisors peter navarro arguing on c.n.n. b c that this is about dealing with what the u.s. considers a national emergency which is what the trumpet ministration argues is an immigration crisis at the border between the u.s. and mexico this is what the president's spokesperson sarah sanders told reporters also on friday about the terror threat. we've been giving them advance warning for months we've asked them repeatedly and told them they have to do more let's not forget that the average individual that crosses over the southern border of mexico it takes $21.00 days before they reach the united states border that gives them 3 weeks in which to break up particularly these large groups just this week we had over a 1000 people that moved is a massive group through mexico and came to our border untouched. now whatever the message is coming from a u.s. president donald trump and his top aides the fact is the impact on the financial markets has been quite chaotic the main stock market indicator the dow jones is down more than $200

certainly seems like the likes of trade advisor peter navarro and lighthizer who leads the negotiations from the u.s. side are winning the argument of taking a tougher stance, and even the treasury secretary, steve mnuchin, somewhat of a dove, came out and said his entire economic team is supporting this raising tariffs, and then you have got the noises and the voices from outside the white house, like stephen bannon , writing an editorial, an opinion piece, saying that even if there is a deal, it will be a temporary truce -- i am quoting steve bana -- in a years long strategic war with china, -- i am quoting steve bannon. and with the democrats, chuck schumer saying it is time to hold out and backing trump's stance on tariffs. ironically, it is the farming states coming under the most pressure, so, yes, they seem to be winning the day in washington, but we do know that trump is concerned about the impact on markets, so, possibly, that will come into play at some point, but right now, the tougher, more aggressive stance from washington seems to be the position that is winning out in was

maybe peter navarro. risenrevenue has dramatically. the problem is there have been a number of studies released in the last couple of weeks by the federal reserve and others that show that tariffs are being paid by american consumers and companies, which is exactly what you would expect. one study by the new york fed suggests it is costing the economy $1.4 billion a month, and those are being paid by the people who import the stuff, not the people who sell the stuff. david: a lot of economists say this is effectively a tax raise. let's talk about exactly what the goods are. let's put up a chart of some of the goods that now have to any 5% tariffs -- now have 25% tariffs. michael: the problem is they had been absorbing the 15% tariffs. they probably can't do that at 25%. they will be figuring out who is going to lose money on this and who is going to be in trouble. you're talking about goods facing possible tariffs. 320 $5 additional billion in tariffs that might not hit until august. that is when it would really hit the consumer. you l

>> we have not heard from peter navarro from china >> lighthizer is the main guy and i still sense thata some what different approach from mnuchin on one side and lighthizer on the other in terms of what they want to see they feel embolden by the gdp number and even larry kudlow, indicated perhaps it stiffens the backbone of the u.s. because it is hurting our economy or if it is not enough that would seem to put us in a position where we have to give on some of our demands. the question is political too. >> wilbur ross is on the tape this morning saying white house is pleased with the way tariff dynamic came out remember he came out with the soup can says who's going to notice >> yeah. >> it is the same thing for months now you know that's positive if you want to deal with it they have to work out these very gritty things, 2025. by the way -- what if it is not military >> that's a big gift >> it is a big gift. >> look, i think that the president wants growth i did think that lighthizer cared more of defense issues or spying issues. >> and how to hold the chinese to whatever commitment t

this is deplorable what -- as peter tha navarro put it, enregistered agents on wall street behaving as they do, taking the china point of view against the president and his efforts to balance trade to create reciprocal relationships and to bring back -- have we got that full screen to kno show, wt this cost the united states in economic growth over the last 20 years, the deficits with china. do we have that? we're getting it, i'm told. while we're waiting to get that -- well, there it is. this is the u.s.-china trade deficit, which is $83 billion in 2001, it's risen to 419 billion, 500% increase. and over that time it's 4 1/2 trillion dollars stripped out of the economic growth. we have paid consultants saying it's a zero sum game. no problem. if it weren't for president trump -- and you don't have to comment on this, but feel free to do so. if it wasn't for president trump this nonsense would still be rolling. >> it would eventually come to the forefront, this would become a mayoa major political issue ad could lead to further radicalization of some of the people who are working class

. >> peter navarro -- he has helped some people i know bannon is your pal, can you find out whether hethe show. >> he did call me his brother when he saw me >> you are my brother. >> ask your bro -- >> and now people are talking about what if msci excluded them >> look at that stock. msci has been great. i really feel like we have to -- >> maybe we are already there with qualcomm. >> now we are going after the company that's following you >> what's left >> they always bought soybeans and boeing then when we start getting tougher, what did they do that piece read like he wants to be in the commerce department. >> okay, all economic with china. where does that lead us? >> and now i know you think it is a good election stance for him. this point, china's policy, 40 approved and 50 disapproved. it is not playing right. >> they have to go interview the people who believe the chinese paid the tax the base it is all about the base >> mnuchin in his testimony says largely the chinese have been paying for it in some fashion. he went onto say as well if we do 25% on 300 billion additional it wil

