NEW: Canadian leader apologizes, walks back electricity tariff after Trump threat

let's go straight to Lucas Tomlinson with more on those tariffs imposed while we were all sleeping good morning Lucas well good early morning Carly and Todd it's official the tariffs on All Steel and Aluminum Products go into effect today it's a 25% tariff for tax the Trump Administration says will create more jobs at home the European Union has announced retaliatory measures president Trump says these tariffs are just the beginning and could increase they don't want to pay 25% or whatever it may be it may go up high maybe go up higher look the higher it

goes the more likely it is they're going to build and ultimately the biggest win is not the Tariff that's a big win that's a lot of money but the biggest win is if they move into our country and produce jobs that's a bigger win than the tariffs themselves Trump's Commerce Secretary Howard lutnick will meet with Ontario Premier Doug Ford tomorrow to discuss a new Trade Agreement the meeting comes after Ford apologize to the American people after suspending a 25% tax on electricity export to the US after Trump threatened additional tariffs on Canadian aluminum and steel

here's Ford and lutnick head of their meeting I thought this was the right decision they understand how serious we are we have both agreed let cooler heads prevail we need to sit down and move this forward when you're negotiating with someone and they're not paying attention and they're disagreeing the president who's the best dealmaker ever to sit in that chair is going to say here's my response and then all of a sudden shockingly they respond now today president Trump will welcome Ireland's primee minister at the White House today he's the first European leader to visit

the white house since Ukraine's president visited the Oval Office now the Irish government has been a fierce critic of Israel and led the international criminal court case against Israeli Prime Minister Benjamin Netanyahu leading the Israeli government to close its emcy in Dublin guys so Carly maybe keep that body language expert around for this meeting the off it could be very beneficial Lucas Tomlin in live for us in Washington Lucas thank you so much with that let's bring in Fox News columnist and contributor Liz Peak Liz all these foreign leaders talk tough they saber rattle wave

their fists in the air say we're going to come after America but then they cave to Trump in the end sometimes like mere hours after they've stuck their chest out and gotten all gotten all Brave isn't that proof that these Trump's tariff will work to achieve his foreign policy goals I what it really is proof of is that we have an incredibly unbalanced trade situation in other words we are in we have a huge import trade deficit have been in that situation for a very long time and that is one of the things that Trump

is hoping to rectify also we're paying what uh we're getting 90 billion dollar a year in tariffs from other countries we're paying hundreds of billions of dollars in tariffs to other countries so he wants to level the playing field I I think that is a big part of it and I think he's going to continue for that reason uh the second thing is he wants the revenues he wants to lower taxes uh and and spur for manufacturing coming home and here's the thing that really nobody's talking about in the past this would have been an

impossible Quest right manufacturing's gone down for 22 months in a row up until Trump was elected and then it began to inch higher but why have we lost so many manufacturing jobs partly because our labor rates are so high compared to Mexico compared to China I mean there's a reason American corporations sent jobs overseas it's not just tariffs which are certainly not help uh but now what is what's happening with AI and this tremendous explosion in technology we're going to be making more here in the United States at lower cost so that I think that's

a tremendously pivotal element in this argument that no one really is talking about and they should be because when you're manufacturing cars or Widgets or washing machines boy does AI help bring down the number of employees you I that's not great for workers but even so we will be adding jobs just not as many per unit of output as we used to probably so the big news overnight is the 25% tariffs that went into effect on steel and aluminum not just with Canada but across the board with all of our trading partners uh people hear

that they say that prices are going to go up what will the impact of that be it it could be as Trump has acknowledged that there will be some minor inflationary aspect of that look what he is doing is short-term pain for long-term gain and he was totally right I think think one of the most uh powerful things he said recently was we are working in this country quarter to quarter and if you ever have talked to a Chinese businessman or politician they literally do look a hundred years ahead Wall Street always says oh this

is terrible we have to have long-term view now we're taking a long-term View and they're going nuts so uh it there may be some bump up in inflation but I also think over the next year we're going to see trade deals for example we should have a trade deal with the UK there's no reason why they should be tariffing our products and we should be tariffing theirs right that seems like a layup and my guess is hopefully over the next year we're going to negotiate down some of these tariffs uh in return for better treatment

for us companies well well the usmca sorry Todd trade deal was just announced that it's going to be renegotiated it was it was scheduled to be yeah but that could lead to some stability here absolutely I mean if if we begin to for example attack the tariffs that Canada still puts even with the usmca on American Goods that should be a positive thing going forward I'm really glad you mentioned the markets and the short-term view that we now take in the United States because these CEOs are under pressure basically daily you know if the stock

dip people like oh that's CEO are they doing a good job and that has created really an unfortunate situation for the market where it's basically day trading and and you can't really have that so will the markets eventually come to realize what Trump is doing with tariffs or will the selloff continue because they just can't deal with short-term uncertainty well the selloff I think will not continue for very long because our economy is in very good shape uh corporate earnings are in very good shape look CEOs came into this year uh and as of a

month into the year they were the most confident they've been in three years why because they believe in Trump's deregulation they know he's going to work very hard and Republicans are on the hook to lower corporate taxes and I think that's in the cards but just generally speaking after four years of a Biden White House where you had this tsunami of new rules and regulations all by autopen uh coming out and impacting corporate profits uh I think this is a very welcome turnaround so look I think markets will get used to this and by the

way there's some pretty good news things out here right we may have a ceasefire in Ukraine that's got to be positive not just for our markets but for Europe I mean that's a big deal for everybody so think there are things that are coming out we'll see what the CPI looks like don't lose track of the fact that energy prices are down uh gas lean 9% versus last year that's pretty powerful so and egg prices are even coming and you know what the President also did his part to SP the economy by buying that red

Tesla outside the White House yesterday somehow when the Market's crashing I always go out and spend money I mean it's like a you know it's a terrible impulse terrible impulse but hopefully everybody does that I knew I liked you Liz thank you so much for joining us great for