Odd-man out? President Trump talks trade, tariffs at the G7 summit

This is a rush transcript from "Your World with Neil Cavuto," June 8, 2018. This copy may not be in its final form and may be updated.

NEIL CAVUTO, ANCHOR: Forget the protest outside. Is the real battle about to go down inside?

Welcome, everybody. I'm Neil Cavuto.

And so many summits, so little time. In an hour from now, the president is set to sit down with Canadian Prime Minister Justin Trudeau at the G7 summit. Now, they looked happier earlier for the so-called group photo.

Not so sure how they will be feeling a bit when they're just one-on-one alone.

We're all over all of this with Kevin Corke in Quebec City, where all of this is going down, and Rick Leventhal on those protests that are now just heating up.

We begin with Kevin.

Kevin, what does it look like in there?

KEVIN CORKE, FOX NEWS: Neil, very interesting. I'm glad you mentioned that, because, you know, coming into the summit, some newspapers, including The Times, described the president as a bit of a black sheep of the family because of his sort of cantankerous nature before coming here.

And so a lot of us are wondering, what might that family photo look like? Well, let me show you. OK, I will just say it this way. It looked fine on the surface, Neil. A lot of smiles that you would well imagine you would see in that sort of a photo. But it still makes you wonder. Beneath the surface, was there tension there?

Obviously, not a lot to draw from the picture itself. I did notice that Canadian prime minister, Justin Trudeau, appeared to leave a little quickly, while the president and German Chancellor Angela Merkel pulled up the rear there.

Now, the president did, by the way, speak to Macron, meet with the French president briefly. He has been highly critical of the president's push to level the playing field on trade.

Now, before leaving for Washington -- or leaving Washington for Quebec, the president made this very clear. He has one word in mind when it comes to trade, and that's reciprocity.


PRESIDENT DONALD TRUMP: If we're unable to make a deal, we will terminate NAFTA, we will have a better deal. If we are unable to make a deal, we will be better off.

Right now, we are not going to live with the deals the way they are. European Union treats us very unfairly, Canada, very unfairly, Mexico, very unfairly. With that being said, I think we will probably very easily make a deal.


CORKE: Very easily make a deal.

We're not sure exactly what the deal might look like.

But just to give you a sense, Neil, of what the president calls unfair trade, look at what he tweeted. "Canada charges the U.S. a 270 percent tariff on dairy products. They didn't tell you that, did they? Not fair to our farmers."

Now, the bilat coming up with Trudeau a little bit later on, of course, we will bring you a readout as soon as we get it. In the meantime, the president is here and is expected to leave a little bit sooner than originally planned. Looking forward to making his way to that next summit you talked about, the one in Singapore with North Korea -- Neil.

CAVUTO: Oh, yes, that one. All right, thanks, buddy, very, very much.

CORKE: Yes, that one. Yes.


CORKE: You bet.

CAVUTO: Now to what's going on outside in those protests or protesters. What's the latest?

Rick Leventhal in Quebec today.

RICK LEVENTHAL, FOX NEWS: Neil, we're outside the National Assembly, which is completely encircled by police officers in riot gear. They have batons and shields and helmets all the way around the building.

And what you see here are some of those buses? Those have been ferrying officers, SWAT teams around the city as needed. And a bunch of them, probably a couple hundred officers at least, just went into this park. Many of them have now left.

You can see some officers up on the hill there because a group of demonstrators had headed this way and they wanted to fend them off. The largest demonstration of the day was expected to be here at the National Assembly. It was a small crowd.

And just beyond us there, Neil, that's the entrance to the Old City. That's where many of the shop owners boarded up in anticipation of violence. And so far, fortunately, we haven't seen it.

We can tell you there was an incident this morning where a group of protesters blocked a highway. There was a standoff with police in riot gear at that location. Some of them burned couches. There were chants and so on.

Eventually, that crowd was dispersed after a couple of people were arrested. Last night, we were witness to a very large demonstration, or larger, perhaps 800 to 1,000 people who marched from a park about a mile- and-a-half over to this area next to the National Assembly.

It was peaceful for the most part. A lot of chanting. Some of them were wearing masks or bandannas covering their faces. And then they did set fires or set off flares when they got to the street, and there were a couple of arrests last night as well, but, today, pretty calm.

Nothing like we saw here, Neil, in 2001 during the Summit of the Americas, when there were 30,000 to 50,000 demonstrators who did millions of dollars worth of damage and had violent clashes with police officers.

I was here, witnessed them throwing bricks at officers, tearing up sidewalks, smashing windows, doing millions of dollars in damages. There were hundreds of arrests in 2001. But this time around, Neil, a much calmer scene so far, largely, it seems, in part, to the fact that the summit is actually 88 miles northeast of Quebec City.

And also there just aren't as many protesters here in Quebec City this time around -- Neil.

CAVUTO: That's interesting.

Rick, thank you very much, my friend, Rick Leventhal.