people like steve bannon and peter navarro, so to your point, it does not look like if this does not it may be a long time before they get together again. francine: does the president want a deal? does he will think -- does he think that being tough on china plays well with his base? marty: it plays well to his base, but to the extent that donald trump has principles, this is a core one. he does not want any deal, he wants a great deal. he casts it as if it should be great for both sides, but there are fundamental issues he wants china to address that will be difficult for them to do. francine: if we had china doing reciprocal things, if they basically pulled -- what the tariffs on the u.s. -- put tariffs on the u.s. goods, that hurts the economy, the thing president is most attached to. peter: near term, if there is retaliation, something like a tenth or two on gdp, what is more have -- important is what happens in the coming months. the cost could be considerably greater. if this salvo is enough to get the two parties together and a lot of pressure politically will happen, this cou

. >> i don't think peter navarro, who's, by the way, in charge i don't think he's trying to look forompany that they're going to sanction. what >> he's in charge? >> well, yeah. >> navarro >> yeah. do you have a problem with that? >> if you tell it to me, i believe you. >> david, remember what you did when you got away from the show? >> yeah. >> it wasn't to book a haircut, you were doing reporting. >> that's true. >> there's an interesting concept. sort of like when i was an obituary writer at the tallahassee democrat, i had to do reporting. >> speaking of day two, keeping an eye on qualcomm. >> what's going on there >> the stock is getting hit again, a bit more than the broader mark as well. >> we need to hear from malikoff. >> i have not spoken to him. it's my expectation that we're not going hear from him. they really don't have much to say at qualcomm other than we're seeking a stay and going to seek to appeal the decision of the judge. there have been any number of people i think "the wall street journal" editorial page is involved. >> downside, eps risk 50% if the licensing mo

good mood he was leaving the oval office area of the west wing along with ambassador lighthizer, peter navarrothe trade expert here was in the hallway in the west wing as well clearly a lot of trade-related activity this afternoon in the west wing. but the treasury secretary telling me the talks were constructive and in terms of future conversations with the chinese saying nothing planned as of now, wilfred >> we got that tweet, eamon, where the president said the imposed tariffs may or may not hold what's your sense of the administration's tariffs as to whether they keep them in place the significantly higher rate on the tariffs. >> it seems like the president's leaving himself quite a lot of wiggle room here the other thing that struck me front tweet was there was no deadline specified by the president. in the past we've seen the can kicked down the sxrood a future deadline it's march 1st, it's next year or it's whenever but what we didn't see in this presidential tweet is a specific indication of when these talks will continue. the president just saying conversations into the future will co

anything in our tool kit, there is been a consensus switch, joe, initially it was just you and me and peter navarro popular issue in this country and the chinese are playing with fire. >> jim, when we look at the market, so much of the sell-off have been laid over night. we are down 6.5% on the futures and we rally during market hours. i can't figure what's going on between the over night futures and actual day trading, what insights do you got? >> it is great to see you. you know i totally agree with you. people who are trading, i call them pajamas trading completely uninformed, don't know about the research and the cost and what's going on in retail they just trade and just being fools. but their money is easily parted >> i can't hear pajamas trader without seeing -- obamacare, remember that? that's why it is a bad thought for me it is always what i think of >> jim, who do you have today for healthy returns? >> i mean i would love to be fast and sure. he's the only guy in the whole pharmaceutical business that goes by first name he's famous and legendary and a doctor and he's exciting he comes to

i did not think he was as harsh as peter navarro, a little more toward larry kudlow. where's larry? is just a path i think what we need is a multi-year path to see that we actually want to be able to have big trade as opposed to trying to have regime change, which will not work because we'll just get the poas guy this guy is enough of a poa guy. >> jim, tesla, though -- >> they have got to play golf, though can you get a golf match doesn't xi like golf, right? >> i think he does >> if they're really good friends, they should be golfing together. >> i guess we've got to go we can't talk tesla. it's always a sport. >> i want to hear about tesla and sprint/t-mobile. >>> a morning it has been. the secretary of state sitting here on the set talking about the future of trade talks with china, which are weighing on the markets today. make sure you join us tomorrow "squawk on the street" begins right now. ♪ start spreading the news ♪ i'm leaving today ♪ i want to be a part of it ♪ >>> good thursday morning, welcome to "squawk on the street." futures obviously weak a number of things working

then you have hawks like ambassador lighthizer and peter know vario navarro saying record highs provide volatility to holding china to account. chuck schumer tweeting that president trump should hang tough on china, strength is the only way to win, he says it is unclear what senator schumer's motivation is there, farmers, business groups, and many other industry associations are advising the president to keep tensions down we will see what china ultimately decides and whether it feels that it is negotiating under threat sara >> so what is the current feeling in washington, kayla about whether we are going to see the tariff rates rise this week and further tariffs go through? >> i think the president is trying to raise the stakes here because there hadn't been this working assumption that the goal was to get a deal by this friday and he wants to make sure that china knows that the stakes are high there is a real cost associated with doing that. that being said, china in the past in september when president trump has made some of these overt actions even as negotiations have been going on