negotiations with the chinese to see if we could reach an agreement, as the president said, we want to cut the trade deficit 100 billion over the next year, i m cautiously hopeful we will reach an agreement, if not we are proceeding where the tariffs. kelly: the president s national security adviser john bolton says china has taken advantage of being the second biggest economy following the u.s. all we are asking for here is for the chinese to do the same. so i think this could be a little shock therapy, get their attention and hopefully it ll have a good impact. kelly: in the wake of the president s announced tariffs on china plus on steel and aluminum, the stock market dropped 700 points on thursday, mnuchin down plays the stock fluctuations. i think the most important thing to focus on is the market will go up and down in the short term, the real important issue is where would it be longer term and the market is still up enormous amount since the