First On CNBC: CNBC Transcript: National Trade Council Director Peter Navarro Speaks with CNBC’s Rick Santelli Today

WHEN: Today, Thursday, March 15, 2018

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a FIRST ON CNBC interview with National Trade Council Director Peter Navarro and CNBC's Rick Santelli on CNBC's "Squawk on the Street" (M-F 9AM – 11AM) today, Thursday, March 15th. Following are links to video from the interview on CNBC.com: https://www.cnbc.com/video/2018/03/15/peter-navarro-talks-trade-and-tariffs.html?play=1 & https://www.cnbc.com/video/2018/03/15/peter-navarro-we-can-do-tariffs-that-are-peaceful-and-will-improve-trading-system.html?play=1.

All references must be sourced to CNBC.

CARL QUINTANILLA: ALL RIGHT, WE'LL WATCH THAT CLOSELY. THANK YOU VERY MUCH, KAYLA. LET'S GET OVER TO THE CME IN CHICAGO. RICK SANTELLI, WHICH – WHO AS WE'VE BEEN TELLING YOU, HAS A VERY SPECIAL GUEST. HEY RICK.

RICK SANTELLI: HI, CARL. INDEED. I'D LIKE TO WELCOME PETER NAVARRO. PETER, THANKS FOR JOINING ME THIS MORNING.

PETER NAVARRO: AND THANKS TO CARL FOR CALLING ME SPECIAL IN SOME WAY, BUT HEY, GREAT TO SEE YOU IN VIRTUAL SPACE HERE, RICK.

SANTELLI: EXACTLY. LISTEN, LET'S START AT THE VERY BEGINNING, PETER. OKAY? WE HAVE SOME TIME HERE. THE LAST I LOOKED, THE MONTH-OVER-MONTH TRADE DEFICIT WAS CLOSE TO 57 BILLION. THAT IS THE HIGHEST MONTH-OVER-MONTH LEVEL SINCE OCTOBER OF 2008. MANY DO NOT AGREE WITH THE WAY YOU FRAME THE ISSUE THAT WE NEED TO ADDRESS UNFAIR PRACTICES IN TRADE BY TARGETING SOME OF THE DOLLAR AMOUNTS IN TRADE DEFICITS. WHY IS YOUR OPINION ON THAT DIFFERENT THAN OTHER ECONOMISTS?

NAVARRO: SURE. THE WAY I LOOK AT TRADE DEFICITS IS IT'S A REVERSE MORTGAGE ESSENTIALLY THAT THE AMERICAN PEOPLE ARE TAKING OUT. THEY SEND -- YOU KNOW, WE BUY OUR STUFF, WE SEND THE MONEY TO CHINA OR EUROPE OR WHEREVER IT IS, AND WHAT HAPPENS IS THAT MONEY COMES BACK, NOT IN THE FORM NECESSARILY OF INVESTING IN OUR FACTORIES BUT RATHER JUST BUYING UP OUR ASSETS. AND OVER TIME, THERE'S A PROBLEM THAT WARREN BUFFETT HAS ACTUALLY CALLED CONQUEST BY PURCHASE. SO THAT IF WE DO AS WE'RE DOING, WHICH IS TO RUN A TRADE DEFICIT AT ABOUT HALF A TRILLION DOLLARS A YEAR, YEAR OVER YEAR, THAT ADDS UP TO TRILLIONS AND TRILLIONS OF DOLLARS IN THE HANDS OF FOREIGNERS THAT THEY USE TO BUY UP AMERICAN -- AMERICAN FACTORIES, AMERICAN REAL ESTATE, THINGS LIKE THAT. AND THAT'S JUST NOT GOOD FOR AMERICA. IT'S NOT GOOD FOR NATIONAL SECURITY NOT GOOD FOR ECONOMIC SECURITY SO THAT'S -- AND THE PRESIDENT UNDERSTANDS THAT WE CANNOT CONTINUE TO RUN THIS REVERSE MORTGAGE SITUATION. SO WE GO INTO A SITUATION WHERE WHAT ARE WE GOING TO DO ABOUT IT. NOW RICK, YOU AND I BOTH KNOW –

SANTELLI: LET ME STOP YOU RIGHT THERE PETER. PETER LET ME STOP YOU A MINUTE.

