sunday everybody. maria: good sunday morning, president trump gets tough with china, sparking fears of a trade war. u.s. foreign policy getting a reboot with incoming national security advisor john bolton and the $1.3 trillion spending bill is expected to revamp america's military might. good morning everyone i'm maria bartiromo thanks for joining us right now on sunday morning futures. your 401 (k) takes a hit after the market fell off last week on fears of a trade war between the u.s. and china. are those worries overblown? we speak with congressman devon nunes and the white house's top trade policy advisor peter navarro. john bolton shifting things up in the united nations now he brings his hawkish views on north korea right to the white house as the next national

security advisor. senator lindsay graham on why he's happy about that. plus, washington has plans for $1.3 trillion in taxpayer money after congress passes and president trump signs into law a new spending bill. general jack keane on how this could benefit the military we're looking ahead right now on sunday morning futures. president trump taking on the toughest and foreign policy challenges using the power of the pen to slap sweeping new tariffs and restrictions on china. sparking fears of a trade war south carolina senator lindsay graham is applauding the president's effort to address what he calls unfair trade practices by beijing. >> china is a manipulate or, a thief when it comes to intellectual property. they dump, they cheat and they're going to pay a price. keep it up president trump, you will win this fight, because

china needs us more than we need them. maria: a lot more coming up from senator lindsay graham, later on in the program but first, the stock market reacting to the potential of a trade war even as china calls for cooperation in preventing one. the dow jones industrial average dropped 724 points on thursday marking the fifth largest point decline in history. house intelligence committee chairman devon nunes joins me now from the world ag expo in california congressman nunes is also a member of the house ways and means committee along with the chairman of the intel committee so a lot to talked to with you. mr. chairman good to see you sir thanks so much for joining us. >> thank you, maria great to be on. maria: and there you are coming from the world ag expo with plenty of farmers who no doubt have to be questioning now being forced to pay more to actually get their goods into china, give us your reaction to the aluminum and steel tariffs and this move this past week on china. >> well, china is a big problem.

we actually are running an investigation on many aspects of china at the house intelligence committee and i think most americans know that china is in fact stealing our intellectual property. they're spreading globally. they continue to manipulate currencies so china has to be taken on. i'm not sure that the aluminum and steel tariffs is the way to do it; however this is the path that the president has outlined for the american people and let's remember, every president has said that they're going to get tough on people who cheat on trade. this president is actually doing it and so we're going to have to as that happens we're going to have to watch the markets. i think every trade agreement is going to be negotiated. my recommendation to the white house is to not only just look at tariffs but let's look at where we can actually tear down tariffs too, so perhaps we can take this opportunity to strike trade deals with allies like japan, possibly vietnam, the philippines, other places in asia so that if china does want to get into a trade war, that we

can actually begin to open up more trade with their neighbors where they'll take some of our product we grow here in america, reduce those tariffs and bring in some of their products that's how free and fair trade should be done in this country. maria: that's an important point to look at japan, philippines and vietnam. i'll ask peter navarro about that coming up because of course he's working on the u.s. trade policies there but you just said something interesting that you've been investigating chinese practices. up were going to announce that this week are you going to come out with the details of that investigation in this upcoming week? >> yeah, we continue to look at the areas that we're going to investigate so the way that we're looking at it now, maria, is first and foremost, we're looking at the military footprint and potential military footprint that china's trying to put around the globe so this didn't get a lot of fanfare because there's so much attention being paid to the russian fiasco and russian collusion but in the meantime the chinese just opened up a base, a military base in jabuti,

at the entrance "red sea in heart of the middle east and the independent ran ocean along way away from china. we believe that they are looking at investing in ports and infrastructure around the globe, not just for military capabilities but also to control those governments to have the ability to lobby and manipulate governments, when you invest in things like financial markets or the energy sector. maria: yeah, this is a really important, go ahead. >> well i think most importantly also, they're stealing our intellectual property so either it's through the internet or it's through investing in educational systems here or think tanks. they're bringing people here. i believe that they are stealing silicon valley blind and in just just a few years the american people are going to possibly be looking to china for new coding and new programs because of everything the chinese are steal ing from here in america.