So, the president in the middle of this. It's sort of like a G7 or what they are calling a G6 plus one, with the United States being the odd man out and the target of a lot of criticism from colleagues who say he is going too far putting on tariffs or threatening to his friends.

Let's get the read from the former State Department official Anja Manuel.

Anja, very good to have you back.


CAVUTO: You know what I didn't realize, Anja? And you know this better than I do, that presidents have routinely had problems with our friends and more pointedly the Canadians taking, them to the World Trade Organization or other entities because they don't play fair, Barack Obama quite a few times, when it came to everything from lumber to, you know, American wine makers who felt that they were not getting a fair shake selling their product in Canada, British Columbia, more to the point.

What make this impasse different?

MANUEL: You are absolutely right, Neil.

I would say everyone needs friends, including a powerful country like the United States. So when we have disputes with our allies and friends, as we often do, you keep them quiet and behind the scenes and you don't let them explode out into public the way this has happened.

We should be working with our allies, especially the Europeans and Canadians, to push back against the biggest mercantilist of all, China, rather than picking a fight with them.

CAVUTO: But, you know, a lot of these cozy trade deals that some of these countries have with us, including Canada, including Mexico, including many of the European Union countries, now, these have evolved over decades, as you have reminded me in the past, and even the present participants of these meetings probably don't even know the details.

But they have happened. And this president, maybe unlike his predecessors, maybe unwisely, unlike his predecessors, is choosing to give it a microphone. Now, what is the proper approach to take or what are they urging him to take?

MANUEL: There has certainly been protectionism both by the Europeans and by the Canadians.

We in the U.S. have been guilty of it to protect some of our industries as well. I think the WTO is still the number one body to go through and then private, quiet, behind-the-scenes negotiations.

You can be tough. You just don't let it spill out in public, because it makes us look bad. And it makes us, the United States, the odd man out, when actually China should be the odd man out.

CAVUTO: Do you think that there is a method to this, though, on the part of the president, Anja, that he is sending as much a message to the Chinese? Look at how I get tough with my friends. Just take a gander how I will treat you.

MANUEL: I don't want to speculate on what the president's thinking is. But I think the message he is sending in this case in particular is not very helpful.

And you can see that by the Republican senators getting worried. Senator Corker has introduced legislation that would get Congress involved on the steel and aluminum tariffs. Other Republican senators this week urging the president to ratchet down the rhetoric, the angry rhetoric against our closest friends in the world.

CAVUTO: But what if it works, Anja? I know unusual and unorthodox, the approach. If he can get the other side or sides in this case, to your point, to give us something to avoid those tariffs in the first place and they never have to come to pass, what would you think of that?

MANUEL: I hope it works.

But I think, having dealt a lot with Europeans and the Canadians, including my time at the State Department, what works best usually is to have a quiet conversation behind the scenes with friends.


CAVUTO: But, Anja, there is nothing quiet about this president or quiet about his approach. But he will argue...

MANUEL: No, that's -- you are absolutely right.

CAVUTO: ... and economic numbers seem to bear it out, that whatever he is doing is working. What do you think?

MANUEL: The economy is certainly doing well.

I think the jury is very much out on trade and whether we're actually going to get better trade deals. I know, on NAFTA, for example, some substantial progress has been made. That agreement does have to be updated. We do need protections for U.S. workers.

But there is also at some point where you need to have a little give and take, rather than just blowing the whole thing up. So I hope we can get back to those more constructive conversations.

CAVUTO: All right.

Anja, very good getting your read on this. Let's hope cooler heads prevail and we don't come to a trade war with each other, Anja Manuel.

MANUEL: Thank you.

CAVUTO: This idea that Anja brought up about NAFTA and all, there was another very popular candidate, you might recall, who was railing against the original NAFTA deal that was crafted under a Democratic president.

And this was Democratic candidate Barack Obama, who said that if he ever came to power he would change it and fast and align it more closely with America interests and even faster. That was then. What's the big deal and the difference now? Just approaches?

Let's get the read from presidential historian, bestselling author Doug Wead.

I forget that, that many an American president has had problems with our neighbors and best friends. They have all expressed it differently, but they have all expressed it, right?


A lot of people compare America and Canada as a marriage. It's more like cousins. And we can fight. I mean, in 1971, Richard Nixon used language I can't use on television.

CAVUTO: Right.


WEAD: He was referring to Pierre Trudeau as a pompous you know what.

There were big differences then, and it was over trade. It's always over money.

CAVUTO: That's right.

WEAD: Our money to clean up the environment. Our money to provide for defense. Our money to help their farmers and help their people get jobs.

And so Trump is trying to realign that. And then you will remember Jean Chretien, he actually publicly -- against George W. Bush, he publicly said that 9/11 was our fault, our foreign policy.

CAVUTO: I remember that, yes.

WEAD: It was a bitter moment for -- so, this is nothing new with Trump.

CAVUTO: What is interesting is this president's response to all of that.

