i think that the pure reality of nafta is going to show the benefits of nafta, and the consequences of dismantling nafta would be catastrophic to all three countries. so, this thing has such a massively interconnected, damaging process if we try to take it apart. it's almost like humpty dumpty, you know; we can't put it back together again. >> stewart: two announcements by president trump put him at odds with leaders in the nation's third most populous city, chicago. first, mr. trump wrote on twitter if chicago leaders can't reduce the violence in the city, he'd "send in the feds." there were 4,000 shootings and nearly 800 gun homicides last year. then, he signed an executive order withholding federal grant money from so-called "sanctuary cities" like chicago that limit cooperation with federal authorities on detaining immigrants. to discuss both of these issues, i am joined from chicago by "usa today" reporter aamar madhani. aamar, to describe what was going on in chicago, president trump used the word "carnage" which quite literally means large-scale killing of people. so in this ins

is nafta broken? diana: no, but nafta is old. it was signed 25 years ago. after a generation it is time to renew, time to strengthen it. remember when we signed it there was no digital commerce, no internet. so it wasn't included. now we've got to look at internet commerce, cyber security. and we've got something interesting -- we have to add energy. soledad: many of the critics of nafta don't list cyber security and internet commerce as their big issues. do you know, do you have a good sense of what trump want to do with nafta? diana: he wants to increase jobs in america and bring companies back to america. the way to do it is to improve nafta, not break it. soledad: -- i've broken it down to three things one, he wants to eliminate mexico's trade surplus. another thing he has is limit investment by american companies in mexico and then the third thing he has mentioned is raise tariffs against mexico on goods that are coming into the us. diana: let me take the first one. we make cars with mexico and canada. parts of the process is carried out in mexico. a l

here, when it comes to nafta. right now we're in nogales, arizona, this is an area where it is ground zero for nafta. i want to show you as we speak you see down there, this is the port of entry. it's right next to the border fence and that is a line of tractor-trailers and semis coming into the united states in 1994. nafta removed import and export taxes so they started making things in mexico. they would ship them here and it would be cheaper to buy, and then we ship doing things down to mexico where we're using increased technology and some advances in our labor. and it was cheaper down in mexico, but, donald trump obviously wanting to bring a lot of the manufacturing back to the united states residents here in nogales say not so fa. and the reason why is because this entire region here along the border has built their industry in supporting the international commerce that you see happening behind me right now. you've got a warehouse after warehouse. in fact over 100 warehouses in this area. thousands of jobs i

anybody ever heard of nafta? they ran a campaign somewhat based on nafta but we are going to start negotiating on nafta and immigration and security at the border. and mexico has been terrific, actually, terrific. joining us now from the floor of the new york stock exchange is our business correspondent michelle fleury. michelle li, what can he do to change nafta ? michelle li, what can he do to change nafta? or can they change it at all, to do what he wants to achieve, help americans and get a better deal out of the agreement?” was asking various trade experts about this. donald trump could certainly repeal nafta if he wanted to. but it is possible he could rip up to. but it is possible he could rip up the agreement altogether. it sounds like that is not, at least in the first instance, what he hopes to do. the talk is that he is planning to set up meetings with the leaders of canada and mexico. those are the three countries, canada usa and mexico involved in the agreement. it relates to the movement of goods

to nafta. this is the past that donald trump leaves out. but the fact that jobs have been lost is important. >> i want to dig into the jobs thing, ali, because i think it is sometimes tough to hear this discussion. how does it affect me or my family? the center for automotive research says renegotiating nafta could mean losing 30,000 auto jobs in the u.s. >> this is the part where it starts to get tricky. it was based on the free trade agreement based on the auto pact. autos are central to this. since 1994, the united states has lost 350,000 auto jobs. one can't pinpoint whether this is nafta or more cars made by south korea or whatever. however, here's the interesting part. mexico has band -- would they have gained them if there was not a nafta? it's unclear. 15,000 jobs are year are said to be lost by nafta. we lost manufacturing jobs to lower wage companies. those goods get imported into the united states and we pay less for them at stores look costco or wherever we're buying them. we have l

