for u.s. viewers, "new day" continues right now. >> americans are tiring of being pushed around on the world stage when it comes to trade. >> trade wars makes no sense. >> a big trade deficit with our other partners, they have a lot more to lose than we do. >> china is winning and we're losing with this tariff regime. we're making a big mistake here. >> the problem is the president has been ill-served by staff. >> the drama is there. that process has gotten to good results. >> the metoo time's up movement. >> things are changing for the better. it is positive change. >> i have two words to leave with you tonight, ladies and gentlemen, inclusion rider. >> this is "new day" with chris cuomo and alisyn camerota. >> good morning. welcome to your "new day". alisyn is off. erica hill joins me.

thank you for being here. glad to have you. the president imposing tariffs despite resistance from top republicans. the president is tying them to issues with our neighbors, mexico and canada. gop leaders feel a trade war would hurt them badly in the midterms. >> the white house downplaying reports that the chief is threatening to leave while the fate of his son-in-law and daughter remaining uncertain. are they on their way out? we begin with caitlyn cole live at the white house >> reporter: good morning, erica and chris. president trump seems to be welcoming the idea of a trade war and rebuffing concerns of u.s. allies who are worried about what the tariffs will have. according to the president, the united states has been on, quote, the losing end of global trade deals for just too long.

>> the president was quite clear. we can't have a country that can defend itself and prosper without the aluminum and steel industry. >> reporter: the trump administration defending its strict proposed tariffs on imported steel and aluminum, despite retaliation from key american allies who will be disproportionately hurt by the policy. >> sure, there may be some sort of retaliation. but the amounts that they're talking about are also pretty trivial. >> reporter: white house adviser peter navarro said they aren't planning any exemptions. >> if you exempt one country then you have to exempt another. so it's a slippery slope. >> reporter: officials from the european union vowed to impose taxes on u.s. goods, including harley davidson, bourbon whiskey and levi's jeans.

and he tweeted steel and aluminum industries are dead. sorry. time for a change. but there trump's advisers appearing to leave room for the president to change his mind whatever his final decision is. i have no reason to believe he will change. >> the trade wars dividing us from our allies makes no sense. >> china is winning and we're losing. you're letting china off the hook, punishing the american consumer and our allies. you're making a huge mistake here. >> reporter: the president making light of the tumult at a closed door black tie dinner telling attendees, i like chaos. it really is good. now the question is who is going to be next to leave? steve miller or melania? and taking a job at his

embattled son-in-law. he said before i get started i want to apologize for a little bit late. you know, we're late tonight because jared could not get through security. mr. trump making light of mike pence asking every morning with, has he been impeached yet? china's decision to scrap term limits in a conversation with donors saturday. >> i think it's great. maybe i should give that a shot some day. >> reporter: the president and the first lady are going to welcome the prime minister of israel, benjamin netanyahu, here to the white house today -- >> i think we lost her shot there. >> i'm sure she's fine. we'll let you know. joining us is david gregory and ted johnson, variety senior editor and washington bureau chief. he was in the room when it

happened during president trump's speech at the gridiron dinner. we have more meat on the bones with what's going on with the dinner. the president is up and tweeting. it does seem these tariffs, in trump's mind, are bait to bring people to the table and cut better deals. people will say this is what he's a master of. what's the risk? >> well, let's just explain what he is suggesting there. because this caught my eye. saying the tariffs only come off, only half if we don't renegotiate nafta. is that how you read it? >> i don't. i read he's going to do it. and then if they want to come and talk about it -- let me just read it. we have large trade deficits with mexico and canada. it has been a bad deal for the usa. massive relocation of companies and jobs. tariffs on steel and aluminum will only come off if you new

fair nafta agreement is signed. also, canada must treat our farmers much better. highly restrictive. mexico must do much more on stopping drugs from pouring into the u.s. they have not done what needs to be done. millions of people addicted and dying. >> if they renegotiate nafta, which has been going on for a whi while. this is the first time we have seen the president i think flinch a little bit in the face of the criticism that's coming not just from abroad from conservatives, members of his own party. others like john kasich, governor of ohio, a strong manufacturing base saying this is bad for the economy, bad for jobs. it is not paying to the role innovation has played in our manufacturing base. and threatening not just financial markets but what has been described as the synchronicity of growth, economic growth around the world. that's what the president has

