Watch CNBC's full interview with Steve Bannon on the trade war and 2020

let's welcome Steve Bannon former White House chief strategists Steve's known as an architect of many of president Trump's america-first policies you were there then I know you still talk to the president I'm just his top student Hopstop Steam Internet he meant to that me I'm his best student well either you have insight into how he's thinking or maybe you've actually influenced some of his position okay you at least have an idea of what he's thinking on certain things and you have your own idea and I think I know what as default positions are okay look I think a lot of this what you're hearing coming out of Beijing is wishful thinking I think what they're trying to do in a lot X to a large extent is trying to game the system they're talking about a two-step deal and if you really look down below it they're talking about you know maybe we break off part it may be 80% of the stuff was covered in light Heiser's deal but we we shove everything else off to something else I think the security stuff yeah yeah yeah this is this is this is this is they're trying to box in Donald Trump and I think Trump has been the force of stability here he's been on point in this thing he said look the light has a deal was 18 months in negotiation it dealt with a major restructuring of the Chinese economy to integrate it into the world economy it's got those seven verticals that they have to address the tariffs are part of that but remember this is an economic war that Beijing has run against the West for 20 years download from stood up to this and I think if you really listen to President Trump and you listen to light hyzer they're talking about really we're staying on track on the major deal we're not gonna we're not going to be gained by some two-step process in terms of the timing who's got I mean III know the president thinks the president Trump thinks he has the leverage and he may actually from a rational perspective but you could also make the argument that the Chinese are willing to take the pain that you look the Chinese that I think President Xi said to a council inside of Beijing hey we can eat grass for three years and we have to we're very tough we did the long march but the reality is and this I think the major shift in the Overton Window that President Trump has had we're not the declining power he was elected president I States because the elites in this country had treated us this facilities trap the Henry Kissinger Graham Allison that were the declining power there the rising power we have all the cards remember in this economic war the trade is just one part of it we have a currency part we have a technology part we have a we have a capital markets part you're gonna have you're gonna have the head of the SEC on on today and I hope that you start to really ask Jay Clayton from Sullivan & Cromwell some tough questions on sarbanes-oxley and other regulations that are on American companies emerging growth companies but are not on Chinese companies so this this war economic war has many aspects to it Trump has been I think the Rock of Gibraltar on this he's been so so stable and saying hey here's what we want and remember there's a big reformist element inside of China that worked with light hyzer and Peter Navarro for 18 months to get they understand they have to restructure this economy a major way we had the former Prime Minister of Australia ride on with us Kevin Rudd on with us earlier this week and he said the the hardliners are circling right now in China he thinks they may be in the u.s. too but especially in China and there's these two camps between what you mean what you mentioned the those who are willing to go ahead and make a compromise and the hardliners he said if we don't figure something out probably by the end of the year you're it's going to be a long time a long time coming because after the beginning of the year both sides have things that they have to start worrying about in the immediate future the election I do agree I think this is why when they looked at the deal in May I think a number of the Hawks I think led by one Shi Shan and others looked at this and said hey this is a surrender to the west they're basically between transparency accountability and enforce ability which is the the tripod that this deal is based upon we can't sign this I happen I think that this is that long-term process we're gonna be in this this kind of armistice about this economic war I think for a long time but here's the thing knowledge Trump changed the dialogue I think he's opened up to the world that the United States the American capital markets American companies the American market is where you want to be this is a this is a safe haven this is a than the protest in Hong Kong and listen what's gonna I mean that's that that wasn't happening when the deal broke down in April if people if people think that Millennials are just you know no-accounts look what's happening in Hong Kong these are young kids on the street fighting a totalitarian regime for capitalism right and if you see how they're taking you know they're being gassed they're being tear gassed that having rubber bullets shot at them they actually testified on Capitol Hill this week the mainstream media is focused on Corey Lewandowski and the circus of this of this impeachment process but at the same time you had Joshua Wong and others these young kids from Hong Kong on Capitol Hill talking about it Beijing does not want to address I think Hong Kong is the key that picks a lock so far president Trump has I think it's been appropriate he's risen above that so they can't blame him on being the black hand of the CIA in back of it and not seeing that this is really an uprising of the Hong Kong people for the rule of law but if you want to see look the great story in the first half of the 20th century I think it's gonna be the freedom of the Chinese people the Chinese people the most hard-working in the world only they can bring their freedom but we have a totalitarian regime that's about to celebrate their 70th anniversary that's not an anniversary the United States should be celebrating right they that that regime has killed more people than any regime in history but do you understand the president pushing off the additional tariff hikes to the 15th so as to offer I guess some goodwill in the negotiations so it's not on the anniversary of this yes Becky I think look he has gone out of his way to be accommodating and trying to do something that he's trying to do something that actually works for the Chinese that deal of light Heiser's and Peter Nevarez was very systematically thought up to integrate them into the world economy and to really free that Chinese people have essentially been slaves in the manufacturing process I think it's foresight and I think just Trump's just been the rock and I think all this happy talk there's gonna be a two-step deal they're gonna buy a few more soybeans Trump I think has been very adamant that hey there's a deal on the table we want to go back and start looking at that deal and one thing I think the Chinese are going to do is what the Shanghai communique one of the things tricks I think they're going to pull is that is to try to get some deal that's so general go back to the original deal but it in language is so general it can be interpreted by both sides I don't think Trump I don't think Trump takes the bait on that either remember the CCP they are