 You are looking live at the President of the United States. He is campaigning of sorts in Hackberry, Louisiana. He's going to do some fundraising there as well. He's been talking about the economy, talking about the prospects for a trade deal eventually amid word that we just got moments ago that the Treasury Secretary, Steve Mnuchin, does indeed plan to go to China. No time frame has been announced here, but that the talks could continue. We just don't know how soon. We do know that at the corner of Wall and Broad, they liked these developments. We were up about 210 and a half points off our highs for the day and making up a little less than half the ground that was lost yesterday. So what's really going on on the trade front? Let's go to Blake Berman at the White House. Hey, Blake. Hi there, Neil. And President Trump today described what's going on between the United States and China, not as a trade war, but as a, quote, little squabble before the President left the White House here for Louisiana. The President said he was not surprised that China retaliated, said the talks between the U.S. and China have not collapsed. And at this point, he says it is the U.S. and not China that so far is coming out on top. I think we're winning it. We're going to be collecting over $100 billion in tariffs. Our people, if they want, they could buy from someplace else other than China, or they can really, the ideal is make their product in the USA. That's what I really want. Yeah, we're winning it. You know what? You want to know something? You want to know something? We always win. Earlier today, a spokesperson for China's foreign ministry said that China is going to fight to the finish and contended that it was the U.S. and not China that had backed out of prior agreements. That spokesperson saying at one point, quote, it is never China that backtracks and breaks its commitments. Meantime, Neil, back here in Washington, even Republican leadership is starting to get leery at this notion that this could be a prolonged trade war. Ultimately, nobody wins a trade war unless there is an agreement at the end after which tariffs go away. A lot of these, the obviously costs get passed on to consumers, so there are impacts there. There are clearly impacts on the ag economy, and we're feeling that in farm country. Now, the president also suggested today at one point that the Federal Reserve could help out by lowering interest rates. This was one of his many tweets on China today, writing, quote, China will be pumping money into their system and probably reducing interest rates as always in order to make up for the business they are and will be losing. If the Federal Reserve ever did a match, as he put it, it would be game over. We win. In any event, the president says, Neil, China wants a deal. We'll see, Neil. We will see indeed. Thank you, my friend. Again, just a review here. June 1st is when all of this kicks in, the tariffs higher on our side, tariffs higher on their side, affecting thousands of goods. Let's go to Fox Business Center's Deirdre Bolton on what could happen next. Hey, Deirdre. Hey, Neil. Well, a lot of the products that were targeted by the Chinese, not surprisingly, are agriculturally based, so the Chinese are doing this for political strategy purposes. They know that the states that produce a lot of what we export, at least in agribusiness, are states that voted for President Trump. So decaf coffee is just one of the items on the list, nuts of frozen fruits. So a lot of these items are the ones facing tariffs. So long story short, any Chinese person who wants to buy any of these American products, Neil, will just have to pay more for them as of June 1st. Now, last week, President Trump also threatened but did not yet to put into effect additional tariffs on a new list in the thousands of Chinese goods. On June 17th, the Office of the U.S. Trade Representative, of course, as we know, led by Robert Leitheiser, began the formal process that could lead to those new tariffs. So the public hearing that's on the 17th and that public comment period lasts until June 24th. So tariffs, in theory, could not be imposed until after that day, but that would really up the ante. What they're talking about is thousands, as I mentioned, of new Chinese goods worth about three on $300 billion worth of imports per year. So currently, as we know, the U.S. has about a 25 percent tariff on $250 billion worth of Chinese goods. All of these decisions, of course, increasing the stakes ahead of the G20 summit in Osaka, Japan, June 28th and 29th, when the Chinese President Xi Jinping and President Trump are expected to meet. So, Neil, obviously, they're going to have a lot to talk about. In the meantime, back to you. It would be funny, though. They never even mentioned trade, like, you know. They just talk about soap operas and, you know. Are you going to eat that? Yeah. All right. Thank you, dinner very, very much. Dinner, Bolton. All right, so much at stake in the next couple of weeks. Wall Street was betting kind of today that maybe they overdid it yesterday. Maybe cooler heads will prevail. You've heard that. We were up about 207 points. 24, the Dow 30 stocks were in the green today. Something that was the mirror opposite yesterday. Virtually all of them fell. Let's get the read from Susan Lee. We got heat there. Herzog with us. An eight squared research stock swoosh editor. Is that what you call it? You're in charge of it. It's you. I own it. I am the stock. You are. Kukukachu, you are the swoosh. So Melissa Arnau here. I'm curious when you look at this. The Wall Street today versus Wall Street yesterday. What's more accurate? Today really tells us absolutely nothing. Everybody literally yesterday, all the analysts, all the experts are saying, buy the dip. This is great. Buy an opportunity and we're lower. You know what? I heard you even say it. Do you really want to buy a falling knife? I don't think that this is over. And given the next six weeks and what could happen the next six weeks, if you buy here, you may be in a world of pain going into the next six weeks. So you're guarded right this. How do you play it? Absolutely cautious. OK. Do not go long. Anything right now taking new positions. If you're in the market long term, I believe that the uptrend holds. However, to get in new positions now in any major stocks or even the overall market, I think would be very not a good idea. Yeah, we're trying to read the consumer. Right, you follow retailers very, very closely. We do know that around June 1 thereabouts of nothing changes. A lot of goods are going to get a lot more expensive up to 25% more expensive. I had the former president of Walmart here was saying we're very worried about that. Well, the retailers are very worried about that because you can pass along smaller increases like the ones we've already absorbed. 