that's what exactly is happening. the criminals take refuge in these sanctuary cities. and it's very dangerous for our police and enforcement folks. the smugglers traffickers gang members taking refuge. a lot of people in california understand that a lot of people from a lot of other places understand it and they don't want sanctuary cities. these policies release dangerous criminal offenders to prey on innocent people, and nullify the federal law. they are threatening the security of the safety of the people of our country, in the upcoming omnibus budget bill, congress must fund the border wall and prohibit grants to sanctuary jurisdictions that threaten the security of our country. and the people of our country we must enforce our laws and protect our people and i have to say law enforcement, border patrol all the people who have been so good to me all along, they are really doing a job. our job and i think we all understand the job would be a lot easier if we weren't protecting criminals in the sanctuary cities. we had a great talk about it inside. cooperation with mexico is another crucial element of border security. dhs coordinates closely with the mexican law enforcement and we must absolutely build on that cooperation. both countries recognize the need to stem the cross border flow of illegal weapons, drugs, people, and cash i have a great relationship with the president of mexico, a wonderful guy enrique. terrific guy. we are trying to work things out. we will see whether or not it happens. i don't know if it's going to happen. he is a very good negotiator. he loves the people of mexico. and he's working very hard. we'll see what happens. but we have to obviously have a couple of disagreements before we get there. you'll see over the next month whether or not it takes place in this administration, meaning his administration to have an election coming up. i hear they have some very good people running and maybe have some that aren't so good. in any event, we will handle it i want to, again, thank everyone for being here today and i want to, again, call on congress to deliver a budget that protects our homeland and properly funds all of our law enforcement needs. i want to thank the secretary. i want to thank ice and the border patrol agents for their incredible work and their incredible bravery. i want to thank all of law enforcement on the border. it's a dangerous job. it's a tough job. and if you didn't have even these remnant walls. we call them remnant. they have been here for a long time. people don't say that but they have been here for a long time. if you didn't have them, you would have crime in members that far surpass the numbers that you see today. we have cut down and way down on crossings, border crossings because of the job that the border patrol does. and the ones that get through, we have gotten out. ms-13. we are taking them out by the thousands. but we don't want them here in the first place. we don't want them to come in. so this was really a day where we look at the different prototypes of the wall. you see them. the media has seen them. some work very well. some don't work so well. when we build, we want to build the right thing. interestingly, the ones that work the best aren't necessarily the most expensive. something i like about that ring. so, i want to thank everybody for being here. i want to thank, frankly, the media for being here. and we will let the people of our country know that we need safety, we need security at the border and we are getting it, like we have never had it before. but we want to make it perfecto. thank you all very much. thank you folks very much. >> thank you, everybody. thank you, everyone. >> just quickly just to thank the president so much for his continued leadership as he says. cdp and ice both put their lives on the line every day to protect the country. we will build this wall so thank you for coming out today. we're building up a tool kit based on what we have learned from the research and development on the prototypes and we look forward to breaking ground very soon and securing our country. thank you gem ebb to the president for his continued leadership. >> thank you very much. thank you. >> will you veto a bill with no punishment for sanctuary cities? >> we're going to see. we're going to look at it we're looking at very, very strongly. sanctuary cities are protecting a horrible group of people in many cases. criminals. and what happened as an example in oakland was a disgrace to our nation. and we just can't let that happen. thank you very much. >> thank you, everybody. thank you, joe. >> thank you, joe. >> there you have it president trump reviewing 8 different border walls that have been proposed. also talking about the reason we need those walls, the crime, the societal costs, billions of dollars and a big focus, of course, on sanctuary cities there as can you hear and earlier he says sanctuary cities are the best friend of the criminal. so obviously president trump very serious about that. other members of the administration down there as well. these prototypes by the way, president trump going as far as saying we may not have to go with the most expensive but certainly we want the most effective. we must keep out the drugs. we must keep out the crime. and all of the other costs that certainly add up to billions and billions of dollars making his case and moving forward with a key promise of his campaign. meanwhile, i want to go to john roberts at the white house with the fallout from the latest shakeup. john? >> good afternoon to you, charles. and a real treat for the president there who has been talking about building a border wall