He will make the case why this is the exact right move. He will be with us in a few minutes. President trump making headlines by pulling the u. S. Out of the reagan era Nuclear Treaty with russia, saying they quote, made no efforts to comply. Well break down the tallout with another major Foreign Policy decision. All that and so much more on making money. Charles well the markets are sharply lower after President Trump says a new round of tariffs on 300 billion in chinese imports will go into effect on september first, renewing trade fears on wall street. The president says china is pulling back from the parts of the deal the two countries agreed on three months ago. Now china threatening to slap back with their own retaliation. Go to Edward Lawrence live at white house with the latest. Reporter charles, president following through with the threat, september 1st the additional deadline for the tariffs. The chinese upping the ante. In fact the chinese say they will impose countermeasures if the tariffs go into effect. Our chinese sources that china refused to add back any language into the agreement that had concessions or enforced the deal. The chinese also told u. S. Trade representative Robert Lighthizer according to sources they will not change laws to protect intellectual property. Our sources also say the directive to departments in beijing to start decoupling from the reliance on the u. S. That means buying items from out sources or make it in china. The administration not worried saying the Economic Impact of tariffs will eventually bring china to come to a trade deal. The economic burdens have fallen most heavily on china. They have had to slash prices, to try to compete. That has done damage to their profits in their companies and their economy is in very big slowing mode. Reporter today, a spokesperson for the Chinese Foreign ministry saying quote, they will not accept extreme pressure and intimidation or blackmail and we will not give an inch on major issues of principle. China is digging in. So is the white house. We had a deal in place. The problem was at the last minute they came back and tried to renegotiate that deal. And we understand that but the president said he is not going to sign a bad deal and they also promised a couple things. They would buy more ag products protecting our farmers. They havent done that the president said, it is taking long here. We want more pressure on you guys. It doesnt hurt us at all. It makes china actually contribute. Reporter president is believing that the china is paying the tariffs through devaluing their currency or subsidizing their companies to keep the cost of merchandise a little lower. Still if jobs numbers come in the administration believes that the Strong Economy will help weather the storm to get to a better trade deal then. The economy created 165,000 as an average job making every month this year. 3. 7 is unemployment rate. Wages have grown 3. 2 over the past 12 months this shows the status quo, the economic expansion is continuing. Charles . Charles edward, thank you very much. One of the president s biggest backers when it comes to using tariffs as a weapon on china is, particularly in this case for not upholding their end of this deal is Peter Navarro. Head of trade manufacturing policy. He is assistant to the president. He is with us now. Peter, a lot of people blaming you today. This is the hawk. He has President Trumps ear. It is a huge mistake. It will hurt American Consumers. What do you say to those critics . Lets work to the question from todays news, for example. We had a very good jobs report. A couple of things that you didnt mention, 16,000 new manufacturing jobs. That elected. Weve created over 6 Million Manufacturing jobs. Charles over six million jobs, about 4 or 500,000 manufacture jobs. Correct. My point is charles also note, hours worked in manufacturing dropped down to a level they havent been in about a decade. More than that, i dont want to go over all the data one other thing if may in order to get to china to make the strong argument that these tariffs will not hurt us in any way, that they will be good for the economy and the market we have to parse through the data. The other thing that happened we had hundreds of thousands more people come into the labor force. The Labor Force Participation rate picked up, so, thats good. We had the fed do two things this week, which is lower Interest Rates, but as important, end the quantitative easing. So we have everything in place now for a continued, strong, performance of our economy. Charles right. Then we looked at, what happened with china. Now, the context here, charles, is that President Trump has been perfectly consistent about two things going back to maralago in april of 2017, which is to say, he is always willing to talk with the chinese about the structural problems were taste facing. When the chinese fail to honor any commitment he takes actions and measures to move forward to defend this country. So, we started in maralago. We gave them 100 days. They didnt do anything. Ambassador lighthizer filed the 301 complaint to deal with the structural issues. From there, because china didnt do anything, we put the first round of tariffs on, 25 on 50 billion. Successive rounds on 200 billion. Every time we did that people ran around with their hair on fire saying there would be massive inflation, consumer would get hurt. For a few days around those tariffs there would be market volatility, the market would dip a little bit. But then people would realize, as they will in this case, while this is important for trade policy, between the u. S. And china, from a macropoint of view, and a market point of view, it is smaller potatoes. If you have, what we learned, here is what we learned, charles, this is the most important thing i will say today, what we learn from the chinese, every time we put on a