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NEW DAY SATURDAY

Thai Navy Official: Rescue Of Soccer Team May Happen Soon; Manafort Charges Have Manafort Connection; Trump Lawyers Make New Demands Before Mueller Sit-Down; U.S.-China Tariffs To Make 1,300 Products More Expensive; Hurricane Beryl Tracks Towards The Caribbean. Aired 7-8a

Aired July 7, 2018 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)

[07:00:00] UNIDENTIFIED MALE: It's low oxygen levels that now pose as grave threat as the ever-looming monsoon deluge.

UNIDENTIFIED MALE: They don't want to pull the trigger on this difficult and dangerous rescue attempt until they know it's their only option.

UNIDENTIFIED MALE: If we have no other option, we should take them out by diving.

(END VIDEO CLIP)

ANNOUNCER: This is CNN breaking news.

VICTOR BLACKWELL, CNN ANCHOR: Thank you for joining us. I'm Victor Blackwell.

DIANNE GALLAGHER, CNN ANCHOR: And I'm Dianne Gallagher in for Christi Paul. We want to welcome our viewers today and the United States and around the world.

BLACKWELL: And we're starting at the top of the hour with breaking. A Thai Navy official says -- said just moments ago that rescue efforts to save a young soccer team and their coach from this flooded cave may start soon.

GALLAGHER: Rescue teams are racing against the weather at this moment. The beginning of more monsoon rains already starting. CNN's David McKenzie live in Thailand for us. And David, what is the latest there on the ground as far as the rescue situation?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Good morning, Dianne and Victor. Yes, this is becoming the crunch hour, I believe, in Thailand. You know, the rain could come any moment. And racing against the weather are these rescue teams including U.S. Military, who I just saw on the ground here moments ago. Now, from a Thai military source, a Navy source, saying that extraction could happen very soon indeed. Because of the weather that could be closing in and the a dangerously low oxygen levels in the chamber where the boys have been holed up for 15 days now. So, we believe that this could start soon. When it does start it will be a long, arduous and dangerous process of getting those boys through these tight and narrow spaces out through the water and possibly to their families safe. As some said, one of the most difficult rescue operations of its kind ever attempted. Victor, Dianne?

BLACKWELL: David, our hearts obviously go out to these families waiting and have been waiting now for two weeks. I understand that you are hearing from some of those families.

MCKENZIE: Yes. I mean, you know, amongst all this activity and the rescue workers that have been moving back and forth behind me all day, there is this poignancy, this fear about this moment. The families are hunkered down near us, kept away from the press understandably. But we managed to speak to one father of a young boy, in fact, the youngest boy who is amongst that soccer team. His nickname is Titan or Tin, and he sent out a letter to his parents in Thai, written on a notebook saying, you know, what he wants is to get out and for them to prepare him and take him to a fried chicken joint. You know, he's just 11 years old. He just wants to get out and resume normal life. We spoke to his father who said they just want him back.

(BEGIN VIDEO CLIP)

TENAWUT VIBOONRUNGRUANG, SON TRAPPED IN CAVE (through translator): I felt better as my son said that he was fine and strong. I felt relieved after I had been worried about my son that he would be exhausted, he would be tired. I felt better, but I don't know whether he is tired or not. I just want to give him what he wants. Whenever he comes, we would go together. And before that, he and his aunt agreed to have those fried chickens at KFC together.

(END VIDEO CLIP)

MCKENZIE: And his mother sent a letter back with one of the rescue divers who went all the way through those chambers, in those caverns, hand delivered, and you know, in part what she wrote is: "I'm waiting for you here at the cave entrance, my brave son. I miss you." This is a human -- extraordinary human moment here. The ingenuity that is being pulled together from teams from around the world including the U.S. trying to get to those boys and get them out safely.

BLACKWELL: Unimaginable what those parents must have been feeling over the last two weeks, and the hours over this extraction that is happening soon we're told or could happen soon.

GALLAGHER: Soon probably can't come soon enough for them.

BLACKWELL: Absolutely. David McKenzie for us there, outside that cave. Thank you so much.

GALLAGHER: We also spoke earlier with Mikko Paasi, he's a Finnish diver with the rescue operation. He told us a little bit more about the challenges that still lie ahead.

