>> i will see you online. my handle for the show, out numbered o.t. across all headlines. >> good morning, everyone. i'm sandra smith in for dana perino. this is "the daily briefing." the president's lead lawyer in the russia investigation resigning. john dowd's departure comes days after president trump added joseph digenova to his defense team. the president made news on the russia probe as the press throws a question at him. >> mr. president, would you like to testify in the robert mueller investigation? you would like to, sir?

when do you think that would happen? >> in case you couldn't make out what the president said, would like to testify before special counsel robert mueller. chief white house correspondent john roberts is live with this story. the many of them at this hour, john roberts. >> yeah, take a pick. it's like a chinese menu. this is the second time the president's legal team has been shaken up. john dowd came on in june of 2017 after the president said then lead outside attorney mark kasowitz left. dowd has been working on the case ever since. let's put up a picture. and he's compiled -- we won't see a picture. there he is. compiling also a legal argument for robert mueller as to why he believes mueller either doesn't need an interview with the president or would have an interview under very, very strict parameters. the writing was on the wall when

the president announced that joe digenova was going to be joining his legal team. digenova, the noted former u.s. attorney for the district of columbia also believes there was a conspiracy at the highest levels of the fbi to frame president trump for a false crime. the president as been looking to beef up his cadre of outside attorneys even further, making an outreach to ted olson, the former solicitor general. the president's lead team was told there's too many conflict of interests that ted olson has in terms of his legal firm for him to join the team. they're still reaching out. there's been some differences of opinion. this may have contributed to dowd's departure, differences of opinion among the members of the president's legal team over the strategy going forward and whether the president should sit for an interview with robert mueller. as i mentioned, dowd was advocating against it. contrary to that, jay sekula

thinks he shouldn't do it. and ty cobb thinks he should do it to bring it to a close. dowd in a statement over the weekend in the wake of the mccabe firing says the mueller investigation should be shut down. i pray that acting attorney rod rosenstein will follow the brave example of jeff sessions and bring an end to the alleged russia collusion investigation manufactured by james comey based upon a fraudulent and corrupt dossier. the president seemed to be on a similar pace to dowd heaping criticism upon mueller investigation, repeatedly calling it a witchhunt and he should never have been appoi appointed. as you saw the president saying, yes, he would like to sit down with an interview with mueller.

a lot of cross currents and tensions and led to dowd this morning calling the president to say that he was going to resign. he should point out in losing dowd, he loses a competent attorney that has a long and rich history inside and outside the government here in the d.c. area, sandra? >> thanks, john. for more, let's bring in daniel henninger who is here. what a day this has become. did anything about this surprise you? >> no, not really. anybody that works for donald trump understands they're in a temporary job. you can change at any time. john roberts covered a lot of ground there. one thing we have to try to separate here is that there are kind of two different forces at play inside the trump legal team. mostly having to do with donald trump himself. the president obviously thinks he's innocent of anything having to do with collusion with the russians. so he does not understand what

is going on with robert mueller. so on the one hand, he wants his team to be really aggressive, like going to the mattresses with these people. that's what john dowd did. i used to get e-mails from john dowd before he signed on for this. there's no more stalwart supporter of donald trump than john dowd. now he's replaced him with joe digenova, who will be extraordinarily aggressive. very interesting that they reached out to ted olson. a supreme court lawyer, was himself the subject of an independent counsel about 20 years ago. he became a very famous supreme court case. ted olson knowing how dangerous it can be to be investigated by somebody like robert mueller. that's the ty cobb part of the team, to negotiate of dealing with mueller. the president is in a dangerous spot. that's why there's this tension occurring.

>> how can digenova's guidance be different than dowd? all of this is happening a day after dowd said he wanted the probe to end. you wrote an op-ed saying shut down mueller. you agreed with them. you're right, the mueller investigation should be shut down. but they're right for the wrong reasons. the mueller invest combination should be shut down before all of official washington descending to madness. we may be there already. >> last weekend after attorney general sessions fired andrew mccabe, the deputy director of the fbi. the city of washington had a meltdown over this. the media started reporting it's not because he was fired for lying about hillary clinton's e-mails but wrapped up in the russian collusion story somehow. then you had the sunday appearances and people talking about resignations,

impeachments, saturday night massacres. i think the institutions in washington from the fbi, the press, congress, is simply disintegrating over this russian collusion story. it's damaging our institutions. if robert mueller has something big on trump, so be it. if he's thinking about a minimal charge, he will be pitching it into a damaging political crisis and that's why i think he should pull back and shut down if that's all that's going on. >> and the president answering that shouting question saying yes, i would like to testify. what is digenova going to do about that? >> i think joe digenova's role is to protect the president's interests as the president understands it. the president is always making deals on the side. he expects joe digenova to protect him as donald trump.