maria: that's right because they're trying to transfer technology to america to china on some of the most important industries of the future. what i was struck by speaking with you before this interview is you have called china a growing national security threat , so i want to turn to the fbi investigation in a moment but go through why you see china as this growing national security threat in particular building those military bases all over the world. >> well, i mean yeah let's start with that. so i just mentioned they're building a military base in jabu ti. they are also continuing to put more and more submarines into the oceans. they took over the south china sea so they built islands that are essentially i call them stationary aircraft carriers all over the south china sea so why does that matter to people here in california or all over the united states of america? well it's because almost two- thirds of the world's global trade goes through that area,

and so if they control the entrance to the red sea and they control the south china sea very strategic locations i might add, they effectively could cutoff world trade if they wanted to and so i don't see them, you know, nobody wants to have a fight or a war with china or a trade war with china but the fact of the matter is that they are a communist dictatorship. most of the major companies are state-owned enterprizes if you're an american and you try to invest in china you have to make a deal. some part of the communist party is going to own that deal. if you're not part of the communist party you aren't going to own a business so these are the types of things we have to be concerned about especially as they begin not only to advance their military capabilities but also to steal our military secrets and then furthermore, if you look at smaller countries around the globe they've really made investments into major infrastructure so i mentioned that a little bit earlier but if

you come in and the chinese loan you billions of dollars to build a railway or a port, what countries in africa have found out that comes with a price. they then want your vote in the united nations so these are the types of things why china is such a national security threat and why i think what you're see ing is if the president can move off of the steel and aluminum threats directly tariff s directly and move into more holding china accountable and bringing them to the table, we might be able to strike a deal that we haven't been able to strike in many decades. maria: this is a really unreported story an under reported story. i'm glad you just broke the news that you're actually working on an investigation of all of this and you will have more details for us on that coming soon, so we'll keep following that congressman. i know there are ten industries in china that are deemed off limits for foreigners. you can't even own a joint venture in things like defense and financial services and we don't do any of that here in u.s. so we'll keep watching that but i want to get your take on the other major investigation

you've been working on and that is of course looking at the fbi and its handling of the hillary clinton e-mail investigation as well as this russia collusion story. last week, we had one of your colleagues on the program chairman bob goodlatte of the judiciary committee and here is what he said. listen to this. maria: congressman let's be clear there are 1.2 million documents you've only seen 3000 of them and been stonewalled for five months. >> we have seen some documents. we've seen more than we saw from the obama administration justice department but we need more documents and we need them now and we need them unredacted by the way, maria. maria: if you keep getting stonewalled and you don't get these documents are you going to subpoena these documents? >> well the answer is yes. maria: okay, congressman obviously we got the subpoena it went out late last week, bob goodlatte broke the news on this program last sunday. if you don't get those documents

then what? >> so if i was chairman goodlatte what i would do quickly because i had to go through this for the last year, fighting department of justice and fbi for documents i think the american people now know that they stonewalled for many many months so he could actually figure out that fusion gps was paid by the democratic party and that clinton campaign to collude and interact with russians to get dirt on president trump, that took us a long time to find out and what i would recommend to my colleagues on the house judiciary committee and i applaud chairman goodlatte for what he's doing but don't wait so when we get back in two weeks if the 1.2 million documents aren't in the capitol, then what he should immediately move to hold department of justice and the fbi in contempt and if we have to vote on contempt, then we should immediately move to impeach those officials. that would be using the full power of the congress but we can't wait. we've been waiting and listening for over a year and a half to

the democrats in this country, scare the american people, that they have evidence of collusion with russians which they don't. they can't prove it. they've been saying it, you have these investigations ongoing, you have fbi officials who have been fired. congress is a separate branch of government we created the department of justice and the congress needs those documents and they need them now, they need them yesterday. maria: well you obviously for all of those reasons shutdown, closed your investigation in potential collusion because you did not find any but i want to go through the findings that you did come up with and report when you announced closing that investigation. what struck you most, because i find it really incredible that special counsel robert mueller is not looking at the collusion that we know that has existed between the democrats and the russians. wouldn't that be under his perview? >> well i think what there's a lot of things that strike me you asked me what strikes me most about the report we released let

me start there. what strikes me most is that we had 70 recommendations and findings yet i think you might be the first person to actually cover our recommendations and findings because all of the media that's essentially part of the allied with the democratic party ignored. they've went out with this narrative that the house republicans were never interested in doing an investigation, however the opposite is true. we have 70 findings and recommendations so what i'd start with on that is that let's start with paper balance. perhaps in this country, we just talked about china, we know that the russians are always up to no good. we better have you go back to using paper balance in this country so we have a way to check and double check that votes are accurate and all votes are counted. i think that's a major finding and recommendation in our report maria: i want to talk about that congressman. we also found no collusion between the trump campaign but we did find a link between the clinton and democratic party to the russians. maria: let's go through those links we'll take a short break and when we come back