(BEGIN VIDEO CLIP) [07:05:02] MIKKO PAASI, FINNISH DIVER: We have very good hopes here.

The water level is very low at the moment and get lower are installing lots of pumps, more pumps than ever, and it's going down very fast. But the weather is (INAUDIBLE), a little bit dark, rainy clouds on the horizon, and that affect the outcome. Because if it rains hard, like the monsoon time here, that will put a lot of water into the cave system in about three hours. So, that will be one of the biggest concerns.

GALLAGHER: And Mikko, explain just how, sort of, how this goes about. You were talking about how because this space is so small, only a few divers can actually reach the boys?

PAASI: Yes, there's very, very small restrictions, like a passageway. There's only one guide can go, and you need to take your equipment off and squeeze through. And every traffic in those tunnels, if you meet another team in the dark, there's the risk of getting tangled or disoriented. Otherwise you have to back off or you're going to get confused. So, it's been limited. Only minimum amount of divers in the cave system.

(END VIDEO CLIP)

GALLAGHER: All right, we want to bring in CNN Meteorologist Allison Chinchar. And Allison, just how much rain is actually in the forecast here? We know it can complicate the rescue efforts but how much are we talking here?

ALLISON CHINCHAR, CNN METEOROLOGIST: Yes, so there's a twofold here. You have to know how much is going to fall and for how long. Because remember, this is the rainy season; this isn't just something where it rains for a day and then you get a week's worth of a break. Now, with that said, we've been lucky enough to have a break, the last few days. Starting July 2nd all the way through July 6th, we've had at most a trace of rain. That's been good for a lot of the rescue efforts. It's allowed some of that water to come back down. The problem is it's going to be short lived. You can already see some of this moisture coming back. Here's the location of the cave that we've been talking about. Look at these reds and oranges. That indicates that moisture. It's coming back, and it's coming back full force.

Now, when we talk about how much rain is going to come in and for how long, that's when you look at the forecast. Now, today, about a 50 percent chance of rain on Saturday. But once we get to Sunday and Monday, that's when those rain chances crave up to 80 percent and 90 percent. And again, not just that it's the long term, but now you talk about how much rain is going to fall. Now, we're talking widespread totals of an additional two to four inches. Now, on the face of it, two to four inches may not sound like that much, but you have to keep in mind, this is on top of what they've already had. And when it's going through narrow channels like that, it can fill up pretty quickly. This is just for the next five days. There would be even more rain after that. So, again, you can definitely tell the urgency of trying to get them out as quickly as possible, Victor and Dianne, before all of this heavy rain really starts to come back. BLACKWELL: And that is why the naval official says this has to or

could, at least, happen soon. Allison Chinchar, thank you so much. We will check back with you.

GALLAGHER: Now, CNN's Tom Foreman has taken a look at conditions inside a cave from a different perspective.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT: The only way air moves in and out of most caves is by a change of temperature on the ground above -- and that would be true here as well. However, when you go 2-1/2 miles in and more than a half mile down, there could be virtually no effect from that. For practical purposes, these boys and their coach are in a sealed chamber where the air is running low if not running out. How low? They should be getting 21 percent oxygen in every breath, right now they're reported down to about 15 percent. That means there's decreased ability to work strenuously. They have impaired coordination. You might not think very clearly. And in some cases, they might have decreased vision in low light. It's not necessarily permanent and they are bringing oxygen tanks in, so that may help but it is worrisome.

Now, in the meantime, outside they're trying to pump all this water away and they're making some progress. Currently, they're getting more than 400,000 gallons out per hour. That's two-thirds of an Olympic-sized swimming pool. The idea is maybe you can open some narrow gap and get some of these kids out quickly. But what we're seeing from inside this cave, from the map we see, is that there's still several areas that are very flooded where the kids would absolutely have to go through in scuba gear for 20 minutes, 30 minutes, an hour or more. We just don't know. It's a big ask and it's not getting any better. Think about it. Everything they've been pumping out now has been water that showed up since the kids went into the cave. They've had actually a little lull here without much rain. But much more rain is coming and there's no indication that these pumps can keep up with it.