NAVARRO: SURE.

SANTELLI: I AGREE WITH EVERYTHING YOU SAID THERE, BUT LET ME HIT YOU WITH A COUPLE ASTERISKS. MANY OF THOSE COUNTRIES THOUGH USE SOME OF THAT MONEY TO BUY OUR DEBT. THERE HAVE BEEN PERIODS OF TIME IN THE PAST POST-CRISIS WHERE THAT WAS VERY IMPORTANT, ESPECIALLY NOW WHEN WE CONSIDER WHAT THE RAMIFICATIONS MAY BE IF THERE'S LESS MONEY IN THOSE HANDS. YOUR THOUGHTS JUST ON THAT SLANT ON IT?

NAVARRO: SURE. AND WHAT YOU SAY IS KIND OF THE BRIGHT SIDE OF THE PICTURE, BUT THE DARK SIDE IS THAT MANY OF THOSE COUNTRIES ALSO BUY OUR PAPER SO THAT THEY CAN UNDERVALUE THEIR CURRENCY, WHICH IN TURN ALLOWS THEM TO SELL US EXPORTS CHEAPER, MAKES IT HARDER FOR US TO SELL EXPORTS TO THEM AND EXACERBATES OUR TRADE DEFICIT. SO, IT'S A COMPLEX QUESTION, BUT AT THE END OF THE DAY, WE HAVE TRADE DEFICITS WITH EVERY SINGLE MAJOR TRADING PARTNER WE HAVE. THE BIGGEST ONE IS CHINA, $370 BILLION IN TRADE IN 2017. EUROPE, IT'S 150 BILLION. NOW, RICK, LET ME TELL YOU THIS. FOR EVERY BILLION DOLLARS OF TRADE DEFICIT WE HAVE ACCORDING TO SOME ESTIMATES, THAT'S 6,000 JOBS WE LOSE. WE'RE ESSENTIALLY SHIPPING OUR FACTORIES OVER THERE. SO THE EUROPEAN DEFICIT ALONE IS OVER A MILLION JOBS WE DON'T HAVE IN AMERICA HERE, AND THAT'S ANOTHER REASON WHY THESE TRADE DEFICITS REALLY AREN'T WORKING FOR THE AMERICAN PEOPLE.

SANTELLI: ALL RIGHT. THAT'S A PERFECT SEGUE INTO MY NEXT ISSUE. NOW, IN MY OPINION, PEOPLE ARE MAKING THIS IN THE MEDIA THAT WE ARE ALREADY IN A HOT TRADE WAR, LIKE THE COLD WAR THAT WE HAD AFTER WORLD WAR II. I LOOK AT IT MORE AS A COLD ISSUE WITH REGARD TO TARIFFS. BUT WHAT WORRIES ME IS I AGREE WITH YOUR NUMBERS. BUT TO RESOLVE THAT ISSUE IS WHAT I'M THINKING ABOUT. THAT IF WE TAKE A CERTAIN PATH, DO WE PROVOKE ACTIVITY THAT WOULD NEGATE SOME OF THOSE POSITIVES, OR DO YOU THINK IT COULD BE DONE IN A WAY THAT WON'T TURN INTO A WARM OR HOT TRADE WAR?

NAVARRO: I THINK WE CAN OBVIOUSLY DO IT IN A WAY THAT CAN BE GOOD FOR THE AMERICAN PEOPLE AND GOOD FOR THE GLOBAL TRADING SYSTEM. AND LET ME WORK YOU THROUGH THAT A LITTLE BIT. IF YOU THINK ABOUT IT, WE HAVE THE LOWEST TARIFFS IN THE WORLD AMONGST OUR MAJOR TRADING PARTNERS. AND THAT'S SIMPLY UNFAIR. IF CHINA EXPORTS A CAR HERE TO THE U.S., THEY PAY A TARIFF AT 2.5%.