don't sell me out. don't let the other side of the team make me do something that i really don't want to do. at the center of it is the issue of whether he should sit down and talk to robert mueller's lawyers. >> what a day it's been. out of all of this news, john dowd going away and the trade tariffs announced in the noon hour. thanks, dan. >> thank you. >> fox news alert. the house passing a $1.3 trillion spending bill. 2,232 pages unveiled last night and now goes to the senate. the president has said he will sign the bill when it reaches his desk. for the latest, we go to peter doocy. how much democratic help do republicans need to pass this through the house so quickly? >> sandra, 90 republicans voted no. so republican leadership had to rely on 111 democratic house votes to get this bill through over on that side.

this is a package that democratic leaders feel like they got a lot out of. >> we democrats are happy with what we were able to accomplish on a number of priorities that democrats have fought for all along. infrastructure, education, opioid relief and more. this is a bill that puts the middle class and those struggling to get there first. >> conservative republicans don't like when their majority agrees things that make democrats that happy. republicans have been stressing the benefits of the military from the new money in this bill. the conservative house freedom caucus is asking president trump not to sign the bill. administration officials do expect him to sign the bill. >> can the senate pass it in time to avoid a government shut down? >> senators that i have spoken to say it depends on what rand

paul ends up doing. i have reached out to paul's spokesman and asked whether or not he's going to allow a vote today or tomorrow or if he's going to hold things up as of right now. that's up in the air. >> that depends. one person as you know can shut the place down if they want to. it's up to our members. we'll see if they want to use the time, they can. that's their prerogative. it's hard to predict at this point what that might be. >> another republican senator who is not committing to support this bill to let a vote go forward right now is john kennedy from louisiana. he's referring to this 2,000 plus page bill as a great dane sized whiz down the leg of every taxpayer. that's a quote. >> he does have a way with words. thanks, peter. authorities continue to search for clues on a motive for the series of deadly bombings that

terrorized the texas capitol this month. >> that is what we're looking at right now. what is the common denominator between all of these victims or is it just random? what was his motivation? we don't know.

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and i know that we have accident forgiveness. which is so smart on your guy's part. like fact that they'll just... forgive you... four weeks without the car. okay, yup. good night. with accident forgiveness your rates won't go up just because of an accident. switching to allstate is worth it. >> sandra: authorities still looking for a motive in a series of deadly bombings in austin, texas. investigators looking at a 25-minute video mark anthony conditt recorded on his cell phone not long before blowing himself up as a swat team closed in on his car. jonathan hunt is live in pfluegerville, texas where conditt lived. jonathan, the house is still at the center of the investigation? >> yeah, sandra, that house is behind me. it's a small yellow one. you can see it over my right

shoulder. throughout the day, we have been here, we have seen evidence investigators going in and out. many of them wearing full evidence collection suits. we understand they have found many bomb-making components inside that house that match the components used in the six attacks. they have also, according to texas congressman mike mccall, found what he termed a target list, potential future victims. officials he says are now trying to figure out what is the link between the previous victims and those potential future victims. listen here. >> what is the common denominator between these victims or is it completely random? what was his motivation? we don't know of a motivation. we did have the search of the house last night. we have a lot of computer data, hard drives. those things will be very telling along with social media about what was motivating him to

do this and was there any connectivity between all of these victims or was it a random event. >> investigators hope that they will find the answers to all of those questions inside this house, sandra. >> sandra: jonathan, what do we know about the 25-minute video that he made? >> yeah, we first heard about the video from our sources during this show yesterday. we weren't able to record it at that time. we took the decision to wait until police publicly confirmed it. it was a video made by conditt before the police closed in on him. according to the police chief here, while he doesn't talk about politics as such, he does talk about the events that led up to the point where he felt the need to carry out the attacks. listen to the police chief. >> he does not at all mentioned anything about terrorism, nor