experts in barbarian management right they know how to incentivize elites and tributary country I'm sorry I just got to get the is Warren the the prospective nominee at this point or is it still Biden injured I don't I don't agree with matt drudge yet but I think if you look today if you look personally and Matt's got a tremendous sense of news but if you look at if you look at her speech down here at Washington Square Park which was quite dramatic it's really Trump light I mean now we're seeing if that's the case you're going to have populist nationalism versus populist socialism she's taken many of the her speeches really Trump light into the fact taking Peter Switzer my partner government accountability and talking about the stock act and insider trading and things like that so she's I think she's clearly defined where the energy is I think Biden because of China and I think this is why Trump has shifted this discussion and China is going to be the framing device for the 2020 election the geopolitical concerns of the nation that was my question though do you believe that the Trump base looks at China the way you look at China which is to say if you're a far more soybean farm or anybody else in the middle of the country I think there's a lot of people I imagine maybe I'm wrong I think you're gonna probably disagree with this assessment I would imagine that they can think about it theoretically but beyond that they're looking at their own their own wallet and saying I don't know I think it's the exact opposite I think when he saw American in decline we went to the this is how we pierced the blue the blue wall if you go to Pennsylvania and Michigan and Wisconsin you don't have to come to New York early I have to actually walk people through why this why you know Schwartzman now has religion on CNBC he says oh yeah they've had 20 years they've been doing this right so the Wall Street's starting to get religion like Trump on the campaign if you go up there people know the factories and the jobs all went to China and the fenton on opioids came in into this despair of not having jobs so you can speak in shorthand in Michigan and Wisconsin Pennsylvania Ohio and Iowa the Upper Midwest this is why Donald Trump's president remember immigration was an issue but we would go to the Upper Midwest it wasn't so much built and we build the wall is where the jobs bring the jobs back and that's it what this is about this is about shifting the supply chain back United States it's why USMC a nobody's talking about it that's the first strategic what Trump's done just this weekend he's got the the the Mexican Canada deal u.s. MCA which makes us a geostrategic manufacturing base North America with Mexico you've got the India deal he's talking about in Japan the pieces on the chessboard are coming together and this is the industrial democracies now working together doing what the critics have been saying all along he should have done even the ones who agree it should be tough on China get the rest of the globe together to be on your side this is why they say get the Allies together look at Trump even on Iran what he's saying I think where he's going on Iran is a full economic boycott and economic you know economic and beyond economic sanctions I think you're gonna start to her medically seal off Iran from all capital markets I think it's going to be part of the China's the discussion I think China's got China is going to have to it's going to be a quarantine and I think Trump he's everybody wants him to be John Wayne right President Trump is strong enough that he doesn't have to be John Wayne he looks at this as a businessman he knows these sanctions are just the first step he can go further you can start to hermetically seal off Iran from food from from loans from everything and I think it's gonna be part of the Chinese discussion China's got a four hundred billion dollar deal with them on oil I think they have between a ten to fifty billion dollar credit line this is all gonna be put on the table as he starts to ratchet up this is one of your quotes the 2020 campaign will go down as the most vitriolic and nastiest in American history it's very simple which when you say we you're talking about the Trump if we win we save the country the the margin of victory in some of the swing states in 2016 was was fairly narrow was it not early now we drew an inside straight it's seventy nine that what's votes it's seventy nine thousand votes in five count how does it go out of the hand being dealt right now in the swing states look for the president gonna be a grind president Trump has got to get these swing states in luck Arizona's in play North Carolina's in play this is going to be a grind he's got the entire mainstream media apparatus when I said vitriolic as before the Civil War in 1860 look at the Cavanaugh thing a op-ed in The New York Times that may have not been edited properly you've got presidential candidates getting the bid right away we got it in peachy we've got impeaching a Supreme Court justice this is look at President Trump look at the Corey Lewandowski fiasco the day you've got Joshua Wong and these young people from Hong Kong testifying mainstream media don't want to cover it because they're all about the impeachment hearings right this thing is going to get so nasty that I think a lot of people are just going to say that this is too much but you know president Trump's a closer that's why we won in 16 he closed Hillary Clinton didn't we won quite frankly with very thin margin but it's not in the bag oh it's definitely not in the bag this is gonna be this is gonna be a very tough president Trump's knows that he that's what he's very focused his efforts he's he understands that no look you could have a Reagan type victory if things go your way but I think it's sticking to what the program is sticking to his policies that's why China's gonna frame this you can already start to see well Biden's weakness and look at look at Elizabeth Warren one of the reason I think Kamala Harris has dropped is she's been kind of all over the map on China you know Elizabeth Warren gives you she came of the white papers she's now trying to become she's trying to get to the right of Trump like Marco Rubio and others on China and I think China's the framing device I was it means bringing back manufacturing jobs at the Upper Midwest that love her or hate her policy she's genuine and sincere about her belief in this process , Harris I was never sure whether she it was really that sure so that's I think what the board might be formula but before but the people going to make a decision in an era where you've got the mullahs you've got this situation the Persian Gulf I've got I think just as tough a situation in the South China Sea you've got China now working with Pakistan working with Iran working with Turkey working with Russia you see the Eurasian landmass do you who do you want as commander chief you want Donald Trump that's very stable and Wretch's up or Elizabeth Warren the American people going to make that decision thank you at onset this time thanks thanks for having me guys thanks thank you you you

Channel: CNBC Television

Views: 112,017

Keywords: Squawk Box U.S., CNBC, business news, finance stock, stock market, news channel, news station, breaking news, us news, world news, cable, cable news, finance news, money, money tips, financial news, stock market news, stocks

Id: wLzkP_wBJT0

Length: 12min 47sec (767 seconds)

Published: Thu Sep 19 2019