congressman nunes stay with us and walk us through some of those, we will talk more about that and then there's this coming up. >> and when it comes to the dossier that was used by the department of justice to get a warrant against carter page, it was prepared by paid informant of the democratic party, a foreign agent with ties to russia. it is completely unverified and it should never have been used as the basis for a fisa warrant and i wanted special counsel to look at all of this like mueller 's looking at trump. maria: senator lindsay graham one of the powerful republican lawmakers now calling for a special counsel. how likely is it follow me on twitter at maria bartiromo at sunday futures more with devon nunes after the short break as we look ahead on sunday morning futures we'll be right back. we took legendary...

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maria: welcome back we are back with california congressman devon nunes chairman of the intel committee the chairman of the house intel committee that just voted to release the republican majority's report on the russia investigation which found no evidence of collusion between the president and russia and congressman, i was saying this earlier, if we know that the democrats and the hillary clinton campaign paid for the dossier then the fbi used the dossier to get a warrant to wire tap the president's team, i mean , shouldn't that be under the group of things that the special counsel looks at since his mandate, robert mueller's mandate was to find collusion with the russians. can we ignore it? >> well, you could think so, but i have no faith in that process. you know, i supported the mueller probe in the beginning but i thought originally they would get into the who did all

the leaks, you know, who leaked the conservation between general flynn and the russian ambassador maria: which was a felony right? >> which was a felony. that hasn't been looked at so this is not, to me, they're just looking at the trump campaign. this is a further continuation of what the fbi was doing that started mid-summer 2016. it's a continuation of that and look, there's no collusion if they don't have any collusion they ought to come out and say it if they have some collusion then they ought to come out and say it but it seems to me like this is going nowhere fast and in fact let's remember too one of the findings we had is theres an old law on the books that's 200 years old that's never been used called the logan act. this is the reason that they went after general flynn at least the reason they described to congress so one of the findings we have in our report is why do we have the logan act on the books when we month that it's selectively enforced so you decided to use it against your political opponent general mike flynn the incoming national security advisor to president

trump however the obama administration who had people over in moscow back in 2008 talking to the russian government which would clearly be a violation of logan act it wasn't enforced then, so this is an outdated law. its never been used it should be struck from the books so that political opponents can't use it against each other. maria: we are waiting on the ig report the inspector general. what should we expect from michael horowitz's report? it feels like ahead of that report some key people are being reassigned or fired within the fbi as a result of what's coming >> yeah, so i mean the main thing that we've learned so far is that the ig was able to get these text messages between strzok and page and that's really illuminated a lot of the problems and biases that we were able to see in the justice department and the fbi's investigation and so it will be interesting to see this was only the ig report is only looking at how they handled the clinton e-mail investigation, so we really need that report the sooner the better because that

information is really pertinent to the investigations that both the judiciary committee has going on and the intelligence committee because we're still looking into fisa abuse and other matters. we still have a lot of witnesses to bring in from the state department and from the fbi and doj to try to get to the bottom of, you know, was there a conspiracy to go after the trump campaign, did people purposely obstruct congress' investigation we still need to get those answers and that's what we continue to look at. maria: and we'll continue to look for any new text messages that come out to illuminate further information for us. congressman good to see you sir thanks so much. >> thank you maria. maria: we appreciate your time this morning congressman devon nunes coming up next sunday morning futures right here senator lindsay graham on how president trump's pick of john bolton will be the next national security advisor changes the game. and then why he voted for the $1.3 trillion spending plan, all that coming up as we look ahead on sunday morning futures right here. one moment can change a life.