Now, of course, you were mentioning Pierre Trudeau, of course, the father of Justin Trudeau, famous liberal of his time and the mirror opposite of Richard Nixon, as you also point out.

So, how much does that politics play into this? I was surprised, the number of beefs and problems that President Obama had with the Canadians and in petitioning the WTO, I think, no fewer than 34, 36 times during his presidency. He won a lot of those battles at the WTO.

And people smarted from that because he did go after Canada a lot of the times. But I guess bygones were bygones or they were settled in the president's favor, so they could argue, well, we went through the normal channels.

Our president is not going through the normal channels, but he argues the normal channels rip us off. How does that play?

WEAD: Yes. Well, it plays big.

And there was a big difference with Obama. You are right. There was also the Keystone XL pipeline. That was devastating to Canada. And that was Obama's decision.

But Obama had an advantage. He had the media backing him up. Today, Donald Trump has the media, I wouldn't call it anti-American, but you can certainly say it's anti-Trump. So Trudeau and our French allies, our British allies, they smell it. They know it. They know that if they attack the United States and our policies, the American media will side with them against Trump.

That's a big difference. And I have to say one thing, Neil. You brought up the politics of it. If you study Canada and its history, there has always been a very strong element of people who are anti-American. The funny part about it is, Americans love Canadians. And these particular Canadians, it just drives them up the wall.

They say, you're so dumb, you don't even know we don't like you.


WEAD: (INAUDIBLE) politician like Trudeau and others in the past can always punch that button and know they will get a response from some in the Canadian electorate who just don't like the Americans.

CAVUTO: Yes, most of them are localized around the Quebec or the French- speaking areas, I think, right?


CAVUTO: Professor, always good seeing you, my friend. Thank you very much.

WEAD: Thank you.

CAVUTO: Doug Wead, a good read on things.

That is true. Depending on the region, they either love or hate us. But, well, in this particular fight, the foreign press has not been kind to one Donald Trump.

And all of this ahead a bigger meeting that the president is having, in fact, the reason why he is leaving early, that one in Singapore. That's the one that's getting all the world's attention -- after this.


CAVUTO: All right, I don't know if this is exactly worthy of a FOX News Alert, but a FOX News poll that really isn't too jolting, but it could be a sort of a wind at the president's back, showing two out of three of Americans support this summit he is going to be having with the North Korean leader, Kim Jong-un.

Now, the U.S. and North Korea, if they actually come away from this with something, even if it doesn't appear to be eye-popping progress, but something, then it could change everything.

Now, of course, what would something be?

The author of "The Operator," former Navy SEAL Rob O'Neill, with me.

Rob, good to have you.

ROB O'NEILL, FORMER U.S. NAVY SEAL: Thanks for having me, Neil.

CAVUTO: One ever the common phrases we hear, Rob, is denuclearization of the Korean Peninsula. Both sides agree that's an integral issue. We have very big differences on the timetable. We want it fast, the North Koreans, not so fast.

O'NEILL: Well, there are so many arguments with that, because a lot of people are saying that Kim Jong-un is sort of playing along, knowing that President Trump could be out in a few years, seven years at the most. And then he could play the next administration, which his grandfather, Kim Il- Sung, and then Kim Jong Il and then Kim Jong-un...

CAVUTO: How likely do you think that is? It has happened twice before.

O'NEILL: I don't think it is. I just think, with a lot of the technology coming up, that Kim Jong-un wants to maintain power.

And the way he maintains power is without an invasion of his country. He really wants to avoid an invasion. That was one of the things that he was saying in the demilitarized zone and then in South Korea, that if we can guarantee the U.S. will not invade, which we really don't have interest in doing, he gets to sort of maintain power.

And that's a whole different ball of wax once they get the technology in there. But if he realizes -- he gets to keep power with nukes. He knows that is a deterrent. But if he can get rid of them, hopefully releasing some of the -- some of the pressure of the economic sanctions, he gets more stuff in there, his people, not that he really cares about his people, but, if they get fed, that, again, will come with him maintaining power.

Just to get a face-to-face with the leader of the free world, which no one in North Korea ever has, that's a step in the right direction. And he can hear face to face, along with an invite to Mar-a-Lago or to the White House.

He wants to be legitimized. He wants to keep his power. This is definitely a step in the right direction. Even if nothing comes out of it, they have already started negotiating. Once, they called it off, called it -- put it back on. And then President Trump is going to leave the G7 summit tomorrow early to get to Singapore to start.

This is a great first step in foreign policy.

CAVUTO: All right, now, you never like being called a hero, but I think, if you take down Usama bin Laden, you are categorized as that in my book.

But, having said that, how would feel if we do normalize relations and down the road there is Kim Jong-un at the White House with the president of the United States?

O'NEILL: It's a tough one. I mean, President Trump has invited Vladimir Putin, too. And a lot of people on the left are saying, you know, you bring -- you know, he is a guy that has tortured his own people. He's not a good guy.

CAVUTO: But we can't pick and choose the leaders of the countries we must negotiate with.