campaign trail was to repeal nafta, is their president that this7m campaign trail was to repeal nafta, is their president that this? it is possible. a president can't unilaterally withdraw from a trade agreement and all that remains is whatever was permitted by congress which in the case of nafta is a very small part of the problematic provisions of jared. he small part of the problematic provisions ofjared. he could do it. it has not been done before but the reason why it seems so urgent is that just reason why it seems so urgent is thatjust under one government programmes that are over 900,000 american workers certified by the government as having lost theirjobs to nafta trade. and in the context of getting the model of trade right nafta is a well known hot target. of getting the model of trade right nafta is a well known hot targetm sounds like you agree with trump that america has lostjobs to mexico because of nafta. there is no doubt about it. we went from having a combined trade deficit with mexico and canada of about $9 billion before nafta went to a fact to the last full year

we will start some negotiations having to do with nafta. anybody ever hear of nafta? i ran a campaign somewhat based on nafta. we will start renegotiating on nafta, on immigration and on security at the border, and mexico has been terrific. actually terrific. the president has been really very amazing. i think we will have a very good result from mexico for the united states, for everybody involved. it's very, very important. and speaking of important, you are very important because with you and all of the people in this room, we are going to do some great things over the next eight years. [applause] president trump: great group. this is a great group of people. and if they are not, i will let you know about it. this is the bad news. i will let you know if they are not doing the job, ok? i will praise them if they are doing it and i will let you know if they don't. they will do a fantastic job. i am so proud and i know them so well. each and every one of you should be extremely proud. give yourselves a round of applause. [applause] president trump: come on. give yours

that wasn't the purpose of nafta. people thought we would be trading, and that's not what they're doing. they're basically closing down factories and moving them down there. we've had that with mr. coffey, with the oral b, with square d. i could go through a hundred companies that have closed down that have moved down there and just basically make the same product across the border. maria: right. >> that wasn't the purpose of nafta, so we've got to change that, and i'm very encouraged by the president saying let's renegotiate it, and i will back him all the way. if he needs any help, i'll go be with him. maria: so you're happy he canceled that meeting, i guess. >> well, the meeting is the meeting about the wall. i don't want to get into the wall, but that is a whole other issue. the issue of renegotiating nafta is key, we've got to do that, and i encourage him. maria: james hoffa, thanks so much. >> thank you. maria: we'll see you soon, sir. >>> let's take a look at what's coming up on "media buzz." hey, howie. >> goo

he can't do that under nafta. he has to do something about nafta in order to impose that border tax. nafta currently allows the united states to export without duties to canada and mexico and the u.s. exported $270 billion worth of good and services to mexico in 2015. that's the latest year for which we have full figures. of the stuff made in the united states that mexico buys, heavy machinery, vehicles, petroleum and a lot of raeg rahal products. so and it is important to remember that while we talk a lot about china, canada and mexico remain the largest place for u.s. exports. >> thank you very much. we'll get back to the executive actions from the president but i want to talk you to houston methodist hospital for an update on former president h.w. bush and his wife, barbara. >> he is sitting up, watching tv, waiting patiently for his favorite oyster stew for lunch. he's on oxygen, laughing and joking with the doctors. >> he still has a fair amount of coughing. we are addressing that with various breathing treat

president trump is threatening to undo nafta. oliver: this would have been particularly good for the american auto industry. signposted early on the first week that we will drop tpp and renegotiate nafta. are broad changes in trade policy. we need to make it decision between tpp and nafta. tpp is a free-trade agreement. nafta has become a common market. it is not just about this. it is in 20 years. it is not about lowering tariffs. parents have been so low for so long. we have had such a common understanding of trade with mexico and the united states and canada that we are talking about a common market. as they are discovering and the u.k., leaving that common market is really difficult. there are a lot of consistent production techniques. consistent standards, rules, most importantly supply chains that you can rip apart. you can't get rid of that by dropping a tariff barrier. oliver: i wanted to know what the similarities and differences are about pulling out of nafta and what is happening with brazen. -- brexit. >> one thing th

he is planning talks to overhaul the north american free trade agreement trump spoke about nafta at a swearing in ceremony at the white house. >> we're going to start negotiations having to do with naftta. we'll have a good result for mexico and the united states and everybody involved. it's very important. >> trump says his team is going to do in his words some great things over the next 8 years. he is urging members of the administration to devote themselves to the national good and not their own interests. >> the nafta talks could have big implications for firms in their country too. the chairman of the japan business federation says they may need to rethink their strategy. >> japanesese firms shohould ke close eye on the nafta negotiatatns. >> the uniteted states should maintain a free and open trade system. up until the fall we'll continue to press for a good working relationship. >> nafta isn't the only trade deal. he's vowing to pull the u.s. out of the transpacific partnership free trade agreement. japanese l leaders are h hoping change his mind. >> we'll keep a close eye on t