for so long all during the campaign to finally get an opportunity to go down there and look at the prototypes. his big problem though is getting the money to build it. he has got a lot of heavy lifting in congress to go on that front. in terms of the changes that we see taking place today, swapping out rex tillerson for mike pompeo, this for the president is all about getting somebody for the future who is on the same page as him. the president and rex tillerson often found themselves on opposite sides of the ideological fence, if you will. a number of occasions and on a number of differing issues. with the president now looking at the possibility of sitting down to meet with the north korean leader kim jong un, possible negotiations to denuclearize the korean peninsula and awful lot of trade deals that the president wants to rewrite. he wanted to get somebody in the state department to take the lead on that who thinks a lot like he does. mike pompeo and he have spent an awful lot of quality time together, the cia director frequently down here at the white house to give the president his daily intelligence briefing and the president with nothing but great things to say about pompeo. listen here. >> i respect his intellect. i respect the process that we have all gone through together. we have a very good relationship for whatever reason chemistry whatever reason it is people get along from. day one i have gotten along well with mike pompeo. i have gotten to know a lot of people very well over the last year. i'm really at a point where we are getting very close to having the cabinet and other things that i want. >> the president saying is he getting very close to having the cabinet that he wants which may indicate there are still a couple more changes to come. the time line for awful this, state department officials said rex tillerson was blindsided by all of this. the first indication he had that he would be fired was when he saw the president's tweet just before 9:00 this morning. white house officials say that's not the case at all. that the chief of staff john kelly called tillerson when he was in africa on friday saying the president wanted to make a change and tillerson was going to have to step aside. tillerson, according to a white house official, asked kelly if the president could wait for him to get back on u.s. soil to do it. tillerson arrived back in d.c. about 4:00 a.m. this morning. five hours later, the president made the announcement. clearly though tillerson was not happy about the whole thing. listen to what he said when he met the press earlier today. >> i received a call today from the president of the united states a little afternoon time from air force one. and i have also spoken to white house chief of staff kelly to ensure we have clarity as to the days ahead. what is most important is to ensure an orderly and smooth transition during a time that the country continues to face significant policy and national security challenges. >> what i thought was pretty significant what tillerson said this afternoon, charles, at no point did he thank the president for the ability to serve in his administration. i don't exactly think there is a lot of good blood that will exist between these two going forward. charles charles : i got a feel, john you are absolutely right. >> thanks, charles: are we headed for fight mike pompeo and potential replacement at the cia gina haspel. let's go now to oklahoma republican senator james inhofe, a member of the armed services committee. senator, thanks for joining us. >> good to be with you. >> first your initial thoughts on this move which may not have been a surprise per se. it's been long-rumored. certainly the time is interesting considering all the things going on around the world. >> you know, i have to say charles on coincidence on another completely unrelated subject, i talked to tillerson over in africa. and he was meeting with a friend of mine in ethiopia. and of course, that was before this happened about a few hours before. so, i had into idea that did was going to happen. it was a surprise to me. you have to keep in mind two strong willed people, successful background. i think it's -- as you mentioned several times before. he has expressed discontent with tillerson in that role. so, i think he made the decision. and, i mean, look, right now, we have this thing coming in north korea that's going to have to be really well done and if you will remember, pompeo, mike pompeo was very actively involved in the very harsh words that our president used very effectively to kim jong il. i think there is good reason for this. >> also judged by the stock market reaction certainly economic component of it as well that sort of dovetails with gary cohn leaving the white house, the sort of wall street globalists for lack of a better term being removed and the economic nationalists being placed to drive hard bargains and it looks like the administration is zeroing in on china. we're going way past tariffs steel and aluminum. talking about unfair trade particularly the theft of intellectual property. looks like this administration is prepared to play hard ball. >> well, i think they are, too. by the way, i was, in on all that china stuff and the south china sea just two weeks ago. and that is a new threat that the president is very much aware of. it's going to have to be handled differently than it has been in the past because we have not seen an aggressive china in quite some time: charles: sir, i know also the border wall is something that's extremely important to you and i'm told that you are going to visit in a couple weeks. your thoughts on the president's trip