put in jeopardy with this move. and i thought wilbur ross over the weekend suggesting this fluidity. it was a very hasty process of announcement. he is suggesting maybe the president will change his mind. this is the unpredictability that perhaps the president very deliberately wants people to be sitting with and uncomfortable with. >> is it flinching or the -- i won't say doubling down. because he has doubled or quadrupled that already. let's remind you here. this is why i'm telling you i'm doing this. even the point on mexico, is that what he is trying to use to bring national security into the mix? because we know that is supposed to be at play here based on the way he wants to do these tariffs. he has to show there is a threat to national security. >> yeah. what seeing is trump is playing his business instincts.

hey, this has worked with me in my own business. why can't it work for the country? this, as david said, this is a way of bringing -- or his way of trying to bring canada and mexico to the table. the problem, as we have seen in the last couple days, is it rattles others in the republican party. it rattles world leaders and the markets. i think that the calculation in trump's mind is this is probably good politically and this is good strategically businesswise purchase but as we're seeing, i mean, we've never quite had a negotiator in office in this way before. >> we have also never seen tariffs pay off for the u.s. the way he is suggesting they would. look, just one example of the retaliation, everyone is talking china, china. they are not the main player of steel. canada is.

i think 16% of the market they accepted. but it is 60% of what they bring over. why don't i slap a tariff on what you're bringing in in terms of your steel. 50% of your market we absorb. now what happens? >> steel producers in this country over the weekend were quite vocal about the idea that there is such integration between canada and the united states and steel production and purchases that they should be exempted from this. the president showing this morning he wants to use it as leverage in our trade disputes with canada and certainly mexico as well with nafta. that's what the president is

risking here. i'm not an economist. i don't presume to know more than i do here. but the unpredictability in the broader economic growth is something we deeply worry this president who wants to be seen as somebody who is driving jobs and growth for the country. >> this is all the chaos that is happening there in the white house. you were at the gridiron dinner on over the weekend. the president said in his remarks, i like chaos. but poking fun. the line he had about sorry we're late, jared couldn't get through security. that is saying something. >> the most controversial line is when he said i like chaos. then he said, oh, people are wondering who will be the next to leave. is it going to be steve miller

or is it going to be melania? there were gasps in the audience. he turned and said, okay, we're okay, aren't we? you still love me, don't you? that was a pretty daring remark. i can't help but think trump is a showman. and he loves this audience. if you take a step back, this is the d.c. elite. this is a white tie event, very formal event. you don't get more insiderish than this event itself. trump loved it. and it kind of goes against the whole idea that he came to washington to drain the swamp. he tweeted about it yesterday saying how good a time he had. >> that's such a good point. in his war with the media, when people overlook is how much he loves the media, feeds off the media, and wants to be embraced

by insiders by the establishment. he wants to be accepted in this role as president on the united states. he never thought he would get. and the show man piece so astutely says his populism is a big part of his showmanship. donald trump, whose lifeblood is the media, to say he would be a populist against the media is a joke. >> he said i don't know why they love me but, boy, i love them, when talking about the base. he said i have a lot of respect for the people in this room. fairness is important to he me. some of you cover it squarely. few provisions i respect more. talking about journalism. i want to thank the gridiron club. i want to thank the press for all you do to support and

sustain our democracy. i think it's important that people have to be able to pick up on this point, especially his base. he says a lot of things for effect that he doesn't necessarily mean. after all the nasty things to the media and he says few professions i respect more. >> people were surprised by it. he was bashing the media in a tweet as he tends to do almost day to day. and here he was in this crowd. it wasn't just that, earlier in the evening mitch land drew made an impassioned plea, the mayor of new orleans, for the importance of independent press. and trump had a smile on his face and started clapping. that was the first sign that

shows he's going to say something praiseworthy. >> it is important to point out that it happened. and i actually take him at his word, though i do have some skepticism about that with other things he says and does. i totally agree with you. i think he says things for effect. i think it's a play. i think it's a show. but he has failed to understand that he is an institution. he's not just donald trump anymore. he's the president of the united states. when the president speaks, it's an institution speaking. that's why it is so dangerous and counterproductive when he says things that attack a free press. so i'm happy to note that he said the other the other night. that's where we have to keep his attention. >> as wilbur ross said, it's what he believes until he says something else. whatever he says last, that's what it will be. good to have you.

thanks for being with us. d. greg, thanks very much. so we're going to get the inside story from trump's former campaign manager, corey lewandowsky is. what does he have to say about this? let's get after it.