does he mentioned anything about hate. instead, it is the outcry of a very challenged young man talking about challenges in his personal life that let him to this point. >> again, that video was made before police found conditt in his old model nissan pathfinder and when they found him and pinned him in, he detonated the final sixth bomb and took his own life, sandra. >> jonathan hunt, thank you. it's another tough day on wall street were the dow plunging triple digits. it's off the lows of the session. still down 314. we'll tell you what is causing this drop. the house passing the $1.3 trillion spending bill. we'll talk about the winners and the losers as it heads to the senate. >> is the president going to sign the bill?

the answer is yes. why? it funds his priorities. it funds national defense. gives the troops the increase we've been trying to get in their compensation. it funds opioids and school safety. come on dad! higher! higher!

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you know what's not awesome? gig-speed internet. 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. >> sandra: congress debating the

$1.3 trillion spending bill which has the backing of president trump. the house passed it earlier today amid contentious debate. >> the bill we're about to vote on will fix our planes and ships and readiness and sends a very strong message to allies and adversaries that the united states will accident up and defend ourselves. >> these are ear marks. you don't call them ear marks. you call them authorizing language. they're bills that nobody in the appropriations committee has read. is there no realization of the hypocrisy that is being displayed? >> we want to -- here's our panel. josh holmes, former chief of staff to mitch mcconnell and michael star hopkins, contributor to the hill. gentleman, we're going live to washington. the president is speaking.

he's add the generation next panel discussion. we're told he would be jumping in this panel. he was asked a question on tariffs. let's listen in for a minute. >> it's the highest number of jobs we've ever had in our country. it's coming back. we're losing $375 billion with china. it could be $504 billion depending on the way you count. a lot of different ways to count. no matter how you count, it's bad. we're doing something that will be the start of making trade with china more fair. we're so far down. our past presidents shouldn't have allowed this to happen. this has been many, many years. sort of like the middle east. how did that happen? and other things. how did all of these things happen? north korea, how did it happen where it's so bad. i shouldn't be the one negotiating north korea. this should have been done years ago, charlie. should have been done somebody

me. but we got stuck with a lot of beauties. we'll fix them. we'll fix them. [applause] >> if a democratic president got done 1/10 of what you have done would say it's historic. what you've done for the american people and save the trajectory of our company is phenomenal. let's talk about tax reform. democrats call it crumbs. $1,000 is not crumbs to the people in this room. take about the amazing economic benefits we're seeing thanks to the tax cut package that you championed and got through congress. >> okay, charlie. a couple things. the individual mandate was knocked out by itself, that would be a big deal. this is -- [applause] when you have the privilege of paying a lot of money so you don't have to buy bad

healthcare. okay? we got that knocked out. that was a big thing. anwar, we got that approved, which is tremendous. one of the great energy reservoirs in the world. they've been working on it. reagan tried, push tried. every president tried to get it approved. we got it approved. that was part of our bill. we have the tremendous tax cuts for people -- i guess if you think about it, millennials have a tremendous advantage over what you had. you'll pay less taxes. you'll have more money left in your paycheck to spend. that's part of the beauty. we're seeing it. we're seeing the numbers. we were at about 1.2% gdp. we've now hit three and another 3 and a 3.2. we'll see what this next quarter is. it could be a good quarter. our businesses are flourishing. jobs are now. people will have choice.

it's choice of jobs. before if you got one job, they'd stay there even if they didn't like it because they had no alternative. people are looking at five, six, seven jobs and making a choice. that really works out. young people coming out of college, coming out of even high school, we're trying a push for vocational schools. if somebody -- i remember i was in school, lower schools. i'd be doing a test. there's somebody on my right that was not too good. this was not a great student. this was not going to be einstein academically. okay? and yet that person could fix an engine or a motor so -- he was incredible. blind folded. by the way, that's what he liked. that's probably -- i don't know. we lost track. probably what he ended up doing. but he had a great ability at that. far greater than me or far

greater than other people. but he will never be a student or nor did he want that kind of learning, that kind of whatever you want to call it. so we need vocational schools. they call them community colleges. i don't think it's an accurate definition. we're having a lot of companies come into the united states. we need workers. by the way, illegal immigration, which will be one part of the question but we want people to come into our country. but we want them to come in based on merit. we're going to need these people. we have tremendous numbers of companies coming in, whether it's chrysler leaving mexico and coming into michigan or foxcon -- they're going to open a tremendous place in wisconsin. we're proud of that. that was a deal that nobody thought was happening or could happen.