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maria: welcome back just hours after the threatening to veto a $1.3 trillion spending bill over the lack of border wall funding and the daca fix and too much spending, the president did sign it into law on friday. the president says he will never sign a bill like that again. president trump: i say to congress i will never sign another bill like this again. i'm not going to do it again. nobody read it. it's only hours old. some people don't even know what is there $1.3 trillion. it's the second largest ever. president obama signed one that was actually larger which i'm sure he wasn't too happy with

either. maria: and joining us now is senator lindsay graham member of the senate judiciary committee and senate budget committee. great to have you on the program thanks for joining us. >> thanks for having me. maria: let's start off right about this spending bill obviously you and your colleague s faced a lot of pushback with all of this spending did you vote for this bill? >> absolutely it was an easy vote for me. it's not a perfect bill by any means but it's $650 billion to our military who desperately needs the money to rebuild military. the president promised us if he got to be commander-in-chief that he would rebuild our military. this is the strongest down payment in the military since ronald regan, the biggest pay raise for our military service members in over a decade i am enthusiastically supporting this bill from a military point of view. maria: well i understand that the military has gotten absolutely pummeled by sequestration and that's absolutely a fact but did you

have to give into so many other things in order to get the money for the military? supporting planned parenthood, more money in infrastructure, healthcare, nih, lots of stuff in here that you otherwise may not have voted for. >> well, there's 51 republicans and 49 democrats and at the end of the day they have priorities too, spending money on the nih i think makes sense to me but as to deficit spending here is what i would tell the president and anybody else whose listening. we're not in debt because of the discretionary spending we're in debt because medicare medicaid and social security are just exploding in cost at two- thirds of the federal budget and it's entitlement spending plus interest on the debt so if you want to get out of debt let's do entitlement reform. i like this package from a military point of view. it's a lousy way to govern because four people write a bill in two days so we need to do better there. maria: you're absolutely right. the entitlement spending is the problem. when does that become a priority when do you expect we are in

fact going to see programs or proposals to reign in the spending on things like social security before they go bankrupt >> we need somebody to take the role of ronald regan on the republican side and challenge the democrats like tip o'neill, they adjusted the age retirement for social security in 1983. it extended the life of social security by about 40 years. president trump, i hope, will look at entitlement reform and make it a priority for the nation. maria: let me switch gears and ask about john bolton, had had mcmaster is out, john bolton is in as nsa director, you're reaction? >> hr mcmaster served the president well and he helped stop a national security flag under the obama years. he helped reset the world, president trump has been a terrific commander commander-in-chief. john bolton seized north korea for the threat they are two weeks ago he wrote an op ed piece that the military option should be on the table and in

diplomacy fails so that when president trump meets kim jong-un his national security advisor will be with him and the north koreans know without a doubt that john bolton seized their nuclear program as a threat to the united states and will strongly advice the president to use military force if he has to, which means it's less likely we will. when it comes to the iran deal, john bolton's been the biggest critic of the iran deal, it's a terrible deal, so i am very pleased with john bolton as the national security advisor to president trump. it's going to make the world safer. maria: so the date is may 12. do you think the president does not renew that iran deal at this point? >> unless you change the sunset clause, which says the following in 15 years under this deal, the iranians can reprocess and enrich uranium they can march toward a nuclear weapon without having to cheat and what president wants is to say any time they get within a year breakout, we will reimpose

sanctions. they can't deny inspectors access to military sites where they're doing all their mischief john bolton has been dead right about this deal. president trump's been dead right about this deal. to my european friends, if you don't work with president trump to get a better deal he's going to withdraw and he should. maria: wow that is really fascinating on the meeting with kim jong-un also coincidentally expected in may, what is going to happen at this meeting? do we believe them they really want a true meeting? is this sincere? i think it's driven by fear of donald trump. maria: yeah. >> that donald trump is the first president in my lifetime that's convinced the chinese and the north koreans if i have to use military force to protect the american homeland i will and it is a game changer. here is what i think could happen in north korea. now, you've got john bolton whose been very hawkish on north korea. i think kim jong-un is going to have a choice to make that he's never had to make before. give up your nuclear program to

saviour regime. if you keep going down the road you're going you're going to wind up losing your regime and here is what i think trump can do. he can bring the korean war to an end. we're still at war. there's not a peace treaty. wouldn't it be magical for donald trump to negotiate a peace treaty to end the korean war between north korea, south korea, china and the united states, and one of the benefits of that peace treaty is to have north korea give up their nuclear program and live on the same terms as south korea. we have a chance here to change the world and i give president trump all the credit in the world for making this possible and john bolton being at this meeting is going to reinforce the message that we're serious about bringing about change. maria: i've got to get your take on these tariffs because what a week it was. >> it was. maria: markets reacted to the president's moves against china, restrictions on trade and investment as well as tariffs on