people are gassed, saying nafta, you can't touch nafta. why is it a bad idea? it's a 20-year-old deal. why not renegotiate? >> when you look at what he's taking on nafta, the issue he faces, if we're going to withdraw, renegotiate with both canada and mexico, we're talking about a multiyear effort. and i think the think thing that trump's team, when we look at manufacturing to mexico, that is cheaper labor down there, of course. it also brings cheaper cars into the u.s. what you would see if we with drew, you're likely to see a loss of american jobs in tms ofhe supply of parts. but most importantly for his promise to t middle and working class, cars are likely to get more expensive. hundreds of thousands of cars made in mexico. they're shipped around the world. for example, you look at audi and the q5. that is based in mexico, produced in mexico and shipped to europe, shipped to america. to really change that and look at companies that have to think about their investment decisions in mexico, it's likely they won't bring their facilities to the united states. w

carol: president trump is threatening to undo nafta. oliver: the trade o agreement has been good for the auto industry. signposted we would drop teepee and renegotiate nafta, so those are changes in trade policy. we need to make a distinction between tpp and nafta. a free-trade agreement. nafta has become a common market. it took 20 years, so it's not just about lowering tariffs. tariffs have been so low for so long and we have had such an understanding of trade between mexico, the united states, and canada, we are talking about a common market similar to the european union. as they are discovering in the u.k., leaving that common market is really difficult. there are standards, consistent rules, and most importantly, consistent supply chains that you can't just rip apart by dropping tariff barriers. oliver: i wanted to know sort of what the similarities and differences are here with us pulling out of nafta and what's happening with brexit. thingsbrexit, one of the they hated the most was the european court of justice. they did not want

i think it was nafta. it was not nafta. it was also the housing crisis, because if you are not building houses, you do not need a carpenter. they almost wiped shot out. show started out as a family owned business. billionairet to the -- i cannot recall his name right now. a famous billionaire. het: when donald trump says wants to renegotiate nafta, talks about possibly pulling out of nafta if he wants, you support the president in that? i cannot, in my soul, in my heart of hearts, support someone like donald trump, with the history this land has had from the very beginning. i am black. i am a black man. with his record of dealing with black people, it is a lot of rhetoric. there is a lot of talk. louder actions speak than his words do. , heeven during the election would start all this rhetoric about what we are going to do to help the black communities and all this. we just had a black man in the white house, and it wasn't a lot that he could do, because racism is embedded real good in local government. local governments ha

anybody ever hear of nafta? i ran a campaign somewhat based on nafta. but we're going to start renegotiating on nafta, on immigration and on security at the border. >> that was another big campaign promise, he hit hard in hi inaugural address, put america first, that is music to the ears of many, many people who lost their good paying manufacturing jobs. let's talk about all of this with scott polly, who's president of the alliance of american manufacturing. just diving into nafta, he said he's going to meet with justin trudeau and president of mexico. >> if you just repealed nafta, there would be a big down side to it, just like repealing the affordable care act would have devastating consequences. there is a place to renegotiate nafta, it was negotiated more than 20 years ago in an era where you didn't have smart phones or digital technology or anything like that, and also in an era where these folks weren't facing competition from china or asia. in the heartland in particular, in and a half tax is akin to a curse word, people do not like it, they res

without changing nafta, instead of a border tax, you have to change nafta. it's about no border tax. >> right. the issue of the border tax is certainly one we're going to be dealing with for some time. and a concern, i think, for investors in certain companies. >> oh, yeah. >> i think you have to view everything sort of in a broader context. you're going to give tax reform to a lot of corporations. their margins are going to get better. if they are importing a lot and are going to be victim to the border tax, and either have to raise price or take the margin away because they don't want to raise the price completely, it'll be a lot of give and take. it'll be interesting to figure our way through the things when and if they happen. >> this is something i'm concerned about. nafta was joint republican and democrat. s it is not like the republicans are necessarily now going to turn on nafta. nafta is -- if you are a business republican, and if you have been susceptible to lobbying, trump can tweet all he wants. >> gm made their response quickly and made it very