there and still some push back that the administration is getting on this despite the fact that they have laid out all of the reasons, including societal costs and the economic costs of not having one? >> yeah. i think he has done a good job of that i am seeing a movement. i was a builder and developer for 20 years down in that very area where he is right now. so i have been there watching it. i have been firsthand position to see how well it does work. and i think this president, he made every commitment he has made during his campaign he is trying to keep. and he is really bending over backwards to do that. i think he is down there right now making it very clear. we haven't changed. we're going to get it it's a border wall. until that time, people are dying. and i've seen this happen before. the people are smuggled across and they are put into every kind of slavery you can be put into. he is sensitive to that one last thing about pompeo. he is so good on other issues, having nothing to do with this issue. i worked with him on keeping gitmo open. is he real strong on that. talked to him that this stupid iran nuclear deal was put together and he was fully aware of that. so, you know, it just goes back. he is the right guy for the right time. >> to your point, president trump this morning referenced that iran deal, that's one place where he and rex tillerson did not see eye to eye. north korea, of course, and jerusalem being the capital of israel. senator, thank you very much. always appreciate it? >> thank you, charlie. >> does the winner in the pennsylvania battle win over tax cuts or why some people are saying this race really has nothing to do with red or blue but everything to do with your green. and you are looking live at miramar marine air station at san diego, california. president trump will be speaking there very soon. we're on it. hi i'm joan lunden. today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice. almost $800 when we switched our auto and home insurance. with liberty, we could afford a real babysitter instead of your brother. >>hey. oh, that's my robe. >>is it? when you 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>> hey there, charles. it's apology location where conor voted earlier today. a lot of talk implications of this special election what it might mean for the mid terms later this year. on the ground in pennsylvania, both sides have been cautioning us against reading too much into that. they say it's about the two local candidates involved. rick saccone on the one hand. 60-year-old republican. state legislator, who claims to have been trump before trump was trump. i'm telling you he is in a very close race here in a district where the president won by nearly 20 points the last time around. i caught up with him at this location as he was about to vote earlier today. here he is. >> how are you feeling. >> i'm feeling great. we're excite you had. let me go in and vote for myself, huh? it's a great feeling. >> well, he did go in and vote for himself. when he came out he was holding up cell phone showing us his son who serves for the air force wanted to skype in and see his dad vote live. he didn't answer many reporter questions about why this race is so close. it's a 33-year-old democrat, former marine, former federal prosecutor named conor lamb who is making it so close. one of the ways he is doing it by running away from the national democratic party by speaking out against the likes of nancy pelosi, by coming out in favor of the president's tariffs, on steel and aluminum. now, we were with lamb earlier today as well when he voted. that was over in mount lebanon. he was saying at the time that he did not think this ways is so much a referendum on the president but he did add this. >> i think it says a lot about drank enthusiasm around here. people are really excited for this race and i'm happy for them that their voice is going to be heard all around the world today. this is a local race. people are voting for either me or rick saccone. i don't think it has anything to do with trump. >> you know the way these things work, charles it always comes down to turnout. for the republican saccone in the race the key is turning out the so-called trump democrats. many of them union members. they may end up deciding this race this evening. polls close at 8:00. back to you. >> charles: all right, it's a preview of what's to come in november. let's ask g.o.p. polster robert cahaley. robert, many folks say it feels like two republicans are running. the g.o.p. has poured millions of dollars into this race. the president was there over the weekend. donald trump jr. yesterday. a lot riding on this outcome. >> you know, it seems like that the lesson of 2016 ought to be that when the democratic party ignores the middle class, the democratic party loses. it's interesting the way that mr. lamb has come back and focused on reaching out. just even in his most recent tweet talking about the tax cuts. he talks about its effect on the middle class. they have figured out what they need to be doing. and this is focusing what they are doing on reaching these middle class voters that have felt abandoned by the democratic party and it's what you are seeing now is a move toward trying to get back to the middle and that's why they are doing well. >> robert, is he a democrat but running on a populace platform here. is that going to work nationwide? >> you know, it depends on where the democratic party starts focusing on the -- if they go the direction of bernie sanders, no. if they start running campaigns like they are running this one and like what have you seen in a few of these other special elections