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THIS IS "BALANCE OF POWER" LIVE FROM WASHINGTON, D.C.. PRES. TRUMP: CANADA TREATS US VERY BADLY AND PEOPLE LAUGH OFTEN TIME. THEY'LL ASK ME, WHO WAS THE WORST TO DEAL WITH ON TRADE? I SAY, THAT'S EASY. CANADA. THEY HAVE THE WORST. AND THEY FEEL ENTITLED. AND WE CAN'T HAVE THAT. JOE: LAKE AMERICA. PRESIDENT TRUMP SIGNING AN ORDER RENAMING LAKE ONTARIO FOR THE U.S. GOVERNMENT, ESCALATING HIS TRADE FEUD WITH CANADA AFTER NEGOTIATIONS COLLAPSE AND HIGH-LEVEL TALKS TO GET TO RESUME AND A PROLONGED DISPUTE COULD RAISE COSTS FOR CONSUMERS TWO MONTHS BEFORE MIDTERM ELECTIONS.

PLUS, WHERE'S THE BEEF? TRUMP TEMPORARILY LOOSE TARIFFS ON IMPORTS IN A BID TO LOWER PRICES FOR CONSUMERS, WITH THE MOVE IS STRONG BACKLASH FROM RANCHERS AND RURAL STATE REPUBLICANS CREATING A NEW POLITICAL RISK THE GOP AHEAD OF NOVEMBER. WE WILL DISCUSS THE INDUSTRY WITH THE TEXAS AGRICULTURE COMMISSIONER, SAID MILLER. TEXAS HOLD 'EM. PRESIDENT FROM HEADING TO HOUSTON FOR AN RNC FUNDRAISER WHERE HE IS EXPECTED RALLY SUPPORT FOR REPUBLICAN SENATE NOMINEE KEN PAXTON.

THE VISIT COMES AS DEMOCRATS GROW MORE HOPEFUL ABOUT JAMES TALARICO'S CHANCES IN TEXAS. A LONGTIME REPUBLICAN STRONGHOLD MORE FIRMLY ON THE MIDTERM MAP. FROM WASHINGTON DC STUDIOS TO OUR TV AND RADIO AUDIENCES WORLDWIDE, WELCOME TO BALANCE OF POWER. I'M JOE MATHIEU. TYLER: WE BEGIN AT THE WHITE HOUSE WERE PRESIDENT TRUMP LEFT FOR HOUSTON, TEXAS WHERE HE IS SET TO HEADLINE A CRITICAL FUNDRAISER FOR IT IS TYPICALLY A SAFELY REPUBLICAN-HELD SENATE BUT HAS QUICKLY BECOME COMPETITIVE.

PRES. TRUMP: WE'RE WORKING VERY HARD. WE WANT TO WIN THAT RACE. WE HAVE A GOOD CANDIDATE, KEN PAXTON. HE IS RUNNING AGAINST TAL I-FREAK-O BECAUSE HE IS FREAKY AND HE DOESN'T REPRESENT THE VALUES OF TEXAS. I REPRESENT KEN PAXTON I WAS BEEN A LOT OF TIME IN TEXAS. TYLER: THE LATEST PULLING OUT OF TEXAS KNOWING DEMOCRATIC CANDIDATE JAMES TALARICO PULLING AHEAD OF KEN PAXTON WITH THE PRESIDENT'S VISIT SERVING AS A FRESH TEST OF HIS POTENTIAL POLITICAL SWAY.

KATE SULLIVAN JOINS US AT THE WHITE HOUSE FOR MORE. HOW MUCH OF A BOOST COULD PRESIDENT TRUMP GIVE KEN PAXTON AT THIS POINT IN THE RACE AND HOW IS THIS UNDERSCORE INC. WHERE GOP RESOURCES ARE GOING CONSIDERING THIS IS NORMALLY A RELIABLY RED SEAT? KATE: DEMOCRATS ARE PRETTY HOPEFUL NOW. A DEMOCRAT HAS NOT WON STATEWIDE OFFICE IN TEXAS IN MORE THAN 30 YEARS. POLLING IS SHOWING THIS RACE IS QUITE CLOSE PEER THEY FEEL THEY HAVE A GOOD CHANCE.