nafta makes the u.s. one of the most attractive manufacturing locations in the world because of value-added productivity of both canada and mexico in one integrated north american supply chain. if we could complete freed trade agreements with asia and europe the u.s. could, in fact, become the undisputed champion in manufacturing once again. withdrawal from nafta would have massive repercussions, thousands of u.s. companies would have to ship their supply chains at great cost and disruption to their businesses. americans should understand that pulling out of nafta does not ensure that production in mexico would come back to the united states. in fact, it's possible that many u.s. manufacturers would either find suppliers in other countries or use mexican production to export to other markets because mexico has 40 plus free trade agreements, double our level. we've talked about tpp and nafta, but we haven't mentioned the huge economy that is part of neither of those agreements, china. u.s./china relationsh

everybody have hear of nafta? i ran a campaign somewhat based on nafta. but we are going to start renegotiating on nafta and immigration, and on security at the border. >> that was another big campaign promise that he hit hard in his inaugural address, put america first. that's music to the ears of many, many people who have lost their good-paying u.s. manufacturing jobs. let's talk about all of this with the president of the alliance of american manufacturing. nice to have you with us. >> poppy, good to be with you. >> just diving into nafta, he said he will meet with trudeau and enrique pena nieto of mexico and renegotiate this, and the u.s. chamber of commerce says 6 million jobs are dependant on trade with mexico and it matters with u.s. jobs if you scrap it. >> if you just repealed nafta there would be a downside to it, just like repealing obamacare will, and nafta was negotiated more than 20 years ago when we didn't have cell phones or technology like that, and in an era where these companies were not facing competition from asia and china, and in t

nafta has become a common market. right? it has been 20 years, so it's not just about lowering tariffs. tariffs have been so low for so long and we have had such an understanding of trade between mexico, the united states, and canada, we are talking about a common market similar to the european union. as they are discovering in the u.k., leaving that common market is really difficult. there are standards, consistent rules, and most importantly, consistent supply chains that you can't just rip apart by dropping tariff barriers. oliver: i wanted to know sort of what the similarities and differences are here with us pulling out of nafta and what's happening with brexit. >> so, brexit, one of the things they hated the most was the european court of justice. they did not want their parliament to be subservient to some other body. they wanted to be sovereign. the reason the ecj exists is to deal with trade disagreements. right? it is not just about tariffs. sometimes the french will say -- which means they don't want to buy german

nafta makes the u.s. one of the most attractive manufacturing locations in the world because of value added productivity of both canada and mexico in one integrated north american supply chain. if we could complete free trade agreements with asia and europe, the u.s. could, in fact, become the undisputed champion in manufacturing once again. withdrawal from nafta would have massive repercussions. thousands of u.s. companies would have to ship their supply chains at great cost and disruption to their businesses. americans should understand that pulling out of nafta does not ensure that production in mexico would come back to the united states. in fact, it's possible that many

nafta. as a senator, what steps will you make to work with the trump administration to abolish nafta? >> well, as i just told you, we have lost, tianna, millions, millions. it's not only a debt. we have lost millions of decent paying jobs. one of the reasons that the middle class in this country is shrinking is that there was a time when people can go out, get a job in a factory, if they had a decent union, they could earn good wages and benefits, and as a result of these disastrous trade agreements by corporate america, american work earns with t -- workers with total contempt were thrown out on the street. so yes, i will work with mr. trump, i will work with anybody who wants to work together to develop a trade policy which tells corporate america they have to look beyond their glide. you kn -- greed. they have to look at the needs of the american people. i want to see us rebuild our manufacturing sector, automation is also having an impact, but i don't think you can be a great nation if y

by the way is illegal under nafta. can't do that. it's supposed to be free trade between canada, mexico and the united states so his back is really -- he can't probably make too many concessions now. i think president trump has negotiated and negotiated against himself and we have little leverage now. >> i want to talk more about nafta and policy towards mexico but first play this. president spoke about his policies regarding mexico and canceled meetings today at republican retreat in philadelphia. >> put in place the first steps in immigration plan ordering immediate construction of the border wall, putting end to catch and release, expediting the removal of criminal -- this is so important to me. from day one i've said it. and i mean immediate removal of criminal aliens -- going to be gone. fast. i will not allow the taxpayers or citizens of the united states to pay the cost of this defective transaction nafta, one that should have been renegotiated many years ago except that the politicians were too preoccupied to d

