• With: Donald Trump

    TRUMP: Absolutely.

    CAVUTO: Trade war ensues.

    TRUMP: Well, I’d urge that anyway.

    CAVUTO: All right, trade war ensues. Then what?

    TRUMP: Oh, I would urge that anyway.

    Look -- look, this isn’t free trade. This isn’t free trade. This is -- if you try and do business -- I could tell you, Nucor, a great steel company, you ask that gentleman that’s running Nucor, is it a -- is it possible to do business in China, he will tell you it’s virtually impossible.

    We cannot do business in China. They do business with us. We can’t.  I have had Chinese partners. I will tell you right now, very difficult, want the edge all the time. And unless we have the right people to deal with them, you’ve got yourself a big problem in this country. And we don’t have the right people as of this moment that are dealing with the Chinese.

    CAVUTO: So, do you deal with China at all? Do you do business there at all?

    TRUMP: Well, frankly, I would have told the Chinese not to come for this wonderful state visit, where they’ll -- they will outsmart our people consistently and again. I would say don’t come until they stop with the manipulation, until they raise the value of their currency, so that our companies can compete.

    How can we solve our unemployment problem -- and we have a big one, and it’s going to last, as you know, Ben Bernanke said the other day, five or six more years, but I disagree. I think it’s going to be much longer, because China and other countries are taking all of our jobs.

    So, we have to be much different than our attitude. And, frankly, we need fair trade -- not free trade. We need fair trade. And right now it is not fair. If you have a company and want to do business, look at what happened to General Electric recently. They had to give up all of their technology to do business in China. OK?

    If you don’t deal with these people strongly, right down the middle, and with great strength, they will take over this country, which is basically what they’re looking to do. They are not our friends, Neil.

    CAVUTO: All right. Just -- as you’re speaking, though, I’m just talking what people are watching back home. This is the scene at Andrews Air Force Base. Chinese President Hu Jintao has arrived. They’re rolling out the red carpet, I think, in the rain.

    But, nevertheless...


    TRUMP: So, I don’t have a television in front of me. You’ll let me know whether our president drops to his knees, right?

    CAVUTO: Now, he -- now, Donald...


    CAVUTO: ... careful.


    CAVUTO: The president -- the vice president is there. You -- you can do this when you’re president, but right now we -- we have a -- an etiquette here. And -- and we should say, Joe Biden is going to be greeting President Hu Jintao.

    TRUMP: OK.

    CAVUTO: He will be bringing with him, Donald, the -- his country’s equivalent of their commerce secretary, some of their biggest -- I guess the equivalent of their biggest hedge fund investors.

    There’s talk that they are going to announce a lot of deals with President Obama because they have got a lot of cash to spend, a lot of green energy projects and -- and that sort of stuff. So maybe this approach we are taking is working and...


    TRUMP: It’s not working.

    CAVUTO: It is not working? Go ahead.

    TRUMP: No, it’s not working.

    And the deals that they are making are small deals. And it is just a front, and they are probably not good deals for us anyway, but they are very small deals. It’s just a symbol so that they can continue to rip off the United States.

    CAVUTO: Now, you – you’ve spoken like this for a good long time, as long I have known you, about being blunt with those who -- who we tend to pussyfoot around, whether it’s OPEC or China.

    Would this be, if you were to run for president, your -- your -- your big issue?

    TRUMP: It would be one of the big issues. I would be able to actually lower taxes. I would tax the Chinese.

    I would do things to OPEC. OPEC wouldn’t exist if it wasn’t for us, because we protect these countries. We protect them. South Korea wouldn’t exist if it were not for us. And, yet, we signed a trade agreement that is so bad, that a child would laugh at it from our standpoint.

    But when the bombs get dropped, then they say we will sign the agreement that they didn’t want to sign, even though it was 100 percent on their side. It is absolutely insane what our leaders are giving away to other countries, absolutely insane.

    CAVUTO: But do you think our options are increasingly limited because of how much money we owe? In other words, we’re in deep. And, as a result, we’re in deep to these guys?

    TRUMP: We get deeper and deeper, and we get weaker and weaker, and something has to happen now.

    We don’t have the luxury of waiting years. Something has to happen now. Why did we send an entire fleet, including one of the largest aircraft carriers in the world, to North Korea to protect South Korea without them paying us? Why aren’t they paying us for this protection?

    They make hundreds of billions of dollars a year on us, and then we just send our fleet over there to protect them? For what reason? Why are we protecting them? Let them pay -- let them pay for protection.

    CAVUTO: Alright. So...

    TRUMP: No wonder we’re losing so much money.