AND AS THE LEGISLATURE STARTS THEIR SPRING BREAK, WE'LL LOOK AT WHERE THINGS STAND AT THE CAPITOL.

>> Eric: WE START TONIGHT WITH WHAT HAS BEEN HAPPENING IN THE U.S. CAPITOL THIS WEEK.

PRESIDENT TRUMP HAS DELAYED MANY OF HIS TARIFFS IMPOSED LAST WEEK EXCEPT AGAINST CHINA SO A WORLDWIDE TRADE WAR IS STILL IN PLAY WITH CHINA RAISING TARIFFS IN RETALIATION.

BOTH THE U.S. SUPREME COURT AND CONGRESS HAS BEEN BUSY AS WELL.

CINDY RUGELEY MADE THE DRIVE DOWN I-35 TO JOIN US.

SHE HEADS UP THE POLITICAL SCIENCE DEPARTMENT AT UNIVERSITY OF MINNESOTA DULUTH.

THE UNIVERSITY OF MINNESOTA'S TWIN CITIES CAMPUS IS HOME TO LARRY JACOBS, WHERE HE HEADS UP THE HUMPHREY SCHOOL'S CENTER FOR POLITICS AND GOVERNANCE.

WELL, PROFESSOR, HOW DOES TARIFF HUBBUB EVOLVE OR DEVOLVE INTO A POLITICAL ISSUE FOR 2026.

>> I MEAN, I THINK IT'S GOING TO BE A BIG ONE.

I THINK ON TWO FRONTS, ONE, IT'S GOING TO DRIVE UP COSTS IF IT KEEPS GOING THE WAY IT IS.

AND SECONDLY WHEN YOU SEE THE BOND MARKETS TAKING A TANKING, YOU'RE SEEING BIGGER PROBLEMS.

SO, YOU KNOW, I THINK THAT IT'S POSSIBLE THAT INTEREST RATES ARE GOING TO GO UP AND IT'S GOING TO BE A BIG ISSUE.

AND IT'S ON THE PRESIDENT AND THE REPUBLICAN PARTY.

IT'S NOT SOMETHING THAT CAME BECAUSE OF ANYTHING ELSE BESIDES CONSCIOUS DECISIONS.

>> Cathy: IT LOOKS LIKE APPROVAL RATINGS FOR THE PRESIDENT ARE SLIPPING.

WHAT DO YOU THINK OF THAT?

>> I THINK THIS IS A BEGINNING OF A SLIP.

THE PRESIDENT STARTED WITH A BIT MORE THAN 50% APPROVAL RATINGS AND IT'S NOW OWN FIVE OR SIX POINTS DEPENDING ON WHERE YOU'RE LOOKING.

AND IT WILL CONTINUE TO GO DOWN BUT BECAUSE WE'RE SO DIVIDED BY PARTY IT'S NOT GOING TO GO DOWN A WHOLE LOT MORE, HE'S GOT KIND OF A FLOOR UNDER HIM.

I THINK THE CHALLENGE IS THE ISSUE CINDY'S RAISING IS THE TARIFFS AND INFLATIONS AND THE STOCK MARKET AND NOW THE BOND MARKETS WHICH IS VERY UNSETTLING.

THAT'S GOING TO HAVE AN IMPACT AS WE HEAD TOWARDS 2026 ELECTIONS.

CHARLIE COOK CAME OUT TODAY AND WAS STARTING TO PARSE WHAT THIS WOULD MEAN AND HE'S PROJECTING THAT THE REPUBLICANS WILL LOSE THE MAJORITIES IN THE HOUSE BY SOME MARGIN, AND THAT EVEN THE MAJORITY THAT THE SENATE REPUBLICANS HAVE COULD BE ENDANGERED NOW BECAUSE OF THIS ECONOMIC UNCERTAINTY.

>> SO THAT REALLY COULD BE A POLITICAL LIABILITY FOR REPUBLICANS.

