 No deal. So what is the deal more than 24 hours later? Still no response from China after trade talks in Washington and Without an agreement, but we do have an update from the president United States Here's what we know right now Massive tariffs are close to kicking in and stocks on all street are still being kicked up and down our Consumers on Main Street next welcome everybody. Happy Saturday on the old Kavuta and thoughts on top of a trade war That's pretty much putting everyone on edge We've got Edward Lawrence in Washington where the talks went down Ellison Barbara at the White House on what the president is teeing up Lawrence and I had a Macy's in New York City where shoppers may soon be paying up and Brian Duncan in Polo, Illinois Where farmers like him are already paying a price and a big one. We begin right now with Ellison. Hey Ellison Hi, Neil. Yeah, the Trump administration increasing tariffs on 200 billion dollars worth of Chinese goods President Trump saying this morning the way to avoid those tariffs is pretty simple He says that people should make their products in the USA President Trump also tweeting this quote over the course of the past two days The United States and China have held candid and constructive Conversations on the status of the trade relationship between both countries the relationship between president Xi and myself remains a very strong one and Conversations into the future will continue in the meantime the United States has imposed tariffs on China Which may or may not be removed depending on what happens with respect to future negotiations? The administration increased tariffs on roughly 200 billion dollars worth of Chinese imports upping the level of tariffs from 10% to 25 China Commerce Ministry says countermeasures are coming China's top trade negotiator Chinese vice premier Lu He suggested talks have not failed instead. He says this is a small setback I Don't think the negotiation has broken down on the contrary I think it is just a small setback in the talks between the two countries, which is inevitable We are still cautiously optimistic for the future The US trade rep ambassador Robert Lighthizer says more tariffs are coming in addition to the tariffs increased on Friday Lighthizer says President Trump told him to begin the process of raising tariffs on essentially all remaining imports from China Which are valued at approximately 300 billion dollars? Lighthizer says there will be a period of time for public comment before a final decision is made when it comes to those tariffs again From President Trump this morning. He says in his words It is very simple an easy way to avoid tariffs make or produce your goods in the good old USA Neil all right. Thank you very much. I was involved the white as we should explain here Yeah, they do have a little bit of wiggle room here because there is a delay In the implementation of these tariffs for goods and transit here and those that have not left China yet So two to three weeks presumably regardless though Fox business that were gloren so many outside Macy's in New York City with what consumers might be having to deal with in those three weeks Lauren You know, this is the largest store in the nation the largest department store and consumers here consumers everywhere are getting ready to spend 767 dollars more this year That's a number that's being put on it because of this increase In the tariff and this is being put on a thousands of items that you can buy in stores like Macy's everything from backpacks and Handbags to furniture and clothing Luggage perfume dinnerware nuts shampoo all sorts of food now some folks that we spoke to here Neil they're willing to accept this short-term pain for the long-term gain In the long run It's gonna benefit us as you as consumers because someone has to be tough and actually hold the line with the Chinese with these tariffs I'm scary. It really is. There's a lot of little people that are really gonna be affected by the fact that They can't afford these things that were affordable yesterday I think it will affect all types of different businesses and especially I'm in retail overall if it would help I would be okay. I would probably Just stop spending as much and we got to play fair and I think that's what Donald Trump is trying to do if I have to take a Hit to improve our country in that way, then I'm happy to do it But what happens if all of the imports to this country are hit with the tariff as the US Administration's office is now preparing to do well the trade partnership That's a group that studies trade policy and its impact They say that will cost a family of four two thousand dollars a year and Neil That might not be so easy for Americans to bear The other thing is this even if we do get a trade deal with China That doesn't mean the tariffs come off back to you. That's right. Now. There are no guarantees of anything right now Thank you Lawrence of it at the outside Macy's in New York City All right, the US and China still again nowhere close to a deal But what is the global impact of all of this keep in mind with the markets crazy volatility? Two trillion dollars of market wealth evaporated over the past week here now that may be quickly made up We saw the big comeback in the Dow through the week And certainly yesterday when we were down more than 358 points to come back more than a hundred and 14 When all was said and done so let's get a read on what investors can expect in the days ahead We've got stockswish founder Melissa Armo We've also got L.D. and wealth management's Michael Lee and Fox Business Networks Jackie D'Angelo's Jackie Anna with you You know when you talk to people and talk about the mood and all of that I'm always amazed by the relative calm of investors of average folks who seem to think this too shall pass So we'll get over this so there does seem to be a kind of a Contend that don't worry everything will work out. Well, there's optimism in the marketplace right now, right? We ended the session on a positive note White House saying the talks have been constructive and investors want to believe that The market saw a little volatility this week though because it had priced in a deal And that didn't really seem to be the right decision to make at that point So it was a little bit in shock this week that the president was taking this kind of hard line But most investors that I spoke to said the retailers they're gonna be able to adjust They already absorbed the 10% like you mentioned there's that gap of three or four weeks They'll be able to be a little bit more nimble and they've moved around They are already sourcing and trying to find new suppliers to make this work on the other side of things It is gonna hit the consumer But consumers do say the president