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and add voice and tv for $34.90 more per month. call 1-800-501-6000. the white house insists, chaos, no chaos inside the wing. jared kushner's security top clearance stripped and fighting back reports that h.r. mcmaster is leaving soon and maybe his economic adviser as well. so how bad are things inside the white house? let's get a fresh take from former trump campaign manager corey lewandowsky, chief strategist for america first action. thank you for taking the opportunity to come on the show. >> good morning, chris. >> good to have you. before with get to the political

intrigue, this axios report, they looked at a subpoena given to a witness who was going before mueller. it was asking people to preserve all of their electronic communications from about 2015 with this long list of trump people. you are on that list in terms of people they want captured with. what do you make of that subpoena? >> well, i think it's probably standard protocol for the mueller investigation to see if there was any collusion or cooperation or coordination, which we know there wasn't. but what they want to do is they want to look and see any communication between staffers that potentially they would be interested in. and my guess is, this is information that the mueller team would already have access to. i'm sure that the campaign has been very clear about this. they have cooperated with the mueller investigation in any way, shape or form. and any electronic communication between potential individuals that were associated with the campaign that were done on the campaign communication network would have been preserved

already. and i'm sure the mueller team already has those. >> when you say we know, you of course are open to the idea that we don't know, right? we only know what mueller is able to show in the end. we have said in the past you can't know about all the different things mueller is looking at. you aren't privy to all of these communications, aren't part of all the dynamics that have been exposed already. so you are not 100% sure of that, are you? >> i'm only aware of what i am familiar with as it relates to corey lewandowsky. i didn't coordinate or cooperate. >> you are one on a very long list of people they're looking at. >> you're exactly right. and what i said and what i mean, and i've been very clear about this, if anybody attempted to influence our u.s. election system by coordinating or cooperating with an outside source to materially change the outcome of this election, they should be in jail or the rest of their lives. we have seen they have indicted 13 russians. if they have found individuals

who are trying to impact the outcome of the election from the u.s., those people need to go to jail. our democracy is too sacred. >> all right. next point. 22 folks, staffers, talking to the washington say it's crazy in here in the white house. it's hard. it's dysfunctional. we're having a hard time. morale is down. can't get things done. what do you say? >> well, i love the sources that aren't willing to go on the record. i think if people want to complain about their jobs, let me tell you this, i have never worked in the white house. but this is an extremely difficult environment under any circumstances. if you go back and talk to our friends who worked there in the past, rarpls of the administration, 18 hours a day, seven days a week, is very difficult. but, look, it is an amazing privilege to be able to serve our country by working in the white house. if people don't want to work there, they should leave. this job, being the administration, is bigger than any one staff person.

if you don't think you're n right position, do yourself and the president of the country the service they deserve and leave. if you don't like it, you can leave. it's still a free country. >> maybe chaos isn't a good working theory for the business of government. maybe there is something to what is being talked about by scaramucci and others, that the chief of staff made a culture of people feeling down in the mouth. do you think there can be some of that? >> if i look back in the last year, it wasn't that long ago where people say it was in chaos and no one could understand who the boss was. no one is saying they don't know who the boss is anymore. they know john kelly is chief of staff and he is running the staff in that way. there was chaos seven months

ago. it was free willing. everyone had access to the president. now it is chaos because everything is controlled and buttoned up. i don't think you can have it both ways. do i think people say, hey, i want it one way or the other or maybe somewhere in between? possibly. but you can't make the argument on on both sides. and i think what you have seen is john kelly has put in process -- a process in place where people have to report through a specific line. and i know some people don't like that. >> do you think that if he pulls -- well, he did pull kushner's security clearance. do you see that as an indication that he and maybe the president's daughter may not be long in the west wing? >> i don't see that. i think jared and ivanka will have the opportunity to stay inside the west wing for as long as they want to. but let me say this. when you look back at a number of people who didn't have their access to a top secret security clearance, there is a rationale for understanding there has to be a process in place to make sure that people should have

