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Inside Tornillo, Texas Tent City; Trump Rallies South Carolina Crowd on Immigration; Prince William Visits Holocaust Memorial; Secretary James Mattis Arrives in China. Aired 4:30-5a ET

Aired June 26, 2018 - 04:30   ET




[04:30:52] SARAH SANDERS, WHITE HOUSE PRESS SECRETARY: We're allowed to disagree, but we should be able to do so freely and without fear of harm.


REP. MAXINE WATERS (D), CALIFORNIA: I have not called for the harm of anybody. This president has lied again.


CHRISTINE ROMANS, CNN ANCHOR: Oh, the collapse of civility in politics has everyone agreeing on one thing. It's not -- it's not their fault.

DAVE BRIGGS, CNN ANCHOR: Renewed trade concerns tank the markets. Companies being forced to rethink global supply chains as open trade comes under threat.


UNIDENTIFIED MALE: Can I get everybody off?

UNIDENTIFIED MALE: Yes. Everybody is off.


ROMANS: Dramatic moments off the Florida coast. Six people rescued after their boat bursts into flames. They didn't include that in the charter price. That's quite a -- quite a fishing charter.

Welcome back to EARLY START. I'm Christine Romans.

BRIGGS: That one will not be in the brochure either.


BRIGGS: I'm Dave Briggs. Good to have you back.

ROMANS: It's good to be back.

BRIGGS: Thirty-one minutes past the hour. The president last night in South Carolina. Just to mention a few of the people he mentioned. Jimmy Fallon, Stephen Colbert, Jimmy Kimmel, Arnold Schwarzenegger, "Apprentice" ratings, oh yes, civility in Washington. Remember that? Everyone is pleading for it. But when it comes to taking responsibility for the uncivil tone, no one wants to own it.

White House Press Secretary Sarah Sanders speaking out for the first time since she was asked to leave a Virginia restaurant on Friday night.


SANDERS: I was asked to leave because I work for President Trump. Healthy debate on ideas and political philosophy is important. But the calls for harassment and push for any Trump supporter to avoid the public is unacceptable.

We are allowed to disagree, but we should be able to do so freely and without fear of harm. And this goes for all people regardless of politics.


ROMANS: A White House officials say President Trump asked Sanders to begin her briefing with that statement. Well, the restaurant owner's decision not to serve her igniting a less than civil debate including this from Democratic Congresswoman Maxine Waters on Saturday.


WATERS: And if you see anybody from that Cabinet in a restaurant, in a department store, at a gasoline station, you get out and you create a crowd. And you push back on them and you tell them they're not welcome anymore, anywhere.


BRIGGS: President Trump adding to the incivility referring to Waters as an extraordinarily low IQ person while tweeting, "Be careful what you wish for, Max." The president piling on last night in South Carolina.


TRUMP: They're only good at one thing. What's their term? Resist. It's the party of Maxine Waters -- do you believe her? No, no. No. No. This has become the party of Maxine Waters and Nancy Pelosi.


BRIGGS: Maxine Waters trying to clarify her original remarks.

(BEGIN VIDEO CLIP) WATERS: I believe in peaceful, very peaceful protests. I have not called for the harm of anybody. This president has lied again when he is saying that I called for harm to anyone.


ROMANS: Waters dialed it back after criticism from several Democrats. House minority leader Nancy Pelosi said this, "Trump's daily lack of civility has provoked responses that are predictable but unacceptable." And this from Senate minority leader Chuck Schumer.


SEN. CHUCK SCHUMER (D), SENATE MINORITY LEADER: No one should call for the harassment of political opponents. That's not right, that's not American.


BRIGGS: So how have we gotten here? Well, critics of the Trump administration insist it starts at the top.


TRUMP: Knock the crap out of him, would you? Seriously. OK. Just knock the hell -- I promise you, I will pay for the legal fees. I promise.

We're not allowed to punch back anymore. I'd like to punch him in the face, I'll tell you. Try not to hurt him. If you do, I'll defend you in court. Don't worry about it. Whacky Jacky is campaigning with Pocahontas, you believe this?

[04:35:03] He's not a war hero.

UNIDENTIFIED MALE: He is a war hero.

TRUMP: He is a war hero --

UNIDENTIFIED MALE: Five and a half years as a POW.

TRUMP: He's a war hero because he was captured. I like people that weren't captured. OK?

Get that son of a (EXPLETIVE DELETED) off the field right now. Out. He's fired. He's fired.