like not even special in virginia, if they start running trying to attract those middle class voters that trump got and taking positions that are more in line with the party we saw in virginia. >> charles: certainly looks like that's what lamb is trying to pull off here. robert, thank you very much. president trump meantime in california shopping for border walls. and as you might imagine, the protests are beginning to mount. we will keep you there when we come back. >> trump, you're not welcome here. >> no hate, no fear you know what's awesome? gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. ♪ >> charles: president trump in southern california moments ago vowing to fight those sanctuary city laws. former ice special agent claude arnold agrees. claude. >> it's a pleasure to be on the show. >> charles: thanks a lot. president trump taking a hard line of course attorney general sessions out there laying down the lawsuits that the administration is taking to them. but, a very vocal fight with the not just the state but cities themselves, for instance, the mayor of oakland just belligerently going after president trump and snubbing your nose at the constitution, the supremacy clause and everything else. but, to your point, president trump to the point that i think you want to make here is president trump is fighting back. is that what you want to see? >> well, yeah. and i think president trump is doing what a president's job is. and it's to preserve the union. and, you know, california is really what is the next step? succession? i mean, immigration regulation is completely within the pursue of the federal government. and for states to be passing laws that obstruct the federal government from doing immigration enforcement really does violate article one of the constitution. i think it's plainly written in there. and, you know, it's something the federal government should take action. >> charles: claude, were you surprised, the attorney general says not just states but some of these cities are violating the constitution but they are actually shaking down homeland security operations. they are going to these buildings and these facilities and shaking them down. i mean, you talk about succession. it looks like that's an act of war. >> well, yeah. and i think what you are referring to is the inspection of facilities that detain immigration detainees. it's ludicrous. you know, the federal government exclusively has the authority to detain people for immigration violations or to contract it out to private sector or public sector, you know, sheriffs and police departments. >> charles: right. >> for the state to say that they're going to regulate the federal government detaining people for immigration violations is ridiculous. are they then going to start inspecting federal criminal institutions marshalls prisoners and bureau of prison prisoners? it's ridiculous. >> charles: gave border patrol officials a big shoutout earlier as he visited these 8 prototypes. explain to the audience just what kind of stress, what kind of stress relief it could be to have the border wall and eventually have the removal of these so-called sanctuary city havens? >> well, look, having physical barriers including a wall is an integral part of any border security strategy. you really have to have it. if the border is insecure, people just pour across, it goes without saying. not only does that encourage illegal immigration but so do sanctuary cities. if you know you can go somewhere where state and local government are going to protect you in violation of the immigration laws, that encourages you to go to those locations. you know, furthermore, you know, i have to add because there is little mention made by the administration of this, but, really, one element that really has to be enhanced is the interior enforcement, specifically worksite enforcement. that is the magnet that attracts people, another magnet that attracts people to come to the u.s. to work. and unless. >> charles: i'm sorry, i was going to recently say we have seen ice step up its efforts in that area against amazing criticism from the mainstream media and others. of course, that is the job of ice. claude arnold thank you very much. really appreciate it. >> my pleasure. >> charles: house republicans on the intel committee wrapping up their russia probe. the conclusion? no collusion. a key member of that committee is here next. 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>> we're very happy with the decision by the house intelligence any saying there was absolutely no collusion with respect to russia and it was a very powerful decision, a very strong decision, backed up, i understand they are going to be releasing hundreds of pages of proof of evidence, but we are very, very happy with that decision. it was a powerful decision that left no doubt. >> charles: president trump praising a decision by republicans on the house intelligence committee to wrap up the russian investigation. the committee announcing yesterday that it found no collusion between the trump campaign and the russians. the house intelligence member and republican congressman from utah chris stewart. congressman, thanks for joining us. the conclusion is no collusion but there are still other investigations out there. president trump said something about releasing hundreds of pages of facts to back this up. it's pik piqued everyone's interest what helped you draw this conclusion. >> this idea of conclusion not finding any collusion that can't be terribly shocking. a lot of people have been saying it for a long time. senator feinstein, clapper has said it the truth is we haven't seen any evidence