apple is taking $350 billion and they're coming in to our country with building here. i said to tim cook a long time ago, tim, it's wonderful, apple. it's nice. we want you to build your pieces here. because of our tax cuts, they're bringing in $240 billion but investing $350 billion on new plants and a new campus and lots of things. very exciting for millennials, very exciting for jobs. >> absolutely. and black youth unemployment at an all-time low. latino unemployment at an all-time low. >> all-time low black unemployment. very proud of that. hispanic unemployment all-time low. women unemployment, the lowest in 18 years. we're doing great. i believe that -- i don't want

to sound braggadocious but there's never been an administration that has done as much as we've done in the first year. if you look at regulations, forget about tax. i think the cutting of the regulations may be as important or more important than even the tremendous tax cuts. >> that's right. you said you would get rid of two regulation for every one and now it's 22 for every one thanks to your leadership. amazing. it's amazing. [applause] so shifting gears for a minute here. one of the other things you've done so successfully is crush political correctness. the college network that we represent and i represent an organization on 1200 colleges and high school campuses, it's hard to espouse support of your presidency and the idea you're fighting for. thanks for what you're doing to help give us the courage of our convictions to fight against political correctness. what advice do you have for

young patriot conservatives that are being ridiculed and those clamping down on free speech? >> i think the numbers are different than people think. i think we have a lot of support. if they have one campus or two campuses and we know what they are, they get all the publicity. we have campuses where you have a vast majority of people that are perhaps like many people in the room. you call it conservative, whatever you want. people that want free speech. if you look at what is going on with free speech, the super left, with antifa, with all of these characters. they get a lot of publicity. you go to the real campuses and go all over the country, the middle west, go out to the coast in many cases, we have a tremendous support. i'd say we have majority support. it's highly overblown. >> i totally agree. we see it on the ground. people say hey, i'm a trump

supporter. i'm not allowed to say it because of the culture by the administrators and the professors. piggybacking off of that. the college campuses and the speakers and the assaults on the ideas, it's so important what your administration is doing to the department of justice to support the lawsuits to advance the free speech movement on campus. talking in general, this is something that i'm curious about and a lot of people ask me. i consider you to be one of the most successful people in american history. your successful presidential run is something that all young people should look up to. what advice do you give to the 25-year-old donald trump that you know today? >> don't run for president. >> we're glad you did. [applause] >> i was talking to mercedes and sarah walking off. the oval office is across the street. i said, all my life, i've gotten really -- look, we all get a knock. but i got the greatest

publicity. i was getting such great until i ran for office. people get it. people really do get it. there's a lot of fake news out there. nobody had any idea. i'm proud of the fact that i exposed it to a large extent. we exposed it. it's an achievement. you have some great news. when i say fake, i don't mean everybody. not every one of those many people back there. just say we have shown something that a lot of people didn't really understand. if you look at approval rating, their approval rating is down the tubes. sorry, folks. people have found out how dishonest it is. however, you have some great, great reporters. you have some great people in the press. people that have tremendous respect for. it's that way also. and it's re-assuring to know that, you know, that's the fact. >> absolutely. your capacity to be able to fight back against the press.

they talk about your approval ratings. the same people that said you're going to lose in a landslide victory. now we're supposed to believe the approval rating polls. >> i think a lot of the polls are not real, too. a couple got us right. a lot of them didn't. a lot of them purposely didn't. they said an expectation. they say oh, gee, i'm not going to vote. i love trump but he won't make it. so they'll go to a movie and say we'll go home and watch later. they go home and watch and they say gee, if only we voted. but they really voted. in 2016, they came out and they voted. there was nobody that stayed home. as you know, the results were far greater than the polls. a lot of people don't want to talk about it. we love trump. we don't want to talk about it. we love a strong military, low taxes. we love all of the things happening now. jobs, tremendous cutting in regulation. all of the things that you see happening right now, they like