top of the aluminum and steel tariffs your thoughts? >> the aluminum steel tariffs i think were too broad. the dumper is china, it's not canada, it's not mexico, it's not europe. the idea that president trump is going to hold china accountable for dumping, for currency manipulation and intellectual property theft is long overdue. to my friends in agriculture i know you're concerned because you sell a lot of products to china but in the manufacturing world where i live in south carolina, china has stole market share, not be the side of it. they manipulate their currency, they steal intellectual property , dump commodities into the stream of commerce and final ly donald trump is going to hold them accountable. all we're asking china to do is to stop cheating and we're going to have to be tough. there's going to be some pain involved but if president trump can pull this off and change chinese business practices, then we can have free-trade. without china changing their practices we're never going to

have free and fair trade. maria: all right stay right there. we have much more with the senator including this call for a second special counsel as we look ahead on sunday morning futures back with lindsay graham after this. more and more people are finding themselves in a chevrolet for the first time. trying something new can be exciting. empowering. downright exhilarating. see for yourself why chevrolet is the most awarded and fastest growing brand, the last four years overall. switch into a new chevy now. current qualified competitive owners and lessees can get this 2018 chevy equinox for around $199 a month. chevrolet. find new roads. jardiance is the only type 2 diabetes pill proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease... ...and lower your a1c. wow. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy,

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and months obviously bob goodlatte and your committee have subpoenaed the documents in the hillary clinton investigation. what do you want to see 1.2 million documents is what you've requested you've only gotten 3000 from the fbi? >> well i want more information and be able to prove that the fbi investigation of the clinton e-mail scandal was a sham, that the lead investigator, the lead fbi agent hated trump, supportive of clinton, they whitewashed the e-mail scandal. if you'd done what she had done, you'd probably be in jail now and to hold the fbi accountable for not doing their job correctly, that comey i think the fix was in and when it comes to the dossier that was used by the department of justice to get a warrant against carter page, it was prepared by paid informant of the democratic party, a foreign agent with ties to russia, it is completely un verified, and it should never have been used as a basis for a fisa warrant and i want a special counsel to look at all

of this like mueller's looking at trump. maria: i mean they used that dossier as a reason to get the warrants to wire tap and they didn't tell the fisa judge that in fact the democrats paid for that it was a political opponent paying for that dossier. >> and hears is the question, how much effort did they put into verify the dossier, i can tell you the answer none, steelworked with the fbi in the past and they took the dossier for face value and they never did anything to verify it and we can tell you now in march of 2018 it is still unverified. it is a bunch of political garbage fed to steele by the russians to embarrass the president and used to get a warrant and every american should be concerned about how the fisa process was abused here maria: you would think so. at this point, the michael horowitz ig report we're waiting on the ig report. what is it going to tell us? >> i think it's going to tell us that the department of justice and the fbi ran a lot of stop

signs when it comes to the fisa process, that the clinton e-mail investigation was unprofessional ly handled, that it was a bias that the fbi got off track the department of justice used information to get a warrant that was highly unreliable and they need to reform their business practices but he can't subpoena people outside the department of justice. he has no ability to prosecute people and i really believe that mr. steele may have committed a crime here. he told the british court that he shared the dossier with the world press. he told the fbi he never shared the information with media outlets. maria: right. >> what i want to know is did the fbi agents in question who are outliers in terms of the fbi , did they come up with an insurance policy to help guarantee an outcome of an election? if that's true if they were even thinking about doing that, that scares me as much as anything russia whose ever done. maria: well that is an incredible abuse of power do you think we'll see any

accountability here senator? >> if we don't it will be a terrible day for the system. the department of justice cannot investigate itself. you're going to have to have somebody come in with fresh view of this, has nobody to reward, nobody to punish, the inspector general is limited institutional ly as to what he can do but i am really intent on having new eyes look at what happened to the department of justice and the fbi because they can't investigate themselves. maria: so when will we know whether or not we're getting a second special counsel? >> i can't believe its taken this long. maria: yeah. >> look what we know. we know steele lied about the role he played in handling the dossier. we know that the fbi agent in charge of the clinton e-mail investigation was a complete political hack. we know that information was whitewashed and we know that comey had made a decision to letter off long before he said he did, so there's a political bias here that needs to be looked at and there's potential