O'NEILL: Look at some of the people that call themselves our allies.

I would rather be stabbed in the front than stabbed in the back. That's kind of what it is. And maybe he comes around.

Look at Pakistan, OK? We give them millions and millions, hundreds of millions in aid. And they hid bin Laden on us. They are hiding the Haqqani Network. How do you start? What, do we just ignore them?


CAVUTO: But, viscerally, you could deal with that?

Much the same FDR couldn't pick and choose the leader of Russia when he was talking to Stalin. And here he was.

O'NEILL: Well, and they were calling him Uncle Joe at the time. He turned out not to be a great guy. He killed millions of people.

CAVUTO: Absolutely.

So, leaving that out of the argument here, the sense seems to be, the North Korean needs something out of this a lot more than we do.


CAVUTO: So, what do we offer in exchange that doesn't look like we are caving? And that was the rap against Bill Clinton. That was the rap, fairly or not, against President....

O'NEILL: Well, I mean, we are offering relief. We're offering -- he likes his money. He wants to be seen as a world leader. He loves prestige.

But it seems to me, even I said he was crazy before on television. He might not be as crazy as we thought. But, you know, he wants to be legitimized. And he wants -- hopefully, they see what kind of -- look at the wealth in Seoul, South Korea, compared to Pyongyang.

And they got a lot of that because of capitalism and because of cooperating with the world. There is a lot of good stuff. And right now, they are trading mainly with China and some with Singapore, which is why -- one of the many reasons why the summit is going to be in Singapore.

But if they can trade with more people and they don't -- they're not necessarily under the thumb of the Chinese, that could be in their interest. We will see. You have got to figure, since the early '50s, the people have been being lied to, being told this family are gods, and it's going to take a lot to bring them around.

CAVUTO: But can you unify the two?

O'NEILL: Hopefully.


CAVUTO: The father envisioned there would be no North or South Korea, there would be one Korea, and the North would be running it.

O'NEILL: There should be. They tried it through communism.

But he probably didn't imagine his grandson would be holding hands and skipping across the demilitarized zone with the leader of South Korea. I mean, it's very interesting, to say the least. And it's -- I'm looking forward to it.

CAVUTO: Yes. All right. It is going to be pay-per-view watching.

O'NEILL: Oh, certainly.

CAVUTO: Thank you very, very much, Rob O'Neill, former U.S. Navy SEAL, the man who brought down Usama bin Laden.

O'NEILL: Thanks, Neil.

CAVUTO: All right, $100 trillion, by the way, that's how much Americans are worth right now. And it's never been that big. It's never been that high. So, how optimistic are you? Why that number could change a big number in November -- after this.


CAVUTO: You feeling a little richer these days?

Well, you are part of the $100 trillion richer. That's America's total household worth. Now, of course, a lot of it has been buoyed by the markets and higher home evaluations.

And, of course, this week got a little bit more so with all the major market averages up appreciably, even with some of the concerns that have been out there.

So, what's the heck is going out there?

Let's get the read from Gary B. Smith and Melissa Armo.

Melissa, this just seems weird at face value, that the markets would climb with all these worries. Then I see $100 trillion worth figure, and I go, maybe it's just people feeling more robust and bullish that is driving it.

MELISSA ARMO, THE STOCK SWOOSH: I think the market is getting used to Trump.

But I think it's really surprising that we are rallying into this meeting with North Korea. This is a big week coming up next week. We are right at a critical level for the S&P and the Dow. If we get over 26000 in the Dow, we are going to make new highs.

And I never thought that would happen this summer. Let me just say, if we make new highs in the next few months this summer, that is so early and unexpected to me for the way the price action looked back in February, when we fell. We will explode right up into the next presidential election for Trump to get going and maybe reelected again.

He might actually get reelected again if the market runs up like that.

CAVUTO: Well, Mitt Romney, I think, earlier said that.

But, you know, Gary B., I'm wondering, all these years I have known you and talked to you, you know, you have talked about meltdowns and melt-ups. And a lot of people look at what's been happening of late, and does this have a melt-up feeling to it? We keep climbing up, up, up, up?

GARY B. SMITH, FOX NEWS CONTRIBUTOR: What did Warren Buffett say? He thought we were in the sixth inning?


CAVUTO: ... a baseball game is nine innings. We're two-third through it.

SMITH: That about feels right. Right now...

CAVUTO: So, this longest bull market about in history is going to get longer still by a third?

SMITH: I think so.

And here's why. You know, the expression politics is local? I think the economy is also local to people's pocketbooks. We have low unemployment. We have -- you just talked about the household net worth. We have housing prices, at least per the Case-Shiller index, has eclipsed the highs back in 2006.

People have jobs. Wages are climbing.

CAVUTO: Well, fortunately, no one is underwater like they used to be, right?

SMITH: Exactly. There might be...


CAVUTO: Not like a national...


SMITH: Right. Right. Exactly.