access to the right type of clearances for our own country. we saw a few months back where an individual who shouldn't have been there continued to have access to information. >> who are you talking about? rob porter? do you think kelly knew about that? >> that's exactly right. i don't know. i don't know. >> how could they not know, corey? think about it. you worked on the campaign. you know about accountability at the top. you know the fbi knew this. how do you not know? it's not like somebody said he had traffic tickets. >> no, chris, somebody knew. and the question was what did they know and how soon did they know it? >> so how are we supposed to take it, cory? this is a big part that gets us into this fake news spin coming out of the white house. somebody knew. you just said it yourself. this isn't the kind of information nobody pays attention to. gossip is 50% of the job in terms of learning about who you

work with and their vulnerabilities. we say obviously somebody knew. so let's get after it. was it kelly, did hope hicks, should she have been involved, does this go all the way to the president. they get attacked as being unfair. isn't all of that scrutiny totally legitimate when you have someone this encloses handling all the things the president has to sign off? >> there is clear legitimacy. when you look at what the house oversight committee is doing, they are investigating to understand how that process broke down and how it failed. that is the right thing to do now. trey dowdy asked for a clear understanding what the process was, who knew what, when. that is a fair thing to have to do to make sure the people who need and are required to have access to top secret information have that with the best of their ability and the best understanding possible. that's what the house is going

to look into. >> if the president said, corey, i will show jared my briefing every day anyway, i trust him, what would you advise him? >> well, the president has 100% authority. >> i know. but what would you advise him? it's not about having the right to do it, it is about whether or not it's right to do it. >> chris, what i think is the access of information the president has and who he can grant that to is very selective. if he wants to grant access so they can look at something specific so in their particular role in the building, they should have an opportunity to do that. what we know, part of mr. kushner's role is negotiating middle east peace. if there is information he needs to have access to in that capacity, he needs to help achieve that goal. he should have an opportunity to do it. that is completely at the discretion of the president in a limited basis and that i know of. the president is clear he gave john kelly the chief of staff

the ability to decide what was going to happen on the clearances. john kelly has made that decision. >> under the category of chaos, we look at these tariffs. i understand, you understand what trump's disposition of in terms of muscling up and then falling back on a position. but tariffs are a dangerous thing to do that with. that's why he took people by surprise. this isn't what advisers wanted. people are telling him that isn't the intelligent way to do this. let us get people on board with it. he blew all of that away and went all out with it. now he is negotiating through twitter. is this the right move? >> i think, chris, if you go back and look at the campaign two years ago, he had been talking about the need for tariffs for a long time. to say the staff wasn't aware of it are somewhat untrue. a report listed today, the meeting in the oval office between five or six people who discussed this opportunity and whether or not to impose tariffs. so this notion that the staff

hadn't been aware of it is factually inaccurate. what is very important is this president has said if this is going to help americans have more jobs, meaning we are going to have manufacturing here in the country, it's a pledge he made during the campaign, now he is full fulginiti that -- >> how is he fulfilling the promise are tariffs? you want new trade deals, go ahead. tariffs is not a deal. it opens you up to retaliation. now he is going after canada and mexico. no one says it is a bad goal. let trump be trump. when trump is doing something good for everyone else. is this a place where he should have listened to his advisers? >> i think he did. i think he listened to peter, wilbur ross. the section of the u.s. code which the president is using, 232, from what i understand, is a national security issue. the president's position has been if we don't have a steel

industry or aluminum industry here in the united states, it presents a national security problem, god forbid we have a serious conflict. what he tweeted today is let's go back and renegotiate nafta so it can be fair for the united states. that's a fair thing. the tariff that he's talking about particularly as it relates to aluminum, and the "new york times" wrote this story. it's one cent on every beer can that you're going -- you buy a six pack, it costs you six cents more only if they use 100% of aluminum. but if they use recycled aluminum, it is half a cent. on so are citizens willing to pay 3 cents more to create aluminum manufacturing jobs in the u.s.? i think the answer is yes. >> that is not the metric. how do partners respond? what does that do on pressure on