ROMANS: Even with all the vitriol from the president, many Democrats are concerned the emotional response to him could fuel the president's claim his supporters are disrespected. Social media driven confrontations including public heckling of several Trump officials and backers have opened a rift in the Democratic Party over whether stoking anti-Trump outrage is helping or hurting its candidates ahead of the midterms. BRIGGS: President Trump in South Carolina last night, riling up the

crowd on his cornerstone issue, immigration. The president has been fuming about immigration courts saying there are too many judges, even though Attorney General Jeff Sessions is trying to add more immigration judges to handle the extra load.


TRUMP: We have thousands of judges already. So if a person comes into our country, steps one foot, they take their name, they bring them to court. They then release them. They go into the country. You never see them again. It's the craziest thing I've ever seen. So I said today, I said today I don't want judges. I want ICE and Border Patrol agents. I want that. That's all.

And we want to tell people I'm sorry you're coming into the country illegally. We don't want you in the country.


ROMANS: The president also told his supporters in South Carolina, he sees the national uproar over immigration as helpful to Republicans.

Chief White House correspondent Jim Acosta traveling with the president.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Christine and Dave, President Trump defended his administration's practice of separating children from their parents at the border at a rally in West Columbia, South Carolina. The president said that his facilities where children are being warehoused as they're being kept away from their parents are actually better facilities that those used during the Obama administration.

Here is more of what the president had to say to his supporters at the rally in South Carolina.


TRUMP: I have my own feeling. And when I heard them talking about the children. First of all, they were using pictures taken in 2014 when Barack Obama was president. I wasn't president. And what I learned is one thing. Our facilities are cleaner, better kept and better run. That's the one thing I learned. OK. I saw them. But what we have is two extremes. And I liked it. I said hey, this is fine for us.


ACOSTA: And you heard the president at this rally say not only does he think it's a good idea, he was essentially saying to this audience in West Columbia, South Carolina, that he thinks it's good for him politically -- Christine and Dave.

BRIGGS: All right, Jim Acosta. Thanks. The Commissioner of Customs and Border Protections says agents will

stop referring families to the Justice Department for prosecution until a policy is in place to keep parents with their children. Instead families will be released with a court date effectively reviving the catch and release program that President Trump has attacked.

ROMANS: So 2,000 immigrant children remain without their parents after being separated at the border. CNN had a chance to check at least some of the president's claims about the conditions those children were living under.

With our first look inside a tent city for migrant children in Tornillo, Texas, CNN's Dianne Gallagher has more.

DIANNE GALLAGHER, CNN CORRESPONDENT: Dave, Christine, it is absolutely scorching out here in west Texas. Triple digit temperatures. So we didn't really know what to expect when we toured this tent city that has been the subject of a lot of anger. We were told there are 326 children, all of them ages 13 to 17 years old. Most of them are boys. 23 of them were separated from their parents crossing the border as a direct result of the Trump administration's zero tolerance policy.

I can tell you that the kids are not staying in tents like you go camping in. These are military tents with insulation and air conditioning. There is a dining facility, a medical area. We're told that there are always mental health clinicians on the campus no matter what 24 hours a day.

Now we saw a few kids. They were waiting to go to the showers. We saw some other kids outside playing soccer. They kind of talked to us a bit. But this is like some of the other tours we've been on where all the pictures you're seeing right now come from the government because they wouldn't let us bring cameras or phones or anything on the premises to record. And they wouldn't let us talk with the children to get an idea of what their life is like.

They say they work on reunifying these children and that's their top private. A little later in the day, though, I heard from parents who have just been released from custody, who say that's not their experience. That HHS and ORR had made it extremely difficult to find their children and none had offered any help whatsoever.

Those who have been able to track their kids down, some of them in Chicago or New York, maybe they're in other states and they just can't figure it out yet. Aside from being separated in the first place, their chief complaint that the government doesn't seem to be actively assisting the parents when it comes to getting them back with their children -- Dave and Christine.

[04:40:08] BRIGGS: All right. Thank you, Dianne.

It's primary day in five states today with votes in Colorado, Maryland, New York, Oklahoma and Utah. Among the notable races, Mitt Romney likely to win the nomination for a Utah Senate seat against Republican state rep Mike Kennedy. In New York, former congressman Michael Grimm fighting to get his old job back after doing time in federal prison for tax evasion. Oklahoma voters rang a controversial ballot measure to make theirs the 30th state to legalize medical marijuana.

Also runoffs today in Mississippi and South Carolina. The president of course was in South Carolina last night to back incumbent Governor Henry McMaster who was forced in a runoff against his Republican challenger.

ROMANS: All right. To the markets now. Asian stock markets falling overnight after President Trump's trade policy backfires on Harley- Davidson. The company will shift some production overseas to avoid those new tariffs from the European Union. Those tariffs from the EU, a response to Trump's tariffs on steel and aluminum. The EU tariffs will make Harley motorcycles $2200 more expensive. Instead of passing that along to customers, Harley plans to move production to be closer to its second largest market which is the EU.

