>> Sandra: BREAKING NEWS IN
THE TRADE WAR WITH CHINA,
LEARNING THEY WILL RAISE TARIFFS
ON $75 BILLION OF U.S. PRODUCTS.
JOINING US NOW IS WHITE HOUSE
TRADE ADVISOR PETER NAVARRO.
THANK YOU FOR COMING ON THE
PROGRAM THIS MORNING.
OBVIOUSLY THE WHITE HOUSE WANTS
TO PUT OUT A MESSAGE RESPONDING
TO THE TARIFFS, WHAT IS THAT?
>> THE PRESIDENT HAS DONE A
REMARKABLE JOB PUTTING THIS
COUNTRY BEHIND HIM ON THE CHINA
ISSUE THE LAST FEW YEARS BY
EDUCATING THE PEOPLE ABOUT
CHINA'S ACTS OF AGGRESSION, THE
FORCE TECHNOLOGY TRANSFER,
KILLING AMERICANS WITH CHINA
MADE FENTANYL.
CHINA CONTINUES ACTIONS LIKE
TODAY SIMPLY REINFORCES THE
TOUGH STAND THAT THIS PRESIDENT
TAKES.
FROM A MARKET POINT OF VIEW,
IT'S NOTHING THAT THEY ARE WELL
SIGNALING, REALLY IMPORTANT
TODAY AND TOMORROW, IF
JAY POWELL AND THE
FEDERAL RESERVE ASSURES AMERICA
THAT HE HAS THEIR BACK, IT WILL
FINISH UP THREE OR 400 POINTS.
THE EUROPEAN CENTRAL BANK
FOLLOWS THROUGH ON THE PROMISE
TO LOWER INTEREST RATES AND
ENGAGE IN EASING AND THAT'S
GREAT FOR AMERICA BECAUSE A
STRONGER EUROPE WILL MEAN MORE
EXPORTS SOLD TO EUROPE AND MORE
GROWTH FOR AMERICA, THERE ARE
SOME THINGS THAT ARE GOING TO BE
REALLY IMPORTANT.
>> Sandra: TWO BIG THINGS I
WANT TO BRING YOUR AUDIENCE
ALONG WITH YOU.
WE ARE 14 MINUTES INTO TRADING,
THE DOW IS OFF 91 POINTS, NOT A
HUGE LAUGH.
NOT A HUGE REACTION TO THE NEWS
BUT I WANTED TO POINT OUT AND
GET SOME CLARITY ON THIS BECAUSE
THEY UNDERSTAND THAT YOU LEARNED
OF THIS SLAP BACK FROM CHINA
THIS MORNING ABOUT THE SAME TIME
THAT WE ALL DID ALTHOUGH YOU
WERE ANTICIPATING IT, IS THAT
FAIR?
>> THE CHINESE SITE HAD CLEARLY
SIGNALED TO US THAT THEY WOULD
RETALIATE IN SOME WAY.
THE PROBLEM THAT THEY HAVE IS WE
HAVE A FAR MORE BULLETS IN
ARGONNE THAN THEY DO.
THEY TELL US CLOSE TO $6 BILLION
IN EXPORTS AND OURS IS A LITTLE
OVER 100.
>> Sandra: WHAT DOES THAT SAY
ABOUT HOW FAR THIS BATTLE, THIS
TRADE WAR COULD GO?
>> THIS IS NOT A TRADE WAR.
IT'S WHEN TWO COUNTRIES ARE
FIGHTING OVER LOWERING THEIR
TARIFFS.
BUT WHAT WE ARE FIGHTING ABOUT
IS TO HAVE THEM STOP STEALING
YOUR INTELLECTUAL, TAKING OUR
TECH TECHNOLOGY, MANIPULATING
CURRENCY AND HAVING THEIR STATE
OWNED ENTERPRISES RAMPANT AND
AROUND THE WORLD.
>> Sandra: THAT IS COMPLETELY
FAIR AND YOU'RE GETTING CREDIT
FROM BOTH SIDES OF THE AISLE FOR
THAT.
REPUBLICANS, DEMOCRATS, A TOUGH
STANCE ON CHINA, MANY SAYING IT
IS TIME BUT EVEN THE FARMERS WHO
SAY WE BACK THE PRESIDENT ON
THIS PUSH ON CHINA ARE TALKING
ABOUT THE PAYMENT THEY ARE
FEELING AND IN THIS NEWS, THIS
ANNOUNCEMENT FROM CHINA, IT'S AN
EXTRA 5% ON SOYBEAN IMPORTS,
IT'S AN EXTRA 10% TAX ON THE
IMPORTS OF U.S. PORK.