u.s. labor. we will have to see how it plays out if it actually happens. corey lewandowsky, appreciate you taking the opportunity. appreciate your perspective. >> thank you, chris. erica? president trump says north korea wants to talk, but there's a catch. what the u.s. wants before sitting down with kim jong-un next. every minute counts. and you don't have time for a cracked windshield. that's why we show you exactly when we'll be there. saving you time, so you can keep saving the world. >> kids: ♪ safelite repair, safelite replace ♪ but through goodt times and bad at t. rowe price we've helped our investors stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence.

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is president trump doing enough to prevent russia from meddling again in the 2018 election? the intelligence community says they are the midterms that we're looking at. they say those are at risk. and they aren't getting any directives to combat. so the answer seems to be no. richard clark served a as president george w. bush's point person on cyber security and was national coordinator for security and counterterrorism for both presidents bush and clinton. good to see you again, sir. i like the beard. >> thank you, chris. >> all right. so we keep hearing, and please tell me what's not true in any of the premise here. nothing is being done. yes, the nsa and other

intelligence community are always in an ongoing battle for fighting against america's enemies. that's always going on. but that is specific to the election meddling. there is no program in place, no strategy. what's your take? >> the president asked for and got involved in crafting a comprehensive program. this president hasn't done that. he does sort of work on automatic pilot. for some things the president has to give an order. for nsa and cyber command and cia to do some things covertly inside to stop the kind of attacks that are still ongoing with the russian bots and trolls trying to make argue against itself, trying to create discord

in the united states, the president has to give an order. he hasn't done it. there is a very clear reason why he hasn't done it. after congress overwhelmingly approves new sanctions, he refuses to implement them. and the reason i think is in escape isable. it is that he believes the russian activity benefits him politically. how so? >> the bots are still out there. the organization that did it is still out there. they are still supporting his causes. they are still making dissent, pretending to be black lives matter groups, whipping up dissent. whipping up discord.

on every issue in cyberspace, they are still backing him. why are they still allowed to do that? why hasn't nsa or cyber command attacked their computers which they could do with existing technology. they could do it easily. thoebgd fry all the computers. they could take down the so-called research internet in st. petersburg but they haven't because they need an order to do so, and that order has not been forth coming. >> so let's take a step further down the road. we saw vladimir putin come out with a video presentation with supposed missiles they have that can go anywhere in the world. the target he chose was florida. it looked like they were headed right to mar-a-lago. and the president said nothing about that. why would putin antagonize a guy he is trying to help and why

would president trump say nothing when the guy targets his house with missiles? >> well, i think you can guess. the president never criticized putin. he admires putin. you are not going to hear him criticize putin no matter what he does. imagine any other president, george herbert walker bush, ronald reagan, giving an anti-american speech with missiles attacking the united states. can you imagine them under those circumstances being silent? this president is silent. >> north korea. we have worth that south korean officials are up there. there is parlay in north korea supposedly the goal is to bring the united states into dialogue with the north. there is this political intrigue where north korea reached out to talk. i said you have to de-nuke first

and north korea laughs that off. what is your take on the state of play? >> chris, of all the issues the president is dealing with, this is the most dangerous. this could, if mishandled, result in a war, a war in which millions on of people would die. and perhaps even people in the united states. certainly americans in korea. we have to be very, very careful how we handle this. for the president to say i'm not going to talk unless you completely capitulate before the talks even begin is a very dangerous path. we need to be in discussion with north korea. we need to find some compromise. there was a tabletop exercise for war in korea. they were horrified by what they say would happen.

it is a terrible outcome. we have to do everything we can to avoid that and talk without preseason is one of those things. ofr the president said, yeah, we'll get in and give up our nuclear weapons. >> richard clark, thank you so much. great to have your perspective on the show. good to see you, sir. >> thank you, chris. >> erica? >> president trump wants to eupl process heavy tariffs on aluminum and steel. how will it affect you? cnn "money" has those answers next.