SANTELLI: NOW, WAIT, PETER, THIS ISN'T ONLY CHINA EITHER. THIS IS CHINA, EUROPE, JAPAN. THEY ALL HAVE THESE WTO STRANGE VATS ON IMPORTS.

NAVARRO: LET'S TAKE JAPAN. THEY END US A HUNDRED CARS FOR EVERY ONE WE SEND TO THEM. AND THAT'S A PROBLEM OF NONTARIFF BARRIERS. SO THE POINT HERE, RICK, IS THAT TARIFFS BASICALLY FIRST OF ALL, THEY PROVIDE A DEFENSIVE MEASURE TO LEVEL THE PLAYING FIELD IN A TIME WHEN WE ARE DEFENSELESS AGAINST THIS BECAUSE WE ARE SUCH FREE TRADERS AND HAVE SIGNED ON TO THE WORLD TRADING SYSTEM. SO, THEY ALSO – LOOK, LET'S LOOK AT WHAT'S HAPPENED SINCE THE PRESIDENT HAS PUT TARIFFS ON COURAGEOUSLY, I MIGHT ADD. SOLAR AND WASHERS IN JANUARY. WHAT HAVE WE HAD? WE'VE HAD A TREMENDOUS INFLUX OF INVESTMENT SO THAT WE'LL BE BUILDING WASHING MACHINES HERE IN AMERICA WITH THAT FOREIGN INVESTMENT USING AMERICAN HANDS. AND WHEN WE DID THE STEEL AND ALUMINUM TARIFFS, GUESS WHAT, RICK, THE FIRST DAY WHEN THOSE THINGS WERE SIGNED, CENTURY ALUMINUM, HAWESVILLE KENTUCKY ANNOUNCED A $100 MILLION INVESTMENT TO MODERNIZE AND EXPAND ITS PLANT AND U.S. STEEL ANNOUNCED THE OPENING OF A FACILITY IN GRANITE CITY, ILLINOIS, THAT'S BEEN SHUT DOWN. SO THIS IS THE REASON WHY TARIFFS CAN BE GOOD AND DEFENSIVE FOR THE AMERICAN PEOPLE, AND PRESIDENT TRUMP, I THINK IT'S COURAGEOUS WHAT HE'S DOING. BECAUSE HE TAKES ALL SORTS OF HEAT FROM THE SWAMP, THE USUAL SUSPECTS, BUT IF YOU LOOK AT IT CLINICALLY, WE CAN DO THIS IN A WAY THAT IS PEACEFUL AND WILL IMPROVE AND STRENGTHEN THE TRADING SYSTEM. BECAUSE RIGHT NOW IT'S NOT FAIR.

SANTELLI: AND THAT'S THE CRUX OF THIS MATTER, PETER.

NAVARRO: I TOTALLY AGREE.

SANTELLI: I DON'T THINK ANYBODY I TALK WITH WOULD DISAGREE THAT BETWEEN TARIFFS, VATS, IMPORT VATS, ALL THE ISSUES OF CHINA, EUROPE, AND JAPAN, WE'RE NOT GETTING A GREAT DEAL BUT THE ADAPTION OF THE GLOBALIZATION OF ECONOMIES HAS MADE IT SO TINKERING CAN HAVE OUTSIDE CONSEQUENCES. AND I GUESS THAT'S WHAT MOST PEOPLE, THE UNKNOWN, ARE NERVOUS ABOUT, NOW, I KNOW LARRY KUDLOW JOINED THE PARTY HERE.