In general, people aren't being foreclosed on. Everything's working right now. Could there be a black swan out there? Of course. Always. But, right now, I'm with Buffett. I think we have a ways to run right now. And, you know, a lot of these tax cuts haven't even kicked in yet.

CAVUTO: Buffett also mentioned we haven't even gotten to our heavy hitters yet. What was he referring to when he said that we are two-thirds through something or that bigger things could come that could propel this still higher?

What do you look at?

ARMO: Well, meaning, just like Gary just said, corporations haven't even filed. Neither have individuals filed for 2018, when we have the tax cuts.

Now, people if they got paid in their W-2s, they are seeing the savings. But companies, maybe if they reported quarterly earnings, pay in ahead. But no one has filed or required to file until April of 2019 for the big tax cuts.

CAVUTO: But individuals in high-tax states, like the one you are in right now, they will -- they might be surprised that they are not getting as much as they wanted, because their deductions are limited. Right?

ARMO: Right. Well, we will see.


ARMO: Obviously, we will have to see.

Obviously, we have the elections coming up in a couple of months. That's going to affect it. But, overall, people do vote their wallets. If things are good, if people are at work, if they are looking at their 401(k)s and the market continues to rally, and they are blowing up, blowing up, their 401(k) is getting bigger, people feel safer.

They feel like, I can go out and I can put money or spending something on a credit card and things are going to be OK. Instead of when people voted Trump in, they wanted change so badly, they didn't care at any cost. They didn't care that Trump never was in government before.

People when it comes up are going to say, hey, we don't want things to change. Things are kind of going maybe pretty good now. We don't want any change.

CAVUTO: And a trade war, the prospect of that doesn't rattle you?

SMITH: No. I don't think so.

Look, I don't like what he is doing with trade.

CAVUTO: Right.

SMITH: I would like no barriers. I would like, you want to dump your goods...

CAVUTO: Something is working.


SMITH: You want to dump your goods in here and we just give you bills with old presidents on them, I'm happy with that.

But that's not going to happen. I think Trump -- we talked about it just before we went on -- he has a way of landing on his feet. Is this some, you know, amazing genius negotiating strategy? Who knows? But it tends to work out for the guy. I'm going to start giving him the benefit of the doubt.

CAVUTO: And he did bring to people's attention, even those who didn't know, that there are a lot of countries that rig the game.

ARMO: It wasn't fair. See, he had to take a hard stance. If he didn't take a hard stance...

CAVUTO: But with Canada? I mean, it's making syrup.


ARMO: He's taken a hard stance. And we are going to see what's going to happen. They need us just as much as we need them. And that's the truth.

SMITH: The other thing is, I think he understands one thing. He understands that, in the G7, in NAFTA, we're the big dog.

And he has shown the ability the one thing the past presidents have not done. He is willing to say, this isn't working, I'm walking away.

Oh, boy, it's like going in the car dealer and saying, you know what? The price isn't right. I'm leaving. They come running after you, please, buy the car.

CAVUTO: I have done that.



CAVUTO: And the say, we don't want you to be our customer.

All right.

ARMO: I live in New York. I don't need a car.

CAVUTO: Yes. Rub it in. Rub it in.

All right, guys, we will see what happens.

SMITH: All right.

CAVUTO: But, to their point, if the markets are rattled by all these nerve-racking developments or what would normally be considered nerve- racking, they have a funny way of showing it.

A lot more on that after this.

In the meantime, there is new video of James Wolfe leaving court. Now, he's the former Senate staffer indicted by the Department of Justice over these alleged leaks. And, man, oh, man, those leaks and who he was leaking to and then the I.G. report next week, you can't make this stuff up.

Well, even though a lot of people make stuff up -- after this.


CAVUTO: All right, this is pre-disinviting somebody. The president saying, no matter who wins the NBA finals, well, they are not getting an invite to the White House. Is that his call to make or is he making a point that others can't take?

After this.


TRUMP: It's very interesting that they caught a leaker and a very important -- and it's a very important leaker. So it's very interesting. I'm getting information on it now.

Happened last night. It could be a terrific thing. I know -- I believe strongly in freedom of the press. I'm a big, big believer in freedom of the press. But I'm also a believer in classified information.


CAVUTO: All right.

Well, the president talks about James Wolfe. That's a former Senate staffer indicted by the Department of Justice for lying to the FBI over intel leaks. And now we don't know who got those leaks and how many people shared those leaks. It's a soap opera here.

Attorney Troy Slaten on all these developments.

Troy, this is yet the latest wrinkle and will feed a narrative the president has long had that it's a rigged system and a rigged system going for him. What do you make of it?

TROY SLATEN, ATTORNEY: And it's also going to feed into arguments that there is a deep state of career people working in the government that are seeking to forward their own agenda.

This is really unsettling, because this is not just any Senate staffer. This is the guy that was director of security for the Senate Intelligence Committee. This is a big deal.