[07:10:05] For all of that, though, the single biggest issue here continues to be the topography of the cave. Yes, there are small currents and it's cold and they can't see. But there are areas here that are so small, only one person at a time can go through. The divers are even taking their tanks off and pulling them behind them. That's why it's so hard to get supplies in and out. That's why you can't really have a serious discussion about trying to lay a pipe overall this distance. And imagine trying to pull a frightened, exhausted teenager through that under water? It's a six-hour journey from the outside in for even experienced divers. Engineers are saying, basically, that should be used as nothing but a supply line right now. And they should start pounding in from above with some kind of small supply opening to drop food and fresh water through and pump air in and simply keep these boys alive until they can figure out how to free them.

(END VIDEOTAPE) BLACKWELL: It is a daunting mission. Tom Foreman, thank you so much for that explainer. Live pictures here outside of that cave in Thailand. A Navy official there says, the operation to extract these 12 boys and their coach could happen soon. We're going to continue to stay on top of this.

GALLAGHER: Plus, we have a shift in strategy from President Trump's lawyers on the Russian probe. How they may be planning to fight back against Robert Mueller's team.

BLACKWELL: Also, the Trump administration has four days to reunite children under 5-years-old who have been separated from their parents. The government officials say, they need more time.

(COMMERCIAL BREAK)

[07:15:48] BLACKWELL: Well, there are signs of a shifting strategy for the president's legal team that they've set now new conditions for a sit-down with Special Counsel Robert Mueller.

GALLAGHER: The New York Times reports that President Trump's lawyers want two things before their client will agree to an interview: one, the special counsel's team must prove that it has evidence the president committed a crime; and two, the Mueller team has to show that they need testimony from the president to finish the Russia probe.

BLACKWELL: For more on what the new conditions may signal, let's go now live to CNN White House Reporter Sarah Westwood live in Berkeley Heights, New Jersey, near where the president is spending the weekend. Sarah, good morning to you and tell us what -- frame this for us from the perspective of the president's team. What are they trying to relate here? What is the effort behind this new framework?

SARAH WESTWOOD, CNN WHITE HOUSE REPORTER: Well, President Trump is showing yet another sign that he will not cooperate with Special Counsel Robert Mueller. The New York Times is reporting that Trump's legal team made those new demands of Mueller yesterday, telling investigators that in ex-change for Trump's cooperation for an interview, they must prove that they've uncovered evidence that Trump committed a crime and they must prove that Trump's testimony would be necessary to conclude the probe.

Now, Rudy Giuliani, one of the President Trump's top lawyers told the Times: "If they can come to us and show us the basis and that it's legitimate and that they have uncovered something, we can go from there and assess their objectivity." Of course, Trump and his allies have escalated their attacks on Mueller in recent weeks questioning the foundations of the probe and raising unsubstantiated claims of rampant bias within the FBI. And it's important to note that Trump said publicly just a few months ago that he would be eager to sit down with investigators. So, these new preconditions certainly mark a shift in the legal tactics for Trump. And the idea of setting new standards for Mueller to meet is also at odds of demands by Trump and his allies to wrap up the investigation as quickly as possible, Victor and Dianne. BLACKWELL: Westwood, thank you so much. Stay with us. There's more

to discuss this morning.

GALLAGHER: And as we're also learning about a Trump campaign connection to Paul Manafort's money laundering trial.

BLACKWELL: As prosecutors say, and so far, unnamed banker, helped the former Trump campaign chairman get $16 million in loans while seeking a role in the Trump campaign. Mueller's team plans to show the loans were approved and the banking executive got a position advising the campaign. Meanwhile, weeks before the trial is set to start, Manafort's lawyers are asking for the trial, at least one of them to be moved and to change its start date.

GALLAGHER: All right, joining me to talk about this: Annie Linskey, Chief National Correspondent for the Boston Globe; and CNN White House Reporter Sara Westwood back with us now. All right, I want to start with -- we were highlighting before, the special counsel would like to talk to the president. The president has said he would like to talk to the special counsel under oath, that he has nothing to hide. But Rudy Giuliani, his attorney now, is essentially saying we've got some stipulations here. Annie, is this something that really matters anyway? I mean, they can ask for it, but are they necessarily going to receive it and still be able to avoid this?