NAVARRO: LET ME JUST SAY ONE THING. WE COME IN PEACE HERE. THE THING EVERYBODY ON WALL STREET NEEDS TO UNDERSTAND IS JUST RELAX. IF YOU LOOK AT THE NEGOTIATING POSTURE OF THIS COUNTRY, ALL THESE COUNTRIES RUNNING HUGE TRADE SURPLUSES WITH US HAVE NO INCENTIVE TO ROCK THAT BOAT. ALL WE'RE DOING IS STANDING UP. NOW LET'S TALK ABOUT LARRY. BECAUSE -- I THINK THIS IS PROBABLY OUR 15-YEAR REUNION HERE. BECAUSE HE AND I GO BACK TO YOUR NETWORK, CNBC. I WAS ON HIS SHOW FREQUENTLY. I WORKED AT CNBC FOR MANY YEARS. I FIND HIM TO BE A SMART AND WARM. INDIVIDUAL. HE'S GOING TO COME HERE AND BE A TEAM PLAYER. AND IT'S GOING TO BE GREAT. THE PRESIDENT, PRESIDENT TRUMP, IN ORDER TO MAKE THE BEST DECISIONS POSSIBLE, I'M SEEN THIS IN THE OVAL, I'VE SEEN IT IN THE ROOSEVELT ROOM, HE NEEDS DIVERSE OPINIONS. AND IT'S -- I THINK IT'S A GREAT CHOICE. EVERYBODY HERE IS GOING TO WELCOME HIM WITH OPEN ARMS. AND WE'RE LOOKING FORWARD, NOT BACKWARD.

SANTELLI: AND MY FINAL TOPIC. YOU KNOW, I REMEMBER A DAY, PETER, WHERE THE BIG NEWS IS CHINA WAS WELCOMED INTO WORLD TRADE, THE GOAL WAS TO MAKE CHINA MORE OF A CONSUMPTION ECONOMY AND THE U.S. A BIT MORE OF EXPORT ECONOMY. NOW IT DOESN'T SEEM THAT I HEAR MUCH OF THAT ANYMORE. BUT EMBEDDED IN THAT BASIC PRINCIPLE SEEMS TO BE THE DIRECTION YOU WOULD LIKE TO SEE THINGS MOVE. DOES THAT CORRECTLY FRAME THE ISSUE?

NAVARRO: THAT DOES, RICK. AND CHINA ENTERING THE WTO IN 2001 WAS A FUNDAMENTAL SHOCK NOT JUST TO THE UNITED STATES BUT TO EUROPE AND THE REST OF THE WORLD BECAUSE CHINA CAME IN BASICALLY SAYING THAT THEY PLAYED BY THE RULES. AND SINCE THAT TIME, THEY'VE BASICALLY HAVE BROKEN EVERY RULE IN THE BOOK. AND BASICALLY, THEY'VE DESTABILIZED THE WORLD TRADING SYSTEM. SO, FOR EXAMPLE, IN THE COMING WEEKS, PRESIDENT TRUMP IS GOING TO HAVE ON HIS DESK SOME RECOMMENDATIONS ON AMBASSADOR ROBERT LIGHTHIZER'S QUOTE, 301 INVESTIGATION, OF CHINA'S THEFT AND FORCED TRANSFER OF OUR INTELLECTUAL PROPERTY. THIS WILL BE ONE OF THE STEPS, ONE OF THE MANY STEPS THE PRESIDENT IS GOING TO COURAGEOUSLY TAKE IN ORDER TO ADDRESS UNFAIR TRADE PRACTICES. AND RICK, I DON'T THINK THERE'S A SINGLE PERSON ON THE FLOOR OF THE WALL STREET STOCK -- ANYBODY ON WALL STREET THAT WILL OPPOSE CRACKING DOWN ON CHINA'S THEFT OF OUR INTELLECTUAL PROPERTY.