crimes. i'm not saying take lindsay graham's word for it. i'm saying pick somebody independent of the department of justice to do what we're doing in the mueller case. maria: let me go to the taylor force act you introduced this act it's obviously important in terms of the palestinian authority and what they're doing tell us about that? >> the best way to tell you about the taylor force act is to tell you about taylor force. taylor force was a west point graduate his parents live in south carolina he served a tour of duty in after began stan and iraq and he was studying in israel as a graduate student went out to dinner one night came out of the restaurant, stabbed to death by a palestinian terrorists and the man who stabbed him was killed by the israeli defense forces, the body was sent back to ramala and the west bank and he was welcomed as a hero, his family, the terrorists family received a lump sum payment from the palestinian authority free benefits free education for life for his family members, and this bill stops all taxpayer-funded

assistance, american tax dollars will no longer be given to the palestinian authority until they change their laws rewarding their young people for killing jews and americans. maria: will you be able to say categorically there will be no payments to terrorists coming out of the palestinian authority will we even know? >> we have two laws in place, if payments are deducted against the aid we already provide but taylor force is suspended all palestinian authority aid until they change their laws enticing their young people to commit acts of terrorism, the palestinian authority as a government entity pays people to kill jews and americans and holds them up to be mart afters. this is probably the biggest change in 20 years in terms of how the american government relates to the palestinians and it's long overdue. maria: we will leave it there senator always a pleasure to see you thanks so much. >> thank you. maria: senator lindsay graham.

so what is next between the u.s. and china? are we on the verge of a trade war we'll talk with peter navarro up next live right here as we look ahead on sunday morning futures we'll be right back. pssst. what? i switched to geico and got more. more savings on car insurance? a-ha. and an award-winning mobile app. that is more. oh, there's more. mobile id cards, emergency roadside service... more technology. i can even add a new driver... ...right from her phone! geico. expect great savings and a whole lot more.

maria: welcome back trade fears rocking stock prices after president trump announced new tariffs and restrictions against china. peter navarro is the director of office of trade and manufacturing policy and he joins me now peter it's good to see you sir thanks for joining us. >> good morning maria. maria: tough week for markets on these policies. what are people missing, peter? >> i do think it was an over- reaction based on incomplete information. you have a virtue us cycle of global synchronized growth as you talk about earlier, you have an incredible policy of the trump adminitration and let's look at the four points of the compass . we've got tax cuts of president trump orchestrating one of the most brilliant tax cuts in history, what we're

going to see from that is strong investment in 2018 and 2019 driving a productivity growth and it will be non-inflationary so that's growth-inducing you have a supply side positive stimulus with the great deregulation efforts that president trump has orchestrated and we have the energy unleashed so we'll have lower manufacturing cost lower consumer cost, then you go to trade. now, before we get to china which is important, let me just point out that president trump, this is brilliant. he's getting nafta renegotiated we're going to get a good deal out of that. he's renegotiating the horrible korean deal and it looks like we're going to get a very good result on that and he had a 201 investigation on solar and washing machines in january where we in posed tariffs and what president trump got out of that guess what a flood of new foreign investment here to build american factories to make things with american hands.

the 232 which was for the aluminum and steel industries absolutely necessary to defend our aluminum and steel industries against the flood of imports, and that's important both through national security and economic security and we succeeded there, and now, we've tackled interestingly enough a problem which there appears to be widespread agreement on right and left. maria: should you have done this first? should you have done china first instead of aluminum and steel? because aluminum and steel most people say was too broad and that's what's creating all of the uncertainty. >> look, in terms of sequencing this is unfolding the way the president sees it strategically. think of all of the balls that are in motion that are pointing to a great rebalancing of our trade. the fundamental problem structurally which we've had for the last 15 years around the world is massive trade imbalance s fueled by unfair and

non-reciprocal trade practices not just by china but by many of our trading partners. maria: but you said we weren't going to see any retaliation. you told me on my morning program on the fox business network we're not going to see any of these countries retaliate they won't mess with their surpluses and yet we did see that. china came out last week and said yeah we're going to retaliate on $3 billion worth of products. >> and that retaliation as some people have described it is muted but at the end of the day, china's a sovreign nation and it has to make a choice about how it wants to proceed in the global economy. i think it's important to recognize here that it's not just the united states who is tired of having china steal our stuff, tired of having their foreign corporations go into china, and have force technology transfer occur and all we're trying to do, the president's vision here, it's stunningly brilliant because what he's trying to bring about is the