ANNIE LINSKEY, CHIEF NATIONAL CORRESPONDENT, BOSTON GLOBAL: Yes. No, I think that the shift in strategy comes, you know, with the shift in lawyers. You know, Giuliani, who's new, but also a little bit less. Behind the scenes, you have another Trump lawyer, Emmet Flood who is new. And this team of people, you know, they absolutely do not want Donald Trump to sit down with Robert Mueller. I mean, the president of the United States lies 6.5 times a day according to fact checkers. And to put him in a scenario where he would be sitting down under oath where anything that he said that, you know, him even close to a fib could put him in much more serious legal jeopardy, is something they absolutely want to absolutely avoid. So, I think that, you know, these new lawyers are making that case to him very, very clearly. And that's what you're seeing, is Trump's team putting up new legal hurdles for that kind of scenario to play out.

GALLAGHER: Well, Sarah, I want to read you some of what Rudy Giuliani said here. He said, "If they can come to the New York Times, that they can come to us and show us the basis, and that it's legitimate and they've uncovered something, we can go from there and assess their objectivity." So, in that case, is Giuliani also sort of setting the president up in case to where if he does do an interview, it implies that they have something on the president?

[07:20:24] WESTWOOD: That's right. Obviously, there was already a lot of -- the stakes were high heading into the interview without this new legal hurdle that Mueller would have to clear. And now, Rudy Giuliani is setting President Trump up for the optics of that interview implying to the public that Mueller has proved to the White House that they have uncovered evidence that Trump committed a crime and that Trump's testimony would be necessary to end the probe. So, obviously this raises the stakes even higher and it signals that the White House is potentially setting Trump up to be able to opt out of that interview despite his public assurances previously that he would cooperate with investigators, because obviously that's a bar that's a little bit unorthodox for investigators to prove to a subject that they evidence of a crime in exchange for testimony. So, that's something that the White House is going to have to deal with down the road. But the problem that Rudy Giuliani has introduced to Trump in the past is creating headlines that later have to be fixed by others surrounding the president.

GALLAGHER: So, I want to move on to Paul Manafort. And first, I want to take a listen to what the president said back in June when he had that, sort of, impromptu White House lawn tell-all session with the media about Paul Manafort at that point. Take a listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I look at some of them where they go back 12 years. Like, Manafort has nothing to do with our campaign, but I feel some -- I tell you, I feel a little badly about it. They went back 12 years to get things that he did 12 years ago. You know, Paul Manafort worked for me for a very short period of time. He worked for Ronald Reagan, he worked for Bob Dole, he worked for John McCain or served him. He worked for many other Republicans. He worked for me what, about 49 days or something? A very short period of time.

(END VIDEO CLIP)

GALLAGHER: So, let's just be very clear here. Paul Manafort was the Trump campaign chairman. So, he played a role in the campaign here. And this new information that we have, now the prosecutors say that unnamed banker may have helped him get $16 million in loans while trying to seek a role in the campaign. Annie, the optics here not so great either.

LINSKEY: Yes. I mean, I think I would want to say two things. I mean, the first is, Trump always tries to distance himself from Manafort. And you know, remember, in those 49 days that he was a chairman, that is a period of time in which Manafort was instrumental in having Mike Pence be picked and put on the ticket. So, not only was he there for an important period, but he had a significant historical role. So, you know, that being said, yes, you know, I think this is a bit of a game-changer. Because this new development shows that Manafort was doing the same kind of sleazy deals that he had a long reputation of doing in Washington and he was continuing that behavior when he was in a position of power. Trump always says he can get the best people and then he's been saying all of that happened so long ago with Manafort. His bad acting was something of the distant past. But now, we're seeing, you know, it's exactly -- it gives the pattern with Manafort was repeating itself on the campaign trail, at least that's what the allegation is.

GALLAGHER: 12 years ago, or two years ago. Thank you so much. We should point out, of course, prosecutors just alleging this. But still, Sarah, Annie, thank you. [07:23:46] BLACKWELL: And we're continuing to push forward on this

breaking news out of Thailand where a Navy official says an operation to try to rescue the trapped soccer team may happen soon because the rain is on the way. We have newly translated letters from the parents to those boys and the coach, and we'll read you some excerpts after the break.