that. they don't have to talk about it. they went into the booth. this was the big story. people came out that nobody knew existed. the democrats are looking for those people right now. i have a tremendous number of people from the obama administration where they voted for president obama. and they voted for me. they voted for bernie sanders, a lot of people, because he was right about trade. the difference is i know how to fix the problem, not just talk about it. he was right. that's what we're doing. that's why we had the 301 meeting on china. bernie sanders was very strong saying we're getting ripped off on trade. he happened to be right. i got a lot of sanders voters. who would think that? you would think i got none. be of them came. that was a big part of the difference between hillary clinton and myself. so we have a tremendous amount of support. it's sort of an interesting thing. sometime they say you add nine.

whatever trump's poll numbers are, add nine. people don't want to be bothered. when they get into the voting booth, they say vote trump. we gave a speech the other night in pennsylvania. a nice guy, rick saccone. it was the level of love in that room was incredible. we were in pensacola, florida a couple weeks ago. the place is just rocking. i don't know if it's transferrable. they say a lot of it is not transferrable. they may not like me. they all say i'm going to do great in 2020. you know, let's see what happens. right? they don't know if it's transferrable. i hope it's transferrable. we have to do our agenda. we have to win in 18. we have to get the agenda. we need more republicans. we coulds will, by the way, get rid of the filibuster situation going on in the senate. i feel very strongly about that. it would make life easier. but you look at some of the votes, we would get so many more

votes. if you could work that with youth, get rid of it. certain senators just want to keep it. it makes things a little bit tougher. but i will say, we need more republicans and we're going to get your taxes. i don't know if you know, but we're -- i was with kevin brady. we're starting a phase two on tax cuts. we're going to get more tax cuts, be very focused on the middle class. we're going to get a phase 2 tax cut. because it worked so well. nobody thought it would be like this. it worked -- the word "crumbs" is like deplorable, i think, for hillary. [applause] >> totally agree. you know -- >> hey, charlie. when she said the word. i was watched that speech. i didn't think it was nice but i didn't see it that bad. the next day i'm at a speech and women are coming in, i'm a deplorable. the husband, i'm a deplorable. i said what's going on? there was a basic -- she said

deplorable and irredeemable. irredeemable is probably worse. >> she was reading off a teleprompter. >> the one she did last week, that the woman goes and asks the husband, the son and the male boss for approval to vote for trump. that was not too good. that was -- >> she found a way to insult men and women. she said women can't make decisions on their own and men are so controlling over women that they can't make decisions. only hillary. >> not good. >> no. >> the next panel, we're going to talk about the crisis on college campuses. specifically talking about the opioid epidemic which has devastated middle america. i know your administration is making historic strides to help fix the issue. can we talk a little bit about opioids? >> yeah, we're going to be putting $6 billion into the opioid crisis. it's a crisis. you have to include in that the drug crisis period. drugs are coming across the

southern border and coming all over. that's why we'll have -- we have $1.6 billion toward the wall and fixing bad walls that are already up and building them new and rebuilding them, a lot of work being done. certain communities believe it like in san diego. they want a wall. nobody likes to talk about that. i said don't build the wall there. they all want it. jerry brown, doing a terrible job as governor -- if you like high taxes and crime, that's your guy. but they go and they talk about the wall. in san diego, there's a long stretch that is demanding the wall. i said okay. we're ready to start. i said don't build it. we'll wait until we get everything approved. we have pressure. we have to stop the drugs from coming in. so opioids are a big problem. we're probably going to be -- we're developing potential litigation to be suing some of these companies. if we can only do a painkiller

that is not so addictive. this stuff is brutal. you have a broken arm, you go to the hospital, you're there and your arm is fixed a and now you're a drug addict. we have to do something about it. so addictive and so quickly. we're working here with research money. we're working and very strongly on coming up with painkillers that aren't so addictive and maybe not addictive at all. i think that will be a big thing. in terms of the drug problem, we have to be very tough on sentences. you know, a drug dealer will kill more than 2,000 people sometimes. sometimes much more than that. ruin families, ruin lives. and they get caught, they get 30 days in jail, get a fine. they won't get jailed. maybe a year in jail. if they kill somebody, if they shoot somebody, if they get into

