HAVE A GREAT WEEKEND.

I KNOW I WILL.

>> Bret: WELCOME TO

WASHINGTON.

I'M BRET BAIER.

TONIGHT, SERIOUS COUNTER

PUNCHING TAKING RIGHT NOW AND

WHAT'S BECOME A FULL-FLEDGED

TRADE WAR WITH U.S. AND

CHINA.

WITHIN THE PAST HOUR

PRESIDENT TRUMP HAS ANNOUNCED

ANOTHER MAJOR TARIFF INCREASE ON

MORE THAN A HALF TRILLION

DOLLARS OF CHINESE IMPORTS.

HE TWEETS, STARTING ON

OCTOBER 1ST, THE $250 BILLION OF

GOODS AND PRODUCTS FROM CHINA

CURRENTLY BEING TAXED AT 25%

WILL BE TAXED AT 30%.

ADDITIONALLY, THE REMAINING

$300 BILLION OF GOODS AND

PRODUCTS IN CHINA BEING TAXED

FROM SEPTEMBER 1ST AT 10% WILL

NOW BE TAXED AT 15% ENDING WITH

THANK YOU TO YOUR ATTENTION FOR

THIS MATTER.

THIS COMES THIS MORNING WORRIED

THAT BEIJING HIT THE U.S. WAS

$75 BILLION WORTH OF NEW TARIFF

TARIFFS.

THE PRESIDENT RESPONDED BY

URGING AMERICAN FIRMS LEAVE THEM

A WORLD'S MOST POPULOUS COUNTRY.

THAT EARLIER MESSAGE SENT THE

MARKETS REELING.

THE DOW PLUMMETING TODAY 623

POINTS.

THE S&P 500 LOST 76.

THE NASDAQ PLUNGED 240.

FOR THE WEEK, THE DOW LOST ONE

PERCENTAGE POINT.

THE SMP DROP TO 1.5.

THE NASDAQ LOST A LITTLE LESS

THAN TWO.

TODAY'S EVENTS PUT AN

EXCLAMATION POINTS TO THE

FEDERAL RESERVE'S COMMENTS, THE

TRADE SITUATION IS COMPLETING

HIS ABILITY TO DEAL WITH ONE OF

PRESIDENT TRUMP'S FAVORITE

TOPICS, INTEREST RATES.

CORRESPONDENT RICH ADS AND

STARTS US OFF TONIGHT A BUSY DAY

ON THE NORTH LOT OF THE

WHITE HOUSE.

>> THE PRESIDENT PROMISES TO

RESPOND AND HERE IT IS.

ANOTHER ESCALATION IN THIS TRADE

FIGHT BETWEEN UNITED STATES AND

CHINA.

THE PRESIDENT SAYS HE MET WITH

HIS TRADE ADVISORS TODAY, THE

RESULT IS THIS AND THAT MEANS

ANNOUNCEMENT AND THE GLOBAL

RELATION BETWEEN THE TWO

COUNTRIES ONLY GETS DOMINIK

COUNTRIES ONLY GETS DOMINIS

COUNTRIES ONLY GETS DOMINIT

COUNTRIES ONLY GETS DOMINID

COUNTRIES ONLY GETS DOMINI

TODAY.

IF YOU SAW PRESIDENT TRUMP'S

TWITTER FEED TODAY, YOU KNOW THE

PRESIDENT HAS HAD ENOUGH WITH

CHINA.

A SERIES OF TWEETS, WE DON'T

NEED CHINA AND WOULD BE FAR

BETTER OFF WITHOUT THEM.

SETTING OFF AN INITIAL MARKET

DROP, AND THE PRESIDENT OF THE

UNITED STATES.

TRUMP SAYS AMERICAN COMPANIES

ARE HEREBY ORDERED TO

IMMEDIATELY START LOOKING FOR AN

ALTERNATIVE TO CHINA AND TRUMP

TWEETED IN ORDER THAT ALL

CARRIERS INCLUDING FEDEX,

AMAZON, UPS, AND THE POST OFFICE

COMMIT TO SEARCH FOR AND REFUSE

ALL DELIVERIES SENT FROM CHINA

OR ANYWHERE ELSE.

UPS AND FEDEX RESPONDED SAYING

THAT THEY WORK WITH AUTHORITIES

AND FOLLOW LAWS AND REGULATIONS

TO INTERCEPT ILLEGAL SHIPMENTS.

WHITE HOUSE TRADE ADVISOR PETER

NAVARRO DEFENDED THE

ADMINISTRATION'S STANCE.

>> WE KNOW THEY ARE KILLING

AMERICANS OFFENSE AND ALL.

WE KNOW THEY MANIPULATE THEIR

CURRENCY.

WHEN AMERICANS UNDERSTAND THAT,

WHEN CHINA TRIES TO BULLY US,

THAT ONLY STRENGTHENS OUR

RESOLVE.

>> ADMINISTRATION OFFICIALS

DESCRIBED CHINA AS THE

UNITED STATES' MOST SIGNIFICANT

CHALLENGE IN ADVERSARY.

DESPITE THAT, THE PRESIDENT

ASKED, WHO IS OUR BIGGEST ENEMY,

JAY POWELL OR CHAIRMAN XI?

TRUMP CLAIMS THEY ARE

RESTRICTING GROWTH.

>> DO NOT PLAY CHECKERS IN HS

WORLD BUT CENTRAL BANKING AROUND

THE WORLD IS A CHESS MATCH.

>> SPEAKING BEFORE A CONFERENCE

IN WYOMING, POWELL THREW IT BACK

TO THE PRESIDENT, SAYING

UNCERTAINTY AROUND TRADE IS

PLAYING A ROLE IN THE ECONOMIC

SLOW DOWN AND, WHILE MONETARY

POLICY IS A POWERFUL TOOL THAT

SUPPORTS CONSUMER SPENDING,

BUSINESS INVESTMENT, PUBLIC

CONFIDENCE, IT CANNOT PROVIDE A

SETTLED RULE BOOKED FOR

INTERNATIONAL TRADE.

EVEN AS THE MARKETS TANKED, THE

DOW JONES INDUSTRIAL AVERAGE

SPENDING THE DAY HUNDREDS OF

POINTS IN A NEGATIVE, THE

PRESIDENT KEPT WEEDING EVEN

JOKED, THE DOW IS DOWN 573

POINTS, ON THE NEWS THAT

REPRESENTATIVE SETH MOULTON,

WHOEVER THAT MAY BE, HAS DROPPED

OUT OF THE 2020 RACE.

THE WHITE HOUSE AND SET TRADE

NEGOTIATIONS ARE SCHEDULED TO

RESUME NEXT MONTH WITH CHINA.

AS FOR THE PRESIDENT ORDERING

COMPANIES TO DISENGAGE WITH

CHINA, THE WHITE HOUSE HAS

OFFERED NO CLARITY ON WHAT

AUTHORITY THE PRESIDENT OF THE

UNITED STATES HAS TWO COMPELLING