The Senate Intelligence Committee has some of the highest level of secrets in our government. That's why they have those rooms that -- where the glass goes opaque at the switch of a button, where they have their own servers. This is a really big deal, Neil.

CAVUTO: I like those offices where the glass goes opaque. I just think that is so cool.

But, leaving that aside, I'm wondering, how it is they, A, discovered the leaks, and then we keep hearing of them. I mean, it's a sieve there, and it's out of control.

SLATEN: Well, he had a personal relationship with a reporter who was working at the time for BuzzFeed.

CAVUTO: Right.

SLATEN: And they subpoenaed -- well, they didn't subpoena. They went and used national security letters and got copies of her e-mails from Google and the other service providers.

They eventually let her employer know that they had retrieved all her information. And then they interviewed him and asked him, did you ever divulge any information? He lied and said no.

And that's the problem. The cover-up is usually worse than the crime. This is the way they got Martha Stewart, Rod Blagojevich, and many others, Jeffrey Skilling at Enron. This is a big deal.

CAVUTO: You know, next week, we're also going to get the I.G. report on Comey and the Justice Department, on Barack Obama and Loretta Lynch, and the clumsy handling of that investigation and who knew what and when and shared what and when.

Where is this going to land us a week from now?

SLATEN: Well, who knows?

And we're waiting all with bated breath to see the I.G. report that the top brass at the Department of Justice has already had and is reviewing and is probably trying to make redactions, they will say, for national security reasons. There -- others will say that it's to do it to kind of protect their own butt and CYA.

But who knows? The reports are so far that that I.G. report is going to be scathing for not only Comey, but former Director McCabe.


All right. It's pretty clear that the president's former campaign manager is under the very watchful and increasingly more aggressive eyes of Bob Mueller, with a new indictment and talk among some in the Mueller staff that he even wanted to throw him in jail while we wait all of this out.

Where do you see this going? And do you agree with those who say, whatever it happening in the circle of people who used to be associated with then candidate Trump, that this still means that there is no target in one Donald Trump?

SLATEN: Well, it's hard to say where the special counsel is going.

With regard to Manafort, he has only been charged with financial crimes that really had nothing to do with his time as campaign manager or anything having to do with the Trump campaign or the election from 2016.

And as far as them wanting to throw him in jail, that has to do with allegations from prosecutors that he was engaged in witness tampering while he has been out on pre-trial release, therefore, violating the terms of his bond, his own-recognizance release.

CAVUTO: All right, thank you very, very much. We will see how this all goes and sorts out. But it could go a variety of ways, Troy. Thank you very, very much.

SLATEN: Thanks, Neil.

CAVUTO: All right, I want to give you the numbers on pardons.

Five, five for one president, 63 for another president. Those are pardons under a president at this stage of his presidency. You probably think that the 63 refer to Donald Trump. You're wrong. They are Ronald Reagan at this point.

The five, for all the hullabaloo about pardons, that's all Donald Trump has had.

More after this.



TRUMP: We have 3,000 names. We're looking at them. Of the 3,000 names, many of those names really have been treated unfairly.


CAVUTO: You know, for all the controversy surrounding the president and his pardons, he has not really pardoned that many people.

This, of course, the latest one being the sentence relief that he provided for Alice Marie Johnson this week. She was serving a life sentence over a nonviolent drug charge. And she thanked the president profusely.

But are we looking at this the correct way here?

Let's get the read from attorney Whitney Boan.

Whitney, I was surprised to see, as we look at this point in respective presidencies, that the president is actually pretty low on the totem pole when it comes to pardons. He has had five. But some presidents have had far more, like Bush Sr. at this point in his presidency or Ronald Reagan before that or Jimmy Carter or even Gerald Ford.


CAVUTO: Now, I know some his recent compatriots, not so much.

But they did make up for lost time in total of pardons as their presidencies ensued. So, why does this president get the attention he does?

BOAN: Well, I think that there's two separate issues here.

First is whether or not he is abusing the power in terms the number of pardons he is issuing or if he is commuting sentences in a disproportionate manner. That's a separate issue than whether or not people disagree with the substance of maybe why he is pardoning people or the people who he is choosing to pardon in terms of -- obviously, there has been a lot of controversy -- less so about Alice Johnson -- but about the sheriff from Arizona, in terms of his...

CAVUTO: Right.

BOAN: ... his flouting in the face of the judicial system and disregarding a court order.

So, I don't think it's odd in terms of the number.

CAVUTO: Well, I could say that also, though, about Marc Rich. You remember that famous pardon with Bill Clinton and all.

So, you are right. I mean, depending on the time and place, they can raise eyebrows. Normally, a lot of this is bunched up, oftentimes, not all the time, near the end of a presidency than the beginning.

BOAN: Right. Correct.

CAVUTO: But the president has already indicated this unique power that he has, he would like to address thousands of potential cases, even included Muhammad Ali.

But, of course, his family and the legal associates reminded him that the Supreme Court itself exonerated him. But what do you make of that?