of that. so, again, i don't know why that would be particularly surprising to people. now, to your question, the report as we are working through it still, we want to work with our democratic colleagues over the next several weeks, but it's going to be something between 150 and 200 pages. it's a substantial work. we have made a real effort not to be partisan. we don't point fingers. we tried to down play the emotions and just in a very factual way lay out these are our concerns. here is what we found. here are the recommendations. that's the key is we would like the recommendations to be out there and be implemented before the next election. >> charles: can you share. so worries that you have and some of the recommendations that you might be making? >> yeah. for example, and i have to hold a lot of that a little close because it hasn't been through security. just generally and, again, things won't surprise people. we want to assure people that we have a process in place to protect the individual voting machines that every county is responsible for. we want to be able to make recommendations about recognizing russia's interference through use of social media and ways that we could counter that or at least make americans aware of that we want to work with our european allies who are experiencing the much the same thing as they have in the past. and one other example is the threat of cyber attacks that more directly affect our campaigns, for example, against the dnc as we have seen and against republican emails as well. so, i think under a large umbrella, that gives you a sense of some of the things that we have been looking at. charles charles 150, 200 pages sounds hefty, but there are a lot of folks out there that believe this was a witch-hunt from the very beginning. do you feel after going through the process and coming up with the conclusion that your committee has, that there was some credibility or at least a credible reason to go through this exercise in the first place? >> oh, yeah, absolutely. look, we live in very partisan times. it's too bad that something like this would have become so partisan and so divided. it certainly wasn't our intention. and, frankly, it shouldn't be. and any president other than pump that we were associated with, i don't think it would have been as partisan. anything regarding this president just breaks down along partisan lines unfortunately. yeah, absolutely it was important for us to go through this process. it's critical for us, as we look toward the future to say how can we counter this? how can we do better? if not then i tell you 2018 is going to be just as bad as 2016 and 2020 is going to be just a complete mess if we don't put our arms around this and get better at education folks. >> charles: to your point we heard there was a massive russian involvement attempt russian involvement in italian elections as well. something that's not unique to america. having said that your democratic colleagues, i suppose they will be coming out with their own version or their own conclusion. is there any chance it could be significantly different than the findings that republicans came to? >> i think on the heart of these recommendations and these findings, i think there is going to be bipartisan support for this. we tried to be nonpartisan, very factual. i think there is much of this they will agree with. we look forward to working with them over the next few weeks to find mutual agreement. some of in this i suppose they probably will differ with us. we welcome them to put their own comments into this report. they are more likely to do their own report. but, once again, the majority of this isn't partisan. it isn't divisive. it's just common sense. and i think that when people see the redacted portion of our -- you know, unclassified portion of our analysis, i think most americans are going to see and appreciate that. >> give us a sense since have you gone through your own process here of potentially how much longer the mueller investigation will drag on? >> yeah. i wish i knew. i mean, i think you could argue about mr. mueller himself hasn't found evidence or collusion in the indictments that he had. none of them have anything at all to do with collusion between trump campaign and any russian officials. so, it would seem to me that that's kind of his area as well. but, once again, we don't coordinate with mr. mueller. he is in a different realm. he is looking at things that we don't have the capacity nor the charter to look at. i hope he ends quickly just for this reason. the american people deserve to know. there is no reason why this should go on year after year. >> charles: absolutely. >> real quick, point on that. democrats gave us a list of like 90 or 87 witnesses. many of those witnesses we will never be able to interview. russians. in one case a man who passed away. if you say you can't conclude this till you view these people you would never conclude. let's do this as quickly as we can. >> you are right. the american public would like to have the answers now. it's been a long time. we appreciate you coming on. >> yeah, thank you. it's good to be with you. >> charles: i should let you know we have reached out to all democrats on the house intel committee to respond. so far none of them were available. president trump replacing rex tillerson at state with cia director mike pompeo. who will this shakeup impact the meeting with north kore korea? 