SANTELLI: NO. AND THAT'S UNIVERSAL. THAT'S WHY I'M ACTUALLY HAPPY THAT YOU'RE THERE AND LARRY'S THERE. BECAUSE THE REAL ISSUE HERE IS TRYING TO GET A JOB DONE THAT NEEDS TO BE DONE AND IT'S THE RIGHT TIME, IN MY OPINION, BECAUSE WORLD ECONOMY IS COMING OUT AND GETTING SOME TAILWINDS TO ADDRESS THESE ISSUES. IT'S HOW WE ADDRESS THEM AND HOW WE FRAME IT. AND I GUESS MY FINAL QUESTION OR SERIES OF QUESTIONS WOULD REVOLVE AROUND THE FOLLOWING: HOW DO YOU THINK IT WILL PLAY OUT WITH REGARD TO THIS ADOPTION OF THESE NEW RULES? ARE CHINA, EUROPE, MERKEL, EVEN COMPANIES THAT IMPORT, THAT ARE LOOKING FOR EXEMPTIONS, WILL THEY BE ABLE TO NAVIGATE THIS WITHOUT DOING UNDUE SHORT-TERM DAMAGE TO THE ECONOMY?

NAVARRO: WELL, I THINK THE BEAUTY OF PRESIDENT TRUMP IS HE'S FIRM BUT FLEXIBLE. AND THIS IS WHAT'S GOING TO HAPPEN. AND I WANT – LOOK, IF YOU THINK ABOUT THE MARKETS, WHICH YOU LOOK AT EVERY DAY, THIS ADMINISTRATION HAS CUT TAXES, IT'S UNDERGONE TREMENDOUS DEREGULATION, WE'VE UNLEASHED OUR ENERGY SECTOR, WE ARE WORKING HARD TO RESTRUCTURE THE TRADING ENVIRONMENT IN A WAY WHICH WORKS NOT JUST FOR AMERICANS BUT ALSO FOR THE REST OF THE WORLD. SO IT'S GOING TO BE DONE IN A MEASURED, FIRM, BUT FLEXIBLE WAY, AND W'ERE GOING TO WORK WITH OUR ALLIES AND TRADING PARTNERS TO MAKE THINGS BETTER FOR EVERYBODY. AND THAT'S THE DIRECTION WE'RE TRYING TO HEAD. AND I THINK IT'LL BE FINE IF YOU JUST LOOK AT THE CHESS BOARD BECAUSE NOBODY REALLY HAS ANY INCENTIVE TO PICK A FIGHT WITH US. THEY'RE GETTING TOO GOOD A DEAL FROM US. ALL WE'RE LOOKING FOR IS A BETTER DEAL FOR THE AMERICAN PEOPLE.

SANTELLI: NO, AND I GET THAT, BUT THE ONLY PROBLEM I KEEP COMING BACK TO, PETER -- AND I AGREE WITH YOU ON THE MAJOR POINTS, IS THAT EVERY DOLLAR WE GAIN ON A RENEGOTIATED DEAL IS GOING TO COME OUT OF ONE OF THESE ECONOMIES POCKETS. AND EVEN IF IT'S IN THEIR POCKET UNFAIRLY THAT TRANSITION IS GOING TO TAKE SOME GETTING USED TO. SO I'LL ASK YOU THIS – THEY'VE ALWAYS SAID THE STOCK MARKET IS A FORWARD-PRICING MECHANISM. LET ME ASK YOU ONE QUESTION. YES OR NO. IS WHAT YOU'RE DOING GOING TO BE REALLY GOOD FOR THE LONG-TERM U.S. ECONOMY?

NAVARRO: ITS GOING TO BE GREAT, NOT JUST FOR THE AMERICAN ECONOMY, BUT FOR THE REST OF THE WORLD. I DON'T SEE THIS, RICK AS YOU FRAMED IT, AS A ZERO-SUM GAME.

SANTELLI: NOW, WAIT, LET ME CONTINUE. IF IT'S GOOD FOR US AND IT'S GOOD FOR THE GLOBAL ECONOMY, THEN WHAT YOU'RE REALLY SAYING IS IF YOU'RE A STOCK INVESTOR WATCHING THIS RIGHT NOW AND YOU SEE UNCERTAINTY PLAYING OUT, IT'S GOING A BIT SIDEWAYS HERE, THAT THIS COULD BE, IN YOUR OPINION, AN OPPORTUNITY BECAUSE ULTIMATELY THIS UNCERTAINTY LEADS TO A BETTER SET OF OUTCOMES. DO YOU AGREE OR DISAGREE WITH THAT?

