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Trade War Escalates, China Hits U.S.; British Believe Kremlin Behind Poisoning; Trump's Anti-Immigrant Easter Tirade; U.S. And South Korea Resume Military Drills; Notre Dame Takes Women's National Title; Data Breach Hits Lord And Taylor's, Saks. Aired 4:30-5a ET

Aired April 2, 2018 - 04:30   ET



RENE MARSH, CNN ANCHOR: China makes good on the promise hitting the United States with tariffs on $3 billion in U.S. goods. The move is retaliation for the President's tariffs on China. And how will the White House respond this morning?

DAVE BRIGGS, CNN ANCHOR: No more DACA deal. The President with the Easter morning tirade taking hope for dreamers of the table and demanding Mexico to take actions to stop drug dealers.

MARSH: And was the poisoning of the former spy in the U.K. directed by the Kremlin? British authorities say yes. Welcome back to "Early Start," I'm Rene Marsh.

BRIGGS: I'm Dave Briggs. It is good to see you Rene. 4:30 Eastern Tim, we start on trade, where China making good on its trade threats opening fears of a trade war starting today. China will slap tariffs on $3 billion worth of U.S. goods. Retaliation against President Trump's duties on foreign steel and aluminum.

The Chinese tariffs at 128 U.S. product ranging from agriculture products, pork, fruit, nuts to steel pipes, and aluminum. This move is the latest in escalating tensions between China and the U.S. which may only get worst. The President has more trade actions in the works like tariffs on $50 billion worth of Chinese goods. Experts warn they could cause further retaliation and a trade war would be devastating for U.S. consumers, investors and companies.

The President has long accused Beijing of unfair trade practices that steal American jobs. Bur for his first year in office, he did not make any major trade moves, however, the exodus of a number of globalist from the White House like Gary Cohen and Rex Tillerson may be freeing the president to follow through on his trade threats. China has repeatedly said, it does not want to trade war, but warns it will take firm counter measures if necessary.

MARSH: Well, President Trump on an anti-immigrant rant on Easter Sunday, much of it on Twitter. Here are the tweets, "Border patrol agents are not allowed to properly do their job at the border. Getting more dangerous. Caravans coming. Republicans must go to nuclear option to pass tough laws now. No more DACA deal." More on those caravans in just a moment. The Twitter tirade, just the

latest example of the President going with his gut on a key moment -- at a key moment on several policy and political fronts.

BRIGGS: His tone drew swift and sarcastic pushback from many inside and outside of Washington. Among them Ohio Governor, John Kasich, he tweeted, "A true leader preserves and offers hope. It doesn't take hope from innocent children who call America home."

Remember, today is Easter Sunday and this from Republican Congresswoman, Lleana Ros-Lehtinen quote, "Such a strong message of love and new beginnings from Donald Trump on Easter Sunday." Hence the explanation -- the emoji's down there with the sarcasm? White House Correspondent, Boris Sanchez, has more from Mar-a-Lago.


BORIS SANCHEZ, CNN NEWSROOM HOST: Rene and Dave, no confirmation yet from the White House on specifically why he chose to spend Easter Sunday delivering this message about immigration, but we should point out that just a few moments before he sent these tweets, there was a report on the cable news station about this caravan of immigrants moving through Central America into Mexico, some of them with the intention of asking the United States for asylum and there by entering the country.

The President obviously angered by that report. So, he took to Twitter, to attack Democrats, to say that the DACA deal was over and then to demand that Mexico do more when it comes to stopping the flow of immigrants. The President did meet with the press for a short time before heading into Easter service on Sunday morning. Listen to what he said.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Mexico has got to help us at the border. And a lot of people are coming in, because they want to take advantage of DACA and we are going to have to really see, they had a great chance. The Democrats blew it. They had a great, great chance, but we have to take a look.


SANCHEZ: President Trump going even further on Twitter saying that he would end the North American Free Trade Agreement unless Mexico did more. Unclear specifically what he wants Mexico to do. Dave and Rene.


BRIGGS: Boris, thank you my friend. There is growing resistance to President Trump's announcement that the U.S. will pull out of Syria, quote, "very soon." The President also placed a hold on more than $200 million in recovery funds for Syria last week. Demanding more information on the money being spent. Republican Senator, Lindsey Graham, warns withdrawing American troops from Syria would be a dangerous mistake that could undo gains made against terrorist groups.