my position is we shouldn't open nafta. if the us wants to open it then it is better to go out, that is my point of view because the position i heard from trump and we heard from the new administration is that mexico is taking advantage of the us so in those terms it is not good to go into any negotiation. we should go to the wto, the us should recognise that about 14 million employments are generated on that side of the border because of nafta, that we are trading in one year $500 billion that benefits both countries so in the position i have heard, donald trump we should not going to negotiation, we should go to the wto and diversify to europe or asia. are you effectively saying that the american people and the white house don't really understand the kind of contribution that mexico makes to the american economy and to american jobs? and that a failure to understand how important mexico is to american jobs and american workers could cause a huge problem? just for instance, just as an example, arizona, estate on the border

nafta. as a senator, what steps will you take to work with the trump administration to abolish nafta? >> well, as i just told you, we have lost, tianna, millions, millions, it's not only your dad. we have lost millions of decent-paying jobs. one of the reasons that the middle class in this country is shrinking is there was a time when people can go out, get a job at a factory. if they had a decent union they could earn good wages and good benefits. and as a result of these disastrous trade agreements written by corporate america americans with total contempt were thrown out. so yes,ly work with mr. trump, i will work with anybody who wants to work together to develop a trade policy, which tells corporate america, they have to look beyond their greed. you know, they got to look at the need the of the american people. i want to see us rebuild our manufacturing sector. the world has changed. automation is also having an impact, but i don't think you can be a great nation if you're not producing

as far as nafta is concerned, we do need stronger labor and environmental protections in nafta. and also there are a lot of small things that can be done. nafta, it's a little late in the game. because a lot of companies that went to mexico because of nafta have left mexico and are now in southeast asia. but what really worries me, it's not just isolationism, it is donald trump's assumption that the world is basically a zero-sum gain, in which we win to the extent that everybody -- somebody else loses. that's donald trump's approach to life in general, i as opposed to. but that's not the way the world economy functions, and it's also not the way world politics functions. his approach to europe, being indifferent to the european union, saying that nafta is obsolete, telling everybody that america comes first. and you have to kowtow to us, assumes that we do not depend upon the prosperity of other nations in the world and that is a very dangerous proposition. >> jeffrey, is that a dangerous proposition? >> well, i just think the secretary has respectfully misrepresented this. one

in my state of new mexico, border states, nafta has been very good. there are a lot of nafta businesses created because of that pact that was passed years ago. look, these issues need to be negotiated in a diplomatic way. with finance ministers, with secretary of states. we don't even have any of our cabinet members in national security except the national security adviser. but we don't have the trade negotiator, commerce secretary, secretary of state. there's got to be a lot of preparation instead of the president sending tweets and sending executive orders hastily arranged and then backing off. i think he's backed off on this 20% import fee because it's illegal. you can't do it under nafta. the president needs to be prepared, needs to learn foreign policy. you can't negotiate a business deal, the art of the deal, and be a president and protect america's national security -- it's totally different. he's got to start being the art of the deal reality negotiator. he's president of the united states. i want him to succeed. but it's making it very hard.

>> well, for one, he might say we're not going to renegotiate nafta, in fact we'll get out of nafta. that is going to hurt the u.s. he might also say, well, all right, president trump, we're going to stop cooperating on drug smuggling at the border. okay, president trump, we're going to stop the migration issue, ways that we can detain people at the border so they don't come into the u.s. we can stop fighting the cartels together the way we have with a number of joint military operations. i mean, they've got leverage over us -- >> governor? >> yeah. >> we're showing people the mexican peso. it's gotten hammered for months now, ever since donald trump started to rise in the polls before the election. we've seen the central bank have to step in and spend billions to try to defend it. not working. they've raised interest rates, which then slows down their economy. in some ways it seems -- and by the way, they've already lost jobs, right? and american ceos are thinking twice about doing anything down in mexico. doesn't it seem like mexico is already paying? >> yes, they're already paying