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time now for cnn "money". president trump defending his proposed tariffs on imported steel and aluminum promises no country will be exist. could that spark a trade war? christine romans is in our money center with more. we know what he said about trade wars last week. >> that's right. and he's tying nafta in a tweet he slams our allies. mexico on drugs and canada on agriculture. he said he won't strip off the tower if's on steel and aluminum unless he gets what he wants from nafta. meanwhile, eu plans to retaliate. bourbon, levi's, harley davidson motorcycles. they're targeting kentucky, home

state of senate majority leader mitch mcconnell and wisconsin, paul ryan and harley davidson. if the eu follows through, president trump threaten to tax european cars. european automakers employ tens of thousands of workers in the u.s. alabama, south carolina, and texas and even u.s. carmakers could be hurt by these tariffs. they import lots of steel and aluminum. wilbur ross downplays that price hike. for 25% steel tariff on a $35,000 car, you pay 175 bucks more. he calls that no big deal. consider this, $175 is nearly 20% of that supposed 1,000 doctors tax cut the administration claims most americans will get from the new tax bill. will these trade policies start to chip away? >> that's a fair point.

what is the retaliation. what is the cost of other goods. >> exactly. >> thank you for outlining for us as always. all right. so as we go to break here, some of president trump's former advisers are telling him to back off these tariffs. the white house has a new message for those people next. i'm just worried about the house and taking care of the boys. zach! talk to me. it's for the house. i got a job. it's okay. dad took care of us.

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i'm tom steyer, and when those patriots wrote the constitution here in philadelphia, they had just repelled an invading foreign power. so they created the commander in chief to protect us from enemy attack. the justice department just indicted 13 russians for sabotaging our elections. an electronic attack on america that the chief investigator called "warfare". so what did this president do? nothing. and is he doing anything to prevent a future attack? the head of the fbi says no. this president has failed his most important responsibility- protecting our country. the first question is: why? what is in his and his family's business dealings with russia that he is so determined to hide, that he'd betray our country? and the second question is: why is he still president? join us today. we have to do something.

president trump's decision to impose tariffs on imported steel and aluminum sparking backlash not just at home but around the world. even steven moore urging the president to reconsider his plan in an op ed he cowrote which reads in part, trump genuinely believes his steel and aluminum tariffs will save thousands of blue collar jobs.

but even if tariffs save every one of the 140,000 or so steel jobs in america it at risk 5 million manufacturing and related jobs in industries that use steel. you likened the proposal to imposing sanctions on our own country, called it a crisis of logic and aggressive of tax on low-income families. not mincing words here. has there been any response to that op ed. >> donald trump who i've talked to many times about trade protectionism since i first started working with hip two years ago, knows my positions and larry's position as well. i think he made the wrong call here. i think he does care about these steel workers and aluminum workers in the midwest who are worried about losing their factories, the point we were making, this isn't going to help our manufacturing sector because for every worker that's employed in steel and aluminum, there are

30 or 40 that actually use steel and aluminum and their jobs are going to be put in skrep did i here. what really worries me at this moment is, you know, the report that you just heard from christine romans about the retaliation from other countries. we're at a very dangerous moment right now. i do think it would be a big mistake if the europeans and canada and china retaliate because knowing donald trump as we all do, this is a guy who doesn't back down and he's a counterpuncher. if they start imposing higher tariffs then you'll get an escalation and that's how trade wars do start. one thing president trump was wrong about nobody wins a trade war. >> peter navarro was just asked about that on "fox and friends" take a listen. >> who cares? we got the politicians. everybody in the swamp is rising up against it. at the end of the day, we're getting a pad deal and the president has said quite clearly and quite correctly that these

countries around the world running huge trade surpluses with us, we're shifting our wealth offshore, they're taking our jobs and factories and all we're trying to do with our trade policy is to get a fair and level playing field. >> so who cares? is that saying bring it on in terms of retaliation because as you point out that may not end well? >> there is something to what peter is saying and peter's a friend of mine. i disagree with him on this issue. my belief that it is true that china and canada benefit more from trade with us than we do with them. it's true, for example, china's economy couldn't perform at all if they didn't have access to u.s. markets. i think what donald trump is saying here is, we have some leverage because they do -- their economies are so dependent on access to u.s. markets and he wants to use that leverage to get china to behave itself. what worries me right now is the situation with nafta because as

