Our country has lost stupidly, trillions of dollars with china over many years, theyve stolen our intellectual property at a rate of hundreds of billions of dollars a year and they want to continue and i wont let that happen. We dont need china, and frankly , would be far better off without them. The vast amounts of money made and stolen by china from the u. S. Year after year for decades will and must stop. Our Great American companies are hereby ordered to immediately start looking for an alternative to china, including bringing your Companies Home and making your products in the usa. I will be responding to chinas tariffs this afternoon. This is a great opportunity for the United States. Also, i am ordering all carriers , including fedex, amazon, ups, and the post office , to search for and refusal deliveries, of fentanyl from china, or anywhere else. Fentanyl kills 100,000 americans a year. President xi said this would stop. It didnt. Our economy because of our gains in the last two and a half years is much larger than that of china. We will keep it that way. So, what do you make of this tough talk from the president , heather . Well, i think that this tough talk from the president , it definitely sent the markets a lot lower down over 700 points on the dow. The markets want a deal with china. The markets want some sort of resolution but the problem is that a trade truce may be far away if youre asking china to change things like their policies on Stateowned Enterprises which goes further than just the intellectual property issue. David jonas . I think the market doesnt like tough talk any more with china at the end of the day. I think the voters probably do. I think these are fair points the president is raising, if they were raised in a previous administration, before china got so large that its difficult to be this tough with them. I dont know if these companies are going to leave especially if they could just wait it out. Im not saying they shouldnt. I just dont think its feasible given the supply chains and infrastructure that have been built up over the last three decades in china so i think it is a difficult path. That said, and more importantly, i dont know. Chinas not going to keep drugs out of our country. Thats going to have to be our job. These are things that i dont see a path to fruition so to say so you asked david, what do we think of the president s comments. Theyre completely irresponsible is what they are, and he first of all, he cant order these things to be done. Even if he thought they were reasonable things. David were going to talk about that in another segment. Weve got a special legal guest whose going to address that issue, but i want to bring in former Trump Campaign senior trade and jobs advisor, curtis e llis. Cart us, did the president go too far with these remarks . No this is a wakeup call. Its about time everybody puts this in perspective here, all this talk about tariffs and how much it costs. Everybody knows the price of everything, but the value of nothing. We are in a battle for the continued existence of the Free Enterprise system for america itself. He talks about the fentanyl killing 100,000 americans a year this is real. About the destruction of our industries, this is very real. There may be some shortterm pain here, but we need to maintain our way of life, our economy. We cannot continue to have an economy based on Free Enterprise principles when the second largest economy in our trading partner doesnt respect any of that. Curtis, i think a lot of Market Participants would agree in terms of the long term strategy, shortterm as they are experiencing this volatility, it hurts when americans look at their 401 k balances it hurts on a day when the dow closes down more than 600 points. Sure. There are a lot of people looking at Peter Navarro saying hes the problem in terms of advising the president. What are your thoughts . The problem is xijinping. The problem is the Chinese Communist party that wants to exterminate our industries. Long term, i will tell those people who are worried what my financial advise or tells me. Look at the long curve. David curtis im sorry ive got to break in and im sure you would approve because its from the president of the United States. President trump tweeting right now, for many years, china and many other countries has been taking advantage of the United States on trade, intellectual property theft, and much more. Our country has been losing hundreds of billions of dollars a year to china with no end in sight. It continues. Sadly, past administrations have allowed china to get so far ahead of fair and balanced trade that it has become a great burden to the american taxpayer. As president , i can no longer allow this to happen. In the spirit of achieving fair trade, we must balance this very unfair trading relationship. China should not have put new tariffs on 75 billion of u. S. Product, politically motivated, starting on october 1 the 250 billion of goods and products from china currently being taxed at 25 will be taxed at 30 . Additionally, the remaining 300 billion of goods and products from china that was being taxed from september 1 at 10 will now be taxed at 15 . Thank you for your attention to this matter. So curtis, he is up the ante. Thats right look previous generations have sacrificed far more to defend our country. This is a very small price to pay to protect our way of life and our country, because that is what is at stake here. Theres a new movie out called American Factory that shows what its like to work under chinese masters. It is not a pretty picture, and thats exactly what china has in mind for all of us. Curtis, i have a question for you. Go ahead, adam. So i have a question. So lets leave the chinese aside for a moment because we know what theyve done wrong. Do you think