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>> well, i think that the level of trust that has been demonstrated between the president and his director of cia is quite self-evident. he spendz a good part of his week and every day at the white house briefing the president on a full spectrum of intelligence matters. and i believe that relationship has only become stronger over the last year. and for that matter, i think that seeing eye to eye on a number of these issues should not be mistaken for director pompeo soon to be secretary of state pompeo's ability to actually tell the president what he thinks and where he thinks the president may be off track and where he, in fact, is on track. >> charles: david, we have less than a minute. how will this impact the iranian situation? can we expect ultimately for that deal to be pulled? >> i think what will happen over the course of the next several months is that secretary pompeo in that new position will bring to bear, again, the pressure of our european allies and others to really hold that iran nuclear deal to the fullest extent of what the agreement was all about. and in the absence of that, either a re-do of that agreement. >> charles: right. >> or withdrawal outright. >> charles: of course, we would like to see accountability also. thank you very much. we appreciate it in the meantime, folks, i want to take a look here at miramar marine air base station ratherner san diego, california. president trump will be speaking very soon. we are going to bring threw as soon as he starts to speak. call us or your advisor... t. rowe price. invest with confidence. hey, sir lose-a-lot! thou hast the patchy beard of a pre-pubescent squire! thy armor was forged by a feeble-fingered peasant woman... your mom! as long as hecklers love to heckle, you can count on geico saving folks money. boring! fifteen minutes could save you fifteen percent or more on car insurance. 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[bong!] ♪ >> charles: fox all over the place. up 200, down 200 all after the state department mike pompeo seems to be on the same page with respect top trade. is that going to spark new fears of a trade war? let's ask fox business network charlie gasparino and charlie rocha. charlie, i have got to tell you the economic nationalism is back and stronger than ever. >> well, tomorrow, we might see an economic nonnationallist come the head of the nec, larry kudlow, we don't know. and, you know, here is one thing i will say markets generally despise the trade stuff. the protectionist stuff. there is other stuff going on too in the markets. there was a small increase in inflation. i don't think that had much. >> charles: we were up after that number. >> i agree. some people trying to attribute it to that. i agree with you. there is the looming pennsylvania house race where it looks like the republicans are going to lose a seat, which will put tremendous -- if the republicans lose the house, man, they are going to be roasting donald trump for the next year. so, the democrats, then who knows what is going to harassment the markets are jittery for a lot of reasons. i will say this though, if larry kudlow gets in there tomorrow and this is what i think is going to happen. republicans will lose that house seat. >> charles: sure, sure. >> i have been wrong before. they will lose the house seat. they will announce kudlow and the markets will go down on losing the house seat and up on kudlow. >> charles: that's an interesting scenario. catherine, have you two globalists out in the last couple of weeks. you have two folks who really tea party candidate when he was in kansas mike pompeo, of course, peter navarro, we know wilbur ross. these are folks really serious about bringing back manufacturing and stopping china from ripping us off and now it seems like president trump is squarely on board with that as well. >> yeah, i think there is something, charles that we need to talk about which is the demistification of free trade. free trade is fantastic concept and i agree with it we don't have it with japan or china or europe. free trade is by definition the free flow of goods without any restrictions. there are restrictions right now. so i think it's important to keep in mind. >> charles: we place restrictions too though, don't we? >> charles: yeah, every country in the world has tariffs. no doubt about that. most favored nation is 7% around the world. but, chuck, you know, this may be one thing wall street doesn't like but i think it's something that voters like. in fact, your candidate lamb is running on this sort of same economic nationalism. >> you are never going to lose in campaign fuss are talking about bringing jobs back to america or putting america back to work even if you say it's going to cost you three more cents per can of beer. if that three cents is going towards an american worker, it's a win every time. smartest political decision no matter what the stock market does because the economy is doing good no. matter what the stock market does, it's a beautiful thing for the president to be able to talk about the distract from lots of things because it makes america have hope again and feel like the old days are coming back with manufacturing jobs that can support a family. >> i think the problem with the tariff thing. >> those jobs are never coming back. >> maybe save a few jobs in a very automated industry which is steel and aluminum production which is already losing jobs based on automation. >> did you sebring the jobs back, he already has the vote. >> a lot more over here in automotives and that could hurt donald trump in other areas. >> charles: at this point both you guys have legitimate points next salvo in all of? a lot of people don't understand the u.s. trade representative robert went after investigation last august, section 301, the trump administration now, forget about