THEY MET PRESIDENT HAS THE BACKS
OF THE AMERICAN FARMERS, THEY
WILL NOT BE HURT.
WE HAVE A LARGE PROGRAM TO MAKE
FARMERS HOLE, AND WE ARE USING
SOME OF THE MONEY COLLECTING THE
TARIFFS AND IT GOES RIGHT TO THE
FARM BELT.
THE BIG PICTURE HERE IN TERMS OF
MACROECONOMIC EFFECTS IT IS
WE'VE HAD TARIFFS IN PLACE FOR
OVER A YEAR, WE KNOW THAT CHINA
IS BEARING THE BURDEN OF THOSE
TARIFFS BY HAVING TO CUT THEIR
PRICES, CUT THE VALUE OF THE
CURRENCY, SEEING THEIR SUPPLY
CHAIN HEMORRHAGE OUT OF CHINA
COMING BACK HERE GOING TO
VIETNAM OTHER PLACES AND WE HAVE
SEEN NO IMPACT ON CONSUMERS.
SO THE PEOPLE IN THIS COUNTRY
ARE BEHIND
PRESIDENT DONALD TRUMP WITH HIS
TOUGH STAND ON CHINA.
>> Sandra: NOW HE MAKES HIS
WAY TO FRANCE TONIGHT, THE G7
MEETING WITH THE PRESIDENT'S
MESSAGE THERE.
>> THE MESSAGE IS SIMPLY THAT
THE TRUMP ECONOMY IS BASED ON A
GREAT MODEL.
TAX CUTS, DEREGULATION,
UNLEASHING THE ENERGY SECTOR AND
HAVING FAIR AND RECIPROCAL TRADE
AND THE PRESIDENT WANTS TO SHOW
SOME LEADERSHIP THERE IN TERMS
OF MOVING EUROPE TOWARDS THAT
PARADIGM AFTER THE G7 WAS
CREATED TO BRING TOGETHER THE
LARGE ECONOMY TO TALK ABOUT HOW
TO GROW.
SOME OF THE INDIVIDUAL THINGS
AND I LOVE WATCHING THIS
PRESIDENT INTERACT WITH THESE
LEADERS, BORIS JOHNSON, GOING TO
BE IMPORTANT BY OCTOBER 30TH
THAT WE HAVE A RESOLUTION OF
BREXIT.
THAT MEANS WE'LL BE ABLE TO MOVE
SWIFTLY TOWARDS TRYING TO GET A
GOOD TRADE DEAL WITH THE U.K.
THE GERMAN ECONOMY, IT'LL BE
INTERESTING TO HEAR WHAT THE
GERMANS HAVE TO SAY ABOUT THAT.
>> Sandra: LET ME FIRE OFF A
COUPLE OF THINGS, WILL THERE BE
A TAX CUT BEFORE THE ELECTION,
LARRY KUDLOW SEEMED TO HINT THAT
ONE.
>> FROM THE MOMENT THE FIRST TAX
CUT WAS DONE, WE'VE ALWAYS
ENVISIONED TAX CUT YOU POINT OUT
NOT AS A MANEUVER WORRIED ABOUT
SLOWDOWNS, BUT SIMPLY TO GET THE
TAX CODE RIGHT, THE CORPORATE
TAX STILL HIGHER THAN WE LIKE,
SO I DON'T KNOW WHETHER WE WILL
HAVE A TAX CUT BEFORE THEN.
IT WILL BE VERY DIFFICULT WITH
THIS CONGRESS.
>> Sandra: IT'S BEING
CONSIDERED THOUGH.
>> MY POINT IS THERE'S NOTHING
NEW ABOUT THAT.
WE HAVE ALWAYS TALKED ABOUT 2.0
BUT IT SHOULDN'T BE INTERPRETED
AS A SIGN THAT THE ECONOMY IS
STRUGGLING.
WE HAVE A VERY STRONG ECONOMY.
I HAVE FIVE SECONDS LEFT.
>> FED CHAIRMAN DOES THE RIGHT
THING INSTEAD OF DRAGGING US
DOWN 2% LIKE THE FED IS DOING SO
LET'S GET IT DONE, JAY POWELL,
HAVE AMERICANS BACK AND IT WILL
ALL BE GOOD.
>> Sandra: WE WILL HEAR FROM