a fight and somebody dies, they put them in jail for life or they give them the death penalty. these people kill thousands through drugs. we're going to have to get much, much tougher in terms of penalty. you want to stop it? look at certain countries where they have the death penalty. say how is your drug problem? we don't have much of a drug problem. so i thought of -- nothing to laugh about. nothing to smile about. when we have the blue ribbon committees, many of whom are in the office, alex and alex a double alex and ivanka and kelly ann. anybody ever heard of kellyanne? i told ivanka this morning, you can take kellyanne and put her

into the heart of the battle to somebody who -- the level of hatred back there is so incredible, 7:00 a.m., the cameras are on, the lights are on and she's there and she will take them on. great courage. really great courage. a lot of people say please, please -- [applause] charlie, people say please, mr. president. don't put me in there. she will say, where do you want me to go? it's all words. here's another great warrior right here. right, ivanka? you're a great warrior. >> thank you. >> really is great. >> thank you, mr. president. we're fighting for you. >> sandra: you've been listening to president trump sitting on a stage in washington speaking at an event for millennials. charlie hurt moderating that panel. talking to the president. hitting on a wide range of

questions. president trump even joking with one question. what advice would you give to a 25-year-old donald trump? he joked back, don't run for president. he hit on things from tax cuts, north korea, trade. we have the panel standing by. josh holmes, former chief of staff, michael starr hopkins were kind enough to stick around and listen to the president's words there. he's just across the street from the white house amount young crowd there he has. he addressed tax cuts and joking about phase two of the tax cuts. the word "crumbs" which nancy pelosi used to describe them is like the word "deplorable" for hillary clinton. interesting stuff there for that audience, michael. >> it was. when it comes to millennials and the republican party, the polls have shown that overwhelmingly millennials are leaving the republican policy. it has less to do with policy and more to do with character and morality.

first it was gay marriage. and now it's the president's behavior, the treatment of women. now he's thirsty for approval. >> sandra: josh, they seem to be receptive of him there. he said we want people to come into this country but we want them to come in based on merit. that's before he addressed north korea and trade. >> i was going to say in response to michael, if college kids start voting on behavioral issues, it will be the first time in american history. on immigration, one thing i found fascinating about this speech to this particular group is a number of the priorities that he outlined. everything from immigration to defense to the opioid epidemic that he talked about at the very end. that is all coming together in the context of this omnibus bill that just passed the house of representatives and now on the way to the senate. big priorities for that particular audience that he helped highlight there in front of that group and got a great

reception because of that. the opioid epidemic is ravaging young people across the country and the president is taking the lead on doing something about it. >> and i wonder how the millennials talk about executing drug dealers. >> sandra: the president stuck to his message on the economy. it dominated the conversation there. he told the millennials that you have a tremendous advantage now over what you had before referring to the tax cuts. there was a lot of talk about unemployment rate among americans and among women, josh. >> yeah, absolutely. there's a ton of issues that resonate with millennials across the board of all demographics from all geographic areas of this country. the left would have you believe that basically everybody that is 45 and under votes on the issue of open borders and, you know, all kinds of sort of leftist-type stuff. it's not the facts.

most people out there want the same thing as the generation before them. they want the opportunity to grow a family, have the economic opportunity that the previous generations had, have more money in their pocket and have the freedom to do what they want with it. that's not something that this president has kept an eye on. >> sandra: thank you, guys. a lot of breaking news this afternoon. glad we could get you in there. meanwhile, president trump announcing tariffs on chinese imports and what the administration call as degreessive trade practices. >> the word i want to use is reciprocal. when they charge 25% for a car to go in and we charge 2% for their car to come into the united states, that's not good. that's how china rebuilt itself. the tremendous money that we've paid since the founding of the world trade organization, which is actually been a disaster for

us. it's been very unfair to us. >> sandra: let's bring in oklahoma senator and maybe of the senate armed services committee, jim inhaus joins us. >> great to be with you. >> sandra: the president making news there, shedding light and his thoughts on a variety of issues. one he weighed in again on trade after announcing the tariffs this afternoon. he said we're so far down, our past presidents shouldn't have allowed this to happen. we're losing $375 billion a day to china says the president. >> i think exactly right. he's addressing that. he's going after it, making it clear that his actions are going to be against our enemies. i just got back from the south china seas. i see what china is doing over there. they're building huge artillery, huge runways and cannons and all