steel and aluminum. they goal after china strong, very strong on the theft of intellectual property like no administration has done before. i think that's going to upset the markets. >> i agree. >> i think pompeo was very strong on that. so absolutely intellectual property has been an issue with china and i suspect that he will go targeted to that. i mean, we had this brouhaha with nafta. nafta isn't going: the steel tariffs really they don't affect china. my contention is that they're unlikely to start a trade war in the sense that the most likely scenario. >> they just hurt our friends. >> negotiate: they are exempted. canada is the number one importer for us of steel they are exempted. our friends are exempted. >> charles: one second, catherine. i just want to alert of the audience that president trump is arriving in miramar, san diego. he is going to be speaking there very shortly. >> your point is great, i think. i think when i talk to market players, this whole thing about lighthizer and the 301 and chinese stealing our intellectual property, if you are worrying about markets, you make a great point there. every sophisticated trader i know is say going we get into a match with them on this and they come back at us because this is where they will be tough, it can really rattle the markets. this could be a real problem. >> charles: chuck, again, and i think this is something that is going to resonate very well with not just the folks in the heart land but maybe silicon valley as well. we are talking up to $600 billion a year in theft. >> that's exactly right. when you go out and we have been running campaigns all over the country and i'm guy on the tv right now that runs campaign force living. we focus group. this we go out and talk to voters all the time about the resurgence back in and the foreign competition. and we talk about the stock market because a lot of middle america has a lot of their wealth tied up in the stock market. the capital that you are talking about, voters actually get it. guess what, older voters have that capital. guess what? they vote every single time. >> charles: catherine, what are you telling people to do in the market. >> i'm less scared about a trade war. i think it's a risk. what i'm more scared about is fiscal policy. tax cut round 2 plus additional spending. >> charles: he is stepping up to the podium. let's hear what he has to say. >> marine station miramar. third marine aircraft wing and the mighty miramar. thank you very much. and we're here today to celebrate your incredible achievement. so relax, be at ease, and let's have a good time for a couple of minutes, okay? [cheers] and thank you for being here, darrell. colonel, i want to just thank you and colonel woodworth, i salute you both. you are tremendous, the job you've done. you lead the third marine aircraft wing and the miramar marines with the excellence and honor for which this corps is admired all throughout the world they talk about you. i want to thank all of the incredible soldiers, sailors, airmen and coast guardsmen who traveled here today from the stations all across the san diego region. i have a message for you, straight from the heart of the american people. and do you know what that is? we support you, we thank you, we love you, and we will always have your back like you have ours. thank you. [cheers and applause] and very importantly, most important, to all of the military spouses and family mems here today, we know that you really serve too. in many cases, you are the real boss in the family, right? we know that. so thank you. none of this would be possible without your incredible sacrifice and tireless support you give. thank you all. finally, to the thousands of marines here today from miramar. and camp pendleton. i want you to know how proud we are of everything you do. and you know, we have general kelly here, four star. he is doing a great job in washington. i think he likes what you do better than what he does but he's doing a great job. he misses you. your devotion fills our allies and our families with confidence. your courage feels our enemies with dried -- dread. countless young americans who dream of being the best to someday wear the uniform. of the united states marines. all of you know the truth of the famous saying, once a marine. always a marine. now, i have to say, the army, air force, navy, coast guard, you are great too. you know, we have a couple of them scattered. but i am with you all the time. today with those marines, i tell you. i gave a speech recently at the coast guard academy. it was so great. between and annapolis and west point, air force academy, we have done the mall or we are doing them. so we'll see you guys very soon. today i hate to say it. congratulations. and i am proud to say we have several really tough marines serving in our administration. not only john kelly but defense secretary. now, did anyone ever hear of mad dog mattis? no. he's doing a great job. chairman of the joint chiefs of staff. general "fighting joe" dunford. and our new director of the secret service and veteran of the third marine aircraft wing, general tex. do you know general? do you know him? big general. text, thank you. our administration is stacked with marines because marines are the kind of people you want at your side. and trust me, you don't ever want to be on the other side of a fighting marine. it's trouble. it's painful. they marines are the first into battle and the first to fight. marines never give up. never give in, never retrieved, and never, ever surrender. you are faithful to each other, faithful to your mission, and you are always faithful to the country that you love.