[04:35:00] SEN. LINDSEY GRAHAM, (R), SOUTH CAROLINA: When it comes to Syria, do not read the Obama playbook. This is the Obama playbook. One foot in, one foot out. That the single worst decision the President could make. I have seen this movie before when Obama did the same thing in Iraq and quite frankly gave Assad a pass and Syria when he had them on the ropes. We got ISIS along the ropes. We didn't want to let them off the ropes, remove American soldiers.


BRIGGS: The President's remarks last week about pulling out of Syria came hours after the Pentagon said the opposite. Two members of the U.S.-led coalition including Master Sergeant, Jonathan Dunbar, of Austin, Texas were killed in a battle the same day.

MARSH: Well, two top Republicans giving a big vote of confidence to Robert Mueller. Senator Tim Scott and Congressman Trey Gowdy, claimed to shield the Special Counsel from attempts by some in the GOP to discredit him.


TREY GOWDY, U.S. HOUSE REPUBLICAN: I'm glad we have Bob Mueller. I'm glad we had an independent ball and trike caller on Congress has proven itself incapable of conducting serious investigations. Congressional investigations leak like the gossip girls. They're -- I mean, they're terrible. And I would be telling you that if I were staying in Congress. They are just not serious.

SEN TIM SCOTT, (R) SOUTH CAROLINA: It only reinforces why it is important for us to make sure that the investigation continues until it gets to the end. I hope that we get there the sooner the lighter, but the reality of it is the more information we find out, the better and the more confident the American people will be in who we are as a nation.


MARSH: Well, that is a starkly different tone from Wisconsin Senator, Ron Johnson, who told "Meet the Press," he thinks Mueller was appointed far too soon.

BRIGGS: Breaking overnight. A source tells CNN British investigators believe the poisoning of a former Russian double agent Sergei Skripal likely had the approval of the Kremlin. CNN's Matthew Chance is live in Moscow with the latest. Matthew?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Dave, thank for that. that's further than the British has gone up until now, up until now they've been saying that they believe this was unlawful chemical attack carried out by the Russian State or it is possible they refer -- they've said that -- this nerve agent, Novichok, could have fallen into criminal hands and had been used in that way.

But it seems that the British investigators are learning much more now to the side of the Russian state involvement. Suggesting that the used of the nerve agent could not had been authorized, unless it was authorized from the top of Russian policy. Trump haven't had a reaction yet from the Kremlin about that latest allegations, but I can tell that the Kremlin and although other Russian officials have categorically denied any involvement in the poisoning of Sergei and Yulia Skripal of with that nerve agent, Novichok, on the streets of Salisbury in Southern England.

They have come out with more than a dozen of theories to explained alternative narratives, to explained, what could have happened to them. The latest one is being promoted on Russian television. Is it the British themselves concocted this entire story in order to make Russia look bad. And so, the Russians categorically again, denying any involvement in this.

BRIGGS: And here we go again, 11:38 a.m. here, Matthew Chance live for us in Moscow. Good to see you.

MARSH: Well, if you shop at Saks or Lord and Taylor, a major data breach. You need to know about 5 million people's credit cards affected. Are you one of them? Details next.


BRIGGS: Big story at 4:42 Eastern Time. Another data breach hitting millions of U.S. Consumers. Hackers stole the info of 5 million customers of Lord and Taylor and Saks Department Stores. Swiping the records of credit and debit cards, used at 130 U.S. stores. The majority on New York and New Jersey, the hack did not hit any online stores for sales hitting back to May 2017.

The cybersecurity firm first identified the breach, but Hudson's Bay Company, and apparent both stores, confirmed the leak Sunday. Telling CNN in a statement, once the company has more clarity around the facts, it will notify customers quickly and will offer those impacted free identity protection services. This breach is just the latest of nearly two dozen cyber theft over the past few years including online giants, like Yahoo and AOL. Credit reporting agency Equifax and large retailers like Target, Home Depot and TJ-Max.

MARSH: Well, the U.S. and South Korea have kicked off their traditional springtime military training exercises. In the past, these drills have angered North Korea and upset Beijing, but this year, the response may be different. CNN's Paula Hancocks is live again for us this morning in Seoul. Good morning, Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hi, Rene, well, it was certainly a low-key, a discreet start to this military drills. As you say usually, the tensions are rising at this time of the year, because the North Koreans are responding verbally and sometimes also with missile launches. But it is a very different situation on the Korean Peninsula right now. Now we understand that they will last for a month, where they usually they last for two months. And also an interesting fact, that usually by this time we know

exactly which of these military drills we will be able to go and film, to show to the world and of course, to North Korea, to show the U.S. and South Korean capabilities when it comes to the military on the Peninsula.