nafta is a big deal for me. what i heard the president say through his press secretary was, i'm willing to negotiate within the confines of the agreement with canada and mexico. if i don't like that agreement, i'm tearing that up, too. so, he's looking at leverage. our country should be working together. let me give you an example. energy independence says you nokan da is one of the rich est countries on earth in natural resources. that excel pipeline we tried to build with obama cost shareholders up in canada $3.2 billion of failed initiatives for eight years. basically we got screwed around. i'm not happy about that. but i'd be happy to sit down with trump and renegotiate because i know he wants ownership and royalties. but that pipeline should allow the energy that's going to flow through it which gives security to every american and we're partners on this thing. we don't want to pay taxes on that. that should be a tax-free pipeline because it's a national interest to supply north american with energy. that's

nafta, it's a little late in the game. because a lot of companies that went to mexico because of nafta have left mexico and now heading to southeast asia. but what really worries me, it's not just isolationism, it is donald trump's assumption that the world is basically a zero-sum gain, in which we win to the extent that everybody else loses. that is not the way the world economy functions or the way world politics functions, his view, being different according to the european union, saying that nafta is obsolete, telling everybody that america comes first and you have to really cowtow to us assumes we do not depend upon the prosperity of other nations in the world and that is a very dangerous proposition. >> jeffrey, is that a dangerous proposition? >> well, i just think the secretary has respectfully misrepresented this. one of the interesting things here, in the last few days there were all of these calls for gee, we should be united. let's be clear, secretary clinton separated herself from tpp and agreed with donald tr

as a senator, what steps will you take to abolish nafta? >> we have lost millions, millions, not only a debt. we have lost millions of decent paying jobs. one of the reasons that the middle class in this country is shrinking is that there was a time when people could go out, get a job at a factory, if they had a decent union, they could earn good wages and benefits. and as a result of these disastrous trade agreements, again, written by corporate workers, many of these workers are working for 50 or 60% of what they used to make. so yes, i will work with anybody who wants to work together to develop a trade policy which tells corporate america they have to look beyond their greed. you know, they have to look at the needs of the american people. i want to see us rebuild our manufacturing sector, great decent jobs, the world has changed. automated energy has had an impact, but you can't be a great nation if you are not producing what we consume. we can't get everything from china or mexico. occasionally you have to get a product made in the un

nafta has been a terrible deal. a total disaster for the united states from its inception, costing us as much as $60 billion a year with mexico alone in trade deficits. you say who negotiates these deals? not to mention millions of dollars and thousands and thousands of factoriies and plants closing down all over our country. on top of that are the trillions of dollars the u.s. taxpayers have spent to pay the cost of illegal immigration. much of it is then been sent back and much of it goes back to other countries. and oftentimes because they don't respect us, the other countries will not accept the criminals that we send back to them that are illegally in our country. i promise you they will start accepting them again, quickly. we're not going to have them any longer. i will not allow the taxpayers or the citizens of the united states to pay the cost of this defective transaction, nafta. one that should have been renegotiated many years ago, except that the politicians were too preoccupied to do so. these people ar

all this debate about nafta and rene renegeuation of nafta, we don't talk about what it will mean for workers. >> i think donald trump could be the new champion of labor unions, and union workers. we saw it with the keystone pipeline, which they like and he just signed that executive order with tpp, they don't like tpp, neither does bernie sanders, neither does donald trump. so i think there could be a realignment and a shift where donald trump wins over the working class white voters but i say this, the one thing about the wall, i don't love the symbolic notion of building a wall. i hope if we actually secure the border which is something we should be able to do as a solve earn nation, if we could secure the border, then i would hope we would have compassion towards dreamers, and toward coming up with a way to compassionately deal with people here. i don't think that will be the poll l political will on the right. >> two-thirds of the people -- the undocumented people have lived here a decade. that is part of our society. the wall will keep people out and deport people is unamerican.

right now is the opposite donald trump coming to this retreat and blasting not just mexico but also nafta saying the trade deal was quote a terrible trade deal. also about the relationship between the new president and our one of our biggest trading partners to the south of us, earlier today the republican leadership hadn't came and addressed reporters, i asked them specifically about donald trump's growing frud wieud witho and whether they are concerned whether donald trump should tone down his rhetoric. >> i don't have any advice for the president, we are moving ahead as the speaker pointed out with roughly. >> dwe12 to 15. >> yeah, 12 to $15 billion and we intend to address with the -- ourselves and the president can deal with the president an that issue and other issues. >> reporter: and then i asked the follow-up are you concerned about the relationship between the u.s. and mexico and he said quote i think we'll be fine. interestfully enough of putting that price tag of 12 billion to $15 billion for the wall. and something that donald trump came in earlier an said that the u.s. will

