.
NEIL: ANY OF YOU A FAN OF THE
PEE WEE HERMAN MOVIES?
I HAVE A POINT HERE.
THERE IS ONE IN WHICH PEE WEE
HERMAN TAKES A BAD FALL ON HIS
BIKE, AND GETS UP, DUSTS
HIMSELF OFF AND SAYS I MEANT TO
DO THAT.
NOW YOU KNOW WHERE I'M GOING,
DON'T YOU?
I JUST DISCOVERED IT MYSELF.
THE PRESIDENT SAYING I MEANT TO
DO THIS.
THE PRESIDENT SAYING IN THIS
TRADE WAR, WHATEVER YOU WANT TO
CALL IT, THAT HE'S SENDING A
SIGNAL ON THE ONE HAND TO SEND
A MESSAGE THAT WE'RE NOT GOING
TO PUT UP WITH COUNTRIES THAT
TREAT OUR PRODUCTS UNFAIRLY OR
TAX THEM UNFAIRLY OR MAKE THEM
PROHIBITIVE TO REMOTELY GET
THEIR HANDS ON IN THOSE
COUNTRIES, BUT ANOTHER SCHOOL
OF THOUGHT HERE, THE PEEWEE
ARGUMENT THAT THIS DISTRACTS
FROM OTHER THINGS HE MAY BE
WANTING TO TALK ABOUT, LIKE
JEFF SESSIONS PROBLEMS, ALL OF
THAT, TO BUSTLE SENIOR DIRECTOR
OF RESEARCH JESSICA TARLOV WHO
CLEARLY BUYS ALL OF THIS, AND
MIKE MURPHY.
THE PRESIDENT HAS SUCCEEDED IN
GETTING US TO TALK ABOUT THIS
AND NOT SO MUCH THE OTHER
STUFF.
I HASTEN TO WARN THE OTHER
NETWORKS ARE MORE THAN COVERING
THAT OTHER STUFF BUT YOUR
THOUGHTS.
>> I THINK THIS IS SOMETHING HE
WANTED TO GET OUT FOR A LONG
TIME.
I DON'T THINK IT'S A
DISTRACTION.
NEIL: AND HE'S DONE IT BEFORE.
>> SO I THINK THIS IS SOMETHING
HE'S WANTED OUT AND I THINK HIS
MESSAGE IS THE WAY HE DELIVERED
THE MESSAGE MAYBE WASN'T THE
MOST EFFECTIVE WAY, BUT THE
MESSAGE BEING.
NEIL: HERE'S WHAT'S NOT MOST
EFFECTIVE.
TRADE WARS ARE GOOD AND EASY TO
WIN.
HE TWEETED THAT.
DO YOU AGREE?
>> I WOULD HAVE WORDED THAT
DIFFERENTLY.
IF YOU ARE TAXING US 50% IN
YOUR COUNTRY, WE'RE GOING TO
TAX YOUR PRODUCTS AT 50% COMING
INTO THIS COUNTRY.
NEIL: HE DIDN'T SAY THAT.
>> HE DIDN'T BUT THAT'S THE
UNDERLYING MESSAGE.
IF THAT, IS I HAVE NO PROBLEM
WITH IT.
>> THE WHOLE TRADE WARS ARE
GOOD AND EASY TO WIN.
I DON'T KNOW WHERE TO START
WITH THAT, CERTAIN NOT IN THE
1930s, RIGHT?
NEIL WAS A CUB REPORTER DURING
THOSE DAYS.
>> DON'T GET HIM STARTED.
NEIL: HOOVER NEVER RETURNED MY
CALLS!
[LAUGHTER].
NEIL: DID WE EVEN HAVE PHONES
BACK THEN.
>> I REMEMBER THE STORY, CAVUTO
DOESN'T WANT TO INTERVIEW
HOOVER!
WHAT'S NEXT IS A LEGITIMATE
POINT, WHAT MIKE IS GETTING AT
THAT.
GETS US TO CHINA.
THE PRESIDENT TALKED ABOUT A
NEW SPEECH, DAVOS WAS ONE,
STATE OF THE UNION WAS THE
OTHER ABOUT THE INTELLECTUAL
PROPERTY PUNISHMENTS COMING FOR
CHINA.