its part of the Free Enterprise system for the president of the United States to tell American Companies where they can make their products by tweet . He is telling, well look. The u. S. Congress and thats part of the Free Enterprise system that you started your comment. Thats really my question. Is this an example of Free Enterprise here . Well here is a question to you as part of the Free Enterprise system to invest in a communist dictatorship that doesnt respect private property well you just asked two questions rather than one, but the fact is yeah, yeah, right so should you be investing, should you as an investor, you as the head of a company, be investing in a place that does not respect private property, that rips off intellectual property, and that has as its goal the ex termination of private enterprise . Curtis let me ask you a broader question because as weve seen the ante was just up ped a little bit 5 by the president. He promised he was going to be making a statement and that was it before he leaves for the g7 meeting. A lot of people are asking particularly on wall street, are we interested in getting a deal with china or are we more interested right now in isolat ing china as a country that you simply cant do business with. Sounds like thats where youre going. We never did business with the soviet union on the same terms we did business with western germany, france and great britain. We should not be doing business with china the same way that we do business with our allies. I mean, because they dont do business the same way. They have government, china has government supported enterprises they subsidize their exports. They do not adhere to the rules of the World Trade Organization. They violated every agreement they signed on to. Let me ask you this. The market doesnt agree with you curtis. Do you think the president should be having a fight publicly like this on twitter attacking the president of china just raising the stakes here, for example, the market wasnt open its 5 09 but if it were i could only imagine how it would have reacted to this today or should these be conversations that are, you know, had behind the scenes, between the leaders, between the two negotiating groups. Well weve seen these negotiations been going on for months, and then when its close to an agreement, china pulls back, and then backtracks on all of the progress that was made. This is typical business for china. Spoken with many people who have made many deals in china, and they get everybody excited about ready to sign on the bottom line , and then they renig so everybody is so invested in a deal they say okay well make a deal anyway, so this is the way they do business, and the president sat down with his trade advisors all day today before he put out these tweets. Its not like he just fired this off without thinking about it. Its about time that the markets and everybody else understand clearly whats at stake here. This is not about the price of tube socks. David go ahead jonathan. This is the long term viability of the american system trump said specifically the unfair tariffs increased i want to talk about the recent tweet. Do you think the chinese are and to some extent other partners are specifically tariffing products from other states the president needs to win reelection to keep the trade war going . Absolutely. Whether its whiskey or to go into europe, i see cars for exports and china come out of the south. Other products, the farm belt, theres not like taxing movies and Financial Services flows coming out. You bring up a very good point, jonas. Youre exactly right. Chinese are using tariffs as economic sanctions targeting politically sensitive areas. Our tariffs on china came after a long investigation which found specific products were being unfairly subsidized, illegally subsidized and are in accordance with World Trade Organization standards for imposing tariffs. China retaliated with political ly targeted tariffs, not under World Trade Organization, not according to the guidelines that allow them, so they are using their tariffs as economic sanctions to create regime change in the United States. Completely wrong. David curtis, this whole china stuff has come out on a day when the fed came out with a report, theyre meeting in jackson, the head of the federal reserve, the chairman came out and said that the thing that would make them more interested in lowering rates is if there was more trade problems with china. Its then, when we saw the tweet s from the president bringing china up to the floor. Do you think theres any connection there . Was the president trying to force the hand of the fed by creating more problems for china that would force the fed to lower rates even more . Well it certainly will be a message that Jerome Powell is listening to. David so thats a partial yes. That is a partial yes on my part. I think that hes made it very clear as have the markets that the fed made a mistake by raising rates earlier this year. David okay, i just want to reiterate what has happened here , gang, because wed heard earlier today that the president was going to make some remark about china with a retaliatory trade tariffs on our goods, and in fact, he just did that in a tweet that he issued i wont read the entire tweet, but starting on october 1, the 250 billion worth of goods from china that were getting taxed at 25 , itll go up to 30 . Additionally, the remaining 300 billion that are getting taxed and i say taxed its a tariff, but tax tariff is basically the same thing, at 10 , will go up to 15 , so a 5 increase on the tariffs that are going to be imposed on all chinese products. We want to thank curtis for joining us in this first segment thank you very much. David a lot of questions over the language trump used in his tweets today. We just talked about it