first. >> you go, we are out of nafta. >> doesn't work that way. it's not like with the things he's done, the low-hanging fruit he's been having fun with. he can get out of the pacific trade agreement because we are not in it yet. nafta has a treaty that's been approved by the united states senate. he can't just say were not going to have nafta. >> bob, will talk about the wall. >> well, the mexicans have about as much chance of paying for that wall as greg does of not having a glass of wine. it's not going to happen. what's going to happen is the american taxpayers are paying for trump's wall which is a ridiculous concept anyway. he is taking money out of parts of the budget to start building something. >> but the wall come in 2006, there was language passed in legislation that said a wall could be built and there were certain sections of it and some of it has been done. this is the day that his supporters really wanted. >> he should have combined all the actions into one think he should get the syrian refugees to build a wall around chicago. do i

nafta is a big deal for me. what i heard the president say was i'm willing to negotiate within the confines of the agreement with canada and mexico, if i don't like that outcome, i'm tearing up that agreement to. energy independence as you know, canada is one of the richest countries on earth in natural resources. the xl pipeline we tried to build with obama cost shareholders $3.2 billion of failed initiatives for 8 years. i'm not happy about that. i would be happy to sit down with trump and renegotiate, i know he wants ownership and royalties, that pipeline should allow the energy that's going to flow through it, which gives security to every american, and we're in partners on this thing, we don't want to pay taxes on that. it's a natural interest to supply north america with energy. that's the kind of ordeal i'm worried about. lumber, another big deal for us. military procurement, we spend billions of dollars buying weaponry. we need to keep our relationship open, and we're good for 9 million american jobs. in

particularly nafta. so i would look for his administration to take action on nafta pretty quickly. as ben process. there is a big disagreement between house republicans and the trump administration right now on the border adjustability tax, which is the republicans' plan to tax imports. and that would raise prices on consumers. >> just as president trump said hey, look, that's a little bit complicated, i just want something that's super simple when it comes to equalizing our trade wars with other nations, but is any cut in free trade likely to affect what consumers pay for? a tv. you go down to a big box store and you want to buy a tv. are you going to pay more for it? >> yes, we're going to pay more for it if we do get into a trade war with some of these countries president trump has talked about being unfair to the u.s. so if he is going to put tariffs on chinese imports, on mexican imports, that could lead in the short term certainly to higher prices for electronic goods, also for cars. there are a lot of u.s. manufacturers who make some of the because the margins are so thin on

i didn't think he could get to the he renegotiates of nafta. but he issued the executive order to start the process and sounds like the leaders in canada and mexico are open to starting a dialogue. he's following through on his word again. that is very important, especially a president that is under assault from the left that doesn't look like they're going to let up. so he needs to get a lot done oh. >> neil: not everybody on the left. the unions were applauding him and the move. john mccain was among those worried about it. i'm just wondering in this new environment whether he is -- he's certainly fulfilling what he said he would do in the race, but he's not easily type cast as a straight republican on these type of issues, right? >> there's some trade protectionism threaded into these part of the negotiations going forward. >> neil: does that worry you? >> it does to a degree. i want to see what it is. any renegotiated treaty has to come before congress, whether it's nafta or the tpp. we're just getting to the place where we can start to hav

lou: they are in poverty since nafta since 1973. all of that money has gone to a corrupt government and corrupt country. and we have -- our business leadership has much to account for in all of this, and i think donald trump will hold them accountable. thank you both. we thank you for being with us. please with with us. thanks for being with us tonight. good night from new york. ken there are donald trump is meeting with republican leaders. but not before making a ton of news on everything from immigration to trade. is the united nations a relic of the old world order? donald trump seems to think so. and what is the american dream? owning a home or having kids or maybe a sweet trans am. a fox news poll and what makes america happy. drive a co-pilot. time to make this baby fly. kennedy: she is a back.