BOAN: Right.

Well, what I make of it is this. We are in a day and time where everything our president does is being scrutinized. Prior presidents since Bill Clinton, basically since his administration, and then through G.W.'s and Obama's, they have slowed their pace in terms that they wait, like you said, until later in the presidency to start making these pardons, because they are kind of comfortably within their term.

We are only 504 days in here. And so you combine those factors and, yes, it seems like maybe this is a lot, but it's really not. It's more concerning, like you said, though, if he is talking about pardoning thousands of people.

I don't have any issue with it, as a criminal defense attorney, because I actually have some names.

And, President Trump, if you are watching, you can call me, and I will give you some more to add to that list of clients of mine who I would like to see receive presidential pardons.

But -- and then, certainly, there's a lot of people that have been treated unfairly. I just think it's scary to people, and maybe rightfully so. And maybe we just pay attention to the fact that he has this newfound power, and he is like a kid in a candy shop. And we don't want it to be that we are just throwing around pardons because we can.

We want it to have meaning. We want it to have significance. And we want it to be fair.

CAVUTO: In this latest case of this woman who was in jail for so long on a drug charge, do you think that was a justifiable release, commutation, I guess?

BOAN: Absolutely, absolutely.


BOAN: But where I am with it is, if we are going to have thousands of people pardoned -- and her sentence was commuted. She wasn't given a full pardon.

CAVUTO: That's right.

BOAN: The difference is, her sentence was mitigated and it was shortened. She is not not a convicted felon at this point. She is still a convicted felon.

A pardon is a whole other thing. You don't even have to be convicted of a crime to receive a pardon. A pardon basically gives you immunity from any further punishment as a result of a presidential pardon.

CAVUTO: That's the result of that. All right.

BOAN: Yes. Yes.

I would love to see people like Alice Johnson or people in her position receive pardons or commutations of their sentence. But if it's going to be other things, again, we will see how it plays out. But it's concerning.

CAVUTO: All right. Yes. We have started something here.

Whitney Boan, have a great weekend. Thank you very, very much.

BOAN: Thanks, Neil. You too.

CAVUTO: All right, remember when everyone was jumping ugly with the president over tweeting so many nasty things?

Well, now the people who are upset at him are tweeting some very nasty things -- after this.


CAVUTO: All right, one of the most popular segments on modern television.


CAVUTO: Kind of.

All right. I don't know if you saw this a little earlier. All smiles for the big photo-ops. You would never assume there are any problems.

But I got to tell you, at this G7 summit, the odd man out is the president of the United States. Now, that seems to be the way he likes it.

Let's get read from young and funky kids.

And we begin with Dion Baia, FOX News correspondent Lea Gabrielle. I don't know why she said yes, but so happy she did.


CAVUTO: We have also got Kat Timpf back with us, and Internet radio sensation and my friend Mike Gunzelman. They call him Gunz.

Dion, what do you make of this?

DION BAIA, FOX NEWS: I don't know.

He is getting into odd territory where he's tweeting about our allies. And then it's like openly airing our laundry -- or his dirty laundry about what's going on. And...

CAVUTO: But maybe that's a good thing.

What do you guys think? It's a good thing?

MIKE GUNZELMAN, INTERNET RADIO HOST: Well, I think it's Trump being Trump.

And we have come to expect this by now. And the only reason they are mad at us is because his policies and everything, the tariffs are helping us, and they are affecting their -- you know, Macron in Canada and Germany, their economies.

So I don't care as long as our president is looking out for ourselves.

KATHERINE TIMPF, FOX NEWS CONTRIBUTOR: And no one should be surprised by this, because although Donald Trump has been kind of all over the place on a lot of issues, he has been very consistent on tariffs.

We shouldn't be surprised to see that has been doing this. And it doesn't really matter what I think. It doesn't matter what Macron thinks. It doesn't matter Justin Trudeau thinks. He is not going to change his mind.

CAVUTO: But you do this with your friends?

LEA GABRIELLE, FOX NEWS CORRESPONDENT: Yes, I think that this is a president who promised to bring his business style to the White House. And I think this is where he is most comfortable.

I think he likes to do this. The only problem here is that, in sort of the free market, you can always walk away from a deal, because you can just find another company to do the deal with.

But you can't just say, oh, well, I'm just going to find another Canada to deal with right now.

So, I think that that is the challenge here, is that this is a different kind of deal that he is doing with countries, rather than with companies. But I think that that's just the way he likes to run things.

CAVUTO: I wonder if we spread ourselves too thin? You never have relatives who seem to fight with everybody?

GUNZELMAN: Right. There is always that one person that just wants to go at everybody.

BAIA: Yes, but if they have a valid point, in fact, if the facts back up what he says about...


CAVUTO: He has as lot of legitimate...

BAIA: Yes.

CAVUTO: I have looked into these numbers. He has a lot of legitimate beefs with these guys.

But we are also dealing with China. We are also dealing with Korea. You got to pick and choose.