but can he legally follow through with his demands on u. S. Companies . Were going to be asking former bush 43 advisor and Attorney Brad blakeman coming next. Patients that i see about dry mouth. They feel that they have to drink a lot of water. Medications seem to be the number one cause for dry mouth. I like to recommend biotene. It replenishes the moisture in your mouth. Biotene definitely works. [heartbeat] were changing whats possible. For instance, we know how your customers shop. And what theyve already purchased. Like this lamp. And we use those insights to show you what they might consider buying next. Midcentury modern, nice. That way, you can keep sending them offers for the perfect products. And that keeps them coming back. Hows that for changing whats possible . David well President Trump ordering u. S. Companies to leave china also calling for carriers like fedex, amazon, ups and the post office to search for and refuse deliveries, of fentanyl from china. Fedex responding they already search for Illegal Drugs and just moments ago there was a tweet put out by the president where he announced new heighten ing tariffs, not new tariffs but raising the tariffs from 10 to 15 in one case, and 25 to 30 in another, so up in the ante all acrosstheboard with our trade in china lets bring in attorney and former gw bush advisor Brad Blakeman to talk specifically about whether the president can actually order companies, u. S. Companies, to get out of china. Can he legally do this, brad . I think it would be extraordinary for the president to do it. I think obviously, whatever the president did would be tested. The president has broad powers in times of emergency under the Emergency Powers act, but he also has great breadth with regard to the powers that he has in the executive branch and those executive Branch Agencies that have jurisdiction over trade, like the commerce department, like the trade representatives office, like the justice department. I dont think the president was speaking directly as an order to these companies. What he was was sounding the alarm, that if they were smart they would think once, twice, three times with doing Business Inside china and look to other places that are more favorable to not only the treatment of their companies but also to america broadly. David heather go ahead. Yes, brad, hi this is heather. So ive heard of this china plus one strategy which is basically youre shifting some of your production to Southeast Asia countries and other countries around the world that keeping your Manufacturing Base in china , is that something that is that maybe the president is talking about where at least youre limiting some of their exposure away from china. Hes warned you and warned you again, so now companies are implementing this china plus one strategy. Right and i think each company has to look to their own interests as to what their business interests are in china, how they can diversify putting your eggs in one basket is not the smartest thing and i think thats part of the president s message as well. This is a game of chess not chicken. The chinese dont know what to make of donald trump because hes never fit the kind of model that theyre used to and thats a good thing. The fact that the president has kept them off their stride and has tested them and has not put up with their nonsense is ultimately good for americas shortterm pain, long term pain, china thinks 100 years we think by news cycles. Brad i just want to ask you its not Like Companies havent necessarily been looking at this trade war and rostrate squeezing and moving their Manufacturing Bases they have been doing this and there is evidence of it but at a certain point some of the other companies that theyre moving to, vietnam, for example, doesnt necessarily have the infrastructure or the power or the tools to be able to support the kind of manufacturing that happens in china. Some experts that ive spoken to have said you can move some of it out. Youre just not going to be able to move all of it out, so he can tweet Something Like this all he wants, but putting more pressure on companies to do something that they cant necessarily do puts them in a difficult spot. Well, i happen to believe that just the rhetoric alone is a strict message to china, that we are looking at this on all fronts. We are going to be prepared, if necessary, to play real hard ball with you. Something that no administration in recent memory has even dared attempt to do but china has got a bigger problem than we do. They have had Aggressive Growth that they cant keep up with and they have 300 Million People they have to feed, house, clothe and put to work, so theyre not going to continue to build their economies based on cheating everybody elses including ours. David brad what about those comments about fedex and ups and everything. Can he really force them to have government oversight of their packages . Yes, i think thats probably where the president s powers are probably more direct, because youre talking about companies that are being used for the transfer of narcotics to our country. If thats not a National Crisis i dont know what is, but those companies have the ability to use manpower as well as technology to prevent that kind of export of poison to our country, were killing our kids. Brad this is Adam Lashinsky with fortune. I just want to try to elevate the conversation a little bit. Youre an attorney. You said earlier that you didnt think the president was exactly telling anybody what to do as opposed to suggesting. I dont have his tweet in front of me but i believe it was something along the lines of i here by order. Would you just address that as a lawyer, please and as a lawyer who works for a president. Does the president have the ability to say, i order you, apple, to move your factory. Again