>> YEAH, IT COULD BE.

AND I MEAN IT'S MORE THAN JUST THE IMPACT OF THE TARIFFS THEMSELVES, IT'S JUST THE UNCERTAINTY AND PEOPLE NOT KNOWING WHAT'S GOING ON, THE CHAOS.

>> Eric: U.S. HOUSE AND U.S. SENATE ARE WORKING ON DIFFERENT VERSIONS OF A BUDGET BILL AND IT SEEMS LIKE THEY'RE A LIF OUT OF WHACK, NOT EASILY PUT TOGETHER.

HOW THAT GOING TO EVOLVE?

>> FIRST I THINK THE REPUBLICANS GET A WIN THIS WEEK BECAUSE THE HOUSE DID PASS A BUDGET BLUEPRINT.

WHAT THIS MEANS IS THAT THE SENATE REPUBLICANS CAN MOVE FORWARD WITHOUT WORRYING ABOUT THE FILIBUSTER.

SO KUDOS TO THEM, THEY DO IT.

NOW THE HARD WORK REALLY BEGINS BECAUSE THEY HAVE TO PUT TOGETHER ACTUAL BUDGET, AND THERE ARE DEEP DIVISIONS WITHIN EACH CHAMBER BETWEEN THE TWO, AND IT'S GOING TO COME DOWN TO THE FACT THAT REPUBLICANS WANT TO CONTINUE DONALD TRUMP'S 2017 TAX CUTS.

>> Eric: THEY'RE IN PLACE NOW.

AND END OF THE YEAR THEY WOULD CONTINUE.

>> THEY WOULD CONTINUE UNDER THIS LEGISLATION PROPOSAL.

AND THEN THEY WOULD TO ADD MORE TAX CUTS AND DONALD TRUMP HAS IDEAS WHAT THAT WOULD LOOK LIKE.

CONGRESSIONAL REPUBLICANS DO.

PLUS THEY WANT TO PUT QUITE A BIT OF MONEY INTO THE MILITARY, INTO THE BORDER, AND OTHER AREAS.

SO HOW ARE YOU GOING TO DO THE MATH.

NOW, YOU'VE GOT ONE GROUP SAYING WE'VE GOT TO REALLY CUT SPENDING LET'S SAY ON MEDICAID, YOU'VE GOT ANOTHER GROUP SAYING HOW DARE YOU DO DEEP CUTS IN MEDICAID.

SO THAT'S GOING TO BE APE BIG SPLIT.

MEANWHILE THE CONGRESSIONAL BUDGET OFFICE WHICH IS THE SCOREKEEPER, CAME OUT AND SAID, WELL, WITH REPUBLICANS ARE TALKING ABOUT WILL ADD $6 TRILLION TO THE DEFICIT.

SO NOW GOOD LUCK TO THEM.

>> Eric: THE NO TAX ON TIPS, NO TAX ON OVERTIME, WILL THAT STUFF SURVIVE?

>> I DON'T THINK SO, NOT UNLESS THEY FIND SOME WAY TO, I MEAN AT ONE POINT THE PRESIDENT WAS EVEN TALKING ABOUT RAISING THE TOP TIER OF THE, TO COVER THEM, BUT, YOU KNOW, I THINK IT'S GOING TO BE TOUGH TO KEEP THE TAX WHERE IT IS.

AND THEN PUT IN PLACE THOSE -- YOU KNOW, IT'S ALSO KIND OF HARD TO KEEP TRACK OF.

THERE'S A LOT OF TECHNICAL FEASIBILITY AT PLAY.

>> Cathy: THERE'S A LOT TO KEEP TRACK OF HERE, IT JUST CHANGES EVERY MINUTE.

I'M WONDERING AS WE TALK ABOUT WHAT'S HAPPENING IN CONGRESS AND WHAT THE PRESIDENT IS DOING, WHAT'S THE ALTERNATIVE THAT DEMOCRATS ARE OFFERING?