tariff, what they do is they dilute the power of that tariff in terms of inflation on our consumers by lowering theyre prices, and by devaluing their currency. Charles right. From the day the tariffs went on, charles, to today, the currency the yuan went down by 10 and now it is flirting with that seven yuan to the dollar. This is how theyre handling it. We dont have to worry about negative macro impacts on our economy. Were going to be just fine. If youre an investor you have to see the chessboard and not get sucked in by shortterm trading where people get a little panicked on news. Charles i dont disagree with you. In fact the irony one of the biggest concerns is not the inflation that was promised a year ago by all the pundits and globists did you deflation particularly in manufacturing. Exactly. Charles we had 370,000 people come back into the labor force. The fed will stop quantitative tightening sooner rather than later. Lowered by a quarter point. Let me make this prediction again, because i have said this on a couple times here. If the fed lowers three more times for a mexico canada agreet passed in late september as we should, welo past 30,000 on the dow and we will easily hit our benchmarks in terms of over 3 on real gdp growth. If you look at q2, charles, we w to some people but if you look at that, you understand that well do better in the Third Quarter and you understand that the reason why we charles some adjustments. Negative 44 billion for inventories. Peter that will be adjusted. A lot of people talked about the 4. 3 growth in consumer because70 of our economy is the consumer. Let me ask you since you bought up the fed a couple, let me ask you real quick i know you have your whole thing laid out and you want to get it out there. I want to interrupt with a couple questions. If the fed cut by 50 basis points, would the president have done this. Hard to say. Heres the thing, charles. Why, if you read that tweet, that was probably one of his finest tweet hours. That was a very wellcrafted tweet. And what he said basically was this, china failed to meet number one, its commitments to make significant agricultural purchases. Now i was there in buenos aires on december 1st, 2018 when they made the commitment the first time didnt fulfill it. I was there in osaka a few months ago, made it again and havent fulfill it. Charles when the team asked why didnt they fulfill it the first time, what was the answer . China being china, come on charles. But the other thing, charles, there are three things going on here, the other thing is this february at that nil. By the end of fentanyl. By the end of today 100 people in america will be died from made in china fentanyl and opioids. By the end of the week it will be over 1000 people from made in china fentanyl and opioids. By the end of the year it will be over 50,000 americans. These people are accountant, truck drivers, war veterans who survived afghanistan and iraq and they came back here and got laid dead by a speck of dust of fentanyl. Charles rfk, jr. s granddaughter passed away from a overdose. Hits every corner in our lives. The Chinese Administration did this charles peter, folks who are afraid, you and i know, you wrote a book called death by china, the coming china wars, made in china, how the of darkness, the yoke of chinese imperialism in the third world. You have been preparing for this for a long time. You think this is the right fight. Many americans arent sure. How long will it last . Because i think the longer it lasts the more unsure the broad population is going to become . Let me say two things here. One is that tariffs that the president just put on were bullish on the economy, were bullish on market. This will not have a major Financial Impact on the stock market. So take that away. In terms of the american people, in the last 2 1 2 years there has been a great understanding of the china problem. You look at a Harvard Harris poll done several month ago, you had eight out of 10 republicans supporting the china tariffs. 53 of americans behind the tariffs. Within, within a very short time when the president announced these tariffs, who supported him . Senator charles schumer, a democrat. So i think this is an issue that the American Public is united on. People understand because the president has educated them about it. It is not right for china to cheat us. Charles we have to go. I want to say youre right of the American Farmer overwhelmingly still support the president as well. Thanks very much, peter. Thank you, charles. Charles as see on the screen. President trump is coming out. He is expected to make remarks, not just about this tray deal with the eu on beef, american beef, but also perhaps update us on this china trade situation. Here we have it, the president of the United States stepping up to the lecturn. I wish we could wear them in washington. I dont think i could get away with it here. Thank you very much, everybody. Appreciate it. And wonderful deal for a lot of people. Today were signing a breakthrough agreement that will make it easier to export american beef into the European Union. We have been under negotiation for quite a while and, our beef farmers we didnt think were being fair but the European Union stepped up. We appreciate it and we have great representatives here with us today. This is a tremendous victory for American Farmers, ranchers and of course european consumers. Because american beef is considered the best in the world. Were delighted to be joined today by ambassador Robert Lighthizer, deputy secretary of agriculture senski, European Union ambassador to the United States, stavros and representative of the presidency of the council of the eu, yani rapino. I want to thank senator john hoeven is here. John, good job here. Along with the president of the National Cattlemens beef association, jennifer houston. Thankthank you, jennifer. And