NAVARRO: TOTALLY AGREE. BECAUSE, LET'S FACE IT. IF WE'RE STRONGER, IF WE'RE HITTING OUR 3% GDP GROWTH RATE BENCHMARK EVERY YEAR, WHAT'S IN IT FOR THE REST OF THE WORLD? WELL, WE BUY MORE OF THEIR STUFF, AND WE'RE ABLE TO FUND OUR DEFENSE BUDGET, SO WHEN JAPAN NEEDS US BASICALLY IN THE EAST CHINA SEA OR WHEN EUROPE NEEDS US FOR NATO PURPOSES, WE'LL BE STRONG. PRESIDENT TRUMP, ONE OF THE MOST IMPORTANT THINGS HE SAID IN OFFICE, IS THAT ECONOMIC SECURITY IS NATIONAL SECURITY. WHEN WE HAVE BOTH, THE WORLD IS SAFER. AND MORE PROSPEROUS.

SANTELLI: AND YOU KNOW, ON THAT FINAL THOUGHT, I WANT TO ASK YOU ANOTHER QUESTION. WHEN I HEAR OUR ALLIES, LIKE EUROPE, LIKE JAPAN, SAY, YOU KNOW, "WHY WOULD YOU PUT TARIFFS ON US? WHY WOULD YOU QUESTION OUR ACTIVITY ON FAIRNESS? WE'RE YOUR ALLIES," AM I WRONG TO DIFFERENTIATE THAT? FROM A DEFENSE STANDPOINT THEY'RE OUR ALLIES, BUT AREN'T WE IN A SOFT ECONOMIC WAR RIGHT NOW, EVEN WITH OUR ALLIES? AM I OVERSTATING THAT?

NAVARRO: YES, LET'S NOT USE THE "W" WORD. I MEAN, BASICALLY WHAT WE'RE IN NOW –

SANTELLI: NO, BUT YOU KNOW WHAT I MEAN.

NAVARRO: I KNOW EXACTLY WHAT YOU MEAN. BUT LET'S LOOK AT THAT RELATIONSHIP SO WE UNDERSTAND EACH OTHER. BASICALLY, WE'RE IN A SITUATION WITH THE REST OF THE WORLD WHERE THE TRADING PLAYING FIELD IS HIGHLY TILTED IN THEIR DIRECTION. BECAUSE OF THAT, WE ARE HAVING TROUBLE HISTORICALLY GROWING THE WAY WE SHOULD. AND WHEN WE DON'T GROW, WE DON'T HAVE THE MONEY TO HELP DEFEND THEM. SO THE ALLIES CAN'T BRING THE IDEA OF STRATEGY INTO ECONOMICS WITHOUT UNDERSTANDING OUR CORE PRINCIPLE. ECONOMIC SECURITY IS NATIONAL SECURITY. NOT JUST FOR US BUT THEM AS WELL. LOOK, THERE'S GOING TO BE POSTURING AND PUBLIC PRONOUNCEMENT, WHATEVER. BUT AT THE END OF THE DAY, BEHIND CLOSED DOORS THROUGH DIPLOMACY AND EVERYTHING ELSE, OUR ALLIES ARE GOING TO UNDERSTAND WE'RE SIMPLY DEFENDING OURSELVES AGAINST WHAT'S BEEN REALLY, AN UNFAIR RELATIONSHIP FOR MANY, MANY YEARS. THIS IS GOING TO WORK OUT FINE. THE WORLD'S GOING TO BE A BETTER PLACE. THE TRADING SYSTEM – THIS IS IMPORTANT – WILL BE MORE STABLE.

SANTELLI: ALL RIGHT NOW, THEY'RE GIVING US MORE TIME. LET'S TALK ABOUT THE LOGISTICS OF THE ROLLOUT. YOU KNOW, I'M A LOGISTICS GUY. I LIKE TALKING ABOUT THINGS I CAN TOUCH. THERE ARE GOING TO BE COMPANIES DOMESTICALLY -

NAVARRO: YOU MISSED YOUR CALLING. YOU SHOULD BE RUNNING AN AIRCRAFT CARRIER IS WHAT I MEAN.