WHAT ARE YOU HEARING?

>> WHAT THEY'RE SAYING IS WE'RE NOT THE REPUBLICANS.

I THINK THE DEMOCRATS -- >> Cathy: IS THAT GOOD ENOUGH?

>> WELL, DEPENDS WHO YOU ASK.

I MEAN, THEY DON'T REALLY HAVE AN INDEPENDENT MESSAGE.

YOU KNOW, DONALD TRUMP I THINK HAS BEEN VERY EFFECTIVE IN HIS DIAGNOSIS OF THE PROBLEM AND SPEAKING TO THE ANGST AND THE RESENTMENT OF SO MANY AMERICANS.

HIS SOLUTION TO IT IS NOW VERY CONTROVERSIAL AND THE TARIFFS OBVIOUSLY ARE GOING THROUGH SOME TOUGH TIMES NOW.

THE DEMOCRATS ARE HAVING A HARD TIME JUST SPEAKING TO THAT RESENTMENT AND ANGER.

INSTEAD THEY GO STRAIGHT TO THE POLICY IDEAS AND GET VERY WONKY.

I DON'T THINK THEY HAVE PUT TOGETHER THEIR PLATFORM.

THERE ARE A LOT OF DIVISIONS YOU'RE SEEING YOUNGER PROGRESSIVE DEMOCRATS, THEY'RE NOW CHALLENGING LEADERSHIP.

YOU KNOW, LEADER SCHUMER IN THE SENATE IS NOW POSSIBLY GOING TO BE LOOKING AT A PRIMARY CHALLENGE TO HIS REELECTION.

AND THAT'S GOING TO HAPPEN, WE'RE GOING TO SEE I THINK SOME OF THE DEMOCRATIC SENIOR LEADERSHIP BEING CHALLENGED BECAUSE OF THIS ANGST.

SO, O, I THINK THE DEMOCRATS DON'T REALLY HAVE A RESPONSE OTHER THAN WE'RE NOT THEM.

>> Cathy: DO YOU AGREE?

>> I AGREE TOTALLY AND I MEAN, I THINK WE'RE IN THE MIDST OF A GENERATION SHIFT AND I THINK IT'S GOING TO BE VERY DRAMATIC.

>> Eric: IS HERE ANY TRACTION FOR THE ISSUE OF MEMBERS OF CONGRESS INSIDER TRADING?

I'VE HEARD A COUPLE OF MEMBERS BRING THAT UP, I THINK TIM WALZ WHEN HE WAS IN THE HOUSE I THINK EVEN BROUGHT THAT UP AT ONE POINT.

>> EAH, IT'S BEEN AN ONGOING ISSUE.

>> Eric: IS IT SERIOUS?

IS SOMETHING GOING ON A LOT?

>> YES.

I MEAN, YES, YOU KNOW, IT'S HAPPENING, WHETHER IT'S ILLEGAL IS THE QUESTION.

AND SORTING THAT OUT OF COURSE HAS BEEN DIFFICULT OVER, YOU KNOW, IT'S BEEN A COUPLE DECADES AT LEAST.

THE BIG ISSUE THIS PAST WEEK IS DONALD TRUMP SAID ON HIS SOCIAL MEDIA SITE SOCIAL TRUTH, IT'S A GREAT TIME TO BUY.

>> Eric: SIGNAL?

>> YEAH, SIX HOURS LATER.

>> SIX HOURS LATER HE PAUSED HIS TARIFFS FOR 90 DAYS AND THE STOCK MARKET WENT UP 9% SO, YOU KNOW, A NUMBER OF DEMOCRATS ARE ACCUSING HIM OF INSIDER TRADING AND SO FORTH.

GOOD LUCK FINDING EVIDENCE OF THAT.

>> Eric: ARE THEY SHOCKED THE GAMBLING IS GOING ON IN THIS ESTABLISHMENT?

>> SHOCKED.