(COMMERCIAL BREAK)

[07:28:51] GALLAGHER: Welcome back. I'm Dianne Gallagher.

BLACKWELL: I'm Victor Blackwell. Thank you for joining us this morning. We are watching the breaking news that's happening right now in Thailand where a Thai naval official says that rescue efforts to save a young soccer team may start soon. The team has been trapped in this flooded cave for two weeks now.

GALLAGHER: Incoming monsoon rains are forcing rescue teams to basically race the weather at this point. We're going to continue to bring you any updates as soon as they happen from our live cameras there. Meanwhile, parents waiting outside the cave told the coach that it is not your fault in a letter to him and the trapped boys. We want to read to you some of that letter and some of the other messages that have just been sent to the boys. This one to the soccer coach. They say, "We as your soccer team members' parents believe in you and your spirit, that you've been taking a good care of our kids. We just want you to know that this is not your fault. We all here don't blame you and just want you to know to not blame yourself. We all understand all the situations that have happened, and we are here supporting you."

[07:30:00] The next letter reads, "We just want you to know that we are waiting to have a birthday party with you, my son. So, please take care of yourself and we'll celebrate together. Don't be so worried, now we are all here together with your grandparents and your cousins waiting for you. We love you."

And then, there's this one, "I'm waiting for you here at the cave entrance my brave son, I miss you. As you're a strong and patient son, I believe that you will make it. We miss you, love you, you were the only one for me."

BLACKWELL: Those are difficult to listen to.

GALLAGHER: Remember, age 11 to 16.

BLACKWELL: 11 to 16, they've been in that cave for two weeks now.

GALLAGHER: Yes.

BLACKWELL: And there was just jubilant when on Monday, we learned that they were all alive, all 13. When they were asked, how many are there in good health?

GALLAGHER: In good health. Yes, in good health at that time. BLACKWELL: And now, there is this we're told this effort to extract them soon. Let's take the live picture again, though. And if we can take that full, because we just saw live crews, hanging signs there. And if you can read them, it says, "explosives".

So that may give us some clue about how and what will be employed to try to get these boys out. Again, we don't know any more at this point. Then, the Thai Navy official saying that the extraction may happen soon. But we are seeing these signs, (INAUDIBLE) signs.

(CROSSTALK)

GALLAGHER: And there's been a lot of activity this morning, as well. And as we pointed out, on top of the monsoons coming, they're also facing limited oxygen right now.

BLACKWELL: Yes.

GALLAGHER: And so, time is of the essence for them, they are running out of time to rescue these boys.

BLACKWELL: Yes. Again, this is a -- just a few moments ago. And by moments, we mean maybe 90 seconds.

GALLAGHER: Yes.

BLACKWELL: Or so ago, when workers came to hang these signs that say "danger explosives". We know that there have been efforts to drill chimneys into the mountain.

(CROSSTALK)

GALLAGHER: Several (INAUDIBLE).

BLACKWELL: Several of them to try to get some air into there, or maybe there's some other way to try to --

GALLAGHER: Drop supplies even --

BLACKWELL: Drop supplies in or just get access to the boys, of course, I don't know that there's any plan that gets them -- you know, vertically out of this cave. But --

GALLAGHER: Not that we've heard most of them have involved diving.

BLACKWELL: Yes.

GALLAGHER: And that the issue there, of course, is that these are children. They are not experienced divers, you can see the radar here showing these rains coming, which will make it even more difficult to get to them. The waters are dark and murky, they are narrow. Experienced divers, a retired Thai Navy SEAL died trying to get back from one of their missions there running out of oxygen.

BLACKWELL: Yes.

GALLAGHER: The cards are stacked very difficultly against them right now.

BLACKWELL: Certainly. I mean, all we have is that they may happen soon. Soon has not been defined, but as you can see there is increased activity. Now, the signs they're saying dangerous explosives. We will continue to follow every detail we get. Our David McKenzie is right there outside of that cave.