GABRIELLE: Well, people are worried that we are isolating ourselves from our friends.

But I will say this. So many of our relationships with our allies come down to our defense with them and the relationships that were forged through common defense.

And I will tell you, our allies, they are going to be there for us when they need us. They are going to be our friends when they need us. And...

CAVUTO: You are very young to be so jaded, yes, but you're probably right.


BAIA: Historically, too.


BAIA: I'm sure not everyone has seen eye to eye historically. And maybe, in keeping up appearances, they do in front of the cameras, and then behind the scenes...

TIMPF: There's nothing anyone can do to change this, clearly. He is going to keep tweeting, whether you like it or not.

CAVUTO: But let me -- I would be remiss if I didn't mention this, because he's also fighting over the people who come to the White House or don't come to the White House.

The NBA championship, of course, isn't over. This is the basketball one?


CAVUTO: Anyway, the president has already had this to say about a potential White House visit from the winning team. Take a listen.


TRUMP: I didn't invite LeBron James. And I didn't invite Steph Curry. We are not going to invite either team.

But we have other teams that are coming. My attitude, if they want to be here, it's the greatest place on Earth. I'm here. If they don't want to be here, I don't want them.


CAVUTO: What do you think of that?

GUNZELMAN: Well, you know, I agreed with Trump, the president, on a lot of things, but here I'm kind of -- I don't think the whole team should be penalized just because -- or punished just because of a couple players.

Like, last year, when the Astros won, you had Beltran and Correa, they both didn't go to the White House to be honored, but the rest of the team went.

So, just because have you an outspoken LeBron and Steph Curry doesn't -- or Steve Kerr as well -- I don't think that should hurt the other players from being honored. It's a privilege. Just because you don't agree with the president doesn't mean that you don't respect the office of the president.

CAVUTO: So, whose fault is it?

BAIA: I think it's guilty by association.

You have the most outspoken people on the team saying these things, and Trump is going to take it to heart. And then he's going to then say, well, you know what? No one is coming then. You have ruined it for everybody. Everybody, out of the pool.

TIMPF: He probably just didn't want to deal with it. He kind of -- I'm grateful that we have avoided the whole -- a whole news cycle of people saying, oh, I'm not going to go to the White House.

CAVUTO: Well, don't worry. You're not invited.

What do you make of that?

TIMPF: Yes, exactly. He said, well, you are not invited.

Just I know it's a traditional thing, but just like he doesn't go to the White House Correspondents Dinner, he's just trying to nip things in the bud and keep from having to deal with these issues.

GABRIELLE: I think that's true.

And I think that, if any of these players were like, oh, I really, really want to go to the White House, I think he would be like, come on. Come have dinner at the White House.


GABRIELLE: But who wants to have somebody over to their house for dinner if they don't want to be there?


CAVUTO: Like, if you knew Gunz was coming, wouldn't you by definition not...


GUNZELMAN: I'm a whole lot of fun, I swear.

BAIA: He is nipping it in the bud. He's like, you know what?

GUNZELMAN: You know what? I don't know want to even go.

BAIA: I'm not even going to put the spread out.


CAVUTO: This reminds me of life on Mars. See the segue there?

TIMPF: Great transition.

GUNZELMAN: You're good at this.

CAVUTO: Thank you.

Anyway, apparently they have been investigating. And this rover, this has been traversing the lunar -- I'm sorry -- the Martian surface now for the better part of five, six years.

Anyway, they seem to have indicated, NASA, that it's discovered the elements that have been there for life billions of years ago. It's a big deal. We're sending up another capsule that is going to actually burrow inside the planet.

We always look for life up there. And now there are indications, at least at a time, it might have had it.

BAIA: I think this is great. I think hopefully will kick-start the whole NASA whole program again and get us back at the forefront, because with the last administration kind of relegating NASA to like solve what was happening with like car crash problems...


CAVUTO: But we don't give up with Mars, do we? Mars is the place.

GABRIELLE: No, we got to keep going.

And, in fact, I called my good buddy Buzz Aldrin on this one, because he is the self-proclaimed...


CAVUTO: The second man to walk on the moon.


GABRIELLE: But I did call him. And he said, look, when you -- he said, we have got to explore. If we don't explore, we expire.

And he is really passionate about getting a manned mission to Mars and getting people back in space, and also about the U.S. taking leadership again.

CAVUTO: But life, about life, the search for life.

TIMPF: It's not just NASA either.

We have all these billionaires. It's like, as soon as you become a rich dude, all you want to do is go to space. I don't understand that at all.

CAVUTO: It's their money.


GUNZELMAN: I just want to send Nancy Pelosi there. Get her out.


GUNZELMAN: She looks like an alien anyway.

CAVUTO: Everything comes back.


CAVUTO: All right.

BAIA: But you think of other -- OK. That means for me to be quiet.



CAVUTO: Well, that finished thought on "Cavuto Live" tomorrow at 10:00 a.m.

He comes back to finish it.

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