It's bad news for U.S. workers. Trump has long championed Harley- Davidson as an American manufacturer. He met with executives last year, you could see there. Now he is tweeting he is surprise that Harley would be the first to wave the white flag on trade.

On Wall Street, Harley's stocks fell 6 percent proving the Trump's trade battles have consequences for U.S. companies. The Dow fell more than 300 points led by American exporters. Also here, big tech stocks had a terrible day. You know, so far tech has been immune to trade fears. But not anymore. Sources say the White House plans to block Chinese investment in U.S. technology.

The U.S. targeting Xi Jinping's made in China 2025 plan. That is a national strategy to dominate industries like aerospace, robotics and electric cars. The Treasury Secretary Steve Mnuchin denied that China was a target, instead it would hit all countries, quote, "trying to steal our technology." Of course the Americans have accused China of trying to do that.

Trade adviser Peter Navarro, though, then contradicted Mnuchin.


PETER NAVARRO, WHITE HOUSE TRADE ADVISER: There's no plans to impose investment restrictions on any countries that are interfering in any way with our country. This is not -- this is not the plan. So this whole idea that somehow there's going to investment restrictions to the world, please discount that.


ROMANS: He called the market drop an overreaction.

BRIGGS: OK. Lawmaker turned life saver. West Virginia Senator Joe Manchin giving the Heimlich maneuver to fellow Senator Claire McCaskill when she started choking at a Democratic caucus luncheon last week. The incident left McCaskill with a cracked rib, a worthy tradeoff, no doubt. Manchin says he kept jerking and jerking until she said, you're hurting me now. Then he knew she could still breathe.

In a statement to CNN, Senator McCaskill says, quote, "I'm really I'm grateful to Joe. A little bit of a sore rib for a couple of weeks but no big deal."

ROMANS: All right. Do you know how to do the Heimlich maneuver?

BRIGGS: Yes. Absolutely.

ROMANS: Would you save me if I was choking on a live -- all right.

BRIGGS: As a coach, you have to take those courses.

ROMANS: Is that -- oh.

BRIGGS: Yes. So I will save you.

ROMANS: OK. Thank you. 43 minutes past the hour. The secretary of Defense landing overnight in China. A critically important trip with North Korea, trade, security all at play. Will Ripley live for us in Beijing.


[04:47:51] BRIGGS: It's 4:47 Eastern Time. And Prince William making the first ever royal visit to Israel at this hour. This morning the duke of Cambridge visiting the Yad Vashem holocaust memorial then he meets with Prime Minister Benjamin Netanyahu and Israeli president Ruben Rivlin.

Max Foster traveling with Prince William. He joins us live from Jerusalem.

Good morning, Max.

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Good morning, Dave. I just saw Prince William as he's walking through this incredible museum. He looked very moved. I went through it before him. And so it can be quite a harrowing process to go through.

But of course this is the place where visiting VIPs are expected to come in Israel. He's definitely walking a tight diplomatic tightrope I'd say as he walks through this region because he's here, he's going to be going to the Palestinian territories after this. There he's going to be having lunch, he's going to be meeting the Palestinian Authority President Mahmoud Abbas. And there's certainly those in Palestine that want an apology from Britain for its role in the establishment of Israel. At the same time, this criticism in Israel.

If I show you the front of the "Jerusalem Post." Prince William visit is front page news. This is the first official UK royal tour to the country in the 70-year history of the country. They write here, "The lack of a formal visit by British royal viewed by some as an unceremonious snub of the region's only democracy has rankled some Israelis for years."

Meanwhile, "Haaretz" and another newspaper has got a different take. Prince William is going to go on from here to meet the president, also the Prime Minister Netanyahu. And there's a suggestion that actually this is quite an achievement for President Netanyahu because you've got Prince William come to the country in the 70th anniversary year of the establishment of Israel. That in itself is an achievement.

But also, the idea that despite the lack of talks in the peace process, despite the concerns about occupied territories, this is a sign that Netanyahu's policies and Israel as a country isn't going to be isolated. So it's going to work towards the prime minister's advantage, many people here are suggesting.

BRIGGS: All right. Terrific reporting. Max Foster live for us this morning. Thank you, sir.

[04:50:01] ROMANS: All right. The Defense Secretary James Mattis touching down in China overnight. Mattis making the first visit to China by a secretary of Defense since 2014.

Let's go live to Beijing and bring in CNN's Will Ripley, and there's a lot to discuss here. You know, even trade disputes aside, so much between these two powers.

WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Well, it's really complicated, Christine. Because what the Trump administration is doing is they are tying the trade issue with national security. National security is the justification by the administration for this announcement expected later this week to block Chinese investment in American technology because the Trump administration has accused China of stealing American technology.