also looking at nafta. some officials looking to exit nafta. better off negotiating with president trump. mexico indicated in november they could pull out of nafta. what is then replacing these? mexico is exporting 80% of its exports to the us. 1—point fall billion a day crossing the border which is not insignificant. it raises lots of questions for companies that are serving the us markets and us firms are doing the same so a lot of trade going back and forward, components, finished products sol going back and forward, components, finished products so i guess pulling out would definitely impact both countries and economies. have you ever seen any evidence that illegal immigrants and the fx they have had on the country they have entered illegally. a lot of people say the american taxpayer pay too much to make sure that illegal immigrants are policed and are able to live in the country and just exist here. i have not seen those figures. 2014, figures show 11.1 million unregistered immigrants in the us, 54% from mexico sir there is an issue but

he'll pull out of the tpp agreement probably right away, renegotiate nafta, reopen nafta. the bigger ticket stuff that's really going to impact consumers, everyday americans, that's going to take a longer period of time. the tax reform package, particularly on corporate taxes, some disagreements between house republicans and trump on that. eventually, that could create faster economic growth. it could be more corporate profits if their taxes are lower. that probably means higher stock prices. it would be good for people's portfolios and retirement accounts. it could also mean inflation, though, and the trade stuff could mean in the short term higher prices for some consumer products. so i would look to that. >> and sarah, when we're talking about what he's able to accomplish given what he wants to accomplish, do you think that some of this is going to have to be done through executive action or is he going to have the full support from congress? >> a lot of what he wants to do early will have to be done through executive action and quite a bit of trade can be done through

he will pull out of the tpp agreement right away, renegotiate nafta, reopen nafta. the bigger ticket stuff that will impact everyday americans, that will take a longer period of time. corporate taxes, disagreements between house republicans and trump on that. eventually that could create faster economic growth. it could mean more corporate profits if taxes are lower. that means higher stock prices. it will be good for retirement accounts. it could mean inflation. and the trade stuff could mean in the short-term higher prices for consumer products. look to that. >> when we talk about what he is able to accomplish, do you think some of this is going to have to be done through executive action, or is he going to have full support from congress? >> a lot of what he wants to do early will have to be done through executive action. and quite a bit of trade can be done through executive action, particularly 1/2 attachment so i would look for his administration to take action on nafta pretty quickly. as ben said on the tax policy, it is going to be a longer process. there is

people voted for him, and renegotiating nafta as well. >> let me talk about the wall and nafta. they're separate but connected. the first thing is the wall is trying to do with a wall that does not exist. this is data from the pew center. mexican immigration has been declining significantly. it was 5.8 million unauthorized immigrants in the country compared to 6 .4 million in 2009 n. so this idea of building a wall is really about the politics that the vision and about as you point out a campaign promise that donald trump made in order to actually appeal to people who are afraid and fearful of their jobs and what he did was successfully in some way, politically at least in the midwest was he targeted mexicans as the enemy. that was all about politics. as a practical matter, it doesn't address a real problem. on nafta, and one of the things that tom didn't mention in his analysis was if all these jobs are going to come back to the u.s., and that's a big question. one of the things they're not talking about is are they union jobs or high wage jobs in what all trade agreements have

we made nafta a center part of our economic growth. texas is spectacularly the largest trading state in our country, the biggest beneficiary, almost 270,000 texans owe their livelihoods just to our trade with nafta alone. so in our part of the world there are real concerns about any attempt to cut off that free flow of people, of commerce, helped frankly benefit both of our economies. liz: okay. you have got workers who would say it doesn't benefit us. he amassed two days ago some of the union representatives who were absolutely thrilled to hear that he is going to do, or he is going to demand things that actually democrats demanded back in 2015. and that was use u.s. steel, use u.s. steel on things like keystone if it was to go through. republicans pushed back on that in 2015. it is a whole new world, almost topsy-turvy, looks like he has got everybody on their toes. >> you know, look, trade is an easy whipping boy, liz, believe me, i understand, when i came into office, in fairness, president obama had made, you know, certain pledges

in part because the automakers want to see what happens with nafta? why commit a couple billion dollars to build a plant in ohio or michigan or wherever in the united states, when you're not sure what will happen with nafta. you have to decide, is it nafta in mexico where things are changing? the taxes will be coming with import tax? or canada? both? for the automakers, they have to see when hand they're dealt with nafta before they make a commitment. >> there's the question of the third party manufacturers in the auto industry cox we see more of them? because they're worried about higher costs. might help lower their costs? >> yes. particularly if there is a niche model. a compact car they're building in mexico. what they might do is they might say to an independent contractor, we still want that car. we want it under our particular brand. we'll have you build it. that way, it is built in the united states for domestic industry industry. >> phil, thank you as always. >>> as we reported earlier, infrastructure stocks, specifically materials and indust