the president , ceo of united state meat export association, dan hall strom. Thank you very much, dan. Congratulations. The agreement we signed today will lower trade barriers in europe and increase access for American Farmers and ranchers. In year one, exports to the eu will increase by 46 . Over seven years they will increase by another 90 . In total the dutyfree exports will rise from 150 million to 420 million. An increase of over 180 . My administration is standing up for our farmers an ranchers like never before. Were protecting our farmers. Were doing it in many ways, including with china. You may have read a little bit about china lately. Agricultural products an exports have increased by more than 10 billion. And beef exports have increased by more than 31 . In another major win we fully opened the japanese market to u. S. Beef. We also opened markets in tunisia, morocco, and australia. I think youre pretty happy about all that, right . You have never seen anything like that happen before, have you . Not with your other president s you havent. Were reducing burdensome regulations that unfairly impact agricultural producers. When our farmers became victims of unjustified retaliatory tariffs from china and other countries we provided 28 billion over a twoyear period in relief. They were targeted and we took care of our farmers an ranchers. I signed an his tore ekh farm bill which provides our farmers with certainty, the kind of certainty they need will supporting increased agricultural exports. The agreement we are about to sign keeps one more promise to the great patriots of american agriculture. These are indeed patriots. Theyre always targeted first by other countries to try to take advantage of the United States. Theyre the first to be targeted but, we, we take that target off their back. Opening markets for our farmers is about more than just an industry. It is about a way of life. Generations of hard work, passion, and dedication have gone into making america largest producer of high quality beef anywhere in the world by far. Were proud of our farmers an ranchers. We love our farmers an ranchers. And with this announcement we take one more step giving them the level Playing Field that they have been, really been looking forward to this for many, many years. You folks know that. They want a level Playing Field. Thats all they want. Nobody can beat them. So i want to thank you all for being here. I would like to invite a very great gentleman a friend of mine, somebody thats done a fantastic job for our country, ambassador lighthizer to say a few words. Well follow that up with some of the very high officials from the European Union. Thank you very much. Bob . Thank you. Thank you, mr. President , for being here today, for your leadership in making trade policy work better for all americans but particularly our farmers and ranchers. Im pleased to be joined today here by mr. Rapina, the deputy chief of mission of the embassy of finland, the eu member state that currently holds the presidency of the council of the European Union and ambassador stavros, the ambassador from the eu this agreement will nearly triple the dutyfree access of american ranchers to high quality beef in europe. Initial estimates indicate u. S. Beef will grow over 270 million a year once the agreement is fully implemented. With this new exclusive countryspecific quota american ranchers have a guaranteed market share in europe. We look forward to the European Union approving this agreement expeditiously. Charles where we go from here with all of, sure vest ceo rob luna, vision four Fund Vice President , heather zumarriaga. We made a 900 point reversal from yesterdays highs to todays lows. Obviously the stock market does not like this sort of uncertainty. Although i had Peter Navarro on. He made great points. Economically all the tariffs we had in place, some of them for a year now, had a diminimus impact on economy. Markets at alltime high, wages are soaring, so forth. How do you deal with that as an investor . As an investor right now, if you look at the first round of tariffs that we had, the markets really initially sold off but they have continued higher, setting record highs. So im not saying that a 10 tariff wont have any impact on the economy because it will. According to city group, for example. It will have a minimal impact on gdp of. 1 to. 2 of 1 . I think the initial impact by the market is overblown. Charles rob . I dont know. Somewhat agree with heather, charles, but if you look at the market it is quite rational. Charles the market is rational . I think so. I think so. Were down, what, after alltime highs, 1 1 2, 2 , everyone saying that the skys falling. That is my point. It is not. Having a little bit of a pullback is healthy. Charles i agree over long term, market is rational, good stocks go up, but these kneejerk reactions, whether it is to the fed couple days ago, whether to trade, this is where people grapple, right . Im getting people tweeting me, hey, what about gold . They want to jump out of their stocks into gold, rob. I get worried about the general public following these kneejerk reactions, a month from now, two weeks from now, we could be talking about alltime highs again. Yeah. I agree. You have to remember the thing about gold, charles, it is a very speculative play. It is not paying you anything right now. If youre looking at 10year, down to 1. 8 , i think you dont want to go in fold. Look at some companies that reported earnings, kellogg, philip morris, these companies yielding 4 . I much rather be somewhere like that, sitting in gold hoping the sky false out. Charles it is interesting, heather, rob named a bunch of quote, boring stocks, the nonboring stocks are having a tough week. Technology getting shrugged, getting hammered. It wasnt just starting yesterday. Whats going on there . And is it okay that theyre get