AFTER HE'S GONE DOWN THE ROUTE
HE'S GONE DOWN HERE, PRESUMING
HE GOES THROUGH WITH IT, THE 25
AND 10 WILBUR ROSS IS SAID TO
HAVE PRESENTED TO HIM.
HOW PUNITIVE WILL HE BE WITH
CHINA AND WHAT WILL THE
RESPONSE BE?
NEIL: ON THE OTHER HAND,
CANADA.
CANADA!
>> I THINK AMERICANS LIKE
CANADA.
>> NOT THE FIRST TIME WITH
CANADA, THE LUMBER --
NEIL: YOU WERE OKAY WITH THIS,
BOTTOM LINE.
>> WELL, IF IT'S NOT FAIR, THEN
MAKING IT FAIR I'M FINE WITH.
TAKING ADVANTAGE OF OTHERS
BECAUSE WE'RE BIGGER, I'M NOT
OKAY WITH.
THAT SETS OFF A TRADE WAR.
IF WE'RE BEING TAKEN ADVANTAGE
OF AND LEVEL THE PLAYING FIELD,
IF THAT IS THE CASE, I'M OKAY
WITH IT.
NEIL: THAT'S INTERESTING,
DEMOCRATIC AND REPUBLICAN
ADMINISTRATIONS HAD TARIFFS OF
ONE SORT OR ANOTHER AND COME
BACK, AND TO THE DEFENSE OF AN
INDUSTRY THEY THOUGHT WAS
UNFAIRLY TREATED HERE, BUT DOES
GET A LOT OF ATTENTION, IN THIS
CASE, BECAUSE IT REMINDS PEOPLE
THAT A LOT OF THESE COUNTRIES
HAVE THESE KIND OF POLICIES IN
EFFECT.
HOW SHOULD IT BE HANDLEED?
>> WELL, I AGREE WITH MIKE THAT
IT SHOULDN'T BE HANDLED IN THE
EXACT PHRASEOLOGY HE'S USING ON
TWITTER.
I FEEL BAD FOR EVERYONE WHO HAS
TO BE THE TRUMP WHISPERER.
IF THEY ARE TAKING 50%, WE
SHOULD GET A 50% BUMP OR
WHATEVER.
NEIL: YOU WOULD STILL BE UPSET
WITH HIM.
>> WELL, BECAUSE I'M A
DEMOCRAT.
NEIL: SERIOUSLY.
MIKE IS RIGHT THAT WE'RE AT A
DISADVANTAGE AND HE'S RIGHT TO
SAY GOOD LUCK FINDING AN
AMERICAN CAR IN JAPAN OR CHINA,
HOW DO YOU RECTIFY THAT WITHOUT
TICKING PEOPLE OFF?
>> I DON'T THINK YOU CAN.
FUNDAMENTALLY WE'RE NEVER GOING
TO MEET AT PARODY HERE AND
NEVER AGREEMENT ON BOTH SIDES.
AS YOU SAID GEORGE BUSH TRIED
TO DO THIS, OBAMA TRIED TO DO
THAT, SIGNIFICANT PUSHBACK TO
ORGANIZATIONS THAT DIDN'T LIKE
IT.
THIS IS A CAMPAIGN PROMISE.
DONALD TRUMP IS GOING BACK TO
WHAT GOT HIM ELECTED, HE'S
SAYING THIS IS AMERICA FIRST.
PEOPLE SAY IT'S GOING TO RAISE
COSTS FOR AMERICAN CONSUMERS.
I THINK BOTH THINGS APPLY HERE,
WHAT YOU SAID ABOUT THE
DISTRACTION GAME AND THE FACT
HE WANTED TO DO.
THIS PROBABLY WAITING UNTIL
OPPORTUNE TIME AND I WOULD ADD
TO THE HOPE HICKS, JEFF
SESSIONS ISSUE --
>> THE NRA HAS A STRATEGY TO
THIS.
[LAUGHTER]
>> I DON'T THINK THERE IS A
STRATEGY.
NEIL: TIMING IS EVERYTHING AND
NOT GREAT TIMING.