you know, this is all happening as we're renegotiating nafta. we'll hopefully come up with a nafta 2.0. there's heat and tension right now, you can feel it, between canada, united states and mexico and that is not a good situation for negotiating a new trade deal with them and i believe the big issue here is, can we get nafta renegotiated? i worked on that in the mid-1990s. it would be bad for the whole north american continent if we can't get that done. >> but this morning the president tweeting about nafta saying these tariffs are going to happen so using that as bait is that the way to get it done? >> well, good question. d is a good negotiator. so we'll see but they haven't made a lot of progress so far this year and so it's a really tense moment right now in trade. it's been making me nervous. the financial markets have not reacted at all positively to this. the dow has fallen 600 or 700

points since trump made this announcement. incidentally, donald trump does pay attention to the financial markets and he does pay attention to what's happening to the dow jones and he pays attention to jobs. now you have a lot of american companies saying this is going to hurt our ability to export. stay tuned. this is the first act -- i hope cooler heads prevail and that donald trump will maybe just impose these steel tariffs on china. there's no reason we need to have steel tariffs on mexico and canada if it's a national security issue. is anybody worried about canada invading the united states? >> is that where the national security threat is? we don't have an answer on that. in terms of looking at the markets in terms of listening to business leaders, we've heard enough. we saw it pointed out again in the "the wall street journal" about the millions of jobs that are potentially effected versus the 140,000 jobs that are directly within the steel industry.

domestically, there is opposition. on international level we know there is. in a phone call with prime minister theresa may she expressed deep concern about these tariffs. how much of that, though, could actually go to seeing some sort of reversal from the president or seeing him in any way change course? >> we will see. there's a lot of options here for the president right now. for example, one of the things being discussed is maybe we should just put these tariffs on china. i'm for getting really tough on china. china is an adversary. i don't think they're playing by the rules. what they're doing with north korea is impermissible. i don't think the president could get tough enough with china. >> then why not stick it to china then? >> exactly. >> so what's the issue here? where's the disconnect? and is this -- are we going to see gary cohn level over this? >> there's a lot there. >> sorry. >> i think that i would like to see this more focused on china.

that was the point i was getting at. there's some discussion, let's just worry about china and other countries breaking the trade rules, not canada and mexico and germany. i think there's a real possibility that they slim this down. so we will see. there's -- there is a disagreement within the president's own cabinet among his own economists. it's split right down the middle about will this is a wise policy or not. i'm hopeful that the president tones this back a little bit but we will see in the days ahead. >> how difficult would it be for the president to tone it back? the president always doesn't like to step down from a point that he's made. he just going to stick with it to stick with it? >> here's my point, i think our foreign nations are making a big mistake in escalating this right now. we know as i said earlier, donald trump is a counter puncher, you punch him, he'll punch back and as christine romans just said what is this going to go lead too?

auto tariffs, tariffs on american bourbons and blue jeans? that could cause big problems for the world economy. international trade is good for everyone. it's lower in prices. it's giving people and all these countries access to products they wouldn't have and american consumers, by the way, are being beneficiaries of trade so much of what you can buy is cheap because of imports. i want america to have manufacturing base. don't get me wrong. i'm with trump on that. we do need to retain our industrial base but the way to do that is to compete, keep these tax cuts in place so we can, you know, be on the level playing field. i have no doubt, we can retain our steel and auto and our aluminum factories in this country -- america compete. bill clinton of all people once said, america has to compete, not retreat and i believe that's as true now. >> we're out of time.

thank you. >> thank you. we are following a lot of news on this monday morning. let's get right to it. >> this is not what this country needs to re-establish any global stature. >> we want fair and reciprocal trade. >> you want to do these kinds of things with a scalpel not a chain saw. >> they're all talking about internal staff struggles and not talking about their agenda. >> he only creates half the drama, the other half is caused by staff killing each other. >> if i may be so honored to have all the female nominees stand with me -- >> it's this possibility of the status quo not having the status quo any longer. >> the changes are being driven by the powerful sound of new voices finally saying, times up. >> this is "new day" with chris cuomo and alisyn camerota. >> good morning. it's monday march 5th,