SANTELLI: THERE'S GOING TO BE COUNTRIES EXPORTING. THEY'RE GOING TO WANT EXEMPTIONS, EXCEPTIONS, AND CARVE-OUTS. AND I KNOW BASED ON SOME OF THE RECENT HEADLINES, AND YOU CAN TELL ME IF YOU FEEL DIFFERENTLY, THAT WE ARE GOING TO PROBABLY PASS A FEW OF THOSE OUT. WILL THAT PROCEDURE BE TRUMP-LIKE? IN OTHER WORDS, NO RED TAPE, IT'S NOT GOING TO TAKE FOREVER, IT'S NOT GOING TO BE BUREAUCRATIC, THAT WE'RE GOING TO HAVE AN EFFICIENT WAY TO IMPLEMENT ESPECIALLY THE CARVE-OUTS, EXCEPTIONS, AND EXEMPTIONS.

NAVARRO: SO WE'RE BLESSED WITH HAVING AMBASSADOR ROBERT LIGHTHIZER AND SECRETARY OF COMMERCE WILBUR ROSS. THEY'RE WORKING AS WE SPEAK TO MAKE SURE THIS MOVES IN WHAT I LIKE TO CALL TRUMP TIME, NOT IN THE GOVERNMENT BUREAUCRACY TIME. AND THESE CARVE-OUTS AND EXEMPTIONS ARE GOING TO BE DONE IN A WAY WHICH IS SENSITIVE TO THE STRENGTH OF OUR ECONOMY BUT ALSO MAKES SURE -- REMEMBER, THE STEEL AND ALUMINUM TARIFFS ARE BEING DONE FOR ONE REASON AND ONE REASON ALONE, NATIONAL SECURITY, TO DEFEND THOSE INDUSTRIES AS PILLAR INDUSTRIES. SO WHATEVER IS DONE WITHIN THE FRAMEWORK WILL ALSO ENSURE THAT THOSE INDUSTRIES MAINTAIN THE STAUNCHEST DEFENSE. SO THIS IS TRUMP TIME, RICK. WE DO THINGS DIFFERENT HERE. I THINK YOU'VE SEEN THAT. THE FIRST YEAR -- LOOK, RICK, THE FIRST YEAR OF THIS PRESIDENCY HAS BEEN ONE OF THE BEST YEARS IN THE ECONOMIC SYSTEM – ANY PRESIDENT OF HISTORY – THIS IS HISTORY. IT'S AMAZING.

SANTELLI: OH, I'M WITH YOU. PETER, YOUR BOSS IS CUT FROM A DIFFERENT MOLD. I GET IT AND MAYBE THIS IS EXACTLY THE TYPE OF PERSON WE NEED BECAUSE THESE THINGS AREN'T EASY. THE GLOBAL ECONOMIES AND THE GLOBAL POLITICAL ENVIRONMENT HAS MELDED IN SUCH A WAY THAT IT'S VERY DIFFICULT TO PEEL BACK THE ONION. A MAN LIKE TRUMP, WHETHER YOU LIKE HIS STYLE OR NOT, HAS THE RIGHT STYLE TO PEEL AN ONION POLITICALLY, GLOBALLY, FINANCIALLY. PETER NAVARRO, THANK YOU SO MUCH FOR BEING A GOOD SPORT.

NAVARRO: MY PLEASURE TO TALK WITH YOU, RICK.

SANTELLI: MAKE SURE YOU GIVE LARRY A BIG HUG FROM ME WHEN YOU SEE HIM TONIGHT.

NAVARRO: I WILL.

SANTELLI: AND CARL, BACK TO YOU

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CNBC
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e: jennifer.dauble@nbcuni.com

Emma Martin
CNBC
t: 201.735.4713
m: 551.275.5221
e: emma.martin@nbcuni.com

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