This time around, there are no events planned up until this point. So clearly the U.S. and South Korea militaries want to keep this low key. They don't want to suffer any soaring in relations between North and South Korea and North Korea and the United States, but also on that note, we did see Kim Jong-un, the North Korean leader, at a K-pop concert on Sunday night in Pyongyang.

[04:45:00] South Korean pop star were singing. The North Korean leader was waving and was applauding. Now this is the sort of thing that the he actually punishes his own people for and has done in the past with imprisonment and even execution sometimes when the North Korean people have been able to watch smuggled versions of South Korean pop culture. But yet, here you see him in the audience, front and center there appreciating these music. KCNA, the state run media saying that he was deeply moved by this culture event. We are really seeing this optic, this momentum continue with culture and political and sporting cooperation between the two Koreas. Rene.

MARSH: They certainly are, Paula Hancocks, live for us this morning. Thank you, Paula.

BRIGGS: China's defunct space lab made a fiery reentry into the earth's atmosphere overnight. China's Man-Space Agency says, the spacecraft was mostly vaporized as it plummeted to the earth over the South Pacific.

China launched the ambitious unmanned space lab in September of 2011. It was part of China's effort to build a manned space station by 2022. The Chinese government later announced that the spacecraft ceased functioning in March of 2016, but it did not say why. It wasn't an uncomfortable couple of days for really -- for people around the world who did not know where the space station was going to come down. My kids were very nervous.

MARSH: that' what you were saying, your son included. Right?

BRIGGS: He will be very relieved this morning to find that news.

MARSH: We're all safe.

Well, the other thing we have been talking about is the weather. Snow in the forecast. Did you ever think that spring break and snow would overlap? Well, it looks like it will. Unseasonal to say the least. Today in the northeast. All of that is coming up next.


MARSH: More than 40,000 teachers across Oklahoma have promised to walk off the jobs this morning. Last week the legislature rushed through a $6,100 teacher pay raise which the governor signed. But educators say it is not enough. Many schools are closed today as thousands of teachers and their supporters head to the State Capitol for a rally.

BRIGGS: Oklahoma on the latest state facing teacher trouble, teachers also expect to the protest in Kentucky State Capitol. More than 20 Kentucky Counties had schools closed Friday. Angry teachers called out sick after the state legislature approved changes to their pension plans. The State Republican leaders call it a necessary compromise, but elements of that measure were tucked into another bill about sewage services. Many Kentucky schools are closed today for spring break.

MARSH: Well, teachers in Arizona are also threatening to walk off the job if they don't get a pay raise. A lot of this renewed frustration stems from the West Virginia teachers strike, were the teachers were off the job for nearly two weeks, but did win significant concessions.

BRIGGS: A new crime figures reveal violent crime in Chicago remains on the steady decline. March was the 13th consecutive month of declining gun violence in the city. Year to date, murders have dropped 22 percent and shootings 25 percent. Chicago police attribute the drop to hiring more officers, stronger community policing efforts and investment in technology. Like predictive crime software to help deploy officers. Chicago Police Chief, Eddie Johnson, says despite the steady progress, the city still has a long way to go. He says it is a marathon, not a sprint.

MARSH: Well, the car that went over a California cliff in to the ocean last week may have been driven off intentionally. Authorities say data from the SUV reveals it accelerated about 70 feet before plunging off the cliff along the Pacific Highway.

Investigators say there is no evidence to suggest it went over the edge at an angle. It appears it went straight off the cliff. Two mothers, Jennifer and Sarah Hart and three of their children perished in the crash. Three other children are still missing. No suicide note was found at the family's house in Washington State, but investigators say, they are evaluating some items found during the search.

BRIGGS: California Highway Patrol investigate the names of involving a Sacramento Sheriff's Deputy who struck a protesters during a vigil for Stephon Clark and then left the scene. Witnesses say, the driver accelerated as he struck the woman, but authorities claimed the vehicle was moving slowly and the deputy was responding as demonstrators kicked and pounded on the car. The weekend incident threatens to exacerbate an already intense relationship between police and protesters in Sacramento after the fatal shooting of Stephon Clark, an unarmed black man. Officials say police mistook Clark's cell phone for a gun.

MARSH: Well, Hollywood is remembering a giant in the television business. Legendary Producer, Steven Bochco, who died Sunday after a long battle with leukemia. Bochco created ground breaking series like "Hill Street Blues, NYPD Blue" and "L.A. Law" in that 1980's and in the 90's. Shows that pushed boundaries and help define the modern television drama. He was nominated for a primetime Emmy 30 times, as a writer and producer winning 10 times. Steven Bochco is survived by his wife and three children. He was 74.