We know that when U.S. companies come in here just to be a part of this lucrative market, they have to -- they're pressured by the government to share their trade secrets with Chinese counterparts who are then accused of kind of taking that information and building their own cheaper knockoff version.

And so he's going to have to talk about that. But keep in mind, the United States needs China's help on this North Korean denuclearization issue. And so obviously China has some leverage with the whole trade situation. They're vowing to strike back against those $50 billion in tariffs due to kick in next month.

At the same time, Secretary Mattis has to convince Chinese President Xi Jinping to keep up the pressure on North Korea, even though we've seen now three meetings between President Xi and North Korean leader Kim Jong-un. Their relationship getting closer as the tensions with the United States are escalating.

And then there are other issues as well. The South China Sea, China building these permanent aircraft carriers on these artificial islands. The U.S. increasing its freedom of navigation patrols near these disputed islands. That obviously creating tension along with the relationship between the United States and Taiwan, U.S. selling weapons to Taiwan. So much on the plate when the secretary begins his round of meetings here in the morning local time -- Christine.

ROMANS: And then by the end of the week, we're supposed to get some real clarity from the White House about some new export restrictions. Chinese companies and Chinese nationals buying important technology in the United States. So all of that still up in the air as well.

Will Ripley, thank you, sir, in Beijing this morning.

BRIGGS: Yes. President Xi made clear in our culture we punch back. So game on.


BRIGGS: All right. The end has arrived for Toys 'R' Us. The iconic toy store will close its final 200 U.S. stores on Friday. "CNN Money" is next.


[04:57:02] ROMANS: All right. Breaking overnight. At least a dozen people shot in Chicago in seven incidents. The victims include an 11- year-old boy and five teenagers. One person died. The violence comes after three people were killed and at least 36 people injured by gunfire this weekend. Chicago had seen a drop in violent crime in recent months, but there's been a spike since the weather warmed up.

BRIGGS: Police in Pittsburgh say officers are said to work 12-hour shifts starting today in anticipation of more protests over the death of Antwon Rose. The funeral for the 17-year-old shot last week by police was held Monday.

ROMANS: East Pittsburgh officer Michael Rosfeld shot Antwon three times as he fled a car that had been stopped by police. The teen was unarmed but did have an empty magazine clip in his pocket. Pittsburgh Mayor Bill Peduto says Officer Rosfeld should go on trial.


MAYOR BILL PEDUTO, PITTSBURGH: It doesn't need to happen on Twitter. It certainly doesn't need to happen on Facebook. It needs to be in a court, and law and justice should be the deciding factors.


ROMANS: The district attorney has already said he is looking into the shooting.

BRIGGS: Good Samaritans rushing to rescue a group stranded in a boat burning off the coast of Ft. Lauderdale. Six people were on board the 45-foot charter when it caught fire early Monday. The Barriger family visiting from Connecticut saw the blaze from a nearby boat and jumped into action. One person almost went overboard trying to get on to the rescue boat.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: All the people were out on the bow so I just went around it. Came up alongside the boat. It went from smoke to fire within three to four minutes. I'm telling you, it was ridiculous.

UNIDENTIFIED MALE: Grateful. Lots of thank yous from him, including the captain and the crew. We just had to help out and do our jobs. Not a bad day. And we also caught fish.


BRIGGS: Cheers to you, my friend. The fire began in the engine area of the boat. Ft. Lauderdale fire rescue responding to the scene and tried to save the boat but it had already sunk.

ROMANS: All right. Let's get a check on "CNN Money" this Tuesday morning. Asian stocks falling overnight after President Trump's trade policy back fires on Harley-Davidson. Harley stock fell about 6 percent after the company said it would ship some production overseas to avoid new tariffs from the EU proving that Trump's trade battles have consequences for U.S. companies.

Harley was not alone. The Dow fell more than 300 points led by American exporters. Nasdaq lost 2 percent. Thanks to big tech stocks. You know, so far tech had been immune to trade fears. But sources say the White House and its plan to block Chinese investment in U.S. tech has really rattled some of these big tech companies.

You know, the U.S. plans to target Xi Jinping's made in China 2025 plan to dominate industries like aerospace, robotics and electric cars.

All right. The end is finally here for Toys 'R' Us. The iconic toy store will close its final 200 U.S. stores Friday. Toys 'R' Us filed for bankruptcy last year in the hopes of a turnaround but went out of business in March due to poor holiday sales. Two main reasons for the downfall of Toys 'R' Us. Increased competition from big box stores and online retailers, and it just had a huge debt load.

China is blocking access to HBO's Web site after comedian John Oliver made --