fundamental reordering of the global trading system in a way in which focuses on free markets , fair trade, and reciprocal trade and that's not what we have there, so for the markets when they look at the chess board here it's really important to understand that everything the president does, every morning that he goes to work is all centered around driving economic growth and creating jobs, not just here in america but around the world. maria: yeah, no i understand the china stuff. there are 10 industries robotics , ai, that china wants to be number one in so i understand that, but do you need to do deals with vietnam the philippines and japan as devon nunes just said earlier in the program, to offset what we could lose from china. >> as part of the overall trade strategy and ambassador robert lightheuser is basically the architect of this with president trump, we are going to be doing great deals bilaterally with countries around the world. that's all part of the canvas of

trade that president is painting in a beautiful picture but look at all of the things we are already engaged in. nafta, chorus, it's amazing. we got aluminum and steel defend ed. we basically are using the 201 to protect ourselves from unfair import surges and this 301, i mean this section 301 ambassador and the president are moving forward is brilliant. we're finally attacking a problem which will basically help guarantee our economic future and our national security feature. maria: we'll be watching this. i guess with all of the uncertainty markets first sell and then they analyze later peter we'll keep following it and we'll speak to you soon thank you so much for weighing in. peter navarro so why did they spend all that money the massive spending bill, it is benefiting the military, where will it benefit most general jack keane will join me next live to discuss that. mercedes-benz glc...

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maria: welcome back president trump touting the benefits to the military will receive from that massive $1.3 trillion spending bill, joining me now fox news senior strategic analyst retired four star general jack keane always a pleasure to see you. >> great to see you maria. maria: we've spoken a lot about the underfundedness of the military your reaction to this plan? >> well first of all our troops do need a pay raise and that's important we haven't had one of this size in about a decade so that's a great shot in the arm for them and their families and getting to the actual military capacity the first thing we've got to fix is our equipment. we've got to get our airplanes flying again. we've got to get our vehicles rolling again, and that's actually due to a lack of repair parts in other words we have to buy repair parts to fix that equipment and that's why 50-60% of our airplanes are just not flying we just have not had the

money to buy those parts. the next thing is the training of our troops regardless of the service. the reason why pilots are having more accidents is because they're not flying sufficient amount of hours every month to maintain their skills. the same thing with navy ships b anging into commercial vessels. we've had a lack of training and preparation of those crews on those ships and we have the same problem with our ground forces but not just as obvious so what we will do is increase the time for training and that takes money and that money is going to be very important. then the third thing that's going to be very important to us is the russians and the chinese have closed the technology gap on us and in some cases, have advanced beyond our capabilities and in certain categories, so we have got to spend money on future readiness which is why. it's new equipment. we need offensive missiles, we need better missile defense, we need a long-range bomber, we need more submarines, we need more tanks, a laundry list out

there now we're able to make a downpayment on getting these capabilities that we have desperately needed for a long time, but they have been on hold for more than 10 years. maria: real quick sir do you think john bolton brings value to the table here? >> sure, of course. this is about president trump really he's on the job 14 months he's comfortable with the job he knows with this role of being president is all about he didn't know for sure until he started doing it and now he's figured out who he wants around him. he's gone through this issue with other people who have served him well but maybe not quite in the capacity that he wants. he's the president he's got the agenda. so it's all about picking people that he wants to have with him like rare kudlow, like mike pompeo and john bolton and there will be other changes down the road as this presidency involves i think this is a normal thing and maybe there's more change here because he didn't grow up in a political class he grew up

in business and he didn't have a working familiarity with these issues, so yes. i think this is all positive. maria: general thanks so much for joining us great to see you general jack keane i'll see you next week on fox (vo) technology moves fast. you can move faster. the 2018 audi q5 is here. the only vehicle in it's class with standard apple carplay integration for your iphone. that i served. of the fact i was a c130 mechanic in the corps, so i'm not happy unless my hands are dirty. between running a business and four kids, we're busy. auto insurance, homeowner's insurance, life insurance policies. knowing that usaa will always have my back... that's just one less thing you have to worry about. i couldn't imagine going anywhere else. they're like a friend of the family. we are the cochran family, and we'll be usaa members for life. save by bundling usaa home and auto insurance. get a quote today. i look like most people.

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>> lou: good evening, everybody. break news tonight. president trump has announced that general hr mcmaster is out as national security advisor and will be replaced by former united advisor john bolton. the announcement comes after weeks of tension between trump and mcmaster. president trump said mcmaster will stay on until april to ensure a smooth transition. and the rinno congressional leadership told the american people to go to hell and the americas didn't like it one bit. the house was