Moving on now to another story here in the U.S. The U.S. and China in the middle of this growing trade war. And it's about to affect you. Washington put tariffs on $34 billion worth of Chinese goods in Beijing. Quick to respond, it means at least 100 or rather 1300 products will become more expensive. CNN's Alison Kosik has more on what this means for the markets.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's a tale of two economies and the U.S. jobs booming, businesses adding more than 213,000 jobs in June. It's a sign of a strong healthy economy. The unemployment rate rose from 3.8 percent to four percent but for the right reason. A half million people came off the sidelines and re- entered the labor market.

Wages were the disappointment, barely outpacing inflation. But, this overall positive jobs report comes as President Trump officially launches a massive trade war with China, unleashing tariffs on $34 billion of Chinese goods.

Tariffs targeting China's high-tech industries like aerospace, robotics, manufacturing, and automobiles. And then, China hitting back placing tariffs on high-value American exports like cars, crude oil, and cash crops like soybeans.

The farm goods are strategic, hitting states that voted for President Trump. But the stock market fairly blinked, ending higher for the day. Question is, will the uncertainty about who will blink first in the trade war, wind up boiling the markets in the future? Or will a compromise calm those fears and send this bull market back in motion. I'm Alison Kosik, back to you.

BLACKWELL: Alison, thank you so much. Well, joining me now, Catherine Rampell, CNN political commentator and opinion columnist for The Washington Post. Catherine good to have you.

CATHERINE RAMPELL, CNN POLITICAL COMMENTATOR: Good to be here. So, let's start broadly here. The U.S. Chamber of Commerce, leaders of U.S. industries and manufacturers, the president's base. The president's party have all said that these tariffs are regressive and they are harmful. Is there any indication that as this trade war now has begun, that that's being heard by the president and the White House?

[07:35:04] RAMPELL: It doesn't seem to be that way. Look Trump is right that China has been misbehaving. China has been stealing our intellectual property, has done a lot of other things, abusing the international trade system. The question is how do you address that? What's the most effective way to fight back? And these tariffs, most economists agree probably everyone except for one economist who's in the White House are not the right strategy. In part, because they hurt American consumers, they hurt American businesses and workers, they make Chinese goods that American companies need to produce much higher value products like cars or various kinds of appliances much more expensive.

BLACKWELL: Yes.

RAMPELL: And beyond that, of course, the Chinese retaliation is targeted with basically surgical precision to affects very politically sensitive areas that voted for Trump, right? China has imposed its own tariffs as sort of a tit-for-tat retaliation on pork, soybeans, cars, lots of other things that are in that are in -- that are produced in Trump country. So it's going to produce a lot of pain for very particular areas of the country. Even if at this point, the magnitude of the tariffs both on China and on U.S. exports to China are relatively contained at this point.

BLACKWELL: Yes.

RAMPELL: There will be some very, yes, targeted pain.

BLACKWELL: So you, you raised the question that that's important here and let's try to get an answer to it. If tariffs are the wrong way, to create some consequences for China for the intellectual property theft and for -- you know, currency manipulation with the president talked about during the campaign, what then, are some alternatives that do not lead to the reciprocal pain to this, this retaliation that we're seeing? What are the other choices?

RAMPELL: So, the other choices are multilateral action. The United States is not the only country that has basically been victimized by Chinese trade practices. Our European allies, our Canadian allies, Mexican allies, Japanese ones. They have also complained, basically, of the same kinds of abuses.

And so, President Obama taking the baton actually from President George W. Bush had been part of this multilateral trade negotiation which was called the trans-pacific partnership and involved 12 countries at around the Pacific Rim that banded together and liberalized trade within that region. Yes, but also one of the objectives was basically, to band together and have leverage over China and try to push back on China's bad behavior.

Of course, one of the first things that President Trump did after he took office last year was to pull us out of this trade pact. And meanwhile, the other countries that remain in the trade pact had basically redesigned their own negotiation without the United States, and without a lot of the intellectual property protections that the United States fought for.

So in any case, the solution for fighting back would have been banding together with our allies. Instead, what we are doing right now is picking fights with those very same allies.

BLACKWELL: Yes.

RAMPELL: And China now sees an opening, essentially to try to create an anti-American alliance at this point in the same way that we had once tried to create an anti-Chinese alliance.

BLACKWELL: Yes, and one of the things you point out in your latest write for The Washington Post is that many of the tariffs are not really hitting Chinese domestic companies. They are actually hitting multinational companies that are based in China.