THE PRESIDENT IS ON HIS WAY NOW TO HOUSTON, TEXAS AND WILL HEADLINE THE REPUBLICAN NATIONAL COMMITTEE EVENT TONIGHT, FUNDRAISER, LOOKING TO INJECT SOME CASH INTO KEN PAXTON'S CAMPAIGN, RUNNING AGAINST DEMOCRAT JAMES TALARICO. THERE'S A LARGE DISPARITY NOW WHEN IT COMES TO THE CASH ON HAND THAT THEY HAVE. THE JUNE FILING SHOWED KEN PAXTON HAD ROUGHLY 2 MILLION CASH ON HAND COMPARED TO TALARICO'S $21 MILLION. WE WILL SEE.

TRUMP IS LOOKING TO GIVE KEN PAXTON OF BOOST. OTHER REPUBLICAN CANDIDATES IN THE STATE AHEAD OF THESE CRITICAL MIDTERM ELECTIONS. JOE: THE PRESIDENT HAD TEXAS ON HIS MIND BUT CANADA, A DIFFERENT BORDER, WITH A COUPLE OF STORYLINES. HE HAS TAKEN PEN TO PAPER -- OR SHARPIE -- TO RENAME LAKE ONTARIO LAKE AMERICA. I GUESS AT LEAST IN TERMS OF THE U.S. GOVERNMENT USING THAT LANGUAGE. BUT ALSO REPORTING THAT CAME FROM THE USTR IN ANY INTERVIEW WITH FOX NEWS, THEY WERE THINKING ABOUT BANNING SOME CANADIAN GOODS.

THIS OBSESSION IS NOT OVER? KATE: DEFINITELY NOT OVER AND IT LOOKS LIKE THE TENSIONS WITH CANADA AND THE TRADE WAR ARE NOT GOING TO EASE ANY TIME SOON. I THINK THE COMMENTS THAT GREER MADE THIS MORNING WERE ESPECIALLY HELPFUL TO UNDERSTAND WHERE WE ARE THIS -- WHERE WE ARE RIGHT NOW. TALKS REMAIN SUSPENDED AND THERE'S NOT AN OPEN CHANNEL WITH HIS COUNTERPART. HE SAID THE U.S. IS CONSIDERING OUTRIGHT BANNING SOME CANADIAN GOODS.

HE EVEN ACKNOWLEDGED, HE SAID, WE'VE NEVER DONE THESE BANS. IT IS QUITE EXTREME, BUT MAYBE WE NEED TO. RIGHT NOW ARE JUST HEARING A LOT OF THREATS FROM THE PRESIDENT AND USTR RIGHT NOW IN TERMS OF WHERE THE U.S. AND CANADA, WHERE THINGS ARE HEADED. IT DOESN'T LOOK LIKE TENSIONS OR EASING ANYTIME SOON. TYLER: THESE ARE QUESTIONS THE WHITE HOUSE PRESS SECRETARY GETS QUERIES ABOUT EVERY DAY FROM REPORTERS OVER WHERE YOU ARE.

TODAY IS KAROLINE LEAVITT'S LAST DAY. WHAT WE KNOW ABOUT REPLACEMENT PLANS FOR HER OR ANYTHING THE PRESIDENT HAS PLANNED AS SHE DEPARTS FROM THE POST? KATE: KAROLINE LEAVITT HAS BEEN SERVING AS PRESS SECRETARY SINCE TRUMP TOOK OFFICE AND TODAY WAS HER LAST DAY. WE DON'T AT THIS POINT KNOW WHO IS GOING TO TAKE OVER FOR HER. THAT DECISION HAS NOT BEEN MADE. WHEN KAROLINE LEAVITT WAS ON MATERNITY LEAVE, WE SAW A ROTATING CAST OF CHARACTERS IN THE BRIEFING ROOM.

WE HEARD FROM THE VICE PRESIDENT, SECRETARY OF STATE, TREASURY SECRETARY. THEY TOOK TO THE PODIUM IN THE BRIEFING ROOM TO BRIEF REPORTERS WHEN IT WAS SPECIFICALLY SOMETHING THAT MADE SENSE FOR THEM TO DO. I WOULD EXPECT THE ADMINISTRATION IS GOING TO IMPLEMENT A SIMILAR KIND OF ROTATION UNTIL SOMEONE IS NAMED. IN TERMS OF WHO IT COULD BE, THE LIST -- WE DON'T KNOW EXACTLY WHO IS GOING TO BE HER REPLACEMENT. WE'VE HEARD FROM SEVERAL PEOPLE THAT THE LIST COULD BE LONG.