BRIGGS: All right. It will be Michigan versus Villanova tonight in the National Championship game on men's side, the Wolverines beat the tournament's Cinderella Loyola-Chicago in the semifinals.

[04:55:00] Michigan riding a 14-game winning streak. Good bye to Sister Jean. Villanova is going for their second national championship in three years. The Wildcats beats Kansas, just pounded them in the other nationals semifinals setting up a final four record with 18 three.

Michigan-Villanova, hard pressed the top to thrilling finish though to the Women's National Championship game late last night.


UNIDENTIFIED MALE: Ogunbowale! For the win!



BRIGGS: Notre Dame beating Mississippi State on the last second three, by Arike Ogunbowale, excuse me, to win the national title. The fighting Irish trailed by 15 points in the second half and came all the way back to win their second national title. Ogunbowale's second game winner this weekend. She knocked down the last-second shot to beat undefeated UConn in the final four on Friday. What a weekend for the Irish.

MARSH: Well, April is here, but winter refusing to leave the northeast. Let's bring in meteorologist Ivan Cabrera. Ivan, how long do we have to deal with this?

IVAN CABRERA, CNN METEOROLOGIST: Hi guys, good morning, this is not the color right that we typically see in April. It is snowing heavily across parts Pennsylvania, of course it will on top of us the next several hours and it will accumulating. The temperatures are just cold enough for that unfortunately. We are going to see several inches of accumulations and it will begin to melt by the afternoon. We will be back in the mid-40s.

As far as the timing, here is the snow on top of us now. Through the early morning hours and by midday, we will begin to see the snow rates tapering down. And then the snow all together ends, a little bit of rainfall further to the south out here by the evening commute. We will be done with that, but not before we drop significant snow for this time of year anyway, right. 2 to 4 inches generally, there will be pockets of 6-inch snowfall rates. And then, the snowfall rates will be heavy. So, it will be about 6 inches across the mountains in Western P.A. We will be looking at several inches there, 8 to 12 up potentially across the higher elevations. So look at that 66 sticking out there. We will hang on to that, it will be the warmest day on Wednesday in New York. And then we'll cool back down without the snow though with temperatures back in the 40's and 50's by the end of the week.

BRIGGS: All right. Ivan thanks. We are going to check now on "CNN Money." This morning, "Wall Street" second quarter kicks off today, but the market could start the week lower. Global stocks and U.S. futures falling overnight as China slaps new tariffs on U.S. goods. Investors fear a trade war. It could be devastating for U.S. companies and consumers.

This week, Spotify, makes its market debut. The streaming music service is going public tomorrow. It is not like other IPO's. Spotify plans a direct listing, meaning, it will sell shares directly to investors that saves it hundreds of millions of dollars in fees, but could also mean a volatile stark.

The Department of Justice wants to abandon its case against Microsoft over data privacy. Why? Because the new law answers the legal questioned at the heart of the case. The DOJ sued Microsoft after it refused to hand over e-mails stored overseas. Microsoft argued that doing so could violate international treaty and that there was no law to provide clarity at change with the cloud act. U.S. judges can now issue once for such data, but it also gives companies a way to object if the request conflict was foreign law. Microsoft cheered the new law calling it a good compromise.

CVS is being sued for revealing the HIV status of 6,000 patients. CVS mailed letters to patients in Ohio's HIV's drug assistance program last year. Now a federal suit claims the status could be seen through the clear window just above their name and address. CVS failed to announce the breach and did not contact those affected. And the statement to CNN, CVS apologized for the mistake adding that it takes responsibility to safeguard confidential information quote, "very seriously."

MARSH: Well, "Early Start," continues right now.

China makes good on the promise hitting the United States with tariffs on $3 billion in U.S. goods. The move is retaliation for the President's tariffs on China. How will the White House respond this morning?

BRIGGS: And no more DACA deal. The President with the Easter warning tirade taking help for dreamers off the table and demanding Mexico to take actions, stop drug dealers.

MARSH: And was the poisoning of the former spy in the U.K. directed by the Kremlin? British authorities say yes. Good morning and welcome to "Early Start." I'm Rene Marsh.

BRIGGS: Good to see you, Rene. I'm Dave Briggs. It is Monday, April 2nd, 5:00 a.m. in the East and noon in Moscow, 6:00 p.m. in Seoul. I hope you all had a wonderful Easter weekend. We start though with escalating trade sanctions. China making good on its trade threats stoking fears of a trade war. Starting today, China will slap tariffs on $3 billion worth of U.S. goods. Retaliation, against President Trump duties on foreign steel and aluminum.