RAMPELL: Yes.

BLACKWELL: And huge portions of these industries and hitting against other U.S. allies there. Here's a look at the percentages of some of these industries that are not really Chinese companies, just companies in China that are being affected by those tariffs. Catherine Rampell, thank you so much for being with us.

RAMPELL: Thank you.

BLACKWELL: All right, Diane?

GALLAGHER: All right. Still, to come, the government is struggling to find and reunite migrant families. And court order deadlines are approaching quickly.

Remember, last month, Health and Human Services secretary said, "This process would take just seconds." We've more on that ahead.

(BEGIN VIDEO CLIP)

ALEX AZAR, UNITED STATES SECRETARY OF HEALTH AND HUMAN SERVICES: I sat on the ORR portal with just basic keystrokes within seconds could find any child in our care for any parent.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[07:41:34] BLACKWELL: Mortgage rates day held steady this week, here is a look.

(COMMERCIAL BREAK)

GALLAGHER: The Trump administration is scrambling to follow federal court orders to reunite migrant children with their families. And yesterday, the U.S. government was

U.S. government was supposed to have made sure that every separated parent had a way to contact their child. A government attorney says that she does believe they met that goal but some parents haven't spoken to their children, at all.

BLACKWELL: Well, the government now has until Tuesday to make sure every child under the age of five is reunited with their parent. By July 26th, every family must be reunited regardless of age. As the deadlines get closer to U.S. officials are rather in court, they're asking for more time. So, we're going to talk about that this morning.

GALLAGHER: Yes, here with me now to discuss all of this, CNN contributor and former director for the office of government ethics Walter Shaub.

Walter, before you and I get started talking, I want everyone to hear what the Health and Human Service secretary said last month about the process of reuniting migrant families.

(BEGIN VIDEO CLIP)

AZAR: There is no reason why any parent would not know where their child is located. I could at the stroke of -- at keystrokes, I sat on the ORR portal with just basic keystrokes within seconds could find any child in our care for any parent available.

(END VIDEO CLIP)

[07:45:08] GALLAGHER: Yes, just a keystrokes, apparently. So, Walter, is it a case of the secretary being clueless or dishonest? That is a gross misrepresentation of how this process works, and it's obviously not playing out like this.

WALTER SHAUB, CNN CONTRIBUTOR: Yes. I mean, he's lost all credibility. He keeps giving us these empty reassurances and I think there's some wordplay going on here when he says we can find every kid. Well, the problem isn't to find every kid, it's to reunite every kid with every parent, and that's where they're struggling right now.

GALLAGHER: And so, I mean, you and I have both have been down there. I spent time in (INAUDIBLE), I said the past three weeks in these border towns touring these facilities. These parents are given very little information of any information at all once they are released.

I talked to -- there were 32 parents who were released who they were just given a piece of paper with a phone number on it that basically gave them no information. When they were released, three of them had spoken to their parents. So, there is a breakdown somewhere here.

SHAUB: Yes. You know you get more documentation when you leave your coat at the coat check at the museum. What's the problem is, is that it was on the intake, CBP Customs and Border Patrol made no real effort to track them as a family unit. And they deleted records to track them as a family unit because they thought it was easier to track them individually.

This goes to show that they never had any intent of worrying about reuniting these families, and they're being hampered by bureaucratic requirements at HSS because they're trying to screen parents, they were turning the kids they stole too. It's insane, they need to move heaven and earth and they commit a lot more resources and they are doing this. GALLAGHER: But I want to go back to what you just said there. Because a Justice Department attorney, actually, she said this, "If we are not aware of where the parent is, I can't commit to saying that reunification will occur before the deadline. We're still determining what the situation is there and whether those situations where reunifications may not be able to occur within the time frame."

They've only matched 86 parents to 83 children. 16 are not yet matched, they said of these kids that they need to be able to do by Tuesday, they're not going to meet these deadlines. And anybody who has been on the ground can tell you that they were not going to be able to meet these deadlines hear. What happens next if they don't?

SHAUB: Well, the fate of the future of these children is in the judge's hands. If Judge (INAUDIBLE), willing to really come down on the government, he can send a message that they need to stop acting like this as business usual and using normal procedures.