ULTIMATELY THE PRESIDENT WILL MAKE THIS DECISION. I WOULD NOT BE SURPRISED IF IT'S SOMEBODY WHO APPEARS ON TELEVISION A LOT. JUST GOING BACK TO WHEN THE PRESIDENT MADE HIS CABINET PICKS, THAT WAS SOMETHING THAT SEVERAL OF THE PEOPLE THAT HE CHOSE HAD IN COMMON. REALLY, IT COULD BE ANYONE. JOE: WE WILL FIND OUT ON THE NEXT EPISODE OF "THE APPRENTICE." BLOOMBERG'S KATE SULLIVAN ON THE LAWN THIS EVENING AS THE PRESIDENT MAKES HIS WAY TO TEXAS.

JESSICA TAYLOR, SENATE AND GOVERNOR'S EDITOR AT THE ALWAYS IMPORTANT COOK POLITICAL REPORT. IT'S GOOD TO HAVE YOU WITH US KNOWING THAT JUST ABOUT A WEEK AGO YOU PUT THIS SENATE RACE IN TEXAS INTO THE TOSSUP CATEGORY. WHAT CHANGED? JESSICA: WE ARE SEEING PUBLIC AND PRIVATE POLLING THAT SHOWS THE RACE IS BASICALLY TIED. AS KATE WAS TALKING ABOUT, JAMES TALARICO HAS A SIGNIFICANT MONEY ADVANTAGE OVER KEN PAXTON. KEN PAXTON, FOR TRUMP SAYING HE IS A STRONG CANDIDATE, HE IS VERY WEAK WITH REPUBLICAN AND INDEPENDENT VOTERS.

IT WOULD NOT BE A RACE IF IT WAS A JOHN CORNYN, THE INCUMBENT, WHO PAXTON DEFEATED IN THE RUNOFF IN MAY. THIS IS HONESTLY A HEADACHE A PRESIDENT TRUMP SOUND MAKING BECAUSE HE DIDN'T BACK JOHN CORNYN WHEN PAXTON HAS SO MUCH BAGGAGE, PERSONAL AND PROFESSIONAL, THAT HE IS JUST A VERY POLARIZING FIGURE TO VOTERS. IT HAS BUT TEXAS AND PLAY FOR THE FIRST TIME IN DECADES. EMILY: THIS IS MORE ABOUT THE CANDIDATE, HOW MUCH SWAY COULD PRESIDENT TRUMP HAVE CONSIDERING WE ARE SEEING HIM DEPLOY NOT JUST TO RALLY VOTERS BUT ALSO TO RALLY THE CASH BEHIND THEM?

JESSICA: HE CAN HELP WITH THE CASH, SOMETHING PAXTON NEEDS. TALARICO HAS BEEN OUTSPENDING REPUBLICANS ON AIR. THERE HAS BEEN A GAME OF FINGER-POINTING BETWEEN NATIONAL REPUBLICANS THAT THEY KNOW THEY NEED TO PONY UP FOR THE RACE, BUT THEY DON'T WANT TO TAKE MONEY AWAY FROM OTHER VERY COMPETITIVE RACES. IS ELON MUSK GOING TO SPEND? PAXTON, THAT MONEY CAN GO FURTHER THAN SOME OF THE SUPER PAC MONEY CAN PEER TRUMP HELPING HIM WILL CERTAINLY HELP BOLSTER HIM IN TEXAS, BUT THEY NEED TO START ATTACKING PAXTON TOO TO TRY TO BRING HIM DOWN.

THERE ARE SOME VERY CONTROVERSIAL THINGS THAT TALARICO HAS SAID ABOUT TRANSGENDER, NON-BINARY, THAT THEY WILL WORK TO PAINT HIM AS TO OUTSIDE OF THE MAINSTREAM IN TEXAS, AND THAT MIGHT WORK, BUT IF THEY MAKE THIS A REFERENDUM ON KEN PAXTON THIS COULD BE A HARD RACE FOR REPUBLICANS TO HOLD ONTO. JOE: MAGA MADE A DENT IN SOUTH CAROLINA. THE RACE THAT MAY NOT OF COST A PENNY IF HE WOULD HAVE GONE WITH JOHN CORNYN. IT'S INTERESTING, THE MESSAGING, GETTING TO THIS ON BOTH SIDES HAS CRYSTALLIZED TO SIMPLE THINGS.

JAMES TALARICO DOESN'T HAVE THE MANHOOD OR THE T TO HAVE SENATOR IN TEXAS AND KEN PAXTON IS A CRIMINAL. IS THAT WITH THIS COMES DOWN TO? JESSICA: IF YOU WERE TO DEMONIZE THE OTHER SIDE, I THINK THAT YOU ARE SEEING TALARICO ON THE GROUND REACH OUT T

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