>> BUT ON THIS ISSUE IN
PARTICULAR, ONE OF THE
CRITICISMS OF THIS PRESIDENT,
YOU CAN CHANGE HIS MIND,
DEPENDING WHAT THE TIME OF DAY
IS, THAT'S NOT TRUE ON TRADE.
IT NEVER HAS BEEN TRUE ON
TRADE.
THIS IS SOMETHING HE ACTUALLY
BELIEVES.
YOU GO BACK ACTUALLY SHOWS YOU
WHAT KIND OF TIME ON MY HANDS.
I WATCHED HIS 1988 INTERVIEW
WITH OPRAH, AND HOW HE'S
TALKING ABOUT JAPAN AND CHINA.
NEIL: YOU ARE DULLER THAN I AM.
>> I WAS TRYING TO PREVIEW THE
NEXT PRESIDENTIAL RACE.
HE'S TALKING ABOUT JAPAN.
I'D MAKE OUR ALLIES PAY FOR
THEIR FAIR SHARE.
AND TALKING ABOUT JAPAN, THEY
SELL THEIR CARS AND VCR'S WHICH
TELLS YOU WHEN THE INTERVIEW
WAS DONE AND KNOCKING THE HELL
OUT OF OUR COMPANY.
>> YOU ARE RIGHT ABOUT THAT.
ONE OF THE THINGS HE SAID OVER
THE YEARS, WE ARE DEFENSIVE ON
TRADE WHEN IT COMES TO THE
CHINESE BECAUSE THEY OWN SO
MUCH OF OUR DEBT, DON'T RATTLE
THEIR CAGE, AND HE SAYS THEY
ARE PLAYING THAT THEY DON'T
HAVE THE UPPER HAND AND THEY
ARGUE THAT THEY DO.
I DON'T KNOW WHERE YOU STAND ON
THAT PARTICULAR ISSUE, BUT HE'S
GOING ON ON OFFENSE.
THIS IF IS GOING TO BE THE
TONE, AS A MARKET GUYS, HE'S
RIGHT TO DO WHAT HE'S DOING,
ARE YOU WORRIED FOR THE
MARKETS?
>> I'M NOT.
SIMPLY, THIS IS A REACTION TO
STATEMENTS THAT WERE MADE.
OVERALL WHEN YOU LOOKED AT
MARKETS, TWO WEEKS AGO TALKING
ABOUT THE ECONOMY OVERHEATING
INTEREST RATES GOING UP BEFORE
WE GET A SELL-OFF IN THE
MARKET.
NEIL: YOU ARE NOT WORRIED ABOUT
MORE PRODUCT GOODS AND SERVICES
WIDENING OF THIS.
>> AGAIN, AS LONG AS THIS IS
FAIR, I DON'T THINK THERE'S A
MASSIVE REACTION TO IT.
I THINK IT BLOWS OVER AND THE
U.S. ECONOMY CONTINUES --
>> SO MANY REPUBLICANS ARE
UPSET, SO MANY BUSINESS GROUPS
ARE UPSET.
THEY ARE OBVIOUSLY LOOKING AT
THEIR OWN INTERESTS.
>> THEY ARE LOOKING AT THEIR
OWN INTERESTS, DEMOCRATS ARE
UPSET, REPUBLICANS AREN'T.
NEIL: JESSICA WAS UPSET.
>> FEW DEMOCRATS ARE UPSET
ABOUT IT.
AND AS WE KNOW FROM THE ART OF
THE DEAL, EVERYTHING IS AN
OPENING OFFER.
I WANT 25 BILLION FOR MY BORDER
WALL.
IT PROBABLY WOULDN'T END UP
BEING 25 BILLION AND AGGRAVATES
EVERYONE WHEN HE SAYS THAT.
NEIL: SO THIS IS A NEGOTIATING
STRATEGY.
>> MAYBE IT IS.
I WATCHED THE SOUP INTERVIEW, I
DON'T KNOW WHERE WE'RE GOING
WITH THAT.
>> IT COULD BE DIFFERENT THIS
TIME.
BECAUSE THIS ISSUE IS DIFFERENT
FOR HIM.
>> IT COULD BE.
HOW MANY TIMES HAVE WE SAID
IT'S GOING TO BE DIFFERENT AND
IT'S ALWAYS ABOUT TRUMP.
>> I DIDN'T USE THAT