that. as if they're preparing for word war iii. yeah, i'm glad the president is going after them. >> sandra: here's a few things you should know when you look at the tariffs. they're valued $50 billion. 13 items targeted. they reflect high tech china that has targeted the u.s. the white house says for every $1 billion of trade definite set of china costs 6,000 jobs. why have we been watching markets reacting so negatively to this? the dow is down 407 points. you can't say this is all because of that. about midday, we saw the markets sell off to the lows of the session. is there growing fear over perhaps unintended consequences from the tariffs? >> i don't think so. i don't judge my opinion and the authenticity of statements being

made by what the market does. sometimes it takes the market awhile to react and show that this is something that is going to be to our country's benefit. on the other hand, i'm interested in what is happening now with china in terms of our military, in terms -- and of course, north korea and what that -- what they're in the middle of doing. sometimes the markets are slow to react. the trade issues, let's see what happens. >> sandra: as far as north korea, the president weighed in there saying i shouldn't be the one negotiating north korea. this should have been done years ago. when it comes to the president's handling of this and how it looks going forward, quinnipiac just did some polls asking how confident you are in the president handling the north korea situation. 46% say yes, they're confident. that's the highest rating in that poll's history. 51% say no. as far as how will the u.s.

resolve the situation with north korea, 65% say diplomacy. the others say military force. >> we're dealing with someone that made threats to the united states. i was in in the south china sea that he said i can blow up an american city. instead of the response that we've been doing for the last eight years, we have nothing but a -- appeasement. we have a bigger button. we can blow you up off the map. what happened after that? hours after that, kim jong-un called south korea and said we've changed our mind. we're going to participate in the winter olympics. after that, he started having to gestures, let's do get together and talk. now, a lot of people are saying he said that before. he said that to his father.

the problem is, at that time they didn't have the weapon that they demonstrated on november 28th. >> sandra: senator, i have to cut you off. we're up against a hard break. we'll be right back. thank you. 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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>> sandra: newly released video

showing the las vegas shooter. stephen paddock is shown carrying suitcases to the mandalay bay resort where he would fire from a window killing 58 below and wounding hundreds more. adam housley live in los angeles for us. adam? >> yes. the first time we've seen this video coming from mgm. what is eerie, nobody has any indication that anything was going to happen. nothing like what stephen paddock committed. you can see him going through the hotel, interacting with staff. it's a release of specific clips that they have chosen. we edited them together as well. we know there's other video not being released because it's part of the investigation. the video shows the killer bringing in 21 suitcased, getting help from hotel staff. he was known to stay in the cabanas by the pool. he reserved them for the better

customers. the behavior is what you would expect from somebody that was known at this hotel. a gambler that had been there for some time. we know those bags are filled with guns and ammunition and he would commit the largest mass shooting in history. the video disturbing that shows him to be normal, at least the video given to us. of course, until this. 58 people killed that night at the same time, hundreds more injured. many families and people still recovering with the mental anguish from what happened in las vegas. mgm has replied with a statement to the media in part, it comes from an mgm spokesperson that says --

>> of course, there's some people telling us at least off record right now this was released due to the fact that there's a lot of questions not only from media and family about this ongoing investigation on why they haven't found more and if they have found more why we haven't heard about it. >> sandra: chilling video. thanks, adam. outgoing secretary of state rex tillerson getting some laughs during his farewell remarks. we'll tell you what he had to say.

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>> sandra: outgoing secretary of state saying good-bye to the state department today. rex tillerson speaking to the department in a farewell address a short time ago. >> this can be a very mean-spirited town. [laughter] [applause] >> tillerson made no mention of

the president in those remarks. thank you so much for joining us this afternoon. i'm sandra smith. catch bill and me back here tomorrow live at 9:00 a.m. on american's newsroom. here's trace gallagher in for shepard smith. >> president trump laying down the law on china, announcing new import taxes worth tens of billions, but the chinese threatening to respond. we're hearing warnings of a potential trade war. we'll see how it acts your expenses. republicans on the house intel committee releasing a report they did not find evidence that the trump team colluded with the ed but the democrats say they will keep investigating. breaking news today, trump's lead lawyer in the russia investigation steps down. that's in this hour of "shepard smith reporting."