This is a humanitarian crisis created by essentially kidnapping children and babies. And you can't just use the normal procedures and the normal resources.

You're going to know how to draw down on other activities and massively reassign staff and make this an all-out push to solve the atrocity that you've created here if you're the federal government.

GALLAGHER: Walter Shaub, I want to thank you so much for joining us to talk about this.

SHAUB: Thanks.

BLACKWELL: The first hurricane of the Atlantic season is winding its way through the Caribbean. Now, Allison Chinchar is watching that for us. Allison?

CHINCHAR: That's right. And not one but two different tropical storms to keep an eye and we'll talk about who is going to be impacted by both, coming up.

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[07:52:33] BLACKWELL: Now, while people across the Caribbean are preparing for that, you saw a Hurricane Beryl there, the first hurricane of the season.

GALLAGHER: Yes, if you were more anxious than the people in Puerto Rico where residents rushed to stores stocking up on food and water. Puerto Rico is still recovering from hurricanes Irma and Maria, devastated the island last year. Allison Chinchar joins us now from CNN Weather Center. And, did they have anything to worry about on the island, Allison?

CHINCHAR: Right. So while we don't expect a direct hit to take place on Puerto Rico, even some of those outer bands producing just general thunderstorms have the potential to knock out power. And for so many folks that they just got their power back, the last thing they really want is to lose the power again.

Now, we take a look at Hurricane Beryl, again. Basically, out over open water at this point, that's what's allowed it to really increase in strength over the last few days but that's going to change as it starts to make its way off to the west.

Now winds right now about 75 miles per hour. So, that's a low-end Category 1, hurricane. It is expected shortly after it crosses over the Lesser Antilles to weaken down into a tropical storm if not potentially before that point.

Then, it will continue up and off to the north and west. Again, perhaps, maybe skirting along Puerto Rico, but we don't expect it this time to have a direct hit. Now, we do have hurricane watches, that's the pink color you see here. As well as tropical storm watches in effect for some of those islands there.

One place we don't expect hurricane watches, the Carolina coast. We're keeping an eye on Tropical Depression 3. This one at this time is expected to move away from the States. The biggest concern there is going to be rip currents. If you have plans for the beach, just keep that in mind.

BLACKWELL: Allison Chinchar, thanks so much.

GALLAGHER: All right. Still ahead, we continue to monitor those live pictures coming out of Thailand where rescue operation for those trapped boys in that cave may happen, we're told soon.

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BLACKWELL: The 2000s premieres tomorrow at 9:00 p.m. Eastern.

GALLAGHER: And I am so excited, here is the preview.

(BEGIN VIDEOTAPE)

DAVID BIANCULLI, ASSOCIATE PROFESSOR, T.V. AND FILM HISTORY, ROWAN UNIVERSITY: In the 2000s, HBO starts making miniseries because the networks aren't making them anymore. So, they start winning Emmys in these categories.

UNIDENTIFIED MALE: And liberty will reign in America.

BIANCULLI: And you're getting some of the best T.V. of that decade.

UNIDENTIFIED FEMALE: When I go to the cupboard, and I find no coffee, no sugar, no pins, no meat, and I'm not living politics.

UNIDENTIFIED MALE: One thing just was amazing to me about John Adams was, it was done as realism.

UNIDENTIFIED MALE: People are hurt where they're fight for as rightfully (INAUDIBLE).

UNIDENTIFIED MALE: you approved a brutal, an illegal act to enforce a political principle, Sam.

UNIDENTIFIED MALE: Just the greediness of founding a nation trying to figure out what a president is.

UNIDENTIFIED MALE: It's a gift to be given 12 hours on HBO to tell a story with. God help you if you don't have something to say.

ALAN SEPINWALL, TELEVISION REVIEWER AND WRITER: David Simon was a newspaper reporter in Baltimore. He spent a year embedded with the Baltimore homicide unit to write a book. He and Ed Burns, who was a police officer got together and said, "Well, what if we tell the whole story of the death of the American city, the futility of the war on drugs through the eyes of cops, of drug dealers, of teachers, of politicians just make the entire city into the character itself.

END