is playing this long-term game and we understand that the markets driven more by the short-term headlines You know Melissa We're gonna have Walmart's former president on and Walmart would be in the direct line of fire This goes so much of what it sells comes from China But even there the understanding seemed to be that they were stocking up their shells to prepare for this Which might have explained, you know the strength of the first quarter GDP report that a lot of people were prepared for this Are they well, it's interesting you bring out Walmart because I was gonna talk about this of the top four companies Fortune 500 companies guess what number one is it's Walmart and guess what two three four are Chinese companies owned by The Chinese state state grid synopac group and China natural petroleum and their own by the Chinese government So you have to remember that it's state owned enterprises many of these companies over there The Chinese government owns a portion of them So the Chinese government is going to support some of the companies over there that are having a problem whereas over here It's different obviously companies are their own Walmart targets Amazons of the world Well, the government is going to come in and help Walmart Understand so there is going to be a pain and suffering here if the tariffs continue and let me tell you this This is not over by a long shot when they said a month ago. This is gonna be done I thought no way is this gonna be done This is going to get so much worse before it gets better and the worst it gets with the closer We are to a deal so when they said oh well They renamed on this and that that doesn't surprise me at all The Chinese want to make sure they get the best deal possible and in order to do that They're gonna squeeze and squeeze and squeeze to make sure so what has to happen It's to speak to biggest most economies in the world to big powers. It's like a marriage You have two powerful people a husband and a wife You have to have a compromise and the problem is that the US is saying we want it to be more fair for us But China saying well, yeah, but this is the way it's been for the last however many years What do we get so unless the Trump administration can come up with something to give is a compromise for China I don't think a deal gets done anytime soon. So they have to be creative I don't think the markets would flip over that kind of uncertainty Michael. I could be wrong But I you're optimistic that cooler heads eventually prevail, right? Well, they have to right Well, I know they have to but there's just too much at stake And so what you need to understand is the Chinese economy is essentially a house of carts, right? So we're up in arms over Deficit that's 4% of GDP their deficit is 10% of GDP and their current account deficit went negative for the first time And so they needed more than we do you're exponentially more than we do you see Their currency is essentially monopoly money. They've printed 30 trillion dollars of R&B since 2001 So they live on dollars euros and pounds So they need the direct foreign investment and what these tariffs not only hurt are exports They really really hurt direct foreign investment Do you want your supply chain coming out of China knowing that there's going to be the potential for 10 or 12? We're already seeing some companies preparing for that a lot of them going up to other countries in Southeast Asia like Cambodia Thailand would have you to compensate for what they lose out of China But you know Jackie, I'm curious stepping way back from this whether there's a silver lining here in the United States Interest rates have gone down the past two weeks and particularly this week So if you're shopping for a home or trying to refinance the one you're already in the odd thing about this crisis Whatever you want to call it is that it's made that a lot more affordable. You're absolutely right So as long as rates stay low and as long as the economy keeps chugging along the way it is It's actually in a really strong point Michael and I were talking about this in the in the green room That actually 3.2% GDP for the first quarter. That was a huge number That positions us well to take this hard line Look, there hasn't really been another president that's been willing to to go on the line here and put everything at stake again For that long-term gain and to sort of put China in its place It's something certainly that needs to be done But there's going to be some pain to come and that You know what's interesting to listen to you talk about when we've absorbed the 10% tariff That was in effect on these 40 to 50 billion dollars worth of goods now It's 25% on 200 billion plus could be 25% on everything we got from China You can absorb 10% you can work with your suppliers to try to eat the cost of that not pass it on the consumers It's much tougher 25% I'm telling you it could get worse than that not only could it be 25% Trump might actually have to threaten 50% of everything and I'm I'm telling you this from experience you have to understand the Chinese culture You have to you ever hear the one grain of sand thing everybody going out I'm telling you it's the culture they want to be number one and for the united states There's so much more here at stake because you have north korea over there with china This is this is so much bigger than just the tariffs everyone's saying so on the line You're not after this is this settle any time soon and you think there's more pain to come in the interim Yes, but I want to talk about the market really quickly the market is going to The market's going to rebound after this quickly But when it gets really bad, which I don't think we're at that point then the market's going to have a sell-off All right, but michael the president's doing the right thing by by by getting in china's face on this But it's just going to take a while Over the last so the department of defense the trade representative's office have estimated that china steals on average Two to three hundred billion dollars of intellectual property a year from the us That's two to three trillion Over the last decade and this business model of stealing ip to avoid paying into rnd for chinese companies Has to you got to get them to stick to that Yeah, well, I guess that was the sticking point in this trade. You gotta give them something. You got to give them something They want that's a compromise. That's an amount All right, we're gonna have a lot more on this same subject By the way, it's not just china We've got sort of like global hot spots he got pretty much everywhere No more so than when it comes to the iranians of the north korean not even that as well It's a scary world bit by bit. We're gonna sort it out for you. Stay with us