25% is another matter. What do you think? Right. Well, the consumer is not going to pay an actual tariff, but to your point, they're going to pay for the price hike. So a family of four is looking at potentially $500 extra on items like apparel, footwear, unless they find an American alternative. Exactly. But you have to think about the retailers that are the manufacturers that have to relocate everything from China to the United States. So footwear right now, 69% of footwear is produced in China. And then 42% of apparel is produced in China. So inevitably, the consumer will have to pay for that price hike. The the issue is, will it even happen? So I think that people, you know, I tend to be on the other side of the argument, saying, you know what, let's just take a step back here. Let's not get our, you know, our knickers in a bunch. And you know, it's interesting, it's the first time I've heard some, you know, getting in your face back from the Chinese. And you've worked and covered the area very well, Susan. And I know that Chinese state media was touting something. They 5,000 years, we've endured trials and tribulations, hinting, obviously, that 5,000 years. It's a long time, isn't it? And they do plan for the long term. And I guess that's part of their thinking, this miscalculation in these trade talks, right? They thought, OK, well, let's wait it out to the midterms. And then let's wait it up after the Mulder report. And maybe they'll wait it out to 2,020. There are, there is a speculation on the markets. I think, though, given what's happening in the Chinese economy, there's a high wall of debt at this point. You have slowing growth. You also have a weaker currency. I don't think they can afford to wait that long. What about doing something really nuclear? They could devalue their currency, Melissa. They could also stop buying our treasuries or worse, sell them. I don't think they're going to go nuclear right now because they don't want this to escalate it. They didn't really want this to even happen at all. I think Trump is pushing the envelope. And I think it's eventually going to get to the point where it gets very bad. And how does it help them, anyway, is by selling off these treasuries? Yeah, they only hurt themselves. Yeah, we think it's their currency rights. And they want the relationship. Well, they might like that. Yeah, where else are they going to go? What is more liquid and stable? They're going to hang on. But I honestly believe that it's going to get to the point where everything gets taxed. You can call it a tax and call it a tariff. You can call it whatever you want. The problem is... I'm sort of like you keep mentioning that because I don't mean to politicize this one or the other, but tariffs are taxes that we pay. But it's not going to be exactly 25%... No, no, no, no, no, no, no. It's not going to be exactly. But there are alternatives, right? Some alternatives in some markets. Sometimes you have to buy the stuff from China, or you don't. No, let me ask you this. What are the most expensive... Like, what is the stuff that has the highest profit margin that's really, that could be the cushion? Because like food, for example, things that have a bigger profit margin, those companies, what are those things? Those companies are probably going to absorb some of that. So what are those things? It's exactly what I was saying. It's apparel. It's footwear. It's clothing. It's clothing. But these are discretionary items. I mean, this is, you know... It's not something you have to have to have. You don't have to have these, exactly. So I think people, again, we're talking about these tariffs that consumers are really going to feel the pinch and what's going to happen before we're thinking into holiday. Nothing is going to happen. I don't think... We're going to be fine. But let me answer it. A lot of American companies have been hedging their bets. First of all, buying a lot of goods to stack on their shelves that help the first quarter GDP. But a lot of them are getting out of China or spreading their manufacturing to other locales, like Mexico, like Cambodia, Vietnam. What do you make of that? And that is something that Chinese fear a lot more. That's been a trend for the last five years. It's just, it's not brand new that happened in the last few years. You don't think it's accelerated with this? I think it might accelerate. China is not a cheap place to produce anymore. Yeah, that's true. And by the way, it's not just the consumers that we heard. What about the U.S. companies that operate in China? What about the plants that Apple owns? I do have to add, though, it is very hard to remove all of that manufacturing out of China. I mean, it's like a slow-moving barge to get all of that manufacturing out very quickly. They have been trickling and doing this for a while, so. Right, to see if it's going to happen. I think what's going to happen is, and this is where it's going to be between now and the end of the year. If a deal doesn't get done in 2019, which low ads that I think that a deal does get done in 2019, then China's going to roll the dice. They're going to take it into 2020. I see if Trump doesn't get re-elected. However, that is very risky, because if Trump does get re-elected, Trump will be emboldened through this process, and it will get worse for the Chinese then, and then there could be tariffs going on. I'm talking 12, 24 months longer, and that's where you're going to see the effect than in the economy. How did you get to be Debbie Downer all of a sudden? I'm not Debbie Downer, but I said this to you on Saturday. I know, but you were in this bullish before. I'm bullish. I'm bullish on the market. I am bullish on the market, but that's a different thing, because I've done business with Chinese corporations, so I understand that they're going to push back harder. They're not going anywhere. Well, they're pushing back. I just want to make the real quick point. The S&P 500 has been up 20% since the last time we saw this, which was Christmas Eve in 2018. We've got to go right-strap back up to the highs. Right after this rally today, if we go right-strap back up to the highs and get over the highs, then I'll say, okay, great, do, do, do, do. Well, that's the pattern. Well, we've had these China dips. If you bought on those dips, you did well. But one tweet takes us, boom, and then we go right down. How was that again? That's a swoosh. That's a swoosh. That's right, one stop swoosh away. All right, the Attorney General of the United States, William Barr, is now investigating the investigators. He wants to go back to how this all started.